The document provides an overview of MIB Group's proposed business incentives tourism company in Barcelona, Spain. [1] It analyzes Barcelona's strong tourism industry and status as a convention destination to identify an opportunity for a business focusing on providing incentive packages combining activities. [2] The company would partner with existing business incentives agencies by developing and managing special activity packages for the agencies' corporate clients. [3] The proposal outlines the company's planned service offerings and provides an analysis of Barcelona's tourism industry and the external factors and competitors that could impact the business.

1. Initial Business
Proposal – #1
Professor John Wetherell
BP - The Project
Business Overview and
Company Operation
12/12/2011

2. MIB Group “A”
Monika Baublyte
Simon Berger
Jean-Marie Carron
Anton Mladenov
Marco Foubert
Contents:
1. Our Business – Business Summary, Product Identification, the Experience
We Provide and the Value We Create, Business Figures and Calculations
2. External Factors - (PESTEL Analysis)
3. Competition Research and Analysis
4. Market Research – Process and Instruments

3. Our Business
According to the statistics, Barcelona is the second most populated city in Spain. It is well
known for its cosmopolitan and contemporary societies in the country. Barcelona is famous for
its ability to attract huge amount of tourists and is among the top destinations not only in Spain
but also in all European Union countries. It must be noted the existence of qualified
administrative and fiscal environment for tourism SMEs, and the increase of the quality of
service offered by cultural tourism businesses. Barcelona is a region with high levels of
entrepreneurial activity which is reflected in a high number of firms within the tourism sector.
The existence of formal networks among educational and entrepreneurial organisms facilitates
the exchange of information and is beneficial to the improvement of the quality of services in
tourism business.
Barcelona became a very sophisticated city in last five years and is one of the largest
convention centers in Southern Europe. According to “Barcelona Tourism”, in 2010 Barcelona
has hosted 2,138 meetings and 616,833 delegates. In comparison with 2009, the number of
hosted meeting and delegates, increased by 15.1% and 7.1% respectively. Indeed, in 2010 there
was a sharp increase of 39.5% in the number of delegates attending conventions and
incentives, which represents the corporate activity of businesses to choose the city as
convenient destination. According to “World Bank” rankings, Barcelona takes 45th place in high
income category countries to do business. Barcelona is ranked as 2 nd in the world for organizing
trade fairs and congresses according to International Congress Association (ICCA).
Barcelona is the headquarters of 458,918, mainly 98% of all companies are SMEs. The rate of
entrepreneurial activities is 6.7% and it is higher than European rate, which is 5.8%. What is
more, Barcelona is one of the leading European regions in hosting foreign investment projects,
which were 1,348.3 million Euros in 2009. The largest amount of foreign companies in
Barcelona is from France (626), Germany (572), United States (366), Italy (346), Netherlands
(307), United Kingdom (245), Switzerland (188), Japan (98) and other (633). Barcelona is
ranked as 5th best European city to do business, 2nd city in Europe of greatest progress, 4th best
known city in Europe.
All the given data gives a clear understanding that since, there is a large amount of local and
foreign companies and delegates who are coming to participate in the conferences gives an
idea that there is a huge or even an enormous market for “Business Incentives Tourism”.
Leading to this, the main idea is to provide business incentives services to SMEs and large
companies in collaboration with “Business Incentives Agencies”. This means that we will be
subcontractors of agencies and we will offer special packages of activities for the companies.
Explaining why we are willing to become subcontractors is because “Business Incentives
Agencies” already have an existing client data and they are always updating information about
new enterprises and potential clients. Leading to this, we will be responsible for all the various
services we can offer to our clients.

4. The packages offers will be divides in sub categories, which can be combined according to each
client’s preferences:
 Sports activities (Sumo – fighting, self defense, kick boxing, rafting, spinning, etc.)
 Relaxing activities (Yoga, fishing and etc.)
 Learning activities (Dancing classes, sushi – making classes, massage classes, Chinese
painting art classes, etc.)
 Fun activities (karaoke night, paintball, etc.)
The most important key factor is to give an additional value to our clients by providing special
and exceptional services, which will give:
 Ability to communicate within different departments in the company by participating in
the same outdoor activities such as dancing classes;
 Since it is really hard to retain the best talents in the company it is the best way to show
that company cares about its employees and provides them with additional incentives;
 Additional incentives builds commitment and helps to increase labor productivity;
 Common activities will build and develop strong corporate culture;
 Ability to attract potential employees by emphasizing company’s corporate identity.
According to the Department of Statistics in the beginning of 2011 there were 1,170 travel
agencies, tour operators and other related companies. Comparing with 2010, the number has
increased insignificantly by 2%. The not significant increase in the sector can be explained in
few ways:
 Difficult economic situation within the country
 Strong competition, market leaders position
 Low service diversification enable to enter the market
 Non competitive prices
 Many direct and indirect competitors
Leading to this, our company doesn’t have any market share yet, but with expertise, creativity,
sustainable strategy, commitment and in collaboration with significantly strong and leading
partners in the market we will be able to earn 20 % of market share in 5 years and become one
of the biggest and leading “Business Incentives Tourism” company in Barcelona. Revenues after
a 5 year entrance period are expected to be 800.000 Euros in net profit.

5. PESTEL Analysis – External Environment
PESTEL Analysis should give and overview of all external factors
which may influence the business of the company.
Economic:
Crisis (ongoing) =>
companies reduce/cut
incentives
Political: Stability of the €uro (or even
Travel restrictions for business going back to original
people currencies) Social:
Taxes on business tourism Exchange Rate Other trends for incentive
travel (other countries,
Support for domestic business wellness instead of active
travels (“make holiday in your courses)
own country”)
People avoid Barcelona
Taxes on incentives because of the crime rate
Higher taxes on labour (higher
costs for employers)
Our
Company
Legal:
New rules/standards of
Technological: environmental behaviour
New “activities” available make business difficult
which demand high Taxes on pollution make
investment to make them or Environment: some of the activities
which are for some reasons impossible (quad-driving,
difficult to copy New cities become business
centres (people are not speed boat…)
going for incentive travels to
Barcelona)
Barcelona looses
attractiveness for business
tourism (e.g bad reputation)

6. Competition Research and Analysis
Our main business competitors are:
Pymemarketing: event management agency, advertising and public relations, which aims to
improve company’s work in organizing special events, to facilitate their business and create a
climate that’s conducive to the brand. It operates in: Zaragoza, Huesca, Teruel, Madrid,
Barcelona, Valencia and Bilbao.
Allstarazafatas: a company composed of people with great experience in organizing events.
Their business is to locate, plan and design each event to customer needs. The company offers
hostesses, catering, space rental, audiovisual, security, transportation... It operates in Barcelona
and Seville.
Sebastian Group: Organization of Events. Barcelona, Spain.
She Events: Event Planning in Barcelona (Catalonia). Company specialized in coordinating
product launches, cocktail parties, gala parties, theme dinners, business meetings, incentive
travel convention openings and cultural and sporting events.
Okteam : Organizes corporate events, adventure activities, group dynamics, motivational
games and exercises, outdoor training, indoor activities and so on. Located in Tarragona,
Catalonia.
Muchoeventos : a portal for the organization of company events . It has business events,
shows, product launches and team building. The company uses unique spaces for its customers
to find venues for meetings and conventions with many included services such as catering,
accommodation and transportation, etc.
Central events: a company in organization, production and realization of events with offices in
Barcelona.
Here are some sites that link us to these and other competitors:
http://www.stressadrenalina.com/empresa.htm?gclid=CIna272c-qwCFUUPfAodVUWHSg
http://www.eventplannerspain.com/
http://www.okteam.es/
http://www.ambiance-incentives.com/
http://www.another-konzept.com/
http://www.alliedpra.com/destinations/spain.html
http://www.barcelonaadventure.com/index.cfm/p/packages

7. Market Research – Process and Instruments
Market research information will be used to identify and define key marketing opportunities
and issues, to generate, refine, and evaluate marketing actions, to monitor marketing
performance and to improve the overall understanding of the marketing process. Generally,
market research targets the information, manages and implements the data-collection process,
analyzes the results, and communicates the findings and their implications.
Our Marketing Research Plan will consist of four major processes:
1. Definition of the Research Objectives
2. Development of the Research Plan
3. Implementation of the Research Process
4. Interpretation and Reporting of Results
Generally, primary research comes after some secondary data is collected first. Secondary data
consists of information that is already gathered with a different purpose. This information
already exists and has to be applied to our specific research objectives.
The main sources of secondary data we are going to examine are:
a) Internal organizational sources such as income statements, balance sheets, inventory
records, company publications, etc.
b) External sources such as government publications, periodicals, journals, specialized
literature and commercial data.
Secondary sources can provide information that is not directly available or would be too
difficult to collect. However, the needed information may not exist. That explains why
researchers can rarely obtain all the data they need from secondary sources. We should
examine our secondary information carefully in order to evaluate four key elements:
1. Information Relevance (Related research project needs)
2. Accuracy (Reliability of collection and reporting)
3. Currency (Up to date information for supporting current decisions)
4. Impartiality (Objectivity in collection and evaluation)
Since secondary data is not collected for our specific purpose, there should be significant focus
on data interpretation. We should carefully analyze the information and its sources and always
be aware of differences in expression and meaning. We have to approach all information
thoroughly and try to identify the specific areas that need to be examined in our primary
research.

8. The primary research represents the collection of more specific market information, which is
intended to improve marketers’ understanding on already identified business points. Primary
data consists of information collected for the specific purpose and its collection requires more
extensive research, more time, and more resources.
The basic instruments that we are going to use in conducting our primary research will be:
1. Interviews: Structured or semi-structured conversations with potential customers or
industry experts.
- This tool provides an excellent opportunity to research the consumer buying potential and to
explore customer preferences for the specific activities in our service portfolio. By comparing
the responses of target interviewees we can decide on more specific features of our service and
develop our overall market approach. Interviews can be made both through meetings and by
the use of communication devices and software such as mobile phones and Skype.
2. Focus Groups: Small, structured group meeting consisting of 5 to 10 participants from a
target market segment.
- Focus groups can give us the chance to have structured discussions with interested sides, to
introduce our service to the industry and to-pre test new ideas related to our activity portfolio.
Major discussion points can be that the generated data may not be sufficient for effective
decision process, as well as the reluctance of participants to share personal beliefs and
information.
3. Surveys: Research instruments designed to test attitudes and perceptions on current
product offerings or defined future offerings. Can include quantitative and qualitative
data.
- Surveys will be an integrate part in our market research process. We should aim to create an
extensive, yet easy to comprehend surveys that can serve as a fundamental point in our
marketing information strategy. We can create complicated analytical result management
system and generate research reports on our survey information. The surveys may be
distributed electronically - using e-mail and social networks.
4. Observation: Observation of related activities.
- By visiting and/or participating in similar events we can get real life observation data. If
applicable, this can prove useful in our research. However, in the majority of cases, this hardly
generates enough quantitative information to go for specific market initiatives.
5. Experiment: Experimentation with different processes and activities
- We can try some specific activities ourselves, and/or invite potential customers and experts to
observe and participate in the creation and development of special events.