Market entry strategy for the Kiwi experience in Germany

DArtayon Manning Otgontzul Sandagdorj Mlissa Carvigant L/O/G/O

www.themegallery.com

Mission Statement
Our mission is to help our clients expand their horizons and achieve results beyond initial expectations. We strive to become the number one project management firm locally, nationally and globally.

Staff
Dartayon Manning
Project Manager

Otgonzul Sandagordj
Sub project Manager

Mlissa Carvigant
Sub project Manager

Logistics

Marketing Research

Time Management

Budget

Risk Management

Promotion
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Introduction
Analysis of the market
Determining potential threats and opportunities

Designing a project
Financial evaluation and creation of products

Advertisement
Being sure that our project is visible

Contents
1 2 3 4 5 6 Market research Advertisement Time Management Financial plan Risk analysis Conclusion

Contents
1 2 3 4 5 6 Market research Advertisement Time Management

Financial plan
Risk analysis Conclusion
6

1) Market research: the survey

DO YOU LIKE TRAVELLING? 6% 3% 26%
a. b. c. d. Yes, very much Yes, I quite like it Not really Not at all

WHEN YOU TRAVEL WHAT IS YOUR

PREFERRED FORM OF TRANSPORTATION?

31%

2% 1% 10%

a. b. c. d. e. f.

By bus By plane By car sharing By train By boat Other

65%

12%

44%

WOULD YOU LIKE TO TRAVEL ACROSS GERMANY OR OTHER EUROPEAN COUNTRIES?

2% 1%
a. b. c. Yes, very much Yes, why not? Not really

IF YES, WHERE WOULD YOU LIKE TO TRAVEL?

6%

8% 19%

24%

d.

Not at all

45%

52%

a. Germany b. France c. Italy d. Austria e. Spain f. Other

19%

24%
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1) Market research: the survey

Places, which people want to visit
Country Places, Cities
Berlin Kln Munich Hamburg Black forest Stuttgart Paris Marseille Nizza Toulouse Rome Mailand Sicily Milan Florence

Country

Places, Cities Zurich Vienna

Germany

Austria

France

Spain

Barcelona Madrid

Italy

Other

England Ireland Prague Brussels

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1) Market research: secondary sources

Facts and figures of German travel market in 2010
In 2010, 935 million international tourist destinations counted worldwide
Total travels 75.6 million 50% Travel packages 95% organized by travel agencies 10,400 travel agencies 2500 Travel companies 49 million people traveled 75.7% of German travel Travel expenditure was 60.6 milliard euro to foreign countries 63.6 milliard euro in Germany 2.8 million people work in tourism sector

6% 5% 16%

Europe Asia North and South America Middle East Africa

22%

51%
472 204 151 60 49 9

Europe Asia North and South America Middle East Africa

1) Market research: secondary sources

Germanys income and expenditure in international Travel Which form of transportation use German travelers?

100

80
60 40 20 0 2005 2006 2007 2008 2009 2010 23,3 26,1 26,3 27,2 24,9 25,2 58,2 58,9 60,6 61,9 58,2 60,6

Income

Expenditure

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Competitors analysis

Establishment in 1948 New 32 independent bus companies Over 500 destinations. 18 buses

Established in 1947 This extensive network 30 national 25 international bus routes more than 350 destinations

70 destinations

about 5 million km turnover of more than 8,400,000 .

Berlin Amsterdam: 105

6,000 Travelers 284,352 km

0,75 Mio Travelers

Just enjoy it package 10 Destinations 500 (50 per Destination in average)

Berlin Amsterdam: 66

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Contents
1 2 3 4 5 6 Market research Advertisement Time Management

Financial Plan
Risk analysis Conclusion
12

4) Advertisement
DArtayon Duval supports our project and we support his live tour around Germany

Advertisement of our packages

Promotion of the towns visited

13

Contents
1 2 3 4 5 6 Market research Advertisement Time Management

Financial Plan
Risk analysis Conclusion
14

3)Time Management
Projectplan
Oct 10

Kick-off meeting
nov-10 Dec 2010 janv-10

Review meeting
fvr-10 Completion

Mo CW 40

Mo CW 41

Mo CW 42

Mo CW 43

Mo CW 44

Mo CW 45

Mo CW 46

Mo CW 47

Mo CW 48

Mo CW 49

Mo CW 50

Mo CW 51

Mo CW 52

Mo CW 01

Mo CW 02

Mo CW 03

Mo CW 04

Mo CW 05

Mo CW 06

Mo CW 07
0

Sub Project / Work Packages

responsible

Research Kiwi Experience Prices of the market Other organisations Eventual competitors Eventual sponsors Ways of promotion Survey about the project Creation of the survey

D'artayon Manning D'artayon Manning D'artayon Manning D'artayon Manning Otgonzul Sandagdorj Mlissa Carvigant D'artayon Manning Mlissa Carvigant Otgonzul Sandagorj Otgonzul Sandagdorj Otgonzul Sandagdorj Mlissa Carvigant D'artayon Manning Otgonzul Sandagdorj Mlissa Carvigant Otgonzul Sandagdorj Mlissa Carvigant Mlissa Carvigant D'artayon Manning Mlissa Carvigant D'artayon Manning Mlissa Carvigant D'artayon Manning Otgonzul Sandagorj Otgonzul Sandagdorj Otgonzul Sandagdorj Mlissa Carvigant Mlissa Carvigant D'artayon Manning Otgonzul Sandagdorj Mlissa Carvigant D'artayon Manning Mlissa Carvigant Mlissa Carvigant D'artayon Manning Mlissa Carvigant D'artayon Manning D'artayon Manning D'artayon Manning D'artayon Manning

1 1

6 1 1 1 1 1 1

6 1 1 1 1 1 1 1

4 1 1 1 1 1

Mo CW 08
0

1 1 1 2 1 1 2 0 0 0 0 0 0 0 0 0 0 0

Task executed on time Task executed earlier than expected

1 1

Review of the survey Distribution of the survey Analyse of the survey Time organisation Organisation of the tasks Organisation of the meetings Trip to Koblenz Implementation of the milestones Risk Management Risk definition Risk analysis Advertisement

1 1 1 1 3 1 1

2 1 1

3 1 1

4 1 1 1 1 0

4 1 1 1 1 1 1

3 1 1

1 3 1 1

1 2

2 2

1 0

1 1 1 2

1 1 1 2

1 1 1 1

1 1 1 1

1 1 1 2

1 1 1 2

1 1 1 4

1 3 3 6

1 3 3 6

Task executed later than expected

Ideas Realisation Sponsor Implementation Finance Budget Evaluation of the expenses Evaluation of the return for investors Gestion of the wages

1 1 1 1 1 1 1 1 1 0 0 1 0 1 0 1 4 3 1 1 1 3 4 3 1 3 4 3 1 0 0 0 0 0 0 0 1 1 1 1 3 3 3

3 1 1 1

3 1 1 1

3 1 1 1

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3) Time Management
Organization: Open/Close List
TO DO LIST Distribution and analysis of the questionnaire Evaluation of the risks Preparation of the flyer Creation of the website and the facebook page Celebrity Endorsement Report

Kick- Review off

Completed

In process

Not applicable

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3) Time Management
Project assessment
Project Review
Organisation Communication
100 85 70 55 40 25 10 -5

Time

Teamwork

Experience

Budget
proceeding V

Performance
sustainable success E total G=(V+2E)/3

17

Contents
1 2 3 4 5 6 Market research Advertisement Time Management

Financial Plan
Risk analysis Conclusion
18

4) Financial Plan
Date

12/01 All Seeing

Budget *Executives are compensated at 50 per hr at 8hrs per week

Executive Salaries
Staff Salaries Fleet Advertising Expenses Misc Total

Name

Initial Estimated Budget

18,000
1,300,000 20,000,000

Actual Budget
46,800
790,560 7,200,000

Percent to total
0,58%
9,74% 88,69%

30,00
500,115 2,165 21,820,310

25,00
62,645 17,990 8,118,020

0,01%
0,77% 0,22%
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4) Financial Plan
Budget: Investment in percents
Advertising ,01% Misc 0,22%

Fleet 88,69%

Other 1% Expenses 0,77%

Exec Salary Drivers 9,74% 0,58%

ThemeGallery is a Design Digital Content & Contents mall developed by Guild Design Inc.

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4) Financial Plan
Expense Budget All Seeing Consulting Firm Salary of 50 per hour...at an average of 8 hours a week Personnel Project Manager Salary Logistics Salary Finance Salary Sub Project Manager Salary Marketing Research Salary Risk Management Salary Sub Project Manager Salary Time Management Salary Promotion Salary Travel Cost Misc expenses Others Operating Advertising Fleet Drivers salary Fuel Office supplies Postage Supplies Telephone Other Total Expenses Estimated Budget 2.000,00 2.000,00 2.000,00 2.000,00 2.000,00 2.000,00 2.000,00 2.000,00 2.000,00 100,00 50,00 50,00 Budget 30,00 20.000.000,00 1.300.000,00 500.000,00 15,00 5,00 10,00 50,00 2.000,00 Budget 21.820.310,00 Actual 5.200,00 5.200,00 5.200,00 5.200,00 5.200,00 5.200,00 5.200,00 5.200,00 5.200,00 110,00 50,00 50,00 Actual 25,00 7.200.000,00 790.560,00 62.400,00 10,00 5,00 10,00 0,00 18.000,00 Actual 8.118.020,00 Difference ($) 3.200,00 3.200,00 3.200,00 3.200,00 3.200,00 3.200,00 3.200,00 3.200,00 3.200,00 10,00 0,00 0,00 Difference ($) ( 5,00) ( 12.800.000,00) ( 509.440,00) ( 437.600,00) ( 5,00) 0,00 0,00 ( 50,00) 16.000,00 Difference ($) ( 13.702.290,00) Difference (%) 160,0% 160,0% 160,0% 160,0% 160,0% 160,0% 160,0% 160,0% 160,0% 10,0% 0,0% 0,0% Difference (%) -16,7% -64,0% -39,2% -87,5% -33,3% 0,0% 0,0% 0,0% 800,0% Difference (%) -62,8% Januar-12

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4) Financial Plan
Estimated ROI and Profitability
The initial return on investment for the first year is -0,67% Within three years the initial investment will be repaid and the Opportunity to include additional packages as well as buses will Increase our profitability. Our projected first year EBIT is equivalant to 1,002,240

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Contents
1 2 3 4 5 6 Market research Advertisement Time Management

Financial Plan
Risk analysis Conclusion
23

5) Risk Analysis
Risk Management
Budget Risk External Dependencies Risk Management Risk Mission Critical Risk Failure Risk Complexity Risk

Project RISK = 33
1 35 36 72 >72

Low Risk Medium Risk High Risk

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Project Risk Model Total Project Risk Score Interim Score Low Risk 1 - 35 Medium Risk 36 - 72 High Risk > 72 33 Med Budget Risk Score 33 Med External Dependencies Risk Med Management Risk Score Low Mission Critical Risk Low Failure Risk Score Low Complexity Risk Component Risk Assessments

Question Number Budget Risk 1 2 3

Project Risk Question What is the estimated total project cost? What percentage of the agency budget does the project represent? Have sufficient project funds been budgeted and allocated?

Answer Lists (Note--when you click in each answer cell, a drop down list arrow will appear) Project cost is greater than $5 million. The project is less than 2% of the agency budget.

4
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

All funding is budgeted and allocated. Accuracy of budget estimate is greater than 50% and less than or How much confidence is there in the expenditure and funding projections? equal to 85%. Is funding available for maintenance of the project deliverable after project closure? Maintenance funding is planned and available. Is this project dependent on another projects deliverable? Does this project require resources from other organizations? Does this project require data from other sources? What is the level of management commitment? Is the project sponsor resourcing the project? What is the experience and training level of agency project managers? How important is the project to meeting Commonwealth Strategic Objectives? How important is the project to meeting externally generated mandates? (Legislative, Executive. or Judicial) No other deliverables are required. Project requires some external resources. Data from other sources has some impact. Management is committed to the project. The project sponsor has control of some of the resources needed. The agency project managers have training and experience. The project has some impact on Commonwealth Strategic Objectives. The project has little or no direct impact on accomplishment of external mandates.

Mission Critical Risk

External Manageme Dependenci nt Risk es Risk

How important is the project deliverable to agency core business activities? The project is important to the organization core business activities. Has the agency and/or vendor executed similar projects? How will failure of the project impact the customers? How politically sensitive is the project? How new is the technological solution? Is the application of this solution new, proven, or untried? How many processes or business activities are impacted? Neither the agency nor the vendor has executed a similar project. There is no impact of project failure on the customers. Political climate has no impact on the project. The technology has been available for several years. Application of the technology is tried and proven. No critical business processes are impacted.

Complexity Risk

Failure Risk

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Contents
1 2 3 4 5 6 Market research Advertisement Time Management

Financial Plan
Risk analysis Conclusion
26

6) Conclusion
Deliverables
Deliverables Fully functioning website Adjusted Budget Expected Completion Date 05/12/2011 Actual Completion Date 28/12/2011

08/12/2011

07/01/2012

Estimated ROI Completion of Market Research

Procure a celebrity to endorse Above and Beyond

12/12/2011 12/12/2011

07/01/2011 09/12/2011

19/12/2011

19/12/2011

Finished Report 03/01/2012

Proceeding
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6) Conclusion
What we learned
The key ingredients to a succesful project is the ability to trust your colleagues as well as being open enough to give and recieve feedback. We also learned that time management is essential when delivering expected results. We will take with us the ability to communicate effectively as well as the abilty to function within a team.
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D o y o u h a ve a n y q u e s t i o n s ?

Thank You!
L/O/G/O
www.themegallery.com