The Coffee Bean & Tea Leaf(CBTL), Business strategy case study
Businessplan For Tourism & Index
1. Business Plan for Tourism
Index
Index ........................................................................................................... 1
1. General..................................................................................................... 3
Short History .............................................................................................. 3
Company Info............................................................................................. 3
2. Business Description ................................................................................... 4
Industry Analysis ........................................................................................ 4
Mission ...................................................................................................... 4
Business Goals ........................................................................................... 4
Project Objectives ....................................................................................... 4
Future Developments .................................................................................. 4
Value Proposition ........................................................................................ 4
The Brand Proposition .................................................................................. 4
Business Model ........................................................................................... 4
3. Market Analysis .......................................................................................... 5
Industry Analysis ........................................................................................ 5
Targets and Growth ..................................................................................... 5
1. Local Market..................................................................................................... 5
2. Your market ..................................................................................................... 5
3. Your Target Market ........................................................................................... 5
4. Target Market Research ..................................................................................... 6
5. B2B Market – Selling your project through an Incoming Agent or a Wholesaler .......... 6
Competitive Analysis ................................................................................... 7
Direct: ................................................................................................................ 7
Indirect: .............................................................................................................. 7
Competitive Positioning: ........................................................................................ 7
Barriers to enter the market:.................................................................................. 7
Name the barriers which may make it difficult to enter your project or your product into
the market. ......................................................................................................... 7
Competitive advantage: ......................................................................................... 7
SWOT Analyses .......................................................................................... 7
McDonald’s Hamburgers (Example) ......................................................................... 7
Pricing strategy .......................................................................................... 8
Demand Forecast and Evolution of Market ...................................................... 8
4. Product ..................................................................................................... 9
Product Outline ........................................................................................... 9
What kind of products are you selling? ........................................................... 9
1. A ................................................................................................................ 9
2. B ................................................................................................................ 9
3. C ................................................................................................................ 9
4. D................................................................................................................ 9
5. E ................................................................................................................ 9
6. F ................................................................................................................ 9
5. Marketing .................................................................................................10
Affiliation Marketing ...................................................................................10
E-Marketing ..............................................................................................10
Direct marketing ........................................................................................10
Sales ........................................................................................................10
B2C Sales .......................................................................................................... 10
Selling your project or product to consumers .......................................................... 10
B2B sales .......................................................................................................... 10
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Copyright: Nelleke Pruijs, Antwerp
2. Business Plan for Tourism
6. Planning & Implementation .........................................................................11
7. Financials .................................................................................................12
Assumptions & Limitations...........................................................................12
Projected P & L ..........................................................................................12
PROJECTED P&L STARTUP .................................................................................... 14
PROJECTED P&L FIRST YEAR OF OPERATION .......................................................... 15
PROJECTED P&L FOR 5 YEAR PERIOD .................................................................... 17
Projected Cash flow ....................................................................................19
PROJECTED CASHFLOW START-UP ........................................................................ 19
PROJECTED CASHFLOW FIRST YEAR OF OPERATION ................................................ 20
8. Investment Request ..................................................................................22
Contact Information ...................................................................................22
About Our Business ....................................................................................22
What is your project/company's unique value proposition? ........................................ 22
Description of your product or service. ................................................................... 22
USP’s ................................................................................................................ 22
Who are your target customers? ........................................................................... 22
Describe your primary and secondary target market ................................................ 22
Business info...................................................................................................... 22
About your Finances............................................................................................ 23
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Copyright: Nelleke Pruijs, Antwerp
3. Business Plan for Tourism
1. General
Short History
Write a short history of the project and how it has developed
Company Info
The business location
Describe the location in connection with other points of interest
Physical business address
Management Bios
Name the people responsible for the management of the project. Give an outline of
their responsibilities. Such as:
• General Manager
• Product Development and Business & Sales Manager
• Financial officer
• Marketing manager
• Webmaster
• Customer service
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Copyright: Nelleke Pruijs, Antwerp
4. Business Plan for Tourism
2. Business Description
Industry Analysis
Study the tourism industry in your area. Get numbers, figures and statistics.
Mission
Try to explain in one sentence what you want to achieve and how you think to achieve it.
Think of a slogan that you can use to encourage your co-workers to reach your goal.
Business Goals
Describe your goals in detail and in several points
Project Objectives
Describe the objectives to achieve your goals in detail and in several points
Future Developments
Describe what your futures plans are to further develop your project.
Value Proposition
Describe why your project is important, why is it different or of more value then other projects
in your area.
The Brand Proposition
How to establish your project as a ‘brand’ with instant recognition. A ‘must see’ project.
Establish who you want to attract with your project.
Business Model
Describe your business model: privately owned, cooperative, government owned
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5. Business Plan for Tourism
3. Market Analysis
Industry Analysis
What are the main tourist attractions in your area? Where do tourists come from, how long do
they stay, what do they want to see. Do they come in groups or as individual travelers?
Targets and Growth
1. Local Market
The potential of the market is the total number of people who visit your area per year. Find
out the growth over the last few years and the expected growth over the next few years.
Make a difference in visitors from national origin and international origin.
2. Your market
The potential of your market is the total number of people who visit your destination per year.
Find out the growth over the last few years and the expected growth over the next few years.
Make a difference in visitors from national origin and international origin.
Show these figures in graphs and tables.
3. Your Target Market
Primary Target Market
• Age group
• Household index
• Socio Economic Group
• Spending patterns
• Coming from: National: what province or city – International: what country
This will establish on which group you needs to focus your marketing efforts. You can now
make a judgment, founded on the basis of these facts that you should concentrate your efforts
on which group of tourists. Example graph:
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Copyright: Nelleke Pruijs, Antwerp
6. Business Plan for Tourism
Secondary Target Market
• Age group
• Household index
• Socio Economic Group
• Spending patterns
• Coming from: National: what province or city – International: what country
Identify your secondary market.
4. Target Market Research
It is important to try and do some market research to establish your primary and secondary
market. You can do a little survey with all the people that visit your destination over a period
of time.
Age of Respondents
18-25
26-35
36-45
46-55
56-65
65+
As the example chart above will show the age of most of the respondents that fall mostly into
your primary and secondary target group. A good result can be reached by questioning
passengers at the airport or the harbor while waiting for their departure.
Other questions can be:
How did you hear about our destination
Where did you book your visit to our destination
What is the purpose of your visit
Where did you stay: hotel, family, self catering
Where is your home
In what socio-economic class do you belong
How many people in your family
How do you rate your visit to our destination
Etc.
5. B2B Market – Selling your project through an Incoming Agent or a Wholesaler
Study the perspectives of selling through an agent who will do your marketing for you, but will
take a substantial share of your profits for themselves.
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Copyright: Nelleke Pruijs, Antwerp
7. Business Plan for Tourism
Competitive Analysis
Direct:
Direct competitors in your area are locations that offer more or less the same product.
Indirect:
Indirect competitors are destinations that offer a different kind of product or a package
including a similar product, but may target the same group of clients. Also similar products but
in a different location may be categorized as indirect competitors.
Competitive Positioning:
With the help of your SWOT analysis you can establish if your position in the marketplace is
unique in your area. Try to find something that makes your product different from direct
competitors.
Barriers to enter the market:
Name the barriers which may make it difficult to enter your destination or your product into
the market.
Competitive advantage:
Name your advantages which may make it less difficult for your destination or
product to enter the market as compared to your competitors.
SWOT Analyses
SWOT analyses are a very important part of your marketing plan. Name at least 5 competitors
(direct and indirect) and study the difference between them and your destination or product.
McDonald’s Hamburgers (Example)
123 Main Street
Touristtown
Country (Map)
Phone: 781-444-1113
Fax: 781-444-1146
http://www.mcdonalds.com
McDonalds sells hamburgers all over the world.
Major Strengths
• 1. McDonalds was the first to sell hamburgers and is a first mover
• 2. McDonalds sells Coca Cola
• 3. Is open all year round, every day and 24 hours a day
• 4. Has a very strong brand image
• 5. Makes more hamburgers then any other company.
Major Weaknesses
Is seen as the representative of American commerce and therefore always a target in anti-
America feelings. Is fast food and seen as not healthy.
Biggest Opportunities
1. You make better and healthier food
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8. Business Plan for Tourism
Biggest Threats
1. McDonalds starts to sell healthier food
Addition to SWOT analysis:
Give your thoughts on how you think your products can survive a competitor like McDonalds.
Pricing strategy
To establish the correct price for your product you have to answer the following questions:
1. What is the cost price of your product; include marketing, advertising, wear & tear,
staff, utilities, mail, website, administration, etc.
2. Make a best case scenario
3. Make a worst case scenario
4. Add your profit margin.
5. If you decided to market your product through a wholesaler or incoming agent, add
their commissions
6. Compare your product price with that of your competitors for a similar product (refer
to your SWOT analysis). If you are too high, you will have to cut your expenses
somewhere.
7. Set your sales price, preferably for 5 years in advance.
Demand Forecast and Evolution of Market
Use your forecast (see Targets & Growth) to evaluate the pricing of your product in the future.
You must avoid having to raise the price by more then 5% per year.
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9. Business Plan for Tourism
4. Product
Product Outline
Give a general description of your product.
What kind of products are you selling?
1. A
2. B
3. C
4. D
5. E
6. F
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Copyright: Nelleke Pruijs, Antwerp
10. Business Plan for Tourism
5. Marketing
Affiliation Marketing
Try to find a company or tourist project that you may be able to partner with in order
to optimize marketing efforts.
Representation in other countries, tourist office.
Press trips
E-Marketing
Marketing through internet.
Banner and sponsored link campaigns
Direct marketing
Contacting the client directly.
Travel markets and consumer shows – piggy back with local tourist organizations
Sales
B2C Sales
Selling your destination or product to consumers
- Brochures in local hotels and other tourist spots
- Shows and consumer fairs
- Include tours at local tourist information
- Press trips for consumer publications
- Offer special all inclusive packages
- Collect email addresses of visitors to contact with special offers in the future
B2B sales
Selling your project or product to wholesalers, incoming agents, hotels, tour companies
- Local businesses: contact directly
- Shows and trade fairs
- Sales Presentations
- Press trips
- Keep sales contacts and b2b mailing lists updated
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Copyright: Nelleke Pruijs, Antwerp
11. Business Plan for Tourism
6. Planning & Implementation
Make a roll out plan for your project, making sure that you have all finances secured before
you go to the next stage of your project. See attached example.
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12. Business Plan for Tourism
7. Financials
Assumptions & Limitations
This paragraph outlines the most important assumptions used in the profit & loss and cash
flow projections. These assumptions must ensure a very conservative, but realistic budget.
The following paragraphs will outline major assumptions; more details should be given after
presenting the budgets themselves.
Currency & Exchange Rates
All budgets should be presented in a global currency if working internationally or in a local
currency if working nationally. Keep exchange rates in mind if applicable.
Taxation and Insurance
Make sure you are up to date with all tax related issues and insurances. Include all taxes and
insurances in your financials.
Time span
Rolling projections are made for 5 years. The period is being refreshed every 6 months; the
figures are reviewed and adjusted where applicable. Allow inflation to be a factor in the
reviews.
Operational and Financial Cost
The costs are divided into operation and financial costs. Only interest paid on loans and
interest received on liquidity should be taken into account for financial cost. Repayments and
receipts of loans are not included in the p&l, only in cash flow planning. Loan interest should
be set at a conservative annual rate.
Projected P & L
The following paragraphs will detail the profit & loss for pre-start up, the first 12 months of
operation and a 5 year overview.
Pre-start up
The costs associated with the pre-start up period can be divided into 2 different categories.
First of all there are the costs associated with creating the company and developing the tools
“start-up cost”. Secondly there are costs associated with preparing the actual start of the
project. These costs include the set-up of office and initial marketing. No revenues can be
expected during this period.
First Year of operation
• Visitors
The numbers of unique visitors are based on the target audience and are dependent on the
marketing budget. Number of visitors is expected to increase during the course of the 12
month period.
• General Office
As the company becomes operational, expenses such as staff, communication, travel and
office supplies will be incurred.
• Marketing & Sales
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13. Business Plan for Tourism
A marketing & sales budget has been included to facilitate the efforts described earlier in this
business plan. Variations in the sales budget are due to the fact that you may want to attend
major tourism exhibitions. This will require a stand to be build and promotional material to be
available.
• Admin
Back office, accountant and legal support will be required. This may be calculated as outside
costs.
• Revenues
Revenue projections are based on the potential visitors spending, entrance fees, etc.
• Results
Calculate using the above figures a future operational break even point.
Five Year forecast
Project a five year forecast. Calculate when you have compensated all losses and when you
will become truly profitable.
Your cash flow should be based on your investments. Calculate when repayment of loans will
be feasible and when full repayment of loan will be completed.
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Copyright: Nelleke Pruijs, Antwerp
21. Business Plan for Tourism
PROJECTED CASHFLOW 5 YEAR PERIOD
Projected Cash flow YR 2005 YR 2006 YR 2007 YR 2008 YR 2009 YR 2010
Start-Up Expenses / Pre Launch 60,500 0 0 0 0 0
General Office 29,067 89,023 292,042 470,832 476,485 482,654
Technical 40,277 210,507 784,952 1,248,471 1,678,631 2,122,237
Marketing & Sales 184,000 1,179,500 2,595,000 1,920,000 1,920,000 1,920,000
Admin 23,000 24,240 24,240 24,240 24,240 24,240
Staff 50,600 251,371 593,813 699,656 717,147 735,076
TOTAL EXPENSES 387,444 1,754,641 4,290,047 4,363,199 4,816,503 5,284,207
TOTAL RECEIPTS 29,962 874,681 4,141,166 6,347,837 6,520,026 6,695,033
CASH FLOW -357,481 -879,960 -148,882 1,984,638 1,703,523 1,410,826
LOAN INTEREST 10,047 63,773 116,898 77,523 8,773 23
INTEREST ON LIQUIDITY 1,721 13,822 6,342 17,785 27,056 55,698
LOAN REPAYMENT 0 50,000 300,000 1,200,000 900,000 0
LOANS 450,452 2,000,000 0 0 0 0
EFFECTIVE LOAN 450,452 2,400,452 2,100,452 900,452 452 452
EFFECTIVE CASHFLOW 84,646 1,020,089 -559,437 724,900 821,806 1,466,501
ROLLING FORWARD OPERATIONAL CASHFLOW -357,481 -1,237,441 -1,386,323 598,315 2,301,838 3,712,664
AVAILABLE FUNDS 84,646 1,104,735 545,298 1,270,198 2,092,005 3,558,506
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22. Business Plan for Tourism
8. One Page Investment Request
Contact Information
Company Name:
Web Address:
Street:
City
Country
Postal Code
Your Name
Phone
E-mail
About Our Business
What is your project/company's unique value proposition?
What are your project/company's key differentiators?
Description of your product or service.
What is your target market, and how does your product/service meet the needs of
this market?
USP’s
Who are your target customers?
Describe your primary and secondary target market
Business info
Founded in ?
Total number of employees today:
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23. Business Plan for Tourism
Target number of employees in 6 months:
Development status of your product:
First product or service delivery date:
About your Finances
Revenue YTD:
Target break-even date:
Total capital investment to date:
Characteristics of the current investment you are seeking:
Amount:
We expect this to last to:
Current burn rate ($ spent/month):
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Copyright: Nelleke Pruijs, Antwerp