Initial BusinessProposal – #1Professor John WetherellBP - The ProjectBusiness Overview andCompany Operation12/12/2011
MIB Group “A” Monika Baublyte Simon Berger Jean-Marie Carron Anton Mladenov Marco FoubertContents: 1. Our Business – Business Summary, Product Identification, the Experience We Provide and the Value We Create, Business Figures and Calculations 2. External Factors - (PESTEL Analysis) 3. Competition Research and Analysis 4. Market Research – Process and Instruments
Our BusinessAccording to the statistics, Barcelona is the second most populated city in Spain. It is wellknown for its cosmopolitan and contemporary societies in the country. Barcelona is famous forits ability to attract huge amount of tourists and is among the top destinations not only in Spainbut also in all European Union countries. It must be noted the existence of qualifiedadministrative and fiscal environment for tourism SMEs, and the increase of the quality ofservice offered by cultural tourism businesses. Barcelona is a region with high levels ofentrepreneurial activity which is reflected in a high number of firms within the tourism sector.The existence of formal networks among educational and entrepreneurial organisms facilitatesthe exchange of information and is beneficial to the improvement of the quality of services intourism business.Barcelona became a very sophisticated city in last five years and is one of the largestconvention centers in Southern Europe. According to “Barcelona Tourism”, in 2010 Barcelonahas hosted 2,138 meetings and 616,833 delegates. In comparison with 2009, the number ofhosted meeting and delegates, increased by 15.1% and 7.1% respectively. Indeed, in 2010 therewas a sharp increase of 39.5% in the number of delegates attending conventions andincentives, which represents the corporate activity of businesses to choose the city asconvenient destination. According to “World Bank” rankings, Barcelona takes 45th place in highincome category countries to do business. Barcelona is ranked as 2 nd in the world for organizingtrade fairs and congresses according to International Congress Association (ICCA).Barcelona is the headquarters of 458,918, mainly 98% of all companies are SMEs. The rate ofentrepreneurial activities is 6.7% and it is higher than European rate, which is 5.8%. What ismore, Barcelona is one of the leading European regions in hosting foreign investment projects,which were 1,348.3 million Euros in 2009. The largest amount of foreign companies inBarcelona is from France (626), Germany (572), United States (366), Italy (346), Netherlands(307), United Kingdom (245), Switzerland (188), Japan (98) and other (633). Barcelona isranked as 5th best European city to do business, 2nd city in Europe of greatest progress, 4th bestknown city in Europe.All the given data gives a clear understanding that since, there is a large amount of local andforeign companies and delegates who are coming to participate in the conferences gives anidea that there is a huge or even an enormous market for “Business Incentives Tourism”.Leading to this, the main idea is to provide business incentives services to SMEs and largecompanies in collaboration with “Business Incentives Agencies”. This means that we will besubcontractors of agencies and we will offer special packages of activities for the companies.Explaining why we are willing to become subcontractors is because “Business IncentivesAgencies” already have an existing client data and they are always updating information aboutnew enterprises and potential clients. Leading to this, we will be responsible for all the variousservices we can offer to our clients.
The packages offers will be divides in sub categories, which can be combined according to eachclient’s preferences: Sports activities (Sumo – fighting, self defense, kick boxing, rafting, spinning, etc.) Relaxing activities (Yoga, fishing and etc.) Learning activities (Dancing classes, sushi – making classes, massage classes, Chinese painting art classes, etc.) Fun activities (karaoke night, paintball, etc.)The most important key factor is to give an additional value to our clients by providing specialand exceptional services, which will give: Ability to communicate within different departments in the company by participating in the same outdoor activities such as dancing classes; Since it is really hard to retain the best talents in the company it is the best way to show that company cares about its employees and provides them with additional incentives; Additional incentives builds commitment and helps to increase labor productivity; Common activities will build and develop strong corporate culture; Ability to attract potential employees by emphasizing company’s corporate identity.According to the Department of Statistics in the beginning of 2011 there were 1,170 travelagencies, tour operators and other related companies. Comparing with 2010, the number hasincreased insignificantly by 2%. The not significant increase in the sector can be explained infew ways: Difficult economic situation within the country Strong competition, market leaders position Low service diversification enable to enter the market Non competitive prices Many direct and indirect competitorsLeading to this, our company doesn’t have any market share yet, but with expertise, creativity,sustainable strategy, commitment and in collaboration with significantly strong and leadingpartners in the market we will be able to earn 20 % of market share in 5 years and become oneof the biggest and leading “Business Incentives Tourism” company in Barcelona. Revenues aftera 5 year entrance period are expected to be 800.000 Euros in net profit.
PESTEL Analysis – External EnvironmentPESTEL Analysis should give and overview of all external factors which may influence the business of the company. Economic: Crisis (ongoing) => companies reduce/cut incentives Political: Stability of the €uro (or even Travel restrictions for business going back to original people currencies) Social: Taxes on business tourism Exchange Rate Other trends for incentive travel (other countries, Support for domestic business wellness instead of active travels (“make holiday in your courses) own country”) People avoid Barcelona Taxes on incentives because of the crime rate Higher taxes on labour (higher costs for employers) Our Company Legal: New rules/standards of Technological: environmental behaviour New “activities” available make business difficult which demand high Taxes on pollution make investment to make them or Environment: some of the activities which are for some reasons impossible (quad-driving, difficult to copy New cities become business centres (people are not speed boat…) going for incentive travels to Barcelona) Barcelona looses attractiveness for business tourism (e.g bad reputation)
Competition Research and AnalysisOur main business competitors are:Pymemarketing: event management agency, advertising and public relations, which aims toimprove company’s work in organizing special events, to facilitate their business and create aclimate that’s conducive to the brand. It operates in: Zaragoza, Huesca, Teruel, Madrid,Barcelona, Valencia and Bilbao.Allstarazafatas: a company composed of people with great experience in organizing events.Their business is to locate, plan and design each event to customer needs. The company offershostesses, catering, space rental, audiovisual, security, transportation... It operates in Barcelonaand Seville.Sebastian Group: Organization of Events. Barcelona, Spain.She Events: Event Planning in Barcelona (Catalonia). Company specialized in coordinatingproduct launches, cocktail parties, gala parties, theme dinners, business meetings, incentivetravel convention openings and cultural and sporting events.Okteam : Organizes corporate events, adventure activities, group dynamics, motivationalgames and exercises, outdoor training, indoor activities and so on. Located in Tarragona,Catalonia.Muchoeventos : a portal for the organization of company events . It has business events,shows, product launches and team building. The company uses unique spaces for its customersto find venues for meetings and conventions with many included services such as catering,accommodation and transportation, etc.Central events: a company in organization, production and realization of events with offices inBarcelona.Here are some sites that link us to these and other competitors:http://www.stressadrenalina.com/empresa.htm?gclid=CIna272c-qwCFUUPfAodVUWHSghttp://www.eventplannerspain.com/http://www.okteam.es/http://www.ambiance-incentives.com/http://www.another-konzept.com/http://www.alliedpra.com/destinations/spain.htmlhttp://www.barcelonaadventure.com/index.cfm/p/packages
Market Research – Process and InstrumentsMarket research information will be used to identify and define key marketing opportunitiesand issues, to generate, refine, and evaluate marketing actions, to monitor marketingperformance and to improve the overall understanding of the marketing process. Generally,market research targets the information, manages and implements the data-collection process,analyzes the results, and communicates the findings and their implications.Our Marketing Research Plan will consist of four major processes: 1. Definition of the Research Objectives 2. Development of the Research Plan 3. Implementation of the Research Process 4. Interpretation and Reporting of ResultsGenerally, primary research comes after some secondary data is collected first. Secondary dataconsists of information that is already gathered with a different purpose. This informationalready exists and has to be applied to our specific research objectives.The main sources of secondary data we are going to examine are: a) Internal organizational sources such as income statements, balance sheets, inventory records, company publications, etc. b) External sources such as government publications, periodicals, journals, specialized literature and commercial data.Secondary sources can provide information that is not directly available or would be toodifficult to collect. However, the needed information may not exist. That explains whyresearchers can rarely obtain all the data they need from secondary sources. We shouldexamine our secondary information carefully in order to evaluate four key elements: 1. Information Relevance (Related research project needs) 2. Accuracy (Reliability of collection and reporting) 3. Currency (Up to date information for supporting current decisions) 4. Impartiality (Objectivity in collection and evaluation)Since secondary data is not collected for our specific purpose, there should be significant focuson data interpretation. We should carefully analyze the information and its sources and alwaysbe aware of differences in expression and meaning. We have to approach all informationthoroughly and try to identify the specific areas that need to be examined in our primaryresearch.
The primary research represents the collection of more specific market information, which isintended to improve marketers’ understanding on already identified business points. Primarydata consists of information collected for the specific purpose and its collection requires moreextensive research, more time, and more resources.The basic instruments that we are going to use in conducting our primary research will be: 1. Interviews: Structured or semi-structured conversations with potential customers or industry experts.- This tool provides an excellent opportunity to research the consumer buying potential and toexplore customer preferences for the specific activities in our service portfolio. By comparingthe responses of target interviewees we can decide on more specific features of our service anddevelop our overall market approach. Interviews can be made both through meetings and bythe use of communication devices and software such as mobile phones and Skype. 2. Focus Groups: Small, structured group meeting consisting of 5 to 10 participants from a target market segment.- Focus groups can give us the chance to have structured discussions with interested sides, tointroduce our service to the industry and to-pre test new ideas related to our activity portfolio.Major discussion points can be that the generated data may not be sufficient for effectivedecision process, as well as the reluctance of participants to share personal beliefs andinformation. 3. Surveys: Research instruments designed to test attitudes and perceptions on current product offerings or defined future offerings. Can include quantitative and qualitative data.- Surveys will be an integrate part in our market research process. We should aim to create anextensive, yet easy to comprehend surveys that can serve as a fundamental point in ourmarketing information strategy. We can create complicated analytical result managementsystem and generate research reports on our survey information. The surveys may bedistributed electronically - using e-mail and social networks. 4. Observation: Observation of related activities.- By visiting and/or participating in similar events we can get real life observation data. Ifapplicable, this can prove useful in our research. However, in the majority of cases, this hardlygenerates enough quantitative information to go for specific market initiatives. 5. Experiment: Experimentation with different processes and activities- We can try some specific activities ourselves, and/or invite potential customers and experts toobserve and participate in the creation and development of special events.