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Market Feasibility

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  • 1. Market Feasibility Study of PALM ISLANDPresented By: Yatin Bansal Sunam Pal Sree Hari Haran Satish 1
  • 2. features of Palm island• Unique• This makes it a resemblance of richness.• To be related to palm island brings pride to people as its one of its kind. BENCHMARK- 2011,PSGIM,Coimbatore 2
  • 3. Palm island taps various markets… • Tourism • Residential • Entertainment area • Resorts, hotels and restaurants BENCHMARK- 2011,PSGIM,Coimbatore • Cruise, boating and other water sports. Safety and security • It is more of a backwater than a sea beach. • It is surrounded by high level boundaries which protects it from high tides. 3
  • 4. Alliance University Market Feasibility Analysis of Palm Island PROJECT MANAGEMENT Quantitative Tools for Market Feasibility Test 4 SAT 17 APR
  • 5. Alliance University Market Feasibility Analysis of Palm Island PROJECT MANAGEMENT Quantitative Tools 1. Forecasting 2. Percent Median Market Factors For Testing 3. Control Chart 1. Tourism Growth 4. Predictive Gravity 2. Entertainment Clubs Modeling 3. Real estate Mapping 5. Assignment Model 4. Footfalls in Malls 5. Resorts possible areas 6. Customer Life Time Value ( CLV ) 7. Sensitivity Analysis 5 SAT 17 APR
  • 6. Alliance University Market Feasibility Analysis of Palm Island PROJECT MANAGEMENT Forecasting of Tourism GrowthDefinition : The process of analyzing current and historicaldata to determine future trends. 6 SAT 17 APR
  • 7. Alliance University Market Feasibility Analysis of Palm Island PROJECT MANAGEMENT Step:1 Forecasting Definition : The process of analyzing current and historical data to determine future trends.Year 2005 2006 2007 2008 2009 2010No of Tourist 18,76519,867 21,654 22,123 23,778 25,169 No of Tourist 30,000 25,000 1. Regression Analysis 20,000 2. Moving Average Axis Title 15,000 10,000 y = 1263.5x - 3E+06 3. Extrapolation 5,000 R² = 0.9877 4. Trend Analysis 0 2004 2005 2006 2007 2008 2009 2010 2011 Axis Title 7 dy/dx = GrowthStandard Deviation SAT : 0.12 % 17 APR
  • 8. Alliance University Market Feasibility Analysis of Palm Island PROJECT MANAGEMENT Step:1 ForecastingDefinition : The process of analyzing current and historicaldata to determine future trends.Year 2005 2006 2007 2008 2009 2010 2011 2012No of Tourist 18,765 19,867 21,654 22,123 23,778 25,169 26,741 27,891 No of Tourist 30,000 25,000 20,000 15,000 10,000 5,000 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 8Standard Deviation 2011 Forecast SAT : 0.12 % : 26,741 17 APR
  • 9. Alliance University Market Feasibility Analysis of Palm Island PROJECT MANAGEMENT Step:1 Forecasting Definition : The process of analyzing current and historical data to determine future trends.Year 2005 2006 2007 2008 2009 2010 2011 2012No of Tourist The analysis gives an idea about 18,765 19,867 21,654 22,123 23,778 25,169 26,741 27,891 expected figure in Dubai but it does No of Tourist 30,000 25,000 not show how will it impact 20,000 specifically palm Island 15,000 10,000 5,000 9 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 SAT 17 APR
  • 10. Alliance University Market Feasibility Analysis of Palm Island PROJECT MANAGEMENT Step:2 Percent Median MarketDefinition : It defines the percentage distribution acrossvarious factor Helps to know 1. Market penetration 2. Potentiality of a particular segment 10Standard Deviation 2011 Forecast SAT : 0.12 % : 26,741 17 APR
  • 11. Alliance University Market Feasibility Analysis of Palm Island PROJECT MANAGEMENT Step:2 Percent Median MarketDefinition : It defines the percentage distribution acrossvarious factor Helps to know 1. Market penetration Tourism 2. Potentiality of a particular segment Age Group < 25 25-30 30-40 40-50 50> Total Will Visit Palm 12 24 49 21 9 115 Island Will Visit Other 157 231 369 189 112 1058 Place Will visit for both Palm Island & 4 9 19 7 3 42 Other places Total 173 264 437 217 124 1215 11Standard Deviation 2011 Forecast SAT : 0.12 % : 26,741 17 APR
  • 12. Alliance University Market Feasibility Analysis of Palm Island PROJECT MANAGEMENT Step:2 Percent Median MarketDefinition : It defines the percentage distribution acrossvarious factor Helps to know 1. Market penetration Tourism 2. Potentiality Percent Median table The of a particular segment can be formed based on Age Group < 25 25-30 30-40 40-50 50> Total Will Visit Palm Island 12 24 1. 49 Customer Survey 115 21 9 Will Visit Other 2. Customer Feedback 157 231 369 189 112 1058 Place 3. Expert Opinion Will visit for both Palm Island & 4 9 4. 19 Historical Trends 42 7 3 Other places Total 173 264 437 217 124 1215 12Standard Deviation 2011 Forecast SAT : 0.12 % : 26,741 17 APR
  • 13. Alliance University Market Feasibility Analysis of Palm Island PROJECT MANAGEMENT Step:2 Percent Median Market Tourism Age Group < 25 25-30 30-40 40-50 50> Total Will Visit Palm 12 24 49 21 9 115 Island Will Visit Other 157 231 369 189 112 1058 Place Will visit for both Palm Island & 4 9 19 7 3 42 Other places Total 173 264 437 217 124 1215 Market Penetration = (115 + 42 ) / 1215 = 12.92 % 13Standard Deviation 2011 Forecast Marketing Penetration SAT : 0.12 % : 26,741 : 12.92% 17 APR
  • 14. Alliance University Market Feasibility Analysis of Palm Island PROJECT MANAGEMENT Step:2 Percent Median Market Tourism Potentiality of customer segments Age Group < 25 25-30 30-40 40-50 50> Total Age Group % share Preference Will Visit Palm 12 <24 25 49 21 95 115 Island 14.23868313 Will Visit Other 25-30 2 157 231 369 189 21.72839506 112 1058 Place Will visit for both 30-40 35.96707819 1 Palm Island & 4 9 19 7 3 42 Other places 40-50 17.8600823 3 Total 173 264 50> 437 217 124 4 1215 10.20576132 TOTAL 100 Market Penetration = (115 + 42 ) / 1215 = 12.92 % 14Standard Deviation 2011 Forecast Marketing Penetration SAT : 0.12 % : 26,741 : 12.92% 17 APR
  • 15. Alliance University Market Feasibility Analysis of Palm Island PROJECT MANAGEMENT Step:2 Percent Median Market Tourism Potentiality of customer segments Age Group < 25 25-30 30-40 40-50 50> Total Age Group % share Preference Will Visit Palm 12 <24 25 49 21 95 115 Island 14.23868313 Will Visit Other It gives idea about market penetration & Place 157 25-30 231 369 189 21.72839506 2 1058 112 30-40 1 customer4segment, but still gives no idea Will visit for both 35.96707819 Palm Island & 9 19 7 3 42 40-50 3 about the feasibility of project Other places 17.8600823 Total 173 264 50> 437 217 124 4 1215 10.20576132 TOTAL 100 Market Penetration = (115 + 42 ) / 1215 = 12.92 % 15Standard Deviation 2011 Forecast Marketing Penetration SAT : 0.12 % : 26,741 : 12.92% 17 APR
  • 16. Alliance University Market Feasibility Analysis of Palm Island PROJECT MANAGEMENT Step:3 Control Chart Potentiality of customer segmentsControl charts, also known as process-behavior charts, in statisticalprocess control are tools used to determine whether or not amanufacturing or business process is in a state of statistical control. It has : USL : Upper Specification Limit LSL : Lower Specification Limit 16Standard Deviation 2011 Forecast Marketing Penetration SAT : 0.12 % : 26,741 : 12.92% 17 APR
  • 17. Alliance University Market Feasibility Analysis of Palm Island PROJECT MANAGEMENT Step:3 Control Chart Potentiality of customer segmentsControl charts, also known as process-behavior charts, in statistical processcontrol are tools used to determine whether or not a manufacturing or businessprocess is in a state of statistical control. LSL 3000 3500 USL• Under Utilization • Over capacity• No ROI • Risks No of tourist Expected Tourism in 2011 = ( 26,741 X 0.1292 ) = 3208.92 17Standard Deviation 2011 Forecast Marketing Penetration SAT : 0.12 % : 26,741 : 12.92% 17 APR
  • 18. Alliance University Market Feasibility Analysis of Palm Island PROJECT MANAGEMENT Control Chart Potentiality of customer segmentsControl charts, also known as process-behavior charts, in statistical processcontrol are tools used to determine whether or not a manufacturing or businessprocess is in a state of statistical control. LSL 3000 3208 3500 USL Feasible• Under Utilization • Over capacity• No ROI • Risks No of tourist Expected Tourism in 2011 = ( 26,741 X 0.1292 ) = 3208.92 18Standard Deviation 2011 Forecast Marketing Penetration SAT : 0.12 % : 26,741 : 12.92% 17 APR
  • 19. LSL USL LSL USL Feasible Feasible No Risk but Risky BENCHMARK- 2011,PSGIM,Coimbatore LSL USL Not Feasible 19
  • 20. BENCHMARK- 2011,PSGIM,Coimbatore Tourism at Palm Island is Feasible 20But feasibility may differ on territory level
  • 21. Weak territories Strong territories BENCHMARK- 2011,PSGIM,Coimbatore Tourism at Palm Island is Feasible 21But feasibility may differ on territory level
  • 22. Alliance University Market Feasibility Analysis of Palm Island PROJECT MANAGEMENT Step:4 Predictive Gravity Modeling Potentiality of customer segmentsForecast the total potential sales availablefrom each neighborhood in the trade areaThe model should bedesigned to mesh with the Inputdata that will be used when variables V1 V2 V3the model is implemented.In GIS analysis and mostother large dataanalyses, the F(X)characteristics ofindividuals are summarizedinto the neighborhoodsdemographic or Outputpsychographic profile ( Graphic user Interface ) 22 SAT 17 APR
  • 23. Alliance University Market Feasibility Analysis of Palm Island PROJECT MANAGEMENT Step:4 Predictive Gravity Modeling Potentiality of customer segments OUTPUT Market Penetration 23 SAT 17 APR
  • 24. Alliance University Market Feasibility Analysis of Palm Island PROJECT MANAGEMENT Step:4 Predictive Gravity Modeling Potentiality of customer segments OUTPUT FeasibleCase: Market PenetrationOpening ashopping MallCriteria : In a areawhere marketpenetration isbetween above50% 24 Not Feasible SAT 17 APR
  • 25. Alliance University Market Feasibility Analysis of Palm Island PROJECT MANAGEMENT Step:4 Predictive Gravity Modeling Potentiality of customer segments OUTPUT FeasibleCase: Market PenetrationOpening ashopping Mallan idea about feasibility but how to It gives decide which territory is best feasible ?Criteria : In a areawhere marketpenetration isbetween above50% 25 Not Feasible SAT 17 APR
  • 26. Alliance University Market Feasibility Analysis of Palm Island PROJECT MANAGEMENT Step:5 Assignment Model Potentiality of customer segments To find most best feasible solution Area 1 Area 2 Area 3 Area 4 Area 5 Shopping Mall 1 5 2 3 4 26 SAT 17 APR
  • 27. Alliance University Market Feasibility Analysis of Palm Island PROJECT MANAGEMENT Step:5 Assignment Model Potentiality of customer segments To find most best feasible solution BEST FEASIBLE Area 1 Area 2 Area 3 Area 4 Area 5 Shopping Mall 1 5 2 3 4 Shopping Mall Area 1 Restaurant 2 4 3 1 5 Resort 5 2 Restaurant 3 1 BEST Area 4 4 Club 4 1 Resort 2 5 Area 3 3 residential Club Area 2 Area 5 2 3 4 1 Residential Area Area 5 27 Applying Assignment Model SAT 17 APR
  • 28. Alliance University Market Feasibility Analysis of Palm Island PROJECT MANAGEMENT Step:5 Assignment Model Potentiality of customer segments To find most best feasible solution BEST FEASIBLE Area 1 Area 2 Area 3 Area 4 Area 5 Shopping Mall 1 5 2 3 4 Shopping Mall Area 1 Restaurant much value would customers How 2 4 3 1 5 Resort 2 Restaurant 3 Area 4 5 add to you? 1 BEST 4 Club 4 1 Resort 2 5 Area 3 3 residential Club Area 2 Area 5 2 3 4 1 Residential Area Area 5 28 Applying Assignment Model SAT 17 APR
  • 29. STEP : 6 Customer Lifetime Value ( CLV ) In marketing, customer lifetime value (CLV), lifetime customer value (LCV), or lifetime value (LTV) is the net present value of the cash flows attributed to the relationship with a customer k BENCHMARK- 2011,PSGIM,CoimbatoreCLV: Customer Lifetime ValuePC : Profit Contributiond : Discount Raten : Number of years 29k : Time unit
  • 30. STEP : 6 Customer Lifetime Value ( CLV ) In marketing, customer lifetime value (CLV), lifetime customer value (LCV), or lifetime value (LTV) is the net present value of the cash flows attributed to the relationship with a customer k BENCHMARK- 2011,PSGIM,Coimbatore Risks ?CLV: Customer Lifetime ValuePC : Profit Contributiond : Discount Raten : Number of years 30k : Time unit
  • 31. STEP : 7 Sensitivity AnalysisSensitivity analysis (SA) is the study of how thevariation (uncertainty) in the output of amathematical model can be apportioned,qualitatively or quantitatively, to different sources BENCHMARK- 2011,PSGIM,Coimbatoreof variation in the input of the model. I(X) O ( X, Y) I(Y)If f ( x ) is altered, than to what degree O ( X,Y ) would change. 31
  • 32. STEP : 7 Sensitivity AnalysisSensitivity analysis (SA) is the study of how thevariation (uncertainty) in the output of amathematical model can beapportioned,on sensitivity analysis we Based qualitatively or quantitatively, to BENCHMARK- 2011,PSGIM,Coimbatoredifferent sources of variation in the input of the have to decide contingency levelmodel. I(X) O ( X, Y) I(Y)If f ( x ) is altered, than to what degree O ( X,Y ) would change. 32
  • 33. Alliance University Market Feasibility Analysis of Palm Island PROJECT MANAGEMENT Qualitative Tools for Market Feasibility Test 33 SAT 17 APR
  • 34. Alliance University Market Feasibility Analysis of Palm Island PROJECT MANAGEMENT Quantitative Tools 1. Concept Testing 2. Delphi Techniques 3. Focus Group Advice 4. Nominal technique 5. Alpha Testing 6. Beta Testing 7. Test Marketing 8. Market Simulation 9. Competitive Advantage Analysis 34 10. Sustainability Test SAT 17 APR
  • 35. Concept Testing• People’s reaction to a basic idea of the product• Usually done before a product is marketed.• Ensures the selection of the most favorable concept• Reduces research, development and marketing cost• Lays a foundation for Benchmarking in future• Forecasts and analyses the demand and ensures the right time of launching
  • 36. Focus Groups?• Its dangerous to take "customers" for granted• To collect qualitative data• To determine feelings, perceptions and manner of thinking of participants regarding products, services, programs or opportunities• To promote self-disclosure among participants
  • 37. Test MarketingTo test a new product or a new marketing plan underrealistic market conditions to measure sales or profitpotential.Done based on the following1. Population size2. Demographic composition3. Lifestyle considerations4. Competitive situation5. Media
  • 38. Test MarketingWHY1. To identify and correct weakness in the plan2. To estimate the outcomes OUTPUT1. Reduced cost2. Increased secrecy from competitors
  • 39. Alpha Testing• Acceptance testing• Done in front of client or customer for their acceptance.• The Product is developed according to the customers requirement and Specification.• Generally termed as internal testing
  • 40. Beta Testing• Done after Alpha testing• Termed as External user acceptance testing• Open to limited people• Based on their feed backs the flaws are corrected
  • 41. Competitive Advantage“A project’s profit potential is largelydetermined by the intensity ofcompetitive rivalry within that Project”
  • 42. Competitive Advantage• Variety of health spas, fitness centres and residents clubs• Outstanding facilities at 30 luxury five-star or boutique hotels• Wide selection of restaurants offering the finest cuisine from all over the world• Tax-free, designer brand shopping on the Golden Mile and in Palm Mall• Safe, gated communities and top security in all apartment residences• Miles of beautiful, golden beaches with spectacular ocean views• Incredible range of attractions and events, as well as theatres, cinemas and nightclubs
  • 43. PSGIM, Coimbatore E-procurement system of Honeywell & Vedanta BENCHMARK – 2 0 1 1 Questions Please ???? 43 Fri 25 Feb