Entrepreneurial firm Essay
The customer profile in the tourism sector is extremely wide and variable,but the size that we are going to attract is that the people who are well-educated and have high income level. In addition,these people are well-known and have a career in their professional lifes. We think that our company is going to attract the people who are in variable level of ages. But it is possible for the people who are especially in the middle ages or upper can meet the prices of our company. We pick the place where our hotel is going to be in Istanbul city.
Because,it is the city that attracts the most potential tourists who are domestic and foreign,has the most population density,has the most intensive potential customers that we think about to reach and also because of the surplus work areas,it is the place where has the most business traveler s come. It can be change that customers’ frequency according to variety of the hotel’s activities. Our aim is to provide permanent customer circulation and to increase the loyalty of our customers while we are making the special services for the customers.
The researces that we made,we compared the most useful trends for us. First
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We are planning to open a web site to make a great advertising of our hotel and to make reservations of the rooms or to sell our special services. Magazines are very popular for the people who are interested in trends. We are trying to make a trend,too. So we can advertise to magazines especially woman magazines,tourism magazines,vacation magazines,culturel and business magazines. Outdoor advertising is impotant for us,either. We can take a change to reach our customers one by one and face to face in fairs like natural stones fair or tourism and health fairs,etc… TV is one of the most effective communication tool for the companies.
It effects not only the visual and also auditory. Advertising about well-known people who stayed in our hotel is going to attract the people who are at the same stage and environment. We will be a member of Small Luxury Hotels of the World which is “an unsurpassed collection of over 480 hotels spanning more than 70 countries, which together offer an infinite variety of experiences tailored especially to you. It could be one of our classic city centre sanctuaries, a historic country retreat, an idyllic private island or a remote safari lodge deep in the heart of Africa.
Whatever your inclination, Small Luxury Hotels of the World(tm) is guaranteed to have that exclusive hotel with its own unique character and charm. ” MARKET SIZE The market size which we are trying to reach has a differentiation between the countries’ level of income. In the developed countries,the people interest in living healthy much more than the developing countries. Because of the country we live is a developing country,we just can reach the people who has high level income or foreign business travelers. We believe that the most interest we are going to take is going to come from foreign developed countries’people.
In tourism sector,there is a huge variety of goods and services. Becuse of the low level of goods cost prices ,it is easy to be enter or exit from the sector. These subjects fit for the small companies and the people who are not has an entrepreneurial characteristics. Although we are a small company,our company’s cost is very high. We want to take an advantage of market space making a difference of our rooms. Because of that subject,we haven’t got a competitor. We also are going to protect our quality for the other activities we are going to make in our hotel.
We are planning to develop our market size with our quality trying to find different financers. DISTRIBUTION STRATEGY Our advertising methods are a distribution channel that we can reach to our customers directly. Besides of that advertises,we also plan to reach our customers by travel agencies. Our goal is to reach %70 occupancy for an avarage sale. We can do some promotions like giving necklaces,key chains,etc for customers according to their rooms or providing SPA massages for their diseases. We can invite some astrology experts and bioenergy experts or orginize some seminars about personal developing and healthy life,etc.
We plan these activities to open also the other people who are not staying in our hotel. Gathering together the people who are interested in the gems and natural stones and the companies which are provides natural stones and gems in our Meeting Hall by using the sponsor firms. Attendance is going to be paid. Conferances can take 2-3 days and new trends can be discussed. Our customers who attend to these conferances and staying in our hotel can be rewarded with the free SPA massages. PRICING A service firm must establish a price which is based on materials that used to provide service,labor salaries and profit.
Price is a signal of product’s or service’s value to an individual. Customers see high prices that a show of quality,prestige and uniqueness. We believe that “People always want quality and also value. We are the only hotel in market and so that have no competitors. If we make prices low,they might think that we make the value and quality low. ” Our strategy to set prices is skimming price strategy. Because we are new in the market and introduce our product to an elite group. We determine our prices high than normal because start-up costs are too high ,in addtition that we have to make some profit on them.
It is possible to correct our prices mistakes with this strategy. On the other hand the technique of pricing decision that we use is cost-plus pricing. We establish prices of direct material,direct labor,factory overhead,selling and administrative costs plus desired profit. Our variable costs : labor,materials,factory overhead Our fixed costs : rent,salary,utility,insurance Our starting costs : equipment,decoration,starting inventory,deposits with public utility,legal and other Professional fees,advertising and promotion,cash for unexpected expenses,licenses and permits.