For Travel & Tourism in Dubai

1. Market Feasibility Study
of PALM ISLAND
Presented By:
Yatin Bansal
Sunam Pal
Sree Hari Haran
Satish
1

2. features of Palm island
• Unique
• This makes it a resemblance of richness.
• To be related to palm island brings pride to
people as its one of its kind.
BENCHMARK-
2011,PSGIM,Coimbatore
2

3. Palm island taps various markets…
• Tourism
• Residential
• Entertainment area
• Resorts, hotels and restaurants
BENCHMARK-
2011,PSGIM,Coimbatore
• Cruise, boating and other water sports.
Safety and security
• It is more of a backwater than a sea beach.
• It is surrounded by high level boundaries which protects it
from high tides. 3

4. Alliance University Market Feasibility Analysis of Palm Island
PROJECT MANAGEMENT
Quantitative Tools
for Market Feasibility Test
4
SAT
17 APR

5. Alliance University Market Feasibility Analysis of Palm Island
PROJECT MANAGEMENT
Quantitative Tools
1. Forecasting
2. Percent Median Market Factors For Testing
3. Control Chart
1. Tourism Growth
4. Predictive Gravity 2. Entertainment Clubs
Modeling 3. Real estate Mapping
5. Assignment Model 4. Footfalls in Malls
5. Resorts possible areas
6. Customer Life Time Value
( CLV )
7. Sensitivity Analysis 5
SAT
17 APR

6. Alliance University Market Feasibility Analysis of Palm Island
PROJECT MANAGEMENT
Forecasting of Tourism Growth
Definition : The process of analyzing current and historical
data to determine future trends.
6
SAT
17 APR

7. Alliance University Market Feasibility Analysis of Palm Island
PROJECT MANAGEMENT
Step:1 Forecasting
Definition : The process of analyzing current and historical
data to determine future trends.
Year 2005 2006 2007 2008 2009 2010
No of Tourist 18,76519,867 21,654 22,123 23,778 25,169
No of Tourist
30,000
25,000
1. Regression Analysis
20,000
2. Moving Average
Axis Title
15,000
10,000 y = 1263.5x - 3E+06 3. Extrapolation
5,000 R² = 0.9877 4. Trend Analysis
0
2004 2005 2006 2007 2008 2009 2010 2011
Axis Title 7
dy/dx = Growth
Standard Deviation SAT
: 0.12 % 17 APR

8. Alliance University Market Feasibility Analysis of Palm Island
PROJECT MANAGEMENT
Step:1 Forecasting
Definition : The process of analyzing current and historical
data to determine future trends.
Year 2005 2006 2007 2008 2009 2010 2011 2012
No of Tourist 18,765 19,867 21,654 22,123 23,778 25,169 26,741 27,891
No of Tourist
30,000
25,000
20,000
15,000
10,000
5,000
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 8
Standard Deviation 2011 Forecast SAT
: 0.12 % : 26,741 17 APR

9. Alliance University Market Feasibility Analysis of Palm Island
PROJECT MANAGEMENT
Step:1 Forecasting
Definition : The process of analyzing current and historical
data to determine future trends.
Year 2005 2006 2007 2008 2009 2010 2011 2012
No of Tourist
The analysis gives an idea about
18,765 19,867 21,654 22,123 23,778 25,169 26,741 27,891
expected figure in Dubai but it does
No of Tourist
30,000
25,000
not show how will it impact
20,000 specifically palm Island
15,000
10,000
5,000
9
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 SAT
17 APR

10. Alliance University Market Feasibility Analysis of Palm Island
PROJECT MANAGEMENT
Step:2 Percent Median Market
Definition : It defines the percentage distribution across
various factor Helps to know
1. Market penetration
2. Potentiality of a particular segment
10
Standard Deviation 2011 Forecast SAT
: 0.12 % : 26,741 17 APR

11. Alliance University Market Feasibility Analysis of Palm Island
PROJECT MANAGEMENT
Step:2 Percent Median Market
Definition : It defines the percentage distribution across
various factor Helps to know
1. Market penetration
Tourism 2. Potentiality of a particular segment
Age Group < 25 25-30 30-40 40-50 50> Total
Will Visit Palm
12 24 49 21 9 115
Island
Will Visit Other
157 231 369 189 112 1058
Place
Will visit for both
Palm Island & 4 9 19 7 3 42
Other places
Total 173 264 437 217 124 1215 11
Standard Deviation 2011 Forecast SAT
: 0.12 % : 26,741 17 APR

12. Alliance University Market Feasibility Analysis of Palm Island
PROJECT MANAGEMENT
Step:2 Percent Median Market
Definition : It defines the percentage distribution across
various factor Helps to know
1. Market penetration
Tourism 2. Potentiality Percent Median table
The of a particular segment
can be formed based on
Age Group < 25 25-30 30-40 40-50 50> Total
Will Visit Palm
Island
12 24 1. 49
Customer Survey 115
21 9
Will Visit Other 2. Customer Feedback
157 231 369 189 112 1058
Place 3. Expert Opinion
Will visit for both
Palm Island & 4 9
4. 19
Historical Trends 42
7 3
Other places
Total 173 264 437 217 124 1215 12
Standard Deviation 2011 Forecast SAT
: 0.12 % : 26,741 17 APR

13. Alliance University Market Feasibility Analysis of Palm Island
PROJECT MANAGEMENT
Step:2 Percent Median Market
Tourism
Age Group < 25 25-30 30-40 40-50 50> Total
Will Visit Palm
12 24 49 21 9 115
Island
Will Visit Other
157 231 369 189 112 1058
Place
Will visit for both
Palm Island & 4 9 19 7 3 42
Other places
Total 173 264 437 217 124 1215
Market Penetration = (115 + 42 ) / 1215 = 12.92 %
13
Standard Deviation 2011 Forecast Marketing Penetration SAT
: 0.12 % : 26,741 : 12.92% 17 APR

14. Alliance University Market Feasibility Analysis of Palm Island
PROJECT MANAGEMENT
Step:2 Percent Median Market
Tourism Potentiality of customer segments
Age Group < 25 25-30 30-40 40-50 50> Total
Age Group % share Preference
Will Visit Palm
12 <24
25 49 21 95 115
Island 14.23868313
Will Visit Other 25-30 2
157 231 369 189
21.72839506 112 1058
Place
Will visit for both 30-40 35.96707819 1
Palm Island & 4 9 19 7 3 42
Other places 40-50 17.8600823 3
Total 173 264
50> 437 217 124
4 1215
10.20576132
TOTAL 100
Market Penetration = (115 + 42 ) / 1215 = 12.92 %
14
Standard Deviation 2011 Forecast Marketing Penetration SAT
: 0.12 % : 26,741 : 12.92% 17 APR

15. Alliance University Market Feasibility Analysis of Palm Island
PROJECT MANAGEMENT
Step:2 Percent Median Market
Tourism Potentiality of customer segments
Age Group < 25 25-30 30-40 40-50 50> Total
Age Group % share Preference
Will Visit Palm
12 <24
25 49 21 95 115
Island 14.23868313
Will Visit Other
It gives idea about market penetration &
Place
157 25-30
231 369 189
21.72839506 2 1058
112
30-40 1
customer4segment, but still gives no idea
Will visit for both 35.96707819
Palm Island & 9 19 7 3 42
40-50 3
about the feasibility of project
Other places 17.8600823
Total 173 264
50> 437 217 124
4 1215
10.20576132
TOTAL 100
Market Penetration = (115 + 42 ) / 1215 = 12.92 %
15
Standard Deviation 2011 Forecast Marketing Penetration SAT
: 0.12 % : 26,741 : 12.92% 17 APR

16. Alliance University Market Feasibility Analysis of Palm Island
PROJECT MANAGEMENT
Step:3 Control Chart
Potentiality of customer segments
Control charts, also known as process-behavior charts, in statistical
process control are tools used to determine whether or not a
manufacturing or business process is in a state of statistical control.
It has : USL : Upper Specification Limit
LSL : Lower Specification Limit
16
Standard Deviation 2011 Forecast Marketing Penetration SAT
: 0.12 % : 26,741 : 12.92% 17 APR

17. Alliance University Market Feasibility Analysis of Palm Island
PROJECT MANAGEMENT
Step:3 Control Chart
Potentiality of customer segments
Control charts, also known as process-behavior charts, in statistical process
control are tools used to determine whether or not a manufacturing or business
process is in a state of statistical control.
LSL 3000 3500 USL
• Under Utilization • Over capacity
• No ROI • Risks
No of tourist
Expected Tourism in 2011 = ( 26,741 X 0.1292 ) = 3208.92
17
Standard Deviation 2011 Forecast Marketing Penetration SAT
: 0.12 % : 26,741 : 12.92% 17 APR

18. Alliance University Market Feasibility Analysis of Palm Island
PROJECT MANAGEMENT
Control Chart
Potentiality of customer segments
Control charts, also known as process-behavior charts, in statistical process
control are tools used to determine whether or not a manufacturing or business
process is in a state of statistical control.
LSL 3000 3208 3500 USL
Feasible
• Under Utilization • Over capacity
• No ROI • Risks
No of tourist
Expected Tourism in 2011 = ( 26,741 X 0.1292 ) = 3208.92
18
Standard Deviation 2011 Forecast Marketing Penetration SAT
: 0.12 % : 26,741 : 12.92% 17 APR

19. LSL USL LSL USL
Feasible Feasible
No Risk but Risky
BENCHMARK-
2011,PSGIM,Coimbatore
LSL USL
Not Feasible
19

20. BENCHMARK-
2011,PSGIM,Coimbatore
Tourism at Palm Island is Feasible
20
But feasibility may differ on territory level

21. Weak territories
Strong territories
BENCHMARK-
2011,PSGIM,Coimbatore
Tourism at Palm Island is Feasible
21
But feasibility may differ on territory level

22. Alliance University Market Feasibility Analysis of Palm Island
PROJECT MANAGEMENT
Step:4 Predictive Gravity Modeling
Potentiality of customer segments
Forecast the total potential sales available
from each neighborhood in the trade area
The model should be
designed to mesh with the Input
data that will be used when variables V1 V2 V3
the model is implemented.
In GIS analysis and most
other large data
analyses, the F(X)
characteristics of
individuals are summarized
into the neighborhood's
demographic or
Output
psychographic profile ( Graphic user Interface )
22
SAT
17 APR

23. Alliance University Market Feasibility Analysis of Palm Island
PROJECT MANAGEMENT
Step:4 Predictive Gravity Modeling
Potentiality of customer segments
OUTPUT
Market Penetration
23
SAT
17 APR

24. Alliance University Market Feasibility Analysis of Palm Island
PROJECT MANAGEMENT
Step:4 Predictive Gravity Modeling
Potentiality of customer segments
OUTPUT
Feasible
Case: Market Penetration
Opening a
shopping Mall
Criteria : In a area
where market
penetration is
between above
50% 24
Not Feasible SAT
17 APR

25. Alliance University Market Feasibility Analysis of Palm Island
PROJECT MANAGEMENT
Step:4 Predictive Gravity Modeling
Potentiality of customer segments
OUTPUT
Feasible
Case: Market Penetration
Opening a
shopping Mallan idea about feasibility but how to
It gives
decide which territory is best feasible ?
Criteria : In a area
where market
penetration is
between above
50% 25
Not Feasible SAT
17 APR

26. Alliance University Market Feasibility Analysis of Palm Island
PROJECT MANAGEMENT
Step:5 Assignment Model
Potentiality of customer segments
To find most best feasible solution
Area 1 Area 2 Area 3 Area 4 Area 5
Shopping Mall 1 5 2 3 4
26
SAT
17 APR

27. Alliance University Market Feasibility Analysis of Palm Island
PROJECT MANAGEMENT
Step:5 Assignment Model
Potentiality of customer segments
To find most best feasible solution
BEST FEASIBLE
Area 1 Area 2 Area 3 Area 4 Area 5
Shopping Mall 1 5 2 3 4
Shopping Mall Area 1
Restaurant 2 4 3 1 5
Resort 5 2 Restaurant 3
1 BEST Area 4
4
Club 4 1 Resort
2 5 Area 3
3
residential Club Area 2
Area 5 2 3 4 1
Residential Area Area 5
27
Applying Assignment Model
SAT
17 APR

28. Alliance University Market Feasibility Analysis of Palm Island
PROJECT MANAGEMENT
Step:5 Assignment Model
Potentiality of customer segments
To find most best feasible solution
BEST FEASIBLE
Area 1 Area 2 Area 3 Area 4 Area 5
Shopping Mall 1 5 2 3 4
Shopping Mall Area 1
Restaurant much value would customers
How 2 4 3 1 5
Resort 2 Restaurant 3 Area 4
5 add to you? 1 BEST 4
Club 4 1 Resort
2 5 Area 3
3
residential Club Area 2
Area 5 2 3 4 1
Residential Area Area 5
28
Applying Assignment Model
SAT
17 APR

29. STEP : 6 Customer Lifetime Value ( CLV )
In marketing, customer lifetime value (CLV), lifetime customer
value (LCV), or lifetime value (LTV) is the net present value of
the cash flows attributed to the relationship with a customer
k
BENCHMARK-
2011,PSGIM,Coimbatore
CLV: Customer Lifetime Value
PC : Profit Contribution
d : Discount Rate
n : Number of years 29
k : Time unit

30. STEP : 6 Customer Lifetime Value ( CLV )
In marketing, customer lifetime value (CLV), lifetime customer
value (LCV), or lifetime value (LTV) is the net present value of
the cash flows attributed to the relationship with a customer
k
BENCHMARK-
2011,PSGIM,Coimbatore
Risks ?
CLV: Customer Lifetime Value
PC : Profit Contribution
d : Discount Rate
n : Number of years 30
k : Time unit

31. STEP : 7 Sensitivity Analysis
Sensitivity analysis (SA) is the study of how the
variation (uncertainty) in the output of a
mathematical model can be apportioned,
qualitatively or quantitatively, to different sources
BENCHMARK-
2011,PSGIM,Coimbatore
of variation in the input of the model.
I(X)
O ( X, Y)
I(Y)
If f ( x ) is altered, than to what degree O ( X,Y ) would change.
31

32. STEP : 7 Sensitivity Analysis
Sensitivity analysis (SA) is the study of how the
variation (uncertainty) in the output of a
mathematical model can be
apportioned,on sensitivity analysis we
Based qualitatively or quantitatively, to
BENCHMARK-
2011,PSGIM,Coimbatore
different sources of variation in the input of the
have to decide contingency level
model.
I(X)
O ( X, Y)
I(Y)
If f ( x ) is altered, than to what degree O ( X,Y ) would change.
32

33. Alliance University Market Feasibility Analysis of Palm Island
PROJECT MANAGEMENT
Qualitative Tools
for Market Feasibility Test
33
SAT
17 APR

34. Alliance University Market Feasibility Analysis of Palm Island
PROJECT MANAGEMENT
Quantitative Tools
1. Concept Testing
2. Delphi Techniques
3. Focus Group Advice
4. Nominal technique
5. Alpha Testing
6. Beta Testing
7. Test Marketing
8. Market Simulation
9. Competitive Advantage
Analysis
34
10. Sustainability Test
SAT
17 APR

35. Concept Testing
• People’s reaction to a basic idea of the product
• Usually done before a product is marketed.
• Ensures the selection of the most favorable
concept
• Reduces research, development and marketing
cost
• Lays a foundation for Benchmarking in future
• Forecasts and analyses the demand and ensures
the right time of launching

36. Focus Groups?
• It's dangerous to take "customers" for granted
• To collect qualitative data
• To determine feelings, perceptions and manner of
thinking of participants regarding products, services,
programs or opportunities
• To promote self-disclosure among participants

37. Test Marketing
To test a new product or a new marketing plan under
realistic market conditions to measure sales or profit
potential.
Done based on the following
1. Population size
2. Demographic composition
3. Lifestyle considerations
4. Competitive situation
5. Media

38. Test Marketing
WHY
1. To identify and correct weakness in the plan
2. To estimate the outcomes
OUTPUT
1. Reduced cost
2. Increased secrecy from competitors

39. Alpha Testing
• Acceptance testing
• Done in front of client or customer for
their acceptance.
• The Product is developed according to the
customers requirement and Specification.
• Generally termed as internal testing

40. Beta Testing
• Done after Alpha testing
• Termed as External user acceptance
testing
• Open to limited people
• Based on their feed backs the flaws are
corrected

41. Competitive Advantage
“A project’s profit potential is largely
determined by the intensity of
competitive rivalry within that Project”

42. Competitive Advantage
• Variety of health spas, fitness centres and residents' clubs
• Outstanding facilities at 30 luxury five-star or boutique hotels
• Wide selection of restaurants offering the finest cuisine from
all over the world
• Tax-free, designer brand shopping on the Golden Mile and in
Palm Mall
• Safe, gated communities and top security in all apartment
residences
• Miles of beautiful, golden beaches with spectacular ocean
views
• Incredible range of attractions and events, as well as
theatres, cinemas and nightclubs

43. PSGIM, Coimbatore E-procurement system of Honeywell & Vedanta
BENCHMARK – 2 0 1 1
Questions Please ????
43
Fri
25 Feb