NSU Econsilium'21 Round One Solution by Team Hex45 || IBA JU

1. Econsilium Round 01 Solution

2. Executive Summary
Situational Overview of ‘Exploring Bangladesh’
EB is a Bangladeshi based tourism
company, offering only 3 Spots for
the tourists
Customers generally have to book
in advance due to High Demand
of the Service occasionally.
Even after having the seasonal high
demand, the revenue growth is
decreasing for last 4 years.
After gaining a better grasp of the
market environment and rivals,
EB's management is now exploring
for growth opportunities.
The declination is
occurring only for
EB
As the Marketing Assessors, we, the team of three is
assigned to do followings
1. Evaluating the Market Environment
2. Differentiating EB from its competitors
3. Suggesting Growth options for EB
Case Objective
**EB = Exploring Bangladesh
For the whole
Industry
But before that, we need to evaluate
Whether Or

3. Industry
Analysis
Bangladesh Tourism Revenue
grew 9.5 % YoY in Dec 2019
There was an increase of 2.6 %
YoY in 2018. Hence it grew even
more in the year of 2019
Tourism Revenue of Bangladesh
reached 391.0 USD mn in Dec 2019.
Issue Found Resolution to be Proposed
Before representing the proposition, followings are essentials to
complete:
PESTEL Analysis
Porter’s Five Force
Market Analysis
Company
Analysis
Average yearly revenue of USD 100
Million from 2018-2021
The revenue decreased 1.2% in
2018 from 2017 for the company
Continuous revenue growth
declination for last 4 years.
As the revenue of the company decreased, but the revenue of the Industry
didn’t (2018-19), we can tell, the core issue is not COVID-19 Disruption but -
Not focusing on Growth Options after a
thorough market study during those years
https://www.ceicdata.com/en/indicator/bangladesh/tourism-revenue-growth

4. PESTEL Analysis
Technological
The technological environment is improving by
the day, the government focusing here more
and more
Economical
The economy is growing and tourism is
contributing more each year
Environmental
The environment is mostly favorable, except for
the climate hazards faced by the country each
year. The country is also facing pollution, making
it difficult for tourists to find it difficult to travel
Legal
The legal environment is not friendly to the
tourism industry, much the legislations being
very outdated
Political
The political environment is unfavorable in
Bangladesh, however, there are some opportunities
here because of the recent focus on building
diplomatic relationships with neighboring
countries.
Social
The social environment is pretty unfavorable,
society still not fully embracing the concept of
traveling agencies

5. Porter’s Five Forces
2
1
3
5
4
Low, because not many travel agencies
currently operate in Bangladesh
Intensity of Competitive
Rivalry
Relatively low, because of the huge
upfront cost/need for connections
Threat of New Entrants
High, as people now are inclined to
plan their own tours through
information available on the internet
Threat of Substitutes
Low, as not many customers exist
Bargaining Power of Buyers
High, as most of the revenue earned is through
commissions earned from suppliers
Bargaining Power of Suppliers

6. Market Analysis
Travelers Types
Traveling with Friends
Traveling with Family
Office Tour
Preferences
90.6% of our surveyed travelers preferred travelling to a
new place instead of the place they went within last 5 years
**We conducted a survey that includes 43 outdoorsy travelers
67.44% of our surveyed travelers doesn’t prefer to
travel to the place they went last year.
Analysis Outcomes
Exploring Bangladesh should target travelers who
prefers traveling with Family and Office Members
EB should introduce new tourist spots so that
customers can have more options to choose from
Not Targeted Yet
by EB

7. Segmentation, Targeting & Positioning
Target Behavioral Psychographic Pain Point Positioning
Outdoorsy
Friend Group
Students,
Millennial
Travelers
More conscious for
the budget tour
Desires something trendy,
innovative but also has price
feasibility.
Not having a comfortable tour
package in short budget
Offering them Bundle Tour
Package, giving more spot-
options.
Family Tour/
Office Tour
Members of a
family (any age)
or Office
Has a mind set for
having a good
standard of traveling
Desires something nurturing &
smooth.
Premium pricing often puts
limitation of High quality offerings.
Introducing ‘Customizing YOUR
TOUR’ with the tagline ‘সাজিয়ে
নিি নিযির ভ্রমণ’
Price
Sensitive
Newly wed,
Working Class
Want the best quality
in their price range
Desires something convenient in
low price
Premium pricing for the travel
offerings
Offering them trave discount on
Off-season.
Age Demography
05-15 16-25 26-35 36-60 60+
Social Economic Class
Upper
Upper
Middle
Middle
Lower
Middle Lower
Hardcore *Split* Shifting
Brand Loyalty
Switchers
Geographic Segmentation
Urban Semi-Urban Rural
Off-season TG

8. Moving Ahead - The Growth Recomendations
EBO
Expansion Branding Operations
EB can improve on three broad fronts to see the growth.
Slogan: সাজিয়ে জিি জিযির ভ্রমণ
*Due to the tight Slide Limit, the recommended actions will be presented in a concise manner

9. Growth Recommendation A
Expansion
Directly expanding to new business environments and
offering new value propositions
Rationale
● Untapped demographic exists for EB
● EB’s supply of customers outstrip demand in peak periods
● An expanded company can arrange for more commissions
● Expansion into new value propositions can bring in customers
from the new niche
● Will help in building customer loyalty through new locations
*Due to the tight Slide Limit, the recommended actions will be presented in a concise manner

10. Growth Recommendation A
Recommended actions
1. Geographical expansion into international tourist hotspots
2. Expansion into more tourist spots locally
3. Customize your tour (সাজিয়ে জিি জিযির ভ্রমণ) — City Tour (All 64 district cities) + Tour
anywhere (Custom Pricing)
4. Expanding into new demographics through targeting new customer segments of
office tourists and family tourists.
5. New facilities to cope with increased demands during peak periods. Helps to capture
tourists who don’t plan months in advance. (Details in operations part)
6. B2B alliances that help the company earn more commissions and build partners who
can be rebranded for EB.
7. Expanding into tangible products (tissue, mineral water, t-shirts, caps etc.)
8. Expanding into the newly emerging cruise tourism sector in Bangladesh (Taking
advantage of agreements reached with Sri Lanka and the new service to St. Martin’s)
*Due to the tight Slide Limit, the recommended actions will be presented in a concise manner

11. Growth Recommendation B
Branding
Building a strong brand to be on top of the mind of the
target group and marketing the brand well
Rationale
● Tourism business is highly dependent on reputation
● A strong brand will help build a good reputation
● Good brand will help get loyal customers
● Having higher brand equity will enable higher potential revenue
● Marketing moves the demand curve up, increasing profits or customers.
*Due to the tight Slide Limit, the recommended actions will be presented in a concise manner

12. Growth Recommendation B
Recommended actions
1. Best case reviews - Ask for a review at a moment when there’s a better chance of a positive
review. (Reviews are very important for positive reception)
2. Introduce well planned brand elements: Slogans, branded products, uniformed staff, logo etc.
(Like our recommended slogan: সাজিয়ে জিি জিযির ভ্রমণ)
3. Promoting the brand elements, positive customer reviews, and the service in general through
newspapers, TVC, partner companies in addition to the existing marketing channels
4. Targeted remarketing to satisfied previous customers through new packages and exclusive
discounts.
5. Employee training to ensure consistency in service. Creating a service blueprint and
optimizing the point of contact with the customer for better impression.
6. Company needs to be more receptive to customer suggestions and complaints. Asking for
opinions and pain points.
7. More customization. “Unbundled services” - customers can pick whether they need cars,
guides, food, lifeguards etc.
*Due to the tight Slide Limit, the recommended actions will be presented in a concise manner

13. Growth Recommendation C
Operations
Changes and refinements in how EB operates that generate far reaching
consequences and achieve service quality excellence.
Rationale
● Sweeping changes in operations keep the company offering competitive
● The most important factor in restructuring the company is to restructure how
it operates
● Inefficiencies in operations bog down a company and decrease contribution
margin thereby decreasing profits even with revenue expansion
● Redefines the service to offer better value to customers.
*Due to the tight Slide Limit, the recommended actions will be presented in a concise manner

14. Growth Recommendation C
Recommended actions
1. Larger groups per tour guide to increase capacity in peak periods
2. Hiring temporary guides and temporary housing to meet demand
3. Add differential pricing so company earn more revenue in peak time
4. The company can attract people at non peak periods through discounts and marketing.
5. Rotating employees from non peak areas to areas experiencing peak demand
6. Internal marketing because employee attitudes directly transfer to service quality
7. Use technology - GPS for crowd avoidance, safety, coordination. Self service apps where they
can book their required services.
8. Dedicated security officer
9. Surprising customers — Added perks or treats that are not included in the fine print
10. Ensuring transparency for customers. Uncertainty reduces satisfaction.
*Due to the tight Slide Limit, the recommended actions will be presented in a concise manner

15. Areas Considerations Applicational Possibility
Technical The Technical Team EB should be capable to convert the
Recommended Actions into working system
Totally Existent
Operational The proposed actions increased the revenue and profit margin,
hence solves the declination issues
Existent
Economical Executing these course of actions will add positive economic
benefits to the organization
Existent
Scheduling Not exactly sure when the profit out of these executions will take
place
Uncertain
Legal The proposed project conform the legal requirements Existent
Feasibility Analysis

16. Monitoring and KPIs
Customer Survey and
reviews
B2B collaboration strength
Customer perception about the service
translates to success. Monitoring
aggregate reviews is key.
Number of B2B collaborations * perceived
strength of collaboration
Aggregate review at
4.8+ stars
Increased by 30%
KPIs Focus Points The Goal
Soft
Metrics
Employee Satisfaction
Satisfied employees satisfy customers
Likert scale survey throughout the
organization and improving results
Improving by 25%
Revenue
Number of repeat customers
The most important and generally most
counted hard metric
Measure of customer loyalty
Increasing by 5% per
year
Increase by 20%
Hard
Metrics
Contribution Margin More contribution margin equals more
profits with the same revenue
Increasing by 10% in
the first year