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Enhancing Our Heritage : Business Skills Sharing Pilot Project Business Planning Toolkit background and status Pilot Project training to date Business Planning Toolkit overview Feedback from Pilot Project
Business Planning Toolkit Background and StatusShell Foundation developed Business Planning Toolkit specific to EOH project, with support from Shell International business consultants, in 2004/5Toolkit covers key areas of business planning, resourcing an organisation to realise the plan (finance and people)implementing the activities needed to achieve the planned goalsToolkit designed to provide clear guidance, useable by conservation organisations of all sizes, with a minimum of business jargonToolkit takes the form ofPowerpoint slidepack for each key business planning topic, provides overview and guidanceEmbedded tools provide instruction for more detailed analysis and plansEmbedded examples to illustrate the theory
Pilot Project Training To DateTwo pilot project trainings completed with Seychelles Island Foundation (SIF) and Uganda Wildlife Authority (UWA), to transfer business skills for the management of the Valle de Mai, Aldabra Atoll and Bwindi Impenetrable Forest World Heritage sitesEach organisation received 2 training visits to transfer skills and support them in developing a business plan as well as back office mentoring supportBusiness Planning Toolkit has been updated with feedback from both SIF and UWA to fill any identified gaps and improve the clarity of the language usedExamples from UWA and SIF have been used to illustrate the Toolkit
Business Planning Toolkit Overview
UWA Vision
To conserve biodiversity, physical and ecological process of BINP and MGNP, especially the globally endangered mountain gorilla, for the benefit of the people of Uganda and the global community.
UWA Mission
To work with partner organizations and local communities in managing BMCA so as to maximize benefits that accrue from the conservation area and ensure that any use of natural resource is equitable, financially and ecologically sustainable.
BINP = Bwindi National Park
MGNP = Mgahinga National Park
BMCA = Bwindi-Mgahinga Conservation Area
SWOT Analysis Template
Internal Forces
External Forces
Strengths
Opportunities
Two very good products: Vallee de Mai known globally by tourists and Aldabra globally known by scientists/conservation/environmentalist
Large market share of Seychelles tourist at Vallee de Mai
Good relationship with government and NGOs: Good international contacts, e.g. Shell, Smithsonians, Royal Society
Good reputation internationally
Work force has a balanced skill set and an expert in the key locations of Aldabra and Vallee de Mai
Good employee good first appeal and good remuneration
Currently financially viable in the black. Have Foreign Exchange account
Small, flexible and autonomous
Accepting of change and new technology
Increase revenue from tourists who visit Vallee de Mai by selling merchandising, food, ect
Networking/co-operation with other organizations, e.g. exchange programme
Large potential global funding opportunities, e.g. EU, World Bank, Private sector
Large market of scientists/environmentalists/education visits which could increase revenue by fees, selling research, grants. This applies for Aldabra and Vallee de Mai
Improve HR skill base through training
Chance to reduce costs (e.g. communication:V sat, exchange)
Extend World Heritage site territory with local/regional org.
Increase revenue from tourists who visit Aldabra by selling merchandising, food, ect
Increase revenue from online sales and fundraising campaigns
Obtain revenue from global community or general visitors to Seychelles
Weaknesses
Threats
Only one main revenue stream: Heavy subsidy to Aldabra which is a large cost centre
Operations not efficient or optimal: inventory management, selling/marketing skills, procurement
Lack of KPIs, targets and assessments for SIF and individuals (work plan)
No business/marketing plan: no objective structure for long term. Skills important aspect
Little experience in budgeting or budget vs actual tracking
Do not have control of logistics to Aldabra as 3rd operates boat
No experience in project proposal writing for funding
Small: Lack of resources to exploit opportunities
No HR policy
Lack of office space
Tourism reducing in the Seychelles
Competition from Fon Ferdinand
Natural disasters (e.g. fire, global warming, cyclone)
Negative government intervention and change, e.g. lease arrangement, splitting two sites
Boat logistics supplier outsources or closes
Damage relationship with Preslin population
Poaching increases at both sites
UWA : Stakeholder analysis
Stakeholder type
Expectation and objectives
Power and Influence
Commonality & Conflict
Government
Ugandas rich biodiversity maintained.
UWA contribution to tourism
Regulation, policies, taxation, funding
Increased tourism and biodiversity conservation
MTTI
Biodiversity maintained
Tourism enhanced
Appoint board, develop policies, laws
Increased tourism and biodiversity conservation
BoT
UWA vibrant and self sustaining
Develop policies and decisions,
Increase in animal population
Limited conflicts with communities
Vibrant and motivated staff
Staff
Salary, job satisfaction and security,
Staff turn over, visitor influence, good management
Higher salaries may result into lower funds to run PAs but also higher staff morale and therefore better productivity
Donors and NGOs
Conservation of biodiversity
Funding
Publicity for themselves
Biodiversity conservation
Community benefits from conservation
Researchers
Data from the PAs
Generate information used for decision making
Failure to understand difficulties in management
Provide info for better management.
Local government
Shared responsibility in management
Influence community decisions and participation
Share in revenue from entry into PAs
Tourists
Visitor satisfaction
Bring their money
Prefer lower tariffs
Desire high populations and diversity of wildlife
AUTO members
Profits from sale of permits
Marketing
Desire more tourists in PA, prefer lower, profits
Suppliers
Long term orders, timely payment
Quality, pricing
Generally seek high prices and timely payment
Surrounding community
Local jobs, resources, local impact
Opinion leaders, poaching, sabotage
Would prefer land for agriculture, crop raiding costly for them.
MTTI = Ministry of Tourism
BoT = Board of Trustees
NGO = Non-Governmantal Organisation
AUTO = Association of Ugandan Tour Operators
PA = Protected Area
SIF PEST analysis
Factor
Examples
Own business
Political
Taxation policy
Environmental protection laws
Government stability
Favorable tax conditions for SIF: exempted from paying trade tax on imports; duty free fuel; no business tax
Favorable environmental laws backed by political commitment
Seychelles has political stability
Economic
GDP trends
Unemployment
Business cycles
Seychelles has a high per capita income # USD8,000
Low unemployment
Seychelles has an expanding economy
Seychelles has forex shortage
Social
Population demographics
Lifestyle changes
Levels of education
Social mobility
Fairly young population
Enjoys good lifestyles adapted to western countries
More than 90% literacy rate
Seychellois travels a lot to different countries for holidays and shopping
Technological
New technologies
Industry focus on technological effort
Speed of technology transfer
Adapts well to new technology
Industries applies technology very quickly
Technology is easily accepted and applied
SIF Customer Profile
CUSTOMER TYPE (OR NAME): Visiting tourist to Vallee De Mai and Aldabra
Factor
Examples
Please provide a brief description of key client characteristics
Demographics
Age
Sex
Marital Status
Education
Profession
Average age 30 to 50 years (VDM)
Average age 40 to 65 years (Aldabra)
Large % are couples and family groups
Most are fairly educated on the environment
Mostly western Europeans (VDM)
Mostly Americans and western Europeans (Aldabra)
Economic Factors
High-Medium-Low Income
Personal Debt
Taxes
Savings Tendency
Most come from medium to high income bracket
Occasionally some are rich personalities (Aldabra)
Consumer Adoption Process
Please identify category:
Innovators
Early Adaptors
Early Majority
Late majority
Laggards
Most want to visit VDM on their first to Seychelles
Psychographics
Customer demand
Lifestyle
Motives
Interests
Most are motivated by need to visit renowned tourist site
Some are nature enthusiasts
BINP-MGNP Marketing Objectives:
Grow revenues from xxx to xxxx by end 2008
Grow total visitor numbers by 15% by end 2008
By targeting new markets/customer segments
By developing low season incentives
Develop and market 2 Golden Monkey groups for tracking in MGNP by end 2008
Develop 2 additional products/packages for each BINP and MGNP with trained guides by end 2007
Improve promotional items and merchandise
Business Planning Toolkit Overview ctd.
Agenda Brainstorming Meeting with SIF Board on 18/11/2004
Resources
Market Analysis
Marketing Plan
Key QuestionsSIF (corporate level)AldabraValle de Mai
Customers Who are the key customers What criteria used to separate them (demographics, economics, lifestyle etc)Dealers/tour guidesPalm enthusiastsGrant giversScientists/researchesCruise ships: couples >50, European/USA, very wealthy.Uni research orgsFilm MakersRich nature enthusiasts Divers, single 30-50Tourists to Seych: couples >30,wanting a quieter holiday, Europeans, high income.Professional photoCruise ship visitors
Positioning What is the competition Positioning in terms of service delivery and product Why should the customer buy you and not competitionOther global and local nature based NGOs, Manage two WHS sites, good international reputation, largest dist coco de Mai, extensive stakeholder network.Galapagos, Madagascar, Top dive locationsUnique, Global significant, WHS, Giant Tortoises, pristine, extreme remotenessAll excursion operators and Fond FerdinandMarket leaderUnique, accessible, serene, natural mystical, WHS
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This document is confidential. Distribution of this document is strictly at the discretion of OP Management Consultancy. Holders of this document are responsible for its secure management at all times. The copyright of this document is vested in Shell International Petroleum Company Limited, London, UK. All rights reserved. Neither the whole nor part of this document may be disclosed to any third party, reproduced, stored in any retrieval system or transmitted in any form or by any means (electronic, mechanical, reprographic, recording or otherwise) without the prior written consent of the copyright owner.
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UNESCO / IUCN / UNF / Uni.of.QLD / SIF / SF / SIEnhancing our Heritage Skills Sharing Project
Business Planning Toolkit Section 3Market Analysis
August 2004
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Table of Contents
Market Analysis - OverviewMarket DefinitionPEST AnalysisCustomer ProfileCompetitionStrategic Options
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Market Analysis Overview
Usually after the Company Analysis the Business Plan typically includes a Market/Industry analysis. This is important as in order for the business to achieve its mission/goals, it must first demonstrate ability to understand/incorporate all external factors to its business planning processThe level of control the business has over different external factors varies greatlyIn addition, the volatility of the market influences the business planning process. Typically, markets can be grouped as:Stable (little or no change, well established relationships, mature markets)Dynamic (moderate change, new entrants, often are newly liberalised markets)Turbulent: (unpredictable rapid change, often high level of technological development)
This Section will help you understand the external factors that affect your business. Managing these factors to your best interest is often the basis of competitive advantage
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Market Analysis Overview (cont.)
The type of market is important in business planning as in a stable market a well-defined plan can be developed from the outset; but in highly turbulent markets, strategic decision are more likely to evolve as events unfoldThe Market Analysis section typically includes paragraphs over the competitors, the clients, the macro and micro environment etcAn illustrative description of the market environment could be the following
Suppliersraw materials, components, goods & services
Competitors
Routes to MarketDistributors, value added resellers, independent service vendors, etc
Customers
Prospective Customers
Global, national, local, political, economical influences. Labor unions. Government etc
OWN BUSINESS
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Market Definition
This is the first paragraph of the Market Analysis section and it includes information on:industry typespecific market typemarket sizemain market segmentsmarket shares (of own business and of main competitors)market growthmarket trendsIn this section there is often a brief description of the products, the main competitors, the suppliers and the main customers (these topics will be addressed in detail later on)Sources of information for this sections are: industry reports, government data, market reviews/magazines, competitor analysis, statistical data etc
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Market Definition (cont.)
It is also very useful for the reader if there is information on the way the market is structured. One common (and effective) way to illustrate the way the market is structured is by using M. Porters 5 Forces Framework
Market Definition
The market we operate could be defined as following [x]
The [x] market is growing at a rapid/slow rate. The market for these products amounted to $[x] million in 19[xx]--representing a [x]% growth over $[x] million in 19[xx].
The overall [x] market for the [x] industry is projected to be $[x] million/billion by the end of 19[xx]. The overall market potential for [product category] is estimated to be $[x] million by 19[xx], and the [additional products] portion of this market is estimated to be $[x] million. The area of greatest growth in the [x] market is in the area of [x].
The stability of this market segment is [volatile, uncertain, solid, etc.], based on [x] product category performance over the past two years.
What do industry forecasters predict for the next two years?
Key points in defining the market segment for [product] are [x], [x], and [x].
By product feature, by lifestyle of target consumers, by geographical location, by season, etc.
Include charts where appropriate.
The major market segments are:
[Segment 1]
[Segment 2]
List, by broad category, the types of customers you are likely to sell to. (Retailers, Electrical Contractors, Mail-order catalogs, etc.)
Currently, the market is shared by [x] participants.
How is the market distributed among major participants?
Summarize your view of the trends and implied opportunities.
Porters 5 forces Framework
Framework Presentation
The five-force framework provides checklists to analyse the industry structure, environment, and trends affecting industry profitability. The five main factors are:
Suppliers
Byers (or clients)
Substitute products
Competition - threat from new entries
Competition - among existing competitors
It identifies the most important drivers no industry competition or profitability
It provides a concise overview of an industrys structural attractiveness
The goal of this analysis is to find a position in the industry where the company can best defend itself against the five competitive forces or can influence them in its own favor
How to use the framework
Template Examples
Force
Examples
Own business
SUPPLIERS
Differentiation of inputs
Switching costs of suppliers and companies in the industry
Presence of substitute inputs
Supplier concentration
Importance of volume to supplier
Cost relative to total purchases in the industry
Impact of inputs on cost or differentiation
Threats of forward integration by companies in the industry
BUYERS
Bargaining leverage
Buyer concentration versus company concentration
Buyer volume
Buyer switching costs relative to company switching costs
Buyer information
Ability to backward integrate
Substitute products
Pull-through
Price sensitivity
Price/ total purchases
Product differences
Brand identity
NEW
ENTRANTS
Economies of scale
Proprietary product differences
Brand identity
Capital requirements
Switching costs
Access to distribution channels
Absolute cost advantages
Proprietary learning curve
Access to necessary inputs
Proprietary low-cost product design
Government policy
Expected retaliation
SUBSTITUTES
Substitution Threats
Relative price performance of substitutes
Switching costs
Buyer propensity to substitute
INTERNAL
COMPETITION
Industrial growth
Fixed (or storage) costs/ value added
Intermittent over capacity
Product differences
Brand identity
Switching costs
Concentration and balance
Informational complexity
Diversity of competitors
Corporate stakes
Exit barriers
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Intensity of rivalry among existing competitorsRivalry occurs when one or more competitors either feel the pressure or see the opportunity to improve positionRivalry takes the form of price competition, advertising battles, product introductions, etc.
Bargaining power of suppliersSuppliers can exert bargaining power over participants in an industry by threatening to raise prices or reduce the quality of purchased goods and servicesPowerful suppliers can thereby squeeze profitability out of an industry unable to recover cost increases in its own prices
Bargaining power of buyersBuyers compete with the industry by forcing prices down, bargaining for higher quality or more services, and turning competitors against each other - all at the expense of industry profitability
Pressure from substitute productsSubstitutes limit the potential returns of an industry by placing a ceiling on the prices companies in the industry can charge
Threat of entryNew entrants to an industry bring new capacity, the desire to gain market share and often substantial resourcesProfitability can thereby be reduced through the bidding down of prices or the inflation of cost
Other (e.g. technological)Different industries may have different forces that require special consideration
GovernmentMany consider this the sixth force as unaccounted for in the five forces model. It is often a critical factor
Exit barriersHigh barriers to exit may also have a significant effect on the structure of an industry
Global economicsThe global economic situation can greatly influence the profitability of an industry
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PEST Analysis
PEST Analysis lists the Political, Economic, Social and Technological external factors that may affect business performancePEST is very useful framework to address a business macroeconomic environmentBesides being a useful part of the Business Plan PEST can also be used (in a workshop) to help management develop a complete picture of the companys external environmentSome of the issues that are often discussed during PEST Analysis are:Political (& Legal): Direct and Indirect Taxes, Corporate Taxation, Public Spending, Regional and Industrial Policy., Monetary Policy & Interest Rate, Changes in International Trade, Competition Law, Deregulation/Regulation Issues, Bureaucracy, Corruption, Legal Issues etcEconomic: Business Cycle, Employment Levels, Inflation, Exchange Rates, Stockmarket Prices, Economic Development etc
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PEST Analysis (cont.)
Social (& Environmental): Population Growth, Age Structure, Rural to Urban Migration, Social and Cultural Shifts, Environmental Impact & Pressure Groups, Racial Issues, Education Levels etcTechnological: Level of expenditure in Research & Development, New Markets (as a result of a new technology), Production Methods, Rate of adoption of new technology et
PEST Analysis Template
Objective
To identify the key macro-environmental influences (past, present and future) impacting an organisation or industry
Methodology
Gather external data (external opinion/fact) on key elements identified in the following slide. (Sources: government statistics/ reports, independent research / media reports, interviews etc). Dont forget to look at future trends in addition to past and current position.
Invite to a workshop a diverse range of personnel from different levels of seniority (e.g. Chairman, production/sales/public affairs staff etc) and possibly some external representatives.
Using the external data and internal opinion/fact, brainstorm the key environmental influences under each PEST heading in turn, particularly focusing on the three key questions.
Identify the 4 or 5 most important environmental influences impacting on the organisation
Template Examples
Factor
Examples
Own business
Political
Foreign trade legislation
Environmental protection laws
Taxation policy
Employment law
Government stability
Economic
GDP trends
Interest rates
Inflation
Unemployment
Business cycles
Social
Population demographics
Income distribution
Lifestyle changes
Levels of education
Social mobility
Technological
New technologies
Industry focus on technological effort
Speed of technology transfer
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Customer Profile
Knowing exactly who you are selling to is crucial in obtaining favourable response from your investors. As customers we define people from which your company is obtaining financial benefits or people that have the power to stop your business from getting these financial benefitsCustomer Profiles in Business Plans varies hugely in length. In some cases, there is just a brief description of the key customers and in some there are detailed profiles using diverse criteriaSome of the criteria used for developing the customer profiles areDemographics (Age, Sex, Marital Status, Education, Profession etc)Economic Factors (High-Medium-Low Income, Personal Debt, Taxes, Savings Tendency)Consumer Adoption Process (groups all customers in: Innovators, Early Adaptors, Early Majority, Late majority, Laggards)Psychographics (Customer demand, lifestyle, motives, interests etc)
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Customer Profile (cont.)
The description of the customer profiles of the business should be closely linked to the product/service offering (discussed in the marketing plan) and to the overall strategyEspecially in the case of non-profit organisations and NGOs it is important to understand that there are direct and indirect customers. Often the indirect customers (the ones who are not directly related to the product or service) are more influential and have to be consideredAnother interesting view is that of external and internal customers. In that way, many of the internal (to the business) stakeholders can be also seen as customers
Customer Profile Template
CUSTOMER TYPE (OR NAME):..
Factor
Examples
Please provide a brief description of key client characteristics
Demographics
Age
Sex
Marital Status
Education
Profession
Economic Factors
High-Medium-Low Income
Personal Debt
Taxes
Savings Tendency
Consumer Adoption Process
Please identify category:
Innovators
Early Adaptors
Early Majority
Late majority
Laggards
Psychographics
Customer demand
Lifestyle
Motives
Interests
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Competition
Of critical importance in the business planning process is the Competition sectionUnderstanding competition is also very important for the Risk section later onInformation about competition is not as easy to find as that for the market but it still accessible. Some of the best sources are: the internet, published accounts, competitor reports, financial institutions etcTypically, the competition section includes information about: Competitor products/services (price, quality, specs etc)Competitors Organisation (structure, management, staff etc)Track record (reliability, selling points, word of mouth reputation etc)In some business plans, competition analysis follows a specific checklist (see following)
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Competition (cont.)
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Competition (cont.)
It is often very useful to conduct a brief SWOT for the main competitors. A more advanced but useful technique is to rank competitors according to key success factors and compare with the business (Aakers Model)
Competition
COMPETITOR TYPE (OR NAME):..
Factor
Please provide a brief description of key competitor characteristics
Products & Services
Pricing Strategy
Distribution Strategy
Promotion Strategy
Brief
Competitor
SWOT
Analysis
Strengths
Opportunities
Weaknessess
Threats
Aaker Analysis Template
Objective
To see competive relative strengths and weaknesses (in comparison to own company) by using a weighted scoring model
Methodology
Agree on the key success factors on which you are going to assess the companys competitors. These can be from 5 to 10 factors. Common factors used:
Market Share
Distribution
Brand Image
Product Quality
Product Variety
Patents
R&D
Financial Resources
Agree on relative importance of factors for your market. Give importance weights to each (sum of weights must be 1.00)
Rate the competitors. For each factors give a score (from 1 to 5 with 5 being very good performance)
Rate own business
Calculate scores (weights x scores).
Use overall score to rank competitor effectiveness and the graph to illustrate big gaps in performance
Template Examples
Key Success Factor
Importance Weight
Own Business
Competitor A
Competitor B
Competitor C
Rating
Score
Rating
Score
Rating
Score
Rating
Score
Market Share
0.25
4.0
1.0
Distribution
0.20
3.0
0.6
Brand Image
0.16
4.0
0.6
Product Quality
0.13
3.0
0.4
Product Variety
0.11
5.0
0.6
Patents
0.08
4.0
0.3
R&D
0.04
4.0
0.2
Financial Resources
0.03
3.0
0.2
Overall
1.00
3.8
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Strategic Options
Having presented the company and its environment in the previous sections the author is now able to talk about strategic optionsThere is no widely accepted view on where this section should be located. Some short business plans even omit it. However, not talking about the strategic options of the business is like trying to go through the planning process without knowing exactly what the goals/options areDepending on the type and length of the Business Plan this section can be from a simple list of different options and a simple choice of one (supported from some brief reasons) to a detailed analysis using various frameworks and evaluation techniquesOnce the a strategic options had been selected the author must use the rest of the Business Plan in order to demonstrate how it is going to be applied. Keeping focus on the strategic direction of the business is essential when the author is presenting the business marketing, operational and HR strategy
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Strategic Options (cont.)
There are several dangers when writing this section of the business plan. The author must make sure thatThe strategic options listed are well-defined and presented in a simple and clear wayAll strategic options should be in line with the mission & goals of the business (contradictions will confuse the readers of the plan)Previous strategies should also be taken into account (business planning is a continuous & learning process)The process of evaluating options and selecting the most appropriate should be transparent and logicalAll strategic options should arise naturally from the company and market analysis that was undertaken earlier and not look forced fit (this often happens when trying to satisfy an idea/belief of the management without having supporting information). The link between the strategic options and the analysis conducted before is illustrated in the following diagram
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Strategic Options (cont.)
Strategic Options
Political
ExistingPlayers
NewEntrants
Supply
Customers
Substitution
SWOT
Social
Economic
Technological
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Strategic Options (cont.)
Before looking into the future the company should first evaluate its past. Previous strategies provide valuable lessons learnt and should not be ignored
Strategic Options can be identified using different methods (interviews, focus groups, brainstorming etc) and evaluated with diverse criteria (financial impact, market impact, proximity to current strategy, risk involved, feasibility etc). The selection of the method and of the criteria must be distinct for each organisation in order to fully meet its needs
Briefly describe previous strategy
Was or is the strategy effective? Why or why not? Should it be considered as a strategy for the future? Why or why not?
Strategic Options Template
Strategic issue(stated as a question)
Proposed strategy
Assumptions, facts, andvalues which support this proposed strategy?
What possible obstacles do we face in implementing this strategy?
What triggers might encourage us to re-evaluate this strategy?
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4
Proposed Strategy
Ranking Factors
Financial impact
Market Impact
Feasibility
Risk
Other .
Overall
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Strategic Options (cont.)
Michael Porter identified three generic strategies: cost leadership, differentiation and focus (cost or differentiation). In some occasions, evaluating strategic options become clearer when trying to think the business strategy in these terms
Equally popular, is Ansoffs market based approach to strategic options. According to this theory, there are four major strategies: market penetration, product development, market development and diversification
Differentiation
Low Cost
Focus
Niche (narrow target)
Head on (broad target)
Cost Leadership
Differentiation
How to Compete
Where to Compete
Present
New
CUSTOMER
New
Present
MarketPenetration
MarketDevelopment
ProductDevelopment
Diversification
PRODUCT
CONFIDENTIAL
This document is confidential. Distribution of this document is strictly at the discretion of OP Management Consultancy. Holders of this document are responsible for its secure management at all times. The copyright of this document is vested in Shell International Petroleum Company Limited, London, UK. All rights reserved. Neither the whole nor part of this document may be disclosed to any third party, reproduced, stored in any retrieval system or transmitted in any form or by any means (electronic, mechanical, reprographic, recording or otherwise) without the prior written consent of the copyright owner.
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UNESCO / IUCN / UNF / Uni.of.QLD / SIF / SF / SIEnhancing our Heritage Skills Sharing Project
Business Planning Toolkit Section 4Marketing Plan
August 2004
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Table of Contents
Marketing Plan OverviewMarketing StrategyProductPricingPlace (Distribution)PromotionMarket Forecasting
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Marketing Plan Overview
An essential part of any Business Plan is the Marketing PlanThe Marketing Plan includes detail information on the customers you wish to target, the products and services you are trying to sell them and the ways in which you plan to deliver them to the marketIn addition, it outlines your plans for future advertising and promotion activities and the costs associated with completing these activities.Lastly, it attempts to predict your future sales based on market research and customer information
This Section will help you market your goods and services to your customers. Their support is necessary in achieving many of your business goals
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Marketing Strategy
The Marketing Strategy is the first section of the Marketing PlanTo develop the Marketing Strategy, the market and the potential customers must be analysedMarketing strategy differs from Sales strategy as marketing has a customer focus rather than a product focusThe marketing strategy process typically includes the following steps:
Marketing Objectives
Market & Customer Analysis
Market Segmentation
Market Targeting
Marketing Mix
Market Positioning
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Marketing Strategy (cont.)
The first part of your marketing strategy should set your marketing objectivesThe marketing objectives can be various and usually include:growth aspirations (% of sales, sales volumes, market share growth etc)target market segments (expansion of current segments, new market segments etc)target customers (new customer types for the same product, adapt product to approach new customers etc)The marketing objectives must be fully aligned with the goals & objectives (financial & non-financial) that were stated previously in the Business Plan
Examples:Our objective is to increase our sales by x%, to expand it geographically into the a, b, & c new regions, and to gain more recognition among the y customer segment
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Marketing Strategy (cont.)
After stating the objectives, the Marketing Strategy usually continues with market and customer analysisThis is important as the more you know about your markets & customers, the better you will be able to target them with your marketing activitiesIn this section, the author of the Plan must try to avoid overlaps with previous sections (about the market and the customers). After reading this section the reader of the Plan should typically be able to answer the following questions:What market need does the business address?What products serve that need?Who buys the products?Why do customers buy?Who makes the buying decision?Where do customers buy?
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Marketing Strategy (cont.)
Even if the author of the Plan cannot answer all the above questions he/she must try to include a well-defined description of all current segmented customer types for all the goods and services provided. Understanding the markets and the customers is often quite difficult. According to professor M. Porter the key is to first understand the buyers behaviour
Product,Price,Place,Promotion
Marketing Stimuli
Economic,Technological,Political,Cultural
Other Stimuli
Cultural,Social,Personal,Psychological
Buyers Characteristics
Problem recognition,Information search,Evolution,Decision,Post-purchase behaviour
Buyers decision process
Product choice,Brand choice,Retailer choice,Purchase timing,Purchase amount
Buyers decisions
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Marketing Strategy (cont.)
After the market and customer analysis usually follows the market segmentation sectionA market segment is a sufficiently defined group of buyers with differentiated needs and preferences that can be targeted with a differentiated marketing mixMarket segmentation is an essential part of the marketing strategy as by adjusting the marketing mix to address specific segments needs the business can increase its sales / profitsA practical example that illustrates the value of segmentation is air travel. The business travelers are happy to pay a significantly higher price for some extra product attributes (flexible tickets, extra space etc). However, adjusting the marketing mix also results in increased costs. In that way, for the market segmentation to be of value the benefits must outweigh the incurred costsThe segments must be measurable, easily identifiable and distinct. There are four main segmentation methods (see following diagram)
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Marketing Strategy (cont.)
Based on geographic criteria. Using tools such as postcode databases etc
Geographic Segmentation
Based on lifestyle, personal values and attitudes
Psychographic Segmentation
Based on demographic criteria (such as age, gender, income, social class etc)
Demographic Segmentation
Based on criteria such as: customer knowledge of product, purchase patterns, intensity of use, loyalty etc
Behavioural Segmentation
market segments
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Marketing Strategy (cont.)
After segmenting the market/s the business can proceed to market targetingTargeting essentially refers to the process with which the business decides which markets to serve By targeting market segments, the business can allocate its limited resources to the most efficient useTargeting should be performed by using two basic criteriaMarket attractiveness (based on financial & non-financial measures)Availability of resources (some segments may appear very attractive but the business might not have the necessary resources & skills available to select them)When deciding which segments to target you must also consider that the same product often cannot apply to many different segments. Tailoring the product implies extra costThe selected target segments must be aligned with the other segments of the plan. For example if your product is primarily targeting at a teenage customer group (that doesnt read newspapers but watches on average 3 hrs. of TV per day) then the advertising section should not suggest promoting the product in the daily newspapers
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Marketing Strategy (cont.)
The marketing mix is a tool to position products in the target market segmentsIt is defined by the four Ps:ProductPricePlace (distribution)PromotionAll elements of the marketing mix together with service constitute the offerThe elements of the marketing mix should be interlinked so that the value proposition is consistent. For example, you cannot offer a luxury product (that is perceived as a status symbol) at a low price (in comparison to the market expectations). If you do, then most likely the market will perceive your product as of lower valueEach aspect of the marketing mix will be addressed separately in the later sections
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Marketing Strategy (cont.)
Market Positioning in marketing terms refers to the way which customers perceive your company and product, relative to competitionPositioning answers three basic questions:Who is the brand for (ie the Target Group)What is the competition (I.e. the Competitive Frame)Why should the customer buy this brand instead of the competition (Reasons to Prefer)Positioning can:Force you to come to terms with who our customer isLead you away from attempting to be all things to all peopleHelp you identify our strengths; both functional and emotionalKeep you focused on our real competitors
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Marketing Strategy (cont.)
Most important, effective positioning allows you to differentiate your companys product from competitionAn effectively differentiated product exists when:The difference provides additional value to the customerThere is sufficiently large demand for this differenceThe difference is easily communicated and perceivedThe incremental cost of producing this difference is lower than the incremental revenueYou should spell out your Positioning and it should be based on market research.Positioning information can be gathered from diverse sources: market research (I.e. questionnaire surveys, telephone interviews etc), focus groups (with the top management, with key customers etc)Professional research companies
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Marketing Strategy (cont.)
In order to understand your products positioning in the market the author of the Business Plan can use a positional matrix. The matrix is a useful tool that uses the two most important dimensions of a product (i.e. cost, performance, taste, status, ease of use, technological features or else) to show the relative positioning of the product in comparison to the competition
TEMPLATE / SAMPLE
4.1. Positional Matrix Template
High
Dimension Y
Product Positional Matrix - Template
Low
High
Low
Dimension X
Instructions: Decide the two most important aspects (dimensions of the product) Rate your product and all competitive products according to a standard scale for both dimension Use a volume indicator (I.e. sales revenues) Input data into the chart (double click) View competitive positioning
Perceived Engine Power
Product Positional Matrix - Example
Perceived Safety
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Product
One of the four elements of the marketing mix, the Product section is an important part of the Marketing Plan Its purpose is to describe the goods and services that you are offering your customer. The author of the Plan should use this section to list the unique features of your goods and services and benefits to the customerThe product description should refer to both their tangible (size, weight, price) and intangible aspects (brand, status etc)
Product examples for Seychelles Island Foundation:Access to Aldabra for research purposes, Access to Vallee de Mai for tourists, Sale of Coco de Mer Palm nuts, Sale of other tourist items, Research Data etc
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Product (cont.)
Typically in this section the Business Plan lists all the products and services that the business offers to its customers. Their description can be in terms of:DesignPrice (briefly)FeaturesQualityVariationsPackagingBrandService offering
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Pricing
Pricing is a critical part of your marketing plan as it is one of the main levers you have in your financial plan and goalsPricing is one of the most effective marketing tools you have to promote your business as price:Conveys imageAffects demandAssists in targeting your market segmentIn this Section, the author of the Business Plan should explain:What is the companys pricing policies for all of its different products and servicesWhich are the main reasons for the pricing policy you chose.How do the business prices compare to competitionOther pricing issues (bulk discounts, credit terms, payment methods etc)
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Pricing (cont.)
The most commonly used pricing techniques are:Mark-up and margin pricing: This is where your profit is either determined as a percentage of the cost price or of the sell price. Where the profit percentage is based on the cost price, it is referred to as mark-up. Where it is based on the sell price it is known as margin. Breakeven pricing: Breakeven pricing is where you calculate the breakeven point of your business - the point at which your sales income and your fixed and variable costs are equal - and set your prices by adding your profit margin onto your unit price.Perception pricing: This type of pricing technique may require a significant amount of market research. It is often suitable where a brand new type of product is being introduced into the marketplace and the price is determined by what your target market perceives to be its value, I.e. how much they would pay for it.
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Place (Distribution)
This section of the Marketing Plan represents the Place element of the marketing mix and describes the distribution model and channels the business uses to reach its customers (retail, wholesalers, brokers, door to door, mail order, internet, etc.)The determining factors in choosing distribution channels are: Customer profileGeographyProduct typeBuying Behavioural PatternsSeasonal variationsEfficient use of fundsAbility to use existing channels (already used by other company products)The author of the Plan should also explain how the choice of distribution channels will impact the customer service delivery or support the overall product offer
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Promotion
In this section of the marketing plan should describe the tools and methods you are going to use to increase your customers awareness of your products and servicesPromotion is often seen as a cost but if used effectively its a valuable and necessary investment. Promotional and advertising campaigns will increase your company awareness, your product recognition (among business managers, retailers, buyers and customers) and increase salesIn the Promotion section of your Marketing Plan, you should make it clear who the segmented customers are that you want to focus your promotional activities on, and if this includes retailers and buyers as well.This section should include a description of the process you will use to engage the advertising agents, or other contractors, who will undertake the promotional activities.It should also describe how your advertising/promotion objectives fit together to maximise the impact of your overall promotional campaign.
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Promotion (cont.)
Subsections often included in the promotion section are: Media Objectives: What do you want to get out of using the media, what image do you want to portray as an organisation, for example professional, reliable, eco friendly, etc?Media Strategy: What medium to you want to use, what publications do you want to target and in what position, how frequently do you want to use the media, what audience will you focus on (referring to your customer profile), Advertising Campaign: What look and feel do you want to convey about your company, what will be the delivery and tone of your statements, how big an audience do you intend to reach, what kind of response rate are you expecting,
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Examples of Promotional Material:
Promoting an Organisation: Amnesty International
Promoting a Location: Queensland
Promoting a Product:: Shell Helix
Promotion (cont.)
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Promotion (cont.)
The author of the Plan should also provide a realistic budget for all promotional and advertising activitiesThe budget should include all costs associated with:AdvertisingDirect marketingSales promotionCouponsBundlingJoint promotionsLoyalty programsPublic Relations (PR)
TEMPLATE / SAMPLE
4.4. Marketing Budget Template
Sheet1
Marketing Budget
20032004200520062007
Advertising$6,000$3,000$2,000$4,000$6,000
Direct marketing$3,000$3,000$3,000$3,000$3,000
Sales promotion$3,000$3,000$4,000$4,000$5,000
Coupons & Bundling$1,000$1,500$1,400$2,000$3,000
Bundling$1,000$1,500$1,400$2,000$3,000
Joint promotions$800$1,400$2,000$3,000$3,200
Loyalty programs$1,000$1,500$2,000$1,300$1,000
Public Relations (PR)$4,000$7,000$6,000$7,000$9,000
Training$2,000$1,800$1,800$1,800$1,800
total$21,800$23,700$23,600$28,100$35,000
Sheet1
Advertising
Direct marketing
Sales promotion
Coupons & Bundling
Bundling
Joint promotions
Loyalty programs
Public Relations (PR)
Training
Marketing Costs By Year
Sheet2
Sheet3
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Market Forecasting
Marketing forecasting is an extremely important part of your Business Plan as it influences the companys profitability (if sales are underestimated) and also the quality of service (if sales are overestimated) The central role of market forecasting in the planning process is illustrated below:
Addressable / Potential Market
Sales Volumes
Prices
Market Value
Market Forecasting
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Market Forecasting (cont.)
In order for the forecast to be accurate, the author of the Plan has to follow a concise and robust market forecasting process. This could be the following:Define the market to be forecastedDefine the required forecast intervals and forecast horizonEstablish time and financial resources available to make forecastSelect the appropriate forecasting techniqueGather data and size the existing and potential marketMake a forecast in form of time series (including assumptions)Test forecast for sensitivity and benchmarkingIteration (review forecast assumptions again)Present/Use forecast
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Market Forecasting (cont.)
Forecasting techniques can vary from very simple to extremely complex. In general, they are grouped into two main categories:Quantitative methods such as regression analysisQualitative or technological methods such as diffusion or innovation modelsForecasts should be based upon historical data with projected growth rates for each market segment. The author of the Business Plan must assure that the growth rates are be realistic and based on strong evidence (i.e. market research)Market Forecasts are often presented in graphical form as well as tabular form
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Market Forecasting (cont.)
It is important that all key market assumptions on which the market forecast is based on are documented. They should include assumptions on:The future political, economic, social and technological environmentThe attractiveness of the markets in which the business operates and its ability to compete in them.The relationship between the assumptions and the forecast figures should be clear.It is very important to include some sensitivity analysis around you assumptions to check the robustness of your market forecasting.
Sheet1
example of simple forecasting template (using SIF products)
Market Forecast
Potential CustomersGrowth20032004200520062007
Coco de Mer Palms30%1000013000169002197028561
Visitors to Vallee20%20002600338043945712.2
Research groups to Aldabra10%100130169219.7285.61
Other tourist items50%5006508451098.51428.05
Sheet1
Coco de Mer Palms
Visitors to Vallee
Research groups to Aldabra
Other tourist items
Market Forecast
Chart2
2003100002000100500
2004130002600130650
2005169003380169845
2006219704394219.71098.5
2007285615712.2285.611428.05
Potential Customers
Coco de Mer Palms
Visitors to Vallee
Research groups to Aldabra
Other tourist items
Market Forecast
Sheet2
Sheet3
Agenda Brainstorming Meeting with SIF Board on 18/11/2004
Key QuestionsSIF (corporate level)AldabraValle de Mai
Product Merchandise of actual products (Coco-de-Mer, Aldabra merchandise etc)Coco-de Mai, merchandising, Access to tourists, access to research, photo license, research reports, merchandising, adopt an animal Access to tourists, photographic licenses, lease out shop,
Promotion Tools and methods for promoting corporate image and products (in terms of effectiveness and cost)Web site photo of the month initiative. More control on the image portrayed by Seychelles tourist mark auth.More regular newsletter and look at widening the audience (tour operators, scientist community, o/s network)Publish reports and send them to research and science community with brochures outlining research opportunity.Organise 2 week multi discipline research trip to Aldabra, Using o/s network to promote via speeches, e-mails, letters, pay for advertisements in science mag and write article about trip to publishPoster in airport Advertise in flight magTwice year write article to publish in flight mag.Attend hotel greeting nights once a weekUpdate brochure an consider paying commission to sell tickets
Role Description Example
Retailer
The Retailer articulates an exemplary vision of customer service and is able to hire, train, and coach staff to provide this high level of service. The Retailer has superior management skills, understands the importance of bottom line performance and works to improve it by growing the business within the standards and guidelines set . Most importantly, the Retailer realizes that this must occur in an environment where the safety of their customers and staff is a foremost consideration.
General Description
Role Title
Retailer
Purpose of the role
To deliver the customer promise on site/s by leading a well-trained and highly motivated team from the front, following adherence to all policies and procedures; whilst ensuring a profitable return.
Key Accountabilities:
Deliver the Customer Promise
Actively engage with customers to meet their needs. Personally handle, or assist site staff to handle, difficult, complex or sensitive customer complaints or problems, by telephone or face to face. Ability to deliver high operational standards.
Recruit and Train Staff
Responsible for the recruitment and training of site / cluster staff. Encourages and supports a learning environment. Has the ability to coach and train staff to a consistently high standard.
Sell
Improves the competitive performance of the business by employing the service etiquette. Identifies and maximizes business opportunities, with compliance through attention to detail.
Day to Day Management
Manage one or a cluster of sites, with average staff per site of XX people, covering all aspects of day to day supervision, scheduling, training, motivation and welfare, to ensure a happy, energised team able to offer outstanding care and responsiveness to customers
Adherence to Procedures & Policies
Ability to work within given parameters, appreciates the impact of own and teams actions on the business. Protects and promotes the brand of Shell.
Profitable Return
Passionate for achieving and exceeding targets, sets and monitors team objectives and targets; proven ability to deliver results.
Dimensions
Manage costs and budgets with P&L responsibility. Manage one or a cluster of sites with team of up to YY people
Gap Analysis
Employees Name: BMCA Ranger Guide
Instructions
Complete this review form as comprehensively as possible after each review. Use one form per individual and enter the date of each review.
Review all of the competency areas with the individual at the end of the assignment. Feedback your comments about his/her performance in terms of both strengths/weaknesses and identify and agree specific gaps and areas requiring improvement
Metrics
Scores are given using a 1 to 5 scale (with 5 indicating the highest level of performance)
Weight Factors are also given on a 1 to 5 scale (with 5 indicating the highest importance)
Assessment Factors
The Gap Analysis between role requirements and actual employee performance will be based on the following 14 factors:
Communication skills
Language skills
Sales & Marketing skills
Public relations skills
Problem solving skills
Physical fitness
Defence skills
First Aid skills
Tracking skills
Map interpretation & GPS skills
Health monitoring skills
Product knowledge e.g. gorillas, birds
Knowledge of culture, history, environment
Knowledge of animal behaviours and health
Explanation of factors is provided in the Appendix
Step 1: Set the Skills Requirements of Role (including relative importance)
SKILLS
Weight - Importance
Target Score - Expectation
1. COMMUNICATION SKILLS
5
1
2
3
4
5
2. LANGUAGE SKILLS
3
1
2
3
4
5
3. SALES & MARKETING SKILLS
4
1
2
3
4
5
4. PUBLIC RELATIONS SKILLS
3
1
2
3
4
5
5. PROBLEM SOLVING SKILLS
3
1
2
3
4
5
6. DEFENCE SKILLS
2
1
2
3
4
5
7. FIRST AID SKILLS
4
1
2
3
4
5
8. TRACKING SKILLS
1
1
2
3
4
5
9. MAP & GPS SKILLS
4
1
2
3
4
5
10. HEALTH MONITORING SKILLS
2
1
2
3
4
5
KNOWLEDGE
Weight - Importance
Target Score - Expectation
11. PRODUCT KNOWLEDGE
5
1
2
3
4
5
12. KNOWLEDGE OF CULTURE & HISTORY
4
1
2
3
4
5
13. KNOWLEDGE OF ANIMAL BEHAVIOURS & HEALTH
3
1
2
3
4
5
BEHAVIOUR
Weight - Importance
Target Score - Expectation
14. PHYSICAL FITNESS
4
1
2
3
4
5
Step 2: Use target scores above to identify the skills & competencies requirements of the role. Plot the results in the Gap Analysis Template at the end (Step 5)
Step 3: Define employee performance during the assessment period
SKILLS
Weight - Importance
Actual Score Current Status
1. COMMUNICATION SKILLS
5
1
2
3
4
5
2. LANGUAGE SKILLS
3
1
2
3
4
5
3. SALES & MARKETING SKILLS
4
1
2
3
4
5
4. PUBLIC RELATIONS SKILLS
3
1
2
3
4
5
5. PROBLEM SOLVING SKILLS
3
1
2
3
4
5
6. DEFENCE SKILLS
2
1
2
3
4
5
7. FIRST AID SKILLS
4
1
2
3
4
5
8. TRACKING SKILLS
1
1
2
3
4
5
9. MAP & GPS SKILLS
4
1
2
3
4
5
10. HEALTH MONITORING SKILLS
2
1
2
3
4
5
KNOWLEDGE
Weight - Importance
Actual Score Current Status
11. PRODUCT KNOWLEDGE
5
1
2
3
4
5
12. KNOWLEDGE OF CULTURE & HISTORY
4
1
2
3
4
5
13. KNOWLEDGE OF ANIMAL BEHAVIOURS & HEALTH
3
1
2
3
4
5
BEHAVIOUR
Weight - Importance
Actual Score Current Status
14. PHYSICAL FITNESS
4
1
2
3
4
5
Step 4: Use scores above to identify employee performance. Plot the results in the Gap Analysis Template using a different colour than in Step 2
Step 5: Review Gap Analysis Template below in order to identify the major gap areas
Step 6: List gaps in the table below and prioritise according to their importance (step 1). Write down the most important gaps first. Briefly comment on possible reasons that led to the gaps
List of Gaps
Skill Gap Area
Comments
Importance
Why is it important for gap to be closed ?
How will gap be closed ? e.g. training
5
5
5
4
4
3
3
2
2
1
1
4
Business Planning Toolkit Overview ctd.
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SIF Risk Evaluation Framework
Risk Impact
Likelihood of Occurrence
Low High
Low High
Competition from Fond Ferdinand
Safety & Security
Natural Disasters
Government Intervention
Human Resources Issues
Relationship Management Issues
Market Shifts
High Priority Risk Items
Low Priority Risk Items
Comments / Definitions:1. Risk Impact Ratings took into account financial impact & environment impact2. Likelihood of occurrence is defined from frequency and location of event3. Safety & Security Risk include: Poaching, Human Accidents, Vandalism etc4. Natural Disasters Risk include: Global warming, Fires, Major storms and other natural disasters5. Government Intervention Risk includes: Changes in Legislation, Possibility of spliting SIF operations (in Aldabra and Vallee de Mai)6. Human Resource Issues Risk includes: Loss of key staff, strikes, Fraud etc7. Relationship Management Issues Risk includes: Local Community problems, Damage in Reputation, Problems with suppliers, Problems with Tour Operators etc8. Market Shifts Risk includes: Drop in tourism in Seychelles etc
UWA Risk Responses
Appendix 7.3.1: Competition from other Countries
Heading
Content Description
Risk Description
Competition from Rwanda for Gorilla tourism
Link to Business Objectives
Reduced tourists for gorillas
Risk Owner (Focal Point)
Chief Warden (John Bosco Nuwe)
Current Risk Responses
Low permit price
Increased tourist numbers per habituated gorilla group from 6 to 8
Impact / Likelihood Rationale
Likelihood is high (4, could happen once a year in Bwindi or region) but impact is medium (3, cost of 600 million Shs).
Actions
Train tour guides for better service provision and interpretation
Monitor quality of services provided by tour companies and hoteliers in PAs
Improve gorilla surveillance and communication to ensure availability of gorillas for viewing
Redesign gorilla tracking trails to ease tracking activity
Improve transportation for trackers to convenient starting points
Provide before and after tracking leisure activities to tourists
Motivate efficient tour companies
Improve access (Roads) to the PA
Remarks
(Optional)
Appendix 7.3.2 Fire in Bwindi Forest
Heading
Content Description
Risk Description
FIRE
Seasonal wild fires
Human induced fires
Link to Business Objectives
Destruction of biodiversity
Loss of Revenue
Long-term cost to regenerate the infrastructure.
Risk Owner (Focal Point)
Edwin Kagoda (Monitoring and Research Warden)
Current Risk Responses
Fire lines in place.
Fire fighting
Impact / Likelihood Rationale
Likelihood high (4, could happen once per year) but impact Medium (3, cost of 600million Shs).
Actions
Response plan.(Time.Responsible person. Cost)
Training for staff and communities.
Maintenance of fire lines.
Equipment
Alternative tourist trails.
Remarks
(Optional)
Appendix 7.3.3: Disease outbreak (Human and livestock)
Heading
Content Description
Risk Description
An epidemic
Human induced
Domestic livestock induced
Link to Business Objectives
Increased expenditure
Reduced tourism activities
Possible Loss of some Gorillas
Negative park publicity
Risk Owner (Focal Point)
Dr. Etimnedi (Veterinary coordinator)
Current Risk Responses
Constant monitoring
Scrutinising tourists and other visitors for possible illnesses
Proper waste management
Regular Patrols to keep away domestic animals
Gorilla tracking rules/regulations in place
Impact / Likelihood Rationale
Likelihood low (2, could happen twice in five years in Uganda) but impact is high (4, cost of 1billion Shs).
Actions
Issuing guidelines on prevention of disease transmission
Community health sensitisation
Maintain enough drug supplies
Improve field and headquarter communication
Vaccination of domestic animals around PA
Remarks
(Optional)
Groups of Tourists tracking Gorillas has been increased from 6 to 8
Appendix 7.3.4: Encroachment
Heading
Content Description
Risk Description
Cultivation inside park boundaries
Illegal resource harvesting
Illegal grazing inside PA boundaries
Link to Business Objectives
Loss of Park estate and integrity
Depletion of park resources and revenue
Risk Owner (Focal Point)
Mr. Zabasaadda (Law Enforcement Warden)
Current Risk Responses
Patrols
Zoning the park to provide a community resource use zone
Executing MoUs with the communities
Established CPIs
Boundary re-opening
Impact / Likelihood Rationale
Likelihood is medium (3, could happen once a year in any PA in Uganda) but impact is also medium (3, cost of 600 million Shs).
Actions
Boundary demarcation and maintenance
Community sensitisation
Eviction and arrest of defaulters
Use CPIs in community awareness programmes
Remarks
(Optional)
Appendix 7.3.5: Poaching
Heading
Content Description
Risk Description
Hunting to kill for wild game meat
Hunting to kill and obtain souvenirs
Hunting to capture for pets
Hunting to capture for international trade
Link to Business Objectives
Reduced wildlife numbers
Migration of wildlife to neighbouring conservation areas
Poor collaboration between staff and communities
Reduced tourism activities
Reduced revenues from tourism
Risk Owner (Focal Point)
Mr. Zabasaadda (Law Enforcement Warden)
Current Risk Responses
Constant patrols in the forest
Community sensitisation
Revenue sharing scheme
Arresting and prosecution of poachers
Impact / Likelihood Rationale
Likelihood high (5, could happen twice a year in Bwindi) but impact is low (1, cost of less than 1 million Shs).
Actions
Research on wildlife meat markets and close them
Deploy community members as information gatherers
Revise, publicise and implement regulations on keeping wildlife animals as Pets, and also on wildlife souvenirs.
Provide economic incentives to potential poachers e.g. jobs
Remarks
(Optional)
Appendix 7.3.6: Migration of Gorillas for long period of time
Heading
Content Description
Risk Description
Crossing of gorilla groups to DRC and Rwanda for a long period e.g. in MGNP
Un availability of habituated gorilla groups for tourism
Link to Business Objectives
Considerable loss of revenue from gorilla tourism
Redundant staff
Closure of gorilla tracking activity
Cost of refunding already purchased tickets
Risk Owner (Focal Point)
Mr. Okoti M. (Warden Tourism)
Current Risk Responses
Monitoring Gorilla movements
Regional cooperation initiatives
Impact / Likelihood Rationale
Likelihood is low (1, could happen once in ten years in Uganda) but impact is high (4, cost of 1billion Shs).
Actions
Habituate more gorilla groups
Strengthen Regional cooperation
Promote other tourist attractions
Remarks
(Optional)
Two other groups of Gorillas have been ear marked for habituation
Appendix 7.3.7: High staff turnover
Heading
Content Description
Risk Description
Dismissal of staff
Staff resignations
Non renewal of staff contracts
Link to Business Objectives
Increased costs of retraining and induction
Stagnation of planned activities
Loss of Organisational credibility
Risk Owner (Focal Point)
Chief Warden (John Bosco Nuwe)
Current Risk Responses
Transferring staff to and from different sections and departments
Recruitment of new staff
Impact / Likelihood Rationale
Likelihood is medium (3, could happen once a year in any PA in Uganda) but impact is low (2, cost of 100 million Shs).
Actions
Counsel staff regularly
Hold regular meetings with staff to discuss HR issues
Build capacity of staff through training
Remarks
(Optional)
Appendix 7.3.8: Dangerous wild animals in PA
Heading
Content Description
Risk Description
Presence of man-eating wild animals
Link to Business Objectives
Reduced staff activity due to fears
Reduced numbers of visitors/tourists
Risk Owner (Focal Point)
Mr. Zabasaadda (Law Enforcement Warden)
Current Risk Responses
Constant monitoring and patrols
Impact / Likelihood Rationale
Likelihood is low (2, could happen twice in five years in Uganda) impact is also low (1, cost of less than 1 million Shs).
Actions
Information gathering for locations
Animal cropping operations to reduce their numbers
Provision of security
Redesign trails to avoid dangerous areas
Remarks
(Optional)
Appendix 7.3.9: Attacks of humans by Gorillas
Heading
Content Description
Risk Description
Ambushes with the intention to harm Staff and Tourists by un habituated gorillas
Link to Business Objectives
Reduced staff activity due to fears
Reduced numbers of visitors/tourists
Risk Owner (Focal Point)
Mr. Zabasaadda (Law Enforcement Warden)
Current Risk Responses
Provision of security by Rangers and UPDF (SWIFT force)
Impact / Likelihood Rationale
Likelihood is low (2, could happen twice in five years in Uganda) impact is also low (2, cost of 100 million Shs).
Actions
Identify the feeding range of un habituated gorillas and plan accordingly
Conduct research on behaviour response to such risk and disseminate the information
Leave not more than 2 un habituated groups depending on their use and their feeding range
Remarks
(Optional)
Appendix 7.3.10: Decrease of gorilla tourist numbers
Heading
Content Description
Risk Description
Numbers of tourists interested in gorillas reduce with time
Link to Business Objectives
Declining revenues from gorilla tourism
Reduced internal revenues for self sustainability
Dependency on donor funds to run activities
Risk Owner (Focal Point)
Chief Warden (John Bosco Nuwe)
Current Risk Responses
Increased marketing and publicity of PA
Impact / Likelihood Rationale
Likelihood is low (1, could happen once in ten years in Uganda) but impact is high (4, cost of 1 billion Shs).
Actions
Launch and promote other tourist activities/attractions
Promote local tourism
Intensify marketing activities
Remarks
(Optional)
Appendix 7.3.11: Theft
Heading
Content Description
Risk Description
Theft of customer and UWA properties
Link to Business Objectives
Loss of property and hence costs for replacement
Loss of credibility of the Organisation and its staff
Poor collaboration with the neighbouring communities
Reduced days of stay in PA by visitors
Risk Owner (Focal Point)
Mr. Zabasaadda (Law Enforcement Warden)
Current Risk Responses
Deployment of security staff
Establishment of Security gates
Impact / Likelihood Rationale
Likelihood is high (4, could happen once a year in Bwindi or region) but impact is low (1, cost of less than 1 million Shs).
Actions
Scrutiny of visitors and staff entering and leaving the Gate
Prohibition of entry of redundant members of the local community
Develop by-laws on security measures and ensure that hoteliers provide their own internal security.
Arrest and prosecute offenders in courts of law
Remarks
(Optional)
Appendix 7.3.12: Donor fatigue
Heading
Content Description
Risk Description
Loss of donor funding for UWA and BMCA
Link to Business Objectives
Scaled down planned activities
Risk Owner (Focal Point)
Executive Director (Moses Mapesa)
Current Risk Responses
Improvement of internal revenue generating activities
Recruitment of Marketing Manager
Controlling fraud
Managing recurrent expenditure
Impact / Likelihood Rationale
Likelihood is low (2, could happen twice in five years in Uganda) but impact is medium (3, cost of 600 million Shs).
Actions
Increase publicity and marketing for tourism potential in Uganda
Diversify tourism attractions
Start trust fund for UWA
Remarks
(Optional)
Appendix 7.3.13: Community sabotage
Heading
Content Description
Risk Description
Community uprising against PA staff
Link to Business Objectives
Implementation of activities slowed down
Spill over of effects to tourists
Risk Owner (Focal Point)
Mr. Benoni M. (Warden Community Conservation)
Current Risk Responses
Implementation of community related programmes e.g. Revenue sharing
Staff and community sensitisation for good public relations
Impact / Likelihood Rationale
Likelihood is low (2, could happen twice in five years in Uganda) impact is also low (2, cost of 100 million Shs).
Actions
Use and or involve Government structures to implement conservation programmes
Negotiate and also use 3rd parties as strategies and techniques to resolve conflicts
Negotiate for MOUs with communities
Carry out community sensitisation
Remarks
(Optional)
Appendix 7.3.14: Flooding and Landslides
Heading
Content Description
Risk Description
Occasional occurrence of floods and landslides in and around the PAs
Link to Business Objectives
Creation of ugly scenic views which distract tourists and conservationists
Biodiversity loss
Risk Owner (Focal Point)
Mr. Edwin Kagoda (Monitoring and Research Warden)
Current Risk Responses
Nil
Impact / Likelihood Rationale
Likelihood is medium (3, could happen once a year in any PA in Uganda) but impact is low (1, cost of less than 1million Shs).
Actions
Turn the sites into a tourist attraction by developing interesting tales/stories surrounding their creation
Re-vegetate the sites affected
Redesign trails away from those sites
Remarks
(Optional)
Appendix 7.3.15: Fraud
Heading
Content Description
Risk Description
Embezzlement of funds through several ways by staff
Link to Business Objectives
Lack of accountability (financial and activity)
Risk Owner (Focal Point)
Chief Warden (John Bosco Nuwe)
Current Risk Responses
Hiring of external auditors
Frequent field visits by Headquarter staff
Reports
Impact / Likelihood Rationale
Likelihood is high (5, could happen twice a year in Bwindi) but impact is low (2, cost of 100 million Shs).
Actions
Staff motivation
Arrest and prosecute Offenders in courts of law
Improve staff remuneration
Remarks
(Optional)
Appendix 7.3.16: Unsuitable infrastructure built next to PA
Heading
Content Description
Risk Description
Unplanned infrastructure around the PA by local communities
Link to Business Objectives
Visual abstraction
Impediment to theft control
Bad first impression received by new visitors to the PA
Risk Owner (Focal Point)
Chief Warden (John Bosco Nuwe)
Current Risk Responses
Nil
Impact / Likelihood Rationale
Likelihood is low (2, could happen twice in five years in Uganda) impact is also low (2, cost of 100 million Shs).
Draft Budget
SIF 3-YEAR BUDGET (SR)
2005200620062006200720072007
Current OperationsVDM ShopTotalCurrent OperationsVDM StoreTotal
SalesComments
Sales of Tickets in VDM4,000,0004,200,00004,200,0003,780,00003,780,000
Sales of Coco de Mer600,000630,000144,000774,000567,000151,200718,200
Sale of Merchandise25,00025,0001,367,5001,392,50025,0001,435,8751,460,875
Total Sales4,625,0004,855,0001,511,5006,366,5004,372,0001,587,0755,959,075
Cost of Goods Sold
Direct Cost of Coco de Mer268,000281,40030,000311,400253,26031,500284,760Including: Licence Fees, Transportation
Direct Cost of Merchandise10,50010,5001,159,7501,170,25010,5001,217,7381,228,238Including Cost of producing: T-Shirts, Books & Videos & Prints
Commission90,000000000* Including costs in Vallee de Mai
Total Variable COGS368,500291,9001,189,7501,481,650263,7601,249,2381,512,998
% of Total Sales7.97%6.01%78.71%23.27%6.03%78.71%25.39%
Fixed Cost of Goods & Services
Labor488,250512,6630512,663538,2960538,296* Including total personnel costs in Vallee de Mai and 30% of the time of the Logistics manager in Aldabra
Contributions8,4008,82008,8209,26109,261
Facility Expenses & materials78,00081,900081,90085,995085,995* Includes Vallee de Mai: office running costs, vehicle running costs, fuel, refuse, telephone, uniforms & other materials
Total Fixed Cost of Goods & Services574,650603,3830603,383633,5520633,552
% of Total Sales12.42%12.43%0.00%9.48%14.49%0.00%10.63%
Total Cost of Goods Sold943,150895,2831,189,7502,085,033897,3121,249,2382,146,549
Gross Profit3,681,8503,959,718321,7504,281,4683,474,688337,8383,812,526
% of Total Sales79.61%81.56%21.29%67.25%79.48%21.29%63.98%
Operating Expenses
Sales & Marketing
Advertising0000000* Cost Item to be updated in line with marketing strategy
Commissions20,00021,000021,00022,050022,050* Including Visa commissions for sales of tickets in Vallee de Mai
Entertainment7,0007,35007,3507,71807,718* Cost to be updated in line with new SIF loyalty schemes (tour operators)
Promotional material60,00063,000063,00066,150066,150* Including Vallee de Mai brochures,
Salaries97,020101,8710101,871106,9650106,965* Includes 40% of management time in selling and marketing activities
Contributions28,16029,568029,56831,046031,046
Traveling15,00015,750015,75016,538016,538
Total Sales & Marketing Costs227,180238,5390238,539250,4660250,466
% of Total Sales4.91%4.91%0.00%3.75%5.73%0.00%4.20%
Research & Conservation
Salaries1,000,0201,050,02101,050,0211,102,52201,102,522* Includes all Aldabra staff saleries & 40% of management time in research & conservation activities
Contributions257,250270,1130270,113283,6180283,618
Fuel112,000117,6000117,600123,4800123,480
Transportation260,000273,0000273,000286,6500286,650
Other Expenses140,000147,0000147,000154,3500154,350* Including: accomodation, repairs & maintenanvce, net telephone costs, research, other cost of sales etc
Special Projects140,000147,0000147,000154,3500154,350* Including the "Land Bird Project" and "Tortoise Project"
Stock loss - Food & Drink20,00021,000021,00022,050022,050
Total Research & Conservation Costs1,929,2702,025,73402,025,7342,127,02002,127,020
% of Total Sales41.71%41.72%0.00%31.82%48.65%0.00%35.69%
General & Administrative
Accounting & IT55,00057,750057,75060,638060,638
Admin Salaries246,960259,3080259,308272,2730272,273
Contributions136,500143,3250143,325150,4910150,491
Depreciation0000000
Equipment Rental0000000
Insurance113,000118,6500118,650124,5830124,583
Bank Fees10,00010,500010,50011,025011,025
Licenses and Permits5,0005,25005,2505,51305,513
Office Expenses81,00085,050085,05089,303089,303* Including: subscriptions, repair & maintenance, printing & stationery, sundries
Office Rental115,000120,7500120,750126,7880126,788
Telephone70,00073,500073,50077,175077,175
Utilities30,00031,500031,50033,075033,075
Donations30,00031,500031,50033,075033,075* Including School Trip to Aldabra
Other Expenses93,00097,650097,650102,5330102,533* Including: accomodatiion, fuel, vehicle running costs, AGM expenses etc
Total G & A Costs985,4601,034,73301,034,7331,086,47001,086,470
% of Total Sales21.31%21.31%0.00%16.25%24.85%0.00%18.23%
Total Operating Expenses3,141,9103,299,00603,299,0063,463,95603,463,956
% of Total Sales67.93%67.95%0.00%51.82%79.23%0.00%58.13%
Income From Operations539,940660,712321,750982,46210,733337,838348,570
% of Total Sales11.67%13.61%21.29%15.43%0.25%21.29%5.85%
Other Income
Grants / Donations150,000100,0000100,000100,0000100,000
Landing Fees220,000220,0000220,000220,0000220,000
Filming Fees14,00014,000014,00014,000014,000
Rents75,00075,000075,00075,000075,000* Including Kiosk Rental in Vallee de Mai
Interest Income28,00028,000028,00028,000028,000
Interest Expense00150,000150,0000150,000150,000
Total Other Income487,000437,000150,000587,000437,000150,000587,000
% of Total Sales10.53%9.00%0.00%9.22%10.00%0.00%9.85%
Income before Taxes1,026,9401,097,712471,7501,569,462447,733487,838935,570
Taxes on Income0000000
Net Income After Taxes1,026,9401,097,712471,7501,569,462447,733487,838935,570
% of Total Sales22.20%22.61%31.21%24.65%10.24%30.74%15.70%
assuming that VDM store will facilitate a 5% increase in the numer of visitors in site
assuming that VDM store will facilitate a 5% increase in the sale of coco de mer
caution: aldabra merchandise only - assume it remains stable
assume a cost increase in line with increase in sales
aldabra stock only. Cost remains the same in line with sales
No commision paid in 2006. SIF operates store by itself
All costs associated with the new VDM store (except interest paid) are under the Cost of Goods sold section (as they generate specific revenue). All other costs in VDM (warden, rengers, consumables etc) remain separate and we assume a moderate increase very year.
Only highly reliable grant is of 100k SR from the Seychelles Government and 50 k from the Royal Society. All other grants are highly periodical and therefore in order to be conservative we dont inlude them in the budget.
Interest paid to cover for loan (undertaken for VDM shop/visitors centre). We assume a loan of 1,500,000 SR that will cover all the initial costs associated with building a new shop in VDM (need to be confirmed in detail by SIF). Assume a 10% interest charge per annum
Assume a 10% decrease in the number of tourists in VDM due to upcoming competition from Fond Ferdinand
covered under ongoing VDM operations
Detail Information on Sales and Opex calculations for the store (VDM spreadsheet)
Additional sales of Coco de Mer through own VDM store (currently coco de mer) is sold in majority through SIF HQ in Mahe.We also assume extra supply wont be an issue (considering the newly acquired Fond Pepper estate
total sales of merchandise through VDM store. Including all items such as:t-shirts, food & snack, replicas, books etc
including 250 SR fee per coco de mer sold (to the Government). Estimated sales of cocos through site: 120 items
Caution: As direct cost of merchandise we include all costs related to the VDM store oparations (excluding sales of coco de Mer and interest paid). It includes: salary costs (for the 5 VDM store employees only), cost of merchandise, store maintenance, store overheads etc
Draft Operating Budget
BMCA 3-YEAR BUDGET
200620072008
TotalTotalTotal
SalesCommentsProjections Method
Gorilla Permit feesProportional to visitor numbers
Other park feesPark entrance, nature walks, birding etc.Proportional to visitor numbers
Concession incomeProportional to visitor numbers
Resale of ItemsT-shirts, publications, postcards etc.Proportional to visitor numbers + marketing effort
Total Sales000
Cost of Goods Sold
Cost of resale itemsIncluding: Cost of purchasing, transportationProportional to visit
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