developing new marketing plan

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United International University
Assignment on
Developing new Service Marketing Plan
And Case Study
Course Title: Services Marketing
Course Code: MKT 4102
Section: I
Submitted to
Muhammad Hasan Al-Mamun
Lecturer
School of Business & Economics
Submitted by
Name ID
Shaima Chowdhury 111141135
Afsana Rahman 111141391
Ferdousi Rahman 111141030
Tarak Aziz 111151416
Md. Rezaul Islam 111142321
Date of Submission: September 17, 2018

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Table of Contents
Executive Summary ………………………………… 1
1.0 MissionStatement
1.1 Sustainability Policy:
……………………................................... 2-3
2.0 Target Market Analysis ……………………………. 3-4
2.1 Positioning:
2.2 Current Market Position
3.0 Objectives …………………………………………… 5
3.1 Marketing Objectives ……………………………5-6
4.0 CompetitorAnalysis:……………………………………6-7
5.0 PEST Analysis:…………………………………………7-8
6.0 SWOT Analysis ………………………………..8-10
6.1 Strengths
6.2 Weakness
6.3 Opportunities
6.4 Threats
6.5 Key Issues
6.6 Key Opportunities
7.0 Developing the service marketing program……………………11-14
8.0 Financial, Budgets and Forecast …………………. 15-20
8.1 Important Assumptions
8.2 Sales Forecast

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8.3 ProjectedFinancialStatements
8.4 BreakevenAnalysis
8.5 ProposedBusiness Ratios
References………………………………………....21

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Executive Summary
The current market is somewhat depressed, due to the economic downturn and restrictions
being made on corporate travel within the Bangladesh. This threat to the critical corporate
sector could be considered as short to medium term, as indications of a return to business
travel are observed. Therefore, the group has decided to expand its operations in the
international market and continue to focus on delivering an exemplary business service, at
affordable rates, in order to develop the customer relationship beyond the Bangladesh
borders. After reviewing different scenarios, the group management team has decided to
target Gazipur city to develop its first international operations which will be named The Rose
garden resort.
The Rose garden resort will be a partnership limited liability business company in which the
major owner will have unlimited liability. The company will provide the facilities to run a
(15-20 rooms) hotel, conference rooms, restaurant and SPA among other services such as
business center, laundry, and others. The hotel will be convenient located to have direct
access to Gazipur City.
Differentiating the kind of service that will be offered, from that of the competition, is an
important factor to success. It will not only build The rose garden Resort as a recognized
brand in the market place, but also will be an important fact to attract frequent business
travelers, who require a higher level of personal service and recognition.
The Rose garden resort will target revenues about $1.2 million in the first year of operation
with a net profit after tax of $350 thousands (American Dollars). The estimated year to year
revenue growth is 4% which is aligned not only with the local economy growth projection
but also with the forecast growth for the hotel industry in this particular market place.
The company will require an initial funding of $1.5 million in order to cover the capital
investment for land, building and equipment. The company will target profitability since year
one; although, net cash will remain a remarkable point of concern until the initial funding is
paid back to the investors. Gross margin is expected to hit above 75% in year one which
could be considered in line with the local industry benchmark.
Our marketing strategy will allow us to communicate the brand values, develop close
working relationships with our customers and suppliers and to identify the needs of our
guests in an effective manner. Continued differentiation and growth are two goals we have
set for ourselves. Growth will take place by targeting new areas of business within both local
and national communities.

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Service Marketing Plan of “ROSE GARDEN RESORT“
1.0 MissionStatement:
The corebusiness activity of the Rose Garden Resort would be to:
 Rose Garden Resort Offer and provide a high quality tourism experience for our clients
and it will be dedicated to provide its guests with the highest quality of service in a
luxury still modest environment. It will value the place in the community within it
will operate and will work to develop those relationships and to respect and protect
the environment.
 Rose Garden Resort will continuously strive to create value for both owners and
investors while honoring the brand values and encouraging it staff to develop
themselves in an environment of trust, loyalty, caring, and team work
 Operate in a sustainable and financially profitable manner so that our shareholders
receive maximum dividends.
1.1 Sustainability Policy:
The sustainable policy of rose garden -tourism resort includes the following:
- The purchasing policy will involve buying certified woodwhile at thesame
time identifying substitutes for uncertified tropical wood.
- Using 100% recycled paper for all printing material.
- Buying organic fruits and vegetables for the restaurant’s kitchen.
- Reducing and limiting the use ofpesticides andother chemicals onpremises.
- Using fair trade cotton for its bed-spreads, pillow- cases, curtains, towels etc.
- Sharing our values with ourbusiness partnerssothat theyworkclosely with the
resort in regards to sustainability as well as the awareness of sustainable
development challenges.
- The resort will encourage partners to embed sustainable practices into their daily
operations.
- Carrying out sustainability audits and producing sustainable development reports at the
end of the year.
- Reducing the material used in packaging.
- Buying supplies from local producers which will limit transport related

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pollution since supplies would no longer bearriving from Darwin.
- Finding alternate sources of energy to provide electricity to the resort. For example,
installing solar panels and wind turbines.
- Generating at least 70% energy from renewable sources of energy.
- Building designated smoking areas and declaring all public areas to be smoke-free
zones.
- Forming in-house waste reduction and pollution prevention teams.
- Installing Hybrid engines in buses part of the shuttle services and other transport
vehicles.
- Using energy-saver light bulbs for lighting purposes
- Installing sewage water treatment plants to reuse sewage water for watering plants and
other vegetation.
- Maintaining anorganic garden and orchard for grocery supplies which again reduces
transport emissions.
- Carrying out community welfare activities such as providing employment
opportunities to the indigenous community, training, entrepreneurial advice,
inaugurating schools and installing water treatment plants in indigenous
settlements, reinvesting part of resort income on community welfare, conducting
sustainability awareness programs for staff members and for the general
community.
- Conserving the natural and wild life habitat prior toand after the resorthas opened.
- The resort offers fishing asoneofits niche experience. Itwould beensured that these
2.0 Target Market:
Since the rose garden experiences and services provided by the resort are in a sense unique and
exclusive, they are not for the main stream customers, but for a particular target market
and would be classified as a market niche. The target market strategy would be concentrated
marketing where by one segment is selected from the market and catered to as the target
segment. The resort’s target market includes
The resort comprising 15-20 luxury guest rooms and specializing in servicing tourists
and corporate clients.
It serves the business community, and visiting business travelers, in the city of gazipur
Our key clients are contracted corporate clients originating from both international and
domestic markets India, Dhaka, china. Key to our business success is the level of customer
loyalty and repeat business we will receive on an annual basis.
We will offer our guests the most up-to-date technical business facilities, both inside the
rooms and within the hotel's conference facilities.

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Also, we will offer excellent SPA facilities for relaxation and body treatments. Our
guests feel that they can conduct their business from within a less austere atmosphere
than can be experienced in our competitive properties, where there is less personal
recognition. They will appreciate being called by name when they arrive, and having the
staff remembers their specific requirements, time and again.
This is key in developing the relationship beyond an initial stay and evidences our added
value in relation to competitive properties in the vicinity.
Table :Target Market Forecast
Potential
Customers
Growth
(%)
2018 2019 2020 2021 2022 CAGR
Dhaka
gazipur
3.0% 186,966 192,575 198,352 204,303 210,432 3.0%
china 5.0% 122,127 128,233 134,645 141,377 148,446 5.0%
India 7.0% 11,648 12,463 13,336 14,269 15,268 7.0%
Local 2.0% 10,000 10,200 10,404 10,612 10,824 2.0%
Total 3.9% 330,741 343,472 356,737 370,561 384,970 3.9%
2.1 Positioning:
The positioning statement of a business enables customers to develop an image, impression or
perception about the products or services offered by that business relative to their perception of
other competing brands in the same category. It also helps to differentiate a product from its
competitors. Once a positioning has been established, the marketing mix is then designed to suit
tothe needs ofthetarget market segments. The positioning statement of the resort is as follows:
Rose garden Resort- “Experience nature and culture with a class”
Rose garden resort provides an exceptional hospitality experience to its customers, in spectacular
natural surroundings, by delivering quality service in an atmosphere of comfort, openness
and friendship as wellas the opportunity to interact with a culture that is unique and unchanged
since centuries. Besides the above mentioned niche experiences, it also provides luxury and
recreational facilities that are offered at a standard 5-star resort. The resort will comply with
the principles of sustainability and environmental responsibility as outlined in its sustainability
policy.

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2.2 Current Market Position: Tourism is the Greentech Resort 's largest employing
industry, providing jobs for 14,000people (3.0%ofemployment). It promotes economic
growth at local, regional and Territory-wide levels through thecreation ofincome,
employment and investment opportunities. The visitor economyis worthover35.8 bn and is
responsible for 6.3%oftotal economic output. The visitor economy, which is supportedbythe
tourism sector, includes visitors who come for leisure, business events, and corporate travel, to
visit friends and relatives andother purposes.
The rose garden tourism resort would be the first of its kind to be introduced in the
Greentech Resort, since nosuch resortshave beenoperating in theGreentech Resort before.
Itwould bebuilt near theshohag palli park and resort,which attracts alarge number of
visitors every year
3.0 Objectives
Our marketing strategy's objective is to communicate the unique set of products and services that
we will offer to our hotel’s guests. We attempt to direct the focus of our customers to the issues
of quality and value for the money as opposed to simply the bottom line costs associated with
their staying time in the hotel.
Our marketing strategy will allow us to communicate our brand values, develop close working
relationships with our creditors, customers and suppliers and to manage the needs of our guests
in an effective manner. Continued differentiation and growth are two goals we have set for
ourselves. Growth will take place by targeting new areas of business within both local and
international communities.
3.1 Marketing Objectives
• To share our strategic objectives with potential creditors in order to properly fund the initial
capital investment to build the facilities.
• To communicate how loyalty amongst our guests will be developed by providing a positive
hotel experience to them.
• To establish the hotel starts up revenues, profit and growth target goals within the given time
and budget action plan.
Sales:Forthe next 12months, the management at the resort expects to:
- Achieve 10%growth insales ineachquarterwith acombined annual increment of
40% in totalsales.
- Increase the sale of augmented products and services such as souvenirs shops by 25%
at the end of theyear.
- After designing the website and the online booking mechanism, the resort expects
that it will generate 505 of its sales online during the next 12 months.

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4.0 CompetitorAnalysis:
Acompetitive analysis is the analysis of information that is important in nature and is not just
alist of anorganization’s competitors. The goal of a competitive analysis is to identify and
expand upon competitive advantage, which are the benefits that thebusiness canoffer
customers that the competition can’t orwon’t supply. The competitive analysis for the
resort is as follows:
Tourism Rose Garden’s resort’s major competitors are the similar resorts operated by
Greentech Resort’s . However, from amongst the two, tourism Victoria poses a relatively low
level ofthreat ontourism Rose Garden’s market share and customer basedue toits
geographical distance from the rose garden. Therefore, the major competitor left for
further competitive analysis is tourism Greentech Resort’s whose SWOTanalysis is as
follows:
Strengths:
- Most preferred domestic holiday destination for Australians.
- Population growth is driving infrastructure development.
- Greentech Resort’s is anaspirational brand overseas.
- High growth anticipated for international visitors in 2017.
Weaknesses:
- Lack of investment in new serviced accommodation, new product, services and niche
experiences.
- Shortage of skilled workforce.
- Paceofinfrastructure development would not beinline with the growth, which
would have an adverse impact ontourism.
- Significant growth in outbound travel.
Opportunities:
- Low cost air-travel and opportunities toincrease inbound travel.
- New media technology and opportunities to reach customers directly.
- Increased trend of frequent, short-stay trips in the domestic market.
- Increased number of visitors expected from countries with emerging markets
Threats:

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- Increase in oil andfuel prices may inturn increase airfares and fares ofothermeans of
transportation.
- Falling quality of natural resources and attractions .
- Tougher competition from the Asian-Pacific region offering high product quality and
service standards atcheaper prices.
- Adverse impacts ofnatural disasters onthedestination’s appealand perceptions.
5.0 PEST Analysis:
A PEST analysis is an environmental audit tool that takes into consideration factors affecting
the success of thebusiness externally orfrom the external environment. The areas assessed are
physical, economical, socio-cultural andtechnological factors. Examples include political scenario and
stability, interest rates and unemployment, social norms and cultural beliefs and technological
progress. The PEST analysis is asfollows:
Physical: The following physical factors may affect the performance of the resort:
- Government Policies.
- Change ofgovernments.
- Trading policies.
- Pressure groups such as social activists and trade unions.
- Funding, grants and initiatives.
- Wars and conflicts.
Economical: The following economical factors may affect the performance of the resort:
- Situation of the Bangladesh and the global economy and latest economic trends.
- Taxation laws and the level of taxation ongoods and services.
- Seasonal factors.
- Interest and exchange rates,international trade, fiscal and monetary policies.
Social: The following social factors may affect the performance of the resort:
- Lifestyle trends of potential customers.
- Demographics.
- Consumer behaviours and attitudes.
- Media opinions.
- Ethnic religious factors.
- Fashion and rolemodels.
- Major events and influences.
Technological: The following technological factors may affect the performance of the
resort:

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- Innovation potential.
- Global communications.
- Maturity and advancement in technology.
- Technology legislation.
- Research and development funding both privately and publicly.
6.0 SWOT Analysis:
A SWOT assesses theorganization’s strengths and weaknesseswhich areinternal
totheorganization, aswell asopportunities andthreats whichareexternalto the
organization. Completingthe SWOT analysishelps to identify ways to
minimize the effectofweaknesseswithinthe organization while atthesametime
maximizing strengths. A firm will ideally matchits strengths against market
opportunities thatresult fromcompetitor weaknesses or void. Somefactors
taken intoconsiderationwhenpreparing a SWOT analysisareprovision of
financialresources,suppliersanddistributors,currentclient base,pricing levels,
profit marginsand certainuniqueproduct characteristics.TheSWOT analysis for
Tourism rose garden resortis as follows:
6.1 Strengths:
- The resort is situated near GreentechResort,shohag palli resort and
park
- Offers interaction with unique, historical and contemporaryculture,
particularly the indigenous culture.
- Due togeographicaldifferences
- Significant development of infrastructurein the GreentechResort
suchasa new conventioncentre
- Global demand for natural and cultural travel is expected togrow
Tourism Greentech Resort’shasmaintained anactivemarketing programand
developed branding toolstofurtherstrengthenits message, whichisapositive
indicator for the resort
6.2 Weaknesses:
- Lack of diverse and innovative tourism product.

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- Accessibility issues due togeographical isolation andseasonalclosureof
roads.
- Still plentyof roomfordevelopmentalworksuchas more
accommodationfacilities, improvementin servicestandards,etc to
meet the needsof thetourismmarket.
- Consumerdemand is still highly seasonal.
- Theindustry isgeographically dispersed andthereisalackofcritical
massand linkages in tourism networks.
- Challenges still exist incommunicating with the indigenous
communitydue totheir secluded way of life.
- Geographicalanddemographicalfactorsaswellaslackofestablished
businessesstill posehindrances in investment.
- Lackof private investment andindustry dependence ongovernment
for tourism marketing and development.
6.3 Opportunities:
- Growth in experiential travel and increased socialawareness islikely
tocreatea trendtowardsmorefrequentshort-staytripswithfocus on
product qualityand servicestandards.
- Anticipated growth in visitors fromChina, Koreaand India.
- Domestic visitation still growing.
- Introduction oflow-cost aircraft carriers means an increasednumberof
visitors.
- Increasedbusinessand traveler confidencedue to socio-political
stability.
- Increaseduseof internetbycustomerstoplanandbooktheir travel
activities.
6.4 Threats:
- It still faces competitionfor the ‘outback’positioning.
- Geographical immobility oflabour. Workersarenotkeentoworkinremote
areas.
- Climate change canaffectthenatural environment as well as visitor
behaviour.

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- Negative publicity of the GreentechResort destinations reinforced by
media reports which high light issues associated withremote
indigenous communities.
- Poortravelerconfidence as a resultof war,terrorism anddiseaserisks
whichaffect the tourism industry as awhole.
6.5 KeyIssues:FromtheSWOTanalysis, thefollowing key issues wereidentified:
- Consumerdemand is still highly seasonal.
- Challenges in engaging andinteracting with the indigenous community.
- Geographical immobility of labour.
6.6 Key Opportunities: From theSWOT analysis,thefollowing key
opportunities were identified:
- Globaldemand for natural and cultural based travelis anticipated
togrow in the comingyears.
- Rapidgrowthin visitation fromemerging markets suchasChina and
India.
- Introductionof low-cost air-craft
7.0 Developing the service marketing program:
Product: The core productof the rose garden tourism resort would betoprovide its
customers theunique natural and cultural experiences .Itshould be noted that the core
product is aservice and is therefore, intangible.
The actual product: The actual productofthe resortwould betheluxury accommodation it
provides to its customers on site.
The augmentedproduct: This will include the actual product plus anumber ofdifferent
services offered such as trips and tours involving interaction of visitors with the indigenous
people,art,culture, wildlife and birdwatching, fishing aswell assouvenir shopsselling
locally manufactured products.
Since Greentech Resort’s competitors are already providing services of such anaturein
different states aswell asinternationally, the concept of rose garden tourism resortsisnot,
therefore tourism Greentech Resort will capitalize onits competitive edgethat is providing
natural experiences through the shohag palli park and resort and interaction with
indigenous culture, which cannot be found anywhere else.
Place:Inorder tosell its services aswell astheaugmented product,the rose garden tourism
resortwill need tohave premises ofits own. Forthis purpose, tourism Greentech Resort

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purchased a5 acre piece of land from the Government, which will house the resort,
different shopsandtherecreational facilities thatit offers. Itwill contain 400fully furnished
standard rooms, family roomsandluxury suites andwould bea5-starrose garden-tourism
resort.
The resortis situated at adistance of just4miles from the shohag palli park and resort .This
close proximity with a natural and cultural hotspot such as the shohag palli park and resort
is yet another competitive edge of the resort. This is because most of its competitors such
as Dream Square Resort’s resorts are situated quite far from the natural and cultural
destinations that they offer. Moreover,it will also runshuttle bus services fromthe resort to
Uttara Airport, to facilitate themovement ofvisitors tothe resortand tomake the resortas
accessible as it could be.
Furthermore, information centers that advise potential visitors on the most reasonable
means of transportation totake in ordertoreach theresorts would beopened throughout
Bangladesh, under theTourism Greentech Resort brandname, online as well as in
partnership with traveland touroperatorssuchas leading travel agent andUS bangla, both
domestically andinternationally.
Price: Every business needs to set prices for the products or service that it provides. For this
purpose,tourism Greentech Resort devised apricing strategy which will help determine the
prices of the various products and services offered at the resortaswell thedegree of
flexibility in regardstoindividual prices. The pricing strategy will include fares,
discounts, special packagedeals and offers. Although, thefree market mechanism enables
the seller of the product tosell the product atwhatever price they wish to, however, it
would be ensured that pricing levels are ethically correct and competitive at the same
time.
The resort’s pricing policy includes:
- The pricing policy would be devised in such away so that it is affordable for
members of tourism Greentech Resort’s different market segments. For example,
lower rates for backpackers in comparison to relatively higher rates for families.
- Prices would be competitively priced against competitors with focus being on
providing exceptional quality at a price which is affordable for customers and
competitive at the same time.
- Ensuring a high margin, to cover the developmental costs as quickly as they can be
covered and start receiving returns on investments.
- Offering discounts to encourage prompt payment as well as offering discounts on

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bulk buying which in this context would beproviding group/family discounts inthe
form of special package deals and offers.
- Prices would be set up in such a manner which persuades the visitors to lengthen
their stay, as well as come back for a return visit.
Promotion: Promotionis the element within an organization’s marketing mix that is used to
inform and persuade the market regarding the organization’s products and services. Greentech
Resort is awell established and aims at promoting the rosegarden tourism resort in a similar
fashion asit doesfor its otherproductsand experiences. However,it also plans on adopting
promotional tactics used by its competitors aswell as exploit the weaknesses that exist in
those tactics. It will therefore promote the resort through:
- Advertising – print, broadcast, direct mail and the internet.
- Public Relations –media release, media kits, press conferences, media
familiarizations, interviews and speeches.
- Personal Selling –trade and consumer events, sales calls, sales missions and staff
training.
- Sales Promotions – competitions and sales incentives.
As per the competitor analysis, the palace luxury resort and promotes its resorts
particularly through personal selling, attourism exhibitions globally, which helps themto
attract a lot of potential customers. Tourism Greentech Resort adopted asimilar approach
by participating in sikder resort and villas domestically and internationally, representing
themselves by setting up stalls which attracted a lot of customer attention.
Moreover,tourism the palace luxury resort seem rather reluctant topromotethemselves
through public relations or carrying out publicity activities atpublic events such as sporting
events, concerts, festivals etc. This has provided a vacuum which tourism Greentech Resort’s
can fill by promoting the resorts heavily through publicity activities.
It also aims to spend more on its advertising budget to develop an extensive advertising
campaign which in the past had a relatively low budget.
People:It is essential forabusiness tohave astaff which understands thegoals and
objectives of the business and worksin conjunction with themanagement in achieving
those objectives. The rose garden tourism resort can be categorized as alarge business
organization which aims at employing a staff comprising of 500 employees.
Tourism Greentech Resort’s offers training services as part of its accreditation programme and
has several agreements in place with its counter parts regarding exchange of staff. Italso
offers internships and apprenticeships to University and TAFE students who wish to work in the
tourism industry aswell astomembers ofthe indigenous community. It also has the option to
out source the recruitment ofstaff torecruitment agencies such asdigroupl.com during
times of staff shortages andpeakseasons. This means that it hasa large poolof a

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prospective human resource.
Once the recruitment process has been undertaken and staff has been hired, tourism
Greentech Resort’s will ensure that theresort staff under goes apropertraining
programme bythename of “Managing Tourism and Hospitality” .
Priority areas in which staff would be trained are:
- Customer Service.
- Communication skills.
- Dispute and query resolutions.
- Performing under pressure.
- Operational Health and Safety.
- The resorts value, vision and mission statements (Employees need to know as to
what it is that the resort stands for).
Process:Abusiness will cease to operate in theabsence ofbusiness processes and
procedures.They canbedefined asthearteries in ourbodies which pump blood.Inthe
commercial context, they ensure that the operationsof thebusiness flow through smoothly
andefficiently. The resortwill have a numberofprocesses and procedureswhich arelisted
as follows:
- Disciplinary procedures: For example, punctuality, code ofconduct etc.
- Housekeeping procedures: Making sure the resort is clean atall times.
- OHS procedures: Procedures designed to cope up with workplace hazards and
incidents.
- Security procedures: CCTVsurveillance, prevention oftheft, robbery,quarrels etc.
- Customer service procedure: Room service, food and recreation, dealing with
queries.
Physical Evidence: The way in which a business portrays its staff and premises has a significant
impact onhow the customers perceive the business to be in personor whenthey see photos
orvideos of the premises and staff during promotional activities.
The premises have beendesigned to promote the resort asavenue offering luxury, comfort,
healthy entertainment together with therose garden tourism services it provides.Large
partsofthe premises will be decorated with trees and plants, greenbelts, gardens to
promote sustainable practices by the resort, its environment and friendliness policies.
Efforts would be made to ensure that the level of pollution (air, water, soil, noise, visual,
light, personal pollution suchassmoking etc)is minimized. The resort aims at achieving a
5-star ecorating in regards toits sustainability practices inordertoexpand onits

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competitive edge.This hasbeenfurther discussed below inthe strategy relating tophysical
evidence.
Male members of the staff would bedressedin formal suits which would beblack in colour
and would have badges with theresort’s logo and their first names onit. Similarly, female
members of the staff would wear formal coats and pants, also black in colour with similar
badges. They would b etrained tobehave in acourteous, warm andwelcoming manner during
their training programmes.
8. Financial Analysis
The financial plan for driving and funding the growth of The Palms Resort & SPA
is presented in detail in the following sections. Initial capitalization (after founder’s
seed) is about $1.5 million. This capitalization is intended to be provided by the
local bank sector and the private investors.
8.1 Important Assumptions
The financial assumptions upon which this plan is based are outlined as follows:
Table : General Assumptions
2018 2019 2020
Short-term Interest
Rate (%)
3.0% 3.0% 3.0%
Long-term Interest
Rate (%)
……………………
5.0% 5.0% 5.0%
Tax Rate (%) - See
note (*)
……………………
…..
0.0% 0.0% 0.0%
Revenues Growth
……………………
0% 4% 4%
Sales on credit
(%)………………
75% 75% 75%
Marketing Expenses (as %
of Revenues)………..
5.3% 5.4% 5.7%

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8.2 SalesForecast Sales Forecast
Estimated
2018
Estimated
2019
Estimated
2020
Average
Share (%)
Average ($)
Corporate Single $ 94,050 $ 97,812 $ 101,724 7.7% $ 97,862
Corporate
Double
$ 217,500 $ 226,200 $ 235,248 17.9% $ 226,316
Corporate
Deluxe
$ 181,500 $ 188,760 $ 196,310 14.9% $ 188,857
Corporate Suite $ 30,810 $ 32,042 $ 33,324 2.5% $ 32,059
• The Main
Boardroom
$ 42,900 $ 44,616 $ 46,401 3.5% $ 44,639
• The
Conference Hall
$ 45,500 $ 47,320 $ 49,213 3.7% $ 47,344
• The Ballroom $ 118,750 $ 123,500 $ 128,440 9.8% $ 123,563
SPA Facilities $ 172,874 $ 179,789 $ 186,980 14.2% $ 179,881
Restaurant & bar $ 310,725 $ 323,154 $ 336,080 25.6% $ 323,320
Total Sales $ 1,214,609 $ 1,263,193 $ 1,313,721 100.0% $ 1,263,841
Sales Growth (%) 0.0% 4.0% 4.0%

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8.3 ProjectedFinancialStatements
Statement of ProjectedResultof Operations
For each of the three years.
2018 2019 2020
Gross Sales :
Corporate Rooms $ 523,860 $ 544,814 $ 566,607
Conference Rooms 207,150 215,436 224,053
Other Facilities 483,599 502,943 523,060
Total Sales
1,214,609 1,263,193 1,313,721
Cost of Sales 309,419 306,325 300,198
Gross margin 905,190 956,868 1,013,523
As (%) of Gross sales 75% 76% 77%
Operating expenses :
Sales & Marketing $ 276,700 $ 295,595 $ 313,810
General and
Administrative
272,300 291,694 307,711
Total Operating
expenses
$ 549,000 $ 587,289 $ 621,522
Income from operations $ 356,190 $ 369,579 $ 392,001
Earnings before interest
and
$ 356,190 $ 369,579 $ 392,001
taxes (EBIT)
Interest expense (income) :
Interest expense (Short-
term @ 3%)
$ 3,600 $ 4,500 $ 3,000
Interest expense (Long-
term @ 10%)
5,000 7,500 10,000
Interest income
(exoneration @ 0%)
0 0 0
Net Interest expense
(income)
$ 8,600 $ 12,000 $ 13,000
Net income before taxes $ 347,590 $ 357,579 $ 379,001
Taxes (exoneration)
Federal Taxes (@ 0 %) $ 0 $ 0 $ 0
State Taxes (@ 0%) 0 0 0
Total Taxes $ 0 $ 0 $ 0
Net Income after
interest and taxes
$ 347,590 $ 357,579 $ 379,001
As (%) of Gross sales 29% 28% 29%

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ProjectedBalance Sheet
For each of the three years ending December
ASSETS 2018 2019 2020
Current assets:
Cash and cash equivalents $ 24,292 $ 25,264 $ 26,274
Inventories 12,146 12,632 13,137
Marketable securities 0 0 0
Accounts receivable 25,304 26,317 27,369
Other current assets 6,073 6,316 6,569
Total Current Assets $ 67,816 $ 70,528 $ 73,349
Property, plant and equipment:
Land and building $ 1,000,000 $ 1,000,000 $ 1,000,000
Purchase software 10,000 10,000 10,000
Computer equipment 25,000 30,000 35,000
Room furniture and
appliances
200,000 200,000 200,000
Office Furniture and
equipment
100,000 100,000 100,000
Conference Room
Furniture and equipment
100,000 100,000 100,000
SPA Furniture and
equipment
75,000 75,000 75,000
Restaurant Furniture and
equipment
250,000 250,000 250,000
Other 50,000 75,000 100,000
Total Property, plant,
and equipment
$ 1,810,000 $ 1,840,000 $ 1,870,000
Less Accumulated
depreciation
181,000 276,000 374,000
Net Property, plant and
equipment
$ 1,629,000 $ 1,564,000 $ 1,496,000
Totalassets
$1,696,816 $1,634,528 $1,569,349
LIABILITIES
Current liabilities:
Notes and loans payable $ 100,000 $ 150,000 $ 200,000
Account payable 120,000 150,000 100,000
Accrued income taxes - - -
Other accruals 54,226 4,359 10,179
Total current liabilities $ 274,226 $ 304,359 $ 310,179
Cont……
EQUITY
Owner's equity:

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Contributed capital:
Additional paid-in capital
- preferred
$ 1,500,000 $ 1,500,000 $ 1,500,000
Preferred Stock 0 0 0
Common Stock 0 0 0
Total Contributed capital $ 1,500,000 $ 1,500,000 $ 1,500,000
Retained earnings (77,410) (169,831) (240,830)
Net Owner's equity
$ 1,422,590 $ 1,330,169 $ 1,259,170
Totalliabilities and
equity
$1,696,816 $1,634,528 $1,569,349
8.4 BreakevenAnalysis
Break even, based upon fixed initial market overheads, will be obtained prior to the end of
the 1st year of operation. Cost control and continuous improvement in the operation and
implementation of the market strategy will increase profitability which will increase the
availability of cash.
Assumptions :
Average monthly Revenue: $ 101,217
Average monthly Variable
Cost:
$ 25,785
Estimated Monthly Fixed
Cost:
$ 45,750
Total Cost (Fixed +
Variable) =
$ 71,535
Monthly sales Break Even
=
$ 71,535
8.5 ProposedBusiness Ratios
Profitability Ratios:
Gross Margin and Net Profit Margin indicate that the hotel will generate profit from year #1.
Percentages of gross and net margin (related to gross revenue) are in line with the local
industry. Return on assets (ROI) and Return on Equity (ROE) indicate that significant
earnings will be generated from the investments in assets and a result an efficient usage of the
owners’ equity is expected.
Activity Ratios:
AR and AP Turnover suggest a good management of the balance sheet plus the Inventory
Turnover that also indicates an excellent rotation of the inventory. Collection days (only 8)
represent a business risk in the balance sheet since most of the credit card service providers

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will require more than 30 days to pay back. Potential increase in the AR could generate some
pressure in the cash flow.
Debt and Liquidity Ratios:
Debt and Liquidity Ratios are very low. It is an indication of the required initial capital
funding required from the owners’ equity.
A negative working capital represents an area of concern. The large amounts in the total
current liabilities versus the total current assets suggest that the hotel will be under pressure
to cover its debts during the first years of operation. This situation should become under
control by significantly reducing the amount of the debt after the 5th year of operation.
Profitability Ratios: 2018 2019 2020
Gross Margin 75% 76% 77%
Net Profit Margin 29% 28% 29%
Return on Assets 20% 21% 24%
Return on Equity 24% 26% 29%
Activity Ratios
AR Turnover 48.0 48.9 48.9
Collection Days 8 8 8
Inventory Turnover 25.5 24.7 23.3
Accts. Payable
Turnover
10.1 9.4 10.5
Total Asset Turnover 0.67 0.69 0.71
Debt Ratios
Debt Ratio 0.16 0.19 0.20
Debt / Equity Ratio 0.19 0.23 0.25
Liquidity Ratios
Current Ratio 0.25 0.23 0.24
Net Working Capital $ (206,410) $ (233,831) $ (236,830)
Acid Test 0.18 0.17 0.17
Additional Ratios
Assets to Sales 1.40 1.32 1.22
Current Debt / Total
Assets
0.16 0.18 0.19
Asset Turnover 0.72 0.76 0.82

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References
(1) NEXT PLC (2014a) Annual Report 2014. [Online] Available at:
<http://www.NEXTplc.co.uk/~/media/Files/N/NEXT-PLC/pdfs/reports-and-
results/2014/
NEXT%20AR2014%20web.pdf>. [Accessed on 18-Dec-15].
(2) www.google.com
Case Study of
Dr. Beckett’s Dental Office
1. Which of the sevenelements of the services marketing mix are addressed in this case?
Give examples of each “P” you identify.
Which seven elements of the services marketing mix are addressed in this case given below –
 Product
 Price
 Promotion
 Place
 People
 Process
 Physical evidence
Product :
Beckett’s dental office provide high level service, they offer every service of dental care from
simple to complicated. They offer the complete range of dental care from simple teeth
cleaning. Dental service is a credence service. The dental service they provide is trustful and
you can rely on the service, increase the value of the service with extra facilities. Depending
on the quality of the product she make different from competitors. It differentiate on the basis
of quality.
Price
Planning to go to differentiation strategy to gain pricing power. Comparing to other
competitors the price is higher and try to use different strategies to have a pricing power.
Loosing pricing premium due to communication. The equipment, the dental office facilities
and office furniture creates more management issues.
Promotions
The dental office depends on word of mouth, they don’t advertise. For the patients they

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provide them with short films or brochure to show them the procedure and treatment process.
They educate customer for high retention and WOM.
Place and timing
Place is the dr. beckett’s dental office. Time on the working hours of the office.
People
The most important thing in the service nature is the employee should be satisfied and happy.
Dr. Beckett make sure to motivate and train her employees to add skills and positive attitude,
bonuses vacations. She makes sure to listens to her employees ideas and suggestions.
Process
Staffs work is organized between the employees and try to reduce errors by educating and
examine the assessments then ask a professional to help them. The patient is a director
receiver of the service, that’s why the office make sure that the client is satisfied with the
service and they offer extra services to improve for an example, if there is a change in the
appointment’s time they call to inform the patient.
Physical evidence
Dr. Beckett on her new office concentrated on the decoration and on patient’s satisfaction
with modern, spacious and attractive place, the colors used for uniforms and office indicate
feeling of relaxation. She ensured the patients comfort by providing flowers, coffee or tea,
magazines for patients seating areas. Dr. beckett’s made sure to make the client feel safe and
confident by hanging dental degrees on the wall.
2. Why do people dislike going to the dentist? Do you feel Dr. Beckett has addressed this
problem effectively?
 She wanted to differentiate her service in term of the quality
 Upgrade core service (completed range of dental treatment)
 Redesign service delivery system (more supplementary services)
 Give the high quality and standardized dental care service
She worked hard with her employees and balance the capacity. But her employees do not
make patients to wait more than 20 minutes. They offer reschedule and save customer time.
Moreover, she needs to improve save time, speed up service process which will benefit
customer.
That is why people dislike going to the dentist.
Beckett addressed this problem effectively
Yes, We think Dr. Beckett has addressed this problems effectively. Dr Beckett redesign
service delivery system and improve core service .Good service quality (achieves
customers' expectations and needs)
 More and more customers wants to come
 Staffs work more effectively in better environment
 So, she makes higher service productivity.
3) How do Dr.beckett and her staff educate patients about the service they are receiving
? What else could they do?

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Dr.beckett tried to do a needs assessment for her patients so they can see it as a good thing
that will differentiate the Dr from others. the office staff tried to provide some information’s
through showing the patients educational videos about different dental procedures , and also
brochures were available . Maybe they can make a website with before and after pictures
4) What supplementary services are offered ? How do they enhance service Delivery?
Facilitating:
1) the patients know the procedure before they get treated.
2) they make appointments for dental care.
Enhancing:
Comfortable environment:
They provide a modern and comfy environment for their patients, such as: classic music,
offer coffee, follow up calls.
Safekeeping: which is when the parents are getting treated, there's a room for their children to
play in.
5) Contrast your own dental care experiences with those offered by Dr.Beckett's
practice. What difference do you see ? Basedon your review of this case, what advice
would you give (a) to your current or former dentist , and to Dr.Beckett's?
The difference that We can see is:
My dental clinic always make wait longer than Dr.Beckett's, And also they care more about
the quality than my clinic.
Dr. Barbro Beckett is a dentist who seeks to differentiate her practice on the basis of quality
even though that the overhead expenses has risen sharply up to 70-80% of revenues exclusive
of her wages and office rentals . at the same time the provider overhead was raising so that
leads to a movement in the U.S. to reduce the health care costs to insurance companies,
employers and patients through HMOs - large health maintenance organizations- who sets
prices for services by putting an upper limit on the amount that doctors and dentists could
charge for various procedures. But the HMOs made the dentists provide low quality services
for the low prices. Instead Dr.Beckett after consulting choose to not to become a HMOs
provider and focus on the quality.
She and her staff developed a mission statement that reflected that goal: "It is our goal to
provide superior dentistry in an efficient, profitable manner within the confines of a caring,
quality environment".
She said: I just hope the quality differences are visible to our patients" because if they did not
see or feel the difference they will go to the dentists who provide low cost services

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6. Evaluate Dr. Beckett’s website (chicogentledental.com). What strengths do you think
the website has? What improvements would you suggest?
Strengths
Trustworthy lists out the patient service, location, address, contact number, facilities
Improvements
Online making appointment
Forum