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Universal business school

Karjat

Program Name: Entrepreneurial Strategies

Professor Name: Prof. Bibhas Bhasumatray

Student Name: Rupesh A suradkar

Roll Number: 1356

Batch: MBA3

Date of Submission: 28th March, 2014

Assignment: Launching of a Adventure Park

“Electrify”

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Marketing plan

Product launch – Set up of “Adventure- cum outdoor sports Park on the

hills of Karjat”.

Brand : “Electrify”

Executive Summary and Opportunity Analysis

Electrify is a sports adventure point on the outskirts of hills in karjat. It is a place

where people from the city who does not get time from their busy schedule come

to get a taste of Adventure in the green hills of karjat. Karjat is a place surrounded

by many hills and also many water parks, amusement parks and resorts. In short it

is a booming tourist place with many well-known places like Matheran, lonavala,

nearby which provide peoples from Mumbai a cool and calm environment to live

with their families.

Many of the resorts, water parks and hills stations provide people from Mumbai,

Pune and nearby cities a great Adventure but they abstain from giving them the

original taste of adventure which means

They do not provide bungee jumping from mountains.

They do not provide Para gliding.

They also do not provide people camping sites in forests.

Some of the competitors do provide valley crossing but for a little distance

as 2500 meters but not more than that.

They do not provide sky diving.

In rainy season they do not provide 21 different waterfalls in same area.

They do not provide mountain climbing or trecking

“Electrify” is set to provide them the original taste of adventure in INDIA itself.

Many people go to foreign countries to feel real adventure and waste lots of

Dollars and pounds. “Electrify” itself have come to the rescue to provide them the

same adventure at cost effective price and that to in their home country. While

making a small city like karjat a tourist attraction.

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Situational analysis

Market size and future projections: The tourism industry of India is economically

important and grows rapidly. The World Travel & Tourism Council calculated that

tourism generated INR6.4 trillion or 6.6% of the nation's GDP in 2012. It

supported 39.5 million jobs, 7.7% of its total employment. The sector is predicted

to grow at an average annual rate of 7.9% from 2013 to 2023. This gives India the

third rank among countries with the fastest growing tourism industries over the

next decade. According to provisional statistics 6.29 million foreign tourists arrived

in India in 2011, an increase of 8.9% from 5.78 million in 2010. This ranks India

as the 38th country in the world in terms of foreign tourist arrivals. Domestic

tourist visits to all states and Union Territories numbered 1,036.35 million in 2012,

an increase of 16.5% from 2011.

At 25 years old, the amusement parks industry in India is nascent (it’s a 60-year-

old industry in the West). And yet, it is evolving and diversifying very rapidly.

Political and Legal:

Under the government act for Licensing & controlling places of Public

Amusement, 1980. The government allows to open any adventure or

amusement park provided with that the company provides

1. The poof of ownership of the land

2. NOC for the construction

3. NOC from forest department

Any person desirous to open an Amusement Park, by whatever name called,

on any site for the purpose of using it as a place of public amusement, or

converting or using any existing premises for the said purpose, shall first

give a application in writing with his intention to the Licensing Authority

specifying therein whether the application is for a permanent or temporary

place of public amusement (Amusement Park). The application on a plain

paper shall be accompanied by a blue print plan ( 4 copies) for the proposed

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site and shall be clearly indicated the surrounding roads and buildings which

exist up to a distance of 60 meters of the proposed site. Schools, hospitals or

places or worship, petrol pump and also the position of over head high

tension cables/electric lines shall also be clearly indicated in the plan.

The Licensing Authority may also consult the Officer Executive Engineer

concerned , in respect of the proposed site.

The Licensing Authority may also consult the Officer Executive Engineer

concerned , in respect of the proposed site.

Such person shall also make public, his intention by exhibiting a notice in

FORM –A( Annexure A) on a board on the proposed site in such a position

that it can be plainly seen from the public thoroughfare or public place upon

which such site abuts. The notice shall be in English and in Hindi as well as

in the language of the locality. The notice on the board shall be maintained

on the site until the matter is decided by the Licensing Authority. The board

shall be at least 120x90 cms. In size and the notice shall be exhibited thereon

in bold and clearly legible letters. The Licensing Authority may also consult

the Officer Executive Engineer concerned , in respect of the proposed site.

After thorough perusal the Licensing Authority may grant in Form C

(Annexure C) a certificate that there is no objection to the location of the

premises at the site notified by the applicant under Regulation The

discretion to dispense with the requirement of the No Objection Certificate

vests with the Licensing Authority.

No person shall put up any building or structure or convert any existing

structure for being used as a permanent premises except with the previous

permission in writing of the Licensing Authority.

Procedure for obtaining permission – Submit an Application form each such

application shall be accompanied by a true copy of the No Objection

certificate issued by the Licensing Authority.

The application shall be accompanied by a complete plans, elevations and

sections of the proposed premises drawn to scale. The cardinal points shall

be marked on such plans. The drawings shall be coloured to distinguish the

material to be employed in the construction of the buildings and erections.

The width of all staircases, , width of the doors the gangways , the doorways

together with the heights of any galleries , or tiers , details of electrical

installations etc shall be shown . Structural dimensions shall also be

submitted with the application .The plans shall show the respective number

of audience or spectators, all openings for ventilation etc. The plans shall be

prepared by an authorised architect or qualified engineer and shall bear a

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certificate under his signature to the effect that the designs are sound and

stable.These plans are then forwarded to the Executive Engineer concerned

for approval and the applicant is bound to carry out such alterations and

additions in the plans as may be directed by the Executive Engineer

concerned, before the plans are finally approved by him.The permission to

build shall finally be granted by the licensing authority and shall be valid for

a period of 2 years from the date of the permission or within such extended

time as may be granted by the Licensing authority

No modification in the plans or addition or alteration shall be done to the

premises except with the written permission of the Licensing authority in

consultation with the Executive Engineer concerned.

The Licensing Authority may refuse to grant license to operate a premises,

the building of which has not been constructed according to the approved

plans and specifications.

Obtaining Premises License for Amusement Park.

Application for the grant of Premises License, shall contain the following.

1. Statement as to the nature and extent of the interest of the applicant in the

Premises.

2. The name(s) of Manager(s) nominated by the Licensee.

3. The name(s) and addresses of the qualified electrician In charge of the

electrical installation.

4. True copy of NOCs mentioned above.

5. Report of Executive Engineer (Building) to the effect that the Premises is

sound and is in accordance with requirements under the provisions. He shall

also specify the number of seats and accommodation available.

6. NOC from Electrical Inspector to the effect that the Electrical installations

conform to the requirement of rules under the Electricity Act and specified

in Regulations.

7. NOC From Auto Engineer for joyrides.

8. NOC from the Municipal Health Officer to the effect that there is no

objection for Health point of view.

9. NOC from Fire Department for fire safety and safe escape point of view.

10. NOC from the Local Police for law & order point of view.

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11. NOC from the DCP/Traffic for traffic point of view.

12. Character and Antecedent verification of the Licensee/representative of the

Auditorium.

The Licensing Authority on receipt of documents and NOCs referred above, may

grant a Premises License to the applicant on such terms and conditions and subject

to such restrictions as the Licensing Authority may determine. The premises

Licence shall be in Form -"D" (Annexure D) subject to such additions and

alterations as may be deemed necessary by the Licensing Authority. The licensing

authority also reserves the right to refuse a license if the premises appears to it to

be likely to cause obstruction , inconvenience, risk , danger or damage to the

residents or passerby s in the vicinity of the premises.

DURATION: A license for premises of a permanent nature may be granted or

renewed for any period no exceeding the 31st day of December of the year for

which it is issued and a license for premises of temporary nature may be granted

for period not exceeding three months at a time.

Renewal.

An application for renewal of Premises License shall be made to the Licensing

Authority within one year after the date of expiry of the previous license and shall

be accompanied by the following documents.

1 NOC of Fire Department

2 N.O.C from Electrical Department

3 N.O.C from Health Department

4 N.O.C from Building Department.

5 NOC from Auto Engineer

The Licensing Authority on receipt of documents and NOCs referred above, may

renew the Premises License on Form 'D' on such terms and conditions and subject

to such restrictions as the Licensing Authority may determine.

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Economic : In India, the population and per capita income of individuals are

increasing. With rising urbanization, growing industrial and business development

and increasing standard of living in cities, the citizens are now ready to pay a

premium for Amusements all around.

The government is still trying to reduce entertainment tax from 15 % to 7.5 percent

Under the Bombay Entertainments Duty Act 1923. But currently the tax is 15 %

but adventure parks can enjoy full exemption from the tax till 3 years after that

from the date of commencement and only 50 per cent duty will be levied for the

subsequent two years. Full entertainment duty will be recovered from sixth year

onwards.

Social : With one of the fastest growing economies in the world, clocked at a

growth rate of 8.3% in 2010, INDIA is fast on its way to becoming a large and

globally important consumer economy. The indian middle class was estimated to

be 250 million people in 2007, by MCkinsey & company it will reach 600 millions

by 2030. The purchasing power parity will significantly increase from 4.7 to 6.1

percent of the world share by 2015. So here as the people are getting richer day by

day they will spend much more on entertaining themselves

Technological : As technology is increasing rapidly as well as internet so the

marketing and awareness about the services would be easily done. Internet and

telecom can be a major marketing platform as most of Indians are internet savvy

and like to surf on internet most of the time for some entertaining things. And get

information about the desire service through SMS or Calls.

1. The customer can make a reservations for their friend circles as well as

family

2. The customer can make a reservations for camping sites

3. The customers can make a reservations for the services available( bungee

jumping, valley crossing, para sailing, etc) through internet and calls or SMS

Competitive review

“Electrify” will be a service provide with a completely new adventure sports to

Mumbai it will generally operate in the hills of Karjat. Where the target customers

will be Mumbai, pune, satara and nearby places people. Exceptionally the most

people targeted will be youngsters college students and sport enthusiastic people.

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The other form of entertainment includes Esselworld, Adlabs imagica, Matheran

valley crossing

Table 1 : Strength and weakness of various entertainment segments

Strength Weakness

Esselworld Great amusement rides But stationery

Low accidents rates High prices

Adlabs

imagica

Theme based park

Big rides like nitro and

wrath of gods

Still not functioning properly

High accidents rates even after

being called as India’s first

international standard amusement

park

Matheran 2500 Ft valley crossing But not that much adventurous

Adlabs imagica is the most competitive in nature as they have 26 amusement rides

and 4 theme restaurants. Adlabs imagica and esselworld rules most of the

entertainment parks segments in Mumbai.

Table 2: Comparative Analysis of Different Adventure parks

Start Year 1987 2013 2000

No of rides 40 26 4

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Customers pain points

People are hungry for adventure and they can go to certain extent to meet their

needs. Generally people who are crazy for bungee jumping para gliding, camping,

Treking, sky diving etc and goes to foreign countries to fulfill their dreams which

indirectly affects their pockets. They spend lots of money on these adventures.

“Electrify” has been designed in a cost effective way to provide all adventure

sports available in the world to Indian customers at a cheaper price with

international standards for safety and precautions.

Table 3: Analyzing the industry using the Porter’s Five Force Model.

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Threats of new entrants : Will be basically moderate as there are currently

no adventure parks providing camping, valley crossing, bungee jumping,

para gliding, water falls in rainy season at the same time.

Bargaining power of Buyers : Will be low as the government have set

entertainment tax on this industry and the tickets rates will be with respect to

the tax slab allotted.

Threats of substitutes: will be Moderate as the “all under one roof”

adventure rides is a one of a kind concept and to imitate this the competitors

has to go through a lot of legal hurdles and also has many licences involved

with lot of money to maintain this type of adventure rides.

Bargaining power of supplier : Is moderate as the technology to maintain

this rides and to have train people to maintain this rides are not that high.

Degree of rivalry: Is very low as the concept is new as well as this types of

rides are not available in India. So there is no price war.

Segmentation, Targeting and Positioning

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Targeting : “Electrify” will target youngsters, Sports enthusiastic, camping people.

This segment is the most Crucial for “Electrify” as most of the above people have a

great taste of adventure.This people will be form various cities of India most of

them from Mumbai pune and nearby cities.

Todlers would not be a part of this segment as this rides are designed with context

to adults.

Positioning:

Comfortable

environment

Wide

Choice

Limited

Choice

Fast delivery

environment

Matheran

Esselworld

Adlabs

Imagica

Electrify

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Marketing Mix Strategy

Product Strategy : “ Electrify would be at a start level of its Services. There

will be a total of 6 Major adventure sport available and slowly will increase. These

will be 1-2 day Adventure with family friends and close ones.

Sky diving :

The passengers will be taken to a airport and where the people will be boarding a

plane and in the mid of air they Electrify would give you a opportunity to sky dive

in the skys of India. A trained sky diver will assist you in the process.

Treking:

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Once the passengers lands in the hills of karjat they will be guided by our trekking

guide to the hills of karjat.

Rock Climbing

Once the people will come to the footsteps of green hills in karjat. Our Rock

climbing guide will provide you the rock climbing equipments to climb hills of

karjat. And feel the fresh air of the forests and hills.

Valley crossing Or Paragliding

OR

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Once the peoples comes to the top of the hills they get a choice whether to valley

cross the mountains of paraglide from the top of the mountains. To the forest

below.

Camping

Once the people comes to the grounds of karjat they will have a special camping

provided with food and a bonfire and a tent to sleep and spend the night near the

Ulhas river.

Pricing chart

Adventure sports Price Full combo (Sky diving, Trekking,

Rock climbing, Valley crossing or

Paragliding and camping)

20,000 INR (4 persons)

Single person 6000 INR

Full combo (Sky diving, Trekking,

Rock climbing, Valley crossing or

Paragliding and camping)

12,000 INR (2 persons)

Sky diving only Or any other single

adventure sports(apart from

camping)

1500 INR

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Website: “Electrify will have a fully functional website to serve the

customers. They can book their Adventure camp prior comming. As

well as they can book the slot for future or else they can gift the package

to someone near to them online and also by telephone which will be 24/7

available.

Hierarachy Structure of “Electrify”

CEO

Managers Proffesional

trainers Accountants

Managing director

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Financial plan

PROJECT FINANCIALS

OPERATIONAL DATA

Growth Rates per year

Annual Increase in Visitors’ Entrance Fee 5%

Annual Increase in Vehicle Parking Fee. 5%

Annual Increase of Monthly Rentals 10%

Annual Increase in Visitors’ Entrance Fee. 5%

%Age Annual Increase in No. of Visitors. 13%

FIXED COST

The fixed cost is expected to be Rs 44.914 Million as described below.

Land 13,800

Building & Civil Works 8,586

Plant & Machinery 14,675

Tools, Equipment, Computers &

Telephones

331

Electric Installations 4,196

Vehicles, Furniture & Security System 758

Contingencies 571

Deferred & Pre-Operating Cost 1,427

Interest During Construction 570

Total Fixed Cost 44,914

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WORKING CAPITAL

The investment in the initial working capital is of Rs 100,000

OVERHEAD COSTS

In the first year following overhead cost are estimated.

Administration Expenses 354,400

Utility expenses 228,292 Traveling 124,000

Office Vehicle and running 102,800

Office stationary 14,800 Insurance expenses 186,491

Miscellaneous expenses 14,965 Total 1,025,748