[Jennifer vu huong]zen travel business plan

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PRESENTER: JENNIFER VU HUONG([email protected])

1

BUSINESS INNOVATION AND TECHNOLOGY MANAGEMENT

ZEN TRAVEL - BUSINESS PLAN

Business plan - Zen travel 2

2009 2010 2011 2012 20130

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

Number of visitors

The number of international visitors in Vietnam from 2009 to 2013

(Data Source: Ministry of Culture, Sport & Tourism)

Increase significantly


Company overviewZEN

TRAVEL

Size

20 employees 12,400 USD

Location

Hanoi,

Vietnam

Ownership

Private Ltd company

Zen and Paul

Ocean Park Building, Dao Duy Anh street, Dong Da District, Hanoi


External analysis2

1 Mission, vision, goals

3 Internal analysis

6 Evaluation and control system

CONTENTS

5 Action plan / Business Model

4 SWOT


External analysis2

1 Mission, vision, goal

3 Internal analysis


CONTENTS


4 SWOT

6

Mission, vision, goal

MISSIONBe the leading travel and related services company of choice, providing

reliable multi-services and innovative options to all customers

VISIONTo be become the best travel company in Southeast Asia in 3 years (2017)

GOALTo be true to the saying: ’Better services/price than the best services/price


External analysis2


CONTENTS

Macro environment - PESTEL2.1

Microenvironment - 5-Forces, KSF2.2

PESTEL Analysis

P High political stability (total stability index of 4.3 in 2010) Government encourage and highly support investing to tourism (Money investment and advertisement support) Not high tax , plan to reduce tax Member of ASEAN, APEC and WTO that opens more business

opportunities

E Advantages:

Attractive emerging market Market oriented economy is developed quickly High spending power on tourism Low interest rates

Disadvantages: Echange rate fluctuations increased Low disposal income Low currency exchange rate High inflation rates High competitive

S Population: big volume, high growth rate Social mobility: Standard of living increases, tourism become

demanded Education: low level of foreign languages Human resource: abundent cheap labor fources Traffic: bad conditions and several problems related to quality,

safety, and at prices, traffic jam and water-flood Acceptance of new unwellknown center Cutural diversity between different regions

T Rapidly developing country in technology Many expressways and local transport network are built

and usually upgraded Increase quality reduce costs of communication via

Internet and

E Blessed by the nature, with a great ecological and

hydrological diversity Low awareness of citizens about environmental health High environmental pollution Possible to be seriously affected by climate change

L Open-door policy Legal system is improved to create a favorable

environment for the development of a multi-sector market economy as well as a more open and stable investment environment

CONCLUSION- ENVIRONMENTAL CARE

- BUILD UP GOOD RELATIONSHIPS WITH LOCAL SUPPLIERS

31 national parks7 World Heritages

8 world zones21 national tourist areas

3,260 kilometers Coastline


The spectrum of industry structures

Perfect competition

Oligopoly Duopoly Monopoly

VIETNAM

Concentration

Entry and exit barriers

Product differentiation

Information

MANY FIRMS

NO BARRIERS

HOMOGENEOUS PRODUCT

PERFECT INFORMATION FLOW


SUBSTITUTE COMPETITION: LOW

• Tourism demand is forecasted to grow

BUYER POWER: MEDIUM

• Buyers’ price sensitivity: MEDIUM

• Relative bargaining Power: MEDIUM

SUPPLIER POWER: MEDIUM

• Buyers’ price sensitivity : MEDIUM

• Relative bargaining Power : MEDIUM

Intra-Industry Rivalry: MEDIUM

• Concentration: LOW

• Diversity of competitors: HIGH

• Product differentiation: HIGH

•Excess capacity &

exit barriers: NO BARRIERS

THREAT OF ENTRY: MEDIUM

•Capital requirements: MEDIUM

•Economies of scale: MEDIUM

•Absolute cost advantage: HIGH

•Product differentiation: HIGH

•Access to distribution

Channels: EASY

•Legal/ regulatory barriers: MEDIUM

•Retaliation: MEDIUM

5-Forces analysis Complements: JESTAR AIRLINESOUVERNIR RESTAURANTSHOPPING

ATTRACTIVE MARKETHIGH INTENSE RIVALRY

> CRITICAL TO ESTABLISHA SUSTAINABLE

COMPETITIVE ADVANTAGE


Key Success Factor

KSF

What do customers want?

How does the firm survive competition?

LOW COSTS

DIFFERENTIATION

CONVENIENCE DEMANDED SERVICES

EXPERIENCE IN THE INDUSTRY

HIGH INTENSITY COMPETITION

INTERACTING WITH LOCAL PEOPLE


Key Success Factor Differentiation and low costs Excellence in fulfilling the promise, timely response Solid and fruitful strategic alliances Training and development system Marketing know-how (marketing communication)

STRATEGY (For the next three years) - Focus on building a profitable and sustainable business platform- Establish a market presence that assures short-term and long-term

profitability, growth and success in Vietnam then, Southeast Asia- Be committed to supporting growth and development in the tourism,

overall economy and the environment of Vietnam


External analysis2


CONTENTS

Value chain analysis 3.1

Resources and capabilities3.2

3 Internal analysis


Value chain analysis

Transportation

ZEN TRAVEL

Plane

Bus

Ship

Car

Cyclo

Taxi

Hotel

Resort

Guest-house

Restaurant

Traditional food

Bar

Coffee shop

Traditional activities

Festival

Bar

Disco

Souvenir shop

Shopping center

Super market

Night market

Beach

Mountain

Orchard

Temple

Accommodation Food Entertainment Shopping Visit experience

Local hosts


Resource & Capabilities Resource Characteristic

Tangible

Financial Invest by ourselves (20 people)

Physical

Size: 20 members Corporate with the other food/transport/flight companies Office at Ocean Park Building, Dao Duy Anh street, Dong Da District, Hanoi

Culture High collaboration, no one is smarter than all of us

Intangible Technology

All staffs are trained in tourism, MBA,…in foreign countries

Reputation New brand name

Human Enthusiastic and confident teams: high soft skills and high understanding different cultures; nonstop learning with several training courses delivered by experts


Resource & CapabilitiesResource Importance Relative

strengthCapabilities Importance Relative

strength

R1: Financial 8 5 C1: Marketing 9 4

R2: Size 5 5 C2: Tour development

9 6

R3: Location 3 8 C3: Tour operating 8 7

R4:Technology 6 8 C4: Corporate relations

8 6

R5: Reputation 8 2 C5: Financial mgt 8 3

C6: HRM 4 3

C7: IT 7 8

Both scales range from 1 to 10 (1= very low, 10= very high)


Resource & Capabilities

Re

lativ

e s

tre

ngth

Strategic Importance

R1R2

R3R4

R5

C5

C2C4

C3

C1

C6

C7

1

1 10

10


External analysis2


3 Internal analysis

CONTENTS

4 SWOT

19

SWOT Analysis Positive aspects Negative aspects

STRENGTHS WEAKNESSES

Internal

factors

- Enthusiastic and confident teams- High quality training systems- Good relationships with local authorities,

residents and youth community at the visited destinations

- Poor reputation- Finance problems

OPPORTUNITIES THREATS

External

factors

- Members of WTO, ASEAN- High population volume and growth rate- Unstable politics in neighboring nations- Having a great deal of beautiful and

unexploited sightseeing- Possible to open branches- Possible to develop an international

brand name

- Growing competition from local companies and international companies

- Same services will be implemented by competitors

- Languages barriers


External analysis2


3 Internal analysis

CONTENTS


4 SWOT


Marketing plan – Market Analysis

Percentage of market by nations

Vietnam

Southeast Asia

Other Asian countries

Europe

America and Austrilia

Others

TARGET MARKET: foreign customers

MARKET NEEDS: low prices, convenience, differentiation (quality of services, tour guides, transport, accommodation, traditional food)


Marketing plan – Main competitors

HanoitouristVietravel

Saigontourist Fiditour Benthanhtourist

COUCHSURFING


Marketing plan – Sales strategy

Services Popular of each service to

customers

Zen travel (me) National competitor (Viet travel)

International competitor (Couchsurfing)

Find hosts *** Free Not available FreeEntertainment ** Free Not available FreeOffer temporary jobs

** Free Not available Not available

Tours *** 80 USD domestic 200 USD Southeast Asia

150 USD domestic 300 USD Southeast Asia

Not available

Adventure tours ** 300 USD one night one day Available but not regular Not available

Accommodation

*** At the price of cooperating hotels/hostels

Not available Not available

Transportation *** At the price of transport company

Higher Not available

Food *** At the price of restaurants in visited places

Higher Not available

Shopping *** At the price of souvenir shopping center

Not available Not available

COMPETITIVE ADVANTAGES

1. DIFFERENTIATION

2. LOW COST


Operational plan – Channels of distribution

Internet Phone

Office Community

Conferences


Organizational plan – Organization chart

Center Administration

Marketing team

Flyer Online support Forums Website

s

Website development team

Receptionist

Tour guide team

Event management team

Action team

Speakers

DJ team MC

VolunteersManagement

board(Zen and Paul) Key

management personnel

Passion Power

Patience


Financial Analysis Starting year: 2015 Estimate of start-up costs

• Fixed costs • Operating costs

1 year forward 2 years forward 3 years forward

Profit monthly, yearly, break-even Projected income

1 year forward 2 years forward 3 years forward


Start-up cost and operating cost

Operating cost Year 1 (2015) Year 2 (2016) Year 3 (2017)

Payroll $100,000 $150,000 $200,000

Sales and Marketing and Other Expenses $15,000 $17,000 $21,000

Rent $12000 $12100 $12500

Travel $500 $1000 $1500

Insurance $12000 $13000 $14000

Maintenance $10000 $0 $0

Payroll Taxes $0 $0 $0

Others $500 $700 $900

Total Operating Expenses $150,000 $193,800 $249,000

Start-up Requirements

Start-up Expenses

Legal $300

Equipment $500

Brochures $500

Insurance $500

Rent $100

Others $500

Total Start-up Expenses $2400

Start-up Assets

Cash Required $10000

Total Requirements $12400


Profit monthly

Mon

th 1

Mon

th 2

Mon

th 3

Mon

th 4

Mon

th 5

Mon

th 6

Mon

th 7

Mon

th 8

Mon

th 9

Mon

th 1

0

Mon

th 1

1

Mon

th 1

2

-4000

-2000

0

2000

4000

6000

8000

10000

12000

14000

16000

Profit monthly (USD)

Profit monthly (USD)

Start getting profit


Profit yearly

Year 1 (2015) Year 2 (2016) Year 3 (2017)0

20000

40000

60000

80000

100000

120000

140000

Profit yearly (USD)

Profit yearly (USD)

Nonstop increase


Break-even Analysis

0 50 100 150 2000

2000

4000

6000

8000

10000

12000

14000

16000

18000

Turnover(USD)Cost(USD)

Break-even when the number of sold products is 120


Projected Cash Flow

Mon

th 1

Mon

th 2

Mon

th 3

Mon

th 4

Mon

th 5

Mon

th 6

Mon

th 7

Mon

th 8

Mon

th 9

Mon

th 1

0

Mon

th 1

1

Mon

th 1

2

-20000

0

20000

40000

60000

80000

100000

120000

140000

Cash followCash balance

Start getting profit


External analysis2


3 Internal analysis


CONTENTS


4 SWOT


Evaluation and control system

TRACKING AND FOLLOW-UP: Track results of the business plan and make sure that we

implement it

MARKET SEGMENT FOCUS: Maintain the market segment focus

CUSTOMER FOLLOW-UP: To ensure that we are meeting their expectations at all

times


Conclusion

Implementation

Investigation and adjustment

B Business plan

Size Services Partners


‘Fly feeling’ with ZEN TRAVEL

PICK UP

ACCOMMODATION

FOOD

TOURS

SHOPPING

LOCAL ACTIVITIES


References Lectures of professor Dr. Pilar Marquès Gou "International visitors to Vietnam in December and 12 months of 2011". Vietnam National

Administration of Tourism. Retrieved 26 January 2012. http://www.vietnamtourism.gov.vn/english/index.php?cat=012041&itemid=6308 The Economist 2013 Ministry of Culture, Sport & Tourism

http://www.vietnamtourism.gov.vn/english/index.php?cat=012040&itemid=5143

http://www.vietnamtourism.gov.vn/english/index.php?cat=012041&itemid=6308

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ZEN TRAVEL

37Business plan - Zen travel