Marketing Management (M 302)

Marketing Plan:Fidelity Service Apartments

Prepared forMd. Iftekharul AminAssistant Professor

Prepared byGroup 7Section- ABBA batch- 20

Institute of Business Administration, University of Dhaka

June 04, 2014

June 03, 2014

Md. Iftekharul Amin Assistant Professor Institute of Business AdministrationUniversity of Dhaka

Subject: Letter of Transmittal

Sir,We are pleased to submit our report on the marketing plan of Fidelity Service Apartments. We have completed the report through putting the theories and techniques learnt throughout the Marketing management course. This report contains an analysis of the market demographics, a business idea of an emerging concept and a marketing plan pertaining to it. We have also suggested a control mechanism for better implementation of the marketing strategy.We are truly thankful for having the opportunity to work on such an insightful and challenging project, and have tried our very best to tailor the report according to your guidelines.Therefore, we request you to accept our report. We believe that you will find it in order. We are eagerly expecting your feedback on the overall report.

Yours sincerely,Group 7, Section-ABBA 20th, IBA, DUAdiba Islam (RH-20)Bijoya Chakraborty (RH-22)Kashfia Tabassum Ahmed (RH-42)Imtiaz Farhan Bin Habib (ZR-61)ContentsDetailsPage

Executive Summary

1. Introduction

1.1 Origin of the report

1.2 Objectives

1.3 Methodology

1.4 Limitations

2. Business Idea

3. Situation Analysis

3.1 Market Summary

3.2 SWOT Analysis

3.3 Porters Five Forces

3.4 PESTEL Analysis

3.5 BCG Matrix

3.6 Competition

3.7 Product Offering

3.8 Keys to Success

3.9 Critical Issues

3.10 Reformed 4Ps of marketing

4. Marketing Strategy

4.1 Mission

4.2 Marketing Objective

4.3 Financial Objective

4.4 Target Markets

4.5 Positioning

4.6 Strategies

4.7 Marketing Program

4.8 Marketing Research

4.9 Pricing

5. Branding and Positioning

5.1 Branding

5.2 Positioning

5.3 Brand Positioning Bulls-eye

6. Financials

6.1 Break- Even Analysis

6.2 Sales Forecast

6.3 Expense Forecast

7. Controls

7.1 Implementation

7.2 Marketing Organization

7.3 Contingency Planning

8. Conclusion

Executive Summary (ADIBA)

1. Introduction1.1 Origin of the reportThe report was assigned to us by our Marketing Management (M 302) course instructor, Md. Iftekharul Amin, as part of the courses group term paper. The business idea was initially proposed in an earlier assignment and was approved by the instructor. We were also provided with a detailed set of instructions that we have had to rigorously follow.1.2Objectivesi. Analyze the need for service apartments in industrial hubs such as Narayanganj.ii. Devise a business idea namely, Fidelity apartments.iii. Describe a structured marketing plan for the business idea, along with positioning and financial projections.iv. Evaluate the effectiveness of the marketing plan and establish control mechanism.1.3MethodologyWe have conducted both primary and secondary research for collecting the data and information used in this report. Interviews of locals in Narayanganj taken during the village trip earlier this semester was our primary source of data. Different service apartment reports, local and international, available online were our secondary data source. Additionally, marketing management textbooks and necessary websites were utilized.1.4LimitationsCurrently the concept of service apartment is not very popular in Bangladesh, so sufficient resources and data about service apartments in Bangladesh were not available online. Furthermore, a report like such requires a more in-depth research that we were unable to carry out due to time constraints and inadequate knowledge on our part. Because of the nature of the industry we chose to work and the small group size, we lacked sufficient resources to go for field survey.2. Business IdeaNarayanganj is one of the major industrial regions of Bangladesh which sees the thrive and thwart of many small and medium enterprises given the political and economic turmoil. Foreign multinationals are highly associated with the firms of Narayanganj as the town mostly constitutes of Ready-made garments factories and helping industries. Bangladesh being the second largest exporter of RMG after China sees many buyers approaching towards the country to check on their potential order. For this reason, we have chosen to invest in the service apartment to cater the needs of its foreign clients officials. Moreover, tourists and immigrant workers are also handsome in number. Places like Sonargaon known for its history attracts many tourists to come and many researchers also come to conduct research on the burning issues allied with RMG. Although it has been confirmed that there is need for high quality staying place in this industrial town, initially it is necessary to keep in mind that they are serving a niche of the market which may require huge marketing attention to maintain. The idea of service apartments is quite new and innovative in the country and more precisely in Narayanganj. Service Apartment has been planned to be started in Chashara, near the concentration of the industry of most multinationals and local business pioneers. The location of the project is quite attractive as the foreign delegates want to stay near their work place in a good environment. We aim to provide a homely environment for both the foreign and local customer base with an assorted basket of facilities. The main competitors for the company are the well-established hotels in Dhaka mostly. But, the company has a lower price to offer than its competitors which will be proven vital if they want to serve the frequent visitors.The service apartment will be made in an eight-storied building. The land will be of 10 Katha approximately, right beside the main lane to make access more feasible. The apartments would be of two sizes. i. The smaller size would be around 720 square feet, which is suitable for one or two person stay. ii. The larger size would be around 1080 square feet which is suited for a family, having two bedrooms for accommodation. Both the apartments will have 1 kitchen, 1 bathroom and 1 living room. The kitchen will have household goods like coffee maker, stove, oven, refrigerator to serve the cooking purpose of the inhabitants. All the rooms will be fully air- conditioned. The Service Apartments ought to have all our customers may need for their day-to-day activities.The top floor will have a swimming pool for the ones enthusiastic about physical activity. A Jacuzzi will also be arranged for relaxation purpose. This will be accompanied by a gym on the same floor to address the needs of fitness fanatics. In addition, the top floor will have a free smoking area. The second topmost floor that is the seventh floor will have a restaurant which will be impeccable in serving lunch and dinner. Also, the customers can order food from here to their own rooms. It will also have a coffee shop just beside, which would be a decent place for informal meetings and gatherings. For the more formal meetings and seminars, the other half of the floor will be utilized by preparing a conference hall with projector and all modern facilities. The sixth floor will have a library with the latest articles, newspaper, books for the bookworms to pass a worthy time in our apartment. To help with the communication between foreign buyers and local sellers, we will have a computer center on the same floor. This will also keep everyone connected to social networking sites which is the most accepted and used medium of communication in todays world. Beneath this, the second to fifth floors will have the apartments. Each floor will have two apartments of each size. The first floor will have the reception and waiting area. There will be parking facilities under ground for locals if they come to stay in the town of Narayanganj for few days or so. For the foreign customers, the service apartment will have the facility to organize transportation for the customers to visit their desired places. If all the aspects are taken well into consideration, it can be said that Fidelity Service Apartments will be proven to be a new breakthrough in the hotel industry of Bangladesh.

Value chain:

Architect to design the floorsPurchase of landConstruction of buildingManufacturingSales and marketingMarketing campaignRoom booking and service. House keeping.Net flow of revenue.DesigningBathroom fittingsFloor tilesPurchase furniture for apartments, conference hall, and library. Buy equipment for gym.

The first requirement to get started with the project of service apartment would be the need to acquire land. The 10 katha land in a prime location like chashara of Narayanganj is essential. For the construction purpose, either raw materials and labor can be bought from companies and contractors respectively, or the building task can be given to a real estate agent. An architect is essential to give the building a good structure and the floors space be utilized effectively.Next, we move on to the designing phase. Interior designing by professionals can help to give our service apartment a spacious and clean look. Bathroom fittings, gym equipments, furniture has to be purchased according to the needs of our library, apartment, conference hall and gym.Finally, after completion of the building work, apartments would be ready to be rented. Marketing campaign is required to communicate the offerings effectively. Room rent has to be finalized and house -keeping service and other employees must be hired.

3. Situation Analysis3.1 Market Summary3.1.1 Market DemographicsGeographicNo set geographic target area is there. By leveraging the expansive reach of the Internet and multiple delivery services, we can serve both domestic and international customers.DemographicsBetween male and female, the male is more likely to be our target market. Majority of the foreign buyers who visit Bangladesh to check on their given orders or to ensure the facilities before providing order are males. We will encourage more females to stay in our service apartment due to the high security provided.In addition, the business professionals and managers will be our main customer base.BehavioralClients who prefer to have their own space while travelling in a different city, who is inclined towards their local food and desires a kitchen to prepare it will be our target.3.1.2 Market NeedsThe Service Apartment offers value and benefits to our clients, over and above the standard of our facilities and affordable rates. We seek to provide our guests with an exemplarypersonal service, and level of recognition that they have come to rely upon. We provide our guest with a luxurious, relaxed environment within which to conduct their business.In addition, we give an environment which they cannot find at our larger, more impersonal competitors in Dhaka. Our guests need to know that they can develop a relationship with the hotel that will ensure efficiency, value for theirmoney and reliability in supplying them with the support they need, when they need it. The service apartment operates in a city with a very strong sense of community, and we want to stay an integral part of that community.3.1.3 Market TrendsShort-term industry trends are shaped by differing economic, political or physical factors impacting local geographical markets. Since the economic crisis and political instability has been reduced significantly export orders for RMG and GDP growth has returned to key economies, leading to an increase in disposable income and an increase in demand for hotel rooms, it is highly likely that a positive effect will be passed on to the demand for hotels and apartment.In the long- run, conditions may be expected to be better. RMG industry which suffered due to withdrawal of GSP may revive back its position due to implementation of international mandates which would cause big retailers to gain back confidence on Bangladeshi factories. On the other hand, exports diversification may bring many different foreign clients to the city thus leading to an upward trend.3.1.4 Market GrowthThe younger workforce is driving more diverse and informal working patterns, with an expectation that hotels will cater for flexible working arrangements. A growing ageing population with the desire, and means to travel, is expected to significantly increase travel flows and lead to an overall increase in demand for travel services. Also, the tourism industry is growing over the years and contributes significantly in the GDP. This will lead to an increase in the demand of service apartments in Bangladesh in the coming years.3.2 SWOT Analysis3.2.1 StrengthsI. QualityThe primary focus of service apartments is to provide an accommodation facility with the best of services. Hardly any hotel in Narayanganj provides quality services in terms of behaviors of the employees. However our will be very highly qualified, especially in English language as our consumer base mainly constitutes of foreign buyers. In addition, the furniture, utilities will be of superior quality.II. Value for moneyThe service apartment offers a room for BDT 3000 a day. This is quite cheap compared to the market average of $120. However, there will not be any sacrifice in the quality to ensure cheap prices. Hence, the guests are expected to be pleased with the price and quality and return again. This will result in a high goodwill as well as advertisement by word of mouth of the guests who stayed at the hotel. III. Location of the Service Apartments Service Apartments will be located close to the highway and prominent places of Narayanganj. This is a prime location as foreigners who enter the country will be encouraged to stay in the service apartments as it is easy to reach and from there they could carry out the reasons for their visit.3.2.2 WeaknessesI. Market sizeThe service apartments only cater to the needs of a niche market. Hence, the company has a high risk that it can either make or break it. Also, the number of foreigners or locals visiting Narayanganj for work purpose is not fixed and is subject to change depending on many conditions so the market size will vary from year to year.II. New entrantThe concept of Service Apartment is completely new in the market of Narayanganj.3.2.3 OpportunitiesI. Competition LowFidelity Service Apartments operate in a niche market where the no of its competitors are very low. Hence, it will be able to easily penetrate the market and earn high returns.II. Market growthNarayanganj is a district which is developing quite fast due to the various firms of various industries and it is expected that more foreigners will come into the city solely for business or official trips who would want economical places to stay which are at the same time comfortable. This bond is promised by the services of Service Apartments.III. Infrastructure DevelopmentThe infrastructure is highly developed. There would be no communication problem for the potential consumers. The large number of RMG factories ensures a good number of customers for such hotels.3.2.4 ThreatsI. Established Players of DhakaDhaka is very neighboring city to Narayanganj which is why foreign buyers who are our major customers, may choose to stay in a hotel of Dhaka and travel regularly.II. Seasonal demandForeign orders are often seasonal thus during certain time the hotel may face a downfall in the number of customers.III. Political threatDue to political instability in Narayanganj, people will be less willing to stay in Narayanganj which would have a highly negative demand for the service apartment in Narayanganj.3.3 Porters 5 forces analysis

Threat of New Entrants: The service apartments industry, being a relatively newer concept, is not quite popular in Bangladesh as of yet; but once the idea is established in the business world it is likely to get much attention and new entrants are expected to flood in due to its high profit margin. However, this industry has substantially high entry and exit barriers because of the large fixed costs and initial investment that need to be incurred, making it a lucrative segment only for those with huge amount of capital and the potential to open up a hotel.Threat of Substitutes: In this industry, the likelihood of getting substituted by a similar offering of a competitor is very high. There are usually a number of hotels with varying price ranges and facilities just around the corner, which can serve as an alternate dwelling. Getting the consumers to choose Fidelity over any other hotel or lodging will always be a challenge, especially when the customers would rather stay in one of the posh hotels in Dhaka than come to stay at Narayanganj. On a positive note however, the possibility of finding a residence of similar standard near Fidelity is quite low due to its uniqueness in terms of service and quality so in most instances the customers will be forced to visit Fidelity in their next visit. Bargaining Power of Suppliers: Bargaining power of supplier in this industry is quite low since a service field like such require primarily a lot of manpower to run the business which is not a problem in a country like Bangladesh where labor is abundant. Other than that, the raw materials needed for the infrastructural development of these large facilities can be procured from a number of sources, hence the suppliers do not have sufficient authority to negotiate or bargain.Bargaining Power of Customers: Bargaining power of customers tend to be relatively greater when there are more competitors or when the firm is catering to a niche market to begin with. For service apartment providers, customers are indeed the most important factor because it is their satisfaction and word of mouth, which will bring in new customers and harbor loyal ones. Additionally customers can switch to a competitors product anytime if they are not content with the firms offerings.Degree of Intense segment rivalry: The competition for Fidelity are not just hotels/living quarters in Narayanganj but also the market leaders of this industry such as Westin, Radisson, Ruposhi Bangla because often people like to conduct their business from Dhaka while staying at one of these top-class hotels. Rivalry among competitors can therefore lead to an aggressive pricing and promotion in battles to benefit and attract more customers. In this industry, since there is low switching cost for consumers, they can change hotel anytime so segment rivalry is very high.

3.4PESTEL Analysis

EEnvironmentalTTechnologicalSSocialEEconomicalPPoliticalLLegalPolitical The impact of political activities in Bangladesh on the hotel industry and its subsequent effect on Fidelity Service Apartment can be broken down into four categories. They are: I. Trade license Fidelity Service Apartment has not yet obtained trade license. It is planning to apply for license within few months. However the Government offices are extremely inefficient and do not operate in a bureaucratic fashion. Hence, it is more likely than not that the documents of Fidelity will be delayed for processing by red tape. A huge amount might need to be paid for releasing of the documents. This is both time consuming as well as expensive for a new company like Fidelity. II. Tax Rate Service Apartments like Fidelity will be charged a corporate tax rate of 37.5%. The reason behind this high tax rate is that the concept of Service Apartments is still new in Bangladesh, and it will not receive any tax benefits or subsidies from the Government as it is not included in the governments high priority sector. If service apartments can have a significant contribution in the Tourism industry then very soon Fidelity service apartments may receive tax benefits from the government. III. Political Stability The current political landscape of Bangladesh is quite uncertaint due to open kidnappings in many places, especially in Narayanganj. Our service apartment will be built in Narayanganj so due to political turmoil, the number of foreigners visiting Narayanganj will be very limited. Also, the nationals who do not have homes in Narayanganj will not feel safe leaving their families back home and stay alone in Narayanganj. Without lack of customers, the revenue of Fidelity Service Apartments will be highly affected. IV. Construction law Following the recent collapse of a huge Garments company, resulting in death of over thousands of workers, the construction law in our country has become more stringent. Hence it can be estimated that the cost of building the service apartments might increase due to better quality of resources that might be required to satisfy the rules and regulations set by the Government. Economical The economic factors that will be affecting the business of fidelity are listed below. I. Economic growth The economy of Bangladesh is thriving. This is due to an increase in exports over the year. The trade of Bangladesh is currently dependent much on the RMG sector and the Government is taking initiatives for export diversification due to the vulnerabilities in the economy. All these initiatives include encouraging other segments to grow. For example, government is encouraging the export of jute, leather, pharmaceuticals, etc. The growth in the other industries will encourage more and more buyers to visit Bangladesh for doing business and this will eventually prove to be beneficial for our service apartments. II. Interest rate The current interest rate in Bangladesh is very high compared to many other countries, as a result investors feel highly discouraged to take loans from the banks. This high interest rate causes problem in the expansion of the business. Government should give some priorities and make access to loans easier in order to encourage the growth of the service apartment industry in Bangladesh III. Inflation Rate The inflation rate in Bangladesh is 7.46% as of April, 2014 which is quite high. This means that cost of operating will increase while real income for Fidelity will decrease. This casts a shadow on future potential of Fidelitys performance. IV. Exchange Rate This is quite important for Fidelity as their target market is mostly foreigners who will pay them in dollars. If the Exchange rate of Bangladesh falls then revenue in terms of taka will increase for Fidelity while costs might remain same as they are paid in local currencies. This is good for the business. In the future it is expected that dollar value will become stonger against taka hence its good for Fidelitys operation. Social Though Bangladesh is still considered as an underdeveloped country, it has received great recognition in the international market because of its superior quality in exporting ready-made garments. Also, the Bangladesh Cricket Team has been successful in promoting Bangladesh to the foreigners. Bangladesh is also very popular for its longest sea-beach in Coxs Bazar and Sundarban in Khulna. Because of these reasons, the Tourism Industry in Bangladesh is growing. Now foreigners fill a higher sense of security in visiting Bangladesh which they lacked 5years back. As a result, the demand for service apartments will increase over the years and hence Fidelity Service Apartment can have a larger market to operate. Technological As the literacy rate is increasing in Bangladesh, there has been an immense technological progress of equipments used for constructions. Hence, less time will be required to construct the building. This also results in low cost for Fidelity and a better quality building abiding the building codes set by the Government. Environmental The weather of Bangladesh is quite pleasant and welcoming for tourists. The Fidelity Service Apartments mainly target mid income level business people, hence it charges comparatively low costs than the five-star hotels. Also, nationals, who are involved in banking sectors or government jobs are encouraged to take transfer postings, far away from home for a better understanding of the demographics of Bangladesh and for also for a new experience. This frequent geographical movement in the labor force will prove to be beneficial for our service apartments. Legal Due to recent labor strikes and protests in garments industry, the government was forced to increase the minimum wage ceiling of the workers. This will result in a spill over effect. Garments industry is the biggest employer in our country. If the wage rates are increased there then it is likely that low income people will find work in garment industry lucrative. Hence from the total low level working population, more workers than ever before will be opting to work in the garments industry. Thus the percentage of workers in hotel industry will decrease. Thus due to the fall in supply of workers in hotel industry more wages need to be paid. This will increase the cost of operating the hotel industry.

3.5 BCG MatrixBoston Consulting Group (BCG) Matrix which is the most renowned corporate portfolio analysis tool provides a graphic representation for an organization to examine different businesses in its portfolio on the basis of their related market share and industry growth rates. In other words, it is a comparative analysis of business potential and the evaluation of environment. According to this matrix, business could be classified as high or low according to their industry growth rate and relative market share.

Fidelity service apartments are a venture which will require a large amount of initial capital for the construction of the building, furnishing of floors and equipping the amenities. Initially, the service apartments in comparison to hotels will have a very low market share. However, the growth rate would also be significantly high causing the service apartment to be a Question mark. Question marks are generally new goods and services which have a good commercial prospective. There is no specific strategy which can be adopted. Nevertheless, the foreign buyer who comes to Narayanganj for longer period of time is increasing day by day and they prefer a place which is safe, furnished, home environment and can be taken for broader time span. Thus, the demand for such flats may be anticipated to upsurge. Furthermore, the immigrant employees in Narayanganj are booming which also adds to the intensification of the market share. Gradually our service apartment will accelerate the growth rate as it becomes widely acceptable and also the market share is likely to soar. Along with adequate funding it can assist it to become a Star in the near future. Nevertheless as Fidelity service apartments is a completely new venture there are certain limitations in the allocation of resources via BCG matrix. For instance, the market is not clearly defined. Growth rate and relative market share are not the only indicators of profitability. This model ignores and overlooks other indicators of profitability. 3.6CompetitionThese long-term drivers and global trends are changing the competitive landscape within the travel industry. Competitors are no longer simply branded or independent hotels, but now include travel intermediaries and companies offering alternative lodging solutions and search options, providing inspiration for travel ideas and aggregating a range of travel solutions.3.7Product OfferingThe hotel industry is a mature industry marked by intense competition. Although numerous private luxurious hotels are seen in Dhaka, in Narayanganj Shadar hardly any private hotel with facilities like dining hall, laundry, lounge are seen, whereas Narayanganj is a major trade center of Bangladesh with hundreds of ready-made garments factories, spinning mills, knitting mills, sweater factories etc.Consequently, making of a service apartment may be a profitable business prospect in Narayanganj. Service apartments would mainly cater to business clients and usually offer room service, coffee-shop, dining room, laundry and valet service as well as access to internet via wifi.The apartments would come in two different size: Approximately 720 square feet, with one bedroom, kitchen and a living area. The consumer base for these small apartments would be buyers who travel alone for short period of time to oversee the way their orders are being executed in garments and other factories. Approximately 1080 square feet with two bedrooms, kitchen and a living area. The consumer base for these apartments is those buyers who like to travel with family and are more likely to settle down for comparatively longer period of time.Our apartments would offer affordable and low-priced furnished apartments in Narayanganj, Bangladesh. For the foreign buyers it would provide a safe, hygienic, and reasonable place to settle down for the time they are in Bangladesh. As the apartments would have attached kitchen it would provide them a homely environment and also make it feasible to cook their native food. For the convenience of the customers, we have a megastore in the basement where all the necessities are available including medicine, groceries, canned food and clothing. Furthermore, each apartment along with basic furniture will have a television, refrigerator, coffee maker, stove to facilitate living.Laundry service will further reduce the hassle of this commercial client.We would provide free Wi-Fi to our clients so that email, social networking will be assisted.Furthermore, for fast dining we have a high quality cafe on the first floor at your service3.8 Keys to SuccessThe Service apartment comprising 8 luxury apartments and specializing in servicing business and corporate clients. It serves the businesscommunity, and visiting business traveller, in the city of Narayanganj.Our key clients are contracted corporate clients originating from both international and domesticmarkets from within the travel trade, appareland other segments. The strategic location of the property is key to its success in these areas due to the proximity of the RMG factories and other prime locations.Key to our business success is the level of customer loyalty and repeatbusiness we aim to receive on an annual basis. We offer our guests the most up-to-date technical business facilities, both inside the rooms and within the hotel's conference facilities.Our guests feel that they can conduct their business from within a less austere atmosphere than can be experienced in our competitive properties, where there is less personal recognition. They appreciate being called by name when they arrive, and having staff remember their specific requirements and their preferences. This is key in developing the relationship beyond an initial stay and evidences our added value in relation to competitive properties in the vicinity.3.9 Critical Issues Shortage of apartments in key locations Lack of understanding amongst corporates Procurement processes hotel-centric, not apartment Online booking capability still limited Lack of standardization of product Different business models3.10 Reformed 4Ps of marketingThe original 4Ps (Product, Promotion, Price and Place) concept idea was developed to help marketers to manage the four most important aspect of marketing. Fidelity will be concentrating on the concept of New 4Ps model introduced by the consultant Idris Mootee in his book High Intensity Marketing (SA Press 2001). The first P is Personalization: It refers to the customization of products and services through the use of Internet. In this century, Internet is one of the major tools for communicating with our customers and for creating the awareness for our product. At Fidelity, we will be offering a customer a program with the concept of Decorate as You Want. This program would be applicable for our customers who will be living in Fidelity apartments for at least six months. They can choose the colors of their apartment and could share with us their idea of how they want their apartments to be decorated. This would make our customers believe that we do not provide service apartments, instead we provide homes away from home. The second P is Participation: It is to allow customers to participate in what the brand should stand for, what should be the product directions and even which ads to runs. This will help the customers feel that they are part of the organization. We would encourage them to give us feedbacks about our offerings and to let us know how we can improve ourselves and deliver more satisfaction. They will be encouraged to share with us their stories of living at Fidelityand also talk to us openly about any complaints they have against the services they receive. The third P is Peer-to-Peer: It refers to customer networks and communities where advocacy takes place. The historical problem with marketing is that it is "interruptive" in nature, trying to impose their brand on the customer. This is most apparent in TV ad, which pushes out its own idea of what brand is without engaging the customers. Through encouraging strong peer-to-peer connections, these "passive customer base" will ultimately be replaced by the "active customer communities". Brand engagement happens within those conversations. Our valued customers will act as our agents in order to motivate the others to prefer our service apartments while planning their visits in Narayanganj. The last P is Predictive Modeling: It is the process by which a model is created or chosen to try to best predict the probability of an outcome and is being successfully applied in marketing problems. With the advent of customer databases and external marketing data, existing patterns on these data can be statistically used to predict the behavior of future customers. A start-up company like Fidelity may not have that kind of budgets to afford a full-fledged model, but there exists different kinds of affordable predictive models for different marketing needs, such as strategy development, product-concept optimization, product-line optimization, and media mix modeling, to name a few, which Fidelity can develop and implement for themselves.

4. Marketing Strategy4.1 MissionFidelity Service Apartments provides full-furnished, secured, and affordable housing with a feel of home.4.2 Marketing ObjectiveThe aim is to create brand awareness among foreigners and locals who are deployed in Narayanganj to the extent that Fidelity is the first name that comes to their mind when they are looking for a residence in that area, not only for a short sporadic stay but also for a relatively longer term dwelling for 1 month to as long as they want.The concept of service apartments or hotels that provide permanent lodging with superior quality service is not popular in Narayanganj. But since the area, being an industrial zone, is developing at a speedy fashion it is expected that once the idea of service apartments surfaces, more companies will follow the suit and the competition will become very intense in a short period of time. Hence, capturing the maximum market share using the first mover advantage is also one of the primary objectives.Additionally, after monitoring the success of the Narayanganj project for the first two years, similar projects can be undertaken in other remote industrial zones such as Savar, Gazipur and Narshindi through line extension. Through evaluation of consumer behavior and preferences new product offerings can be introduced such as 400 sq. ft room, weekend tourist packages and a regular bus service to the major cities to and from Narayanganj.4.3 Financial ObjectiveThe major financial objective would be to have a payback period with in 5 years. Such big number can be excused as the project is quite large and investments would take time to recover. It is to be noted that capacity utilization for type 1 (1080 sq ft) and type 2 (720 sq ft) should be increased by 15% and 20% respectively through managerial and marketing efforts. Such increase should be visible by the 4th year of operation. Costs are expected to rise by 13% with the inflation being steady. Rent on the other hand can be risen by 20% keeping cost factors in mind 4.4 Target MarketsPotential Market: Anybody staying in Narayanganj away from home for any purpose during a specific period of time and is looking for a residence.Available market: An individual living in the vicinity who is actively seeking out a place to stay with access to laundry, dining, internet service, swimming pool, gym, convenience store and transport facilities and can afford renting out a hotel or a service apartment.Target market: Within the available market, the ones who are eligible to acquire this accommodation facility would be the target market. The target market can be segmented in the following ways: Demographic- Nationality: Both foreigners and locals. Foreigners here refer to mid-level and lower-level employees from different organizations abroad who have come to Bangladesh for the purpose of setting or monitoring of their business, or for social work such as NGOs. Locals are those people who are either transferred to Narayanganj for job purposes, leaving their family behind or those simply visiting for leisure purpose. Income: There are two types of rooms, one of 720 sq.ft and another of 1080 sq. ft., and anybody with a monthly income of BDT 50000 and above can afford any of these rooms. Behavioral- Need and Benefits: Need-based segmentation is more applicable in this case because consumers require safety, furnishing, and privacy in their living quarters at an affordable price. Additionally they are being benefitted from having all the above facilities and more such as laundry, dining, and internet connectivity that too in the same building. User and Usage: As far as user status is concerned, we would be primarily focusing on potential users and regular users. The aim is to ensure that any new individual coming to Narayanganj is aware of our service and keeps coming back to avail it repeatedly. For usage rate, priority will be given to heavy users who stay for a comparatively longer time and generate a consistent cash inflow for the company.4.5StrategiesThe concept of service apartments is not yet very popular in districts like Narayangonj. As a result of which Fidelity will have a competitive advantage over its competitors. In Narayangonj, its main competitors would be some small hotels or motels where people stay for a very short period of time, maybe one or two days. These hotels do not provide as much services that Fidelity will offer. Fidelity will have different segmentations so that it can cater to the needs to its various levels of customer groups. The differentiation strategy that Fidelity will be following are: Employee Differentiation- The employees will be one of the most important resources for Fidelity. These people will work in the initial stages to create brand awareness within the target segment. They will also be responsible for serving the customers directly. The demand for the service apartments will depend on the quality of service that the customers receive. Therefore, the employees will be trained extensively so that they know how to give the best service to their customers.The target market for Fidelity is not very widespread in Bangladesh and especially in remote areas like Narayanganj so the company has to plan for niche marketing. There is very low variability in the offerings of Fidelity so it has to ensure that it delivers its best service to its customers by providing them with all the luxuries and comfort that the customers demand. Within the limited resources available in Narayangonj, Fidelity should try to find out their customers wants regularly and try to shift their offerings like that. For example, if they find that their customers prefer mainly Continental food to Chinese then they should try to hire a chef who is an expert in cooking continental and should try to set their menu accordingly. Also, Fidelity can try to concentrate the taste of the foreign customers, like what kinds of decorations and furniture they prefer and they can shape their rooms according to their customers satisfaction. All these extra efforts can help Fidelity establish a different position in their customers minds as they would start feeling that Fidelity is concerned about providing the best service to their customers.4.6Marketing ProgramINTERNET PRESENCEGone are the days when people chose hotels based on magazine and newspaper reviews or flyers and brochures. Today, the travelers look into the World Wide Web in order to find the suitable living quarters for them in terms of reasonable price, high-class amenities, primary location and outstanding quality. Consequently, our first step would be strengthening our online presence. The process would be long as there are numerous mediums of connecting to potential customers. However, it is likely to bring the desirable results. Some of the intended ways to boost the internet existence is evaluated below:I. WebsiteA teamwouldbe hired to design a website for functionality and ease of use for the consumer. The website would offer reservation facilities and easy-to-follow directions to make in order to make the process more streamlined. It would highlight the accommodations and services provided by the service apartment and will be continuouslyupdated to add newer offers and services.II. Social networking sitesSocial networks like Facebook and Twitter are homes to millions of guests who use them every day to make travel related plans. Having an optimized SNS presence will encourage our customer base to stay at connected to our firm instead of a reputable competitor in Dhaka.III. EmailAlthough social networking is a huge focus these days but executive people still check and responds to email. Especially our target markets who are the foreign buyers to whom we export our local products like ready-made garments generally communicate with local producers via email. Hence, an email before their visit describing the usefulness of staying in a hotel in the same town as the factory they came to check on may flourish. Also, email will be sent to past customers offering discounts or special deals.HOSTING EVENTS AND SPONSHORSHIPThe marketing plan would include ways for potential clients to visit their facility through open invitations. They can organize and sponsor events so that people come to know about their existence. They will contact local charities and offer their space for them to use for fundraising events or volunteer recognition efforts. The idea is to collaborate and work with those groups whose members are similar to our own target customer. PARTNER UPThe effectiveness of the marketing plan can be increased by partnering with other businesses targeting the same consumers. RMG buying houses could make successful partners for a shared-marketing campaign. Buying houses bring orders for RMG factories from foreign countries like USA, Germany, and England etc. These buying houses have a lot of guests coming over from abroad to oversee work or finalize deals. Teaming up with such firms will ensure they redirect their guests to our service apartments.HARDLINE MARKETINGAs one of the target customers are the working people coming to Dhaka for work, service apartments can set up billboards in different locations of the country, such as near the airports, highways so that people moving to Dhaka can find out about service apartments and take rooms there. In addition, brochures may be made available with travel agencies as well as buying houses. In these ways our service apartment would get more exposure to the potential customers.SALES PROMOTIONSpecial discounts and additional benefits will be provided at certain times of the year to different customer groups. For example, there could be a discounted room rent for new customers for a certain month or free massage and dining coupons for regular premium customers for another month. But these promotional offers can only be executed only one at a time to avoid heavy costs on the companys part while retaining the customer base.RETAIL BENEFITSAs mentioned earlier several collaborative strategies will be taken as part of the marketing plan. For greater effectiveness of these business partnerships Fidelity will be offering commissions to their agents in RMG buying houses and other organizations based on the number of customers they can reach out to. This is act as a great incentive for those acting as a spokesperson for Fidelity and for the company to enlarge their target market.BUZZ MARKETING (WORD OF MOUTH)Service industry, especially catering to a niche market relies heavily on customer satisfaction. Among other things that consumers do, they become brand ambassadors for that company given that their expectations were met to the fullest. Buzz marketing or word of mouth is more effective than many other expensive forms of marketing. Hence, Fidelity will be focusing greatly on building strong and fulfilling relationships with their existing customer case so that their satisfaction and words of advertisement can bring in newer customers.CUSTOMIZATIONFor our regular customers, we will be offering them the option of customizing their interior decorations. They will have the opportunity to decorate their rooms, as they want. For example, a particular customer who would be living in our apartment for over 3 months, wants to change the color of his/her room. This would be made feasible for the company at the companys expenditure.Besides carrying out the extensive marketing program, we have to maintain proper liaison with different buying houses, HR department in banks, and travel agencies so that they refer our apartments to their employees. This would help us in the initial stages of creating the brand awareness.4.7Marketing ResearchThe marketing research is be divided mainly into two parts-1. Prior to launching the services2. Post launching feedbacks and reviews

1) Prior to launching the services: Before launching our service, it is very important for us to forecast the total demand for our service apartments. We have to find out the total number of our target markets, their frequency in visiting Narayanganj. By knowing the number of our target customers, we can make an estimated calculation of the number of total apartments we need to build to ensure proper accommodation. For estimating the number of the target market, we can contact the buying houses situated in Narayanganj to get an approximate estimation of the number of foreign buyers that visit Narayanganj over a period of one year. Then we can contact banks and government offices to find out the number of people that come to Narayanganj, on account of transfer postings over a period of one year. Also, we can contact different travel agencies as they will have proper information on the foreigners who visit Narayangonj regularly.We need to measure the seasons in which demand for service apartments will be highest. This is one of the most important parts in the research process because by estimating the time when the demand is maximum, the marketing programs can be launched prior to those months in order to create an effective brand awareness. This information can be gathered by contacting with the top hotels in Narayangonj, where the majority of the foreigners stay. Also, we can carry out survey on the landlords to find out the periods when the demand for rent houses is maximum in Narayanganj.2) Post launcing feedbacks and reviews: After launching the services of Fidelity, it is very important to find out if the customers are satisfied with our offerings. This information can be achieved by carrying out regular surveys through Internet or by giving them directly to the customers after the completion of the service. Through the survey, we can find out whether the customers are satisfied or not. We could also ask them to provide us with suggestions on how we can improve our offerings and what should we include in our service.A distinct customer care department would be established for handing the customer complaints. We believe through the complaints, we can interpret the expectations of our consumers and these would help us to improve our services. We will contact the sources of our customers, that is, the travel agencies and buying houses to get feedback about our performance from them and to find out whether our customers have expressed interest to stay in our service apartments during their next visit.

By carrying out these surveys regularly, we can estimate the changing demands of our customers. These two cycles are a continuous process and would be repeated very frequently in a period of one year. Also, these cycles would be repeated vigorously when Fidelity plans to expand into new territories which it will do within the next 5years after the launching of the service apartments in Narayanganj.4.8 PricingThe objective that Fidelity Service Apartments will focus on while setting the price can be categorized into two categories: 1) Maximizing Market Share- Currently, in Bangladesh there are not much service apartments available. Among the few that are available in the major cities such as Dhaka and Chittagong, provide only a limited number of facilities to their customers. Fidelity Service apartment will establish itself with a completely new concept of service apartments. Along with the regular facilities that a customer receives in a hotel, many new features will also be available, like an availability of conference room, library, and the customer can stay here for a longer period just like living in his own apartment. According to the service offerings, the major competitors for the Fidelity Service Apartment will be the luxurious hotels in Bangladesh but the number of these luxurious hotels is very limited in distant districts like Narayanganj. Therefore, at the initial stage, Fidelity will not face much competition in Narayanganj as it will be mainly a monopoly there. Since, the service apartment business will prove to be lucrative, it would not take much time for competitors to join in within a short time. So in the initial stage the main target for Fidelity will be acquiring the maximum number of market shares so that their business is not affected when there is a rise in competition. The pricing has to be done in such a way that within the next five years, Fidelity can acquire the majority of market shares in the service apartment industry. 2) Product-Quality Leadership- The main purpose of the Fidelity Service Apartment is to provide luxurious homes within an affordable price. Instead of attracting many customers for just 1 or 2 days, its main purpose is to attract and encourage a limited number of customers to stay in the apartments for a long time and to remain loyal throughout his lifetime. It can increase its revenue highly by maintaining a loyal customer base. This would help them to ensure the availability of high quality service and at a lower price. By keeping in mind the two objectives, Fidelity Service Apartment then needs to decide the strategy that will be used for the pricing method. As the concept of service apartment is relatively new, so they have limited information to set up the initial prices of all the services. So at the initial stage, they will choose Perceived-Value Pricing. Through perceived value pricing, the marketers can find out the maximum amount the customers are willing to spend for receiving the service from Fidelity. Based on the willingness of the customers, the pricing will be determined initially. If the prices are lower compared to the perceived prices, then the customers will be highly attracted and this will help in creating the loyal customer base for Fidelity. After creating the brand awareness and a loyal customer base, Fidelity will now change its pricing strategy, and will tend to focus more on the benefits of the company and will set a desired return from selling its services. Thus, after establishing itself in the market, Fidelity will be changing its pricing strategy from Perceived-Value Pricing to Target-Return Pricing.

5. Branding and Positioning5.1 BrandingBrand is one of the most valuable intangible assets of a firm. It is not just a logo or a tagline but rather a perception associated with a product or service that differentiates it from its competitors; an indication of lifestyle. Fidelity Service Apartments realizes that in order to establish itself as a promising brand it does not necessarily have to charge a premium price but instead maintain a certain level of uniqueness and quality so that regardless of how many competitors eventually saturate the market, satisfied customers will always be coming back to them. Brand Elements Brand name: The term Fidelity linguistically means faithfulness which has a very meaningful significance. This indicates the high regard that this company has for its consumers and their dedication in fulfilling their expectations and beyond. It also could be taken to mean the loyalty consumers automatically develop once associated with Fidelity due to its superior services and value for money. Tagline: After a grueling day at work, people greatly seek the comfort of their homes and that is what fidelity promises to deliver for those away from their own homes and families, residing in Narayanganj for job purposes. The tagline Home away from Home has been chosen because it stresses on one of the core brand mantra, which is homely. Logo: The simplicity of the black and white logo makes it quite memorable and professional. The incorporation of the tagline in the logo is a constant reminder about the brands core benefit. 5.2 PositioningThe model above shows how we aim to position Fidelity Service Apartment in the market. We have categorized the market for dwellings on two factors: Price and the quality of services offered. We want to establish Fidelity in the category of lower prices compared to its nearest competitors, which are the five star hotels like Radisson and Ruposhi Bangla. However, in terms of quality, we want our customers to be served with the level of quality that they would have received while residing in any of the top five star hotels in Bangladesh.

. 5.3 Brand Positioning Bulls-eyeFidelity Service Apartments aims to position itself as the number one brand in the niche market of service apartments, not only inNarayanganj but also elsewhere in the country. To better develop a positioning strategy that enables customers understand what the brand offers and what makes it a better competitive choice, a brand positioning bulls-eye has been used. The schematic representation of this positioning model starts with the brand mantra in the innermost circle, followed by the second concentric circle representing the key points of parity (POP) and points of difference (POD), the third sphere indicating the substantiates or reasons to believe (RTB), and finally ending with listing the characteristics/personality and visual identity of the brand in the outermost circle.

The elements of the Bulls-eye positioning strategy in context of Fidelityhas been elaborated in the following points: Brand mantra: In the heart of the bull-s eye is the brand essence or the core brand promise, which in case of Fidelity would be Secured, Furnished and Homely. Points of Difference (POD): These are the key attributes that the consumers will strongly and positively associate with Fidelity and believe that they would not be present in other brands to the same extent- Furnished apartments, High-speed internet access, Convenience store, Gym, Swimming pool, Transport facilities, Library, Attached kitchen Points of Parity (POP): They are benefits not necessarily unique to Fidelity since consumers view it as an essential element to this category of business-Comfortable environment, Quality food, Attached hygienic bath, Privacy and serenity in living conditions. Substantiators (RTB): These features provide factual or demonstrable support for the POD and POP- Outsourcing of security services to a specialized firm so that it is maintained seamlessly and efficiently 24X7. A professional chef will be employed full-time to oversee food preparation and train the kitchen staff regularly ensuring highest quality and healthy food for the customers. Chlorine levels of swimming pool will be checked regularly so that it does not adversely affect the health of residents. Lightweight, water-resistant, non-flammable, and sturdy furniture will be used inside the apartments. Installation of burglar alarms and fire alarms extensively throughout the complex. Interior decoration will be done using professionals. Values/Personality/Character: These are intangible associations help to establish the tone for the words and actions of the brand. For Fidelity they would be-Modern, Relaxed, Thoughtful, Affordable Visual identity/Executional properties: These are relatively more tangible components of Fidelity that will affect how it is perceived-Warm-colored templates in room dcor and Greenery around the complex.

6. Financials 6.1 Capital InvestmentDetails:Amount (TK)

Land4,000,000

Building35,000,000

Power Utilities4,000,000

Decoration7,500,000

Total50,000,000

6.2 Expenditure and Revenue (per month)Details Per Unit (TK)No of UnitsAmount(TK)

Salary:

1. Room service 6,000848,000

1. Security8,000648,000

1. Gym and Pool8,000324,000

1. Cleaning6,000424,000

1. Managerial Staff30,000390,000

Power and Utilities150,000150,000

Miscellaneous expenditure 50,00050,000

Supplies100,000100,000

Marketing Expenditure175,000

Total 709,000

Total expenditure per year = TK 709,000x12 = TK 8,508,000

Unit Sold in 1 year= No. of Days rooms are occupiedDetailsType 1Type 2

Space1080720

Number of Rooms1220

60% days of the year; occupied50%70%

40% days of the year; occupied70%90%

Rent30992099

Utilization in days20884680

Total Revenue per year = Revenue from type 1+ Revenue from type 2 = Utilization of type1 x rent +Utilization of type 2 x rent= 2088xTK3099/nights + 4680xTk2099/nights= TK 16,294,032

From 4th year rent is to be increased by 20% and capacity utilization to be increased by 15% for type 1 and 25% for type 2. Cost is to be increased by 13%.Hence, DetailsType 1Type 2

Capacity Utilization24005616

Rent (TK)37193719

Total Revenue per year = Revenue from type 1+ Revenue from type 2 = Utilization of type1 x rent +Utilization of type 2 x rent = 2400xTK3719/nights + 5616xTk3719/nights = TK 26,931,5046.3 Cash Flow

YearOutflowInflowNet flowCumulative flow

055,000,0000-55,000,000-55,000,000

18,508,00016,294,0327,786,032-47,213,968

28,508,00016,294,0327,786,032-39,427,936

38,508,00016,294,0327,786,032-31,641,904

49,784,20026,931,50417,147,304-14,494,600

59,784,20026,931,50417,147,3042,652,704

69,784,20026,931,50417,147,30419,800,008

79,784,20026,931,50417,147,30436,947,312

Pay Back Period: 4 years (14,494,600/17,147,304) x 12 months = 4 years 11 months

7. ControlsTodays marketplace is very dynamic and susceptible to change and in order to keep up with it is not only sufficient to development and implement a sensational marketing plan but also to follow-up and track its progress and impact. Feedback and control is one of the crucial areas where many companies fail to prove their worth and lose out on valuable market share. In order to ensure the efficient and effective implementation of this marketing plan the following key areas need to be monitored: Revenue: It is blatantly obvious that the primary objective of any business is to make profit and Fidelity is no exception. Thus the management needs to regularly check the stream of revenue so that it can evaluate the profit-level of the firm on a periodic basis, and work on improving it so that the financial objective of reaching breakeven can be fulfilled earlier. Expense: For a huge project as such the costs incurred are numerous and multifaceted. Hence, there is a likelihood of increased levels of expenditure due to mismanagement and wastage of resources. Similar to revenue, all kinds of expenses from fixed to variable, from annual to day-to-day, must be recorded and scrutinized so that there are no instances of unnecessary expenditure. Customer preference and feedback: As Fidelity continues to grow and mature, it will come across customers with different requirements and preferences, one more demanding and bizarre than the other. Taking feedback from these customers about their varying tastes and desires and documenting them in a comprehensive customer database would prove to be very useful for the business in introducing new offerings and improvising current ones in future. Demand trends:In order to sustain a profitable business in a soon-to-be-competitive niche market, understanding the market trends and demands is of absolute importance. Thus, one of the control mechanisms would be to constantly gather market insight, analyze the trends and predict future demands. Maintenance of liaison: Since Fidelitys business partners will redirect a substantial portion of the customers to the company, it is essential to maintain a respectable and decent relationship with them as a part of control and implementation of this marketing plan. 7.1 ImplementationEven a great marketing strategy can be sabotaged by poor implementation, something that Fidelity does not wish for itself. Hence, once the marketing plan has been formulated, the following steps will be taken to ensure proper execution of the plan:Firstly, all marketing activities will be scheduled in such a way that they are spread out all throughout the year, in different locations and in varying extents and approaches. For instance, internet presence can be maintained all throughout the year by general awareness posts in social networking sites (SNS), targeted emails be sent out whenever there is a likelihood of any new business starting up in Narayanganj and so on. Billboards will be set up in commercial areas (such as Motijheel) in addition to setting them up near airports and major highways, and leaflets can be distributed in different social/business events in different times of the year. Secondly, a Gantt chart will be used to monitor the progress and development of the marketing plan, with strict deadlines for each task. Unless such stringent schedule is maintained, it is possible that Fidelity might remain efficient yet lose effectiveness or vice versa in this fast-paced market. The department heads of the organization need to be extra attentive about this matter and ensure that every job is getting done in their prescribed period of time in order to keep at par with its competitors.Lastly, to manage a profitable customer base retention dynamics will be used, as illustrated below:

Fidelity understands that acquiring new customers can cost five times more than satisfying and retaining current ones, hence using the retention funnel they can identify the percentage of potential target market at each stage in the decision process, from merely aware to highly loyal. By calculating the percentage of customers at each stage who move to the next the management can identify major obstructions to building loyal relationships and evaluate the effectiveness of their marketing plan with respect to customer loyalty.7.2 Marketing OrganizationFor executing a marketing plan so large and comprehensive it is necessary to divide the work among a certain number of teams containing a mix of employees from different departments, rather than just relying on the marketing department to carry out all the activities. Here we have allocated the work among four teams who will be specialized for one kind of activity and will be overseen by the marketing team:I. Online activities: One team will be specifically dedicated to maintain internet presence of Fidelity through designing and updating their official website, carrying out activities in social networking sites (SNS) such as facebook and twitter, and sending out targeted emails to potential and promising customers. This team will mostly include people from IT department among other departments. II. Field activities: This team consisting of a relatively large number of employees from the sales department, will be primarily responsible for hardline marketing and hosting events. It will be their job to set up billboards in lucrative locations, ensure hoisting up Fidelity banners and distribution of leaflets in notable events.III. Liaison: As mentioned earlier, maintaining profitable relationships with partners and key organizations that can bring in customers is undeniably an important aspect of this marketing plan. Thus, a team of people with superior interpersonal communication skills and good professional connections outside the organization will be in charge of liaisons and PR. IV. Customer feedback team: Fidelity strictly believes that Customer is King which will be reflected in their demeanor with the customers. The customer complaint mechanism will be set and handled bya prompt and understanding customer feedback team who will not only solve customers current issues but also take measures for greater customer satisfaction in future.

7.3 Contingency PlanningThe services that Fidelity offers might be too expensive to maintain if the number of customers renting the apartments is not very high. This would cause a reduction in the brand offerings and may highly dissatisfy the customers.For the locals, who are shifting for work purposes, such as government jobs or bank, would have housing provided by their respective organizations and that too at a lower cost. They would choose living in those houses instead of service apartments because comparatively the cost of living in those accommodations will be cheaper and they may perceive them to be more secured than living in service apartments.Due to the political instability in Bangladesh, currently in Narayangonj, foreigners will be reluctant to visit Narayangonj. As a result, we will fail to attract the profitable segment of our target market. This would highly affect our revenue. In that case, reaching break even would be almost impossible and the business might even close down.

8. Conclusion (BIJOYA)

Appendix 1: Sample of billboard

1