Galliyat Apartments

Mission Statement
We want to “be the best in the eye of our customers” and achieve expected growth through
superior customer service, quality and commitment. Our first preference is our customers and
our core objective is to expand market share by offering quality service with affordable price as
compare to our competitors.

Vision Statement
To be the first choice for guests, shareholders and business partners in a healthy, calm and
friendly environment.

Situational Analysis

Market Summary
Demographics
 Age
From 23 years onwards
 Where they belong to
Tourists from the lengths and breadths of Pakistan. More focus on citizens living in
Punjab and Karachi from Sindh.
 Size
Initially, the size of our target market is a medium.
  Occupation:

Corporate employees, university and college students, chief executives of companies,

newly married couples, families and all other people who give preference to travelling
and relaxing out of their home cities in leisure time and have good income from their jobs
or businesses.

 Income
Income ranges from Rs 40000 to 55000 and onwards.

Geographic:
People from Punjab’s major cities like Lahore, Multan, Gujranwala, Faisalabad etc. Also, people
from Karachi and Quetta.

Behavioral Factors:
All those people who look for the following factors:

 fun
 like to socialize
 want a change of environment and weather
 who have a passion for travelling
 Newly married couples visiting for recreation
 Who love hilly areas and camping
 Peace full and healthy area seekers
 Business men who seek worth-seeing places for their meetings
 Family time.
Market needs:
 Healthy environment
 Travelling and fun
 Privacy and peace
 Get together and socialization
 Comfortable apartments and relaxed accommodation

Market Growth:
As per the present situation, there are four major five star hotels operative in the country: Pearl
Continental, Marriott, Avari Towers, and Sheraton Hotel.

The greatest growth in the hotel industry was seen in the late 80s and then in early 90s. The
number of hotels in the country increased from 845 in 1991 to 1150 in 1996, showing a growth
of more than 26% with the fastest growth in the number of hotels seen in 1993 which tapered off
to 2.4% in 1995 before picking up again in 1996.

Government instability and terrorism began to affect tourism industry. As per survey, In August
2008, hotel occupancy rates fell, an alarming sign given to Pakistani Hotels. By the beginning of
fourth quarter 2008, the Pakistan THL sector (Tourism, Hospitality and leisure) was starting to
see major consequences of the economic crisis in the form of negative indicators in the hotel
industry, a slowdown in the gaming sector and increased preference to quick service restaurants
as opposed to dining o international operating company reduces and restricted their visits to
Pakistan hence reducing the occupancy rate in the Hotel from 60-70%.

In order to survive in those circumstances the Hotel industry reduces their rates to 10-20 % to
gain the target market.

In the year 2011 the increase and stability of economy of Pakistan brought a change in the
industry of Hotel and tourism it was observed sudden increase in number of foreign visitors and
meetings were scheduled in Pakistan mainly in the city of Karachi, through which the occupancy
rate of the hotels increase from 60% compared to the last year occupancy rate.
This increase of occupancy rate create the effect on the demand of the hotels , as the demand
increase so does the prices and as it was as the prices of the room of hotel were increase from
average Rs. 9000-Rs. 10000 to Rs 11,000 –Rs 12,0000 per night .

Positioning:
Name of our apartment is Galyaat Apartments

Tag line:

Stay Fresh and pleasant like home.

Our apartments are so near to the havens of the Pakistan. We are providing comforts like home.
And our facilities match with world class level at economical rate.

Marketing strategy
The marketing for rental apartment will be according to budgets because we have limited amount
to be spent on marketing and promotions of apartments. A fully colored leaflet will be developed
that will be posted outside the apartments. Moreover, advertisement will be placed in local
newspapers as well as rental websites available for promotions.

Competitors
There are no apartments and flats available for sale and rent at muree and Kashmir road. The
road is considered important so that’s why most of the small flats are located here for rents.
Bhurban pc and shangrila hotel are major competitors located 1 km far away from our
apartments.
Product offerings
We are providing facility of rental apartments for the visitors at Kashmir road muree but within
affordable rents. In Pakistan due to financial crisis, people are not able to have tours with their
families within limited budget. We are providing them apartment with basic facility and also
transport & parking facility.

 There are 2 apartments separately on 1st and 2nd floor at Kashmir road, 1km far away from
bhurban pc.
 Both apartments are fully furnished.
 Basic facility of gas and water
 Facility of electricity
 Wood work in 2nd floor apartment, 2 rooms with one bathroom 2 dimension view
 Comparatively bigger apartment, 2 bedroom, one bathroom, one kitchen and one lounge,
3 dimension view.
 Transport facility
 Parking lot available
 Market located at 1km distance

Key to success
 Continue to make strong and effective relation with current customers as well as new
customers.
 Develop a strong market plan for target market
 Expand the target market by targeting university students as well
 Providing customers with quality service within affordable rents
 Good location can attract more customers but due to locating on Kashmir road,
competitors also have some market share. We have to provide a competitive edge in form
of service quality and providing them something new such as tourist guide, transportation
and packages with 3 times meal a day
 Well maintained, clean and up to date apartments will ensure a joyful stay for visitors as
well as helps to shape first impression of visitors. This first impression can hopefully
cause a return visit.
SWOT Analysis
STRENGTHS

 Beautiful valley facing apartment

 Facility of electricity
 Basic facility of gas and water supply ( gas cylinders & water tankers)
 Parking lot is available
 Furnished apartments
 Eatable shops & market and restaurants are located nearby
 Transport facility for the customers

WEAKNESSES

 Gas cylinder facilities instead of proper gas pipe line connections.

 Water tankers instead of proper water connections.
 Small parking lot
 No caretaker for apartments

OPPORTUITIES

 Alliance with nearby restaurants and provide a package to the guests of top apartment in
which they will be offered three times meal a day as there is no kitchen in 2nd floor
apartment.
 Facility of a Tour guide so that visitors can have all facilities available at one spot.
THREATS

 Bhurban pc is located 1km far away from the apartments (having a well known name),
can grab more customers by offering packages within affordable rent for apartments.
 Terrorism is now a days an important fact and is effecting almost all types of businesses.
People are now more concern about safety, so no of visitors may keep on decreasing.
 due to decrease in income level, middle class are now more concern about fulfilling their
basic needs.

Financial objectives
 Our first goal is to meet the financial objectives of the owner.
 Our planned concise annual budget should meet the requirements and get sufficient
output from budget allocated.
 Insure growth rate within the budget of 50,000 Rs
 Increase the revenue more as possible

Marketing objectives
 To expand the target market and attract more customers.
 To effectively communicate the msg to the target market
 To accomplish the targeted growth within given time and budget
 To position our name in the market
 To gain the sufficient revenue for reinvestment in promotion and advertising
Internal Factor Evaluation:
Strength Weight Rate Weighted Score
Good location 0.12 4 0.48
Parking 0.10 3 0.3
Basic facilities 0.15 4 0.6
Near to mountain valley 0.03 4 0.12
Low fair 0.13 4 0.52
Fully equipped 0.05 4 0.2
Weaknesses
No gas pipelines 0.07 2 0.14
Small parking 0.09 2 0.18
No commercial market 0.10 2 0.2
Load shedding 0.05 2 0.1
Capacity 0.1 2 0.2
Total 1 - 3.04

Maximum=4 1-1.99= weak

Average= 2.5 2-2.99=average

Low = 1 3-4= strong

We have strong internal conditions.

External Factor Evaluation:
Opportunities Weight Rates Weighted score
Summer packages 0.5 4 0.2
Develop Market 0.1 3 0.3
Tour guide hiring 0.05 2 0.1
Pick & drop facility 0.07 3 0.21
Internet 0.04 2 0.08
Threats
Taxation 0.14 3 0.42
Low income level 0.08 2 0.16
Terrorism 0.09 2 0.18
Political instability 0.19 2 0.38
Competitor 0.19 3 0.57
Total 1 - 2.6

As according to defined scale our apartments are on average level.

Internal and External Factor Evaluation Matrix (IE):

4 3 2
IFE
I II III

IV V VI

2
VII VIII IX

EFE

As we are in 1ST category quadrant and we all know that 1st category shows built & grow where
these strategies will be implemented:

1) Market penetration
2) Market development
3) Product development
4) Backward integration
5) Forward integration
6) Horizontal integration
TOWS:
Opportunities Threats

Pick & drop Taxation

Summer Package Low income
Alliances Terrorism
Internet
Improve Capacity

Strength : SO ST
Good location Market Penetration Product Development
Parking
Low Fair
Fully Equipped

Weakness: WO WT
No gas pipelines Product Development Joint Venture
Small parking Extension of Apartment Liquidation
Load shedding Acquisition
Low capacity
Our Main Strategies
There are some of the strategies that our company will follow after analyzing the model and our
main focus is on these of strategies and some of them may be the alternatives strategies.

1) Product Development
2) Market Penetration
3) Joint Venture/Alliances
4) Differnation
5) Focus

Marketing tactics
 Connect with the customers on social networking sites and by tagging them in videos and
photos of the apartments.
 Blogs are better choice to attract the customers. Develop your own blog and invite
customers through mails.
 Put up flyers at the local businesses such as markets, restaurants and universities.
 Create your own website and offer concession or discounts at online booking.
 Packages to the students and newly married couple
 Retain customer who use to visit every year by offering him special discount offer
Marketing Mix
Marketing mix includes the four P,s in it we have to decide what product or service we offer and
how we promote them and what is the price for that specific product and what are the promotions
campaign.

Product/Services
The main or the core service that we are offering is

Apartments

our main or core service is apartments that we are offering to families who visits the northern
areas every year in summer and we are providing a world class apartment to them and in return
we are charging the rent from them so it is our main source of revenue also.

Pick and Drop facilities

We are also providing the pick and drop facilities to our customer so they can use our pick and
drop facilities if they want to visit places which are near to the our apartments and people are
interested going over there and 24 hours this service is available.

Commercial store

We are facilitating our customers by providing them products of daily use within the apartments
so they can purchase necessary eatable from this store easily.

Luxury buses

We are also providing the luxury buses for our customers they may book the buses and use all
these buses for visiting the northern places with their families at a low price and enjoy family
time and travelling on theses buses.
Promotions
We are promoting our brand by making a official pages so that the customer can get all the new
and latest information from there and using the social media so that people know more about our
brand.

We are also facilitating and promoting our brand by providing the facility of online booking
through our official website so that customer can make online and advance booking for their
apartments before the season starts.

we have strong data bases for the customer and we are interested in providing the discount to the
people who visit again and book our apartments next time. For the families there is special
discount and packages and discounts if they are visiting again.

we are giving ad of our apartments and try to increase our sales by placing the ads on the local
channels and more importantly on the radio. We are also placing the ad of our across all the
walls of the nearby areas to our apartments. if someone come to our apartments with the
reference of customer who have already visit so we are providing them the discounts in the same
manners. We are also using the digest and local news paper for the promotion of our apartments.

We are providing the special packages to the families in the summer with the discounts including
everything from the pick and drop to the apartment rent so people get more benefit from these
packages. Internet promotions are also helpful if people are registered in our websites already so
there is discount for them.

PRICE
the main focus is on the pricing how we price our apartments how we do pricing there are several
points that we have to consider in our mind. price may be enough that it may cover the cost and
give profit.

so we are using the markup pricing which means that price is set that cover all the cost and plus
give the profit to owner so we consider all the things when setting the price we are using markup
pricing that cover the cost plus the 10% extra that is for the profit.

So there are two apartments that is divided into four parts. Second floor is divided is 3
dimensional wooden work single room and divided into two parts with single rooms. so it is
smaller than the other apartment so we have set the low price for this apartments because of
small number of rooms.
2nd floor with three dimensional view part 1 with single room the price is 2500 per day and 2 nd
part also have same price it is also 2500 so for this apartment the price for the single day is 5000.

Smaller apartment with the 3 dimensional views has the price of 5000 for a single day.

So the 1st apartment which is bigger than the 2 nd one has different price it is also divided into two
parts and it is for the families. it is also divided into two parts first is TV lounge, two rooms,
kitchen, with two rooms it has the price of 6000 per day. And 2 nd part with the two rooms and
attached bathrooms with two dimensional views. it also has the 6000 per day so for the whole ist
apartment it is for the families it has the price of 12000 per day .

Placement
Our Galliyat apartments are near to pc bhurbun and just 1 km away from pc at the heart of Murre
near mountain.

Marketing Expenses/Budget Break down

Internet marketing which includes the 10000
social media like face book and twitter

Newspaper and Digest 12000

Local cable and TV Channels 18000

Brushers and Stickers on the Back 5000

of transport

Radio expenses 5000

Communication Plan
Identify target Audience: 5Ws

Why: grabbing opportunity and making profits.

Where: one Km away from P.C Bhurban.

What: apartment for rent on days basis.

Whom: middle class having income of 50,000.

When: summer season.

Image Analysis:

People are not aware about our brand and offerings. So we need to create a proper brand in
future. We are working on it and we are offering comfortable apartments with the low price to
the people who come to enjoy their summer we are currently creating our brand image as
compared to competitor.

Need:

People want safety and good living when they will visit the northern areas so we are offerings
the apartments with all the facilities where they can enjoy environmental like home. Where they
get to gather.

Brand awareness:

We are creating our brand awareness to the people about our brand by giving audio in the radio
because people are listening to the radio most of the time, and we also trained tourist guide and
they tell the tourist about our apartment and put stickers of our apartment on the local transport.

Objective:

We want to increase our profits by providing economical high value. We also want enough
profits because we want to expand our business. Our objective is to increase customer ratio
during summer season. We want no apartment remain empty.
Message Content:

“Stay Fresh & pleasant like a home” so you can enjoy the facilities & happiness in our apartment
like home. We are providing comfort like home. And oyr facilities matches with world class
level at economical rates.

Appeal:

We are using the happiness appeal in our ads showing that people are happy when they enjoy
with their families and all the facilities they are enjoying at our apartment. So we show in the ads
that people are happy with their families enjoying world class facilities.

We do these things for advertisement:

1) Internet marketing
2) Advertisement at local cable channel
3) Stickers on cars
4) Local digest
5) Wall chalking

Affordable budget:

We have only 50,000 we use affordable budget because we have no extra money also we are in
start of the business that’s why we use affordable budget methods.

Feed Back:

As we focus to Punjab belt. We expected 30-45 families from June to August to visit our
apartments. That will be enough for us to make our break even point.

Financial objectives
 Our first goal is to meet the financial objectives of the owner.
 Our planned concise annual budget should meet the requirements and get sufficient
output from budget allocated.
 Insure growth rate within the budget of 50,000 rs
 Increase the revenue more as possible
 To achieve the break even.
 Sales Forecast

Assumptions Future sale calculations

We are assuming that our apartment
remain full up to full capacity and on
the rent throughout the year
We are assuming that our apartment
remain full up to full capacity and on
the rent throughout the year.
Expected Sales for the day one
12000+5000 for the two apartments so
total sale is 17000
Expected sale for the one month
17000*30=510000

We are assuming that our apartment Expected sale for the year
remain full up to full capacity and on 17000*365=6205000
the rent throughout the year.

Break even analysis and Cost Estimation

It is difficult for this type of project to estimate the break even analysis and find out the per unit
cost because it is not the manufacturing business. So we are taking some assumptions which are
given below and some are forecasted. Investors will receive rental income from the property.  It
is estimated that this property will produce 6205000per year.  so break even is point where there
is no profit and the company is covering it annual cost but without making any profit.
The main source of revenue is the from the rental business. So we have calculated some cost on
the bases of which we have calculated break even sales. Below are the division of the cost that
we have calculated throughout the year.
Annual expected rent from the apartment 6205000
Cost Analysis
Professional service expenses 800000
Marketing Expense 50000
Tax 750000
Utilities 1000000
Others 705000

So Breakeven is equal to 330000 sales if apartment are making sales of 330000 it means that
company is covering all the cost per year and achieving break even at this level. And making
2905000 profits per years if it will occupy the apartment up to the maximum level and we are
taking this assumptions theses apartment remain full.

Key to success
 Continue to make strong and effective relation with current customers as well as new
customers.
 Develop a strong market plan for target market
 Expand the target market by targeting university students as well
 Providing customers with quality service within affordable rents
Good location can attract more customers but due to locating on Kashmir road,
competitors also have some market share. We have to provide a competitive edge in form