A New Startup of Travel Agency

ELECTRICAL ENGINNERING
PROJECT MANAGEMENT PROJECT REPORT

Prepared by
Hamdan Khan Islam Uddin EE-151043
Shahzaib EE-151045
Muhammad Abdullah EE-151049

Spring 2018

A project in partial fulfillment of the award of

Electrical Engineering Degree
DHA Suffa University, Karachi

Table of Contents

I
Company Overview........................................................................................................................II
Target Market, Objectives..............................................................................................................II
Muslim Community......................................................................................................................II
Travelling Fans............................................................................................................................III
Undifferentiated Marketing.........................................................................................................III
Differentiation Strategy...............................................................................................................III
Focus or concentrated targeting...............................................................................................IV
Customized Marketing................................................................................................................V
Consumer Perspective...................................................................................................................VI
Overall Strategy.............................................................................................................................VI
Marketing Mix..............................................................................................................................VI
Positioning Statement...................................................................................................................VII
Project Management Knowledge Areas........................................................................................VII
Product........................................................................................................................................VII
Price............................................................................................................................................VII
Promotion...................................................................................................................................VII
Place............................................................................................................................................VII
DIGITAL MARKETING:............................................................................................................VIII
POSITIONING BANNER.........................................................................................................VIII
Strategic Goals..........................................................................................................................VIII
Financial Strategic Objectives.................................................................................................VIII
Financial Efficiency...................................................................................................................VIII
Coordination with Other Business Functions..............................................................................VIII
Research....................................................................................................................................VIII
Risk Assessment and Quality Control......................................................................................IX
Sales Forecasts and Budgets...........................................................................................................X
Sales Forecast.............................................................................................................................X
Budget...........................................................................................................................................X

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Executive Summary
 Brother International Travels and Tourism is a new start up of a business.
It became functional in May 2018. They started their business with a very
short investment. They are new in market but company’s CEO has
previously experience of this field.
 They plan different packages of tours occasionally. They offer complete
travelling packages of religious event like Ashur, Arbaeen, Hajj, and
Umrah with proper accommodation, meals and transportation. They
currently operate in Makkah, Madina, Iran, Iraq, and Syria.
 Apart from this they also provide airline tickets globally.
 Their target is to entertain 1000 clients annually and make pilgrimage
affordable for everyone.
 There are more than 800 travel agencies that are registered in Karachi.
More than 100 agencies are added to market recently. There is a very
tough competition amongst them. The one who offers with lower rates and
great services, rules the streets.
 They started a business with a very small investment. Airlines do not issue
tickets on credit until unless agency is renowned in market. They purchase
tickets from other agencies which increase the issuing rates of tickets and
decrease their profit margin.
 They came up with a very small investment. They had a budget of 5,
00,000 PKR.
 We analyzed the organizational working, their current status, their goals
and targets, their problems, their financial structure and market status.
Now there are various ways in which we can enlist our contribution in their
organizational motives. Like Promotions / Advertisements (Digital
Marketing), Market surveys for knowing public demands, Concept of
Shared Economy, Including Stakeholders, Restructuring team, Marketing
Techniques.

III
Company Overview
Brother International Travels and Tourism is a new start up of a business. It
became functional in April, 2017. They started their business with a very short
investment. They are new in market but company’s CEO has previously
experience of this field.
They plan different packages of tours occasionally. They offer complete travelling
packages of religious event like Ashur, Arbaeen, Hajj, and Umrah with proper
accommodation, meals and transportation. They currently operate in Makkah,
Madina, Iran, Iraq and Syria.
Apart from this they also provide airline tickets globally.

Target Market, Objectives

By age, location, income and lifestyle. A company defines its target market a
target market is the market a company wants to sell its products and services to,
and it includes a targeted set of customers for whom it directs its marketing
efforts. Identifying the target market is an essential step in the development of a
marketing plan. A target market can be separated from the market as a whole by
geography, buying power, demographics and psychographics.
A company invests significant amount of time and capital to define and monitor
its target market. Not all products and services are meant for all types of
consumers, and consumers are often cautious with their spending power. For
this reason, target markets are typically segregated by the consumers that are
likely to have a need for its product. Defining a specific target market allows a
company to know its specific market factors to reach and connect with customers
through sales and marketing efforts.
Testing of the target market often occurs in a phase before the product releases.
In this phase, a company may use limited product rollouts and focus groups,
allowing the product managers to get a feel for which aspects of the product are
the strongest. Once a product is released, the company can continue to monitor
the demographics of its target market through sales tracking, customer surveys
and various other activities that allow the company to understand what its
customers demand.
The company's target market is to capture 5000 customers annually and to
make pilgrimage affordable for everyone.

Muslim Community
Their target market is Muslim community as they offer a numerous packages of
Hajj, Umrah, and Ziarats on different occasions.

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Travelling Fans
Apart from this, they offer various packages for vacations in Dubai, Malaysia,
Thailand and locally to the northern areas of Pakistan.
When selecting their target markets, companies have to make a choice of
whether they are going to be focused on one or few segments or they are going
to cater to the mass market. The choice that companies make at this stage will
determine their marketing mix and positioning plank. There are four generic
target marketing strategies.

Undifferentiated Marketing
There may be no strong differences in customer characteristics. Alternatively, the
cost of developing a separate marketing mix for separate segments may
outweigh the potential gains of meeting customer needs more exactly. Under
these circumstances a company will decide to develop a single marketing mix for
the whole market. There is absence of segmentation.
This strategy can occur by default. Companies which lack a marketing orientation
may practice this strategy because of lack of customer knowledge. It is
convenient since a single product has to be developed.
A company using an undifferentiated targeting strategy essentially adopts a
mass-market philosophy. It views the market as one big market with no individual
segments. The company uses one marketing mix for the entire market. The
company assumes that individual customers have similar needs that can be met
with a common marketing mix.
The first company in an industry normally uses an undifferentiated targeting
strategy. There is no competition at this stage and the company does not feel the
need to tailor marketing mixes to the needs of market segments.
Since there is no alternate offering, customers have to buy the pioneer’s product.
Ford’s Model T is a classic example of an undifferentiated targeting strategy.
Companies marketing commodity products like sugar also follow this strategy.
Companies following undifferentiated targeting strategies save on production and
marketing costs. Since only one product is produced, the company achieves
economies of mass production. Marketing costs are also lower as only one
product has to be promoted and there is a single channel of distribution.
But undifferentiated targeting strategy is hardly ever a well-considered strategy.
Companies adopting this strategy have either been blissfully ignorant about
differences among customers or have been arrogant enough to believe that their
product will live up to the expectations of all customers, till focused competitors
invade the market with more appropriate products for different segments.
Differentiation Strategy
When market segmentation reveals several potential target segments that the
company can serve profitably, specific marketing mixes can be developed to

V
appeal to all or some of the segments. A differentiated marketing strategy
exploits the differences between marketing segments by designing a specific
marketing mix for each segment.
It is the most sought after target market strategy because it has the potential to
generate sales volume, higher profits, larger market share and economies of
scale in manufacturing and marketing. But the strategy involves greater product
design, production, and promotion, inventory, marketing research and
management costs.
Another potential cost is cannibalization, which occurs when sales of a new
product cut into sales of a firm’s existing products. Before deciding to use this
strategy, a company should compare the benefits and costs of multi-segment
targeting to those of undifferentiated and concentrated targeting.
A company following multi-segment targeting strategy serves two or more well-
defined segments and develops a distinct marketing mix for each one of them.
Separate brands are developed to serve each of the segments.
Focus or concentrated targeting
Several segments may be identified but a company may not serve all of them.
Some may be unattractive or out of line with the company’s business strengths.
A company may target just one segment with a single marketing mix. It
understands the needs, and motives of the segment’s customers and designs a
specialized marketing mix.
Companies have discovered that concentrating resources and meeting the needs
of a narrowly defined market segment is more profitable than spreading
resources over several different segments. Starbucks became successful by
focusing exclusively on customers who wanted gourmet coffee products.
The strategy is suited for companies with limited resources as these resources
may be too stretched if it competes in many segments. Focused marketing
allows R&D expenditure to be concentrated on meeting needs of one set of
customers and managerial activities are devoted to understanding and catering
to their needs.
Companies following concentrated targeting strategies are obviously putting all
their eggs in one basket. If their chosen segments were to become unprofitable
or shrink in size, the companies will be in problem. Such companies also face
problems when they want to move to some other segments, especially when they
have been serving a segment for a long time.
They become so strongly associated with serving a segment with a particular
type of product or service, that the customers of other segments find it very
difficult to associate with them. They believe that the company can serve only
that particular segment.
Companies which start with concentrated targeting strategy but nurse ambitions
to serve more segments should make early and periodic forays into other
segments.
The idea is to avoid being labeled as the company which exclusively serves a
particular segment. The association with one particular segment should not be
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allowed to become so strong that customers cannot imagine the company doing
something else.
Large organizations may not be interested in serving the needs of this one
segment or their energies may be so dissipated across the whole market that
they pay insufficient attention to the requirements of this small segment. One
danger that such niche marketer’s face is attracting competition from larger
organizations in the industry if they are very successful.
Customized Marketing
In some markets, the requirements of individual customers are unique and their
purchasing power is sufficient to make designing a separate marketing mix for
each customer a viable option. Many service providers such as advertising,
marketing research firms, architects and solicitors vary their offerings on a
customer to customer basis.
They will discuss face to face with each customer their requirements and tailor
their services accordingly. Customized marketing is also found within
organizational markets because of high value of orders and special needs of
customers.
Customized marketing is associated with close relationships between the
supplier and customer because the high value of an order justifies large
marketing and sales efforts being focused on each buyer.

VII
Consumer Perspective
Consumer perspective is also: that 'hard to define' camaraderie that draws
people together in an acute unit and the recognition that any oppression we face
is a shared oppression; ... knowing and believing in the concept
of consumer 'common-sense'; a historically wary way of looking at the world.

Survey:
We can know our audience demands by taking their feedback and asking their
interests, preferences and expectations from any travel agency. On the behalf of
their feedbacks we can plan accordingly.

Below is a survey that we conducted from our customers and from various
people for marketing and the betterment of our travel agency.

i. Do you prefer comfort over low cost ticket?

ii. Do you prefer the travel agency only for the ticket or do you
expect the travel agency to provide you the accommodation for
hotel for travelling in the city as well?
iii. Do you prefer to go with family or with friends?
iv. Do you prefer low cost ticket over good quality hotel?
v. For any further feedback please feel free to contact us.

Overall Strategy
Targeting Strategy of Brother Travel and Tours:
 Existing Positioning Strategy
 Positioning by Attributes
 Positioning by Price and Quality
 Introduction of Additional Low Cost Flights
 Positioning by Product User
The company will use concentrated target strategy because these religious tours
are concerned with focusing or ruminating on specific sector of population. For
this purpose company gave following incentives:
 Low cost packages were given to the users
 Generally X generation is targeted age group is 30-50
 Free UMMRAAH and HAAJ packages are given to aged people
 Faculty of doctors is made available for the treatment of ill and old people.

VIII
Marketing Mix
The marketing mix is one of the most famous marketing terms. The marketing
mix is the tactical or operational part of a marketing plan. The marketing mix is
also called the 4Ps and the 7Ps. The 4Ps are price, place, product and
promotion. The services marketing mix is also called the 7Ps and includes the
addition of process, people and physical evidence.

Positioning Statement
A positioning statement is an expression of how a given product, service or brand
fills a particular consumer need in a way that its competitors don’t. Positioning is
the process of identifying an appropriate market niche for a product (or service or
brand) and getting it established in that area.

Project Management Knowledge Areas

The Four Ps Model
Product
The first of the Four Ps of marketing is product. A product can be either tangible
good or an intangible service that fulfills a need or want of consumers. Whether
you sell custom pallets and wood products or provide luxury accommodations,
it’s imperative that you have a clear grasp of exactly what your product is and
what makes it unique before you can successfully market it.
Price
Once a concrete understanding of the product offering is established we can start
making some pricing decisions. Price determinations will impact profit margins,
supply, demand and marketing strategy. Similar (in concept) products and
brands may need to be positioned differently based on varying price points, while
price elasticity considerations may influence our next two Ps.
Promotion
We’ve got a product and a price now it’s time to promote it. Promotion looks at
the many ways marketing agencies disseminate relevant product information to
consumers and differentiate a particular product or service. Promotion includes
elements like: advertising, public relations, social media marketing, email
marketing, search engine marketing, video marketing and more. Each touch
point must be supported by a well-positioned brand to truly maximize return on
investment.
Place
Often you will hear marketers saying that marketing is about putting the right
product, at the right price, at the right place, at the right time. It’s critical then, to
evaluate what the ideal locations are to convert potential clients into actual

IX
clients. Today, even in situations where the actual transaction doesn’t happen on
the web, the initial place potential clients are engaged and converted is online.
Keeping in view this 4pcs the company identifies its product by offering valuable
services in terms of accommodation.
Low prices were introduced in the market for capturing more customers.
Basically those places were put in view which were nearer to airport so that the
communication with flights can be easy.
Promotions/Advertisements:
In such types of business projects the main leading point to success is
Advertisement. There are numerous ways to advertise your business plan but
here considering our budget we will use two of them:
DIGITAL MARKETING:
Using of social media for the purpose of advertisement is the need of time. We
gathered a lot of audience by using Facebook, twitter, Google+ and other social
media applications. A website was made like online web page overlook
POSITIONING BANNER
As we know the target area and our target audience so we advertised by posting
banners everywhere on streets, roads etc.
Strategic Goals
The planned objectives that an organization strives to achieve. Most senior
managers will take the time to develop and articulate appropriate strategic goals
for their business in order to demonstrate to subordinate employees what their
plans and vision for the company are. Such strategic goals should be achievable
and should reflect a realistic assessment of the current and projected business
environment.
The company striving goals were:
Financial Strategic Objectives
Financial Growth: To exceed $10 million in the next 10 years.
Financial Growth: To increase revenue by 10% annually.
Financial Efficiency: To decrease expenses by 5%.
Financial Efficiency
To increase net profit by 10% annually.
Customer/Constituent Strategic Objectives
Current Customers: Expand sales to existing customers.
Current Customers: Increase customer retention.
Current Customers: Achieve and maintain outstanding customer service.
Current Customers: Develop and use a customer database.
New Customers: Introduce existing products into a new market.

X
New Customers: Introduce new products to new and existing markets.
New Customers: To expand sales to the global marketplace.
Customer Services: Improve our service approach for new and existing
customers.

Coordination with Other Business Functions

Typical marketing function types within a larger business might include
performing market research, producing a marketing plan, and product
development, as well as strategically overseeing advertising, promotion,
distribution for sale, customer service and public relations.
BROTHER TRAVEL and Tours coordinated in the following way:
Research
One of the major functions of marketing is to conduct your research on your
target audience. Pay attention to buying trends and look for products that fulfill a
current need. For instance, apparel retailers need to stay on top of the upcoming
season’s trends to know what products to focus on in marketing campaigns.
Market research also requires checking out your other competitors. Find out what
products they are featuring and how successful their marketing campaigns have
been in the past.
Risk Assessment and Quality Control
Risk assessment and quality control will be another function of marketing for your
business. Risk assessment entails looking at the variables that could affect the
sale of your product or service. Quality control means looking at how your
product stands up against the competition. It also involves meeting standards for
product grading in applicable markets.
.

Sales Forecasts and Budgets

Sales Forecast
Sales forecasting is the process of estimating future sales. Accurate sales
forecasts enable companies to make informed business decisions and predict
short-term and long-term performance. Companies can base their forecasts on
past sales data, industry-wide comparisons, and economic trends.
Budget
The word budget came from the French word 'budge' which means a small bag
of leather. In 1773 the Prime Minister of Britain came with the documents about
the plan of expenditure for the year, from then the word budget is used.
A budget is a quantitative expression of a financial plan for a defined period of
time. It may also include planned sales volumes and revenues, resource

XI
quantities, costs and expenses, assets, liabilities and cash flows. It expresses
strategic plans of business units, and an organization, activities or events in
measurable terms.
Keeping in view the sales forecast and budgeting the senior manager made the
following assumed that the sales level should be higher than target sales for
budgeting the resources and assets should not be liquefied.
Our company came up with a very small investment. They had a budget of 5,
00,000 PKR.

Including Stakeholders:
We can include stakeholders to promote travels packages and offers on big scale
and it will also help us to get rid of the financial crisis as well.

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