kandalama boathouse
DESCRIPTION
Business propasalTRANSCRIPT
HERITANCE KANDALAMA BOATHOUSE
.
Proposed Project By:Aitken Spence Hotel Managements (Pvt) Ltd
Page | 2
Table of Content Page
1.0 Executive Summary ...……………………………………………….4
2.0 Situation Analysis…………………………………………………….5
2.1 Market Summary ……………………………………………....5
2.2 SWOT Analysis ………………………………………………..7
2.3 Competition ……………………………………………………9
2.4 Product Offering ……………………………………………...10
2.5 Keys Success Factors & Critical Issues………………………11
3.0 Marketing Strategy ……………………………………………….12
3.1 Mission ……………………………………………………….12
3.2 Marketing Objectives…………………………………………12
3.3 Financial Objectives ………………………………………….12
3.4 Target Markets …………………………………………….…13
3.5 Positioning ………………………………………………..….14
3.6Marketing Mix ……………………………………………..…14
3.7 Marketing research …………………………………………..15
4.0 Financials ………………………………………………………….16
4.1 Break-Even Analysis……………………………………….. 16
4.2 Sales Forecast …………………………………….………….17
Page | 3
4.3 Expense Forecast ……………………………………………17
5.0 Controls ……………………………………………………………18
5.1 Implementation ………………………………….…………..19
5.2 Marketing Organization …………………..…………………19
5.3 Contingency Planning………………………………………..20
References……………………………………………………………..21
Executive summary
The Heritance Kandalama Hotel located in the Sri Lanka near the eighth wonder of the rock
fortress of Sigiriya. Where the middle of the cultural triangle of Sri Lanka, near to five
UNESCO World Heritage Sites. As a new project by Aitken Spence, the Heritance
Kandalama Boathouse project is designed for people who looking for beautiful natural unique
scenery to enjoy their vacation peace and seclusion based on Kandalama Lake.
This boathouse provides unique luxurious Eco friendly experience for visitors.
The management of a project looking forward to facilitating their customers to obtain
unforgettable experience for their lives while traveling the cultural triangle in Sri Lanka by
introducing two kinds of Boathouse in the market. It crates wider target market for the
project.
The Boathouses target for foreigners, local newly married couples/honeymooners and well as
families.
The Heritage Kandalama Boathouse mission is providing its visitors with the highest quality
of service and standards within peaceful and secluded environment.. The management target
to be the market leader in the industry while valuing their place in the customer’s heart and
protecting environment
Page | 4
2.0 Situation Analysis
The Heritance Kandalama Boathouse expects to begin their operation in this year. The
management wishes to make a new tourism trend in the Sri Lankan tourism market while
gaining success and profitable business for the organization. The bathhouses have offered
first ever tourist bathhouse experience in the market as per customer desires.
The projected boathouse offers unique, adventurous, luxurious, peaceful, enjoyable and
seclusion experience for their customers.
2.1 Market Summary
This marketing plan focuses on a new project houseboats system willing to launch in Sri
Lanka to create a new tourism trend in the Sri Lankan tourism industry. The products had
designed for the people who are wishing to have unique experience in their lifetime. The
boathouses provide excellent luxury, peaceful and seclusion vacation for its visitors.
This project will mostly focus with honeymooners’ foreign visitors and small families who
are searching for new trends in tourism.
Market Trend
Page | 5
The management of the Heritage Kandalama boathouse has some favorable impact from their
market industry to focus their ability to this project
New trend towards the echo tourism
In the modern world, people are mostly looking for place to where they can have a
peaceful and secluded place in nature.
Increasing the demand for tourism industry in Sri Lanka
After the 19 years civil war, the number of foreign visitors who are visiting to the Sri
Lanka is gradually increasing. But current supply of the tourism industry is not
enough for the demand.
Market Growth
Currently, the Sri Lankan government more focuses with the development of tourism
industry in Sri Lanka. According to the sources of their publication, they mention following
marketing growth will be they anticipate for next 4 year in Sri Lankan tourism industry.
Page | 6
(http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=26067)
Therefore according to potential tourism growth organizations who are in the industry and
willing to invest in tourism may gain huge benefits for their business. It makes a favorable
situation with the projected boathouses business.
2.2 SWOT Analysis
Page | 7
(http://www.cbpp.uaa.alaska.edu/afef/swot.htm )
The SWOT analysis focuses on the strength, weaknesses, opportunities and threats.
Weakness and strength generated from the internal environment that can be managed within
the organization and opportunities and threats are generated from external.
Following is the SWOT analysis for Heritance Kandalama boathouse.
Strengths
Good Reputation
The Heritance Kandalama has won more than 50 awards for its environmental
policies, architecture, food and service. The hotel were the first Green Globe 21
certified hotel in Asia and, most recently, in June 2011, they won the Gold Award for
Built Environment in the prestigious Green Apple Awards.
(http://www.heritancehotels.com/kandalama/our-hotel.html)[08/01/2013]
Well experienced Staff
The staff is well experienced, highly motivated, trained and specialized within the
tourism industry. They speak English, French, Italian, Sinhalese and Tamil are eager
to help all the customers who visited to the place
Brand strength
Having a brand loyalty among guest who are visited and willing to around the world
Page | 8
Green philosophy
Known as best echo tourism provider in the industry
Weaknesses
Marketing
The boathouse concept is new to the Sri Lankan market and the organization has to
give some effort to introduce it to their customers
Availability of experienced employees
The staff has lack of knowledge about boathouse safety systems. Because of that have
to hire new employees or trained the staff.
Opportunities
New marketing trends toward the tourism
Sri Lanka has 19 years civil war and after the war number of tourists from European
countries and around the word visited to the Sri Lanka is increasing.
Competitor
Current competitor provides his services for 3 months of period of the year and it's not
comparable with customers' desires and they provide their services as only as a
restaurant .
The area
The boathouse planned to start in based on Kandalama Lake, which is within the
cultural triangle in Sri Lanka. The lake is more peace and seclusion than competitors
based area.
Market demand
The demand for the unique tourism experience within the local crowd is increasing.
Threats
Page | 9
Government policies
Government tax policies may affect the revenue of the boathouse
Entry of new competitors
Due to increasing of the tourism market in Sri Lanka organization who are currently
within the industry looking for new areas of tourism and the threat from them become
more significant to the project
Economic situation
Sri Lanka is a developing country and more frequently face on economic crisis
Threats from nature lovers
The Kandalama Lake and area, which it has, is a jungle. Therefore the pressure
groups may protest that introducing a boathouse is to reason for pollution of nature
Substitutes
The boathouse is substituted for the traditional hotel system and it is has some risk
than hotels in the land. It makes customer to think twice before they chose boathouse
for their vacation.
2.3 Competition
When considering about the Sri Lankan tourism market in currently it has huge competition
with each other’s. Therefore, it is important to analyzing about competitors to gain
competitive advantage from among the all of other organization’s and to be stable in the
market.
Competition comes under several forms;
From same service providers/Direct Competition
In Sri Lanka Currently there is an only one similar competitor in industry Who
operates in Gregory Lake in Nuwaraeliya and they only provide restaurant facilities
and cruise for the customer. Therefore competition from them are very less because
heritage Kandalama Boathouse wish to provide accommodation facilities to their
customers.
But outside the country, Kerala in India having well established boathouse business.
They are having a huge market share of that from the around the world. Reasonable
number of foreign visitors travels there only for having a vacation in the boathouse.
Page | 10
From in-house Business activities
Currently the core business area of Heritage kandalama is operating as a five star
hotel. Therefore, it also gives direct impact to customer’s mind to stay in the land
hotel not having a risk from the boathouses
2.4 Product Offering
The Heritage kandalama Boathouse provides two bathhouses with different facilities.
All two boathouse designed by according to green philosophy of the organization. It is
echoing friendly and never has a harmful impact to the lake or the environment. They
offer customized packages for as per customer desires. The two Boathouse provided
by them are;
Luxury Boathouse
This boathouse specially designs for the honeymooners, couples and foreign visitors.
The Deluxe Boathouse has one bedroom with all other facilities.
Super Luxury Boat House
. This has 2 bedroom and design for family visitors .
Page | 11
All other facilities as follows
A/C or non-A/C
A room with comfortable bed
Mini Bar
Kitchen with pantry
Life jackets, Fire extinguishers and life save the boat
All visitors who accommodate in Boathouse can prepare meals by them or management
willing to offer food by hotel. The management arranges all the safety facilities in on the
board and well as the off the board, All 2 the Boathouses employed with 2 employees who
are with well trained and there is a life guard team operates on land for 24 hours.
2.5 Key Success Factors & Critical Issues
This is the first boathouse introduce in the Sri Lankan tourism industry by giving luxurious
unique experience to the customers. The management of Heritance Kandalama Boathouse
expectation is gaining first mover advantage of the industry.
However, been a first mover in the industry makes some critical issues for the business, The
Boathousess concept is new to the Sri Lankan tourism industry and it gets some time and
have to give some effort to market it in the Sri Lanka. An organization should be guaranteed
to their customer’s mind that staying in Boathouse is not a getting risk and it’s a unique
experience for them in their lifetime.
3.0 Marketing Strategy
Page | 12
The marketing strategy of the project has provided unique seclusion tourism experience to its
target market. Through giving better product, business anticipated to create a loyal customer
based towards them to face any competition likely to happen in future.
3.1 Mission
The Heritage Kandalama Boathouse mission is providing its visitors with the highest quality
of service and standards within peaceful and secluded environment.. The management target
to be the market leader in the industry while valuing their place in customers heart and
protecting environment.
3.2 Marketing Objectives
The management focuses on that is winning the market power by providing their guest to a
unique experience in the tourism industry. It will enable them to have better satisfaction
about the product from all among others and making business is more profitable one.
Following are the marketing objectives for the project for year 2013;
Having a monthly sales revenue growth of 20%
Increasing number of new customers visiting by 60% per month
Having a gross margin of 25% for each month
3.3 Financial Objectives
The main acceptance of the organization is the having a greater financial stability for their
business. Therefore, it is important to set a financial objective for the project within the
marketing plan.
The Heritance kandalama boathouses financial objectives are as follows
Having a total average sales revenue of Rs 2,250,000 per month
Increasing an average booking per month by 10% to make revenue increase by Rs
225,000
3.4 Target Markets
The target market of the Heritance kandalama Boathouse is
Page | 13
Foreign visitors -35%
Honeymooners/ couples -35%
Families –from local market -15%
From Foreign visitors-10%
Others -5%
35%
35%
15%
10%
5%
Target marketForeign visitors Honeymooners/ couples QtrLocal Families Foreign FamiliesOthers
3.5 Positioning
Page | 14
The management has a strategy for positioning the product by focusing on better market
selection, segmentation, providing better service and offering unique seclusion products and
Analysis of customers, markets, competitors, environment and marketing mix management.
These elements help them to identified firms’ strengths that will enable them to achieve the
target market.
3.6 Marketing Mix
The organization should consider about the marketing mix for archive to competitive
advantage. The marketing mix consistence four elements.
1. Product
This is the product or service offer to
customers
2. Price
The value of the product
3. Place
Where buyers can purchase the product or
service
4. Promotion
The method of attracting customer to the product/service (distribution method)
The Boathouses are the product of this marketing plan. It is willing to give unique holiday
experience for their guests.
The price of the product varies with services, which offered with Boathouse. However, it
projected at Rs 20000 for Luxury Boathouse and Rs 25000 for Super Luxury Boathouse for
guests who are spending overnight at the Boathouse.
The Boathouse located at Kandalama Lake in Dabulla Sri Lanka. The infrastructure of that
area is well developed and it facilitate guest to reach there.
Page | 15
The local and foreign tourists considered as the target market of the project. Therefore, it is
necessary to have a wider advertising campaign to achieve considerable market share.
Advertising campaign operated through the local newspapers, television and web sites.
3.8 Marketing research
The Marketing researches conduct for to identify what are the products and sevicess
customers actually demand from the industry. It helps to organizations to change their
business as per the customers’ need and wants.
Page | 16
4.0 Financials
The financial situation of the project plays major role in the marketing plan. Today’s world
everything becomes valuable therefore, all organizations are focus with their financial
stability. The organizations pay their more attention towards the break-even analysis, sales
revenue and cost of sales to become business that is more profitable.
The boathouse project forecasted their annual marketing budget as Rs. 10,000,000. the
anticipated annual revenue is Rs 10,800,000 and they willing to have their marketing
expenses approximately 10% from the overall sales revenue.
4.1 Break-Even Analysis
The Break –Even analysis show the relationship between sales revenue, variable cost and
fixed cost of the product. The point where sales revenue equals to all the costs known as
break- even point. After the break-even point, business can achieve their profit
4.2 Sales Forecast
Page | 17
The Sales forecast shows what the organization’s future sales are, which generate
from sales and how the market behaves.
The estimated sales revenue for the boathouses is follows
Sales revenue Rs
Sales from Luxury Boathouse
(Sales per unit X sales units per year)
(20000* 300)
6,000,000
Sales from Super Luxury Boathouse
(Sales per unit X sales units per year)
(25000*300)
7,500,000
Total sales revenue 13,500,000
4.3 Expense Forecast
Expenses can know as the investment for the project. Following are the estimated expenses
for the boathouses;
Fixed Costs RsConduction cost 6,500,000Professional Services 2,500,000Advertising 350,000Marketing expenses 100,000Other 550,000Total Fixed Costs 10,000,000
The variable cost except to be occur as the 10% of the sales revenue
5.0 Control
The purpose of structuring marketing plan is to get a clear pathway to how to achieve the
organization’s strategic goals, which is the set to be the first to the market and become the
market leader by offering greater unique products for the tourism industry in Sri Lanka.
Page | 18
Activity Performed By Date
Performance evaluation of staff Marketing manager Annually
Sales revenue and cost for the
operations
Accountant and Marketing Manager Quarterly
Customer Satisfaction with the
products and services
Internal Audit Annually
Competitors situation Marketing Manager Annually
Maintenance of product Maintenance Department Quarterly
Get necessary actions Marketing manager/
General Manager
As when it necessary
The above table shows that how to control activities in the organization to achieve their goals
as per the marketing plan;
5.1 Implementation
Page | 19
The organization should be in focus with their activities whether those things are ongoing
with what they projected in the marketing plan. If the current situation is defer from the
projected plan plan will be altered or manipulated as necessary in order to react to and,
wherever possible, anticipate external changes to the environment.
5.2 Marketing Organization
The Heritance Kandalama Hotel has been five star Hotel manage under Aitken Spence Hotel
Public Limited Companies since 1990. The Marketing Plan structured by marketing Director
of the Heritance kandalama Hotel. The marketing director has solid education and industrial
background in marketing and Hospitality Management.
Under the marketing director’s direct supervision, there are five employees work with this
project. The marketing manager responsible for the advertising campaign and analyze the
market situation. These Two employees liable for conduct research in market segments and
analyzing about competitors.
5.3 Contingency Planning
Page | 20
Most of the times actual results deferred from the projected results because of that it’s better
to have a contingency plan for the marketing plan. The contingency plan helps to
organization to continue their work without any matter.
The following circumstances’ may be happening in when the marketing plan operates in the
actual market. Some circumstances may be favorable or unfavorable to the project;
Projected demand is less than the actual demand
Planning for new boathouses
Increase the rate of charges for the boat house
Adding more value to product and services provide by the boathouse
Projected demand is more than the actual demand
Introducing new holiday package with boathouse facility for who are visiting to
the hotel
Launch another effective advertising campaign
Give discounts for the credit card holders
Improve the service quality
Decrease rate of charges for short period of time to gain more customer attraction
Actual revenue more than the Projected revenue
Improve the product and service quality offered to the Guests
Planning to launch a new boathouse
Adding more value to the service
Unexpected economical disadvantages
Decrease the rate of charges
Hold the boathouses launch for some period of time
References
Web Sites
Page | 21
Aitken Spence Hotel Managements (PVT)Ltd,2012,Heritance Kandalama,[Online]Available:<http://www.heritancehotels.com/kandalama/>[Accessed 28th December 2012]
The Island,2011,Growth strategy for Sri Lanka tourism,[Online]Available:< http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=26067 >[Accessed 5th January 2013]
The Travel Planners,HouseBoats Holidays,[Online]Available:< http://keralatourpackages.com/ >[Accessed 5th January 2013]
Berry.T,The power of product positioning,[online],2008,[Online]Available:< http://articles.mplans.com/the-power-of-product-positioning/ >[Accessed 5th January 2013]
MacKechnie C, SWOT Analysis of a marketing Strategy,[Online]Available:< http://smallbusiness.chron.com/swot-analysis-marketing-strategy-5071.html >[Accessed 7th January 2013]
Contingency Planning Developing a Good ‘Plan B’,[Online]Available:< http://www.mindtools.com/pages/article/newLDR_51.htm >[Accessed 10th January 2013]
Break Even Analysis,[Online]Available< http://fast4cast.com/break-even-calculator.aspx >[Accessed 9th January 2013]
How to Choose Marketing Plan Objectives,[Online]Available< http://www.hellomarketing.biz/planning-strategy/marketing-plan-objectives.php >[Accessed 8th January 2013]
Determine Financial Objective,[Online]Available< http://www.knowthis.com/principles-of-marketing-tutorials/how-to-write-a-marketing-plan/determine-financial-objectives/ >{Accessed 8th January 2013]
Page | 22