Pakistan Market Analysis Free Essay Example

Places

• NaranKhaghan Valley
• Hunza Valley
• Sighar Valley
• Deosai Plains
• Naltar Valley
• Fairy meadows and Nanga Parbat Base Camp
• Kumrat valley
• Chitral and shindor

Activities

• Trekking and Hiking
• White Water Rafting
• Paragliding

Future Service

Following places and activities will be added in future:

Places

• K-2 Base Camp
• Snow Lake
• Trango Towers
• Broghil Pass

Activities

• Skiing
• Rock Climbing
• Mountaineering

Market Analysis

We are today experiencing a rapid growth in the economy of unsurpassed nature. This has been brought about by, amongst other things, the construction of excellent road network and state of the art boarding and lodging facilities in the North of Pakistan.

The current drive and emphasis by the government on generating handsome economic activities in Northern area presents an opportunity to JKBA tours to establish themselves as a renowned Tour operator as quickly as possible. Having undertaken a thorough and comprehensive research of the market we realized that there was a need for a tour operator that focuses on corporate sector employees and provide them with family adventure activities along their excursion trips.

Aware of the fact that operating in such a market is largely dependent on good networking, we intend to establish networks and strategic relationships with various hotels, lodges and travel agents to ensure a steady stream of clients. However, in doing so we intend to ensure that the service we provide is of extremely high quality and comfortable. Our initial overall target market share shall be 10% of the market, mainly focusing on renowned valleys of Chitral, Swat and Kumrat.

We appreciate that entering such a market is not a ‘bed of roses’ and will require us establishing strong links with strategic partners as outlined previously. Hence we intend to implement an aggressive marketing strategy, well supported by the other business functions.

Market Need

Though the tourism sector has undergone rapid growth over the last decade the vast majority entering this sector and have rushed to the Naran-Khaghan Valley due poor infrastructure of roads in swat and chitral areas. Very few have focused on Chitral and Kumrat valley for family trips. With this in mind we intend to exploit the untapped market in this area so as to provide our customers with a good service and realize our business objectives.

We understand that our target markets need more than just being shown the areas of interest but also to be informed about their significance and origins. Hence we don’t just intend to provide a service, but to provide one of unparalleled activity based excursion relative to the market.

Market Trends

Despite the fact that tourism industry is surrounded by uncertainty, one fact is certain, tourism is here to stay. The only question is how large the industry will become and whether it can sustain, if not exceed its current growth rate. However, large the market ultimately becomes, this will lead to improved road networks and other infrastructure in the country which will encourage travelers to made the travel as an integral part of their life.

According to the Travel and Tourism Competitiveness Report 2017 released by the World Economic Forum, the direct contribution of travel and tourism to Pakistan’s GDP in 2015 was US$ 328.3 million, constituting 2.8% of the total GDP. According to the World Travel and Tourism Council, the direct contribution of travel and tourism to Pakistan’s GDP in 2016 was US$ 7.6 billion (PKR 793.0 billion), constituting 2.7% of the total GDP. By 2025, the government predicts tourism will contribute ? 1 trillion (US$ 9.5 billion) to the Pakistani economy.

Competitor Analysis

Presently, very few tour operators are being operated their activities in the Chitral and Kumrat areas. These existing operators are not focusing on corporate sector either and also are not providing any adventure activities with their excursion trips.

SWOT Analysis

We intend to enter a highly lucrative market in a rapidly growing economy. We foresee our strengths as the ability to respond timely to the market dictates and to provide custom designed travel excursions to travelers. Our key personnel will have a wide and thorough knowledge of the areas we intend to take travelers, which will go a long way towards penetrating the market. Below are the summarized strengths, weaknesses, opportunities and threats.

Strengths

• Focused client base: This will reduce our effort in the targeting of customers.
• Combination of skills in employees: Our Company intends to engage well-qualified and experienced employees to jointly develop business strategy and long-term plans, so as to attain company objectives.
• Extensive advertising and marketing: The Company will undertake extensive advertising and marketing, promoting both its name as well as service/product awareness. Hence an aggressive and focused marketing campaign with clear goals and strategies shall be one of our mainstays.

Weaknesses

• Lack of a reputation in comparison to our competitors. This is due to the fact that we are still new on the market.
• The introduction of new organizational practices and personnel who have not previously worked together presents a challenge to the organization.
• A limited financial base compared to the major players in the industry.
• Lack of clear strategic allies.

Opportunities

• Newly inaugurated Swat motorway will open an easy and comfortable window to travelers to visit our targeted area.
• Current drive by government towards encouraging the participation of indigenous entrepreneurs in tourism presents an opportunity which we may fully utilize.
• Current growth rate of tourism presents an opportunity for ourselves which we may use as our advantage.
• Presently there is no reliable public transportation company to take tourists to their areas of interest.

Threats

The present growth in the tourism sector may result in an increasing number of firms entering the market. This may lead to increased competition emerging from a variety of given sources including:

• New marketing strategies and tactics by established companies aimed at providing excursions of our intended nature.
• Existing competition in Naran-Khaghan and Gilgit-Baltistan areas.

Marketing Strategy

Promotions and packages

We will provide tailored holiday offers for families, individuals and couples during summers, spring breaks and Eid holidays. We will provide organizations to arrange corporate conferences, meetings and away-days for their employees at one of the finest resorts of Pakistan. Furthermore, JKBA will also provide additional products on top of our standard package for example offering lunch and dinner along with the city tour, adding exclusive candle light dinner for honeymoon couples etc.

Giveaways and loyalty program

The company starts to communicate in the firstyear by doing advertising, direct marketing, merchandising, Public Relations andpromotions.All potential customers who have subscribed to our online booking portal will get free merchandise including tee shirts, caps and mugs. While the customers receiving services will be given a complimentary travelling kit. Based on the model of flying miles, customers will get a loyalty card after their first travel with JKBA and will get redeemable points on all subsequent travels.

Engaging on social media to attract new customers

Based on the researchpeople rely on online forums like Facebook and TripAdvisor to plan their holidays based on reviews and comments from their peers. We will post our promotions and packages on such portals. The content on these portals will be regularly updated and kept interesting to ensure maximum engagement of potential customers. Our content will be accompanied by aesthetic videos and pictures to attract potential customers. To engage social media users, international and local travel bloggers will be invited to review their travel experiences with JKBA.

Online newsletter

An online newsletter will be generated which will be available to all customers on our website as well as distributed to the subscribers via email. The newsletter will be kept interesting and pictorial. It will contain reviews from customers and share their experiences including pictures from their cameras to keep it real for potential travelers.

Email updates on products and promotions to regular customers

To sustain our customer base regular reminders will be sent to the customers via email with new offerings and promotions.

Link with online booking websites

JKBA aims to combine different products in one package. Our online portal will be provided with links to hotels, flights and activities to facilitate the customer by providing a fare comparison. The online booking software will also be kept user friendly so that a package can be easily booked in minimum steps.

Marketing objectives

• To attract customers of all ages and professions
• Steady growth in new and regular customers every quarter
• To be recognized as reliable, trustworthy and safe trip providers

The objective of the company is to make it sustainable by itself. In the first year ourexpectations need to cover all expenses to satisfying customer needs. During the first yearthere will be 20 trips. Every year the number of clients rises withapproximately 10 because of the effective marketing and positive customer reviews.

2019 2020 2021 2022 2023

Year 1 Year 2 Year 3 Year 4 Year 5

10 trips 20-30 trips 30-40 trips 40-50 trips >50 trips

Financial Objectives

Initially, the main objective is to establish in the market place and in subsequent years will try to get maximum market share. In this context, in first year alongwith other selling tactics the need of personal selling/ networking and advertising to lure and inform potential customers about the services we offer and the benefits of utilizing our services, is of paramount importance. Initially, we are planning to spend relatively high amount on our marketing expenditure and subsequently, we have set a limit of 10 percent amount of our total revenue generated will be spent on marketing. The following chart shows our planned marketing expenditure for next five years.

Chart: Marketing Expenditure (in Pak Rupees) for Next Five Years

Target market and target approach

JKBA will target four different groups:

High income corporates:

This group is a star segment which will be used to maximize revenue and profits all the premium service will be offered to this group as our research shows that this group prefers luxury over economy. They also have a frequency of going to a vacation at least twice a year the summer slot of their vacation is mostly focused towards northern areas of Pakistan which is an opportunity that can be seized. To target this group individual marketing will be adopted. Customized traveling plans will be shared via email with flexi options. This group will be provided with executive traveling services along with 5 starhospitality experiences at their destinations. Auxiliary options will include professional guide services, buyable or rental equipment and gear, and internet and fresh meals.

Students and families

Economy services will be provided to the lower income and large groups. It will mostly offer tours from one to three days. Meals will be provided on request on additional payment. This group will be provided with more sightseeing opportunities than activities. Old alumni of partner institutes will be given special discounts if they travel in groups and the promos will be given catchy titles to attract more groups of youngsters.

Elderly

This target group focuses towards the purpose of relaxation in their traveling experiences. Comfort in terms of transport, food and accommodation is priority for this group. This group will be targeted via post mail addressed by name to add a personal touch. This group will be accompanied by facilitators both male and female. This group has higher purchasing power and hence will be provide with high end and comfortable services.

Professional travelers

Most of the services will be outsourced to professional traveling companies while JKBA a facilitator in joining the professional tourists with service providers. Outsource services that will be provided to this target group will also include training for trekking, raftingand camping and written material to brief of local cultures All services provided to this group will be made available on online traveling portals like Trivago, Booking.com, and Airbnb to attract international customers. Special packages for local flagship events like Shindoor polo festival will be broadcasted nationally and internationally at different tourism forums. This will serve as an initiative which will pose to improve the image of Pakistan as a tourism destination.

Brand Positioning

JKBA wants the customers to know that we will provide an all-inclusive package according to their budget. Using multiple promotional mediums (social media, postal emails for senior citizens and traveling blogs) will ensure that the audience perceives JKBA as a traveling consultancy frim which has a solution for e everyone. From high earning corporates to students, JKBA has a wide line of products and services which can be picked and choose as per requirement. Having the option of customization will give audience the luxury of tailoring their travel plan as per their requirement (from a range of traveling and hospitality options with and without meals/tour guides and other facilities).

Financial Projection

JKBA has planned to invest 5 million rupees as its initial capital. In the first year we set our target of sales to 5 million rupees and set a limit of 10 percent revenue on total sales. The details of different financial aspects are depicted in following charts:

• Chart: Sales Estimates (in Pak Rupees) for Next Five Years
• Chart: Revenue Estimates (in Pak Rupees) for Next Five Years
• Chart: Expenses Forecast (in Pak Rupees) for Next Five Years
• Chart: Break Even Analysis (in Pak Rupees) for Next Five Years

Controls

The local tourism industry has been growing rapidly over the last few years due to increase in the number of people going to northern areas during their holidays. With this in mind we intend our marketing programs to expand accordingly. The introduction of good newsletters and other sales literature will enable JKBA Tours to market to potential customers. We project sales to increase accordingly, though slightly slower as we establish a reputation for ourselves. With time, we intend to be at the forefront of customers’ minds with regards to travel excursions with adventure element.

Throughout the year we intend to undertake regular evaluations of our marketing programs so as to ensure that we are in line with our intended objectives. In summary we intend to undertake the following:

• Tracking Variables (KPIs): We intend to have the discipline, as an organization, to track results of the business plan and make sure that we implement it. As an organization we need to focus heavily on our customer satisfaction and in the same connection we need to retain our customers by providing excellent and comfortable services. Similarly, we also need to focus on our revenue as it the main element which will allow us to establish ourselves as a renowned service provider in the area. In this context we, will operate in our first year at very minimal profit or even at breakeven.
• Trigger Points: We intend to have the discipline to maintain the market segment focus. The most important in element in this context are our customers, when they are getting un-satisfaction from our services then we need to conduct thorough research to address the issue.
• Contingency Action: We intend to have the discipline as an organization to constantly follow-up on customers so as to ensure that we are meeting their expectations at all times. If not as discussed earlier then we need to revisit our complete plan and take corrective measures with immediate.