Chapter 1 Introduction

1.1 Background
Nepal is the famous tourist destination for adventure sports and adventure tours in Asia. The topography of Himalayan Kingdom makes it the first choice for adventure tours. Being at the top of the world, Nepal offers a wide range of adventure tourism to those who takes their life as a challenge. The varied landscape has some of the best sites for these activities, raging rivers to run, mountains to scale, clear blue skies, challenging treks, fine lakes and rivers to boat, fish and raft down, and a wild terrain to ride. So there is a greater prospect of growth and profit in this field of business as a result opening an adventure travel agency is seen to be a lucrative business. Although lot more contribution from the government side is awaited in terms of development of infrastructure and ensuring a conducive business environment, private sector has been instrumental in the growth of tourism industry in the country.

1.2 Potentiality of Business
Zipper Adventure ( ZA) wi l l be gi n operations next year and provide adventure and sport/travel packages to peoples. An opportunity for ZA is poised to take advantage of the growth of domestic tourism and lack of direct competition with an experienced staff, excellent location, and effective management and marketing. ZA will provide services related to adventure sports like Bungee Jumping, Rafting, Mountain Biking, Paragliding, Rock climbing and trekking. The business aims to promote internal tourism as well which is still considered underdeveloped and untapped. Currently there are 2,669 tour guide and 1,765 travel agencies registered in the country. Most of these agencies cater to foreign tourists only. However, Zipper Adventure will be one of the few agencies providing adventure services to internal tourist also. In Nepalese market there are only few companies catering exclusively to domestic market Zipper Adventure will have only few direct competitors for the local market. Side by side ZA will focus on external customers also.

1.3 Company: “Zipper Adventure”
Registration The business will be registered under the company act as a Partnership company under the name of “Zipper Adventure” with its office located at Nag Pokhari. Once the

company is registered the next steps is to take PAN number that is Permanent Account Number from “In land” revenue Department.

1.4 Description of the Firm
Zipper Adventure (ZA) is a travel agency that specializes in adventure tourism and travel. It will provide consulting and custom travel arrangements and packages. ZA will position itself as a specialist in the field of adventure travel and will generate the majority of its income from this segment. ZA's employees and owner are outdoor adventure and travel enthusiasts. ZA seeks to connect adventure travel newcomers and veterans with service providers, adventure activities, and accommodations that fit the client's desires, budget, and skill level.

ZA is a full service travel agency that specializes in adventure travel and provides recreational and business travelers with professional service and consultation. ZA will position itself as a specialist in the field of adventure travel and will generate the majority of its income from this segment.
Table 1: Funds from Partners

Name of the owners Madhu Sudan Koirala Sudarshan Paudel Sanjit K.C. Shanku Ghimire

Amount (Rs.) 8,00,000 8,00,000 8,00,000 8,00,000

1.5 Vision
Our vision is to be the leading travel company of choice in Nepal through providing premier services and innovative options to all types of customers. During the first 10 years the “Zipper Adventure” concentrates on the Nepal. Later, in the future, the agency will spread its services to other countries in the world. “Zipper Adventure” is going to make Nepalese companies and their employees aware of the nature and the human impact of it. And to make them clear that the world they live in will never be the same if human beings don’t take care of it. Zipper Adventure even go for NGO for saving natural resource. It also brings various awareness programs in schools and in local level, in community level about the importance of resources and ways to generate revenues.

1.6 Mission
Zipper Adventure mission is to provide customers with the highest quality outdoor adventure, to provide warm, professional, and knowledgeable service to all clients, as well as to potential clientele. To provide a life time adventure expertise and learning to its customers through its exclusive packages designed for the participants and at the same time promote internal tourism.

1.7 Goals and Objectives
The idea behind the guided tours is to present different characteristics of the nature like three of the four elements of the world; water, earth and air. ZA will focus on these characteristics. Customers will entertain as well as helps to conserve these resources. They will participate in tours where they go through new and unique nature experiences. Some of the objectives of ZA are:   To establish as the leading adventure travel company in the country by 2015. To create a service-based company with mission t o exceed customer’s expectations.

To deliver the positive profit line from the first year of operation thereby giving the required financial base to move ahead in the competition and establish a strong brand.

 

Develop a repeat-business base of loyal customers in order to create sufficient sales. To establish an eco friendly adventure service providing company by ensuring that activities carried out by ZA will have minimum impact in the natural environment.

1.8 Values
What is important for the agency is that they keep a friendly work-climate, and that the people stay behind their idea namely to make the world more environment friendly. The agency wants to share their business vision with their clients. The agency promises their clients that the guided tours won´t destroy the nature. And the food the hotels will serve is free of any preserving substances and poison substances. The agency wants to bring people and nature closer to each other. The agency´s philosophy and slogan is: “Live Fullest Responsibly!”

1.9 Critical Success Factor
The keys to ZA success will undoubtedly be effective market segmentation through identification of several niche markets and implementation strategies. Along these lines the company intends to implement advertising, personal selling and direct marketing strategies to the target markets. Our personal selling marketing strategies will rotate around keeping in touch with hotels and travel agencies for major customers, and advertising for more individual customers. Hence our key success factors will include the following: 1. Excellence in fulfilling the promise: We intend to offer completely enjoyable, comfortable and informative travel excursions that will ensure that travelers are thoroughly satisfied and appreciative at the end of their trip.

2. Timely response to customers' requests: We cannot afford to delay our clients for whatever reason, as this will have a negative bearing on our image and reputation, including future business. Hence we need to be continually communicating with the client, including hotels and lodges so as to ensure that we are constantly available to the client meeting their expectations.

3. Solid and fruitful strategic alliances: Considering the nature of our services and our relative infancy on the market, we realize the importance of establishing and maintaining fruitful strategic alliances with various stakeholders, including hotels, lodges, and travel agencies, amongst others, so as be assured of a constant flow of customers, fulfilling their needs at every opportunity.

4. Marketing know-how: As a relatively new company on the market there will be a need to aggressively market our business and the services we provide so as to be continuously at the top of our prospective clients minds. This will also act as a temporary deterrent for companies contemplating entering our market. Advertising shall be undertaken on a regular basis.

Chapter 2 Assessment of Business Environment We have done SWOT analysis of Zipper Adventure along with its Environmental analysis. Operations and activities conducted by experienced instructors and expert guides with enough local knowledge. in form to guarantee an environment management orientated. 2. the firm has in respect to 0the environment.  Team work and Employee’s motivation: to be able to guarantee an environmental protection. .   Targeting market at niche level both nationally and internationally. Strengths:  A differentiated offering with the management experience. This will help to see what the competitive edges are.  Affordable prices. and commitment to make it work.1 SWOT Analysis SWOT analysis will scan the strategic environment and provide information that will h e l p the company in matching its resources and capabilities to the environment in which it operates. Effective promotional and advertising strategy through internet. use of computerized reservation system. capital.   Only company to come up with product offer exclusively for the domestic market.

Lack of good and thrilling entertainment facilities in the country thereby people opts for adventure holidays. Change in climatic condition. the agency have to convince companies to organize congresses with them and not with their competitors. wellness and nature all in one. Threats:      Competition from already established agencies that improve their service offerings to be more competitive. Lack of experience in operating this kind of business.Weaknesses:     Lack of visibility due to the newness of the operations. Inability to forecast perfectly the demand of services.  Growing trend of corporate houses and colleges in Nepal to organize offsite team building activities for their employees. Increasing monthly disposable income of middle and higher class Nepalese.   New business which incorporate work. . skilled guide. facilities and transportation. A lot of indirect competitors. Opportunities:    The growing trend of youngsters to seek out adventure sports. New name in the market so building trust will take time. Political instability and strikes affecting the operation. Higher interest about sustainable development by people. rules and regulation. Lack of safety.

2 PESTLE Analysis Business environment are normally beyond the organizations control. Due to increase in income level of middle class. The weak rule of law has led to a large number of strikes in Nepal. Like: Political Environment: Nepal had historically been a small peaceful country. now people wants to entertain and do adventurous activity.007% of GDP in 2008. According to the Enterprise survey 25. over 60% of the businesses in Nepal identifies political instability as the biggest constraint to doing business in Nepal. . The country where economy mostly depends on remittance does have influential effect in tourism sector too. If the inflation rate goes on increasing trend. They also present threat to the organizations success. In 2006. Due to change in exchange rate i. business potential and suitability of access. cost of operation and marketing expenses also gets rise. The FDI in Nepal. corruption as well as rule of law. Nepal also ranks very low on political stability. The lack of strong judicial system to protect investors only adds to this perception of risk. create jobs. increase tourist inflow and creation of major infrastructure in the country. slumped during the Civil war years falling to 0. The royal family massacre in 2001 and the Maoist movement from 1996 to 2006 were two events that destabilized the country and pushed it towards a spiral of political instability. US $. These factors always tend to produce an impact on the way the business organizations exist. They measure the growth and decline of business organizations in terms of market behavior. purchasing power of international tourist has increases but at the same time the inflation on services has also driven up. which was at low levels to begin with. a peace treaty was signed legalizing the Maoist. the monarchy was abolished and Maoist won the election of 2008.e. In 2008. Economic Environment: Economic conditions play a major role in the success of any business.2. These factors bring and create huge opportunities and positive approach. There are different environmental factors which do affect the business. Improvement in the economic condition of a country will lead to rise in industrial activities.

These factors affect customer needs and the size of potential markets.g.g. Government can lower VAT rate for the hotel sector or redeem 3% of the VAT paid by hoteliers taking into consideration the sector´s contribution in foreign exchange earnings and employment generation.” according to the global survey. lodging services and graded restaurants with government’s permission. The life styles of people are changing. and tents. Seeking adventure is widely prevalent amongst the foreign tourist which is being copied in the Nepalese younger generation as well. But up to 80 per cent foreign investment has already been accepted in hotel. but limited to 51 per cent. Further this generation’s spending has changed over time and they tend to spend more given the increase in their disposable income. techniques and the vast store of organized knowledge of ways of doing things.Societal Environment: Social factors include the demographic and cultural aspects of the external macro environment. ZA focuses on these innovation e. The advancement in Computer Reservation System. use of durable and high quality equipments like lighter mountain bikes made of aluminum. The younger generation especially students and young professionals prefer to take break from their busy schedule and look out for different holiday breaks of which one of them is adventurous sport. Technological Environment: Technological environment consists of the invention. The Government has already . however advancement in technological factors does impact the business. Although ZA will deal with adventure and nature where technology appears to play little role. strong and high quality rafts. E. Legal Environment: Nepal had committed to open up foreign investment in travel agency and tour operator service after the WTO membership. trade liberalization constraints in tourism must be acknowledged and differences between the SAARC nations must be rectified in order to reap the highest benefit of this growing industry. “Tourism industry will have the largest monetary turnover in the world by the year 2020. E-commerce and massive use of internet through smart phones both possess opportunities and threats. Thus.

strength as well as weakness. including resorts. This is in line with the government policy of opening foreign investment through the secondary market. tourism's relationship with the environment is complex. Competition and Buying Patterns Strengths and weaknesses of the competitors: The competitors in this market are of two primary types.initiated the effort of legal and procedural arrangements necessary for the implementation of the polices for permitting of up to 25 percent foreign investment on tourism (aviation companies and big hotels). both natural and man-made. shops. For this kind of business there might be potential competitors who might come up with similar travel agencies. Monitor the quality of nature-based tourism services and facilities. . Being the member of WWF there are clause that Nepal should follow. water resources (Power and drinking water). their skills. The limitation of 25 percent foreign investment and its scope could be further extended in future based on the experiences. and golf courses. and of tourism facilities. However. is essential to tourism. Modify legislation pertaining to tourism laws to include environmental protection clauses for natural areas. mines and mineral related industries and goods production and processing sources through stock market. Many of these impacts are linked with the construction of general infrastructure such as roads and airports.     Include aspects of ecotourism in national tourism policy. Ecological Environment: The quality of the environment. Work with private sector and international funding agencies to develop adequate tourism infrastructure at each site.3 Competitive Analysis There are and there would be competitors in the business. It is essential for every business organization to identify its existing and potential competitors. It involves many activities that can have adverse environmental effects. restaurants. 2. hotels.

The intense competitors can be Yala Adventure. cannoning. Some have been in operation for more than ten years. capital. etc. Their strength is their expertise in a given sport. . Adventure Nepal Ltd. In addition. They are familiar with local service providers and have established strategic relationships. Last Resort. and key personnel and management. Competitive Edge Zipper Adventure competitive edge is its focus. they do not have the resources.First. rock climbing. But like Zipper Adventure they do not concentrates solely on adventure packages which brings an added advantage over these competitors. Apart from these intense competitors other well known and established companies in the country will provide indirect competition to ZA.765 travel. Borderlands Eco Adventure Resort. The advantages these companies have include established reputations. ability or desire to target and/or accommodate a customer demanding more accommodation and a more luxury/adventure-oriented service. Companies that offer higher-priced. there is the adventure provider who specializes in a single type of hard-adventure activity such as white-water rafting. trekking. ZA seeks to promote and provide access to adventure sports and travel. Their weakness is that they provide an undifferentiated product in a competitive market. But the target market of most of these are foreign tourist visiting Nepal and though they provide services to domestic customers but they do not have core focus upon the domestic market which are of great potential and growing day to day. passion. It provides a differentiated offering with the management experience. and commitment to make it work. The activities are more along the lines of sightseeing and low-risk alternatives. and experience. more luxurious packages generally provide a "soft" adventure. trekking and adventure service providers in the country operating. There are about 1. Other adventure and trekking agencies also provide adventure events in general but we provide specific adventure related services. extensive knowledge of the industry. as they provide a similar nature of adventure services in this region.

Bungee Jumping 3. which translates into increased satisfaction for the customer.e. Mountain Biking 2. Soft Adventure Soft adventure activities are less physically demanding and more passive than their hard adventure counterparts. The total package under this category will include Mountain Biking. Hard and Soft adventure. Both hard and soft adventure involves active and athletic activities. This category of service will be targeted to young and energetic individuals who are ready to take the challenge of extreme adventure.Chapter 3 Defining Products/ Services Zipper Adventure is a full service agency and sells standard travel agency goods and services. and specialty focus on adventure travel. Hard Adventure: Hard adventure activities. Bungee Jumping. This will be a medium adventure package and will be targeted to individual and group of both young and old age category. White Water Rafting 4. The various blends of services are in the form of services which includes: 1. packages with variation as per the customer need and demand. Trekking 6. Paragliding 5. Rock Climbing and Paragliding. Rock Climbing Adventure travel is divided into two categories. Zipper Adventure will provide a specific range of service i. II. as the name suggests. . The value added of ZA’s offering is its knowledge and expertise. competitive rates. The package under this activity will consist of Trekking and normal Boating. I. White Water Rafting. generally consist of activities that involve risk and athletic competence.

A trip will take you over some of the best scenery on earth. Our partner organization has good quality imported branded mountain bikes. The world famous place after Switzerland and fifth best location (Pokhara) for paragliding situated here in Nepal. temples. They also provide an experienced guide and cycle helmets. Once they have left the Kathmandu Valley (they can put their bike on the roof of the bus and have themselves dropped at the edge of the valley) the road is quiet and it is a pleasure to cycle through the magical land so close to Tibet. . Bungee Jumping: This event will be done in The Last Resort. The ride takes about 6 hours with stops on the way. Marsyangdi.The brief description of our product highlights are as follows: Mountain Biking This event will take place on the Arniko Highway from Barabise to The Last Resort and is designed for the bikers that appreciate a few of life's comforts along the trail. monasteries. Tamur. White Water Rafting: At the foot of the Himalayan Mountains. lakes and jungle. Nepal is blessed with an amazing diversity of rivers. as you share airspace with Himalayan griffin vultures. Hence. the possibilities are endless! In fact. Beside this we can take them to the ride to other option like cycling from Kathmandu to Pokhara or Chitwan. etc one can achieve life time experience. paragliding can be a perfect alternative Adventure sport. eagles. From convenient ½ day excursions to full on 12 day river expeditions. This remarkable 500ft (160m) drop into the Bhote Koshi River gorge on the Nepal/Tibet border is the longest Free-fall in the world. Karnali. with so many river options like Bhote Koshi. Trisuli. with a fantastic view of the majestic Himalaya. Paragliding: Paragliding in Nepal can be a truly wonderful and fulfilling experience for the adventure seeker. the only bungee jumping spot in Nepal. The site of bungee jump in Nepal is considered among the best in the world. kites and float over villages.

Rolwaling. While talking about soft it is easy. The breathtaking mountain scenery and the beautiful ethnic villages justify the popularity of these trekking. lunch. jungle safari at Chitwan. 15 days trekking (both for International and Local tourist) ABC trekking. Rara Lake. Beyond that ZA will also provide counseling and learning lessons for new comers. The Great Himalaya Trial. etc are the bestseller trek among all other trekking tours. Rolwaling. Dolpo trekking. Khasa visit. etc. ZA provides rock climbing experience those who wants to learn climbing and planning for climbing high cliffs. But hard trekking involves l o n g r o u t e and involves high climbing. 3 days gold package (both for International and National tourist) consist of Bungee/Swing. rafting fee and raft guide fee. The packages might be:      One day rafting package (especially for Local tourist) consist of transportation. Helambu trekking and Chisapani mountain biking. Lumbini visit and many more. Rock Climbing: There are some terrific. dinner and BBQ charge. Shivapuri water shed. it has enough walking along streams and forests for those who are looking for few days close to nature. Annapurna Base Camp. Rafting at Sukute Beach. . dizzying places for those who get their kicks from crawling up vertical cliffs. Two day rafting package (especially for International tourist) consist of transportation.Trekking: This short trekking trial and long trekking trail both will be provided. lunch. Kakani are some places near Kathmandu where ZA takes its customer for climbing. The trek service includes both hard and soft. rafting fee. tent fee. breakfast. Mustang. 6 night and 7 days package (both for International and Local tourist) consist of paragliding at Pokhara. rock climbing has found increasing popularity among the tourists coming into Nepal as well as for local enthusiasts. Of late. guide fee. There might be variation in services. Nagarjun Forest.

Nowadays there is growth in domestic tourism. Natural resources. Dhulikhel.Chapter 4 Marketing Research and Analysis Marketing plays an integral role in the start-up and daily operations of any business. Makwanpur. Travel industry is an upward growth industry. now more and more Nepalese people are opting and showing interest for such adventure sports. 4. On an average. Therefore.. this also help for sustainable development of Nepal. Gorkha . .000 to 60. Nagarkot. That’s why ZA should focus on promotion of domestic tourism too with affordable domestic tour packages. not foreigners. Palpa. Pokhara. There are a number of destinations that are mainly visited by domestic tourists. marketing plan can help to achieve this goal. target and cater to the needs of this market exclusively. about 50. So this will be an opportunity for ZA to focus. ZA can not only develop international tourism but also focuses on internal tourism In Nepal.1 Market Description Previously there used to be only international tourist going for adventurous sports. Major destinations for domestic tourists are Kathmandu. One theory of the recent increase in extreme sports has to do with the strong competitive nature of younger Nepalese generation highly influenced by western trend of enjoying extreme adventure activities. Zipper Adventure has a product/service that consumers want and are willing to purchase. Like any other business. As Nepal has natural beauty with diversity in cultural. Chitwan. Languages.000 domestic tourists travel annually to Pokhara and Chitwan. As the arrival of international tourist in the country is increasing year by year so most of the competitors will be busy focusing their marketing and products offering to the foreign customers as a result the vast domestic market potential will remain fully unutilized and uncovered. Muktinath. Tatopani Border and all the pilgrims & historical sites. Lumbini. and Zipper Adventure is no exception. segment the market. With this Domestic tourism we can boost up the living standard of local community. Adventure travel is a growing segment of the travel industry. Life style.

purchasing power and buying behavior of the customers. Income: The package’s fee structure is set by keeping mind the income level of the people.1 Geographic Segmentation The target consumers for ZA will be travelers across the globe. Gender: Both male and female falls under the market segment as both have shown interest in such adventure sports and extreme activities.2. 4. the target customers group will be young to middle aged. The affordable fee structure is provided so that from the middle income and high income people can get our service with quality i. Customers look to the agency to provide them with sound advice for a competitive price. 4. gender.2 Market Segmentation Zipper Adventure has a focus on meeting the adventure need for the people around the world. people having monthly income of above Rs. demands are also different.4. . the market has been segmented into geographic and demographic segmentations. 4.2. and help to ensure that they are satisfied with their vacation. Age: People between ages 20 to 45 years will be targeted as the potential customers for the adventure packages. 000. According to the difference in need.2 Demographic Segmentation While segmenting the market for adventure seekers the demographic variables used are age. and income. Given the types of services offered. ZA is confident in its ability to do so. Part of the value associated with travel agencies is the knowledge they possess about destinations.3 Market Needs Many potential customers are unsure of the location they wish to reach. Time is a precious commodity.40.e. Based on this difference. ZA can save the customer time and money.

There are two types of packages the hard adventure package which will be targeted to energetic people who want to explore and enjoy the entire thrill in their life and another soft adventure packages which will focuses to those people who are risk averse and of old age.4. We take Yala Adventure as major competitor.4 Target Market Zipper Adventure will be catering to the needs of both domestic and foreign customers. The Number of customer deal by Yala Adventure (Yearly) is as follows: Table 2: Total customer inflow of Yala Adventure and ZA’s target Month January February March April May June July August September October November December Total Yala’s Customer Inflow (Average) 35 45 70 75 80 105 160 220 350 320 245 208 1. Its target segments will be professionals and employees of corporate organizations. While talking about how ZA will target market is based upon Competitor’s customer flow.913 Zippers’s Target Customer Inflow 10 15 23 27 32 38 45 62 70 65 56 32 475 17 . students of college and universities.

According to the NTB. there has been a decline in arrivals from other Asian countries. 3 June 2012) 18 . Germany. Russia and Czech Republic remaining positive. rose 10. the Netherlands. 2012.1 percent to 20. South Korea and Singapore. arrivals from the South Asian countries were up 13. However. Table 3: Arrival Growth (Source: The Kathmandu post. India. The improving condition of the political situation of the country and the tourism policy of the government will also help to find more customers. arrivals from China. one of the fastest growing tourist markets for Nepal. mainly Thailand. recorded a robust growth of 16. Similarly. Poland. An overall growth of 8.5 Market Growth Not only is the growth of foreign tourist the growth of domestic tourist also increasing which provides huge potential.4.9 percent in May. which constitutes the major market for Nepal. Sweden.138 visitors.3 percent has been observed from the European market with arrivals from the UK.2 percent. Spain.

for building a well developed marketing plan. 5. ZA will promote the benefits of adventure travel which include better health. ZA would like to be positioned as a company that meets the needs of both domestic market and foreigners with an affordable rate and service with topmost quality. 19 . A marketing plan solidifies the marketing strategy by defining customers. and marketing objectives. ZA offers the ability to get away and remember how much they love the challenge and excitement of an athletic endeavor. relationships and networks. Marketing will help in:   Attracting new customers by ensuring quality services. Talking in a very broad way. ZA is the premier adventure travel agency in the Kathmandu. value. It synthesizes market research and the entrepreneur’s strategy into a blueprint for action.2 Market/ Growth Strategy ZA adheres to the theory that the goal of business is to create and keep customers. Its marketing strategy will reflect this goal as it builds its reputation in the tourism market. The service will be delivered through expert and professional guides who have the expertise. Zipper Adventure with its service focused solely on adventurous activities will position itself as a provider of life time adventure experience. Though ZA operates in the travel and adventure industry. and a whole lot of fun. costs and satisfaction. product. ZA provides adventure and freedom. and advice it provides for the customer. company should consider marketing which will help in building profitable relationship with its customers. ZA's experience with and enthusiasm for adventure travel is displayed in the exceptional service. it provides much more than travel.1 Market Positioning For any individual who wish to participate in adventure travel. we as a marketer are going to rest upon following core concept: demands.Chapter 5 Marketing Plan and Strategies To be successful. exchange and transactions. value. experiences and deep local knowledge. excitement. 5. sales forecasts. To keep and grow current customers by delivering satisfaction to them.

ZA seeks to establish distribution capability on the World Wide Web.2. As such.2 Distribution Strategy ZA's distribution strategy will focus on the target market all over Nepal. 5. what they do. pricing will be gradually raised to command a premium. paragliding. Once our brand will be known and positioned in the mind of people and overall market. 20 . ZA will repackage its product offer through combination of different adventure sports into a package form. etc separately so our adventure packages will be indistinct. the Internet will serve as an appropriate and effective medium of communication. This will enable us to offer a production differentiation in the market. and travelers in general. The CRS (Computerized Reservation System) will enable the customers to make their direct booking for the packages of their choice. Doing so will improve ZA's ability to establish a national reputation. There are numbers of other agencies involved directly or indirectly in this line of business.2. Research suggests that many of our target customers. work. Information has been located detailing profiles of both hard and soft adventure travelers. Travel and Adventure industry is already an overcrowded industry. Along with low cost. Thus.3 Communication Strategy Customers will be reached through traditional marketing communication methods along with latest web based technology.1 Market Penetration In N epal . are Internet savvy and many adventure travelers purchase over the Internet. This differentiation will help us to attract more adventure seeking people. Our main market is concentrated for both domestic and foreign market. 5. rock climbing activities. ZA will also build relationship with other third party agencies for business referrals on commission basis. cycling.2. it will adapt differentiation strategy as there are no other agencies providing the adventure packages as provided by ZA.5. Here most of the travel agencies provide only individual services like trekking. Zipper Adventure will take up an aggressive market penetrating strategy initially by lowering its pricing to capture the market share. etc. where they live.

5. We hope to promote out of season services through frequent customer contact. the company will also tie-up with selective colleges. objectives. the highly visible nature of the service process and the simultaneity of the production and consumption.1 Product/Services The Zipper Adventure (ZA) will be providing two different adventure packages to its customers namely. Clients will be pleasantly surprised at how attentive and careful ZA is in regards to their needs. and personal selling. The business operates on the assumption that it will do whatever is reasonably necessary to keep the customer happy. mailing lists and direct mail. 5. mission. Information about the company will be providing through its own website where company details like profile. Hard Adventure Package and Soft Adventure Package. Using personal relationship. Sales will be extended into the national and global markets. long term relationship and long term profits is ensured. Apart from providing information through brochures and fliers. universities and corporate houses to sell the adventure packages. contact numbers and reservation form will be posted.ZA will likely use trade or special interest magazines. vision.3. The need for the extension is due to the high degree of direct contact between the adventure service providers and the customers.3 Marketing Mix Service Marketing Mix The service marketing mix consists of 7 P’s as compared to the 4 P’s of a product marketing mix. ZA will carry out on the site presentation and briefings where required. products and services. address. Table 4: List of Product/Service Hard Adventure Package 1 2 3 4 5 6 Mountain Biking Bungee Jumping/Swing Rafting Trekking Rock Climbing Paragliding 21 Soft Adventure Package Sight-seeing Boating Soft Trekking Bird Watching & Jungle Safari Elephant ride Pilgrim Visit . This reflects the notion that if the customer is kept happy.

5. This will provide the advantage over cost due to which ZA will pass on the benefits to its customers initially to arrive at lower pricing. we will be in the introduction phase of the product life cycle of the product where we will mainly focus on brand awareness and invest in different promotional tools from the introduction. This will also address the price sensitive psyche of Nepalese market.3.) 30.500 5. ZA will focus on low cost strategy at its initial stage to establish its customer base. However. As for our service. Only few of the activities will be outsourced. customers will not mind paying a premium plus price. for which ZA will go with the cost base pricing.) 21. The pricing will be structured slightly lower that what market offers as a market penetration strategy. the business will steadily increase its pricing once it establishes at a later stage considering the effect of inflation in the economy.3. Kathmandu from where the overall business will be managed.000 15. Further with the emphasis on service quality and safety.2 Pricing Our company will focus on low cost strategy at its initial stage to establish and strengthen its customer base. other than that most of the activities will be carried out by itself.000 Price of Zipper Adventure (Rs. Tribhuwan International Airport (TIA) is also located nearly which is the major route of tourist inflow.000 20.3 Place The office of Zipper Adventure will be located in Nagpokhari. The total package offered will be new to the domestic market giving additional value to the customer. 22 . Table 5: Comparative Price Analysis Package Hard Adventure Soft Adventure Price of Yala Adventure (Rs.

Besides this. expert guides and professional instructors will be trained and educated to provide maximum fun and adventure to the participants.5. the website.3. finance. accounts.3. The ground operators. 5. Company’s own website will be created to provide full information and facilitate application. creating a page in the Facebook will also help in letting people know and build interest about ZA.4 Promotion Zipper Adventure will be establishing tie-ups with corporate houses. The office premises will contain clipping. etc will also be used to advertise about the service offerings. These staff will comprise of both part time and full time employees. brochures and fliers. One type of staff will manage their daily office tasks/administration roles like sales and marketing. ZA will provide literature with information about the trips and activities. The atmosphere of the office. Another type of staff who will be the expert professionals and guides will manage the ground operations of the two adventure services.3. We will provide various travel packages and other items as prizes as well in that small event. etc and will be full time employees. pictures and photos of adventure activities to excite the customer/visitors. colleges and universities to promote and sell its adventure services.5 People There will be two types of qualified people working for the company. Other media like print media (Magazines and National dailies). During ZA’s first year of operation it will hold a grand opening. brochures and advertisements will be designed to reflect that ZA is a quality adventure provider.6 Physical Evidence We will provide the message that ZA is there to provide and meet the thrilling fun and adventure to its customers. 5. 23 . During the grand opening and other events. school.

ZA seeks to promote and provide access to adventure sports and travel. Establish ZA's reputation as a differentiated.5 Marketing Budget ZA will provide advertisement shots in college magazines and national dailies. ZA will rely on Computerized Reservation System (CRS) for client reservations. 5. passion. specialty provider of adventure travel.5.4 Competitive Edge ZA's competitive edge is its focus. Aggressively promote adventure sports as healthy and exciting activities and those who participate in them as pioneers. ZA will adopt the following strategy: 1. ZA provides a differentiated offering with the management experience. Prospective customers can directly book the package of their choice through office visit. Provide unparalleled service to the people in order to gain repeat business and build trust. This will include providing superior service in all phases of the transaction. Booking can be made on-line through the company’s website.3. phone calls. This will be accomplished through a diverse marketing communications program at ZA's target market. and experience. 5. including timely follow-through. utilizing various media. It also increases the speed and efficiency with which ZA can communicate with suppliers. 2. and commitment to make it work. As a souvenir two badges with ZA logo and adventure pictures will be provided to the customers. and true Nepalese citizens. In order to reach its goal of becoming the Nation’s premier adventure travel agency. Brochures and fliers will be created for distribution during promotional activities and placement at office and strategic locations.7 Process ZA will be focusing on making the overall process hassle free. Promotional campaigns like presentation and briefing at customer location will also be used. fun and a life time of experience for the customers. heroes. To meet the marketing cost ZA 24 . capital. The CRS enable travel agencies to identify what the customers is looking for and make that information quickly available. 3.

colleges and universities are being established the flow of potential customers will rise.63.960 1.will allocate first annual budget of Rs.36. The growth rate of clients will remain constant after the year 3rd i.e.950 1.50. Though there is no any record about the flow of domestic tourism in the country. 34.500 1.580 87.25.000 from Hard Adventure package and Rs.36.000 60.77.11. The pricing is derived after calculation of total direct cost per person plus the margin.765 1. annually more organizations. here. 52.37.12. Similarly.87.750 67. Of Customers Growth % Customers 2013 2014 2015 52.530 34.50.000 annually for its marketing activities.39. amount etc is given in Annexure 3 (Table No 12). The pricing has been slightly lower than the market to make it attractive and as a penetrating strategy. 2. Table 6: Annual Sales Forecast Year Hard Adventure Package Soft Adventure Package Total Service Revenue Revenue Growth % No.99.139 49.407 55. 5. In the first year total person to be received is projected to be 250 in the Hard Adventure Package and 225 in the Soft Adventure Package which arrives at sale of Rs.00.38.87. A detailed breakdown plan of the marketing budget incorporating type.904 11% 587 6% 2017 83.367 11% 622 6% .00. 5. from 2015 due to the increased competition the growth rate is expected to stabilize.06.70. The number of customer received is projected based on the study of competitors’ yearly turnover and the projected impact of the advertisement and promotional campaign which ZA will run to increase the awareness and attract the potential customers.500 from Soft Adventure package.110 16% 11% 475 523 554 10% 6% 25 2016 75.72.00. As on the later years ZA’s image and brand will be positioned itself the budget on marketing will be reduced as a result advertisement in the national daily will be discontinued. frequency.200 44.500 40. the number of clients is assumed to grow by 10% in the year 2013 because annually people are showing more and more interest in such adventurous sports.000 and thereafter Rs.38.6 Sales Forecasting The sales forecast is made taking into account per person pricing charged for a package.60.

For this a moderate office plan is required. marketing. All administrative and operational functions will be controlled from here. The office will contain important business units like finance. Initial rental agreement will be for a period of 5 years and renewal thereafter on mutual agreement basis.2 Layout Design The office will be the main physical contact point. Kathmandu. 6. Wash Room E Director Room MD Room Operation & Marketing Department Customer Service Department Account Entrance Sofa Figure 1: Office Layout 26 . 6.000 sq. operation. and reception lobby. People will find it easier to come to this location as it is centrally located and is easily accessible.ft.1 Office Location  The main office will be operated from Nagpokhari.Chapter 6 Operational Plan Zipper Adventure is a service oriented business providing adventure sports service to the clients. The office area will cover maximum area of 1. We deal primarily in providing services and assisting customers and in experiencing the life time adventures.  The office will be operated on a rented area.

Hard Adventure Package and Soft Adventure Package.6.3 Process of Service Delivery Zipper Adventure will be selling two adventure packages namely. Customer Hard Adventure Choose Soft Adventure Choose from: Mountain Biking Bungee Jumping Rafting Paragliding Trekking Rock Climbing Choose from: Boating Site Seeing Jungle Safari Bird Watching Mountain View Pilgrim place visit Departure to destination Departure to destination Actual Activity Actual Activity Return to KTM Return to KTM Figure 2: Flow Chart of Service 27 .

life jackets. So the rest of the months will be spent on marketing. These events will occur continuously and will occur for 5 days. The inventory of equipments will be handled by Operation Manager. Chitwan. cooking materials etc.) to see the scenic beauty a n d g a i n a d v e n t u r o u s e x p e r i e n c e .Hard Adventure Package: The total package under this category will include Mountain Biking. The equipment will consists of tents. Rafting will be followed by Paragliding and finally rock climbing. promotion and soliciting of business. But there might be adjustment with packages if any of customers required in their way. This period will be utilized for other internal works. boats. for 8 months as the rest of the months will be rainy season. trekking equipments. Lumbini. Kathmandu. White Water Rafting. Inventory and Equipment Requirement ZA will maintain its own inventory of most of the necessary equipments. The office will be off on Saturdays. crockery. This will be a medium adventure package and will be targeted to individual and group of both young and old age category. The event will be initiated with cycling then Bungee Jumping followed by white water rafting. This event will take place in different places of the country as per the demand of our customers like (Pokhara. The package under this activity will consist of Trekking. Rock Climbing and Paragliding. Illam. Other additional needed equipments will be outsourced from a reliable and reputed store available in the market under special contract.e. 28 . etc. Nagarkot. Bungee Jumping. Operation Time: The office will operate 6 days a week from Sunday to Friday from 10:00 am to 6 pm with lunch breaks from 1:30 pm to 2:30 pm. rock climbing equipments. Soft Adventure Package: Soft adventure activities are less physically demanding and more passive than their hard adventure counterparts. The peak season for ZA will be from October till May i.

29 .5 Capacity Planning Zipper Adventure will ensure a proper capacity planning. To boost repeat business we will be taking care of customer’s changing and new requirements and taking into consideration their need we will be also adding new product lines of adventure sports in our packages in coming year. The company will also recruit a first-aid expert who will move along with the group to provide first aid treatment in case of need.6 Quality Management The company will be focusing all its resources and expertise to provide quality life time of adventure service to the clients so as to ensure that they come back to us for repeat service and also refer us to other prospective customers. 6. cook. Our service will be offered in terms of two different adventure packages i. rock climbing trainers.6. porters and helpers. capital and network the number of service are limited but with the passes of time the number will increase. 6. There will be trekking guides. The capacity of the company to handle maximum group will be different for the two packages. rafting guides. as there is no any better advertisement than the word of mouth advertisement from a satisfied customer. In the case of Hard package. it will be capacitated to handle maximum of 3 groups in a month however in the case of Soft package the company will not handle more than 4 groups. hard and soft adventure packages.4 Resource Management Zipper Adventure will maintain team of experts to guide. In beginning years due to lack of experience.e. assist and support the participants in the journey. Each group or package will consist of 12 to 15 numbers of clients.

vi. Response: We will also provide services as per the customers’ request. We will also look at the customer’s feedback and improve it. Environment: The office periphery will be kept neat. ii. iv. Database Management: Zipper Adventure will keep a computerize database of all its customers for future reference and network relationship building. At that spare time they can enjoy hot and cold beverage. well maintained and not out dated so that there is no unwanted risk from the use. Maintenance: The materials and equipments used will be kept in order. Proper Agreement: ZA will be in place with any outsourced or external stakeholder so that the service and products received from them is well within the standard and the expectation of the company. vii. iii. Prompt Service: The company will ensure that right service will be provided to the customers promptly without making them to wait for n o t more than 1 5 m i n u t e s i n any of its touch points within its control. tidy and attractive so that the clients feel comfortable to visit in and get to know about our service profile. watching TV in our customer waiting lounge. The office will have a full time cleaner for daily regular cleaning and maintenance of the office.Zipper Adventure will ensure quality management on the following areas: i. Training and Facilitation: Staffs of ZA will be provided with the necessary and regular training on enhancement of customer’s service. 30 . v.

In addition we will be employing first aid health care taker in case of any mishaps while in the adventure trip. Rest two will be more silent. In total 11 permanent staffs in the organization. The detailed organizational structure of the company is given as follows: 31 . Courtesy: The staff members will be polite to the customers and will also be trained to handle complaints and handle clients with love and care. One will be responsible for the overview of the overall technical and ground operation side of the company. Two managers will be hired who will assist both the directors in managing the overall business of the company. 6. Every group members will be insured for every package to ensure their risk of loss in case of any. The managers will be delegated with appropriate authority to take vital decisions on finance and operational aspects.7 Organizational and Management Plan 6. Security and Reliability: We will assure our service to be off utmost quality taking into consideration the security essentials of our clients. Our trekking guides.viii. administration. marketing. finance and daily operation. ix.7.1 Organization Structure Out of four. two promoters will be the major decision makers in the overall management of the company. rafting guides will be well experienced in guarantying for the secure trip and adventures. while the other will be responsible for all the policy planning related matters. Both the directors’ consent will be required to take major decisions of the company.

Executive Director Managing Director Operation Manager Finance Manager Marketing Officer Trekking Guide Rafting Guide Cleaner Accountant Receptionist Driver Figure 3: Organization Structure 32 .

receptionist. Permanent field guides will be paid extra field allowances in addition to monthly salary. cook and helpers) will be hired on part time basis. trainers. Remuneration package will be reviewed on annual basis and compensation will be provided to those who perform well in annual performance review to ensure talents and enthusiast are motivated and retained. finance managers. Advertisement in the daily post and websites will be given for job vacancy and recruitment of resources.7. All other types of resources (additional guides. Selection will be done on the basis of review of qualification (Minimum Criteria is Master Degree for manager position). experience.7.6.2 Recruitment and Selection There will be two types of staffs working for the company. 33 . reference letters. communication skills and completion of face-to-face interview. Field guides (Trekking guide & Rafting guide) may be of both types depending upon the business flow and seasonal situations.3 Remuneration and Compensation System Permanent staffs will be paid on the monthly salary basis and the part time staffs will be paid on daily wages basis depending upon the services rendered. marketing officers. Permanents staffs will be hired for post like operation managers. The payment of annual salary has been shown in detail in Table No 13 (Annexure 3). etc. Education and coaching on customer service will also be provided to front end sales and operational staffs on periodic basis to handle and serve customers. porters.7.4 Training and Retention Plan Adequate training will be given at least once a year to all the staffs involved in ground operation to equip them with capabilities to provide better customer service. 6. accountants. 6. permanent and the part time.

000 2.500 30.40.500 1.000 5.000 90.000 30.000 2 4.000 25.500 50.000 5.) 1 12.000 20.000 1 7.660 10. 7.40.000 Total Cost (Rs.500 2.Chapter 7 Financial Plan This section details the calculations.440 14.000 25. Life Jackets 35 Computers Printer Television DVD Player Furniture (Sofa Set) Table (Director) Table (Manager) Reception Desk Tea Table Revolving Chair Simple Chair Filling Cabinets Telephone Set Fax Machine Photo Copy Machine Gas Stove Gas Cylinder Utensils Tea/Coffee Vending Machine Vacuum Cleaner Working Capital Total Per Unit Cost (Rs.000 7.000 16.20.000 20.000 85.000 30.000 9.000 12.000 8.29.000 5.500 50.) 12.000 2.000 40.10.000 34 .000 33.000 5.000 25.440 1.000 20.000 16.1 Capital Requirement Table 7: Capital Requirement Fixed Assets Units Vehicle (Maruti Van) Tents (Dome Tent) 10 Toilet Tents Rafts (Boat & Paddling ore) Music System & Other Equip.000 25.000 2.000 87.330 4 1 1 1 1 2 2 1 1 2 5 5 4 1 1 2 2 1 20.00.700 4 2.29.000 62.000 12.500 10.00.500 1.500 25.000 12.000 2.500 20.000 85.000 32. assumptions and methodology used as a basis for the projections of the expected financial performance of Zipper Adventure.400 8.

7. The investment will be made on 10%.00. 35 .00. 32.The business will be established with a paid up capital of Rs. Similarly the depreciation on fixed assets has been shown in Table No 15 (Annexure 5).000 8.000 in fixed assets. The table showing the fixed assets used in the company have been included in the Table No 14 (Annexure 4). Tax rate is 25%.00.3 Fixed Assets The company will invest Rs. Most of the important fixed assets will be acquired in the beginning of the year in order to support the business operation smoothly. Table 8: Capital Structure Capital Structure Madhu Sudan Koirala Sudarshan Paudel Sanjit K.000 7.2 Assumptions      Cost per person and price per person has been raised by 5% keeping in consideration the inflation factor.00.000 8.00.a.000 8.000 32.00. Here diminishing balance method is used for calculating depreciation.C. The sales will increase by 10% p. 30. Shanku Ghimire Total Percentage 25% 25% 25% 25% 100% Amount (Rs.) 8.000 form equal proportion of four partners.00. The depreciation will be charged 20% on trekking equipment and 15% on office equipment under Diminishing Balance method.

6.942) 2. the expenses have also increased due to the inflation.29.000 11.54.05.84.14.7.603 1.18.13.46.99.675 3.34.025 469.12.495 14.640 87.83.63. Gross profit margin is 37.45.705 4. Though net profit after tax is negative in the first year of operation i.916 61.100 4.625 33.85.871 35.46.14.005 4.79.10.740 39.766 23.916 2.11.124 52.87.030 43.71.37.000 7.800 3.884 36.953 19.729 1.72.388 10.996 37.e.25.417 39.00.08.76.37. 87.517 60.875 2014 1.20.875 in first year.343 38.000 2.74.050 2.46.39.817 20.66.76.91.244 244.000 2.110 69.06. We can see in the income statement for the five years that there is increase in the service revenue.000 15.07.759 2017 1.800 36.758 4.942.950 62.37. loss of Rs. the projected income statement shows that our Net Income is increasing every year.86.187 6.691 21.076 41.76.23.500 5.72.243 36 .97.09.942) Add: Interest on Investment (10%) Earnings Before Tax (EAT) Less: Tax @ 25% Net Income After Tax (6.24.29.994 2.498 8.4 Income Statement The company is projected to make total sales revenue of Rs.59.548 42.976 377.56.45.20.38. Table 9: Projected Income Statement Particulars 2013 Service Revenue Less: Cost of Sales Gross Contribution Margin Less: Operating Expenses Personnel Cost Rent Expenses Utility Expenses Equipment Maintenance Cost Other Operating Expenses Depreciation Total Operating Expenses Earnings Before Interest & Tax(EBIT) (6.07.000 6.41.25.31.07.562 2016 1.30.651 11.34.375 303.37.517 1.463 5.500 54.145 47.37.990 37.904 77.513 2.500 and gross profit of Rs.10.632 38.045 22.66.603 3.942) 0 (6.129 5.86% which is supposed to be satisfactory in Travel business.690 3. Increase in the clients and charging of premium has contributed to growth in profit.994 80.63.203 2.23.84.37.607 2015 1.441 4.33.367 86.

83.500 11.463 5.76.45.90.53.513 2.28.880 13.805 2016 2. the company is expected to have satisfactory cash position.92.441 4.838 10.296 1.388 60.29.59.675 3.904 80.950 1.19.000 54. Excess cash is projected to be invested in short term securities to generate additional revenue for the company.533 1.124 23.14.26.00.14.10.296 11.26.39.128 11.625 19.23.050 2.791.46.92.729 94.99.500 1.00.343 20.025 1.758 4.02.26.85.6 Cash Budget As per the projected cash budget.52.643 69.533 6.375 2.63.92.44.14.01.942) YEAR 2 (6.37.72.01.633 8.709 77.07.805 8.29.00.128 YEAR 5 8.800 36.5 Statement of Retained earnings: Table 10: Statement of Retained Earnings YEAR 1 Beginning Balance Add: Net profit Ending balance 0 (6.548 21.38.00.37.942) 1.65.06.080 7.755) YEAR 3 (4.129 1.91.26.72.43.100 4.892 8.000 3.651 1.13.690 3.18.000 2.203 2.45.04.475 37 .63.99.79.000 7.244 3.110 60.46.79.12.953 20.000 1.20.52.20.37.025 61.990 37.367 1.145 22.41.46.74.475 1.45.11.498 1.76.97.800 3.37.663 86.740 39.37.187 (4.71.880 32.25.296 2017 3.06.425 62.31.500 30.633 YEAR 4 60.7.01.000 2.000 87.782 17.000 1.705 4.976 1. The detail of cash budget is provided in the following table: Table 11: Projected Cash Flow Statement Particulars Receipt Beginning Balance Equity Sales Revenue Interest on Investment Total Receipt (A) Disbursement Fixed Assets Cost of Sales Personnel Cost Rent Expenses Utility Expenses Equipment Maintenance Cost Other Operating Expenses Tax Payment Total Disbursement Cash Surplus(Deficit) Investment in short term Securities Ending Balance 0 0 2013 2014 1.495 8.00.533 2015 2.942) (6.413 14.755) 5.01.00.87.000 2.86.34.90.47.005 4.14.805 1.030 43.46.000 1.00.076 41.10.475 1.46.000 2.000 4.

63% 25.26.00.000 25.52.000 30.7.90.00.37.080 From the above stated five years projected balance sheet.805 3. 7.7 Projected Balance Sheet Table 12: Projected Balance Sheet Balance Sheet of Zipper Adventure 2013 2014 Assets Current Assets Cash Investment in Short Term Securities Total Current Assets Fixed Asset Less: Accumulated Depreciation Net Fixed Assets Total Assets Liabilities & Owner's Equity Capital Stock Retained Earnings Total Liabilities & Owner's Equity 2015 2016 2017 1.54.46.26.45.128 52.80.67.00.90.65.127 10.47.633 32.65.831 40.28% 2017 8.00.01.62.60.45.942) (4.74% 2015 4.000 30.57% 16.000 8.583 25.75% 2016 6.880 30.92.32% 38 .000 1.04% 15.533 16.90.36.000 30.633 25.79% 6.8 Projected Key Financial Ratios Table 13: Key Financial Ratios Ratios Net Profit Margin Return on Equity Return on Assets 2013 -7.45% 36.83% 5.000 (6.000 32.30% -19.288 14.475 8.92.000 5.00.00.079 32.46.00.00.32.000 32.60.19.801 24.058 27.00.00.94% -24.47. it helps to show the real financial position of the company over the periods.417 10.000 30.296 4.296 42.755) 60.63. Here.245 32.000 14.880 6.45.90% 2014 1.533 2.72% 22.805 28. it can be seen that that the cash balance has been boost up throughout the periods.000 38.199 52.245 15.15.00.65.633 12.172 17.128 20.080 40.475 2.00.000 32.92% 20.169 19.828 32.84.00.00.712 27.058 19.01.62.

39 years 39 .9 Project Analysis Payback Period Table 14: Payback Period Years 0 1 2 3 4 5 Cash Flow (53525) 655058 891272 1133491 1419585 Cumulative Cash Flow (53525) 601533 1492805 2626296 4045881 Payback Period = 4.7.

etc. Equipments and materials will be used of high quality and reliability. Inability to locate suitable office premises. there could be incidents of lapses and accidents during the process of delivery of services which could lead to injury or fatality. The risk can be both internal as well as external. Inadequacy of the required capital. 40 . Similarly just being normal humans no matter how much we try to understand others in times due to unwanted circumstance there might arise some misunderstanding between partners which might hamper the operation of the organization.1 Internal Risk A. all ground operation will be carried out with highest safety measures. training issue. C. Staff dissatisfaction and misunderstanding between partners The company could face challenges from its employees in areas like salary & retirement benefits. work life balance. B. Unavailability of the adequate skilled staff resources in the market. Project Delay There is the risk of the project being delayed due to the following reasons:     Delay in registration process of the firm with the government bodies. The risks are as follows: 8. There will be system of periodic tests of all equipments being used.Chapter 8: Critical Risk and Contingencies There are various risk associated with the business. To mitigate this. Both crew and clients shall be covered by accidental insurance. Unwanted incidents during ground operation As our company is concerned with adventure services.

Change in government laws and regulations regarding tourism business.     Problems might arise during the course of business with third party and suppliers due to which normal business could be impacted. Business could face slackness in the domestic market due to reasons beyond its control. 41 .8.2 External Risk   Possibility of frequent Bandhs/Strikes from political & ethnic groups could impact the smooth operation of service delivery at the sites and office operation as well.

In addition to that keeping in mind the changing requirement of our potential and current customers we will be adding more of the new adventure sports and new packages which can provide as much of fun and thrill to our clients. ZA may in the future open agencies at foreign land. ZA may participate in additional segments of the target market. as the adventure travel market reaches maturity. ZA’s long term goal is to establish itself as an international recognized provider of the top of the line adventure sports. provide a corporate focus and a differentiated offering. Additional Adventure Sports in Near Future:       Canyoning Hot Air ballooning Scuba Diving Kayaking Sky Diving Ice Skating Similarly we will also be adding team building activities in our packages and will explore new trekking trials. 42 . It does however. In addition. This goal does not prohibit ZA from participating in additional segments.1 Future Plan One of the main objectives of Zipper Adventure is to achieve higher growth and lead the market.Chapter 9: Future Plan and Exit Strategy 9. We are even looking forward to develop a new package which includes both hard core adventure sports along with team building activity. ZA shall be reaching the market to identify potential opportunities for future sales.

e. In worst condition. we will exit from the business. To minimize the loss we will try:   To sell off the assets to other travel and adventure companies Liquidate the company 43 .9. Whenever new market achieves the market share.2 Exit Plan The competition of the market does not let the firm to ensure the continuous success. So it is not possible to ensure stable performance. if Zipper Adventure doesn’t work as per the planning then we will have alternative strategy i. loads of competitors enter in the market with similar schemes.

58.44.20.153 67.65.050 60.229 47.490 27.526 83.580 10.63.Annexure 1 Table 15: Sales Forecast for Hard Adventure Package Yearly sales forecasting for Hard Adventure Package No.88.155 32.840 55.36.168 25.000 52.404 21.515 21.750 13.575 22.50.175 2015 21 292 23.25.530 14.139 15.625 2014 17 248 16.015 30. of Clients Pricing Per Person** Gross Revenue Cost Per Person* Total Cost Gross Profit(Rs) 2013 15 225 15.29.200 2016 20 277 17. of Groups No.991 24.77.500 9.432 2015 19 262 17. of Groups No.504 42.149 2017 24 328 25.990 28.27.687 Table 16: Sales Forecast for Soft Adventure Package Yearly Sales Forecasting for Soft Adventure Package No.875 13.945 49.46.275 40.15.090 44.200 9.155 19.750 19.35.362 2016 22 310 24.000 13.19.610 2017 21 294 18.960 11.40.250 2014 19 275 22.70.990 52.556 (* Cost per person and price per person has been raised by 5% keeping in consideration the inflation factor) 44 .407 15.38. of Clients Pricing Per Person** Gross Revenue Cost Per Person* Total Cost Gross Profit(Rs.768 15.51.61.98.813 37.310 75.380 17.00.77.500 34.765 11.) 2013 17 250 21.38.72.60.36.87.566 34.720 31.48.

500/day*5) Food cost during rafting for 2 days (lunch-dinner-breakfast-lunch) 3 Star Lodge cost (bed-breakfast) per person Pack lunch (Rs. 150/head) Transportation cost (Rs.500 10 Lunch on the way back to Kathmandu 250 Total Cost 9. 200/head) 200 9 Hotel Cost (Rs.200 1. 1500/day * 4) 444 5 Extra activity i.000 round trip by Micro Bus) 2.500 45 .500 180 4. 500/day*5) One first aid health worker (Rs. etc guide cost (Rs.1500/head) 1. 200/head) 200 4 Site Seeing. 180 per head) Paragliding cost (Rs 4500 per head) Total Cost Markup price per head (12-15 Person) 75 700 150 1. 1.515 Mark Up 6.000 Table 18: Pricing per person for Soft Adventure Package Soft Adventure Package (12-15 person) 1 Transportation cost (Rs.222 2 Packet breakfast on the way (Rs. 150/head) 150 3 Lunch Trek (Rs. 700/day*4*4) 474 7 Food Tea /lunch/dinner and lodging night total cost(Rs. Elephant ride.e. 1000/day) Mountain Bike Hire Cost(Rs 700/bike for 8hrs) Packet Breakfast on the way (Rs.630 2.15.000 Pricing Per head Rs.155/21.500 13. 2000/day*2) Three helpers for cooking and tent fixing (Rs.21. etc (Rs. 22.515/15.000 445 295 295 185 1.000 round trip by minibus) Bungee Jumping/Rock Climbing/Swing Rafting Guide Cost for 2 Days (Rs. Bird Watching.155 8. 1200/day*3) 3.000 Rs.Annexure 2 Table 17: Pricing per person for Hard Adventure Package 1 2 3 4 5 6 7 8 9 10 11 12 13 Hard Adventure Package Mountain Biking Guide (Rs.600 8 Lunch (Rs. 30.500/day *2*2) One cook cost (Rs. Boating. 800/day *2*4) 475 6 Four Porter cost(Rs.

500 6. 1 2 3 4 5 6 7 8 9 10 11 Designation Executive Director Managing Director Operation Manager Financial Manager Marketing Officer Accountant Trekking Guide River Guide Reception Cleaner/Helper Driver Total No.04.000 104.94.000 7.) 10.08. (A4-70gm) (one time) Quarterly 8 x 20cc 8 x 20 cc 8 x 20 cc one insertion All year round 500 units Rate(Rs.) 2. 1 2 3 4 5 6 7 8 9 Promotion Method Leaflets Signage Ad in college magazines Paper Ad in Himalayan times Paper Ad in Kantipur Paper Ad in Republica Ad in Magazines Presentation and briefing at customer Location Badges with logo of ZA Total Quantity 1000 pcs.) 22.000 22.000 1. of Staff 1 1 1 1 1 1 1 1 1 1 1 11 Monthly Salary (Rs.34.N.100 46 .000 60 Table 20: Salary Expenses of Permanent Staffs S.000 5.000 160.000 40.000 2.) 10 per pcs 10.000 97.000 2.Annexure 3 Table 19: Details of Marketing Budget S.000 8.34.000 16.000 8.00.000 1.000 10.86.700 Annual Salary(Rs.000 18.000 10.000 96.000 40.000 1.200 8.600 1.000 2.000 160*650 160*1000 160*600 Cost(Rs.04.000 18.000 2.000 10.45.86.000 1.000 30.000 18.No.500 80.56.04.000 12.

000 25.400 8.500 50. Life Jackets 35 Computers 4 Printer 1 Television 1 DVD Player 1 Furniture (Sofa Set) 1 Table (Director) 2 Table (Manager) 2 Reception Desk 1 Tea Table 1 Revolving Chair 2 Simple Chair 5 Filling Cabinets 5 Telephone Set 4 Fax Machine 1 Photo Copy Machine 1 Gas Stove 2 Gas Cylinder 2 Utensils Tea/Coffee Vending Machine 1 Vacuum Cleaner 1 Total Per Unit Cost (Rs.000 85.000 5.440 1.000 47 .000 30.000 5.000 2.20.29.000 7.00.000 30.000 25.500 1.000 62.10.000 85.000 20.000 20.) 12.000 12.500 20.000 5.29.000 87.000 2.500 30.000 Total Cost (Rs.000 90.000 30.000 40.000 7.) 12.000 25.440 14.000 4.500 10.40.000 8.40.500 1.000 16.000 2.500 50.500 2.000 5.000 25.330 20.000 20.500 25.000 12.000 16.000 33.700 2.000 12.000 9.660 10.Annexure 4 Table 21: Details of Fixed Assets Fixed Assets Units Vehicle (Maruti Van) 1 Tents (Dome Tent) 10 Toilet Tents 2 Rafts (Boat & Paddling ore) 4 Music System & Other Equip.

68.000 20.200 3.200 1.40.188 7.800 15 2.000 9.000 30.03.400 5.710 22.888 20 28.000 40.40.45.Annexure 5 Table 22: Calculation of Annual Depreciation on Fixed Assets S.120 4.584 1.550 1.520 11.288 2.800 48 .000 90.57.000 20 5.000 25.69.168 9.895 14.360 3.500 120.894 819 2.000 25.400 1.000 12.048 717 3.000 15 750 15 399 15 1.500 20 24.000 3.884 14.566 940 1.000 Rate (%) 2013 20 2.368 17.709 6.704 461 245 921 2.200 10.32.813 7.00.825 701 6.96.757 1.024 2.660 10.288 2015 1.504 1.000 87.048 2.880 542 288 1.417 5.040 3. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Particulars Vehicle (Maruti Van) Tents (Dome Tent) Toilet Tents Rafts (Boat & Paddling ore) Music System & Other Equ Life Jackets Computers Printer Television DVD Player Furniture (Sofa Set) Table (Director) Table (Manager) Reception Desk Tea Table Revolving Chair Simple Chair Filling Cabinets Telephone Set Fax Machine Photo Copy Machine Gas Stove Gas Cylinder Utensils Tea/Coffee Vending Machine Vacuum Cleaner Total Accumulated Depreciation Total Cost 12.N.996 17.000 15 4.84.500 15 6.417 2014 1.500 10.375 20 2.000 5.500 15 825 15 7.36.871 10.29.419 4.000 7.000 2.880 20 1.685 3.915 3.100 4.168 2017 1.25.216 8.600 638 339 1.830 2.54.000 15 1.530 2.400 15 3.000 33.716 11.07.172 2016 1.084 2.375 5.000 20 1.000 85.208 2.048 6.500 50.440 1.400 14.301 1.606 3.44.632 19.560 896 3.336 963 86.000 20 5.105 1.280 3.000 25.335 3.000 20 1.000 5.253 1.638 573 2.764 507 4.734 2.963 392 208 783 1.000 16.275 3.000 20.000 13.600 4.000 19.560 8.303 5.520 11.773 1.168 1.200 15.000 20 18.000 20 17.958 4.469 770 68.251 596 5.750 15 9.132 2.500 20 4.000 20 17.34.576 2.016 9.474 2.203 1.200 4.960 12.77.842 1.560 2.373 7.80.349 431 3.000 15 4.000 62.950 15 3.400 8.84.920 1.400 14.969 1.040 1.

000 42.985 92.000 1.930 21.610 19.41.000 18.172 23.18.000 4.005 4.172 14.63.000 63.000 48.63.188 1.769 35.000 2.566 2.008 49 .06.79.920 2.805 25.20.879 51.00.00.690 2016 21.740 26.783 22.97.500 18.050 66.586 43.463 5.200 12.200 20.658 27.59.200 18.14.516 58.800 24000 12000 36.14.500 72.600 50.892 41.700 2.41.000 48.000 5.000 3.500 50.000 2.400 3.63.04.000 4.513 72.000 2.050 4.756 79.000 30.46.600 37.00.88.10.051 2.88.230 39.879 2.31.705 4.65.87.244 33.513 5.000 Annually 2014 19.500 150 7.800 84.45.100 24.758 Firm registration Office Decoration & Layout Website Creation Printing & Stationery Advertisement & promotion Subscriptions Traveling Insurance Other Operating Cost (E) Total Operating & Administrative expenses 8.458 20.625 75.52.000 5.976 55.241 20.000 18.441 4.030 29.700 35.000 7.103 21.203 4.000 1.000 1.290 29.380 52.990 25.000 1.34.650 2.025 52.344 2.837 2.566 3.86.000 55.20.000 One Time One Time One Time 4.02.203 69.349 55.039 87.900 44.076 27.890 88.837 48.245 26.72.894 83.000 3.000 1.400 2.000 4.500 3.000 18.460 21.000 19.375 58.47.92.86.23.820 32.460 13.084 97.000 60.845 46.000 2.02.94.400 31.675 2017 23.61.783 13.000 35.00.620 2.150 19.07.10.000 2013 18.845 1.Annexure 6 Table 23: Operation & Administration Expenses Particulars Salary & Wages Training Personnel Cost (A) Rent Total Rent (B) Electricity Water Waste Management Telephone Internet Line Gas Utility Expenses ( C) Repair & Maintenance equipments Computer & Printer Maintenance Equipment Maintenance Cost (D) Monthly 1.161 34.000 2.800 2015 20.000 6.20.344 4.100 4.100 2.900 1.920 3.00.305 2.

... 15 4................................. 17 4............................................................................ 3 1......5 Vision.......................................................................................................................1 Market Penetration............... 19 5............................2 Market/ Growth Strategy.......................... 18 Chapter 5 Marketing Plan and Strategies ....................................................................................................2 PESTLE Analysis ........................................................................................................2 Market Segmentation ................................2 Distribution Strategy ....................... 21 50 ....................................................................................................................................1 Background ..................................2........ 6 2.......... 6 2............2 Potentiality of Business .........................2....................................... 19 5................1 Market Description ....................................................... 3 1........................................................................................... 4 1................................................................................ 12 Chapter 4 Marketing Research and Analysis.................................................................................................................... 2 1.......................................... 1 1.....................................8 Values ..........................................................................................................................................................................................................................................................................9 Critical Success Factor ..... 15 4..................................................................................................................................................................................................... 1 1..Table of Contents Chapter 1 Introduction .......................................................................................................................................................................2 Demographic Segmentation ...................................................................................2..................................................................................................... 2 1.......................... 16 4...............5 Market Growth ................................................... 4 Chapter 2 Assessment of Business Environment .............................7 Goals and Objectives.............. 8 2................3 Competitive Analysis .................................................................2..................................... 16 4..3 Marketing Mix ...................................................................3 Company: “Zipper Adventure”................ 16 4....................3 Communication Strategy ..................................................2.. 3 1.........................................................................................................................1 Market Positioning ........................ 10 Chapter 3 Defining Products/ Services.1 SWOT Analysis ............... 20 5..4 Description of the Firm .................................................................................... 20 5..1 Geographic Segmentation ..................... 19 5...........................................................................................................3 Market Needs.........................................................................................................................................1 Product/Services ............................................... 20 5.................................................................. 1 1....................................................6 Mission ....................................................................... 21 5.........4 Target Market ..........................................................3............................................ 16 4........

.......................................................... 26 6...................................................................................... 37 7...2 Pricing....................................6 Cash Budget .......3 Remuneration and Compensation System ............................................................................................................................................................................................................................................................................................................................................................................................................................ 23 5.....................7........4 Promotion .................................. 40 51 .............................................................................................................................................. 26 6................................. 36 7.............................................. 34 7.......................7..............3 Fixed Assets ................................................................................................................................................................................................7 Process .................................................. 24 5................ 35 7...................... 33 Chapter 7 Financial Plan............................................5 Capacity Planning ....................... 26 6..... 31 6.1 Organization Structure ...................................................... 33 6..............7.............4 Training and Retention Plan.....................................................6 Physical Evidence ...........................................................................................................................9 Project Analysis ..............................................4 Resource Management ....................... 22 5....................................................................... 23 5..............................2 Assumptions............................................ 38 7............................................ 31 6...................8 Projected Key Financial Ratios .................................................................................................................................................................................................................................................................................. 35 7.....1 Office Location ...............................................3 Process of Service Delivery ............... 40 8....................................................................................................................................................................................4 Income Statement.......................................................................5 Statement of Retained earnings: ...........1 Internal Risk ........1 Capital Requirement ........ 25 Chapter 6 Operational Plan.............................................................................................................................3..........................................3 Place .......................................................2 Recruitment and Selection................................................................... 37 7..7......................... 34 7............... 24 5..................................................................................................................... 33 6........3....3.......................................................5 People ................................. 27 6..................................... 29 6.5.......5 Marketing Budget ..................................................... 39 Chapter 8: Critical Risk and Contingencies ........................................................7 Projected Balance Sheet ...................... 29 6..2 Layout Design ............ 22 5..................6 Quality Management ..................6 Sales Forecasting ............................. 38 7.....................................3..........................................................................................................................3....................7 Organizational and Management Plan ......3.... 29 6............................. 23 5..............................

................................................................... 17 Table 3: Arrival Growth ....... 38 Table 14: Payback Period ........................................................................................................................................ 34 Table 8: Capital Structure ............................................................................................................................................................................................................................................................................. 45 Table 19: Details of Marketing Budget ..................................................................................................................................... 37 Table 12: Projected Balance Sheet ............. 32 List of Tables Table 1: Funds from Partners..................................................................................................................................................... 26 Figure 2: Flow Chart of Service ...................................................................................................2 Exit Plan......................................................................................................................................................... 43 List of Figures Figure 1: Office Layout .............................................................. 48 Table 23: Operation & Administration Expenses ............................ 41 Chapter 9: Future Plan and Exit Strategy .........................................1 Future Plan .............................. 21 Table 5: Comparative Price Analysis ................................ 46 Table 21: Details of Fixed Assets .............................................................................................................................................. 49 52 ...................................... 47 Table 22: Calculation of Annual Depreciation on Fixed Assets............... 2 Table 2: Total customer inflow of Yala Adventure and ZA’s target ..................................................... 18 Table 4: List of Product/Service ..................................................................... 42 9...................................... 27 Figure 3: Organization Structure...................... 22 Table 6: Annual Sales Forecast .............................. 44 Table 17: Pricing per person for Hard Adventure Package .............................................................................................................. 36 Table 10: Statement of Retained Earnings ................................................................... 35 Table 9: Projected Income Statement ................................................................... 38 Table 13: Key Financial Ratios ........ 44 Table 16: Sales Forecast for Soft Adventure Package...............................................................................................................................................................................................................................8.. 42 9...................................................................................................................................................... 46 Table 20: Salary Expenses of Permanent Staffs .......................................................................................................................................................................................................................... 37 Table 11: Projected Cash Flow Statement ............................................................................................................................ 45 Table 18: Pricing per person for Soft Adventure Package ................................................................................................................................................................. 39 Table 15: Sales Forecast for Hard Adventure Package .......2 External Risk ........ 25 Table 7: Capital Requirement ..........