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 MKT 202
                            Principles of Marketing




 Varqa Shamsi Bahar
 Lecturer
 School Of Business, BBA Program
 North South University
                                                   2
Group Name: PentaWitz
           Members:
Mahjabeen Ashraf (121 1099 030)
 Shafayat Habib (121 0170 030)
  Tanvir Ahmed (121 0041 030)
 Tanzim Ahmed (121 0813 030)




                                  3
 Our business idea is to create a travel guide company to guide
  the tourists from home and abroad to explore and experience
  the scenic beauty of Bangladesh along with the adventures she
  has to offer, within a convenient/reasonable price range around
  the year.


              • To provide detailed and up to date travel information, tailor made
                itineraries for a wide range of destination in and around
                Bangladesh with services and facilities developed in collaboration
 Objective:     with local communities and in harmony with the environment.




                                                                                     4
 Although Bangladesh is a small country many locations have
still remained unexplored by both local and foreign tourists

 Due to the rapidly growing tourism industry in Bangladesh
such a service stands as one of the most fruitful opportunities to
thrive in.

Also given the fact that the no. of competitors is very few


 So our aim is to provide our quality services at the untapped
places of Bangladesh while representing it‟s picturesque beauty.
                                                                     5
DATA TO JUSTIFY
BUSINESS OPPORTUNITY



                       6
7
 Visit by Tourists in the year 2007
8
 Annual income from tourism industry from 2003-2010*
 Market Growth Rate: 4.37%*


 According to the latest data from Ministry of Civil
 Aviation and Tourism in 2007 there is an increasing trend
 in tourist arrival in Bangladesh

 According to Annual Income from Tourism Industry chart
 annual income has increased consistently over the years

                                                             9
 Foreign Exchange Earnings from tourism in the year 2010
     is tk.6122.48 million which is 16.28% more than that of
     2009**

 The contribution of travel and tourism to Gross Domestic
     Product of Bangladesh is expected to rise from 3.9%(BDT
     265.9 billion/ US $3786 million) in 2010 to 4.1%(BDT
     788.4 billion/ US $8781.7 million) by 2020**



Source: *International Academic Research – Journal of Business and Management – Vol. 1, Issue. 2, Page 27
        **Strategic Management of Tourism Industry in Bangladesh to Increase GDP: An Analysis by Mohammad Mahboob Ali & Rehana Parvin – Office
                                                                                                                                                 10
     of Research And Publication(ORP) – Working Paper No. AIUB-BUS-ECON-2010-04
 Tourism industry in Bangladesh is in GROWTH stage of PLC grid

                                                                  11
Competition




 Bangladesh Parjatan Corporation
    Guide Tours Ltd.
       Tiger Tours BD
          Bangladesh Eco-Tours
            Other Local Travel/Tour Guides            12
Marketing Strategy



                     13
 Demographic Segmentation


 Based on Age: Young and Old(generation X &Y)


 Based on Income: Middle class & Upper Middle Class




                                                       14
 Differentiated Targeting


 We offer both differentiated ready made and tailor made
  tour packages for each demographic group in each region




                                                            15
Social Class SEC B             Social Class SEC C
 13.28% of Total population    15.67% of Total population
 He/She is a house owner or    Income level generally lies
  officer/executive              between BDT 45,000 to
  (mid/senior)                   BDT 65,000.
 Income level is minimum       SSC/HSC         graduate,
  70,000 BDT to maximum          Diploma degree.
  90,000 BDT.
 Has a Bachelors degree.



                                                               16
 Service Differentiation:      ideal blend of adventure and
                             exploration with comfort and
                             relaxation within reasonable
                             price

 People Differentiation:     specially trained knowledgeable,
                             multilingual, interactive local
                             guides and experts are employed
                             for treks and special interest
                             tours.
                                                                 17
 Package Dependent:


       More for More (for Tailor made packages)


       More for Same (for Readymade packages)




                                                   18
Marketing Mix



                19
1. Core Customer Value

• unique enjoyable experience during leisure through our
  specialized tourist services

2. Actual Service

• Brand Name, Features, Design, Packages, Quality Level

3. Augmented Service

• After Sales Service
                                                           20
Features:                           Design:
                      to generate pleasant personal       strong focus on the activities that
                               experiences ,            tourists can perform does not astray
                                                         from the basic needs of customers
2. Actual Service




                    to attain a better and meaningful        for comfortable and secured
                    understanding of the deep-rooted       accommodation while traveling
                          culture of Bangladesh.


                                             Brand Name:
                                             Bengal Rovers


                            Packages:                         Quality Level:
                         several discount                    maintained in a
                       travelling packages                  consistent manner
                                                                                                21
3. Augmented Service

            Option of collecting the printed pictures
             taken throughout the travelling period by our
             guides

            Purchasing souvenirs online


            Delivering    complimentary souvenirs to the
             tourists address on quarterly basis for first 2
             years

                                                               22
Cox‟s
Bandarban
            Bazaar




Sundarban   Sylhet


                     23
 Pricing Strategy:


         Value Added Pricing Strategy


         Market Skimming




                                         24
 Includes:                                        Doesn’t Include:
 All entrances as per itinerary                   Personal expense
 A/C vehicle (except for Sundarban & Adventure    Permission for foreign tourists
  package)
                                                   Services not specifically mentioned in
 Multilingual local guide                           itinerary                               25
 Snacks & meals
 Bill Boards    Social Networking Sites
                                      26
 Flyers, Brochures(esp. in
              5Star hotels)




                               TV advertisements


                                                    27
 Other promotional campaigns:

 Discounts in tourism peak seasons

 Print media

 Pop up adds in
  http://www.rehab-bd.org/* ,
  http://www.parjatan.gov.bd/ ,
  http://www.visitbangladesh.gov.bd/
(most visited websites on tourism in BD by tourists except*)

 Stall in Rehab Fairs

 „Vote for Sundarban‟ Stall in all the itineraries possible, during “Vote for
  Seven Wonders of the World” poll times                                         28
Distribution


               29
 Direct Marketing Channel


           1. Corporate offices at active locations

           2. Online via official website



                                                      30
Environmental Strategy




                         31
 Our guides will carry portable trash bags   32
 Memorial tree plantation activity (optional) by the tourists 33
 Voluntary Beach Cleaning event on Environment Day   34
Sales Projections



                    35
 Penetrated Market: 32%


 Target Market: 70%


 Invested Capital: BDT 4 Crore (apprx.)



                                           36
 Yearly Sales Target(YST): BDT 90 lakh


 YST Accomplishment Estimate: BDT 80-85 lakh


 Break-even Period: 5.5-6 years



                                                37
Estimated Total Yearly Sales:     BDT85/90,00,000

Estimated Total Profit:           BDT 20,00,000

Estimated Total Yearly Expense:   BDT 11,50,000

Estimated Yearly Net Profit:      BDT 8,50,000


                                                    38
Operational Issues



                     39
 Expansion Strategy


 1. Adding an extra location to explore every year

 2. We wish to include extra features to our packages every
 year.

 3. After break-even is reached and substantial revenue is
 earned resorts will be built in tourist hot spots
                                                              40
 Natural disaster affecting key locations resulting in
  declining sales

 Climate changes affecting the natural beauty of
  specific regions during specific times of the year

 Terrorism, civil unrest poses negative vibe for tourists


 There is a high rate of employee turnover in this
  industry due to lack of competence
                                                             41
42
43
44
45
46

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MKT 202 Principles of Marketing Class Lecture Notes

  • 1. 1
  • 2.  MKT 202  Principles of Marketing  Varqa Shamsi Bahar  Lecturer  School Of Business, BBA Program  North South University 2
  • 3. Group Name: PentaWitz Members: Mahjabeen Ashraf (121 1099 030) Shafayat Habib (121 0170 030) Tanvir Ahmed (121 0041 030) Tanzim Ahmed (121 0813 030) 3
  • 4.  Our business idea is to create a travel guide company to guide the tourists from home and abroad to explore and experience the scenic beauty of Bangladesh along with the adventures she has to offer, within a convenient/reasonable price range around the year. • To provide detailed and up to date travel information, tailor made itineraries for a wide range of destination in and around Bangladesh with services and facilities developed in collaboration Objective: with local communities and in harmony with the environment. 4
  • 5.  Although Bangladesh is a small country many locations have still remained unexplored by both local and foreign tourists  Due to the rapidly growing tourism industry in Bangladesh such a service stands as one of the most fruitful opportunities to thrive in. Also given the fact that the no. of competitors is very few  So our aim is to provide our quality services at the untapped places of Bangladesh while representing it‟s picturesque beauty. 5
  • 6. DATA TO JUSTIFY BUSINESS OPPORTUNITY 6
  • 7. 7  Visit by Tourists in the year 2007
  • 8. 8  Annual income from tourism industry from 2003-2010*
  • 9.  Market Growth Rate: 4.37%*  According to the latest data from Ministry of Civil Aviation and Tourism in 2007 there is an increasing trend in tourist arrival in Bangladesh  According to Annual Income from Tourism Industry chart annual income has increased consistently over the years 9
  • 10.  Foreign Exchange Earnings from tourism in the year 2010 is tk.6122.48 million which is 16.28% more than that of 2009**  The contribution of travel and tourism to Gross Domestic Product of Bangladesh is expected to rise from 3.9%(BDT 265.9 billion/ US $3786 million) in 2010 to 4.1%(BDT 788.4 billion/ US $8781.7 million) by 2020** Source: *International Academic Research – Journal of Business and Management – Vol. 1, Issue. 2, Page 27 **Strategic Management of Tourism Industry in Bangladesh to Increase GDP: An Analysis by Mohammad Mahboob Ali & Rehana Parvin – Office 10 of Research And Publication(ORP) – Working Paper No. AIUB-BUS-ECON-2010-04
  • 11.  Tourism industry in Bangladesh is in GROWTH stage of PLC grid 11
  • 12. Competition  Bangladesh Parjatan Corporation  Guide Tours Ltd.  Tiger Tours BD  Bangladesh Eco-Tours  Other Local Travel/Tour Guides 12
  • 14.  Demographic Segmentation  Based on Age: Young and Old(generation X &Y)  Based on Income: Middle class & Upper Middle Class 14
  • 15.  Differentiated Targeting  We offer both differentiated ready made and tailor made tour packages for each demographic group in each region 15
  • 16. Social Class SEC B Social Class SEC C  13.28% of Total population  15.67% of Total population  He/She is a house owner or  Income level generally lies officer/executive between BDT 45,000 to (mid/senior) BDT 65,000.  Income level is minimum  SSC/HSC graduate, 70,000 BDT to maximum Diploma degree. 90,000 BDT.  Has a Bachelors degree. 16
  • 17.  Service Differentiation: ideal blend of adventure and exploration with comfort and relaxation within reasonable price  People Differentiation: specially trained knowledgeable, multilingual, interactive local guides and experts are employed for treks and special interest tours. 17
  • 18.  Package Dependent: More for More (for Tailor made packages) More for Same (for Readymade packages) 18
  • 20. 1. Core Customer Value • unique enjoyable experience during leisure through our specialized tourist services 2. Actual Service • Brand Name, Features, Design, Packages, Quality Level 3. Augmented Service • After Sales Service 20
  • 21. Features: Design: to generate pleasant personal strong focus on the activities that experiences , tourists can perform does not astray from the basic needs of customers 2. Actual Service to attain a better and meaningful for comfortable and secured understanding of the deep-rooted accommodation while traveling culture of Bangladesh. Brand Name: Bengal Rovers Packages: Quality Level: several discount maintained in a travelling packages consistent manner 21
  • 22. 3. Augmented Service Option of collecting the printed pictures taken throughout the travelling period by our guides Purchasing souvenirs online Delivering complimentary souvenirs to the tourists address on quarterly basis for first 2 years 22
  • 23. Cox‟s Bandarban Bazaar Sundarban Sylhet 23
  • 24.  Pricing Strategy: Value Added Pricing Strategy Market Skimming 24
  • 25.  Includes:  Doesn’t Include:  All entrances as per itinerary  Personal expense  A/C vehicle (except for Sundarban & Adventure  Permission for foreign tourists package)  Services not specifically mentioned in  Multilingual local guide itinerary 25  Snacks & meals
  • 26.  Bill Boards  Social Networking Sites 26
  • 27.  Flyers, Brochures(esp. in 5Star hotels)  TV advertisements 27
  • 28.  Other promotional campaigns:  Discounts in tourism peak seasons  Print media  Pop up adds in http://www.rehab-bd.org/* , http://www.parjatan.gov.bd/ , http://www.visitbangladesh.gov.bd/ (most visited websites on tourism in BD by tourists except*)  Stall in Rehab Fairs  „Vote for Sundarban‟ Stall in all the itineraries possible, during “Vote for Seven Wonders of the World” poll times 28
  • 30.  Direct Marketing Channel 1. Corporate offices at active locations 2. Online via official website 30
  • 32.  Our guides will carry portable trash bags 32
  • 33.  Memorial tree plantation activity (optional) by the tourists 33
  • 34.  Voluntary Beach Cleaning event on Environment Day 34
  • 36.  Penetrated Market: 32%  Target Market: 70%  Invested Capital: BDT 4 Crore (apprx.) 36
  • 37.  Yearly Sales Target(YST): BDT 90 lakh  YST Accomplishment Estimate: BDT 80-85 lakh  Break-even Period: 5.5-6 years 37
  • 38. Estimated Total Yearly Sales: BDT85/90,00,000 Estimated Total Profit: BDT 20,00,000 Estimated Total Yearly Expense: BDT 11,50,000 Estimated Yearly Net Profit: BDT 8,50,000 38
  • 40.  Expansion Strategy 1. Adding an extra location to explore every year 2. We wish to include extra features to our packages every year. 3. After break-even is reached and substantial revenue is earned resorts will be built in tourist hot spots 40
  • 41.  Natural disaster affecting key locations resulting in declining sales  Climate changes affecting the natural beauty of specific regions during specific times of the year  Terrorism, civil unrest poses negative vibe for tourists  There is a high rate of employee turnover in this industry due to lack of competence 41
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