Our business is mainly providing Skydiving with a safe environment with highly trained professionals. We are providing them with all the necessary equipment with trainings from the professionals which is usually hard to afford individually. We aim to get as many people as possible to experience skydiving for them, in a safe and enjoyable fashion. As far as our findings there are no companies in Pakistan that are providing skydiving service. As a result we will be the first one to introduce skydiving business and create n industry. This will open opportunities for many other interested entrepreneurs to join this industry.
So this can be said that our business will be the first one to create a skydiving industry in Pakistan specifically in Karachi. We are going to target the people ranging from 18 to 49, both male and female, with a college degree, and a median income of 55,000 or more annually. If the household is a family not Just a couple or single person than the income will need to be over 75,000. We are introducing skydiving services in Karachi, the largest city of Pakistan in size and population of about 15386364 (2010) out of which 75954 persons are our total market or target market.
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It is the biggest market for such business in Pakistan because it’s the business hub, people can afford such activity and they are well-educated than rest of the country. The market that the items and especially the prices will be targeting is the upper middle and the upper class. Excursions Unlimited (private) Limited has identified two target market segments, sports clubs and professional extreme sportsmen (individuals) which will be the main targeted customers. Professional sports clubs will be given full priority to practice in Excursions Unlimited (private) Limited.
Initially, our focus will be to develop visibility within the sports community, enough to be able to sign up groups which are the key to revenue generation. The need to sign up sports groups will drive the marketing activities that Excursions Unlimited (private) Limited will undertake in order to generate revenue in the future. We will start our business at French Beach in Karachi. This is one of the most popular area where there are a huge numbers of tourists and young bloods go on vacation. There is no existing business that is similar to our service so it could be said that there are no competitors.
There are few sports such as Scuba-Diving and other. These businesses are way behind in terms of thrill, excitement etc. So we have a full chance of being ahead in the long run. From the beginning year we will be maintaining a fully informative website where our customers can easily book marketing plan on beach view By Thanksgiving schedules and also see the existing schedules. In our website we will be broadcasting videos of those groups that will use our service. This will be a huge advantage for us. Excursions Unlimited (private) Limited plans to expand to other areas as well.
After the successful opening of the first branch, we would also open another branch that would create an ever bigger market share. Hence with different promotional strategies we will be spreading its arms in other places as well providing an adventure sport services to the customers. Our long term objective is to become the premier and pioneer skydiving club. Before opening the company, Excursions Unlimited (private) Limited conducted the survey about the target market of sky diving in Karachi. We got tremendous response from our respondents.
Our respondents not only showed their interest in sky diving but they would welcome this sort of adventurous activity in Karachi. Our 77% of the respondents, showed interest in sky-diving and find affordable to cost of such activity. We will be booking from Monday to Saturday and we will offer a skydiving service once a week on Sunday. We will offer altitude ranging from 4000 Ft. To 12000 Ft. The company is planning to set up the ticket price at approximately 5700 PACK per Jump. The price would be affordable enough for our targeted customers and it would also be our entry price into the Karachi market.
We are determined to update the prices as often as possible so as to remain relevant in the business We will advertise on major bill boards, also plans are underway to list advertisements on popular social sites that are mostly frequented by the youth like face book and twitter. The management is also negotiating with energy drink companies like Mountain Dew so as to sponsor our advertisements on special TV shows such as ” Living on the Edge” that our target market seem to appreciate , thus creating awareness of our product ,also the development of the company website which is almost done will come in handy.
We intend to use promotional pricing as a tool to generate more customers and to encourage the purchase of more tickets by our target market. We will give free phone balance to our customers when they purchase a ticket and this incentive might encourage the purchase of more tickets and also we will provide them T-shirts with our logo printed on it. Other incentives will also be developed. The company will outsource some sales staff from a reputable organization so as to do personal selling to our target market.
The sales staff will be clad in company printed t-shirts and they ill interact directly with the customers and try to build some sort of relationship with them and this will enable our customers to know more about the service that we are giving. Since we are dealing with a service from the extreme sport industry, we have hired world renowned USPS licensed instructors who are endowed with relevant expertise & experience making it known to our customers that whenever they take a Jump they are in safe hands.
The company will use different avenues to sell its tickets to the consumer like direct sale through our email address, company offices, or sports clubs signed up by us. Our fixed expense for a month is PACK. 477000, per unit variable expense is PACK. 1800/activity, per unit selling price is PACK. 5700/person, and contribution margin per unit is PACK. 3900 So Excursions Unlimited (private) Limited will have to conduct 122 sky diving activities per month in order in achieve Break Even.
At 12th activity, our net income will increase by 3900 PACK and so CONSUMER ANALYSIS CUSTOMER NEEDS: Building products consumers are looking for low maintenance, high quality, and long lasting equipment. We want materials that can withstand the weathering of all climates, and fits successfully with any weather. We are also looking for the service to be readily available and to the people who sell the service to have some education on the subject. The need for the adventure at a good price, in composite is also key they are not necessarily looking for cheap, but they do want comparable pricing to other skydiving firm’s out in the market.
Lastly they also want us to take a guarantee of safety. No matter the market the need for services like skydiving due to depression tension and because of this fast moving life. CURRENT/POTENTIAL CUSTOMERS: Mainly sportsmen of any age because they are more energetic, adrenaline rush oversee. Youngsters who love adventurous sports like hiking, scuba-diving etc. Basically people ranging from 18 to 49 is our targeted customer age with an average to high income because the skydiving sport is not a cheap one.
We would like to break into the market of other adventurous sports like scuba diving, hiking, bungee Jumping etc. MARKET RESEARCH: We are going to use a multiple target market approach because Witt skydiving we can also target students who are in universities, Office personnel who want some excitement in their lives. Reaching out not only to domestic markets but also being available and progressive and pushing out products internationally. We are going to target ages 18 and over, with a college degree, and a median income of 55,000 or more annually.
If the household is a family not Just a couple or single person than the income will need to be over 75,000. The best way to glean this information will be to start with qualitative research with the sportsmen to see where they go for some adrenaline rush. Will also want to check with the sportsmen on what will make the use of this service easiest for them if they wanted to apply it themselves. Lastly some secondary research should be done on the internet looking at certain websites to see what people advertise and how the services we make can fit into their selling strategy.
DEMOGRAPHICS: Trend of population growth (in millions) in Karachi Largest city of Pakistan in size and population and the biggest market for such business in Pakistan because it’s the business hub people can afford such activity and they are well-educated than rest of the country. MASON’S HIERARCHY OF NEEDS AND SKYDIVING: Abraham Moscow explained why people are driven by particular needs at particular times. He questioned why one person spends much time and energy on personal safety and another person on gaining the esteem of others.
Moscow thought that human needs are arranged in a hierarchy, from the most pressing to the least pressing. In his model lower-level needs such as psychological requirements and safety must be satisfied before higher-level needs such as self-actualization are pursued. According to this hierarchical model, when a need is mostly satisfied it no longer motivates and the next higher need takes its place. “Extreme sport experience does involve an intense fear. However, rather than let the influence of fear take control of the situation the extreme sport participant continues to undertake their chosen sport.
That is extreme sport participants face these intense fears, accept that control of the future is not always possible and move through these fears to undertake an action. It would seem that by taking this action despite the intense fears a person moves towards a greater understanding of self” (Brayer, 2005). Thus, skydiving sport stands on the top of the needs pyramid as it is related to both esteem needs and self-actualization. And according to this hierarchy, the need for enriching experiences is the last in the list of the human needs to satisfy, which makes the marketing of skydiving more complicated.
Since skydiving is an activity that is experienced by people of all colors and religion, there are not any restrictions to any race. Income: People belonging upper middle and upper class will be able to enjoy the services that Excursions Unlimited (private) limited has to offer The cryptographic variables that attribute to our market are definitely those that the customers are looking for to have a peaceful time with their families and friends that our company has to offer. Apart from this, the following cryptographic variables are also covered by our marketing plan: Personality:
Skydiving depicts the personality of people who are bored and are in need to boost up their energy levels. Individuals, such as business persons who feel fatigued, and want to have a peaceful time having an adventurous excursions are one of the personality that our Excursions Unlimited (private) limited will be offering to. Then come to individuals who feel the risk of skydiving as bitterer, so Excursions Unlimited (private) limited will be providing them a combination of safety equipment along with a professionally trained instructor in a manner that they can feel secure.
Lifestyle: As mentioned earlier, the market share that we will most likely attain is from the customers who belong to upper middle and upper class, so the Excursions Unlimited (private) limited offering will be a reflection of these classes life style. The variables to be covered regarding the behavior of our customers are as follows: Benefits sought: Additional benefits will also be offered by Excursions Unlimited (private) limited like giving coupons such as for “1 5% discounts on a group of 5” and free gifts.
Brand Loyalty By offering a soothing and cooperative environment, the customers will be brand loyal. Excursions Unlimited (private) limited as is a native brand will offer that most sports clubs in the area are not offering.The market that the items and especially the prices will be targeting is the upper middle and the upper class. Excursions Unlimited (private) limited has identified two target market segments which will be the main targeted customers. Sports clubs: These are our primary targets as sports clubs are the ones those cannot afford equipments by themselves.
As a result they will rely on us. So these sports clubs will be our main revenue earning source. Professional extreme sportsmen: These are our secondary targets. We will provide a fixed schedule for some professionals which will attract others and by watching others they will be inspired for practicing skydiving in Excursions Unlimited (private) limited. Professional sports clubs will be given full priority to practice in Excursions Unlimited (private) limited. As far as our findings, there are no companies in Pakistan that are providing skydiving service.