Gulliver s Travels Agency
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- Marlene Stevens
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1 Gulliver s Travels Agency Content: 1. Nature of business 1.1. Description of the project 1.2. Company name 1.3. Sources of funding Own resources External resources 1.4. Baseline analysis (SWOT analysis) 2. Marketing analysis 2.1. Market description 2.2. Description of the competition 2.3. Subscribers 2.4. Marketing mix of one product Product Price Propagation Distribution
2 3. The technical ensuring 3.1. Building 3.2. Rolling-stock 4. Operational security 4.1. Staff 4.2. Suppliers 5. Economic calculation 5.1. Annual revenue 5.2. Annual budget 5.3. Profit 6. Conclusion
3 1. Characteristics of the business 1.1 Description of the project We will do business in the area of providing foreign tours and focusing on Italy. This service we will be provided in Uherský Brod. 1.2 Company name Our company s called Gulliver s Travels Agency. We selected this name because it s imaginative and unique. We specialize in tours in northern Italy, where we know well the areas. The headquarters of company will be in Uherský Brod in rented building on the address: Nivnická 1781, Uherský Brod. Internet website: Own resources Into business we will take own capital at ,-. A part of this money we will use for propagation of company and its advertisement. Then it ll be needed to pay the initial cost of the operation website and registration fees. More money from own resources won t be necessary because in the rented building there is all needed equipment.
4 1.3.2 Foreign resources We will be able to begin with business, it ll be needed to buy a bus. For this purpose we ll take business loan Express Business by GE Money Bank to ,-. It s loan with maturity moths with possibility of extraordinary payment or early repayment. We ll repay this loan about 6 years. Its interest rate is 1, Analysis of the initial situation (SWOT analysis) Strengths: Weaknesses: a wide range of tours little experience cheaper price insufficient interest well-arranged website slow start north of Italy a well-known area rented premises Opportunities: expansion of the company destroying competition extension of tenders Threats: lack of finances competitive pressure economic crisis
5 2. Marketing analysis 2.1 Market description, In the Czech Republic is the market for travel popular, but in the Zlín region there are less travel agencies. Composition of potential customers is diverse, especially households that consist of both men and woman and children. Zlin region has approximately 589,030 inhabitants of which a considerable part is aged years. 2.2 Competition description In Uhersky Brod we are the only travel agency. In Zlin region we are total 4. That means competition is not so high. It is NEV-DAMA, Alexandria, Student Agency. Most every one of us offers tours to other places, so this is not a competition in the truest sense. 2.3 Subscribers In order to find interest in our company created a questionnaire and sent it after Uhersky Brod. The questionnaire contained a few simple questions: 1. Your age -up to 15 years years years years -more than 50 years 2. How many times a year do you go on holiday? - do not drive -1year -2 per year -more than 2 times per month 3.What type of holiday you search? - cognitive - rest - active - other(please specify)....
6 4. What is your availability for travel agency? - excellent -sufficient -insufficient -no 5. Do you appreciate a new travel agency in Uhersky Brod? - yes -no - I don t care After evaluation of the questionnaire, we found that our company would be quite interested in the area because there is no travel agency in Uhersky Brod. Potential customers should be younger people and middle aged ones, who would have enough money and desire to know new places. 2.4 Marketing mix of one product Product tour to Italy In our company as a product we considered deal with transport and stay in the place of North Italy. We made complex product for this service: -core product: transport client, security of accommodation, providing guide service -First peel: - Bus EOS Van Hool - Skilled rider - Fast and quality transport -Second peel: - Possibility reserve via internet - Possibility several starting point - Travel instance
7 2.4.2 Prize We select the method of setting prize according to competition and that s a prize lower than competition. That s because to lure new customers. But the prize can t be too low. Average prize of tour will be 1250,-. When the interest of our travel agency increases, we can also raise the prize in proportion to the quality of services provided Propagation We will propagate travel agency mainly through advertising. We put advertising to regional radios, ads in newspaper and on internet. We provide handing out leaflets with advertising around Distribution Due to the type of service we provide, is the only choice of direct distribution. That means to provide our service directly to the customers, without any intermediaries. 3. Technical Support 3.1 Building We will have business in a building, which is situated at Nivnická 1781, Uherský Brod This building will be used like an office, that contains all equipment. In the office there are personal computer, work table, cupboard and other items. Around the building there are situated several parking spaces including space, where bus can park.
8 3.2 Rolling-stock In our rolling-stock will be bus EOS Van Hool T90, which have 40 place for passengers. 4. Operational security 4.1 Employees We will have six employees. Their main responsibilities will be to specify work contracts, because there are different types: accountant, intermediaries tours, charwoman, delegate and bus driver. 4.2 Suppliers We will buy diesel and motor oils from company OMV. EON s.r.o will deliver electricity for us. Uherský Brod will deliver water for us. We will have internet connection from company O2, where I also will set up fee O2NEON M. 5. Economical calculation 5.1 Premising year revenues We assume that we'll mediate tour for 40 people average every week. With average price 1 250,- for tour without accommodation it makes ,- monthly. So year revenues makes ,-.
9 5.2 Assumed year costs Employees wages: We have two employees, who work like mediators of tours. Next we have one delegate, who works like guide together. We have one accountant too, cleaner and bus driver. Costs will be made for months after converts: tour mediators ,- accountants 2 859,- cleaner 4 355,- bus driver 5 896,- delegate ,- So year costs for employees wages will be ,-. Rent: Rents for our residence is 5 000,- monthly. It makes ,- yearly. Electricity and water: I count with consumption of electricity for ,- yearly. Water consumption will costs about 3 000,-. Phone and internet: Fee will cost 1 000,- monthly, it makes ,- yearly. Internet will costs 300,- monthly, it makes 3 600,- yearly. Gasoline and engine oils: Costs of gasoline, engine oils and next operating costs for bus will be ,- at four tours a month. It makes ,- yearly. Interest on loan: We have a loan from the bank for buying a bus for ,-, which we'll repay for six years. Interest rate is 1,05. Interest will be 1 764,- yearly. Complete premised costs makes ,-.
10 5.3 Profit Profit is difference between revenues and costs, it makes = ,- 6. Conclusion After a year of business I reach clean profit Kč. It makes Kč monthly. It's really positive revenue, which motivates me for next business. Later we plan expansion of our car park, take next employees and building next office in Olomouc.
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