saurabh parihar n0362556

8/7/2019 Saurabh Parihar n0362556

1/22

NOTTINGHAMTRENTUNIVERSITY

Business Operations& Reliability Management

ISYS40161

Module Leader:

ChristopherMccollin

Module Assignment - 1

SAURABH PARIHAR (N0362556)

Submission Date:

March 2011


2/22

Footsteps Historical

ToursProject: Market analysis and scope of Ecommerce

Inter-net LTD.


3/22

Index

1. Introduction__________________________________________________________22. Executive summary____________________________________________________3

3. Market Analysis___________________________________________________4 to 8

4. Market trends_________________________________________________________94.a PEST Analysis_____________________________________________________9

5. Strategic Analysis of FHT______________________________________________105.a Porter`s Five forces Analysis________________________________________ 11

5.b SWOT Analysis with treatment__________________________________12 to 13

6. Marketing plan_______________________________________________________13

6.a Marketing Mix 4 P`s___________________________________________13 to 14

6.b Current Market & Ecommerce________________________________________15

7. Investment Appraisal and Timescale_________________________________16 to 17

8. Recommendations____________________________________________________18

9.

Conclusion__________________________________________________________19

10.References__________________________________________________________20

11.Bibliography________________________________________________________20


4/22

Introduction:

Footsteps historical tours is small medium size enterprise, which is organising historical tours

and exploring history to communicate it in people for about 30 years. It is family business

organization run by Roger and his wife Judith, both are passionate about history. Judith is

managing the administrative side of the business, whereas Roger is indulge in researching

history to write articles and broadcasting the telecast about history.

Footsteps tours had achieved architectural place in its long and quite successful journey by

providing dedicated, quality and consistent service to its customers. They are more or less

planning about growth of business and to make it run more smoothly by using latest

technologies. Although the administration & management of business is going smoothly, but

they both are unable to do any other stuff of their own interest!


5/22

Executive Summary:

The report is an Market Analysis for Footsteps Historical Tours which is done by various

tools such as Porter`s five forces, PEST Analysis, SWOT Analysis. The report is preceded

with Analysis of UK tourism industry, Heritage tourism and some statistics continued by Key

considerations for market growth in terms of Footsteps Historical Tours. Investment appraisal

for i-trading initiation for Footsteps Historical Tours is presented with repayment or recovery

of investment. Some recommendations with timescale are also been suggested to implement

for better opportunities in market growing followed by conclusion. And at last list of

references and bibliography.


6/22

Market AnalysisofTourism Industryin United Kingdom:

y The UK is the 6th most visited destination by international tourists.y Travel and tourism is the UKs fifth largest industry. It employs more than 2.5 million

people throughout the UK and contributes more than 19 billion to the UK economy.

y Built heritage, cultural heritage and contemporary culture are core to Britainsattractions, with shopping and watching sport popular activities.

Factors Contributingto Tourism Trends:

a. Weatherb. Transportationc. Domestic Economyd. European Economye. Global Economy


7/22

Market AnalysisofTourism Industryin Eastmidlands:

Contributes 5 billion to the economy

About 3.5% of GDP

30,000 businesses

200,000 people employed

90% of trips are day trips, 9% are staying trips from other parts of the region, and 1% arefrom overseas

800,000 visits from overseas annually


8/22

Historical/Heritagetourismindustry Analysis:

a. Visitorcharacteristics(CouldbeappliedinMarketsegmentation):

VISITOR

CHARACT-ERISTICS

GENERAL SITUTION

SPECIFIC

OBJECTIVE

MEASURES

Demographic, geographic and socio-economic

factors:

y Employmenty Educationy Incomey Family sizey Home locationy age

Situation specific:

y placey type of transportationy number of peopley length of stayy expenditure patternsy heritage sites visitedy type of accommodationy activity patterns

INFERREDMEASURES

Characteristic visitor lifestyle:

y motivationsy expectationsy preferred heritage experiencey philosophy and approach to heritage

and travel

y desired personal benefitsy reaction to different kinds of heritage

experiences

Preferences and attitudes

towards a particular destination,

Site or product:

y likelihood of futuretravel to a destination

y attitudes towards adestination/product/site

y activity preferencesy location preferences


9/22

b. Scalesofhistoricalattractions:

c. Typesofheritageattractions:(couldalsoaddsometextsfordescriptionofbelow)

National History attractions Scientific attractions Primary production attractions Craft centres and workshops Manufacturing centres Transportation attractions Sociocultural attractions Attractions associated with historic people Performing arts attractions Theme parks Galleries Stately and ancestor homes Pleasure gardens Religious attractions Military attractions Genocide monuments Towns and townscapes Villages and hamlets

Shared AttractionsLocal National

Personal

World


10/22

Key pointsforconsiderationtogrow MarketintermsofFootsteps Historical Tours:

There are more households without children. There are more single person households.

The average age of the population is increased and the seniors market is growing,which is more important in view of these type of tours.

Discretionary income will increase and, therefore, people will have more money tospend on leisure.

People now are better educated and want a broader range of experiences. Out of the ordinary experiences; is what people may be attracted towards.

People are also attracted to live in rural areas with any historical attachment.These key points show that there is a wide market to grow business.


11/22

Markettrends:

PEST ANALYSIS FOR TOURISM INDUSTRY IN UKin LieuwithFHT:

POLITICAL:The political environment of U.K. is quite stable. The government of UK promotes the

tourism organizers because UK tourism industry is worth 114b and contributes more than

8% of the total gross domestic product. There are several independent agencies such as

Tourism Alliance seeks to establish and maintain a favourable operating environment for all

businesses involved in Tourism sector. FHT could gain more trust by applying and joining

any federation or agency working independently for the representation of quality of products

and services.

ECONOMICAL:UK economy is benefiting individuals by gradual low inflation rate. One of the most

influential factors on the economy is high unemployment levels, which decreases the aspect

of expenditure on leisure and holiday packages. Tourism industry is also affected by the percapita income of an individual along with nation`s economy.

The downside is that disparities between the wealthier parts of the country and pockets ofdeprivation will get wider, with implications for travel demand. There are certain issues

which could influence market for both buyers and sellers in this industry, such as VAT, fuelprice hike, inflation etc. To overcome the economical up and downs FHT could maintain an

premium and a base levels for their services.

SOCIOLOGICAL:

Ageing, increasing number of singles, day-bound visit trends are social factors which could

influence the business of FHT. `Senior` people are more interested in holiday packages and

tours with bias of historical attachment. Also eagerness to know about ancestors attractspeople. Women are more attracted towards leisure spending in gaining experience about past

and historical events. Food also finds an important place in tourism industry. FHT could

provide distinguish features in the packages to maintain competitive environment for the

same service which its competitors are providing.

TECHNOLOGICAL:

The rapid development of technology is affecting the businesses in UK and all over the

world. A trend of getting internet access at home and buying online is developing in the UK.

Trend of fast and efficient service provision is at height in any business. Internet, tele- booking, tele- marketing, customer service management are the basic necessities for any

business to run smoothly in todays technological environment. By using ecommerce FHT

could be able to attain new height for the business, attract more people and expand their

business by 24*7 run..


12/22

Strategic AnalysisofFHT:

Porter`sFiveforcesanalysisofFootsteps Historical Toursbasedoncurrent position:

Intensity of competitive rivalry Rivalry is high Services and products are alike,

Differentiated by the location &

experience of provider, customer

switching is quite low.

Presently there are more than four

competitors in market

Threat of the entry of new

competitors

Threat of new entrants is

moderately high

The initial cost of setup does not

requires high investment, but wide

experience and research on history

Supplier Power Supplier power is low There are plenty of options

available for transportation &catering; but less options with

accommodation/hotels

Buyer Power Buyer power is high Depending on the individual viewfor tour, the customer has

advantage for specific demands

Threat of substitute products orservices

Alternate or substitute products threat is moderately

high

There are plenty of options to gainsame information via other

sources such as internet,

broadcasted videos, magazines

etc.


13/22

SWOT ANALYSIS WITH TREATMENTS:

FOOTSTEPSHISTORICAL

TOURS

INTERNAL FACTORS

STRENGTHS

y Owners are experienced and passionateabout history

y Have an architectural place in markety Positive reviews and feedback by

customers

y Personal fame of Roger as radiobroadcaster

y Have an specific area of tourism businessi.e. Historical tours

WAYS TOEXPLOIT

y Attracts more people with zealto gain background information

on their tour

y Could be beneficial in growingbusiness

y Could be beneficial in customers pre-review about company,which impacts psychological

positivity on customer

y Could be exploited as brandimage and to attract more people

y Could be used to attractparticular segment of customers

WEAKNESS

y Low marketing profiley Outdate and time consuming operation of

business

y Limited or no use of current technologiesy Low management and organization in day

to day business running

y Unawareness of market trends and futureplanning for business growth

WAYS TOREDUCE

y Internet marketing &tele-marketingy Going ecommerce, i.e. having

an website with all the facilities

y Could appoint an technicaladviser

y Organization by using propertechnical support/facilities usedin business currently and also

by appointing person for

managerial tasks

y By giving proper time formarket study and future

possibilities


14/22

EXTERNAL FACTORS

OPPORTUNITIES

y Attract more people by some offers

y Pointing out the needs of the customer andprovide them to possible extent

y Market segmentation

WAYS TOEXPLOIT

y Provide attractive offers withcomplementary products and

exciting packages

y By asking customers for anyadditional facility, any particular

type of tour etc.

y By determining the segment ofthe customers, provide tours and

holiday packages attractive for

particular group of people

THREATS

y Competitors with alike profile

y Conflict on business issues because ofroles of family and business overlap

WAYS TOREDUCE

y Setting Unique Selling Point fortheir business

y Introducing formal businessmanagerial positions, proceduresand timing


15/22

Marketing Plan:

Market Mix:

7P`s:

Product:

The FHT is a service product and involves tours in exotic locations of England. There are

different kind of tour products:

1. Day-bound Tours: These tours are for individuals or groups interested in visitingnearby locations for a day

2. Night stay Tours : These tours are for individuals or groups interested in couple ofdays visit to a place for holiday

FHT provides these services with background research and guide throughout the tour.

Promotion:

The USP of FHT is its 30 years long and quite successful journey. The FHT is not so much

concern about promotion and advertisement. Its customers are loyal, genuine and appreciated

with its services. Although `Roger` being a RADIO broadcaster could promote FHT more

effectively, as he is famous personality.

Price:

The main motto of FHT is to provide quality and dedicated service, so the price segment does

not matters for them. Although for the services they provide, they can set an

premium/executive price range for its loyal customers. To grow the business FHT also

provides services at economy price, which attracts more customers. Also to compete with

competitors they are also keeping flexibility to sustain in market.

Place:

The FHT conducts tours and packages in several parts of England. Such as Lincoln, York,

Edinburgh, Nottingham, Scott, London. FHT also conducts theme based tours such as `In

Queen Mary`s footsteps`, Historical events etc.


16/22

People:

The people in FHT consists of Tourist guides as well as the main operations staff, Staff of

transport operators i.e. coaches, hotels and accommodation staff.

Physicalevidence:

FHT has tie up with some of hotels nearby the historical attractions, coach operators and at

the top Nottingham from where it started and situated has many historical attractions.

Process:

Currently the on-going business is run in traditional way i.e. tele-booking, documents are

maintained for accounts, regular paperwork for day to day business. The tours are conducted

by coach/buses and for night stay tours hotels and camps are booked.


17/22

Currentmarket & Ecommerce:

Electronic commerce (EC) is the use of electronic methods, means and procedures to conduct

various forms of business activity in world of internet. The Internet is changing the World.

Before our eyes, the World Wide Web is systematically transforming almost every industry.

To an increasing extent, a company does not exist if it is not present on the internet. The

tourism industry is in the early stages of being transformed by the internet. By creating

websites for clients, one could establish them on the Web at a key moment in the

transformation of the tourism industry.

There are number of reasons why to go for i(internet)-business/Ecommerce for

Footsteps historical tour:

y It will be more easier for broadcasting videos over internet.y It will be more easier to carry out accounting as e-payment manages the money

directly with bank accounts.

y Ecommerce could enable to carry out businesses without the barriers of time ordistance. One can log on to the Internet at any point of time, be it day or night and

purchase or sell anything one desires at a single click of the mouse.

y The direct cost-of-sale for an order taken from a web site is lower than throughtraditional means (retail, paper based), as there is no human interaction during the

online electronic purchase order process. Also, electronic selling virtually eliminates

processing errors, as well as being faster and more convenient for the visitor.

y The day-to-day pressures of the marketplace have played their part in reducing theopportunities for companies to invest in improving their competitive position. Amature market, increased competitions have all reduced the amount of money

available to invest. If the selling price cannot be increased and the manufactured costcannot be decreased then the difference can be in the way the business is carried out.

Ecommerce has provided the solution by decimating the costs, which are incurred.y The strategic benefit of making a business ecommerce enabled, is that it helps

reduce the delivery time, labour cost and the cost incurred in the following areas:

1. Document preparation2. Error detection and correction3. Reconciliation4. Mail preparation5. Telephone calling6. Data entry7. Overtime8. Supervision expenses

y Operational benefits of ecommerce include reducing both the time and personnelrequired to complete business processes, and reducing strain on other resources.

y It will make it easier, for people to trace their ancestors and will, therefore, stimulategenealogical tourism.


18/22

Investment Appraisalfor Ecommerce(EC):

1. Introduction: Investment appraisal can be done by two methods:a. Payback Methodb. The average rate of return

Considering a new start of ecommerce for FHT, Payback method is more favourable because

ecommerce includes techniques which are changes periodically.

Allcomponentsandservicesrequired:

Initial software cost 750 yearly

Planning and development costs 500 yearly

Possible failure cost 200 per failure

Maintenance and upgrading cost 500 yearly

Initial hardware cost 500 for two Computers

Cost of top management

involvement

1200 per month once for approving

finance

Cost related to dependency on newtechnologies

150 yearly

Consultancy cost 500 yearly

Personnel training cost 200 yearly

Website Design & development 1000 once

Website Maintenance and up gradation 500 yearly


19/22

Final plot:

Project Initial CostTOTAL ExpectedEarnings(Years) 1st 2nd 3rd 4th

Implementing

Ecommerce

i.e. i-trading

6200

(Assuming the

failure once ayear, initial

setup for one

time only, all

type of

maintenance

and personal

training foryearly

8,000 9500 10,000 11,000

Expected time of repayment or covering up the investment 9 months.

Timescale:

The complete implementation of IT project would take:

Two months for website development and design. Period of a month for personal IT training. Period of a month for setting up resources (Hardware/Computer Systems, Software

and networking)

The benefits of going ecommerce are not immediate, but on long term i.e. increase the

business which could be analysed annually.


20/22

Recommendations:

1. The urgent need to grow business in today`s business scenario is website ofthe enterprise, so website design and development should be approved.

2. To use latest technologies in the tours such as GPS, satellite positioning, so asto provide more accurate the position of any place with historical importance.

3. To implement some promotional activities such as advertisement on TV, radioetc.

4. To have proper managerial structure of organization, such as CEO Roger,Managing Director Isabella, Manager of Human resources Judith and with a

a Position of Technical Operations Manager for Max.

5. Market segmentation: By conducting and organizing holidays and packagesfor particular age group such as for seniors(old age), school students tours,

adult students tours. Tours attracting singles, family tours etc.

6. To set an premium range of services for loyal and executive segments ofcustomers with a economic range of services which attract more customers.

7. Implement time management of business, which could reduce family issuesoverlaps with business issues: ecommerce will save plenty of time of owners

of FHT.

The above recommendation includes some short term and some long term achievable

objectives.


21/22

Conclusion:

Overall analysis of market for Footsteps Historical Tours shows that there are many areas to

look forward for market growth and proper management of their business. The key findings

of report consists of:

There is an requirement of website for FHT to go for i-trading with facility of e-payment.

FHT management also lack behind in use of modern technology and trends currentlyin market.

There is a wide market to grow business along with threat of competitors, whichcould be reduced by proper Marketing planning.

The FHT also lacks in proper structure of management and human resources.And at the end report suggests the recommendations to the above outcomes. Thus the report

is an complete Analysis for Footsteps Historical Tours with current position, key findings to

grow market, ecommerce and its advantage in tourism in contrast for FHT, investment

appraisal for set up of e-business and recommendations.


22/22

References:

"Marketing Management: Strategies and Programs", Guiltinan et al., McGrawHill/Irwin, 1996

David JOBBER, Principle and Practice of Marketing, 5th Edition,McGraw-HillEducation,2006

Investment Appraisal : Graham Mott, Pearson Education Limited in 1997 , 3rdRevised edition

Marketing strategy : a decision-focused approach :Orville C. Walker, Jr. and John W.Mullins,McGraw-Hill Higher Education, 2008

E-commerce : Jeffrey F. Rayport, Bernard J. Jaworski, McGraw-Hill/IrwinMarketspaceU, c2001

Tourism statistics : international perspectives and current issues: edited by J. JohnLennon,Continuum, 2001

Heritage tourism : themes in tourism :Dallen J. Timothy and Stephen W.BoydPrentice Hall, 2003

Bibliography:

http://www.ecommerceeducation.com/benefits-of-ecommerce.asp

http://www.visitbritain.org/insightsandstatistics/resourcesearch/index.aspx

http://www.visitbritain.org/insightsandstatistics/trendsandforecasts/trendsupdate/tu147.aspx

http://www.visitbritain.org/insightsandstatistics/index.aspx

http://www.statistics.gov.uk/CCI/nscl.asp?ID=8131

http://www.eastmidlandstourism.com/?page_id=85

saurabh parihar n0362556

Documents