PRODUCT PLAN FOR A HERITAGE KANDALAMA

BOATHOUSE

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HERITANCE KANDALAMA BOATHOUSE

.

Proposed Project By:Aitken Spence Hotel Managements (Pvt) Ltd

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Table of Content Page

1.0 Executive Summary ...……………………………………………….4

2.0 Situation Analysis…………………………………………………….5

2.1 Market Summary ……………………………………………....5

2.2 SWOT Analysis ………………………………………………..7

2.3 Competition ……………………………………………………9

2.4 Product Offering ……………………………………………...10

2.5 Keys Success Factors & Critical Issues………………………11

3.0 Marketing Strategy ……………………………………………….12

3.1 Mission ……………………………………………………….12

3.2 Marketing Objectives…………………………………………12

3.3 Financial Objectives ………………………………………….12

3.4 Target Markets …………………………………………….…13

3.5 Positioning ………………………………………………..….14

3.6Marketing Mix ……………………………………………..…14

3.7 Marketing research …………………………………………..15

4.0 Financials ………………………………………………………….16

4.1 Break-Even Analysis……………………………………….. 16

4.2 Sales Forecast …………………………………….………….17

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4.3 Expense Forecast ……………………………………………17

5.0 Controls ……………………………………………………………18

5.1 Implementation ………………………………….…………..19

5.2 Marketing Organization …………………..…………………19

5.3 Contingency Planning………………………………………..20

References……………………………………………………………..21

Executive summary

The Heritance Kandalama Hotel located in the Sri Lanka near the eighth wonder of the rock

fortress of Sigiriya. Where the middle of the cultural triangle of Sri Lanka, near to five

UNESCO World Heritage Sites. As a new project by Aitken Spence, the Heritance

Kandalama Boathouse project is designed for people who looking for beautiful natural unique

scenery to enjoy their vacation peace and seclusion based on Kandalama Lake.

This boathouse provides unique luxurious Eco friendly experience for visitors.

The management of a project looking forward to facilitating their customers to obtain

unforgettable experience for their lives while traveling the cultural triangle in Sri Lanka by

introducing two kinds of Boathouse in the market. It crates wider target market for the

project.

The Boathouses target for foreigners, local newly married couples/honeymooners and well as

families.

The Heritage Kandalama Boathouse mission is providing its visitors with the highest quality

of service and standards within peaceful and secluded environment.. The management target

to be the market leader in the industry while valuing their place in the customer’s heart and

protecting environment

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2.0 Situation Analysis

The Heritance Kandalama Boathouse expects to begin their operation in this year. The

management wishes to make a new tourism trend in the Sri Lankan tourism market while

gaining success and profitable business for the organization. The bathhouses have offered

first ever tourist bathhouse experience in the market as per customer desires.

The projected boathouse offers unique, adventurous, luxurious, peaceful, enjoyable and

seclusion experience for their customers.

2.1 Market Summary

This marketing plan focuses on a new project houseboats system willing to launch in Sri

Lanka to create a new tourism trend in the Sri Lankan tourism industry. The products had

designed for the people who are wishing to have unique experience in their lifetime. The

boathouses provide excellent luxury, peaceful and seclusion vacation for its visitors.

This project will mostly focus with honeymooners’ foreign visitors and small families who

are searching for new trends in tourism.

Market Trend

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The management of the Heritage Kandalama boathouse has some favorable impact from their

market industry to focus their ability to this project

New trend towards the echo tourism

In the modern world, people are mostly looking for place to where they can have a

peaceful and secluded place in nature.

Increasing the demand for tourism industry in Sri Lanka

After the 19 years civil war, the number of foreign visitors who are visiting to the Sri

Lanka is gradually increasing. But current supply of the tourism industry is not

enough for the demand.

Market Growth

Currently, the Sri Lankan government more focuses with the development of tourism

industry in Sri Lanka. According to the sources of their publication, they mention following

marketing growth will be they anticipate for next 4 year in Sri Lankan tourism industry.

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(http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=26067)

Therefore according to potential tourism growth organizations who are in the industry and

willing to invest in tourism may gain huge benefits for their business. It makes a favorable

situation with the projected boathouses business.

2.2 SWOT Analysis

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(http://www.cbpp.uaa.alaska.edu/afef/swot.htm )

The SWOT analysis focuses on the strength, weaknesses, opportunities and threats.

Weakness and strength generated from the internal environment that can be managed within

the organization and opportunities and threats are generated from external.

Following is the SWOT analysis for Heritance Kandalama boathouse.

Strengths

Good Reputation

The Heritance Kandalama has won more than 50 awards for its environmental

policies, architecture, food and service. The hotel were the first Green Globe 21

certified hotel in Asia and, most recently, in June 2011, they won the Gold Award for

Built Environment in the prestigious Green Apple Awards.

(http://www.heritancehotels.com/kandalama/our-hotel.html)[08/01/2013]

Well experienced Staff

The staff is well experienced, highly motivated, trained and specialized within the

tourism industry. They speak English, French, Italian, Sinhalese and Tamil are eager

to help all the customers who visited to the place

Brand strength

Having a brand loyalty among guest who are visited and willing to around the world

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Green philosophy

Known as best echo tourism provider in the industry

Weaknesses

Marketing

The boathouse concept is new to the Sri Lankan market and the organization has to

give some effort to introduce it to their customers

Availability of experienced employees

The staff has lack of knowledge about boathouse safety systems. Because of that have

to hire new employees or trained the staff.

Opportunities

New marketing trends toward the tourism

Sri Lanka has 19 years civil war and after the war number of tourists from European

countries and around the word visited to the Sri Lanka is increasing.

Competitor

Current competitor provides his services for 3 months of period of the year and it's not

comparable with customers' desires and they provide their services as only as a

restaurant .

The area

The boathouse planned to start in based on Kandalama Lake, which is within the

cultural triangle in Sri Lanka. The lake is more peace and seclusion than competitors

based area.

Market demand

The demand for the unique tourism experience within the local crowd is increasing.

Threats

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Government policies

Government tax policies may affect the revenue of the boathouse

Entry of new competitors

Due to increasing of the tourism market in Sri Lanka organization who are currently

within the industry looking for new areas of tourism and the threat from them become

more significant to the project

Economic situation

Sri Lanka is a developing country and more frequently face on economic crisis

Threats from nature lovers

The Kandalama Lake and area, which it has, is a jungle. Therefore the pressure

groups may protest that introducing a boathouse is to reason for pollution of nature

Substitutes

The boathouse is substituted for the traditional hotel system and it is has some risk

than hotels in the land. It makes customer to think twice before they chose boathouse

for their vacation.

2.3 Competition

When considering about the Sri Lankan tourism market in currently it has huge competition

with each other’s. Therefore, it is important to analyzing about competitors to gain

competitive advantage from among the all of other organization’s and to be stable in the

market.

Competition comes under several forms;

From same service providers/Direct Competition

In Sri Lanka Currently there is an only one similar competitor in industry Who

operates in Gregory Lake in Nuwaraeliya and they only provide restaurant facilities

and cruise for the customer. Therefore competition from them are very less because

heritage Kandalama Boathouse wish to provide accommodation facilities to their

customers.

But outside the country, Kerala in India having well established boathouse business.

They are having a huge market share of that from the around the world. Reasonable

number of foreign visitors travels there only for having a vacation in the boathouse.

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From in-house Business activities

Currently the core business area of Heritage kandalama is operating as a five star

hotel. Therefore, it also gives direct impact to customer’s mind to stay in the land

hotel not having a risk from the boathouses

2.4 Product Offering

The Heritage kandalama Boathouse provides two bathhouses with different facilities.

All two boathouse designed by according to green philosophy of the organization. It is

echoing friendly and never has a harmful impact to the lake or the environment. They

offer customized packages for as per customer desires. The two Boathouse provided

by them are;

Luxury Boathouse

This boathouse specially designs for the honeymooners, couples and foreign visitors.

The Deluxe Boathouse has one bedroom with all other facilities.

Super Luxury Boat House

. This has 2 bedroom and design for family visitors .

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All other facilities as follows

A/C or non-A/C

A room with comfortable bed

Mini Bar

Kitchen with pantry

Life jackets, Fire extinguishers and life save the boat

All visitors who accommodate in Boathouse can prepare meals by them or management

willing to offer food by hotel. The management arranges all the safety facilities in on the

board and well as the off the board, All 2 the Boathouses employed with 2 employees who

are with well trained and there is a life guard team operates on land for 24 hours.

2.5 Key Success Factors & Critical Issues

This is the first boathouse introduce in the Sri Lankan tourism industry by giving luxurious

unique experience to the customers. The management of Heritance Kandalama Boathouse

expectation is gaining first mover advantage of the industry.

However, been a first mover in the industry makes some critical issues for the business, The

Boathousess concept is new to the Sri Lankan tourism industry and it gets some time and

have to give some effort to market it in the Sri Lanka. An organization should be guaranteed

to their customer’s mind that staying in Boathouse is not a getting risk and it’s a unique

experience for them in their lifetime.

3.0 Marketing Strategy

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The marketing strategy of the project has provided unique seclusion tourism experience to its

target market. Through giving better product, business anticipated to create a loyal customer

based towards them to face any competition likely to happen in future.

3.1 Mission

The Heritage Kandalama Boathouse mission is providing its visitors with the highest quality

of service and standards within peaceful and secluded environment.. The management target

to be the market leader in the industry while valuing their place in customers heart and

protecting environment.

3.2 Marketing Objectives

The management focuses on that is winning the market power by providing their guest to a

unique experience in the tourism industry. It will enable them to have better satisfaction

about the product from all among others and making business is more profitable one.

Following are the marketing objectives for the project for year 2013;

Having a monthly sales revenue growth of 20%

Increasing number of new customers visiting by 60% per month

Having a gross margin of 25% for each month

3.3 Financial Objectives

The main acceptance of the organization is the having a greater financial stability for their

business. Therefore, it is important to set a financial objective for the project within the

marketing plan.

The Heritance kandalama boathouses financial objectives are as follows

Having a total average sales revenue of Rs 2,250,000 per month

Increasing an average booking per month by 10% to make revenue increase by Rs

225,000

3.4 Target Markets

The target market of the Heritance kandalama Boathouse is

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Foreign visitors -35%

Honeymooners/ couples -35%

Families –from local market -15%

From Foreign visitors-10%

Others -5%

35%

35%

15%

10%

5%

Target marketForeign visitors Honeymooners/ couples QtrLocal Families Foreign FamiliesOthers

3.5 Positioning

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The management has a strategy for positioning the product by focusing on better market

selection, segmentation, providing better service and offering unique seclusion products and

Analysis of customers, markets, competitors, environment and marketing mix management.

These elements help them to identified firms’ strengths that will enable them to achieve the

target market.

3.6 Marketing Mix

The organization should consider about the marketing mix for archive to competitive

advantage. The marketing mix consistence four elements.

1. Product

This is the product or service offer to

customers

2. Price

The value of the product

3. Place

Where buyers can purchase the product or

service

4. Promotion

The method of attracting customer to the product/service (distribution method)

The Boathouses are the product of this marketing plan. It is willing to give unique holiday

experience for their guests.

The price of the product varies with services, which offered with Boathouse. However, it

projected at Rs 20000 for Luxury Boathouse and Rs 25000 for Super Luxury Boathouse for

guests who are spending overnight at the Boathouse.

The Boathouse located at Kandalama Lake in Dabulla Sri Lanka. The infrastructure of that

area is well developed and it facilitate guest to reach there.

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The local and foreign tourists considered as the target market of the project. Therefore, it is

necessary to have a wider advertising campaign to achieve considerable market share.

Advertising campaign operated through the local newspapers, television and web sites.

3.8 Marketing research

The Marketing researches conduct for to identify what are the products and sevicess

customers actually demand from the industry. It helps to organizations to change their

business as per the customers’ need and wants.

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4.0 Financials

The financial situation of the project plays major role in the marketing plan. Today’s world

everything becomes valuable therefore, all organizations are focus with their financial

stability. The organizations pay their more attention towards the break-even analysis, sales

revenue and cost of sales to become business that is more profitable.

The boathouse project forecasted their annual marketing budget as Rs. 10,000,000. the

anticipated annual revenue is Rs 10,800,000 and they willing to have their marketing

expenses approximately 10% from the overall sales revenue.

4.1 Break-Even Analysis

The Break –Even analysis show the relationship between sales revenue, variable cost and

fixed cost of the product. The point where sales revenue equals to all the costs known as

break- even point. After the break-even point, business can achieve their profit

4.2 Sales Forecast

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The Sales forecast shows what the organization’s future sales are, which generate

from sales and how the market behaves.

The estimated sales revenue for the boathouses is follows

Sales revenue Rs

Sales from Luxury Boathouse

(Sales per unit X sales units per year)

(20000* 300)

6,000,000

Sales from Super Luxury Boathouse

(Sales per unit X sales units per year)

(25000*300)

7,500,000

Total sales revenue 13,500,000

4.3 Expense Forecast

Expenses can know as the investment for the project. Following are the estimated expenses

for the boathouses;

Fixed Costs RsConduction cost 6,500,000Professional Services 2,500,000Advertising 350,000Marketing expenses 100,000Other 550,000Total Fixed Costs 10,000,000

The variable cost except to be occur as the 10% of the sales revenue

5.0 Control

The purpose of structuring marketing plan is to get a clear pathway to how to achieve the

organization’s strategic goals, which is the set to be the first to the market and become the

market leader by offering greater unique products for the tourism industry in Sri Lanka.

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Activity Performed By Date

Performance evaluation of staff Marketing manager Annually

Sales revenue and cost for the

operations

Accountant and Marketing Manager Quarterly

Customer Satisfaction with the

products and services

Internal Audit Annually

Competitors situation Marketing Manager Annually

Maintenance of product Maintenance Department Quarterly

Get necessary actions Marketing manager/

General Manager

As when it necessary

The above table shows that how to control activities in the organization to achieve their goals

as per the marketing plan;

5.1 Implementation

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The organization should be in focus with their activities whether those things are ongoing

with what they projected in the marketing plan. If the current situation is defer from the

projected plan plan will be altered or manipulated as necessary in order to react to and,

wherever possible, anticipate external changes to the environment.

5.2 Marketing Organization

The Heritance Kandalama Hotel has been five star Hotel manage under Aitken Spence Hotel

Public Limited Companies since 1990. The Marketing Plan structured by marketing Director

of the Heritance kandalama Hotel. The marketing director has solid education and industrial

background in marketing and Hospitality Management.

Under the marketing director’s direct supervision, there are five employees work with this

project. The marketing manager responsible for the advertising campaign and analyze the

market situation. These Two employees liable for conduct research in market segments and

analyzing about competitors.

5.3 Contingency Planning

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Most of the times actual results deferred from the projected results because of that it’s better

to have a contingency plan for the marketing plan. The contingency plan helps to

organization to continue their work without any matter.

The following circumstances’ may be happening in when the marketing plan operates in the

actual market. Some circumstances may be favorable or unfavorable to the project;

Projected demand is less than the actual demand

Planning for new boathouses

Increase the rate of charges for the boat house

Adding more value to product and services provide by the boathouse

Projected demand is more than the actual demand

Introducing new holiday package with boathouse facility for who are visiting to

the hotel

Launch another effective advertising campaign

Give discounts for the credit card holders

Improve the service quality

Decrease rate of charges for short period of time to gain more customer attraction

Actual revenue more than the Projected revenue

Improve the product and service quality offered to the Guests

Planning to launch a new boathouse

Adding more value to the service

Unexpected economical disadvantages

Decrease the rate of charges

Hold the boathouses launch for some period of time

References

Web Sites

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Aitken Spence Hotel Managements (PVT)Ltd,2012,Heritance Kandalama,[Online]Available:<http://www.heritancehotels.com/kandalama/>[Accessed 28th December 2012]

The Island,2011,Growth strategy for Sri Lanka tourism,[Online]Available:< http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=26067 >[Accessed 5th January 2013]

The Travel Planners,HouseBoats Holidays,[Online]Available:< http://keralatourpackages.com/ >[Accessed 5th January 2013]

Berry.T,The power of product positioning,[online],2008,[Online]Available:< http://articles.mplans.com/the-power-of-product-positioning/ >[Accessed 5th January 2013]

MacKechnie C, SWOT Analysis of a marketing Strategy,[Online]Available:< http://smallbusiness.chron.com/swot-analysis-marketing-strategy-5071.html >[Accessed 7th January 2013]

Contingency Planning Developing a Good ‘Plan B’,[Online]Available:< http://www.mindtools.com/pages/article/newLDR_51.htm >[Accessed 10th January 2013]

Break Even Analysis,[Online]Available< http://fast4cast.com/break-even-calculator.aspx >[Accessed 9th January 2013]

How to Choose Marketing Plan Objectives,[Online]Available< http://www.hellomarketing.biz/planning-strategy/marketing-plan-objectives.php >[Accessed 8th January 2013]

Determine Financial Objective,[Online]Available< http://www.knowthis.com/principles-of-marketing-tutorials/how-to-write-a-marketing-plan/determine-financial-objectives/ >{Accessed 8th January 2013]

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