Pango Business Plan


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Pango Business Plan

  1. 1. PAN-GO BUSINESS PLAN THE TEAM Miwa Ikemiwa | Project Manager Shima Khaki | Lead Visualizer Max Sims | Lead Writer Cansu Tecimer | Lear Archivist & Researcher
  2. 2. THE MARKET NEEDCURRENT MARKET TRENDS THE PAIN POINTThe world is getting smaller in a number of ways. “People love exploring new places but have troublePeople are connecting to one another internationally meeting local people and having genuine non-touristyand locally online through social media with 540 million experiences.”on Facebook and counting. Ordinary individuals havethe resources to get a lot of things done on their ownwithout the help of large institutions or companies.This is evident in the rising trend of micro-business socialwebsites where anyone can turn an extra room, a car, communityor a skill into extra income. The value these websitesbring is creating a platform on which people canshowcase their offerings to an internationalcustomer base.Currently, in the market, there are social websites that peer to peer travelcreate online communities, there are peer-to-peer experiencesmarketplaces for resource sharing, and there are travelblogs and tour companies geared towards what to dowhen traveling.
  3. 3. VISION, MISSION & VALUESVALUE PROPOSITION VISION & MISSIONPan-go is a platform integrating 3 key concepts into its We envision a travel platform for the college-agebusiness plan: international traveler that offers a secure way of• A strong sense of community exchanging meaningful local experiences at• A peer-to-peer platform affordable prices.• Database of travel experiencesFundamentally, it is a website with a database of peer-to-peer local experiences offered at affordable prices.COMPANY VALUES VISION STATEMENTWe are committed to diversity. Creating cultural understanding in the youth of the worldWe have an appreciation for life and exploration. through shared authentic experiences.We promote the entrepreneurial mind-set and agile thinking.We are an idea democracy.We value ethical and empathetic behavior.We offer trustworthy and secure environments.We promote playful collaboration.
  4. 4. TARGET MARKETCURRENT TOURISM MARKET TARGET AUDIENCE880 million people travel internationally each year. There Within this Pan-go is targeting the college age a rising trend in the tourism market of “Independent Specifically:Travelers”, people who do not book through travelagents, who do not travel in packs, who do their own Study abroad studentsresearch and are increasingly using social media to do Students who have just graduatedso. Conservatively, they make up well over 50% of the Backpackerstourism market. The college age traveler has the right attitude, the need and fits in with our company’s vision. Attitude: They are flexible, open to trying new things, and want to explore. Need: They have the need because they want to find smart ways of saving money, and they are already familiar with cultural exchange through student exchanges and study abroad. Vision: We want to foster a sense of curiosity about the world in a way that builds perspective and will inform the way they lead the rest of their lives. We envision these young people becoming dedicated customers of Pan- go as they grow up.
  5. 5. COMPETITORS Skyara Like-a-Local STA Travel AirBnb Pan-goPrimary San Francisco Local Travel agency for Person-to-person Network of localOffering peer-to-peer peer-to-peer student age places to stay experiences for experiences experiences collage ageWhat Meeting & Meeting new Activities targeted Save money Join a vibrantcustomers networking in San people in other toward students communityvalue Francisco countriesWhat Having novel Having otherwise Worldwide Stay in cool Save moneycustomers experiences inaccessible placesvalue experiences Opportunities to Affordable prices Cheap prices, Potentially meet Extensive offeringsWhatcustomers break from daily discounts new people in targetedvalue life countries Only in San Stagnant Prepackaged Security of Unknown brandPotential Francisco offerings, spread tours overnight stayweakness too thinPotential Too expensive? No sense of Age limit Maintaining Meetingweakness community quality worldwide expectations
  6. 6. POSITIONING POSITIONING MAP POSITIONING STATEMENT no network Pan-go is a vibrant community of smart, young world travelers exchanging local genuine experiences. no network tourtour companies companies generic unique experiencesgeneric experiences uniqueexperiences experiences panoo engaged community engaged community Skyara and airbnb are not direct competitors; they do not offer travel experiences. They are business models Pan-go used as successful examples.
  7. 7. WEBSITEHOME PAGE TRAVEL OFFER COMMUNITY sign in sign up TRAVEL OFFER COMMUNITY sign in sign up Share authentic experiences... Pan-go experiences Paris/FRANCE Food & Drink Pan-go is a vibrant community of smart, young world travelers exchanging local genuine experiences. Paris, FRANCE SEARCH Offer an Experience Join our Community HIGHEST RATED NEW CATEGORIES get creative with your culture Art Offer the ultimate, unique experience you can think of with the pan-go I have an Beauty & Style community. There will be voting and some extra pan-go points for the IDEA Crafts & Hobbies best ideas. Yes, this is definitely a competition!! Education Food & Drink Pan-go experiences... Health & Wellness Make crepes in father’s The coffee au lait that Taste the top 5 French History & Culture family restaurant changed my life foods you can eat with Where do you want to go? SEARCH Offer an Experience with Marie LaCroix with Julien Beaudoin your hands Nightlife with Sophie Carrier Outdoors Paris/FRANCE $28.00 Paris/FRANCE $15.00 Paris/FRANCE $35.00 Shopping HIGHEST RATED NEW CATEGORIES Sports & Fitness Technology Art Beauty & Style Crafts & Hobbies Education Food & Drink Health & Wellness Learn to curse in Italian A bike tour around Make crepes in father’s History & Culture Once the customer enters in the city/category they are over futbol & beer Notting Hill with stories family restaurant with Damien Jones with Marie LaCroix Nightlife with Gio Venessi Outdoors looking for, they are taken to experiences that fit with Rome/ITALY $20.00 London/UK $30.00 Paris/FRANCE $28.00 Shopping Sports & Fitness Technology their search options. Each offering is shown through a photo, the name of the experience and the provider, the city and country namesThe Pan-go home page displays the newest and highest and the price.rated experiences being offered. The customer can For further details, the customer will click on thebrowse through the experiences or search by city or experience photo or name. Users can also click on thecategory. provider’s name to see the profile of that person.
  8. 8. WEBSITEEXPERIENCE PAGE PROFILE PAGEA person must be registered on the website before they Providers and customers alike have profiles that arecan make a booking or become a provider. simple to build and update, with photos, reviews, theirWhen a customer decides to join the Pan-go community, own unique stories, friends and followers.they can do so through their Facebook account orthrough e-mail.
  9. 9. BUSINESS MODELFLOW CHART SAFETY ISSUES Pan-go will create accountability through easy to build Money profile and experience pages and a ratings and rewards Service system. Our goal is to have a richly populated website Experience that will give customers and providers the information they need to make informed and smart decisions about whether or not they want to make or accept a booking. Pan-go will also enable travelers and experience providers to communicate privately through the company, without revealing any personal information, before a booking is made. The credit card information of both parties will be in the Pan-go system before any transaction takes place,MONEY SECURITY to confirm their legitimacy.Pan-go has a confirmation system, where the company After a booking is made, both parties will receive eachholds on to the traveler’s money until the meet-up has other’s phone numbers and names to get in touch beforetaken place. The travelers will be e-mailed a code before meeting.the meet-up, which they will give to the experience Ultimately, the liability will be on the customers about theprovider. This code must be entered into the Pan-go issue of security. Pan-go is not responsible for monitoringsystem for the money to be transferred to the provider. the meet-ups.If customers are unsatisfied for any reason, they can callour customer service and full refunds will be given whendeemed appropriate.
  10. 10. CUSTOMER JOURNEY MAPTOUCHPOINTS DESCRIPTIONCONSIDER An example journey map of a potential customer Sara...• posters• college events CONSIDER• website Sara hears about Pan-go from posters on campus, seesEVALUATE a booth at a college event at her school. Her friends are• travel blogger network talking about it, and she also sees someone mention it in• special parties their Facebook status. She clicks over to the website to• experience provider profile check it out briefly, and sees some cool experiences. ShePURCHASE fantasizes traveling one day to one of these places and• website having one of these experiences.• emailENJOY, ADVOCATE & BOND EVALUATE• rating & review system Sara is going on a trip to France. She remembers Pan-go• website and the idea of an experience sharing website abroad.• follow up recommendations She starts to do research on other experience websites• email newsletter like Airbnb, and Like-a-local, as well as looking at Lonely Planet, other tour guide books and STA travel. She sees that Like-a-local does not have many offerings, Airbnb is just for overnight stays, and STA travel and guide books look impersonal and too touristy. She talks to one of her friends who is a travel blogger who’s gone to one of
  11. 11. CUSTOMER JOURNEY MAPDESCRIPTIONPan-go’s special events, the friend talks about his Pan-go ENJOY, ADVOCATE & BONDexperience. Sara travels to Paris and gets a reminder e-mail for herNow she goes on the website and sees a bunch of upcoming experience. She meets up with Marie andcool experiences in the area she will travel to. She’s a has an excellent time. She gives the purchase code tobig foodie and sees that someone is offering a crepe Marie (necessary for Marie to receive her payment fromlearning session in her father’s family restaurant. She sees Pan-go). Pan-go sends her a follow up e-mail to ratethat there are good reviews for the experience. She then her experience and gives her the opportunity to link tolooks at the profile of the experience provider, Marie, who Marie’s profile. She gives great ratings and writes a nicehas a lot of friends vouching for her. It is right in Sara’s review for Marie.price range, so she decides to register. After having great experiences that have made her trip memorable, she decides to go on the website in order toPURCHASE keep in touch with her new friends. She builds up her profileSara messages Marie through the website to ask more through continued experiences, and maintains links to allabout the experience and to figure out a date. Marie of her providers. She gets follow up recommendationsmessages back and offers a specific day. This works for from Pan-go based on her previous bookings. She goesSara so she books the experience and goes through a back home and gets a newsletter telling her about thesecure payment system. She receives the purchase code advantages of being a provider. The newsletter lets herand an explanation through e-mail. know what travelers are looking for in her home city. She sees one that she can easily provide and signs up to offer it. Now she is an active participant in the Pan-go community and a vocal advocate.
  12. 12. BRAND STYLEBRAND ATTRIBUTES LOGOadventurous authentictrustworthy vibrantsmart cultural connectionBRAND COLORSBRAND FONTSCentury Gothic
  13. 13. COMPANY GROWTHPLAN OF ACTIONPan-go has a three-phase plan of action.Alpha-PhaseIn the alpha phase Pan-go will target the top 5 studyabroad countries: US, UK, France, Italy, and Spain.The 4 founding members will tap into their own personalinternational networks in these places to get thingsstarted. Combined they have access to 25 networks ineach of these countries and can reach 28,000 friendsand friends-of-friends. FUTURE PROJECTIONSBeta-Phase Pan-go’s future projections are based on the numbers ofOnce 100 providers have posted experiences on the similar business models (i.e. AirBnb).Pan-go website, the beta-phase will start. In this phasethe company will grow its customer and provider base End of Year Onesimultaneously. At the end of beta-phase, there will be 1,000 providers250 providers that have joined the Pan-go community. 25,000 customers 45,000 experiences booked in totalLaunchThe Pan-go website will open to the public after the 250 End of Year Twoprovider number has been met. 4,500 providers
  14. 14. MARKETINGPRICING STRATEGY PLACEMENTPan-go will take a 15% commission from each money WEBSITEtransaction between our partners, the experience The main place our customers interact with the business isproviders, and our customers, the travelers. our online platform. We want to have an easy to accessPan-go aims to offer experiences at an affordable price site with enough storage to make it easy for travelersfor the college-age savvy traveler. There will be a $100 and experience providers to upload and downloadprice cap on all experiences posted on the site. For data. With our estimated growth projections, we willofferings that last longer than one day, the price cap will need approximately 1319 gigabytes of storage for onebe $100 per day. year that breaks down to 50 megabytes for each profile.The prices will be set by the experience providers along (26,000 customers & providers at the end of year one) Forsome guidelines and recommendations. providing such storage we will use amazon’s EBS service.• The recommended price for non-skill based We estimate around $2,650 of cost for one-year storage. experiences such as walking tours, spending time together will be around 20$. We will hire a SEO to make sure our ranking is relevantly• The recommended price for experiences involving high in searching the following words on the search food & drink, going to multiple venues will be around engines: 30-35$. Back Packer – inexpensive travel- local – experience-• The recommended price for skill-based experiences learn about city- genuine travelling– non tourist– must like cooking classes or photography lessons will be experience in city - best places to see traveling- travel around 40-50$, but would vary according to materials like a local- eat like a local- local view – cultural provided. understanding – authentic• Our partners will be informed that there is an opportunity to provide a discounted price for groups.
  15. 15. MARKETINGPLACEMENTSOCIAL MEDIA PHONE PRESENCEFacebook, Tweeter & Youtube We will have a strong phone-based customer support.Pan-go will have presence in each of the social media Our representatives will be available to answer questionssites to generate traffic into our website. and address complaints.Facebook and Twitter will be utilized to push contentout about the promotions, creative ideas, unique PARTNERSHIPSexperiences, insider information about cities and other Pan-go sees opportunity in partnering with NGOs anduseful information. People will also be able to use their local communities. This specifically gathers providers thatFacebook accounts to join Pan-go with one click. have already shown their enthusiasm in their area.A YouTube channel will be created for our providers and Pan-go will also be partnering with youth hostels. Sincecustomers to post videos for the ongoing promotional youth hostels are the most economic places to go forcompetition. This will be a great touch point to learn the college age travelers, we will tie our information onabout Pan-go from its own community., offering economical authentic experiences.BLOGPan-go will have a tumbler account with focus oninteresting stories generated by hosts or travelers. This isthe primary place to promote the marketing campaign“GET CREATIVE WITH YOUR CULTURE” The blog will havelinks to Pan-go’s YouTube channel. The blog is in service ofrecording unique or remarkable experiences. It focuseson travel and the richness the world has to offer.
  16. 16. MARKETINGPROMOTION“GET CREATIVE WITH YOUR CULTURE”Pan-go will be launching a campaign called: “GetCreative with your Culture”The idea is that young people are infinitely creative,they are living embodiments of their own culture and arealways thinking of fun things to do. All they need is thetools and the motivation to come back with astoundingideas.This is a call to action: we want people to post videos orpictures of creative experiences they are willing to offerthat are unique to their culture (however they choose todefine ‘their culture’). The winner of the competition willbe awarded two free tickets to any pan-go city and anynumber of pan-go experiences they can fit into one 24hour period.We will get the word out about the “Get Creative withyour Culture” campaign through social media, as well asin person during our visits to colleges.
  17. 17. MARKETINGPROMOTIONTRAVEL BLOGGERS ONGOING ENCOURAGEMENTThere are a lot of travel blogs that are already trusted On our website, we plan to list ideas for free experiencesand have good number of followers. Pan-go will be unique to specific locations.reaching out to these bloggers, invite them to offer localexperiences and ask them to write about us on their blog. Pan-go will also keep its users engaged in the community through a rewards and rating system. People areSPREAD THE WORD encouraged to build their profiles, comment and reviewBy writing articles, making short videos and posting on through a system of Pan-go points. Every good reviewwebsites such as, Pan-go will make they receive, every helpful review they write, everyan open call to a large undefined group of people photo they upload earns them pan-go points. Points canto participate in our competition to become a local- be cashed in for free Pan-go experiences. (150 Pan-goexperience-provider. points for one free Pan-go experience) Basically every time they contribute, we give them something back.REACH OUT FOR STUDENTSPan-go will set up booths in college fairs to talk to students And for the super users, people who are passionate aboutabout the experiences they can offer. We will hand their cities, they can rack up location specific points toout brochures about our company, promote ourselves gain status as Pan-go ambassadors. People will competethrough posters around campus to gain status as the Pan-go ambassador to Madrid, for example.
  18. 18. FINANCIALSREVENUE PROJECTIONS ANNUAL BUDGET Average price for an experience: $40.00 Percentage of the fee that will be paid to partners: $85 Growth rate: 450% REVENUE YEAR ONE YEAR TWO Experience Revenue $3,744,000 $20,592,000 Partner Revvenue $3,182,400 $17,503,200 Company Revenue $561,600 $3,088,800 SERVICE COSTS Hosting Costs $2,650 $10,600At the end of year one, with 1800 experiences booked Transaction fees $74,880 $411,840per week, Pan-go will generate $561,600 in revenue. OVERHEAD COSTSAt the end of the second year, with an estimated growth Salaries & Admin $196,560 $617,760rate of 450%, the revenue generated is projected to Marketing $84,240 $308,880reach $3 million. With the projected revenue growth the Partner Relations $67,392 $247,104company’s annual income will increase from $68,000 to Support $67,392 $370,656$1.1 million. Total Costs $493,114 $1,966,840 ANNUAL INCOME $68,486 $1,121,960 Est. Startup Costs $124,675
  19. 19. FINANCIALSBUDGET DISTRIBUTION: YEAR ONE BUDGET DISTRIBUTION: YEAR TWOSalary & Administrative Fees: 35% Salary & Administrative Fees: 20%Marketing: 15% Marketing: 10%Partner Relations: 12% Partner Relations: 8%Support: 12% Support: 12%