ENTRPHRM FEASIBILITY CHAPTER 1And 2Submitted by: Section Gutierrez, Kimberly Faith TM601P

Javier,

Catanghal,

Divinagracia,

Aguilar,

Calim,

Submitted To:

Ma’am Lazarin San Diego

1.0 INTRODUCTION

- At present time, people are engaged in travel for many reasons like Leisure, Education, Health, and Business purposes. Others are travelling to visit friends and relatives (VFR). Never before have people traveled so frantically as these days. Sometimes we travel not just because we want to, but because we have to. Since people need to escape from reality or everyday life that they are in, so, travelling is the best way to happen and experience such. Thus, _______ is here to impart the best service that it can offer. By having an affordable rates with high quality services, this will surely meet the budget of potential customers at high standard tour packages with the guarantee of satisfaction all throughout their travel. __________ is committed and dedicated in providing continuous supremacy in travel and tours.

_______________ is a travel agency that is dedicated to provide adventure and sports/travel packages to people travelling domestically for local and international tourists. An opportunity for __________ success exists because tourism is one of the major industries known to be the largest that generate income in the Philippine economy. Therefore, it is poised to take advantage of this growth and minimal competition with other travel agencies.

Additionally, making tour packages that will cater different types of individual and tour groups especially through handling educational tours, company vacation/travel and others to name a few. Local or domestic tour packages will only be the scope of this agency considering that we want to feature and promote the beauty of our own country, and support the slogan "It's More Fun In The Philippines". Truly, Philippines is a wonderful country that possesses abundant and natural attractions that can pleased everyone's attention either locally or by other nationalities throughout the World. If you want to have a high quality experience that are of cheaper and affordable rates, then _______________ is the best for you.

2.0 MARKETING ASPECT2.1 Product or Service

2.1.1 Product Description

Looking for a way to have a memorable travel experience?_________ services and tour packages are the answer for this. While our customers are the focal point of everything we do, their satisfaction is found in the high performance and quality standards that we set for ourselves. The tour packages are extraordinarily reasonable, economical or at low-cost Of course, tour packages and services will be offered and cascaded to the three groups of Island, from Luzon to Mindanao.

_____________ offers very affordable yet high standard tour packages which covers Hotel Accommodation, Food and Beverage,transportation,tour guiding services and the entrance fees for the destinations to visit. Also with different services such as travel consultation, pre-arranged tours and custom packages. This means that every customer's need during their travel period and stay to an area will take into account.

______________is a full service agency and sells standard travel agency goods and services, including airfare and travel packages. Additional services include assistance with passports,

VISA, NSO certificate, providing access to top-of-the-line equipment and supplies, and a superior offering that includes access to better than average terrain and activities, accommodations, and entertainment.

Ultimately it is _______'s aim to deliver a consistently high quality product in both performance and longevity, coupled with support and service to ensure our customers’ expectations are both met and exceeded by having a policy of continuous improvement for value added benefits for our customers.

2.1.2 Benefit of the Product

____________ provides convenience in terms of producing high standard packages and services to customers. Travel plan comprise of the desires and needs of the travelers all along their tour. From departure to Arrival, customers need not to worry on their necessity throughout their journey in a destination as every single thing has been arranged accordingly. Travel Insurance will be given for the customer's safety insurance as it is needed by every traveler to feel secure while enjoying or taking pleasure in their excursion.

In addition, this will be offered at cheaper rates with quality-guaranteed. Since adventure enthusiasts are extremely increasing, this travel agency will attract them as it is a combination of enjoyment through the arranged adventure activities personally customized according to their wants at affordable cost. This travel agency is worth paying as it also assures that it is capable of providing not only the travel experience but also with the learning they will get as they will be accompanied by a well-trained and licensed tour guide.

_________ is also engaged to help our country be promoted particularly our natural attractions that are worth visiting and worthy to be proud of. This in turn will help increase the economic condition since tourism industry is a dollar earner. Therefore, it would be a great help to patronize the wonders of our country by promoting it through the _________________-

Thus, this travel agency is a service-oriented establishment with full of aspirations to help the country and its people while earning profit.

2.1.3 Product Testing

Before ________ be operated and started, random studies/research will be conducted. This includes random surveys to weigh the interests and demands of the customers in the travel agency. Survey questionnaires will be disseminated to 100 potential customers and select a sample out of the respondents. This travel agency needs to be globally-competitive so careful study of the hottest trends and known-tourist destination which leads to tourists arrivals will be addressed to have a proper planning.

Having an investigation to the safety and security of the chosen destination of tour packages will also be studied, by going personally at the place and measure the exact total expenses per person (pax) including the transportation, lodging, F&B and of course the adventure touring activities that customers may avail before coming up with the projected rate per package tour. Through this, proper selection of tie-up interconnected establishments will also be distinguished.

2.2 Marketing Mix2.2.1 Product/Service

2.2.1.1 Primary Features

Low-Cost

- The packages and services are of low rates and is highly affordable by any adventure enthusiasts and travelers domestically. Much of __________ pricing is determined by market standards. ATTA will attempt to maintain margins of 10% on all airline travel. _________ will make every effort to maintain a competitive pricing policy.

Safety - The destinations presented in projected tour packages are carefully studied so safety of the place is assured to travelers. The staffs especially the tour guides/facilitators are well-trained and licensed enough to conduct a tour. Bus-drivers are also licensed and professional enough who had undergone a series of examinations and is connected to a bus-transport agency. Touring activities for adventurers or those who want to engage in these activities will also be take into account. Travel insurance will be given to travelers.

Convenience - The tour packages are specifically designed to meet all the needs and wants of the customers including the lodging, transport, f&b etc. For additional services like passport and VISA needed by the traveler, _______ will take into charge of it at the right cost.

Accessibility- Since this travel agency will be located at Makati area, It will be accessible for customers to reach and find it since it is around NCR and at a commercial area. This is a hassle-free travel agency which is easy to go to.

2.2.1.2 Added Value compared to competitors

Affordability - The rate of the tour packages that we offer is surely more affordable than any travel and tour companies out there. We have proper negotiations with the management of tourist destinations and bus companies to tied up with us so we willpay less for their services. Ensuring that we will be partners with contracts supported legally so their rate on us us more cheap.that's why our tour packages is cheaper than any travel and tours company.

Security - We want to make sure that our customers are secured so we have tied up a partnership with a insurance company with a low rate. We anticipate accidents and incidents and we will make sure that our customers will be insured in case of any accidents or incidents. It is one of our ways to show how much we care for our customers.

Loyalty Discount- If a certain individual, school or company avail our services for consecutive times they will

be granted a great discount. We value the patronizers of our service and a continued availing of our service means more advantages for our valued customers.

2.2.2 Place2.2.2.1 Use of Distribution Channels

Internet - Since social media plays a big role in providing information and awareness to people and mostly everyone has an access in the internet, We will be using the internet to show and feature our tour packages and services that they can avail. Other details and promos will also be presented through this channel. In case they have inquiries, they will be accompanied and answered accordingly.

Printed Ads - Flyers is one of the cheapest yet effective way of presenting the product and service to the market. Thus, it will be distributed in public areas like malls,schools and MRT stations where it features our tour packages and promos, including our company information like contact details and address for their queries and how they can reach us. We also be having print ads along the streets through tarpaulins and newspapers.

2.2.2.2 Strategic Placing in the market

_______________________will be located in a place that is accessible to most people, which is around the NCR region. This agency will be located particularly at Ayala, Makati near Bel-Air Makati, Metro Manila and its land area is around 100 Square meters. There are two potential competitors of _______around this area -ITravelPhilippines (23-0 Burgundy Corporate Tower, 252 Sen Gil Puyat Ave, Makati City, Metro Manila) and Study Connect International Services, Inc. - Makati Office (Unit 1003 Philippine AXA Life Insurance Center, 1282 Senator Gil Puyat Avenue, Makati City, Metro Manila.)

This is our first choice because it is known for successful businesses being operated. This is also accessible for the customers.

2.2.3 Promotion2.2.3.1 Advertising and Promotion

2.2.3.1.1 Advertising

Social Media/ Website

- The social media will be used to advertise/promote our tour packages, discounts and promos. We will be making specific page and website for _____________ through facebook page, instagram and twitter account. This will guide the potential customers to avail the service they want.

Flyers - The flyers will primarily encompass our services, latest promos, and details of the

company within. It will be simple but eye-catchy in terms of its appearance including the color,texture,size which influence the attention of people.

Newspaper Ad - We will choose and pay a certain locally-known newspaper agency but of the lowest cost possible as a starter and print our advertisement on their ads.

Tarpaulins - Tarpaulins will also be posted along the streets and public areas specifically along nearby areas.

2.2.3.1.2 Sales Promotion

Opening Discount- As we start our operations in the first day, the first 30 customers that will avail our tour packages will be granted a 10% discount.

Senior Citizen Discount - Senior citizens from 60 years old and above is highly acknowledge and will automatically receive 20% discount on any tour packages and services. Submission of any valid I.D and birth Certificate is needed.

Summer Season Promo - During this season, 25% discount on every destination place they avail as long as it is connected with resorts and beaches will be offered to the customers.

Large Tour Group/Quantity Discount -There will be quantity discounts on travellers when they have reached 50 people or more going for a specific tour package. This will serve as a motivation for them to purchase our service in large volumes.

2.2.3.1.3 Personal Selling

Sales Persons Approach - We will assign sales persons to roam on public places and to personally offer our tour packes. Also we will send sales persons on schools and offices to offee our tour packages.

Tour Counseling - We will conduct tour counseling for our customers to know the appropraite tour packages suited for their preferences and budget.

2.2.3.1.4 Public Relations

Inquiries - We are open to all the questions of our potential customers in the social media. Also we have our hotline and mobile phone number for their queiries. They can also personally visit our travel agency for their questions.

Suggestions - We are open for suggestions in our social media accounts and pages. Suggestions from social media will be reviewed and studied if can be applied to our services.

Comments and Reactions - The customers that availed our tour will be given a reaction sheet to evaluate their overall experience in the tour. We are also open for the comments and reactions of the netizens on the social media about our tour packages.

2.2.3.2 Methods and Message2.2.3.2.1 Type and Media used

Social Media- We will have our facebook page for Schole Travel and Tours Also a instagram and twitter accounts.

Newspaper and Print Ads- Schole Travel and Tours will have an ad on a certain newspaper. Additionally flyers will be

distributed and tarpaulins will be posted along the streets.

2.2.3.2.2 Message conveyed

The message we will convey is mainly our affodable but high quality service. We would like everyone tobe aware that we are dedicated in providing excellent service in terms of travel and tours. We will let them know that we find ways for everyone to have a break in the reality of life. Also we conveyed that tours and travelling are not only for rich people. Even the low wage earners will have a tour package that they can afford. In simple words travel and tour are for everyone to enjoy.

2.2.3.3 Spending and Timetables2.2.3.3.1 Advertising and Promotional materials will be used

Type of Advertising Quantity PriceInternet / Social Media N/A Energy CostFlyer 1000 copies 15 pesos per copyTarpaulin 200 copies 8x10 60 pesos per copyNewspaper N/A Depends on Newspaper

Company Rate

2.2.3.3.2 Brief explanation on the budget set for the advertising and promotions

Overall Budget for Advertising Overall Budget for Promotions6,000.00 php 2,000.00

- The set budgets are based on the estimated cost of the spending on Advertising and Promotions.

2.2.4 Pricing2.2.4.1 Describe the pricing strategy and justification

For Day Tour

Transportation Toll Fees Tour Guide, Driver, Staff Hotel AccommodationEntrance FeesInsuranceBuffer

Total = x15 Mark up

2.2.4.2 Gross Profit Margin

2.3 Marketing Environment2.3.1 Target Market

2.3.1.1 End users from customers

End Users

Students - Fully developed tour packages are commonly for them because their tour is for educational purposes. The tour will enhance their knowlegde and skills. The tour packages product will cause them cognitive development. They always tend to avail the same service for the reason that it willenhance their further development.

Pilgrims - These peace seekers aims to develop theirselves and enhance their faith. Fully develop tour packages are for them cause their itineraries should be purely destinations that is quiet and peaceful. They tend for repetition of availing the service if they more seek for inner peace.

Customers

Vacationers - The individuals, couple or tour groups that seeks places to have fun and unwine They want to remove the stress they acquire from their work. Any tour package will fit them for the reason that they are open to go to any destinations that they can enjoy.

2.3.1.2 How the product/service will benefit its end users and customers

Benefit to End Users - The tour service can help the end user to develop themselves in certain aspects. Specialized tour packages are can cause them to acquire new knowledge’s and skills. Tending for repetition of availing the service can more enhance their knowledge’s, skills and other aspects in their lives.

Benefit to Customers - The tour service will enable them to escape the reality of life which is full of stress. The whole tour will enable them to escape the real world for a while. They will feel relaxed and stressed free. The feeling of joy during the tour is priceless especially when they are with their loved ones. It also make them explore new destinations, their tour is full of adventures and enjoyment.

2.3.2 Business-to-business markets2.3.2.1 To what industry does the target market belong to?

Manual Labor Industry-This industry is one where the target market belongs. These individuals are commonly composed of low wage earnersor manual laborers which is theblue collar job workers but still Schole Travel and Tours has a tour package that they can afford. They are one of the target because their population is huge and they always wanted to have a rest durings holidays with their families and co workers.

Educational Institutions Industry - This industry which are one of the main target because one tour availed by the institutions of this industry can bring a huge profit. Educational purposes are the reason why schools avails tour packages. It can be and educational trip or seminars.

Corporate Industry- This industry is composed of professionals which are average and high wage earners which is the white collar job workers. Hence their company usually conducts company tours or outings. Having them availed our tour services can generate a huge amount of income.

2.3.2.2 The market size

The size of the target market of Schole Travel and Tours are all huge. Because these industries belongs to the largest industries in the Philippines. They are commonly the industry that avails tour packages. Thus tours are common to these industries whether for leisure or educational purposes. So the market size of the manual labor, educational institutions and corporate industries are all huge.

2.3.3 Business-to-customer markets2.3.3.1 Demographic Factors

2.3.3.1.1 Distribution of Respondents According to Age2.3.3.1.2 Distribution of Respondents According to Gender2.3.3.1.3 Distribution of Respondents According to Civil

Status2.3.3.1.4 Distribution of Respondents According to

Occupation2.3.3.1.5 Distribution of Respondents According to Monthly

Income

Philippines Demographics Profile 2014- Statistics Data are from the Official Site of National Statistics Office

Population 107,668,231 (July 2014 est.)

NCR

9,932,560 = 12.98

Age and Gender

0-14 years: 33.7% (male 18,493,668/female 17,753,359) 15-24 years: 19% (male 10,416,358/female 10,044,724)

25-54 years: 37% (male 20,031,638/female 19,796,545)

55-64 years: 5.8% (male 2,882,719/female 3,372,485)

65 years and over: 4.5% (male 2,103,596/female 2,773,139) (2014 est.)

Civil Status

Occupation

Monthly Income

2.3.3.2 Psychological Factors 2.3.3.2.1 Psychological Segmentation

Knowledge (cultural or educational motives)- The tourist that seeks to learn about a certain culture of a place or for educational

purposes like seminars and trainings.

Punishment Minimization (the need to escape)- The tourists that want to release stress in the way of leisure.

Reward Maximization (pleasure or sensation-seeking)- The tourists that succeed something in their life and wants to celebrate it by means of

seeking pleasure in leisure.

Self Esteem (Social Prestige)- The tourists that want to socialize with others or find new friends and acquaintances by

the means of tour to develop their self esteem.

Ego Enhancement (Social Prestige)- The tourists that seeks social recognition from others that they are living a prestige life.

2.4 Competitors2.4.1 Describe from the target market level who are the direct and indirect

competitors

Target Market Level

- The target market level of Schole Travel and Tours are people of all ages vary with any reason that wants to travel within our country. Reasons that may vary from educational, business, leisure, religious etc.

Direct Competitors

- The travel agencies near our area and within the Quezon City that offers the same services.

Indirect Competitors

- Large and leading travel agencies that some of their features offers the same services.

2.4.2 Key competitors

Travel Agencies within Quezon City Area

2.4.3 Key barriers to entry in the market

Insufficient funds

- The capital may not be enough in fully establishing the business and also their taxes and permits that requires fees. Thus availing loans is a high risks and can lead to bankruptcy because projected sales does not have an assurance of profit generation.

Lack of Experience - Establishing a travel agency isn't that easy especially when the owners of the business are new to the field. Even though the owners gone through proper education. The real field of travel and tours is way far different than educational facilities. Thus newbie owners can experience unexpected hard circumstances that can cause the failure of establishing the business.

2.4.4 The uniqueness of the product

Revolutionary ItineraryOne of a kind tour packages that is unfamiliar and new to the customers. The great combinations of the destinations in the itineraries are surely amazing and the tour is undeniably exciting.

Insurance We will tie up with an insurance company that offers low price insurance but will cover any incidents or accidents during the tour. Other travel agency has wavers for customers to avoid liability. But in our tour packages rate the insurance is included with a cheap and affordable price.

2.4.5 How competitors will react to this new business idea

- The business idea of Schole Travel and Tours may have the tendency to be imitated by other competitors. Also they will make the price of their tour packages as cheaper as they can to match or surpass the affordability of the tour packages of Schole Travel and Tours. There's also a high tendency that the competitors will make more promos to diverse the attention of the customers to them. There is also a high chance that competitors will make desperate moves like finding the weaknesses of Schole Travel and Tours and use it as an advantage against us.

2.5 Industry

2.5.1 Details about the industry in which the business operates

Tourism Industry

- Tourism is travel for pleasure; also the theory and practice of touring, the business of attracting, accommodating, and entertaining tourists, and the business of operating tours. Tourism may be international, or within the traveler's country. The World Tourism Organization defines tourism more generally, in terms which go "beyond the common perception of tourism as being limited to holiday activity only ", as people "traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes".

Tourism can be domestic or international, and international tourism has both incoming and outgoing implications on a country's balance of payments. Today, tourism is a major source of income for many countries, and affects the economy of both the source and host countries, in some cases being of vital importance.

Tourism suffered as a result of a strong economic slowdown of the late-2000s recession, between the second half of 2008 and the end of 2009, and the outbreak of the H1N1 influenza virus, but slowly recovered. International tourism receipts (the travel item in the balance of payments) grew to US$1.03 trillion (€740 billion) in 2011, corresponding to an increase in real terms of 3.8% from 2010. International tourist arrivals surpassed the milestone of 1 billion tourists globally for the first time in 2012, the same year in which China became the largest spender in international tourism globally with US$102 billion, surpassing Germany and United States. China and emerging markets such as Russia and Brazil had significantly increased their spending over the previous decade.

Tourism is an important, even vital, source of income for many countries. Its importance was recognized in the Manila Declaration on World Tourism of 1980 as "an activity essential to the life of nations because of its direct effects on the social, cultural, educational, and economic sectors of national societies and on their international relations."

Tourism brings in large amounts of income into a local economy in the form of payment for goods and services needed by tourists, accounting for 30% of the world's trade of services, and 6% of overall exports of goods and services. It also creates opportunities for employment in the service sector of the economy associated with tourism.[

The service industries which benefit from tourism include transportation services, such as airlines, cruise ships, and taxicabs; hospitality services, such as accommodations, including hotels and resorts; and entertainment venues, such as amusement parks, casinos, shopping malls, music venues, and theatres. This is in addition to goods bought by tourists, including souvenirs, clothing and other supplies.

2.5.2 Illustrate and explain demand and supply factors and the trends of the industry

Basic concept on demand and supply factors is the higher the demand, the lower the supply and vice versa.

If the demand for a destination gets high then the supply in that destination will fall and the supply should become efficient.

If the supply in a destination is high and the demand for that destination is low then there will be many exceed on supply and may tend to be a waste of money.

Trends in the Tourism Industry

White Sand Beaches

- Tourists always look for white sand beaches that are pleasing to their eyes and not to mention the crystal clear waters.

Local Delicacies

- Tourists crave for the local delicacies that are native to one province. The recipes that were passed to present generations by their ancestral traces.

Underground Caves

- Many percentages of tourist’s looks for adventure and one of the hottest destinations are the underground caves.

Ancestral Houses

- The majestic architecture of the houses of an individual or clan that has a mark on history.

Historical Heritage

- The places where the people that part of the national history lives during their glorious years.

Gambling

- A hobby for those tourists who have fortunes and want to gamble for fun.

Health and Wellness

- Certain percentage of tourists wants to travel for health purposes in natural ways like going to hot springs and doing physical activities that improve physical fitness.