Smooth Ways Travel Company

Student name

Professor

Course

Date

Smooth Ways Travel Company

Business overview

Smooth Ways Travel (SWTC) will deal with the provision of planning of travelling services for European exploration holidays to the people of the Great Seattle region. The industry is growing at an alarming rate and is one of the growing business sectors of the economy. Smooth Ways Travel will take advantage of company’s achievements planning travel opportunities in the Pacific Northwest (Balhaajav 5).

Mission Statement

The mission of Smooth Ways Travel (SWTC) is to become the sole provider of exploration holidays for all classes of people. It results to building lasting relationships with clients through quality training and client support. It set to curve a niche as a leading exploration company in the Great Seattle locale. The main purpose and aim of the organization is to expand, grow, and become a profitable by the second year of operations (Balhaajav 6).

Business name and address

The business trade name will be Smooth Ways Travel (SWTC). The business will register with the registrar of companies and will lease a business space for its offices.

Objectives

Business Products and Services

The company will aim to sell 250 exploration holidays within the first five months. This will net $66,800 in commissions. This will compound the sale of insurance policies and other services. The services will includes briefing before vacations after vacations, travel insurance, directory of specific services to each destination and activity.

Financial

Year 1: Sales $1,419,500.

Net profit (before interest and depreciation) of $30,000.

Year 2: Sales $ 1,449,500.

Net profit (before interest and depreciation) of $ 49,600.

Marketing Plan.

Marketing objective.

Product mix: to separate and get new products and services into the market. The company will sell the existing products to new markets by introducing new uses for their product.

Targeting strategy: to target people of age between 24 years and 40 years.

Pricing: to maximize profits by considering cost and revenue.

Promotion: to make products and services known by advertising in the media and internet.

Market segmentation.

In order to allow the company meets specific customer’s needs, market segmentation is necessary. This will ensure that customers’ needs realized. These adopt the view that the market made up of customers which are the same and customers that are all different. The market that the company will sell to is European adventures. This will target professionals of age between 24 years to 40 years. The reason behind this is that it is an active group of customers who love adventures (Balhaajav 10).

Target market

The target market is the Great Seattle which is home for approximately 8 million people. Three quarters of the population fall within the target market. Seattle has an employment rate which is climbing at a higher rate and has become a world class destination place. It has grown and has considerable facilities (Balhaajav 15).

Target segment

The people of Seattle have education and deeply attached to the area. The economy, Northwest lifestyle, and its unique environment attract people. The target customers within the population are individuals who are professionals with earnings of $30,000 and above and aged between 24 years and 40 years. This group had chosen because they are the active population and still like adventuring (Balhaajav 25).

Market Research

Market research study by World Adventure Travel shows that the target group has needs. These needs not met sufficiently; 65 percent of those who want vacations would not get for the same price. 85 percent indicate that there is a lack of complete information of the destination, and 82 percent shows that there are no efficient administrative systems (Balhaajav).

Situation Analysis

The world travel market will grow at a rate of 4.1 percent annually. This is higher and faster than the economic growth rate which predicted at 2.4 percent per year. The European market will be the most notable destinations. Research shows that this account for 50 percent of international arrivals. This is why the company selected tour operators. The company is new in the market and intends to cut it niche and distinguish itself from those already in the market (Balhaajav 40).

Destination 1992 1999 2004 2011

Europe 0.25 0.60 1.60 2.35

North America 0.45 0.60 1.40 2.20

Rest of the world 0.10 0.25 0.95 1.10

Total 0.80 1.45 3.95 5.65

Destination 1992 1999 2004 2011

Europe 0.25 0.60 1.60 2.35

North America 0.45 0.60 1.40 2.20

Rest of the world 0.10 0.25 0.95 1.10

Total 0.80 1.45 3.95 5.65

Source: WATD Corp 1999

Competitor Analysis

The analysis of the market shows the needs of professionals not currently met. Europe is the largest destination for adventure vacations. Studies show that 30 percent of the target group is of 24 years of age. My competitors are Ferguson and Bardell, and Lakes & Sons. Furguson and Bardell is the strongest competitor of Smooth Ways Travel because it has a captured large market and long time in business. Despite this, the weakest point is the lowest press releases and undesirable location with difficult parking and small customer service space. They lack knowledge and expertise in European exploration, which is of high, value by Smooth Ways Travel clients. Lakes & Sons will be a formidable competitor for Smooth Ways Travel due to strategic site, well set enterprise, and elaborate training program (Balhaajav 50).

SWOT Analysis

Strengths strategies

Knowledge

Experts

Strategic location

Weaknesses strategies

Low customer base

Competitive Advantage

The advantage is that 65 percent of clients who use specialist adventure vacation travel agents will use them again. This criticized for having a wide range of activities and destinations not known by their sale agents. Research conducted shows that 61 percent of clients takes their vacation in Europe. Therefore, the experts we will be in a state, to have product knowledge. The cost conscious individuals under the age of 24 years is also catering to the backpacker market. This leads to different types of clients ending up in the same destination. This requires a much level of service and information. This also will enable the company to cut the niche by designing high quality products and services. It will also establish itself as a leader in adventure planning in Europe (Balhaajav 55).

Marketing Strategies

With Smooth Ways Travel expertise in European exploration travel, the company can create customized itineraries for its clients, and avail efficient transport service available. By availing superior customer service, the company is able to distinguish itself from its competitors (Balhaajav 70).

Marketing mix variable Strategy

Product

The Company will vary the product or services depending on the customers’ taste, preferences, and the market trends. This will keep the company at the bar with other competing companies. The company will expand and enter a new market in order to capture large market size. This has done after establishing a strong customer base (Balhaajav 80).

Price

The key aim pricing is to ensure that the client gets the best favorable price that is commensurate with the product offered, and price modifiers used. This will go to clients who are constant customers of the company. This will encourage the customer to keep coming, and let others know of the products offered. Product or service availed to customers by advertising, and using the internet (Balhaajav 88).

Promotion

The key factor is to create awareness and reinforce the brand in order to set identity and built a strong relationship so as to make the buyer a loyal customer. The promotional mix used will be sales promotion as this accelerates sales, and direct marketing as an immediate response received. The promotional methods can be integrated by using them together at the same time (Balhaajav 96).

Monitoring and improving Marketing and Operational Performance

Measures to monitor are sale, customer satisfaction, and market share. When the sales are down, it means that profits are low. Therefore one ought to check the problem, conduct survey to establish customer satisfaction, and do sales promotion (Balhaajav 120).

Operational Plan

This will vary depending on the divisions.

Division All

Unit All

Overall company goal- Will provide quality products and services

Strategic objectives

Built the culture of corporate team work

Maintain integrity and standards

Expand access to product and services

Endeavour to maximize profit

Objective Area goal Main/ Shared responsibility Means of assessment and criteria for success Summary of data Use of results

1 to maximize profits by considering cost and revenue main Sales per month 2 To target people of age between 24 years and 40 years main No of people in this age bracket Legal and Administrative Requirements

Registration with Inland Revenue, VAT, Data protection, National inland contributions, and business licenses for operation formalized (Balhaajav 154).

Business structure

Vertical structure adopted. This will ensure that there is a chain of command from top down the company (Balhaajav 155).

Regulatory Requirements

The operating name of the company will be Smooth Ways Travel. The name searched by the registrar of companies to ascertain that it does not exist, and registered. Other regulatory requirements which will be complied with are: Australian business number, Taxation obligations (Income tax, GST, Other),Council approval, Health and safety permits, Environmental requirements, Work Cover obligations, Obtaining a license to practice, Relevant industry codes of practice, Consumer protection legislation, Intellectual property legislation (e.g. patents and trademarks) (Balhaajav 165).

Insurance

The Company will seek to take cover by insuring against fire and theft, professional indemnity, and public liability. This will cover the business and its employees against risks (Balhaajav).

Risk Management

As an employer the company will adhere to the rights and responsibility of workers, occupational health and safety, and make sure the work place is safer according to OH & S. (Balhaajav 177)

Administrative Forms and Contracts

The following documents will be used: Agency agreements/contractual procurement rights, Employment agreement, Terms of trade, Partnership agreements, Confidentiality agreements, Consignment agreements, Supplier agreements, Lease agreements, Quotation forms, Policy for terms and types of payment from customers, and Contractual procurement rights (Balhaajav 200).

Business Operation

The business will be operating for 24 hours. This will be possible by employing workers such that they work on shifts. Clients will be free to contact the company any time they require services (Balhaajav 220).

Resource requirements

The Company will rent a space of 2000 square meters at a cost of $30,600 per year, Spend $ 25, 000 for refurbishing, and $ 4,175 on furnishing the office (Balhaajav 228).

Human Resources

The company will hire graduates with a bachelor’s degree in relevant areas. All staff undergoes full four week training at key travel destinations, new staff take travel agency psychometric test and have time with each member of staff (Balhaajav 250).

Use of technology

The Company will seek to invest in technology by ensuring that all sections of the company are computerized and link with internet connections. In addition, the company will have its own website where customers will be looking for any information required.

Evaluation

The Company will use HEPTALYSIS technique where following seven categories will be examined: Market opportunity, Product/solution, Execution plan, Financial engine, Human capital, and Potential return of organization (Balhaajav 290).

Financial Plan

The company plan to inject $ 41, 750 of money from their pocket. It will require a total of $ 83,500 of operating capital during early months of operation in the first year. The company will borrow $58, 450 from friends and families (Balhaajav 320).

Works Cited

Balhaajav, Booway. The Dynamic Business Plan. Cayenne Consulting, 2005.