Airline Marketing Plan

Executive Summary 1. 0 Executive Summary Puddle Jumpers Airlines, Inc. is a new consumer airline in its formative stages. It is being organized to take advantage of a specific gap in the short-haul domestic travel market. The gap exists in low cost service out of Anytown, U. S. A. The gap in the availability of low cost service in and out of the Anytown hub coupled with the demand for passenger travel on selected routes from Anytown indicates that a new entrant airline could be expected to capture a significant portion of current air travel business at that hub. The management of Puddle Jumpers is experienced in airline start-ups. Previously management grew Private Jet Airlines from a single Boeing 727 to a fleet of 16 MD80 series aircraft. Revenues grew to $130 million in a two year period from 1992 through 1993. Our research and projections indicate that air travel to and from Anytown is sufficient to provide a new carrier with revenues of $110 million dollars in its first full year of operations, utilizing six aircraft and selected short-haul routes. These sales figures are based upon load factors of only 55% in year one. Second year revenues are expected to exceed $216 million dollars with additional aircraft and expanded routes. Load factors for year two are 62%. The Puddle Jumpers plan has the potential for a more rapid ramp-up than was the case with Private Jet due to the nature of the routes and the demand for travel currently in the targeted markets served. In short, the frequency of flights needed to serve Puddle Jumperss target market exceeds the demand that dictated Private Jets growth. These sales levels will produce net profit of just over $1 million in the first operational year and $21. 4 million dollars in flight year two. Profits in year one will be 1% of sales and will improve to 10% of sales with the economies gained in year two. The over-all operational long term profit target will be 16% of sales as net profit in years three, four, and five. The companys long term plan is part of the due diligence package. The first operational year is actually fiscal year two in this plan. The first year of formative operations will burn cash until revenue can commence. This is due to the organizational and regulatory obligations of a new air carrier. Investment activity is needed to handle the expenses of this phase of the business. The following chart illustrates the over-all highlights of our business plan over the first three years. Gross Margin here is approximately 87% of sales since the only costs included in this calculation are travel agent commissions, credit card discounts, and federal excise taxes. Travel agent commissions are calculated on 30% of sales even though management feels the actual number will not exceed 10% of sales. NOTE: For display purposes in this sample plan, numerical values in tables and charts are shown in thousands (000s). Highlights 1. 1 Objectives The Company has the following objectives: 1. To obtain required D. O. T. and F. A. A. certifications on or before March 1, 1997. 2. To commence revenue service on or before July 1, 1997. 3. To raise sufficient seed and bridge capital in a timely fashion to financially enable these objectives. 4. To commence operations with two McDonnell-Douglas MD-80 series aircraft in month one, four by end of month four, and six by end of month six. 5. To add one aircraft per month during year two for a total of 18 at year two end. 1. 2 Mission Puddle Jumpers International Airlines, Inc. has a mission to provide safe, efficient, low-cost consumer air travel service. Our service will emphasize safety as its highest priority. We will operate the newest and best maintained aircraft available. We will never skimp on maintenance in any fashion whatsoever. We will strive to operate our flights on time. We will provide friendly and courteous no frill service. 1. 3 Keys to Success The keys to success are: Obtaining the required governmental approvals. Securing financing. Experienced management. (Already in place). Marketing; either dealing with channel problems and barriers to entry; or solving problems with major advertising and promotion budgets. Targeted market share must be achieved even amidst expected competition. Product quality. Always with safety foremost. Services delivered on time, costs controlled, marketing budgets managed. There is a temptation to fix on growth at the expense of profits. Also, rapid growth will be curtailed in order to keep maintenance standards both strict and measurable. Cost control. The over-all cost per ASM (available seat mile) is pegged at 7. 0 cents or less in 1996 dollars. This ASM factor places Puddle Jumpers in a grouping of the lowest four in the airline industry within the short-haul market. (US Air, the dominate carrier in the Anytown market, averages 12. 0 cents per ASM by comparison). The only three airlines with lower operating costs also operate older and less reliable equipment, and even then the lowest short-haul cost in the airline industry is currently Southwest at 6. 43 cents per ASM. Company Summary 2. 0 Company Summary Puddle Jumpers International Airlines is being formed in July, 1996 as a South State Corporation. Its offices will be in Anytown, Georgia. The founder of Puddle Jumpers is Kenneth D. Smith. Mr. Smith has extensive experience in consumer aviation. His bio as well as the backgrounds of all the members of Puddle Jumperss management team are enclosed herein. 2. 1 Company Ownership Puddle Jumpers International Airlines, Inc. will authorize 20,000,000 shares of common stock. 1,000,000 shares are to be set aside as founders stock to be divided among key management personnel. It is also expected that management stock options will be made available to key management personnel after operations commence. It is expected that founders stock plus option stock will not total more than 15% of authorized shares. Initial seed capital is to be attracted via a convertible debenture sold by Private Placement. This round of funding will have premium conversion privileges vs. later rounds and bridge capital.

Strategic HRM Essay Example | Topics and Well Written Essays - 3000 words - 1

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Guide to a Business Entry in China Assignment Example | Topics and Well Written Essays - 4250 words

Guide to a Business Entry in China - Assignment Example There are also other options available for Michael including an on line marketing, joint venture or wholly owned company. Whichever option Michael takes, the market is open for the cake industry. Michael’s Patisserie is a well-developed bakeshop in Australia and has a long experience in the business. The owner of the company is planning to expand the business to China. However, the company lacks the basic knowledge to guide the owner on the proper things to do for its entry to China. Moreover, the company needs additional resources to finance the export operations and is contemplating to apply for an export development grant from the government. The first thing to do is to assess the capability of the company to undertake foreign business. Generally, if a company is doing well in its own country, it can take a further step in foreign sales. The company must first learn the basic in exporting and should learn how the company can adapt to the international business environment. Upon having a basic understanding of the language of exporting, and you think that the company is ready, the next step is to develop a marketing strategy appropriate for the capital and structure of the business. An export strategy must be part of the business plan and everybody in the company should be aware of it. A well-developed export strategy identifies the export aims that match the capital resources required. It helps the company focus on the market identified and to respond to the quality service/product needed (Austrade) For example, the marketing strategy may begin with assessing why Michael’s Patissiere should export and what are the steps needed to achieve these goals. Now, you are about to be ready. The next thing is laying the groundwork by establishing the network of business contacts among export groups.

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11Chapter10 - Assignment Example Routine reports are supposed to be primed and submitted on issues required by the organization for the purpose of helping the organization management to take actions in the issues that are related to daily affairs of the business. The main aim of routine report is to make the management aware of the happenings within the organization, progress where there might be a deviation, and what kind of resolutions made in conjunction with solving the problem. There are few problems associated with routine reporting; one is that data collected and submitted within the organization is neither complete nor accurate for the purpose of tracking outcomes or process performance across the entire organization. Secondly, systematic evaluation of data may be hit with challenges as a result of inconsistencies (Meredith & Mantel, 2012). The main purpose of earned value measures the entire organization performance by use of an aggregate performance measure which is the earned value. The earned value of performed work for any task in progress is obtained by multiplying the estimated percent physical completion of task for each task by the planned cost for those particular tasks. The result should be the amount that may have been spent on the activity thus far; this can then be paralleled with the actual amount that has been spent (Meredith & Mantel, 2012). Having a summarized estimate of the percent completion of any project without keen study of every of its work and tasks units is not sensible in a

Research Paper Assignment Example | Topics and Well Written Essays - 1500 words - 2

Assignment - Research Paper Example A concluding portion would summarize points that were discussed and future thrusts for research on the subject. One of the most frequently researched topic focuses on leadership. The evolution of theories and concepts proposed and promulgated by various scholars and practitioners have undergone constant and continuous development until contemporary times. Aside from the traditional thrusts delving into leadership styles, characteristics or best practices in famous organizations, one of the controversial issues confounding leadership is the effect or influence of gender, among other demographic factors. Leadership concepts and contemporary theories evaluate the effect of gender in leadership in terms of according the benefits, prerogatives, and even challenges on equal terms. In this regard, the essay aims to proffer a review of related literature on the topic of gender in leadership. Relevant research studies on the subject would be analyzed where significant points would hereby be cited and highlighted to reveal diverse viewpoints on gender in leadership. According to the research study conducted by Gedney which is aimed to determine a relationship or link between gender and leadership effectiveness from her personal experience in the military, she initially provided crucial qualities identified from effective leaders. Her findings divulged that â€Å"leadership effectiveness is not gender-specific, but there seem to be many attributes that are found in both males and females that lend themselves to becoming an effective leader† (Gedney, 1999, p. 2). This fact was validated by Kelly, a Lieutenant Colonel of the U.S. Air Force, who averred that â€Å"men and women operate in the work environment in somewhat different ways based upon genetic/biological differences, cultivation, communication styles and to some extent, the characteristics of the particular career field chosen† (Kelly, 1997, p. 26). Since the

Abstraction Reaction Assignment Example | Topics and Well Written Essays - 250 words - 1

Abstraction Reaction - Assignment Example My expectation changed throughout the project because I gathered confidence as I progressed with the activity. Initially, I doubted I whether I could make a rational sketch without looking at the paper. However, I was surprised of the sketch that I produced after the project because the figure was excellent. Interestingly, I realized that I positioned some of the components of my subject accurately in my sketch. Abstract sketches promote creativity because they provide the artist with the opportunity of employing a diverse range of expressions. This is because abstract sketches should not necessarily represent reality. Moreover, abstract sketches are more personal because they provide a person with an approach of seeing more into a specific artist’s psyche (Cramer 28). I liked the experience after realizing a wonderful collage that I was able to make after the project. The project provided me with good experience that developed my skills. I was conscious about my original subject throughout my sketching activity. For example, I utilized information from my source material when designing an outline of my work. This included using the material in determining the size, and the appropriate color to apply at each section of my work. My expectations increased as I progressed with the project. This is because successful completion of each activity motivated me into working more on the piece in order to make it better. This because I realized I had the potential of producing a masterpiece as I progressed with the project. In abstract sketches, artists can describe all values and concepts that they have about the world in a single sketch. Furthermore, abstract sketches are visually powerful because they combine many aspects of art including color, texture, composition and

“Why College Education Is Important to Me” Essay Example for Free

â€Å"Why College Education Is Important to Me† Essay Each year, thousands of people throughout the United States go to college. Depending on individual’s ambition or needs, in predicate logic, various high School graduates go to college for different reasons, including just having fun. However a college education gives you more options and a better life. Why College education is important to me, Primary because if I go to college I will gain skills that I will use for the rest of my life, college education is a solid investment for my Future. I’ve always wanted to be a business man, because business degrees can Help you advance your career and secure positions that you cannot get with a DAVIS 2 High school diplomat. There are other important benefits to college education, such as an Informed citizenry, making better decisions, and appreciation of literature. Secondary, a college education gives opportunities to grow financially and Morally. A college education is absolutely necessary to me because it is the key to Success and has no age limits. Better education gives you the qualification to Better jobs and it gives you more self-confidence. Bobby Scott quoted â€Å"It is Virtually impossible to compete in today’s global economy without a college Degree.’ Knowledge is not innate, but it is learned and shared, Finally a college education is important to me more knowledge I Have more money I get. I have dreams like everybody else, I dream One day after I get married before me and my wife start a family, I would love to Visit some countries; to travel with my wife, I would love to see Paris one day, I DAVIS 3 Would love to visit Barcelona, Italy, Spain, Quebec, Macedonia, and I want to do Mission around the world but especially in Haiti, cause I always wanted to be able To help my people, and my family. But if I don’t have Enough money saved this will always be a dream. After I receive my college Education I will have better opportunities, better ways to earn more money, if I Have a great paycheck I will have a better saving, and I will be able to realize my Great dreams. If every year, Thousands of people throughout the United States go to college, I Want to be one of the thousands; college education is very important to Me because; if I go to college I will gain skills that I will use for the rest of my life, a College education gives opportunities to grow financially and morally, a College education is important to me because more knowledge I have more DAVIS 4 Money I get. This is why college education is important to me.