Bodega de Mendoza (Final update)

Bodega de Mendoza
“A Luxury Experience”
Ninia Roscoe, Giulia Giovagnoli, Nicola
Pearce, Jaeeun Lee and Anna Rueansom

TABLE OF CONTENTS
Table of figures.........................................................................................................................................................................5
List of Tables..............................................................................................................................................................................5
1 Executive Summary...................................................................................................................................................................1
1.1 Business Overview.............................................................................................................................................................1
1.2 Financial Overview ............................................................................................................................................................2
1.2.1 Cash Flow.....................................................................................................................................................................2
1.2.2 Profit and Loss............................................................................................................................................................3
1.2.3 Breakeven ....................................................................................................................................................................3
1.3 Nature of the business ....................................................................................................................................................4
1.4 Vision Statement ...............................................................................................................................................................4
1.5 Mission Statement ............................................................................................................................................................5
1.6 Business Objectives ..........................................................................................................................................................5
1.7 Partnership Agreement ...................................................................................................................................................6
1.8 Product Overview..............................................................................................................................................................7
1.8.1 List the major locations and highlights of your tour .....................................................................................9
1.8.2 List any third party activities, attractions, entrance fees and inclusions ................................................12
1.9 Tourism Audit...................................................................................................................................................................13
1.10 Strengths, Weaknesses, Opportunities and Threats ..........................................................................................15
1.10.1 Strengths .................................................................................................................................................................15
1.10.2 Weakness.................................................................................................................................................................16
1.10.3 Opportunities .........................................................................................................................................................16
1.10.4 Threats......................................................................................................................................................................16
1.11 Exit Strategy ....................................................................................................................................................................18
1.11.1 Best Case..................................................................................................................................................................18
1.11.2 Worst Case..............................................................................................................................................................18
2 Business Summary...................................................................................................................................................................19
2.1 Business Details................................................................................................................................................................19
2.2 Bank Details.......................................................................................................................................................................19

2.3 People Profile....................................................................................................................................................................20
3 Market and Market Strategy ................................................................................................................................................22
3.1 Customers..........................................................................................................................................................................22
3.2 Market Size........................................................................................................................................................................22
3.3 Trends .................................................................................................................................................................................23
3.4 Competition Analysis .....................................................................................................................................................25
3.5 Consumer Analysis..........................................................................................................................................................27
3.6 Marketing and Promotional Strategy .......................................................................................................................28
4 Basic Operations ......................................................................................................................................................................31
4.1 Business Partners.............................................................................................................................................................31
4.2 Operating Procedures....................................................................................................................................................32
4.3 Monitoring Staff Performances ..................................................................................................................................33
4.4 Health and Safety ............................................................................................................................................................33
4.5 Cost Control ......................................................................................................................................................................33
5 Operations and Logistics.......................................................................................................................................................34
5.1 Production.........................................................................................................................................................................34
5.2 Delivering to customers ................................................................................................................................................34
5.3 Payment..............................................................................................................................................................................34
5.4 Suppliers.............................................................................................................................................................................35
5.5 Premises .............................................................................................................................................................................35
5.6 Equipment .........................................................................................................................................................................35
5.7 Transport............................................................................................................................................................................36
5.8 Legal Requirements ........................................................................................................................................................36
5.9 Management and Staff..................................................................................................................................................36
6 Financial Summary ..................................................................................................................................................................38
6.1 Pricing strategy ................................................................................................................................................................38
6.2 Projection of Customers................................................................................................................................................38
6.3 Expenses Cost Breakdown............................................................................................................................................39
6.4 Cash Flow...........................................................................................................................................................................41
6.5 Profit and Loss..................................................................................................................................................................41
6.6 Breakeven...........................................................................................................................................................................42

7 Legalities.....................................................................................................................................................................................43
7.1 Financial Protection ........................................................................................................................................................44
7.2 Public Liability Insurance...............................................................................................................................................45
7.3 Customer protection ......................................................................................................................................................45
7.4 Health and Safety ............................................................................................................................................................45
7.5 ABTA (2016).......................................................................................................................................................................46
8 Principal Risks and Problems ...............................................................................................................................................47
Appendices....................................................................................................................................................................................49
A. Future Projections.........................................................................................................................................................49
B. Assumptions...................................................................................................................................................................49
C. Product Literature.........................................................................................................................................................51
D. Specific Market Research Methods and Findings ..............................................................................................53
E. Organisation Charts/Rotas ........................................................................................................................................53
F. Minutes of all the meetings ......................................................................................................................................56
G. Time Management/Planning ....................................................................................................................................81
H. Gantt Chart .....................................................................................................................................................................82
I. Other Relevant supporting documents .................................................................................................................84
Bibliography..................................................................................................................................................................................97

TABLE OF FIGURES
Figure 1: Cash Flow Forecast .....................................................................................................................................................3
Figure 2: Profit and Loss..............................................................................................................................................................3
Figure 3: Breakeven ......................................................................................................................................................................4
Figure 4 - Business objectives ...................................................................................................................................................6
Figure 5: Tour Inclusion ...............................................................................................................................................................8
Figure 6: Business Details .........................................................................................................................................................19
Figure 7: Bank Details.................................................................................................................................................................19
Figure 8: People Profile .............................................................................................................................................................21
Figure 9: Winery Tourists in New Zealand, (2014) ............................................................................................................23
Figure 10: ProsperAr, (2009) ....................................................................................................................................................24
Figure 11: Projection of Customer .........................................................................................................................................38
Figure 12: Cash Flow...................................................................................................................................................................41
Figure 13: Profit and Loss .........................................................................................................................................................42
Figure 14: Breakeven..................................................................................................................................................................42
LIST OF TABLES
Table 1: Lists of Major Locations and Activities .................................................................................................................12
Table 2: List of third party activities, attractions, entrance fees and inclusions ......................................................13
Table 3: Tourism Audit...............................................................................................................................................................15
Table 4: Competition Analysis.................................................................................................................................................27
Table 5: Expenses Cost Breakdown .......................................................................................................................................40
Table 6: Risks and Problems....................................................................................................................................................48

Bodega de Mendoza Page 1 of 105
1 EXECUTIVE SUMMARY
1.1 BUSINESS OVERVIEW
Bodega de Mendoza is a start-up luxury tour operator based in Manchester, UK; offering
luxury food, wine and culture tours, exclusively for couples and small groups aged 30-60
years, visiting different wine routes in Mendoza.
The main location of the tour will be in Mendoza because it is a city in western
Argentina, and it is known as the “heart of the Argentinian wine industry”.
We aim to attract couples who are looking for a chance to experience luxury wine tours,
whether it is to make the most of a romantic getaway or to encounter new love between
partners.
The plan of the company is to create and build a strong setting in the local market, due
to a growing popularity in offering a luxury service and experience in the region. By
focusing on the local producers, we hope to personalise these local market to give our
tour operation (Bodega de Mendoza) a unique, exotic and authentic feel.
We have forecasted to achieve an annual net profit of £135,631 by the end of Year 1.
Year 2 is forecasted at £279,222.41, and Year 3 at £414, 227.42.
All from an initially planned investment of £40,000.00
We have currently invested £15,000 and are now looking for an additional investment of
£25,000 to enable the business to start up.
Bodega de Mendoza is managed by Ninia Liezl Roscoe, Giulia Giovagnoli, Jaeeun Lee,
Nicola Pearce and Anna Rueansom working in partnership.

1.2 FINANCIAL OVERVIEW
By looking to expand the business by approximately 5% each year, we have forecasted
strong sales in the first year especially during winter between November to March
because this is the forecasted peak season of wine tours in Argentina specifically in
Mendoza, following by improving this into year two and three.
Sales for Year 1 are forecasted at £936,000.00
This is based upon the slow development of the business by attracting additional
customers each month. These forecasted figures are based on the demand and number
of customers wanting to book with us from different areas in the UK. Other factors were
considered, such as being able to attract customers from our competition and other
countries also.
To ensure there is sufficient working capital available in the first year of trading, only the
minimum amount is being drawn down from the business.
1.2.1 CASH FLOW
£0.00
£1,000,000.00
£2,000,000.00
£3,000,000.00
£4,000,000.00
£5,000,000.00
£6,000,000.00
£7,000,000.00
Yr 1/17 Yr 2/18 Yr 3/19
Cash Flow Forecast
Total Income Total Expenditure Net Cash Flow Bank Balance

Figure 1: Cash Flow Forecast
1.2.2 PROFIT AND LOSS
Figure 2: Profit and Loss
1.2.3 BREAKEVEN
£0.00
£500,000.00
£1,000,000.00
£1,500,000.00
£2,000,000.00
Yr 1/17 Yr 2/18 Yr 3/19
Profit and Loss
Sales Total Expenditure Gross Proft Net Profit

Figure 3: Breakeven
1.3 NATURE OF THE BUSINESS
Bodega de Mendoza is a small to medium enterprise. This tour operator is equally
owned and set up by a team of five. The business will be set up as a limited company,
located in Manchester. It will be offering luxury wine tours for couples or small groups
of individuals for 10 days, including a 7 - day tour (8-12 people). The package will
include; luxury accommodation, excursions, transfers and a breakfast exclusively in
Mendoza, Argentina.
1.4 VISION STATEMENT
We believe that by providing a luxury food, wine, and culture tour, and by pricing our
product and service competitively, we can offer our customers the unforgettable and
the best of both worlds: “quality and value for money”.
0
100000
200000
300000
400000
500000
600000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Break-Even
Number of Travellers Fixed costs Variable costs
Total Costs Total Sales Profit/Loss
Breakeven

By sourcing the best local produce and market we feel we can offer our customers a
memorable and authentic wine tour holiday, and also, encourage the customers to
interact with locals and support local businesses.
Ultimately, we want to be known as the tour operator that offers unique and authentic
wine tours in the UK, and to be known as a tour operator that supports local businesses
in Mendoza, Argentina.
1.5 MISSION STATEMENT
At Bodega de Mendoza, we aim to provide our customers with an unforgettable and
authentic cultural wine experience, organised by our highly trained and professional
team. As an environmentally and socially conscious tour operator, we aim to provide
luxury wine tours for couples and small groups of individuals. We are committed to
fulfilling our customer’s enjoyment and satisfaction with a locally enriched experience
and go beyond their expectations.
1.6 BUSINESS OBJECTIVES

Figure 4 - Business objectives
1.7 PARTNERSHIP AGREEMENT
Bodega de Mendoza is a private limited company (Ltd.) owned by five partners. The
partners will own shares in the business and be liable for their own legal identity.
Bodega de Mendoza is a small business and shares will not be sold on the stock
exchange.
This partnership is equally owned by Ninia Roscoe, Giulia Giovagnoli, Jaeeun Lee, Nicola
Pearce and Anna Rueansom. The company is primarily based in Manchester; however,
staff will be based in Argentina on a rotation basis. There will be two members of staff
located in the destination of Mendoza for two months at a time and then these staff
members will be rotated.
Shorterm
• Bodega de Mendoza aim is to try and grow the business by5% every
year, achieving total sales by the end of the first year of £936,000.00
• This equates to selling the maximum of 50 tours (25 couples) in a
month, by month 12.
Medium
• For year two and three, we plan to continuing to grow the business
by 5% every year.
• Aiming to win World Travel Awards or British Travel Awards.
Long-term
• Bodega de Mendoza aim is to create a partnership and links with
different local businesses within Mendoza, Argentina in order to use
their services for supply purposes and the possibility of working
together on community projects to create a better business
environment and to support local community.
• Another of Bodega de Mendoza’s long term goals, is to expand the
business around Argentina and to open more stores in the UK and in
Mendoza.

1.8 PRODUCT OVERVIEW
Tasting and lunch experience perfect for wine lovers. A group tour provided by
our professional and experienced staff. Clients get to experience an enchanted
brewery and winery as well as picking up to 6 different tastings.
Offers luxury wine tours around Mendoza.
Provides package tour, which includes: luxury accommodation, wine tasting,
transfers and different types of activities.
Explore the unforgettable vineyards in Mendoza.
Provides the highest quality of services with professional staffs.
Explore diverse activities such as mountain climbing, luxury spa, and cooking
class etc.
Bodega de Mendoza primarily offer luxury wine and culture tours around Mendoza. The
package includes transfers, luxury accommodation, wine tastings and additional
activities such as mountain climbing, cooking classes and a luxury spa day. Customers
experience an enchanted brewery and winery and have the opportunity to taste a range
of different wines and food. The tours and activities are instructed by our professional
staff. Extensive training has been undertaken for each activity, to offer an unforgettable
experience.

Figure 5: Tour Inclusion
Bodega de Mendoza
Mendoza Luxury Wine Tour Itinerary for 25 couples. All tours are provided by a
bilingual guide and a member of Bodega de Mendoza.
Accommodation will be Casa De Uco (www.casadeuco.com)
Mendoza’s international airport, "Gobernador Francisco Gabrielli" (former "El
Plumerillo"), is where domestic flights arrive, connecting Mendoza to the rest of the
provinces of Argentina, including Buenos Aires which has direct flights from important
cities around the world such as New York, Madrid, Miami, London, São Paolo, Paolo,
Rio de Janeiro, Los Angeles, Paris, Amsterdam, Sydney, among others. Mendoza’s
airport is also a link to the city of Santiago, Chile and, from there, to the rest of the
world.
Map out the duration, frequency and departure point of your tour
When will your tour depart? Monday AM
When will your tour return? Monday AM
How often will your tour operate? Once every two weeks
Where will the central departure point be? Casa De Uco

1.8.1 LIST THE MAJOR LOCATIONS AND HIGHLIGHTS OF YOUR
TOUR
Days Highlights and Activities
Saturday
On arrival, guests will be picked up from the airport in a minibus alongside
the bilingual tour guide and one member of the Bodega de Mendoza tour
company associates. Guests will travel at the accommodation “Casa De Uco”
in the district of Vista Flores, Mendoza Argentina. Guests will be welcomed
with champagne on arrival and shown around the estate. Guests will then
retreat to the suites or lodges of preference.
Sunday
Guests will enjoy a day of rest in the accommodation and be able to settle
in and enjoy the surrounding areas. Lunch in the bar will be provided along
with 2 for 1 on all drinks, as an arrival offer.
10.00 - Wine Tour in Lujan De Cuyo known as the “Cradle of the Malbec”.
This tour begins at the unique winery “Cruzat Winery” which specialises in
Argentina's Sparkling wines. This winery has tall stainless steel towers in
which a local owner yields the wines.
Monday
13.00 - The Tour will then take guests to Caelum another excellent vineyard
which also boasts a pistachio farm. Lunch will be provided at Ojo de Agua
winery, one of Mendoza’s premier dining locations. A delicious four-course
meal will be provided, with explanations of the food by locals that work the
land. In the outdoor restaurant, guests will be able to enjoy the finest
Malbec wine alongside the state of the art fine dining.
17.00 - Return to the accommodation for relaxation and evening meal.

Tuesday
13.00 - Culture and City Tour of Mendoza - this 3-hour trip is a sightseeing
tour of the city situated at the foot of the Andes mountains. The trip will
include visits to major landmarks such as plazas, stadiums, Alameda and
General San Martin Park which will allow guests to enjoy Mendoza’s natural
beauty and the interesting historic architecture. Cerro de la Gloria, the
highest point in Mendoza will allow guests to view the city and the
surrounding wine regions. Mendoza’s largest stadium will be incorporated
into the tour which will also allow guests to view the 1978 world cup
location.
18.00 – In the evening, the guests will go to the frank Romero Day
amphitheatre where the guests will learn about the annual vintage wine
festival and enjoy the wine based culture.
Wednesday
9.00 - Traditional Family Run Wine Tour/ Horse Riding. The early minibus
picks up will take guests southwest of Mendoza towards the town of
Tupungato. This experience of wildlife is a friendly, family, romantic
experience perfect for couples.
16.00 -The trip incorporates horseback riding in Mendoza with views of the
highest mountains and the Tupungato Volcano.
18.00 - This trip will also include a trip to El Marzano Historico, a small
village located at the bottom of the mountain. Return to accommodation.
Thursday
10.00 - Food, Cheese, Olive Oil in Maipu tour - this includes a five-hour visit
to the Clos de Chacras, to sample three of the wines and a tour of the olive
oil factory at Club Tapiz.
15.00 - Local argentine food will be provided as a four-course meal in The
Terruno legendary restaurant, an elegant Tapiz meal will be served with
regional cuisines such as perfectly grilled steak with goat's cheese and olive
oil tapenade.

17.00 - Return to accommodation.
Friday
12.00 - Guests will engage in a traditional Mendoza cooking class led by one
of Mendoza’s top chefs in the comfort of her own kitchen. The cooking class
will provide barbecue skills and enable guests to create their own salsas,
alongside sampling local wines. Personal service provided at all times and
free drinks included.
Saturday
10.00 - Wine Tour in Uco Valley, La Azul is the smallest winery in the Uco
Valley and provides guests with a romantic, tranquil experience. The winery
owned by local Flavia Manterola is a favourite among wine visitors
specializing in dark wines. Lunch will be provided after a short talk and
demonstration of the wine production.
20.00 - Guests will be picked up and taken into the local town to explore
bars, restaurants, and local shops and return to the hotel at midnight.
Sunday
Guests will be able to enjoy the accommodations elite spa, which offers a
choice of aromatherapy and monotherapy. The spa treatments will ensure
that guests feel revitalised and use only the finest techniques to nourish and
hydrate the body. The spring water is extracted from 300 metres
underground and will strengthen blood vessels and enhance circulation. The
spa includes a wood sauna, steam room, wet sauna, deep soaking baths,
treatment rooms and relaxation areas. The spa also boasts a fitness centre
for guests to enjoy along with a Jacuzzi, infinity pool and peaceful lagoon.
Monday
Guests will be accompanied to the airport and will fly home. Guests will be
provided with a goodbye package to read on the flights.

Total Price The seven-days excursion (excluding accommodation) costs £1255 per
person
Table 1: Lists of Major Locations and Activities
1.8.2 LIST ANY THIRD PARTY ACTIVITIES, ATTRACTIONS, ENTRANCE
FEES, AND INCLUSIONS
Description of activity Supplier – name of
company /
organisation /
government agency
Cost per person
Included in Price
YES/NO
Distance from
location and from
Each Destination
Wine Tour in Lujan De Cuyo
known as the “Cradle of the
Malbec”
Cruzat Winery £130.00 per
person
YES
£130.00 per person (1
hour and 10 minutes,
57.2 minutes)
Caelum Winery Ojo de Agua winery
for Evening drinks
and Meal
N/A
NO
£110 per person (1
hour 25 minutes, 68.9
miles)
Culture and City Tour of
Mendoza
Andes mountains,
plazas, stadiums,
Alameda and
General San Martin
Park.
Cerro de la Gloria
the highest point in
Mendoza.
The frank Romero
Day amphitheatre
for the annual
vintage wine
festival.
£110 per person
YES
£175.00 per person
(54 minutes, 32.6
miles)

Traditional Family Run
Wine Tour/ Horse Riding.
The town of
Tupungato and the
Volcano.
El Manzano
Historico.
£175.00 per
person
YES
(1 hour and 20
minutes, 65.6 miles)
Food, Cheese, Olive Oil in
Maipu tour
Clos de Chacras,
olive oil factory at
Club Tapiz, The
Terruno legendary
restaurant
price ranges from
£70 - £100 per
person
YES
(1 hour and 20
minutes, 67 miles)
Traditional Mendoza
cooking class
Mendoza Town
Centre.
£150
YES
(1 hour, 50 miles)
Wine Tour in Uco Valley La Azul Winery in
the Uco Valley,
Mendoza town
Centre on the
evening.
£150
YES
SPA day Casa De Uco YES ON SITE
Table 2: List of third party activities, attractions, entrance fees and inclusions
1.9 TOURISM AUDIT
Attractions Accommoda
tion
Accessibility Amenities Activities
Downtown:
Municipal
Aquarium
Glory Hill
Park Gates
B&BS Bus Festivals-
The Vendimia
Festival
Potrerillos
Explorer

Ruins of San
Francisco
Mendoza
Zoological Park
Las Heras:
Vaults of Uspallata
Mendoza
Cemetery
Mount Aconcagua
Puente del Inca
Hotels El Trole Food and Drink-
Don Claudio
Don Mario
El Mercadito
Antares
Azafran
Mendoza City
Tour
Lavalle:
Laguna del Rosario
Luxury
Resorts
Metrotranvia Events-
Mendoza
international
Marathon
Carnival
Maravilloso
Rancho Viejo
Malargue:
Pincheira Castle
Southern Pierre
Auger Observatory
Raquil North
Hostels Taxis, remis Museums/Galleries
-
Bodega La Rural
Chacras Paradiso
Quintanilla
Horse Riding

Mamm
San Rafael:
Rama Fall
The Dunes at
Nihuil
Villa 25 de Mayo
Air B&B Small
International
Airport
Baccus Biking
Uco Valley:
Tunuyan Drawer
Arenales
Apartments City Bus Cooking Classes
Bodegas, Festivals,
Casa de Fader,
Central Park, Plaza
Espino, Parque San
Martin
Live in
Homes
Bikes Wine tours
Table 3: Tourism Audit
1.10 STRENGTHS, WEAKNESSES, OPPORTUNITIES, AND
THREATS
1.10.1 STRENGTHS
Offers a personalised service to all guests.
A local tour guide can advise on the best places to visit.
A member of staff from Bodega de Mendoza will join each tour, so if any
problems do occur they can be resolved quickly.
All staff members have extensive knowledge and training about wine tourism and
can advise customers as required.

The location of Mendoza was chosen because of the excellent transport links with
Buenos Aires and the existing wine tourism in the region.
1.10.2 WEAKNESS
The company does not offer a travel agency which customers can drop into if
required.
The company does not book flights for customers, but can advise on airports and
flight times.
Only one product is on offer for the customers to buy, however, this can be
personalised to an extent.
There are no promotions or special offers to entice customers.
1.10.3 OPPORTUNITIES
There is an opportunity in the future when the company expands to offer tours of
different lengths to suit customers of different needs.
To hire another local tour guide in Mendoza, when more tours are being booked
each month to ensure the company remains sustainable and contributes to the
local community.
To expand the UK offices in Manchester after the first three years as the business
also expands.
Provide an option to customers with flights included in the tour, so they do not
have to book these separately.
1.10.4 THREATS

Competition from tour operators offering similar wine tourism tour packages.
The marketing campaigns not being substantial enough to attract customers to
book with the company, particularly in the initial months of the start-up business
operating.

1.11 EXIT STRATEGY
1.11.1 BEST CASE
As mentioned in our current Business Objectives, our overall intention is to make this
online tour operator successfully operating for the next three years. Also, we are hoping
to expand and perhaps open a new tour operator around London or outside the country
within the next five years.
Assuming the continued success of Bodega de Mendoza, we will be looking to bring
more people or partners to the business to help expand the company.
1.11.2 WORST CASE
If ever the company fails to reach the sales targets for the first year of operating, then
the viability of the business strategy must be questioned. Activities, operations, and
expenditures will be closely monitored on a daily basis. We will review the sales and
profit monthly, and will conduct our serious review and company meeting regarding our
position in the sixth month, to make sure we are addressing all the points that we are
lacking or failing to do so. If we reach the worst scenario and we are significantly under
our target sales at that point, we then should re-examine our promotional and
marketing strategy to make sure we are generating sales. If changes are made at this
point, but still the company does not make any profit by the end of the first trading
year, then we will reduce our supply and demand and probably will cease trading. There
should be less and minimal outstanding debts at this points.

2 BUSINESS SUMMARY
2.1 BUSINESS DETAILS
Figure 6: Business Details
2.2 BANK DETAILS
Figure 7: Bank Details
Bodega de Mendoza
High Street
Manchester
Lancashire,
M41 7BM
England, UK
Telephone: 0161-123-4567
Fax:
Email: bodega.de.mendoza@gmail.com
Website: bodega.de.mendoza.wix.com/bodegademendoza
VAT Details: 20% of Sales each month
Legal Status: Private Limited Company
Financial Year Start Month: January 2017
Bodega de Mendoza Bank Account
High Street
Town
Lancashire;
M41 7DB
England, UK
Account Manager – Mike Littlewood

2.3 PEOPLE PROFILE
The people profile was developed based on the results of the Belbin Inventory to
support each individual’s own areas of strength in relation to the business.Marketing Manager - Ninia Liezl Roscoe
Graduated from Leeds Beckett University with a Bachelor’s degree of 2:1 in
International Tourism Management and a master’s degree in Marketing. With
a three years’ experience in a marketing firm in New York and working as a
freelance marketing developer for KUONI travel. Previous job includes
working as marketing freelance for Royal Armouries and Tour Operator called
Sakura who specialises tour in Kyoto, Japan. Previous experience and interest
in cultural, food and wine industry with two years travelling around the world
mainly, South America, Asia and Europe. Current full-time job role: full-time
marketing for online tour operator Bodega de Mendoza. All job roles include
experience in: creating marketing plans, developing marketing products to
generate sales, creating social media profiles, researching market trends,
organising events and managing the marketing budget.
Legal Manager - Giulia Giovagnoli
First class honours degree in Law at Leeds Beckett University and five years’
experience in a Legal Travel Firm based in Manchester. Previous job included:
working in a travel organisation dealing with laws and regulations when
visiting countries such as, South America and Argentina. Previous employment
also includes experience working in a luxury hotel on the Events management
department. Current job role includes the legality and regulation management
of luxury travel to Argentina, Bodega de Mendoza. Previous experience and
interest in the Wine industry with three years travelling Italy, Spain, France and
South America on a wine tourism course. Also qualified in food health and
safety and first Aid with an interest in preparation and conservation of natural
food.

Figure 8: People Profile
Business Manager - Nicola Pearce
Graduated from Leeds Beckett University with a first class honours degree in
International Business. After gaining five years’ experience working as a
business manager for a Thomson travel agency in York, the practical knowledge
and experience will be beneficial to help set up a new tour operator as the
business manager. Following from spending five years working in York, and an
ambition to move back to Manchester where she is originally from. This new
opportunity to work for a new start-up company, Bodega de Mendoza, is the
perfect new challenge to put the skills gained from working at Thomson into
practice with the new company. Also has an interest in wine tourism and has
been on several holidays in Italy and South America exploring different
wineries.
Finance Manager - Jaeeun Lee
Graduated from Leeds Beckett University with International Tourism Management
Bachelor’s degree and Master’s degree in International Business. Three years’
experience from previous international travel agency as a finance manager and the
company provided luxury tour package products for customers, and the company was
located in Manchester, UK. Also Jaeeun managed travel and other budgets mainly for
South America and Europe area. While experiencing the travel company as a finance
manager, Jaeeun obtained diverse skills, especially practical management skills,
interaction skills and financial skills as well. Additionally, Jaeeun travelled Spain, France,
Czech Republic, New Zealand, Australia and South America to explore various activities
and to experience foods, wines and different cultures. Jaeeun is currently working as a
full-time finance manager for Bodega de Mendoza which offers luxurious food, wine
and cultural tours for customers who are interests in these type of tours
Operations Manager - Anna Rueansom
Graduated from Leeds Beckett University with International Tourism
Management bachelor’s degree. Previously worked in Argentina for a
year, for her placement and has gained experience working for a wine
tour company for 3 years as a manager

3 MARKET AND MARKET STRATEGY
3.1 CUSTOMERS
Our target market includes baby boomers who are looking for a romantic getaway with
their partner, or for a way to reconnect with one another. Therefore, it is useful to note
that in a study of consumers aged 45+ who have been on a romantic holiday recently,
63% chose to visit either the Caribbean or South America (Kulwicki, 2015). This shows
that South America is growing in popularity as a destination, and our company can offer
this target market the chance to rekindle a relationship and spend quality time together
by participating in activities such as wine tasting, cooking classes, and city sightseeing
tours.
Although older baby boomers drink more wine, generation Y began to show an interest
in wine from the early adulthood years and so both are target markets which Bodega de
Mendoza wish to pursue. Females interested in wine tourism tend to be younger in
comparison to males, and half of the females involved in a survey of age and gender
differences in wine tourism were aged between 25-39 (Carlsen and Getz, 2006). Our
company targets couples and small groups of friends and individuals, who are more
than often female friend groups or female solo travellers who are looking for an
enjoyable, and social experience.
3.2 MARKET SIZE
Wine is the most promotable beverage in the UK, and most pubs are promoting and
offering low price of their house wine or “buy 2 glasses, get the bottle free” (Bibendum,
2014). According to Bibendum report (2014), UK trades wines mainly from South Africa
and Argentina which are increasing ahead with annual volume growth of +15% and
+20% respectively in 2014. Australia is the following wine trading destination that
illustrates with +4% in annual growth. Interestingly, in 2014, France, USA, Chile and
Spain’s annual growth were declined between -3% to -5% compared to 2013
(Bibendum, 2014). The biggest decline was New Zealand (-19%), Italy (-11%) and
German (-12%).

Figure 9: Winery Tourists in New Zealand, (2014)
From the international tourist’s perspectives, figure 9 shows that the volume of UK
winery tourists in New Zealand presents high proportion (20,700) from 2009 to 2013
(New Zealand Tourism, 2014).
3.3 TRENDS
Wineries tourism has become more popular than ever. Wine tourism is one of the most
dynamic activity in the winery. According to the estimates by Bodegas de Argentina in
2015, there were more than 1.5 million people who have visited wineries in Argentina
(Decanter, 2016). In 2008, the worldwide wine production has reached over 269.4 million
hectolitres, which indicates a slight increase of one million hectolitres compared to 2007
(ProsperAr, 2009). In figure 1 it shows the ranking of wine producing in numerous of
countries, Argentina has ranked 5. 4 (ProsperAr, 2009).

Figure 10: ProsperAr, (2009)
Argentina has an outstanding and rich natural resources which represent agro-
ecological conditions for growing wine grapes and also highly qualified workforce lead
Argentina as a one of the world’s top wine tour destinations (Invest in Argentina, 2012).
In 2015 has produced around 1.5 billion litres of wine, which was produced 1.1 billion in
Mendoza. There are approximately 26, 00 vineyards registered in Argentina
(Businesscoot, 2016)
Argentina is the fifth largest wine producer in the world with almost 218,000 hectares of
vineyards. Meanwhile, the province of Mendoza is home to three-quarters of the
domestic wine output (Invest in Argentina, 2012). The number of employees who work
in winemaking fields is over 130,000. Last few decades, creating a new generation of
agricultural engineers, sommeliers, oenologists and technical experts, in addition to
wine entrepreneurs (Invest in Argentina, 2012).
The current trends of wine tourism in Argentina is on developing process as building
partnerships between international investors and local companies. (Invest in Argentina,
2012).
The variation of wines has been produced by over 950 national and international
companies. The wineries approximately produce one-third of fine wines under some
3,400 different labels, including boutique wineries (Invest in Argentina, 2012).
According to Bodegas de Argentina’s Tourism Department, it has been revealed that
about 569,226 tourists went to the Mendoza wineries, with an increase of 68%
compared with the same period of time in 2009 and a 10.5% more that the national
average (Anuvawines, 2016).
Mendoza is named to be one of the best local tourism according to the Great Wine
Capitals Global Network (2014). The province is also highlighted to give its fame
destination. The National Deputy secretary for tourism promotion, Patricia Vismara
indicated that wine tourism has helped uplift the economy in the region as well as

promote domestic and foreign markets, adding value in argentine ecotourism, (GWCGN,
2014).
3.4 COMPETITION ANALYSIS
Our Business - Bodega
de Mendoza
Competitor A -
Mendoza Wine Camp
Competitor B - Uncorking
Argentina
Product and
Services
- Fly to Mendoza for
10 days, with a 7-day
wine and culture tour.
- Airport meet and
greet and private
transport throughout
the tour.
- Accommodation
provided.
- Bilingual guide
- 1 day / 3 day / 5 day
/ 7 day tours
- Reserves
accommodation for
guests
- Airport meet and
greet
- Wine tours in different
regions of Mendoza.
- Accommodation to suit
the customer's
preferences.
- Private transportation
- Bilingual guide
Price 10-day tour -
£5,999.00 per couple.
7-day tour - U$ 1800
per person excluding
accommodation
- Prices range depending
on group size and wineries
visited.
- A sample itinerary for a
1-day tour for a group of 2
people costs U$ 235 per
person, compared to U$
145 per person for a group
of 6 people.
Availability Tours run all year
round.
- Tours run all year
round.
- November - May is
the most popular
time period.
Tours are available all year.

Delivery Online at
‘bodegademendoza.c
om’, via email,
telephone and social
media (Facebook,
Instagram, twitter).
Online at
‘mendozawinecamp.c
om’ or customers can
visit the office in
Buenos Aires.
Online at
‘uncorkingargentina.com’,
via email or telephone.
Location Mendoza Mendoza Mendoza
Special Offers N/A - 3 nights for the
price of 2 in Hotel
Bohemia when
booking the 3-day
tour.
N/A
After Sales
Service
- Goodbye, the
package including
photos, information
and discount vouchers
for their next booking.
- A phone call up to 5
days after customers
returns to the UK to
ensure their trip was
above satisfactory.
N/A N/A
Strengths The tour includes a
variety of activities
and wine tours to
keep customers
interested and ensure
the experience is
enjoyable and unique.
Can create tailor
made tours for
individuals and
groups to suit their
own needs. Will also
arrange additional
activities which
guests may want to
partake in whilst in
Mendoza.
Offers customers the
opportunity to explore
wineries, restaurants and
other amenities run by
locals in the area.
Weaknesses As a start-up business,
only one tour is on
offer, but as the
business grows a
wider choice of tours
will become available.
Offers a range of 1-
day tours but only a
choice of one tour on
the 3, 5 and 7-day
tours.
Sample itineraries only
show options for 1-day
tours.

USP A member of staff
from Bodega de
Mendoza will join the
customers in Mendoza
to act as a tour guide
and the appointed
manager for guests to
speak to if a problem
occurs.
Tours created and
tested by a couple
who have been living
in Mendoza since
2005 and have an
array of local
knowledge.
Custom built wine tours for
each and every customer.
Table 4: Competition Analysis
3.5 CONSUMER ANALYSIS
Long-haul holidays are becoming more accessible for young people and in the last five
years, 46% of consumers aged 16-34 have taken a long-haul holiday (Mintel, 2015). A
desire to travel to long-haul destinations is becoming more common among young
people, which gives our company an advantage when targeting our marketing materials
towards this age group, as we offer a unique holiday package to a destination which has
plenty on offer.
There is a growing trend for consumers to want to connect with local people while on
holiday, and 30% of luxury travellers would be willing to pay extra for a local tour guide
at the destination (Mintel, 2015). At Bodega de Mendoza, the cost of a local tour guide
is included in the price of our package holiday. This allows each customer to experience
an authentic holiday with the local knowledge of the destination, without incurring any
additional costs.
Furthermore, generation Y customers are more connected with social media and
consider it to be an essential component for brands. The majority of generation Y
customers also suggest that they would be more loyal to brands which engage with
them through social networks (Forbes, 2015). They are looking for a personalised
experience and the brands which offer this type of service are more likely to receive the
custom from this target market. Our company has social media accounts for Facebook,
Instagram, and Twitter and we are looking to reach out to our followers and engage
with them. By offering a personalised service from the moment customers are
considering booking a holiday with us, through to customers returning from their
holiday, we will build strong connections and create loyal customers by doing so.

3.6 MARKETING AND PROMOTIONAL STRATEGY
The main marketing framework that Bodega de Mendoza will be using to connect with
our target market and manage our sales will be the marketing theory of 7 P’s (Marketing
Mix: Price, Promotion, Product, People, Process, Place and Physical Evidence).
Product
The products and services offered by Bodega de Mendoza will be a luxury package
holiday of wine, culture, and food within Mendoza, Argentina. This package tour will be
offering a high quality and personalized tour exclusively for couples with no kids
(DINKs), and groups of individuals aged 30+. The package tour consists of flights to and
from Mendoza, high-end accommodation (but locally run and owned by Argentinian),
transfers to and from the airport (accompanied by one of our team), seven-days
excursions around Mendoza, and travel insurance (this will be an optional product that
we offer to our customers, however, it is a requirement that customers have a travel
insurance policy before travelling to Argentina). Within the next five years, we are
planning on expanding and merging our target markets and the products and services
that we are offering to more than one market. We are also considering opening a store
in the UK in high populated areas (offering different types of package tours) for
example, London.
Price
As we are a tour operator offering luxury package tours, our prices are set at that
standard. The transfers to and from the airport are provided by our company, as this will
be a privately owned minibus, the cost will be included in the package deal. The price of
the accommodation and breakfast will also vary according to low and high season cost a
minimum of £…….. The minimum total for the package holiday per person is £3,000.
This price does not include additional or extra costs (for example travel insurance and
the type of room they book). The dinner or lunch in the hotel will also cost extra
depending on the chosen night (some dinners will be included in the price depending
on the day of the tour). Deposit per couple will be £2000 which is 33.33% of the total
price. This will be non-refundable from 30 days before the departure date if they decide
to cancel the holiday.
Place

Our company will be operating as E-commerce because we do not want to have a travel
agency. However, our company will have an online website, in which all customers from
different parts of the country will have access to. Also, on our online website customers
will find contact details for email and telephone.
Promotion
In order to communicate with our potential customers, our company has decided to
create a website. The website will help us demonstrate to our customers the message,
products, and services that we offer. We chose to create a website because it can be
updated more easily and quickly, whilst also being more cost-effective, convenient and
allowing sales to be processed 24/7. It is more credible and flexible compared to
brochures, where the information is fixed once it has been printed (Doguilindigital.com,
2016). Since there are a massive growth and trend to use social media, our company
have agreed to join Facebook, Twitter, and Instagram to enable customers to gain an
awareness of our new company. The Facebook page is where we going to put our latest
deals and offers. This page also has a link to our company website so that our potential
customers can look further at the products and services that we offer. Also, customers
are able to send messages to us if they have any questions and enquiries through
Facebook and do not have sufficient time for a phone call. On our Instagram page, we
are going to post photos and information of the products and services that we are
offering, as well as the daily deals and offers. Using social media is essential for our
business and is cost-effective as it is either free or cheap to use. Also, this is effective for
our target market which is the Baby Boomers and generation Y (DINKs). Furthermore,
this will help us to gain a larger market share as consumers will share and like our page,
they will also able to re-tweet online increasing awareness to the target market. We are
also considering making a travel blog to help us promote the products and services we
are offering.
People
The five partners who equally own the business will be the people who are involved in
decision making and building a development of the organization. Also, they are the
main human resources who run the business. There are specific roles that have been
given out to each of the members such as finance, law (legislation), business, operations,
and marketing. All the members will be responsible for the decisions within their role,
however, other partners will be on hand to help if needed. The organization will be
hiring a local Argentinian, which role is to be the local tour guide and driver, this
employee will work all year round for our company. The company will be using the initial
customers to be part of the advocate marketing strategy. The company will ask them to

describe or blog/give reviews of their experiences whilst they are in Mendoza. The blog
will be posted on the company website or social media (such as: Facebook, Instagram
and twitter).
Process
Our company is aiming to provide the best customer service to keep the consumers
satisfaction high. We planned to use a user-friendly company website with access to our
email address, telephone number and social media links (such as Facebook, Instagram
and twitter), so customers can contact us when they have enquiries about the holiday
and when they decide to book the package tour. They will not be able to book the
package holiday on the website because we prefer to be contacted via telephone, this is
done to give that feeling of providing a more personalized process when booking and
to build the trust between us and our customers. Also to give a reassurance that they
are buying their holiday to a reputable and ‘authentic’ tour operator. This also welcomes
the opportunity for repeat business in the future. When the customers contacted us via
email, we will make sure that we respond within 24-48 hours. Customers can have the
choice if they want to receive emails or alerts about the special offers and latest deals on
holiday that we provide. For the complaints, there will be a voice mail box that they
could contact past the operation hours, when this is set up there will be no recorded
message to avoid the hassle of waiting to speak to somebody.
Physical Evidence
Our company will not have any designed brochure or leaflets as all the advertising will
be done online. However, customers will receive emails with the attachments of fully
detailed itineraries or a short video clip of the excursions that they are going to be
doing in Mendoza. Also, we will ask for some feedback from our previous customers to
develop our reference materials. The testimonials will be then put onto our website so
our potential customers can see these. This will help them purchase our products and
services with confidence as the previous customer’s feedbacks and views do not come
from within our company. Furthermore, this will add an element of authenticity to our
website and show that we are providing a high customer service.

4 BASIC OPERATIONS
4.1 BUSINESS PARTNERS
Bodega De Mendoza is structured by five partners. Each partner specialises in different
sectors of the organisation ensuring that the business is operating successfully and
efficiently.
The marketing manager is (Ninia Roscoe) in charge of all the marketing and
promotional activity of the business. The marketing manager will be in charge of how
the business is advertised to attract our potential target audience. The marketing
manager will also keep up to date with market changes and trends and ensure that we
are keeping up with our competitors and up to date with the needs of our clients.
The legal manager is (Giulia Giovagnoli) in charge of all the legal requirements of the
business and to ensure that the business is operating within the laws in both the UK and
in Argentina. The legal structure of the organisation is essential and it is important that
issues such as global impacts and internal impacts are assessed and fully complied with.
The finance manager (Jaeeun Lee) is in charge of all the financial documents and issues
making sure that all of the financial segments are dealt with and are up to date. This
manager is also in charge of providing the rest of the managers, with financial support
and the overall budgeting of the organisation.
The business manager (Nicola Pearce) is in charge of the overall business side of Bodega
De Mendoza. The business manager is in charge of dealing with all the partnership
agreements and the mission, aims, and objectives of the organisation. The business
manager is also in charge of communications between all of the partners, shareholders
and with the host community in Mendoza and Manchester.
The operations manager (Anna Rueansom) is in charge of the company’s operations and
the main issues and all the employment. The operations manager will also be in charge
of how different sectors of the organisation will be dealt with and overlook the main
sectors of each manager to ensure that the business of the organisation is running
smoothly.

4.2 OPERATING PROCEDURES
Bodega de Mendoza is a small and medium sized travel company and its structure is
categorised into five different departments: Business, Finance, Marketing, Operation,
and Legal. The company provided a risk assessment for each department to make sure
that they pursue same aims and purposes as a team. Each department operates
different performances which are:
Business department
Focuses on employing new staffs and provides an overall business plan for them such as
employee orientation, corrective action and discipline and performance review etc.
Additionally, it manages to create job and company description.
Finance department
Controls overall travel budgets for luxury wine tourism in Mendoza, Argentina. Each
department will manage their own costs however, the finance department has an
authority to control and finalise the budgets of the tour products. Also in charge of
billing and collections process; maximise cash flow while meeting all payment deadlines
Marketing department
Manages sales such as promotion and advertisement of Bodega de Mendoza’s tour
package products for the customers by creating online websites and social media
through external communications. Additionally, the marketing department is
responsible for customer service which engages with acknowledgement and resolution
of customer’s complaints, comments, and suggestions for our company and tours.
Operation department
Operation department deals with productions, equipment maintenance, and new
employee training. For example, as soon as business department hires new employees,
operation department trains them such as health and safety, guidelines of emergency
and basic guide training programme.

Legal department
Ensures privacy issues of the company and be aware of various regulations in the
destination for the company, customers: an explicit privacy policy is required. Also, legal
department should protect customer’s profile and specify what information they will
collect, the reasons why they collecting it, how it will be used, and how long the
company will keep the information on file.
4.3 MONITORING STAFF PERFORMANCES
Monitoring Staff Performances are necessary for evaluating employees’ achievements
and assess whether their performance influence to the company or not. Also, their
satisfaction of working conditions in the company.
Bodega de Mendoza sets an evaluating programme for employees to identify how they
are doing in the company. By assessing the staff’s performances, it can improve
employee’s communication and interaction skills within the company. Also, the
company has to care about the employees’ welfare whilst improving and developing the
company’s reputation.
4.4 HEALTH AND SAFETY
As health and safety are one of the most crucial and fundamental elements for
employees in the company, Bodega de Mendoza provides health and safety training for
the employees. For example, basic guide training programme and emergency training
for the tour guides which they should be aware of in Mendoza, Argentina. Also, the
company will check their awareness of the health and safety issues monthly to improve
their achievements.
In addition, Bodega de Mendoza will be produce two separate risk and accident record
books for both the employees and the customers.
4.5 COST CONTROL
Bodega de Mendoza controls the budget mainly within the finance department,
however as each department have different budget planning, the cost will be managed

by each department and afterwards, these will be finalised in the finance department.
Moreover, as aforementioned, the finance department administrate billing and
collections process.
5 OPERATIONS AND LOGISTICS
5.1 PRODUCTION
As the product we are offering is not a tangible service, it does not have to be produced
as such. However, there is extensive planning involved to ensure the accommodation
and tours are booked, the flight itineraries of all the customers are up to date and
correct and the package holiday operates as planned. The company will not be
producing any brochures for customer use, instead, the holiday information is available
online via the website, Facebook and Instagram accounts. Customers are also
encouraged to email or telephone Bodega de Mendoza to make an enquiry and book
their holiday. This holiday package is only available to customers booking in couples,
due to the nature of the holiday and the planned activities in Mendoza. A deposit of
£1000 per person is required at the time of booking, and as customers will be booking
the holiday in couples this total deposit required per couple is £2000. The remaining
£3999 per couple for the package holiday will be required to be paid one month before
the departure date.
5.2 DELIVERING TO CUSTOMERS
The only items which will need to be delivered to our customers is a copy of the
itinerary, booking confirmations and tickets. As these documents can be delivered with
only a minimal cost to the company for the envelope and stamp, the customers will not
be charged for this service. The postage cost will be included in the cost of the holiday.
5.3 PAYMENT
Customers can pay for the holiday by credit card, debit card or cheque. Payments will
not be able to be made by cash as the company does not have premises which
customers are able to visit in person and posting large sums of cash to the business
premises is not a secure method of payment. The company has chosen to use ‘Payline’

as the merchant service provider in order to process credit and debit card payments.
This service provider offers a small monthly payment fee and small charges per
transaction whilst providing a simple and effective method of payment to our
customers. When outlining our expenses in the cash flow forecast we have also
calculated the cost of using an accountant each month to ensure our bookkeeping is
completed correctly.
5.4 SUPPLIERS
Our suppliers include the accommodation which our customers will be using in
Argentina, and the wineries and other components of the tour. These suppliers will be
paid within 30 days of booking the product/ service. This is to ensure sufficient funds are
available in the business bank account as the company is a start-up business.
5.5 PREMISES
The company premises are to be based in Manchester. This location was chosen as the
company base because it has a vibrant and large city centre with many attractions and
places of interest to visit. Manchester also has many upmarket wine bars and
restaurants, and as the nature of our business is to offer luxury wine and culture tours in
Argentina, we decided that the base for our company in the UK should reflect the same
values. Excellent transport links also run throughout the city to enable easy accessibility
for staff members to reach the office. The premises are called Beehive Lofts and offer
space for 65 desks, covering 8,000 so. ft. of floor space. The entirety of this space will
not be exclusive to Bodega de Mendoza, however, the company will have access to a
cluster of 5 desks and computers, and bills are included in the monthly rent with
broadband and insurance. The cost to rent this office space is £250 per month, which is
a competitive price for premises based in Manchester city centre with the facilities
provided. The company has signed up for a 12 months’ contract and so if circumstances
change after the first 12 months of trading and different facilities and office space is
required, there is no obligation to renew the contract and stay within these premises.
However, it is planned that the company will remain within these premises for the first
three years of trading.
5.6 EQUIPMENT

The equipment which will be needed by the company includes five computers, a printer,
and a telephone. The computers are provided at the premises and the price for this is
included in the monthly rent. The company will need to buy a printer and a telephone in
order to operate as a tour operator and to stay in contact with customers and suppliers.
The total cost of a printer and telephone will be £100 and these items are available from
stationary merchants such as ‘Staples’.
5.7 TRANSPORT
Bodega de Mendoza, will not need any transportation vehicles in the UK, as stock such
as stationary can be delivered to the office premises in Manchester. The company is also
not required to meet any customers in person whilst in the UK, as contact with
customers will primarily be via the telephone and email. However, the company will
require a minibus in Argentina to transport customers on the tours and to collect and
drop off customers at the airport at the beginning and end of their holiday with Bodega
de Mendoza. As a start-up business, the decision was made to buy a second-hand
minibus which is still in good condition and ensures it is clean and tidy before our
customers start to use it. The company looked at a range of options before making this
decision such as, renting a minibus for the first year or buying a brand new minibus
however these options were considerably more expensive. After three years of trading,
the company will reconsider its options to buy a new minibus. The tour guide we are
employing in Argentina will also be required to hold a valid driving license as they will
be responsible for driving the vehicle too.
5.8 LEGAL REQUIREMENTS
Insurance
The company will be required to have public liability insurance, employers’ liability
insurance, and premises insurance. The premises insurance is included in the monthly
rent price.
5.9 MANAGEMENT AND STAFF
Bodega de Mendoza has five equal partners: Giulia Giovagnoli, Jaeeun Lee, Nicola
Pearce, Ninia Roscoe and Anna Rueansom. The partners will be working together to

ensure the successful running of the tour operator. A local tour guide will also be
employed in Argentina as they will also be able to offer a unique experience to guests
and provide local knowledge of the best restaurants and wine bars to visit during their
stay. This staff member will also be responsible for driving the minibus, and so will be
with the customers throughout their entire holiday with Bodega de Mendoza. This will
allow the staff member to build a rapport with each individual customer and offer a
personalised service. Accompanying the local tour guide each month will be two of the
company partners. The staff which is sent to Argentina to help out with the tour and
accompany the customers will be rotated every two months, to ensure each member of
staff completes an equal amount of time working in the office in the UK and in
Argentina working away from home. The remaining staff in the UK will be working in the
Manchester office to book new customers onto the tours, arranging business with
suppliers, completing marketing work and ensuring the company finances are up to
date.

6 FINANCIAL SUMMARY
The final price of the product is £2,999.00. This is the based on the cumulated prices
from different business competition. In the price, accommodation, transfers and tours
are included. The duration of the holiday is 10 days, however, the tours only operate for
seven days.
6.1 PRICING STRATEGY
The pricing strategy that Bodega de Mendoza will be using is the Odd Pricing
(Psychological). As based on the theory, this type of pricing strategy has a psychological
impact on customers and it influences their decision making (Holdershaw, 1997).
6.2 PROJECTION OF CUSTOMERS
Figure 11: Projection of Customer
The projection of customers has been predicted over the first three years of the business
operation. The graph presents a steady number of growth of customers increasing as
the business become more established. It also starting to show a customer loyalty as the
number of the customer is gradually increasing which build up the product recognition
40
42
44
46
48
50
52
54
AUG
'17
OCT
'17
DEC
'17
FEB
'18
APR
'18
JUN
'18
AUG
'18
OCT
'18
DEC
'18
FEB
'19
APR
'19
JUN
'19
AUG
'19
OCT
'19
DEC
'19
Projection of Customers

within the industry. Obviously, because the business is just starting to recognize the
intake of customers will be slow as the demand of the products often based on the peak
and low season.
6.3 EXPENSES COST BREAKDOWN
Variable costs Fixed costs
Flight fees
£500 - £1600
(When the tour starts 2 staff members will
be flying out every 2 months)
Minibus
£10,223.66
Mini bus taxes
£999.00
Accommodation fees in Argentina for
customers
£700.00 per person
Staff wages
YR 1: £5,987.50 per month
YR 2: £6,840.63 per month (15% increase for five
partners)
YR 3: £8,148.75 per month (20% increase for five
partners)
Tour guide wages
£300 per month
Staff training
£89.70 (Jan, April, July, Oct)
Tour costs (entrance fee, cooking class, and
wine tasting etc.)
£1,255 per person
TOMS VAT (20% of sales each month) £8,800 - £29,595
per month (YR 1)
Petrol
£250 - £500 per month
Premises (rented every month - office/ bills included)
£250
Marketing campaign fees
£300 - £500 per month
Insurance (Public Liability insurance, Employers Liability
insurance, and Premises insurance)
£984.51 per year

Table 5: Expenses Cost Breakdown
Repairs and maintenance fees
£500 every six months
Loan Interest
£767.33 per month (to be repaid over a 3 year period)
Printing and postage
£20 - £50 per month
Banking service fees
£0.00 (for the first 18 months, £40 per month after)
Health and safety training fees for
employees
£14.95
ABTA Membership
£2855
Booking system software
£41.17 per month (once bookings begin to be taken in
May YR 1)
Professional fees (Accountant)
£78 per month
Stationery
£50-£200
Credit/ debit card processing fees
£15.60 (once bookings begin to be taken in May YR 1)
Telephone (BT installation fee + line rental)
£354.28

6.4 CASH FLOW
Figure 12: Cash Flow
6.5 PROFIT AND LOSS
£0.00
£1,000,000.00
£2,000,000.00
£3,000,000.00
£4,000,000.00
£5,000,000.00
£6,000,000.00
£7,000,000.00
Yr 1/17 Yr 2/18 Yr 3/19
Cash Flow Forecast
Total Income Total Expenditure Net Cash Flow Bank Balance

Figure 13: Profit and Loss
6.6 BREAKEVEN
Figure 14: Breakeven
£0.00
£500,000.00
£1,000,000.00
£1,500,000.00
£2,000,000.00
Yr 1/17 Yr 2/18 Yr 3/19
Profit and Loss
Sales Total Expenditure Gross Proft Net Profit
0
100000
200000
300000
400000
500000
600000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Break-Even
Number of Travellers Fixed costs Variable costs
Total Costs Total Sales Profit/Loss
Breakeven

7 LEGALITIES
Setting up Bodega De Mendoza as a new business it is essential that you ensure that the
organisation complies with all UK and Argentinian Laws. Setting the company up as a
Private Limited Company it is important to understand the risks and benefits and this
then creates the legal structure and the business is also able to register for tax and start
trading.
This includes:
- the amount of financial risk you’re taking on the way you’ll need to pay tax, and
report to HM Revenue and Customs (HMRC), and Companies House for limited
companies and some types of partnership how much control you have over how
your business is run
The GOV website (2016), states how Employing people also comes with complications as
when you employ new employees it is essential to ensure that the business can deal
with the specific skills including pay, tax, and insurance to cover all legal responsibilities
this also includes registering as an employer with HMRC. Other responsibilities include
having insurance for the business and finding an authorised insurer which is registered
with the British Insurance Brokers (BIBA). There is also a need to have various different
licenses and permits and this mostly depends on the nature of the business such as the
advertising permits and accountant fees. Accountants help with financial advice and with
the possible issues of managing growth and ensuring that your company is growing and
expanding as you would expect.
Overview of requirements of Bodega de Mendoza
To set up a private limited company you need to register with Companies House. This is
known as ‘incorporation’. You need:
a company name - there are rules on what it can and can’t include
an address for the company
at least one director
at least one shareholder

the agreement of all initial shareholders (‘subscribers’) to create the company -
known as a ‘memorandum of association’
details of the company’s shares and the rights attached to them - known as a
‘statement of capital’
written rules about how the company is run - known as ‘articles of association’
(GOV, 2016).
Travel Gov (2016) states some important facts on rules of regulations when visiting
Argentina. U.S Embassy Buenos Aires states:
Passports must be valid at time of entry
One passport page must be blank for stamp at point of entry
There are no current restrictions for entry in 2016
A tourist visa is required if the tourist wishes to stay longer than 90 days
and there is a £160 reciprocity fee to pay at point of entry
No vaccinations are required
7.1 FINANCIAL PROTECTION
Financial Protection is essential for an organisation like Bodega De Mendoza and
ensuring that the company is under the correct regulations ensures customer financial
protection. Mercator Enterprises Ltd (2016) is a fully regulated, ATOL- protected for UK
tour operators. This can be done by certain protections such as ATOL bonding, Financial
Failure Insurance, ABTA membership, LATA membership. In accordance with “The
package Travel, Package tours regulations 1992”. Clients booking without flights
included will be declared on a monthly basis to Travel and General Insurance Services
Limited and calculated depending on the amount of clients attending the tours
(Argentina Revealed, 2016).
Financial Protection
Is the right of protection of personal data which is stated in section 43 of the Argentine
National Constitution? Current legal framework of the Argentine Data Protection
Regulations (ADPR) is made up of the Constitution and the:

Personal Data Protection Law No. 25,326 (PDPL).
Regulatory Decree of the PDPL No. 1558/2001 (DP Decree).
"Do Not Call" National Registry Law No. 26,951; on the possibility of the data owner to
opt-out of marketing and/or advertising campaigns carried out by telephone. Provisions
issued by the National Directorate for Personal Data Protection (NDPDP) (for example,
Provision NDPDP 4/2009).
7.2 PUBLIC LIABILITY INSURANCE
Public Liability Insurance is a compulsory form of cover in Argentina and it protects from
claims for negligence, death, injury and loss or damage to a property. It will also protect
against economic of financial loss. It is essential as it protects your business and it is
used as a fundamental protection and management of the business in Argentina.
Setting up a business in Argentina as a foreign owner you are liable for infractions,
accidents, and disasters which are not the same as the United Kingdom (Start-up
Overseas, 2016). Public liability insurance includes regulation 15 which has proper
provisions of a consumer contract, liability for supplier’s negligence and tour operations
liability insurance policy.
7.3 CUSTOMER PROTECTION
A customer with Argentina Revealed provides all of the below details. “The scheme is
arranged by ABTA and administered independently. It is a simple and inexpensive
method of arbitration on documents alone with restricted liability on you for costs. The
upper limit on claims is £5,000 per person and £25,000 per booking form. The scheme
doesn’t apply to claims which are solely in respect of physical injury or illness or their
consequences. It can, however, deal with claims which include an element of minor
injury or illness subject to a limit of £1,500 on the amount the arbitrator can award per
person in respect of this element. Your request for arbitration must be received by ABTA
within eighteen months of the date of return from holiday. For injury and illness claims,
you can request the ABTA Mediation Procedure and we have the option to agree to
mediation” (Argentina Revealed, 2016).
7.4 HEALTH AND SAFETY

Are imperative to a travel organisation as there are many situations which can cause
potential safety issues (Travlaw, 2016). Ensuring that Bodega De Mendoza has the
specific audits which help the organisation ensure that it has the correct legal liability as
developed by the Corporate Manslaughter Act, the package Travel Regulations, and the
case law which ensure that the organisation's health and safety policies and current
procedures (Travlaw, 2016).
7.5 ABTA (2016)
Works with a code of conduct which ensures that clients can expect a high code of
conduct and that the organisations protect you financially. ABTA supports the
organisation in the unlikely event that Bodega De Mendoza goes out of business, ABTA
also protects hotels and other tour operator segments.

8 PRINCIPAL RISKS AND PROBLEMS
Risks Likelihood Solution
Plane crash and Death Very Low In the unlikely event of
this happening, ensure
that the correct
measurements are in
place to deal with fees
and getting the body
back to the UK. Also
contacting family and
friends for any serious
incidents.
Lose of passport Low Ensure guests are aware
of the implications
when losing a passport,
such as visiting the
Embassy and ensure
that the passport is
covered by the
insurance.
Illness from food poisoning/
food allergies
Medium Have the correct
procedures in place
when guests are feeling
unwell. Contagious
illnesses need to be
dealt with as soon as
guests show symptoms.
Ensure that the guests’
insurance covers all
illness issues and that
guests are aware of
vaccinations before
travelling to Argentina.

Also, ensure that one
member of the Bodega
de Mendoza team is
trained in Health and
safety as well as being
aware of illnesses in the
country.
Road accident. Low Make sure every single
guest has insurance
covering accidents.
Road journey: risk of travel
sickness.
Low Bring plastic sick bags
and ensure that the
guests have already
taken precautions as to
sickness if they are
aware that they have
these issues.
Mugging/Theft or personal
belongings.
Low Make sure that all
valuables and important
documents belong to
guests are covered by
the insurance and in a
safe place at all times.
Weather conditions when
visiting the Wineries and
other outdoor activities.
Medium (uncontrolled variable
also dependant on the time of the
year)
Specify the correct
clothing for the
activities and ensure
that all guests are
dressed appropriately
for all excursions. Do
not participate in any
tours if it is unsafe and
ensure than another
activity can take place if
an excursion is
cancelled or rearranged.
Table 6: Risks and Problems

APPENDICES
A. FUTURE PROJECTIONS
1 Year Projections:
To create links with the local businesses and expand the company by hosting a
local event to make the public more aware of our organisation.
Offer more choice of activities for customers such as visiting Mendoza Zoo, boat
tours, and water rafting.
Raise the wages for the staffs
3 Year Projections:
Expand the company by providing more options for the location tour such as
having a tour in Buenos Aires as well as being able to provide flights and
accommodation packages to customers.
5 Year Projections:
To gain more profit and have more branches in the UK and employ new staffs in
the UK as well as in Argentina.
B. ASSUMPTIONS
Product or Service
The company has undertaken market research to ensure the product and service on
offer are in demand. Wine tourism is a growing form of tourism and as the competition
analysis and SWOT analysis show, the service we offer is unique and personalised to
each customer, which will allow us to gain a ___% of the overall market share for wine
tourism in Mendoza.
Sufficient Customer Base

Advertising online via the company website and social media accounts, allows the
company to gain access to a wider customer base, by not being limited to the physical
surroundings. We have outlined a sufficient marketing budget for the first months of
trading, as the business will need to account for more money and time spent initially to
get the business started, and also to allow people to hear about the company and the
products on offer.
Profitability
The finance manager has created a cash flow forecast for the first 3 years of trading to
demonstrate the breakeven point in the first year and when the company begins to
make a profit. The company has been realistic when budgeting for all of the expenses,
to ensure the business is viable and the correct pricing strategy was chosen for our
business. Profit and Loss accounts also aid in demonstrating the financial capabilities of
the company.
Management Expertise
The company has hired managers for the following areas: business, finance, marketing,
operations and legal. The hired people have the necessary skills and expertise required
for their job role. This has been thoroughly demonstrated by their previous job roles and
university education. Employing people with expert knowledge in all five of these areas
ensures that the business is able to operate effectively on a day-to-day business.
Adequate Capitalisation
The company has shown in the cash flow forecast that it will start to make a profit by
May, this is the fifth month of trading in the first year and the total profit for year 1 is
£92,543.96. A £25,000 loan was agreed by the bank and it will be repaid in instalments
each month, taking a total of three years to be repaid in full plus interest. As each
partner agreed to put forward £3000 as an initial investment, the total loan needed from
the bank was reduced considerably allowing the company the necessary time to repay
the loan in smaller instalments.

C. PRODUCT LITERATURE
Website- WIX
Bodega de Mendoza have created a website which is used to book the online packages.
The website features various pages which include the Itinerary and Tours as well as
showing the clients the accommodation which they can stay in and the rooms. The
website is easy to use and provides clients with a wide range of information on the
whole holiday as well as the destination. Statistics now prove that over 16 million
businesses use website pages for businesses. The use of websites for a business
increases the market share and attracts a wider range of customers (Noyes, 2016).

Social Media
Bodega De Mendoza also have various
different social media sites which allow
existing and potential customers to contact
the organisation and ask important questions.
Social media is used as an informal way of
communication to ensure that clients are
happy with the product and they can leave
feedback for future clients. Worldwide
statistics show that there are over 1.59 billion
monthly active Facebook users which are also
a 14% increase year on year. Facebook has
become far too big to ignore and business
now receives 55% more web traffic as many
potential customers now look on the internet
for businesses to also compare prices (Kagan,
2016). A number of marketers also say that
Facebook is now an essential part of any
business and it is critical as it has increased
revenue by 83% in just two years, it is no
longer seen as experimental because of the
proved increase in sales (Kagan, 2016).
Instagram
Bodega de Mendoza has also created an
Instagram page which is used to show
pictures of customers enjoying the tours and
the accommodation to encourage and attract
potential customers to future bookings.
Instagram (2016) has been described as a
highly engaged global community which now
boasts a community of 400 million active
accounts (Kagan, 2016). The Instagram society is based on visual inspiration and the
simple design of the site encourages all ages to get involved in the Instagram
advertising. The visual languages used by Instagram allows businesses to inspire people
to view business and marketing campaigns in a different way (Kagan, 2016).

D. SPECIFIC MARKET RESEARCH METHODS AND
FINDINGS
Bodega de Mendoza offers luxury food, wine, and cultural tour packages particularly
targeted couples. There are various findings in terms of the wine tourism trends both in
the UK and Argentina. We looked at several reports: ProsperAr, Invest in Argentina and
Bibendum etc. Through these reports, we discovered the main findings with regards to
the current market size and trend of the wine tourism, UK people’s perspectives in terms
of the wine tourism, and also the current wine trading between the UK and the other
winery destinations such as France, Argentina, Spain and New Zealand etc. Additionally,
also focused on researching the wine tourism trend and its reputation in Mendoza,
Argentina.
E. ORGANISATION CHARTS/ROTAS
Year
1
Ninia Giulia Nicola Jaeeun Anna
JAN Conducting
market
research on
our target
markets.
Ensuring all legal
requirements are
met for a start-up
tour operator.
Creating the
website and
social media
accounts.
Getting prices
and quotes for
the tour.
Ensuring staff is
trained and
knowledgeable
on wine tourism
in Argentina.
FEB Fly to
Argentina
(checking
suppliers and
accommodati
on quality).
Communicating
with suppliers in
Mendoza and the
host community.
Managing
payments and
financial
requirements.

MAR Updating
social media
and the
website.
Keeping up
to date with
competitors
and market
trends.
Communicating
with suppliers in
Mendoza and the
host community.
APR Managing the
marketing
campaign.
Fly to Argentina
(checking
suppliers and
accommodation
are ready for an
intake of
customers).
Conducting staff
training sessions
MAY Keeping up
to date with
competitors
and market
trends.
Managing
payments and
financial
requirements.
Taking bookings
for the first tour.
JUN Taking bookings
for the tour
operator and
communicating
with the host
community in
Mendoza.
Managing
payments and
financial
requirements.
Taking bookings
for the tour
operator.
JUL Managing the
marketing
campaign.
Managing
payments and
financial
requirements.
Fly to Argentina
to be with the
customers.
Fly to
Argentina to
be with the
customers.
Taking bookings
for the tour
operator and
conducting staff
training sessions.

AUG Updating
social media
and the
website.
Keeping up
to date with
competitors
and market
trends.
Managing
payments and
financial
requirements.
In Argentina with
the customers on
the tours.
In Argentina
with the
customers on
the tours.
Taking bookings
for the tour
operator.
SEP Fly to
Argentina to
be with the
customers.
Ensuring all legal
requirements are
up to date.
Taking bookings
for the tour
operator
Managing
payments and
financial
requirements.
Fly to Argentina
to be with the
customers.
OCT In Argentina
with the
customers on
the tours.
Taking bookings
for the tour
operator and
ensuring health
and safety training
for employees is
complete.
Managing the
marketing
campaign
Managing
payments and
financial
requirements.
In Argentina with
the customers on
the tours.
NOV Updating
social media
and the
website.
Fly to Argentina to
be with the
customers.
Fly to Argentina
to be with the
customers.
Managing
payments and
financial
requirements.
Taking bookings
for the tour
operator
DEC Keeping up
to date with
competitors
and market
trends.
In Argentina with
the customers on
the tours.
In Argentina with
the customers on
the tours.
Managing
payments and
financial
requirements.
Taking bookings
for the tour
operator

F. MINUTES OF ALL THE MEETINGS
“The LUXURY taste”
Team Agreement Contract
Behavior and Expectations
Everyone needs to be at all meetings. If you are not able to make it to a meeting, be
sure to tell your team members ahead of time with appropriate contact information.
Give it your all, full input and practice where required.
Help your other team members if they are struggling with something.

Team members have the right by consensus to approach a team member who is not
participating and ask them to improve it the possibility may arise that they may leave
the team at his/her loss.
As a member of the team, I agree to meet the following criteria until the
teamwork is complete and all written work is submitted.
1. General
Treat the beliefs and opinions of the other team members with respect.
Demonstrate excellent personal organisational skills and timekeeping.
Have an unbiased relationship within the team.
Communicate effectively with the rest of the team; this includes any problems
with the allocated work or completion of tasks.
Show an understanding of ethical issues relating to the project (University Code
of Conduct and Ethics).
Where agreed costs are incurred they will be shared equally between all
members of the team.
2. Meetings
Attend all team meetings and study sessions. The exemption is with express
permission from three team members (minimum) or through mitigating
circumstances.
o Note: Failure to do so is a direct breach of contract. Personal issues should
be brought to the attention of the module leader.
Attend all team meetings at the agreed time and for the complete duration of the
project. (See 2.1)
Attend the team meetings with a pro-active attitude with the aim of contributing
positively towards the meeting. This requires full commitment and the turning
off of all phones and pagers.
Complete, by agreed deadlines, all allocated work, and action points agreed at
the meeting and report back to the team by the agreed dates. Utilise your Gantt
chart for this.
3. Project Work

Contribute equally towards the project compared with other team members. This
contribution may be in the form of written work or research but must be agreed
as an equal part of other team members.
Complete all tasks to the highest possible standard through the use of primary
and secondary research.
Use a wide variety of research sources.
Aim to develop a deep understanding of the topic area and any specific areas
allocated by the team. Many areas of research undertaken require the team as a
whole to be aware of the input, not just the individual. This is extremely
important with reference to any required presentations.
Present all written work in an appropriate format with full references and to be
aware of the rules and regulations in relation to plagiarism.
Show an understanding and knowledge of the criteria and requirements of the
work being undertaken and if in doubt gain clarification from the module tutor.
With regards to presentations, make an effort to look respectable and be
professional in every respect.
In any communication with an organisation act in a professional manner, as you
are representing the University.
Be honest in details recorded in personal logs and when involved in peer
assessment and self-appraisal. Remember personal logs are confidential
between your tutor and yourself.
4. Grievance Procedure
Think like a good manager, be proactive, avoid going to the grievance stage in
the first place, try and “nip any issues in the bud”
If not possible, raise any grievances that may be held with other team members
during a chaired and minuted meeting.
Have an unbiased attitude to decisions made regarding any grievances
Acknowledge that any single member of the team may raise grievances if a
breach of contract has occurred.
Understand the disciplinary procedure following a breach of contract to be:
STAGE 1 Minutes of meetings must be taken to provide evidence of problems
as they arise and attempts to mediate are developed.

STAGE 2
(or situation
unresolved)
Students will discuss any issues of non-attendance/low performance
within the team and with the person concerned. A verbal warning
should be given.
STAGE 3
(or situation
unresolved)
1st
Written Warning from team and notification to the module leader
STAGE 4
(or situation
unresolved)
2nd
Written Warning Student teams should discuss significant
problems with the module tutor and notify the member of staff when
a written warning is about to be issued to a student who is not
performing. Evidence of non-performance needs to be submitted.
YELLOW CARD issued
STAGE 5
(or situation
unresolved)
If no improvement is made the student team and module leader will
write to the individual concerned outlining the course of action that
they intend to take. Typically, this will be that the student is "sacked"
from the team and has to contact the module leader to explore how
they can complete the activity as an individual. RED CARD issued
In order to issue a warning or to take further action, the rest of the team members must
be in agreement.
In the event of an unreconcilable dispute and somebody has been asked to leave a team
that person, should they feel their exclusion be unjustified, will have recourse to a
tribunal. The tribunal will be made up of students and staff and Chaired by the Module
Leader. The tribunal will hear the case for and against and if reinstatement is not an
option the excluded student will be offered an opportunity to complete the module by
producing a substantial individual assignment. If inadequate individual assignment
submitted a fail maybe recorded. In the event that the document is sufficiently
discerning and detailed the student will be given a PASS mark only.
Where team presentations from 20% or more of the final mark at Level 5-6 they should
normally be moderated by staff and normally recorded on video to facilitate
moderation
Declaration

I have read the attached contractual terms for the completion of this team piece of
work. As a member of the team, I agree to be bound by its terms and conditions.
I understand that the team may take further action if it is perceived that I have been in
breach of this contract.
NAME CONTACT DETAILS SIGNATURE DATE
Ninia Roscoe 07944739606 N.L.R 02/02/16
Giulia Giovagnoli 07534947631 G.D.G 02/02/16
Jaeeun Lee 07526961816 J.L 02/02/16
Nicola Pearce 07780858483 N.P 02/02/16
Anna Rueansom 07561144487 A.W.R 02/02/16

“The LUXURY taste”
Weekly Meeting Rota
Week Chairman Minute Taker
1 Ninia Roscoe Jaeeun Lee
2 Jaeeun Lee Nicola Pearce
3 Nicola Pearce Giulia Giovagnoli
4 Giulia Giovagnoli Anna Rueansom
5 Anna Rueansom Ninia Roscoe
6 Ninia Roscoe Giulia Giovagnoli
7 Giulia Giovagnoli Nicola Pearce
8 Nicola Pearce Jaeeun Lee
9 Jaeeun Lee Anna Rueansom
10 Anna Rueansom Ninia Roscoe
11 Ninia Roscoe Jaeeun Lee

Bodega de Mendoza (Final update)

Bodega de Mendoza (Final update)

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