Executive Summary
Planning is known as the foremost provision of a Plan and it has specification in its utilization. Planning has some effective provision in it and it has its own recognition in the companies which are new in the market. Planning has numerous types like business planning, market planning and financial planning and each of the planning process should be undergone with extensive research and analysis. Business Planning is a rigorous process which has numerous things lies under its jurisdiction and each and every aspect is important for the company in particular (School, 2007). It requires having a perfect research skill in particular to demonstrate the things in an effective manner. The main perspective of this assignment is to make a business plan for a company. The company is an existing one in the analysis and relates to travel and tourism. The name of the company is Travel Plus. The business would be worthwhile, according to the mentioned below financial plan. The net income of the company would increase each for the next five years, which is again a positive sign from the viewpoint of the company.
Body of the Plan
Description about Company and Industry
The company which has been chosen for the same analysis is Travel Plus, a travel company located in Canada. The company is a new but has a great price structure in terms of Ticketing and the Package Vacations. There are number of destinations cover by the company in particular in affordable pricing. The company is located in Charlottetown, a city of Canada. The city is quite big in terms of population and consumption parity and there are number of companies are currently working in the city to increase the financial belongings. Charlottetown is effective in terms of doing business and living too. The website of the company is http://www.travelplus.ca/travel-agencies/1/travelplus-45733
In a broad nutshell, tourism means business in fact a huge business in Canada with economic activity comprises on $ 78.8 billion and more than 600,000 jobs in the sector. The industry of Tourism is expanding explicitly well in Canada as compared to other adjacent regions. The number of visitors in the Canadian industry is increasing year on year (YOY) which is a positive sign for the new companies which are intending to enter in the market. The amount of tourists came in Canada were 19.6 million in the year 2000, and the country was the 8th most visited country of the world, however it went on number 18 in the year 2011 with tourists of 16 million.
Travel Plus is a company which emphasizes more on the domestic market as compared to International Market. Domestic tourism spending has also increased tremendously in the year 2000 to 2011 and the same could be found with the help of below mentioned diagram
Source: http://www.hlta.ca/reports/The_Canadian_Tourism_Industry_-_A_Special_Report_Web_Optimized_.pdf
The domestic travel spending in Canada in the year 2000 was 66.9%, however it increased to a level of 80.5% in the fiscal year (FY) 2011.
Product Service Offering
The products service offers by the company to its end users are numerous and most of it’s emphasize lean on Domestic Side. The core services of the products of the company are mentioned below
- Domestic Travelling
- International Travelling
- Flight Booking both Domestic and International
- Hotel Booking both Domestic and International
Market Analysis
This section is extremely important from the viewpoint of this particular business plan as it has numerous things to be included, like SWOT Analysis, Porter’s Five Forces Analysis, Growth of the Tourism market with potential and the marketing based strategies.
SWOT Analysis
SWOT analysis is a marketing based model that takes into practice to better judge the company’s position from numerous aspects. The structure of SWOT analysis is hugely reliant on environmental analysis of the company that is divided into internal and external environment of the company. The SWOT analysis of our company is mentioned below in the table format.
Porter’s Five Forces Analysis
Porter five forces are the most important in the marketing plan. The model is applied to determine the industry strengths and weakness to build a competitive and valuable marketing strategy. This model is composed with 5 forces on which the whole industry is rooted in, moreover, the framework comes under the economics regarding Industrial organization that determines the competitive intensity and therefore attractiveness of the market (Rhonda Abrams, 2012). The analytical framework of Porter’s five forces is given below.
Rivalry among the Competitors (High)
Bargaining Power of Consumers (High)
The bargaining power of the consumer in this particular industry is high because the consumers have number of options from which they can buy the products or services of the company in particular. Due to high bargaining power of the consumers, prices are quite competitive in particular.
Bargaining Power of Suppliers (LOW)
Travel Plus is a services oriented company and it has nothing to deal with the suppliers, hence the bargaining power of the suppliers for the company is low which a good sign is for the company.
Barriers to Entry and Exit
Barriers to entry in the tourism sector of Canada are high along with barriers to exit as there are certain legal obligations which an organization has to consider before initiating the same. Travel Plus would get added advantage by operating in this particular business.
Threats of Substitute Product
There will be no threat associated with the company as far as substitute product is concerned because there would be no substitute of travelling and tourism.
Market Growth
The growth in the travelling and tourism market is quite high, which is a good sign from the standpoint of the industry. High growth is seen in the year 2012 as compared to the year 2011 in terms of the revenue generation in this particular section (TIAC, 2012). Mentioned below graph is showing the same
Market Potential
The potential growth in the travel and tourism industry is awesome and it would be effective for us in near future. Potential analyzes that how much power an industry has in terms of its products and services and it could be found in the below mentioned analysis
The Marketing Plan
Marketing plan requires applying such a tool from which strategies could have been made and implemented and among this software, the name of Marketing Mix is one of them.
Marketing Mix
Marketing mix is another valuable model used by marketing departments to perform their operations in an efficient manner. There is no doubt about the fact that the practices of the marketing mix are complicated to determine the shape of the product or its offering . The huge part of this theory is based on the 4Ps of marketing that are product, price, and place, and last but not least the promotion.
Marketing Mix Analysis (MMA) requires applying the concept on four different provisions in particular
Product: Product Strategy could be extremely important for a company to use accordingly. The product strategy which Travel Plus has to use should be ANALYZER, in which the company would become able to analyze the products and services of different players already exist in the market, which would certainly assist the company to increase their financial belongings in particular.
Pricing: Pricing strategy could be extremely important and vital for an organization. The pricing strategy which the company should adopt in the initial years of operations would be PENETRATION, in which the price of the services would be placed lower than the competitor’s services.
Place: Place strategy of the company should be both OFFLINE AND ONLINE, in which a customer can have the services from both of these mediums, which certainly help out the company to achieve its target.
Promotion: The promotion strategy which Travel Plus Company has to use is PULL, in which both offline and online promotional mediums would be taken into consideration especially in terms of promoting the products through electronic medium and Social Medias.
Development Plan
Travel Plus Company has to work extremely hard to increase the development stance of the employees of the company, which certainly work out tremendously well for the company. Apart from this, Travel Plus also has to come up with new and effective customer base strategy.
Operational Plan
The operational plan of the company is perfect. Travel Plus is a new venture and a small company comprises on 10 people. 4 people are of management, while 2 people each will look after the operational, finance and marketing department in the initial years of operations. We have planned to expand the network in the near future.
Risk Analysis
External Risk Factors:
Economic risks:
The global economy has been very vulnerable in the past few years that tend to affect the decisions of every country, company and individual. The consumption power of people and rate of disposable income is already low.
Legal risks:
In Canada, legal systems are very comprehensive and there are many regulations associated with operating the business. To negate such risks, there should be a clear understanding of those regulations. Policies should be made accordingly, which can benefit business as well as predict any uncertainty in them.
Other risks:
This includes natural disasters, like, flood, earthquakes, etc. We cannot predict or stop such events but we can make sure our records are safe and our data is secured. Backup of data should be in hand in case the company loses any information
FINANCIAL PLAN
Assumptions
Start-Up
Revenue Analysis – 5 Years
Balance Sheet-5 Years
Cash Flow Analysis – 5 Years
References
Luther, W. M. (2011). The Marketing Plan: How to Prepare and Implement it. New York: AMACOM Div American Mgmt Assn.
Rhonda Abrams, R. M. (2012). The Successful Business Plan: Secrets & Strategies. London: The Planning Shop.
Commission, C. T. (2011). [online] Retrieved from: http://en-corporate.canada.travel/sites/default/files/pdf/Mediakit/tourism_industry_fact_sheet_apr._23_2012_-_en.pdf [Accessed: 21 Mar 2014].
TIAC. (2014). [online] Retrieved from: http://tiac.travel/_Library/TIAC_Publications/2013_TIAC_Annual_Report_WEB_FINAL_EN.pdf [Accessed: 21 Mar 2014].
Reportsnreports.com. (2014). The Future of Travel and Tourism in Canada to 2016 : ReportsnReports. [online] Retrieved from: http://www.reportsnreports.com/reports/209587-the-future-of-travel-and-tourism-in-canada-to-2016.html [Accessed: 21 Mar 2014].
