0 KAZAKHSTAN INSTITUTE OF MANAGEMENT, ECONOMICS AND STRATEGIC RESEARCH DEPARTMENT OF MANAGEMENT AND MARKETING MK3140 INTERMEDIATE MARKETING GROUP PROJECT COMPANY: DETA GROUP NOMADIC PARK Battalov Tarim ID 20082898 Kochetkova Yekaterina ID 20081452 Lapina Olga ID 20080296 Nenashev Kirill ID 20080169 Shuklin Dmitriy ID 20080062 Slivkin Nikolay ID 20081898 Smailova Alma ID 20083175 1 Outline EXECUTIVE SUMMARY .....................................................................................................................4 SWOT ANALYSIS................................................................................................................................5 Macroenvironment............................................................................................................................5 Economic factors ..........................................................................................................................5 Social-Cultural factors ...................................................................................................................5 Market Research ..............................................................................................................................6 Market Segmentation .......................................................................................................................7 Competition ......................................................................................................................................8 Direct competitors .........................................................................................................................8 Indirect competitors.......................................................................................................................9 Strengths, Weaknesses, Opportunities and Threats .........................................................................9 Strengths: .....................................................................................................................................9 Weaknesses: ................................................................................................................................9 Opportunities: .............................................................................................................................10 Threats: ......................................................................................................................................10 MARKETING OBJECTIVES ..............................................................................................................11 Strategic Thrust ..............................................................................................................................11 Strategic Objectives .......................................................................................................................11 CORE STRATEGY ............................................................................................................................13 Target Markets ...............................................................................................................................13 Competitive advantage ...................................................................................................................13 MARKETING MIX DECISIONS ..........................................................................................................15 Product – Service Offering .............................................................................................................15 Brand ..........................................................................................................................................15 Product/Service ..........................................................................................................................15 Promotion .......................................................................................................................................20 2 Place ..............................................................................................................................................21 People ............................................................................................................................................22 Physical Evidence ..........................................................................................................................22 Process ..........................................................................................................................................23 Price ...............................................................................................................................................24 ORGANIZATION, IMPLEMENTATION, AND CONTROL...................................................................25 Organization ...................................................................................................................................25 Implementation ...............................................................................................................................25 Management Control System .........................................................................................................26 CONCLUSION ...................................................................................................................................27 Appendices ........................................................................................................................................28 Appendix A Estimate of population income....................................................................................28 Appendix B Customers served by tourist firms ...............................................................................29 Appendix C Non-resident customers served by tourist firms ...........................................................30 Appendix D Quantity of the tourist firms .........................................................................................31 Appendix E Entertainment parks ....................................................................................................33 Appendix F Price List......................................................................................................................34 Appendix G Yurtas .........................................................................................................................35 Appendix H Marketing Budget ........................................................................................................36 Appendix I Leaflet Samples ............................................................................................................38 Appendix J Web Site Home Page ..................................................................................................40 Appendix K Questionnaire samples ................................................................................................41 Appendix L Focus group transcript (partial) ....................................................................................43 3 EXECUTIVE SUMMARY Executive Summary The Purpose of This Marketing Plan This marketing plan is designed by group of KIMEP students for DETA company. The main purpose of this plan is to help DETA to identify and develop a new segment of business in entertainment industry. Market Analysis Increasing attention from foreigners to Kazakhstan along with governmental efforts to restore traditional Kazakh historical legacy and economic stabilization within the country allow DETA to launch such as ambitious project as you are about to read. The project is specially designed for two categories of customers, the middle class families and foreigners visiting Kazakhstan. About Company DETA Company is a small service company operating two businesses in tourist and cargo industries. Currently its main business is airline transportation which occupies around 80% of its overall operations. By launching the Nomadic Park project DETA will expand its tourist business by offering its clients a great change to get familiar with nomadic culture and traditions. DETA will satisfy the current need for ethnic entertainments and currently no such offering exists on the market. Marketing Activities The Nomadic Park will offer the greatest opportunities to potential DETA’s clients to discover nomadic culture by full immersion in nomadic atmosphere. Client will get an opportunity to live in real yurtas, eat traditional Kazakh food and engage in various activities that will introduce them to nomadic way of living. Comfortable and fair prices for clients based on incurred costs are applied in “all inclusive” option for those who want fully devote themselves to the recreation. Clients are put in the center of Nomadic Park’s strategy as well as quality of the services and products it offers. The park is a very unique and located near Almaty – the biggest financial and cultural center of Kazakhstan. The modern web-technologies make it easier and efficient to get information about the park via the Internet. Its web-site is well organized and designed for quick and suitable use. Its promotional mix is especially designed to reach as much as possible people in a very effective and affordable way for the company. Park helps develop the idea of positioning Kazakhstan as a tourist destination around the globe. 4 SWOT ANALYSIS Macroenvironment Analyzing the company’s macro-environment we discovered such current condition in which company operates: Economic factors o Steady growth of income per capita for the period from 2003 to 2010, with a capital aggregate growth rate of 295%. At the same the depth and sharpness indexes of poverty drop, too (from 2.3 and 0.7 in 2003 to 0.4 and in 2009, respectively). This two observations show that not only nominal income has raised also the overall percentage of middle class increased. This excess wealth results in a higher consumption of superior goods. Income per capita, in KZT 59370 58214 51703 0.1 38190 2003 29347 24235 20123 2004 2005 2006 time but 2007 2008 2009 Pic.1, source: www.stat.kz Number of customers served by touristic agencies, persons 261,377 250,938 150,913 101,332 100,205 2003 2004 2005 2006 2007 2008 2009 Pic.2, source: www.stat.kz o o Number of customers served in tourist agencies was increasing till 2007 from 100 205 to 250 938, but from 2007, to 2009 this figure has dropped to the level 100 467 of 2003.That could be reasoned, by the fact that each year more and more people make they trip without the help of tourist agencies, by using on-line booking 2010 facilities. Also, with the rise of income, more people acquired own vehicles, and now prefer to make their trips by their own means. 212,663 168 165 Concerning the foreigners, whose trend is just same-steady increase from 2003 with picks in 2006 and 2007, and down sloping, from 2007, now. High number of tourists in 2006 and 2007 could be explained as the effect of Borat broadcast in European countries and North America, which increased the interest to our country abroad. the Number of foreign customers served by tourist firms, pesons 52,718 till 53,017 35,062 28,746 27 743 24,281 15 505 2004 2005 2006 2007 2008 2009 Pic. 3, source: www.stat.kz 2010 Statistical information is available in the Appendices A-E Social-Cultural factors o From the moment of Independence, trend of renaissance of national culture, customs and language has gone upward. Government tries to support, by all means, any activity directed to that development. Since the millennium, Kazakh language and literature entered Top 5 important disciplines in Kazakhstan middle school; TV channels are obliged to broadcast 5 programs and cinema on Kazakhs language at least 50% of show time. All this shows high propaganda of language and customs among domestic population, giving the way for the culture-oriented business Market Research Our team has developed two questionnaire surveys aimed at foreigners and local citizens separately. Results are displayed below Most foreign people interweaved belonged to three age gaps: 18-30, 30-40, 40-50. Those who are below 30 are mostly exchange students from Korea, USA, France and Spain studying in KIMEP and other universities. People over 30 are staying in Kazakhstan for business purposes. Some foreign comers admit they preferred doing work and study in Kazakhstan because they could have some pleasant experience simultaneously. We will describe youngsters and adults separately. Foreign Youngsters. 16 people were interviewed. 10 males and 6 females. All came for period equal or more than 6 months. All of them live in dormitory or rented flats in a company of 2-5 persons. Majority of young foreigners are Bachelor or master students. Most foreign students don’t work thus possess a lot of free time (up to 30 hours per week). Most popular places of interest in Almaty for them are: coffee houses (Gloria Jean’s, Coffeemania, Segafredo, Maroon Rosso), night clubs (Copacabana, Gogol’, Da Vinci) and others. They also like doing extreme sport in Almaty, due to high availability and relatively low cost. Fine art sometimes is not suitable for foreign youngsters, due to lack of language knowledge. Generally, service is market as moderate or lower, however, young students don’t put much attention on it. Among places desired to visit, are – Charyn Caniyon, Big Almaty Lake and Turgen’. Traditional culture of Kazakh people is not very attractive for this group of survey. Concerning the traditional Kazakh cuisine, people reported it to be very different from what they are used to, too fatty and sometimes contradicting to their principles (e.g. eating horse meat). Regarding transportation means. This group reported preference to taxi services, and few said they used public transport. Young foreigners appeared to be active and open to any new experience, both luxury and exotic. Foreign Adults. 25 were interviewed. 20 females to 5 males. 28% are staying in Kazakhstan for period of 3 month to 1 year. This is linked to their consultancy business; others are developing long-term business relation in Kazakhstan (setting their own or merging with existing local partners). All live in rented flats, mostly in the center of the city or close to office. From the questionnaires we found a tendency from this group to high self-organizational skills which results in much free time left. 18/25 speak Russian well enough to visit places of fine arts. Among natural sights, most wanted to visit are Charyn, Turgen’ and Kulsay Lakes. Awareness of these places at foreigners comes from Word of Mouth. They also marked that distance factor plays an important role. Surprisingly, foreign comer market quality of Kazakhstan service as normal and better. Adult foreigners are more conservative about food preferences than youngsters are. 80% do eat Kazakh food during their stay in Almaty, but not very often – once or twice in a month. Transportation: two respondents from Netherlands use bicycles as a mean of transportation, other 23 commit their travelling by feet or taxi. After following conversation our team revealed that foreign adults don’t put acquaintance with Kazakh culture as a premium aim to coming to Kazakhstan. Still, they are never against cultural places if trip is well organized. A team has interviewed people of all mentioned age gaps: 20-30, 30-40, 40-50, above 50. Total number of respondents is a sample of 30 people. After questionnaires were completed and follow-up conversations held, we classified initial data so that it brings more value. Below are outcomes of survey of single youngsters below 30 who have no children. Results of investigation show that the lifetime from 20 to 35 is characterized as a most active period, merely 80% reported both studying and working, so they have very little free time. The rest 6 20% have much more free time due to the fact that they have graduated. Two subgroups gave different answers regarding their leisure. First group (busier) rarely has active rest. Second group prefers active recreation. Vehicle usage and distribution corresponds to personal income: 30% have own car, 20% use taxi services, 10% travel on foot, rests use public transport. Interviewed people reported different demand of comfort: very few (7%) said it is very important, 10% don’t care about comfort at all, because first concern for them is cost, the rest estimate a need of comfort adequately. All of interviewed youngsters said they would like to have more outdoor recreation, irrespectively to how much they do at present. 32% experience transportation problems when go outside and use services of tourist bus. 43% of young KZ citizens prefer organizing picnics, thus they mark comfort level demand as low. 45% of respondents like feeling a touch with nature only in combination of minimal or normal living conditions. 12% of participants showed high concern about the comfort Culture of Nomadic tribes captivated 67% of respondents, yet primary as entertainment. One more outcome of the survey is that there is no sex dominance in any answers of stated questions Local adults, with children, aged above 40: 12 respondents involved 8 females and 4 males. 4 of them have 3 kids, 5 have 2, 3 have only 1 at present. Representatives of survey group prefer to disclose family income rather than personal. 70% stated income between 250 000-400 000 KZT, 8 % own monthly income over 700 000 KZT, 12% reported family income as 100 000 – 250 000 KZT per month, rest 10 % earn less than 100 000 KZT. Questionnaire answers and follow-up conversations showed that adult Kazakhstan citizens have free tome available different without respect to income, number of kids or age. Among respondents there are 64% who like having active leisure and regularly spend their weekends outdoor, 6 respondents admire winter sports. Those who reported low level of active leisure write it off to high busy condition. Still these people don’t deny they would like to go out more with their kids and elder relatives. 10 reported having own car, other two admitted impossibility to reach some desired places due to absence of own transport. Representatives of Kazakh nationality were very enthusiastic speaking about reviving a cultural roots and spirit at children and youth. This resulted into high interest of holding family celebrations in national style Focus group survey analysis: our team has conducted a focus group survey among foreigners aged 30 doing their in Almaty. Discussion with invited guests resulted in generating following ideas for our product, First, members proposed creating events specially organized fro corporate meetings which in turn creates separate target group. Further discussion brought an understanding of necessity of transport solution. Also, they suggested that menu should be differentiated to satisfy needs different tastes. Another proposal was to set up both yurtas and traditional Euro accommodation. Regarding entertainment, participants of survey expressed interest to thematic fair and craft master classes. All of these innovative ideas are reflected later in respective sections of our marketing plan. Samples of questionnaires and partial focus group transcript are submitted in Appendices K, L Market Segmentation After studying the whole tourist market we decided to divide it by six different parameters: 1. Country of origin (geographic). Although the majority of the market is Kazakhstani citizens, foreigners contribute quite big share to the tourist market. 2. Social groups. In this aspect of market we can differentiate 3 community groups: family, friends, and colleagues. 3. Family status. The determining factor here is the presence of children. According to Kotler, children have a great influence on the family choice of what to buy or where to take vacations (p. 138, Principles of marketing, 2008). 4. Income. As long as the personal economic situation is very influencing on purchasing decision. Here we have three classes: with high, middle, and low income. 5. Lifestyle. Under the lifestyle we mean preferences to the particular type of rest – active or passive. 7 6. Age. The personality and preferences are changing over the time, and the stage of the life can be an important factor in predicting the attitude of the client toward our product. Age groups: children (under12), teenagers (13 - 18), young people (19- 30), adults and family people (3055), mature people (over 56). Table 1 Market segmentation Country of origin (Geographic) Citizens Foreigners Social group Family Friends Colleagues Family status With children Without children Income Lifestyle High Middle Low Active Passive Age Adult children (<12) Teenagers (13 - 18) Youth (19-30) Adults and family people (30-55) Mature people (> 56) Competition According to the Strategy “Kazakhstan-2030” tourism is one of the most priority directions of the development of state economy. Therefore, state tries to support all activities connected with it. The competition in the tourism sphere becomes harsher with every year. The number of touristic firms and entertainment businesses was continuously increasing at least for the last seven years. According to the Statistics Agency of the Republic of Kazakhstan (www.stat.kz) there were 713 tourist firms, in 2007 the number has exceeded 1000, and by the end of June 2010 1247 firms operate in this sphere. However, the number of customers served by tourist firms has inverse relationship. This indicates that our company has severe risk of losing its market share. The number of different parks also has risen but not so fast. If in 2003 we had 41 parks, in 2008 this amount has doubled and become 88. From all this facts we found that the increasing competition is one of our main threats today. Then, we analyzed our competitors from the market point of view. According to Kotler, our competitors are all “companies that are trying to satisfy the Number of parks same customer needs or build relationships with the same customer group” (Principles of marketing, Kotler, 2008, p. 517) Direct competitors 66 63 53 50 Direct competitors, competitors, who compete with us for the same market share: 2003 o o o o o Tabagan – ski-resort, high range of facilities, operating 12 month in a year. It offers similar services for same price. Chimbulak – ski-resort, very popular among citizens and foreigners, provides world class infrastructure. Kapchagai resorts – favourite place for rest on summer weekends. Operated at same time as we do. Has diversified price range. Week-end tours – high range of destinations, could be very interesting and exciting. Quite developed sphere. Amusement park – entertainment park, nice place 8 42 41 2004 2005 2006 2007 2008 Pic. 4, source: www.stat.kz Number of tourist firms 494 500 551 553 587 639 690 2003 2004 2005 2006 2007 2008 2009 2010 Pic. 5, source: www.stat.kz 707 o o o o to have family rest, attractive for children, not much expensive Koktobe – most popular site sign and symbol of a city, provide different services, among which are museums, zoo, restaurants, funicular, and souvenir shops. All restaurants along the Navoi Avenue. Wide variety of national cuisines. Yurta facilities. Landscape advantage and pleasant view. Tau Dastarkhan – restaurant and spa complex. Offers cuisine of many East and West nations with an option to have a rest in spa-centre. Individual entrepreneurs – private households, offering Yurtas on the nature. Indirect competitors Indirect competitors, any activity, which is an adequate alternative to our offerings: o o o o o National state museum – can give vision about nomadic culture and provide visitors with appropriate information. The main advantage is very cheap price. All other national museums (Museum of musical instruments, etc) also could be indirect competitors. Arbat – one of the site signs of Almaty, very popular among different demographical groups. Provide souvenirs, arts, place of events, Medeo – High-mounting skating facility, most popular among foreigners. Entertainment-shopping malls – trade-complexes, offering services other than simple shopping. Includes cinema, skating rinks, etc., could be popular among family guys, as well as singles. All agencies that offer separate services (fishing, horse-riding, camping, etc) Strengths, Weaknesses, Opportunities and Threats Strengths: Weaknesses: Diversification: reduces the risk of general losses, allowing Deta to be confident in its actions. The company is managing its activities in four distinct spheres, which are air freight transportation, air ticket brokerage, cargo and tourist agency. Circa, in all of those spheres company achieved enough market shares to maintain its current market competitive position, as a market follower. Networks: as an adequate consequence of diversification, company possesses wide network, which is extremely helpful, particularly in Kazakhstan Assets: main assets of a company include several owned aircrafts; professional personnel in each division. Competitive position: appropriate competitive identification for Deta is “Market follower” because it has very low market share, doesn’t try to beat the leaders, and is not a nicher, however. No competitive advantage: Deta doesn’t offer anything unique to customers, or different from what competitors offer; all of its activities are easy to copy and even improve Brand: though, the company has high loyalty, still number of customer is small; brand recognition among population is low, if any. Competitive position: Being a market follower restricts company’s ability to expand the market share and develop Customers: According to company’s statistics, 9 almost all Deta customers show absolute loyalty, and, moreover, their number is steadily growing with the help of Word of Mouth existing products. Expertise: large amounts of air freight contracts result in company’s efficiency of scale, allowing to decrease average total cost and price, while leaving the markup constant Capacity to launch new product: company has enough resources to develop and launch new product Opportunities: Threats: Incoming tourism: increased popularity of Kazakhstan among foreigners allows developing new offer for them, since they can provide robustness of demand. Touristic boom is expected, especially, due to Asian Winter Games in 2011. Government regulations: Companies are obliged to have their touristic or any other activities licensed, which may become problematic with the Kazakhstan bureaucracy Economical stabilization: gradual escape from financial crisis results in increased population wealth and, consequently, consumption. Also, this is another source of incoming foreigners, who become the customers of Country market, despite they, originally, came with business purposes. Culture restoration: During the last 10 years, there is a high tendency among autochthonous nation of Kazakhstan – Kazakhs to revive national culture: mother tongue, customs, arts, etc. Also, government is interest in that development and subsidizes any activity in it. Customer tastes: wide variety of customer tastes and wants and large population may allow becoming a very profitable in any niche market which company chooses 10 Climate: generally, all activities of Deta depend on climate and weather conditions, either directly or indirectly, thus volatile weather of Kazakhstan is almost crucial factor of company’s operations Demand uncertainty: high tendency population to prefer activities other than tourism is definitely the main threat of on industry as a whole. Particularly domestic population shows low willingness to visit nature due to habitualness of the landscape Competitors: besides advantages of escaping financial crisis, it has some threats, since competitors also have ability to grow their business MARKETING OBJECTIVES Strategic Thrust When we were deciding what type of product for which market we should develop, we had several options: 1. 2. 3. 4. Market penetration or expansion: existing product – existing market. Product development: new related product – existing market Market development: existing product – new market. Diversification: new product – new market While working with the company, we found that the strategic goal of our company is to expand themselves to begin to work with the local products for a local market. The majority of company’s activities are directed to the import of tourist services, not to the export and internal ones. While we were identifying a portfolio planning tool for company growth we understand that there is a serious lack of entertainments with national and cultural coloring. However, strong demand for them exists. As long as our current products are well developed and profitable, and don’t need further expansion, our choice is a new product. But, for what kind of markets can we aim on? One of the Deta’s strengths is very loyal clientele, so we decide to emphasize them first of all. The highest percentage of our clients are business tourists who goes abroad for business purposes, the same clients, return to us, because of our high quality of services and the reasonable prices, to buy private tours. We can describe our typical client as a man/woman: 30-50-years-old Of middle class With high education With family and children With car and house With good carrier, or having own business Frequently visits foreign countries However, number of our current clients, cannot be considered as satisfactory in order to build enough sales and strong market share. Consequently, here appears a clear need of the entry on the new and related markets. Our firm is not foreigner-oriented, at whole, but the number of foreigners interested in entertainments mentioned above is quite high. So, the first new target markets are tourists from abroad visiting Kazakhstan. One more probable dimension of our expansion is corporate clients who would use our product for corporative, teambuilding and celebrating events. Our target markets would be described in details in respective section. So, we came to the conclusion that our strategic thrust is – diversification. Strategic Objectives The strategic objective of our new product is to build sales and market share. To be concrete we put five strategic aims of different time-ranges and spheres to be reached. 11 1. To be equally known and perceived as resort “Tabagan” in a 3 years of operations. 2. Have an average customer satisfaction level not less than “good” beginning from the first year of operation. 3. To have a pay-back period not longer than five years. 4. Continuously increase our profit margin ( increase revenues and reduce costs) 5. To be nominated for the one of consumer-preference awards. Reaching each of these aims is not an easy task; however, if our company initiates, improves and controls their activities being guided by these strategic objectives, the process of implementation will be more specialized and be leading to further development and success of our product. 12 CORE STRATEGY Target Markets By the combining different demographic parameters described in the section “Market segmentation” we got many different groups to aim. As we mentioned in the section “Strategic thrust” finally our company chose to gain new and related markets. The first one is related to our existing clientele – middle-class family with children. We can attract this segment of customers by the offering a good time outdoors in a place with special atmosphere of nomadic culture for a family as a whole and for each member of the family, depending on their interest and aims. There will be events which are interesting for every member of the family in order to spend time together. Also especially for family with small children we will provide such services as babysitting and activities in children playrooms which will allow their parents to amuse themselves instead of being worried and anxious. A new market for us is foreigners. For them our product will introduce historical atmosphere and culture of tribes lived in central Asia. It will be an interesting way of perceiving knowledge and experience of nomadic culture by recreation of historical events in a form of a performance. The opportunity of spending time usefully and pleasantly is a very good point to attract the tourists from abroad to try our product. Thirdly, our product would extremely attractive for active young people. It is an ideal place for a group of young people to spend time together, to have fun, to try active entertainments, e.g., falcon hunting, bow shooting, horse riding. Table 2 Needs and corresponding features/benefits Targeted segment Customer need Foreigners Discover the new culture Spend pleasantly free time Spend time together Satisfy personal needs of each member Many different activities for each family member To have fun and try active entertainments Falcon hunting, bow shooting, horse riding Middle class family (with children) Active young people Corresponding feature/benefit Very educative resort with good infrastructure Competitive advantage The competitive advantage is the distinctive feature which allows our firm to be recognized among all other similar competitors. The possible alternatives of the competitive advantage are being faster at anticipating and responding to customer needs, being closer by establishing close long-term relationship with customers or being better by offering superior quality of a product. The last one became our choice. We are going to be perceived by clients as a high-quality resort where they can have the best weekends. Our competitive advantage is that we offer a full pack of services of superior quality for our clients. 13 As long as we position ourselves as a product with national and cultural colouring, the best competitive strategy for us is differentiation. We tend to be the class leader among the entertainment businesses with such colouring. In order to create a highly differentiated product we are going to stress such features of our product as high quality, uniqueness, culture-oriented and educative activities. We value highly our customers and their loyalty to us, so we want to gain their loyalty through the product with attractive characteristics, timely but not officious services, kind personnel, and unforgettable experience of the ancient nomadic atmosphere. To be precise we sketch the positioning mind map of our clients. High price Chimbulak Tabagan Koktobe Nomadic Park Restaurants Kapchagai Low quality Individual entrepreneurs Weekend tours Amusement parks Low price 14 Tau spa High quality MARKETING MIX DECISIONS We identified three target markets for our park. They are Visiting Foreigners, Local Families and Corporate Clients. For these categories of customers we have developed the following marketing mix consisting of different services and products along with powerful promotion and affordable prices. We locate our park in a very convenient and beautiful place and design a very efficient processes and procedures that maximize customers’ value. Our staff is well trained and organized to deliver the highest possible service in Kazakhstan. Finally our clients can take a piece of memory with them buying various souvenirs and gifts. Product – Service Offering Brand Our product is Nomadic Park – Where History Revives. This name fully exposes our idea of telling the world about nomadic culture, traditions and our way of living. Nomad is the most broadly used term to describe independent peoples (tribes) who were inhabiting this part of the world and were not settled to the ground. It bears the idea of freedom, diversity, and cheerfulness. The word “park”, however, states that this is an enclosed area which is created by people where our clients can fell relaxed and secured. We believe that this name is the best choice for our park, because it helps us to communicate our idea in the most direct way through the name of our project. We have chosen the motto that helps communicate this idea more deeply. We do not want to tell our customers about our modern life which is almost the same as life of other people in many other countries. We want to tell our customers about the life of our ancestors, about their traditions and customs. And using this motto helps us to communicate the historical legacy of our people to the customers. For our logo we have chosen the image of yurta – the most recognized symbol of nomads – that is one of the main features of our park as well. This symbol constitutes our brand making it more recognizable and even clearer. Thus using such brand we want our clients to clearly understand what they may anticipate making their choice to visit our park. Also this brand is directly related to what we want to deliver to the customers and what we want to achieve when working on this project. Product/Service The Nomadic Park is not just a place to hang around. This is the complex of different products and services that work as a whole in order to deliver as much value as possible to our customers. Thus, we have developed five categories of products and services that are offered to our customers. They are: Yurta-hotel category Restaurants and Snack bars category Entertainment category Fair category Camping category 15 Yurta-hotel We assume very intensive and interesting activities for our customers. In order to try and participate in various cultural activities and performances we expect our customers to stay at least 3-4 days in our park. To do so we need a very comfortable place for them to sleep and relax. Yourtas satisfy this need in many perspectives. First of all yurta is the nomadic movable house that was used for many years by our ancestors. Hence, it is a part of historical/cultural offering that we want to deliver to our customers. Living in yurtas helps to create necessary atmosphere for our customers. They can discover how our ancestors were living in these things and how their everyday life was organized. We also use some traditional furniture and tableware of nomads to accomplish a full immersion in nomadic life. On the other hand, a modern yurta is the most appropriate solution to accommodate our customers for short periods of time in an open air. It protects people almost from all weather conditions – from cold and heat to rain and snow. Another advantage of using yurtas is their mobility. We can change the place of their placement and can demonstrate how they were constructed and transported many years ago. We need to make a note here that we use only modern yurtas that have very few things in common with the historical ones. We construct them using only the up-to-date technologies and materials to achieve the highest possible level of comfort. And as we pointed earlier we have chosen the yurta for our logo and branding, so we simply cannot omit using it in our product/service mix. Restaurants and Snack Bars As people spend several days in our park taking part in various activities, they need somewhere to eat. This category along with using yurtas as hotels forms a hospitality part of our product and service mix. Like many other things in our park food must be adjusted for our main goal to introduce the world with nomadic way of living and food plays here one of the crucial roles. Nomadic cuisine is a very unique one. It is mainly associated with food that is provided by animals that were the source of food, prestige and prosperity for nomads for many centuries. Such food is very energetic and contains very nutritious elements. The variety of meat and vegetable meals are offered to our customers that familiarize them with nomadic cuisine. We offer the following meals and drinks: Drinks o Kumys, Shubat, Airan o Tea with milk of cream Main Meals o Kazy, Shuzhuk, Zhal, Zhaya o Beshparmak, Kyyrdak, Manty Bread o Tandyr cookies, Baursak Kurt and other Also it is necessary to note that we expect our customers to take park in many games and performances which are very energy consuming and people need to compensate the lack of energy by very nutritious food. In addition to that we know that even a just being in a fresh air rises people’s appetite two or three times. 16 In our restaurant customers will find very warm atmosphere and enjoy very tasty and healthy food prepared with love. Customers can order very big meals as well as the small snacks which can be carried out with them. The design of the restaurant is performed in very nomadic way. This is a big wooden summerhouse with pretty big tables in order to put on them as much food as possible. It is decorated by branchy plants such as fence. All the food is prepared in a way that it was being prepared by nomads on an open fire and in traditional ovens such as tandyr. Also for those who are not ready for any experiments with food our restaurant also prepare several European meals. Entertainments This is the biggest part of our offering and our core product. This category contains of everything what our customers can do in our park. We divided this category into two main parts; activities that our customers can take part in and activities they can watch and listen to. We arrange them into Performances and Participation subcategories. Performances Participation Legends & Story Telling Falcon Hunting Traditional and Historical Reconstructions Bow Shooting Ethnical Games Horse Riding Mini Zoo Play Room for Children Legends and Storytelling Performances include such activities as Legends and Storytelling where our customers can listen to various stories about historical events that were happening in different periods of our history. For example, they can learn about Gungar Invasion or listen to stories about Tamerlan. In order to perform it well, we gather people into small groups of 10 and make a little excursion telling them stories and showing different things such as weapon, costumes, and other tools that were in use many years ago. For this reason we arrange a small exhibition hall in the yurtas. 17 Traditional and Historical Reconstructions Here people are offered to watch some historical and ceremonial reconstructions. They can see with their own eyes how different ceremonies and historical events may have been happening in a real life. We show our customers how nomads were dressed, what kind of weapons were in use, how they fought, what and how they played. Many music and literature events are part of these reconstructions. Ethnical Games Here customers are offered to watch various nomadic games. They can learn about what nomads were playing and how they were playing. Kyz kuu originated from the saks tribes traditions. One of the conditions of the marriage was that the fiancé should run down the bride. In this game by the signal girl starts ride away from boy. If he reaches girl, he can kiss her, otherwise he have to turn around and escape the punishment – if girl catches up him, she will lash him with all her might. Altybakan – Kazakh swing. Traditionally every evening youth had meetings near the site where altybakan was placed where they were chatting, singing and, of course, swinging in couples – a boy and a girl. Kokpar – many horsemen stand at a distance of 50-60 meters, at the command they rush to the carcass (туша) of goat. The goal of the game is to grasp and keep it until the end. In old days the game lasted from the midday (noon) until the evening. The winner was the strongest or the most cunning one. Audaryspak – fight on the horses. Two guys on the horses are fighting and try to pull down each one. This game requires not only power and will to victory, but the cunning and deftness. Falcon Hunting Participation part consists of activities in which we expect our customers to take part. The falcon hunting is the very powerful and interesting activity. Here our customers can experience very exiting hunting with real falcons. We give a brief explanation about how to treat such gorgeous birds and then customers can actually hunt. The stuffed fox is bind to horse by the long rope. Then a rider tries to gallop as fast as the horse can. The stuffed fox follows the horse. This is the time then hunting starts. Those who managed to catch the fox we will reward by certificates and gifts. Bow Shooting Nomads were using a special type of bow. It was called Compound Bow. It was designed and used mainly by nomadic tribes during many centuries. In order to shot an arrow it does not require strength and even women can use it. This type of bow allows its user to shot on the top of a horse durian a battle. Customers can use it for shooting both on the top of a horse and on feet. We prepare shooting marks and those who managed to hit them will be rewarded by certificates and gifts. Horse Riding 18 After yurta a horse is the second thing which nomads are mainly associated with. They live and died on the top of their horses and usually horses play a crucial role in life of our ancestors. In our park customers get a chance to learn how to ride a horse. Then they can travel to various places on horses with our guiders who can show them the most interesting and beautiful places in our Mountains. Such tours usually take the whole day and people are very exiting about them. Mini Zoo This activity is designed for children and adults who want to know about domestic animals. Here our customers can learn how to look after the animals, how to feed and milk them. We tell children about various domestic animals that our ancestors used and what place in life they occupied. Play Room for Children Customers can visit our park with their children. For this reason we made a special room for children where parents can leave them and take part in activities without any concern about their safety. On the other hand children can play with each other as well as go to the mini zoo or to ride a small horse under supervision of our staff. As we stated earlier Entertainments that we offer is the core service that we offer to our customers. We believe that this service mix can fully satisfy and deliver the greatest value to them. These entertainments are specially designed according to historical content of out park and all of them are connected to the main idea of out park – to immerse our customers into nomadic atmosphere. Fair Our park is history oriented. It shows our customers the life of nomads their traditions and customs. We hope that our customers will take a piece of our park with them. And the Fair is well suitable for that. People visiting our fair can buy various souvenirs and gifts that will remind them about time they spent in our park. Here they can buy craft goods that they cannot get anywhere else. For example carpets with patterns or traditional Kazakh pottery which they can try to do themselves. National costumes, carpets, musical instruments, tools and weapons are traded here. All this can be found here. We order these goods from craftsmen who can produce them in a customers’ sight. These are very experienced cunning people who can make outstanding products. Customers can try to do these things by themselves. They can try to sew some shawls with traditional patterns or to make drinking bowls that are broadly used in Central Asia. We believe that such engagement can be very exciting and our customers can have a unforgettable experience with our park. Camping Zone Our park is located in a beautiful and scenic place. This is the best place to have a picnic. We made very simple and suitable tables and sheds out of wood for those who are merely interested to have a rest in a fresh air. We locate those zones along the river, the most suitable place for the camping. 19 Customers can bring their own food and roast it on an open fire or they can order some food in our restaurant and take it to many camping zones in the park. Promotion Our promotional mix consists of internet and visual advertising; Personal Selling in Deta tourism agency, Sales Promotion during different time periods, Public Relations through blogs and articles and Direct marketing. For advertising we use particularly the Internet. Our interactive web-site provides customers with updated information about the park, about our services, entertainment events, and latest news. Also in the site there are a lot of photos, comments from our customers and online videos for more visual representation about Nomadic Park. More over customers can plan theirs holidays online by making reservation through special form on the site that allows them to create their own list of activities and have a very attractive schedule for them. In addition for our foreign customers there is an English version, and for citizens - Russian and Kazakh language pages. For customers who are already have experienced Nomadic Park and want to share their opinion there is online evaluation survey on the web site. It will help us to improve the park and to get more satisfied and loyal customers. To take our target customers to Nomadic Park web site we have Internet banners on timeout.com. Because it will reach wide variety of audience especially both our targets: foreigns and family middle age who visit timeout.com to find information about how to spend their free time. There is our chance to compete with entertainment businesses. Another effective advertising is leaflets, Booklets and Cut-aways. Main places for distributing leaflets are Almaty airport and Hotels: Rixos, Ankara, Kazahstan, Hayat, Intercontinental, Dostyk to attract foreings. Also we locate distribution of leaflets, Booklets, Cut-aways in Almaty malls such as Mega, Aport, Magnum and in Deta tourism agency to inform public about our Park. One more important distributor of adversing is magasines. We choose Tengry magazine for placing advertisement because several reasons: Tengri Magazine is distributed at all local and international flights of Air Astana. Every passenger gets individual free issue of the magazine. During 2 months around 500 000 passengers will see our advertisement (daily more than 6 000 passengers). Tengri magazine is the source of interesting and useful information, which stays in the memory of tourists. For many foreign guests, especially who visits Kazakhstan for the first time, Tengri magazine is a visiting card of the country. We will register online our Nomadic Park in “Справочник Наш Город “which is published each year. Our advertisement will be place in “Справочник Наш Город 2011 “ It is a biggest source of data about companies that operate in Almaty. ”Справочник Наш Город” is well known and widely used as a hard copy as well as internet source of information. Also outdoor our advertisement will be located on Alfaraby-Navoi and Alfaraby-Lenina during 2 month March and June. We launch billboards in March in order to create awareness around Nomadic park. Then in June we again advertise our billboards to attract more customers in the middle of operation. On this streets city billboards reach attention to Nomadic park in short period because of big flow of potential target customers. In order to promote our opening of Nomadic Park on march, 22 (Nauriz) we decided to use radio advertisement on Retro FM. Because it is fast and easy way to communicate with audience of Retro 20 FM coincides with our target market: 35-49 age and it is very popular among ordinary people of our county. Next, for personal selling we have agents who will represent Nomadic park In Deta tourism agency. They will provide with all necessary information and details about the tour, give colorful and useful Leaflets, Booklets, Cut-aways. Sales promotion also play great role in our promotional mix. Firstly we have discounts: If our customer will stay in our park more than 2 days he/she will receive 10% discount on accommodation for each next day. If our customers will come in group of 5 people and more they will receive 5% discount on all services that Nomadic Park by card. To reward our consumers for their frequent, continuing coming in Nomadic Park we have Loyalty program. Each time when customer buys a weekend tour to Nomadic Park at Deta agency he receives a Leaflet, when he collects 4 leaflets Deta will provide a free tour for him. Also we have Promotional products that companies give out, stuff like free pens,notebooks, shirts, thermos, calendars with a company’s logo. The purpose is to keep the brand top of mind by keeping it visible in the channel partner’s daily life. In public relations we include traditional tool – press release. In which we describe our new business, give short information about Nomadic Park to the media in hope that they will write about it. We agreed with Time Out magazine to write an informative article about Nomadic Park consists of a very nice story with attractive photos wrought by a person who has already been in Nomadic Park to convince the reader that Nomadic Park is a perfect place to spend a weekend. Moreover we create blogs on bb.ct.com.kz where our customers describe their good experience with Nomadic Park and create buzz marketing. As direct marketing we use social networks, Group in Vkontakt,odnoklassniki.ru and tourism exhibitions. Also we distribute leaflets booklets and Cut-aways as was mentioned above in advertising section. Considering everything, our promotion is ideal mix of marketing tools that will reach out target market and attract more customers to Nomadic Park. Place The greatest advantage of our park is its mobility. It consists of several yurtas, traditional nomadic movable houses, summerhouses and necessary equipment. Everything can be gathered and transported in any place within several days. During winter we can store all the equipment in a storehouse in our office. This makes our park extremely attractive for those who quickly get bored by unchanging environment. Our park is located near the most recognized symbols of Almaty – Medeu and Shimbulak. The place itself is called Kok-Zhai’lyau which it is meant a Green Valley. This is one of the greatest and the most beautiful places in our mountains, which is untouched by people. There a lot of nice trees around this site such as spruce, birches and elms. The small river goes along the valley setting many nice places for camping. The valley is very vast and convenient for horse riding and various games that we perform in our park. Many hills that surround the valley can be used for walks and camping. 21 The valley is located near to the main road to Medeu and Shymbulac. To get to the valley people can only on foot or by riding a horse. We offer quadracycles for those who are not able to get there by foot or are afraid to use horses. We order a very comfortable bus to get our customers into place. The bus gets them to the parking zone where people take horses or start their little journey to our park on foot. Their baggage is carried out by our staff is necessary. Tickets for group tours can be ordered by customers in hotels where they are accommodated, also they can visit our office in the center of Almaty or they can order the tickets via our web-site. Customers can fill into the form and send it to our office within few minutes. Our office is well organized to gather people and preparation. People can get all necessary information about our park, activities and other things which are offered to them. People Our main values that we demand from our staff are to treat customers as we want others to treat us and full commitment of everyone to our goals and strategy. Special guides and polices are created in order to instruct personnel how to comply with them. Our employees are able to speak several languages and especially English. We want our staff to be very people oriented. We prefer young people who are very passion about their work here and are very communicative. We create very warm and kind atmosphere for our employees. We do not create very formal and stressful environment for our people. In a contrary to such practices we want our people to get satisfaction from what they do here. We give our people real freedom to make decisions about various things when serving the customers or engaging in other activities. We do not bind our people to particular activities for a long time. We shift them once a two-week period from one activity to another. We believe this makes their work for our company more interesting and productive. Our staff consists of guides, historians and trained young people who participate in various cultural performances and games. Every day starts with a meeting where all personnel is gathered and instructed about recent changes and news. We provide intensive training for our employees that helps them in various aspects of our business from serving a particular customer at the moment of truth to learning how to settle different conflicts with customers that results in beneficial outcomes for both parties. Each person is proved to deliver the highest value for our customers and our company. Physical Evidence The number one physical evidence is souvenirs. People are offered to buy variety of things for good memory about their experience with our park. Traditional Kazakh accessories such as adornments, bracelets, beads, belts, symbolic weapons, little figures and so on are traded at our Fair. Also we develop a line of journals for our customers describing culture, history and traditions of nomadic peoples. Brochures and programs are distributed for each customer in order to inform them about activities and schedule their time in the park. Organized places for camping with special place for fires, tables and sheds. Comfortable environment and traditional furniture in our yurtas create unforgettable experience. Traditional Kazakh food and super delicacies make people exciting. 22 Customers can take part in various games and performances wearing traditional Kazakh cloth. People get familiar with Kazakh tools and weapons that were in use in different periods of our history. Customers can try them in falcon hunting – the traditional way of hunting of nomads. Process For convenience of our customers and their satisfaction we assume the following process strategies. In order to get a ticket for visiting our park a customer can visit our web-site where (s)he fills the form that provides us with all necessary information about him/her. Or (s)he comes to our office where (s)he learns about services and activities. Then within no more than several minutes we prepare necessary documents and check what dates are available and how they are convenient for the customer. Using site or inside of our office the customer can choose among different programs and time periods (s)he wants to spend in our park. Site Manager Manager Order Office Park This is simplified scheme of the ordering process: Docs Preparation By the blue rectangles we indicate where involvement of customers is necessary. We get customers to our park and help them with everything while they are in the park. This type of service is “all inclusive”, which means that customers pay only once and do not have to pay for any additional service or activity. We schedule our customers’ time to deliver very intensive and interesting experience to them. Customers need not to think how to spend their time in the park. Everything is scheduled and prepared in advance for them. Also we assume that some of our customers like middle income families can visit our park without coming to our office or web-site. If they are aware about ways how to get to our park, they are welcome to do so. They get to the parking zone by their cars and get to the park in a way which is described earlier. We do not limit this category of customers by scheduling and they are free to choose whatever activity Restaurant Camping Arrival 23 Yurts Entertainments they want to do in our park. Price Our prices are mainly based on our costs and expenses. We use very slight markup in order to generate our income. This type of strategy is very convenient and can be applied in a very easy and quick way. This prospects us from any harsh economic conditions that may occur in Kazakhstan. For our foreign customers we use “all inclusive” type of tickets in order to make their being in our park very pleasing and fine. Customers prepay their tickets in our office or on the web-site by credit card or other means. Customers visiting our park by their own pay for each activity separately. For the detailed information see Appendices F, G, H. 24 ORGANIZATION, IMPLEMENTATION, AND CONTROL Organization Our main operations include ticket procession, transportation and operation of the park itself. For the various activities we have signed additional agreements with our partners – companies other than DETA. Their responsibilities include preparation and carrying our cultural activities such as performances, games, falcon hunting, horse riding and other. We strictly request them to comply with our practices and policies in terms of quality and service. We have developed an integrated system where our partners have a full access to all necessary information to guide their decisions. We are open to new companies that want to become a part of our community and increase the value delivered to our customers in exchange of course for a good compensation. Director of the park is key operations manager who is responsible for all operations in the park. His responsibilities include morning briefings for employees, supervision of all operations provided by both our internal work force and by our partners via simultaneous control. His performance as well as performance of the park is evaluated based on performance marks described above. Implementation This is our schedule of implementation Nomadic Park Project. # 1 2 Activity Registration of a new entity1 Getting Permissions - 3 4 5 6 7 8 1 Responsible Person Legal Manager Legal Manager/ Chief Accountant/ Sanitary Control Firefight Control Ecological Control Tourism Agency Emergency Ministry Tax Authorities Land rent negotiations Searching for partners/Negotiations Capital Investments - Duration Two weeks Two months Household Manager Three weeks One month Director/Operational Manager Director One month Director/Operational Manager Three months Two weeks One week HR Manager Operational Manager Operational Manager Procurement Equipment setting Contracting developers Employment process Preparation/Installation/Testing Starting operation period as a branch of DETA company 25 Management Control System We established a very efficient management control system that aids and coordinates planning and key decisions in our park. We use all the information gathered by this system to guide the behavior of our managers and employees. We divided this system into four main categories: Financial category – net income, return on investment, cash collected from operations, efficiency and necessity of expenditures. Customer-related category – customer satisfaction surveys, lead time to respond to a customer request, repeat ordering. Internal business process category – quality of food and restaurant experience, quality of room services, cleanliness of yurtas, friendliness of employees, speed of service in the office, web-site management. Learning-and-Growth category – employee satisfaction, absenteeism, information system capabilities. We calculate and compare the figures each month trying to identify the problematic spheres, where necessary adjustments are needed. We try to identify trends and act quickly to resolve any problems that arise. For each category of performance measurement we set a pretty high target level of performance such as high level of customers and employees’ satisfaction or very low level of absenteeism and lead times. We require our staff to deliver the best possible quality to our customers from absolute cleanliness of rooms and restaurant to high speed of service on each stage where we customers deal with us. Also we believe that management control system consists not only of informal rules, procedures, and performance measurements, but it mainly consists of our informal control system that includes shared values of our employees, their commitments, our company culture and unwritten norms of behavior. 26 CONCLUSION During the work on the plan we really enjoyed every part of it. We developed this product being completely involved in the process and led by the passion to make the valid product for the market. The main features of our product – the uniqueness, national and cultural colouring, and high quality – are our means to the success. Details of the product were improved basing on the research what market demand is. We tried not to forget about every tiny nuance in order to satisfy the client as better as possible. We believe that the Nomadic Park is a great project – entertaining, educative, with the full range of services and not only financially profitable, but necessary for the society of Kazakhstan to remind about the past we had, necessary to demonstrate to the world community the richness of the culture of ancient tribes lived here. 27 Appendices Appendix A Estimate of population income Оценка номинальных денежных доходов населения в среднем на душу в месяц, тенге Республика Казахстан Акмолинская Актюбинская Алматинская Атырауская ЗападноКазахстанская Жамбылская Карагандинская Костанайская Кызылординская Мангыстауская ЮжноКазахстанская Павлодарская СевероКазахстанская ВосточноКазахстанская г. Астана г. Алматы в % к предыдущему году 2003 2004 2005 2006 2007 2008 2009* 10 533 12 817 15 787 19 152 25 226 30 781 33 877 7 976 9 441 11 443 14 945 20 053 25 859 29 158 11 351 6 594 27 371 13 750 8 193 29 970 16 982 9 486 39 197 19 347 12 534 37 774 24 702 16 838 50 363 30 296 21 959 66 150 32 146 27 045 75 210 14 287 15 313 17 873 17 864 23 816 30 828 37 854 5 567 11 549 8 573 7 771 24 372 6 917 14 051 10 474 9 553 29 417 9 101 15 561 12 574 12 385 35 713 11 885 18 738 16 558 14 602 38 317 16 669 24 164 21 860 18 889 43 914 21 251 30 948 26 424 25 727 56 128 25 935 34 022 27 569 31 574 61 051 5 288 13 808 8 206 10 790 14 308 17 639 20 154 11 327 10 084 15 326 17 978 23 455 31 549 34 234 8 145 6 433 11 405 14 939 19 033 24 286 27 381 10 095 11 883 12 793 16 665 22 073 26 508 29 385 20 441 20 123 26 196 24 235 32 738 29 347 38 127 38 190 48 669 51 703 59 290 58 214 63 419 59 370 28 2003 2004 2005 2006 2007 2008 2009* 117,6 121,7 123,2 121,3 131,7 122,0 110,1 117,9 116,4 114,9 135,6 118,4 121,1 124,2 109,5 121,2 123,5 115,8 130,8 130,6 113,9 132,1 96,4 134,2 127,7 134,3 133,3 129,0 122,6 130,4 131,3 112,8 106,1 123,2 113,7 115,7 112,5 107,2 124,3 116,7 131,6 99,9 130,6 133,3 140,3 129,4 127,5 122,8 122,0 113,8 120,7 118,9 117,6 121,7 122,2 122,9 120,7 110,7 120,0 129,6 121,4 120,4 131,7 117,9 107,3 129,0 132,0 129,4 114,6 128,1 120,9 136,2 127,8 109,9 104,3 122,7 108,8 112,8 115,9 121,7 121,9 127,6 111,0 131,5 117,3 132,6 130,5 123,3 134,5 114,3 108,5 114,3 123,8 113,1 131,0 127,4 127,6 112,7 108,6 124,5 116,7 117,7 128,2 120,4 107,7 125,0 121,1 130,3 116,5 130,1 132,5 127,6 135,4 120,1 121,8 112,6 110,9 107,0 102,0 Appendix B Customers served by tourist firms Обслужено посетителей туристскими фирмами, всего Республика Казахстан Акмолинская Актюбинская Алматинская Атырауская Западно-Казахстанская Жамбылская Карагандинская Костанайская Кызылординская Мангистауская Южно-Казахстанская Павлодарская Северо-Казахстанская Восточно-Казахстанская г.Астана г.Алматы 2003 229 014 14 125 2 264 21 300 1 624 367 5 630 6 147 1 374 271 7 877 4 005 4 119 2 610 17 597 39 499 100 205 2004 292 738 8 861 3 740 61 633 692 3 035 6 127 11 500 1 365 1 139 4 225 3 597 6 164 6 799 17 462 55 067 101 332 2005 434 943 20 041 5 235 41 369 18 133 10 546 6 797 15 393 3 572 3 425 10 061 4 216 5 999 14 432 25 299 99 512 150 913 29 2006 520 972 19 104 5 721 50 711 1 661 3 210 7 578 15 032 7 503 3 996 14 554 4 603 12 438 12 790 27 689 83 444 250 938 2007 541 930 29 038 6 499 59 541 2 049 2 464 12 237 16 814 8 624 1 281 10 863 4 616 12 462 11 056 39 960 63 049 261 377 2008 473 947 34 289 8 714 20 970 3 397 2 611 4 708 14 856 7 203 609 14 762 5 422 12 197 6 167 59 667 65 712 212 663 2009 347 413 40 726 8 082 11 144 5 863 3 181 4 286 13 704 7 889 467 12 703 5 355 9 863 4 718 22 533 28 734 168 165 2010 181 354 9 482 3 211 8 983 3 452 1 928 875 6 211 2 854 254 5 028 2 219 6 006 2 746 10 455 17 183 100 467 Appendix C Non-resident customers served by tourist firms Обслужено посетителей по въездному туризму (нерезидентов) туристскими фирмами Республика Казахстан Акмолинская Актюбинская Алматинская Атырауская Западно-Казахстанская Жамбылская Карагандинская Костанайская Кызылординская Мангистауская Южно-Казахстанская Павлодарская Северо-Казахстанская Восточно-Казахстанская г.Астана г.Алматы 2003 44 990 20 608 136 87 23 22 86 337 1 407 559 41 705 2004 31 367 38 20 475 104 2 242 12 16 124 63 2 1 649 4 339 24 281 2005 39 872 6 10 797 724 1 313 15 132 78 358 143 2 25 1 395 6 128 28 746 30 2006 56 203 364 26 301 7 137 6 39 267 153 2 37 624 1 522 52 718 2007 62 117 60 138 200 156 2 217 4 42 31 36 551 7 663 53 017 2008 37 937 2 256 266 255 424 20 34 25 53 14 1 313 213 35 062 2009 31 246 13 30 65 40 132 63 1 584 10 9 1 179 378 27 743 2010 17 073 14 23 2 399 184 635 311 15 505 Appendix D Quantity of the tourist firms Jay - Mar Республика Казахстан Акмолинская Актюбинская Алматинская Атырауская Западно-Казахстанская Жамбылская Карагандинская Костанайская Кызылординская Мангистауская Южно-Казахстанская Павлодарская Северо-Казахстанская Восточно-Казахстанская г.Астана г.Алматы 620 10 11 24 11 2 8 26 6 2 8 2 21 6 20 25 438 Jay Mar Республика Казахстан Акмолинская Актюбинская Алматинская Атырауская Западно-Казахстанская Жамбылская Карагандинская Костанайская Кызылординская Мангистауская Южно-Казахстанская Павлодарская Северо-Казахстанская Восточно-Казахстанская г.Астана г.Алматы 664 15 14 26 17 5 11 24 7 3 15 6 20 13 23 17 448 Jay - Mar Республика Казахстан Акмолинская Актюбинская Алматинская Атырауская Западно-Казахстанская 801 15 17 38 23 6 2003 год Jany JanJun Sep 685 691 10 9 12 12 24 24 12 12 3 4 11 11 28 28 6 7 2 2 8 10 8 10 21 21 6 6 21 22 29 34 484 479 2005 год Jany JanJun Sep 756 834 16 16 17 20 29 31 20 22 6 6 11 11 28 41 9 10 3 3 15 15 15 16 23 23 13 14 24 30 23 25 504 551 2007 год Jany JanJun Sep 853 904 18 20 19 20 43 45 23 23 9 9 31 Jan Dec 713 10 11 29 13 4 13 25 5 3 10 5 25 7 22 37 494 Jay Mar 685 9 14 28 14 4 8 22 5 3 10 4 30 7 22 23 482 Jan Dec Jay Mar 846 16 20 30 22 6 11 46 10 3 15 16 23 15 34 28 551 795 13 15 32 23 5 11 46 9 4 18 6 28 15 30 25 515 Jan Dec 1 007 20 20 47 24 10 Jay Mar 955 19 20 53 23 9 2004 год Jany JanJun Sep 706 724 9 9 14 16 33 39 15 17 4 4 9 12 25 28 5 6 3 4 8 10 7 11 33 20 7 9 20 21 24 25 490 493 2006 год Jany JanJun Sep 860 903 14 15 15 17 38 50 23 23 8 8 12 13 47 52 9 12 4 4 21 21 12 16 30 32 16 16 36 38 31 33 544 553 2008 год Jany JanJun Sep 1 029 1 122 22 25 25 27 53 55 24 25 11 11 Jan Dec 751 19 16 37 18 5 10 29 6 4 12 12 21 12 24 26 500 Jan Dec 921 17 18 50 23 8 13 52 13 4 21 18 32 16 39 44 553 Jan Dec 1 163 26 27 54 25 11 Жамбылская Карагандинская Костанайская Кызылординская Мангистауская Южно-Казахстанская Павлодарская Северо-Казахстанская Восточно-Казахстанская г.Астана г.Алматы 13 46 17 3 19 8 35 16 31 42 472 Республика Казахстан Акмолинская Актюбинская Алматинская Атырауская Западно-Казахстанская Жамбылская Карагандинская Костанайская Кызылординская Мангистауская Южно-Казахстанская Павлодарская Северо-Казахстанская Восточно-Казахстанская г.Астана г.Алматы Jay Mar 1 040 21 24 45 19 10 20 66 25 2 30 18 47 20 45 83 565 14 19 52 53 19 19 3 4 20 22 14 18 38 42 18 18 34 37 51 55 478 500 2009 год Jany JanJun Sep 1 122 1 162 21 25 24 25 45 45 20 20 10 10 20 21 73 73 25 29 2 2 30 31 20 21 55 56 22 22 46 48 86 87 623 647 32 19 54 19 4 22 18 48 18 40 57 587 14 59 20 2 22 19 47 17 43 67 521 Jan Dec 1 203 26 26 43 18 10 21 76 26 2 29 22 56 23 48 87 690 Jay Mar 1 139 20 22 37 17 11 21 65 28 3 28 22 56 24 38 119 628 16 20 63 68 21 21 2 3 26 26 22 24 49 51 20 20 46 47 71 85 558 614 2010 год Jany JanJun Sep 1 247 21 25 37 19 11 21 71 30 3 28 24 58 24 39 129 707 21 72 26 3 26 26 52 20 47 88 639 Jan Dec Appendix E Entertainment parks 2003 Number pf parks in Kazakhstan, units 41 33 2004 42 2005 50 2006 53 2007 63 2008 66 Appendix F Price List Price - List For service provided by "Nomadic park" Price on weekday s Price on holida y Bow shooting lessons Play room 25000 2400 1000 20000 500 900 1500 2500 1000 1500 30000 2400 1000 22000 700 1250 2300 3800 1200 1700 5-7 hours per 1 hour per 1 hour 4-6 hours Fof 3 attempts Fof 6 attempts Fof 12 attempts Fof 24 attempts per 1 hour per 1 hour Baby sitting Mini Zoo 1200 500 1500 300 - 1200 400 500 2000 2000 800 500 2000 per 1 hour per 1 person per 1 person (duration 2 hours) per 1 person (duration 2 hours) Per 1 game (with iinstructor) per 1 person 12 hours 12 hours Name of a service Falcon Hunting Horse Riding Horse Riding lessons Horse Trip Bow shooting Traditions Reconstraction Performase Traditional Games Reconstraction Performase Asiki Camping Grill rent 34 comment Appendix G Yurtas Name of the yurtas Number of places Tipe of the yurtas Price of the yurtas per 24 hours Price on weekdays Price on holiday comment Red On the territory there are 8 double place yurtas and 4 single. 1 double room 7 500 10 500 1 single room 5 600 8 000 1 double room 10 500 13 500 1 single room 7 000 9 000 1 double room 17 500 19 500 1 single room 15 000 15 500 Standart Gold On the territory there are 9 double place yurtas and 1 single. Platinum On the territory there are 5 double place yurtas and 1 single. 35 Standart + TV, refrigerator VIP all included Appendix H Marketing Budget Nomadic Park Marketing budget for 2010 Januar y Februar y Staff Salaries for marketing managers Salaries for marketing support e.g. marketing assistants. Awards and bonuse Taxes (10% Surtax Rate) Staff Total 0 0 10 000 5 000 10 000 5 000 15 000 15 000 Septembe r Octobe r Novembe r Decembe r March April May June July August 525 000 525 000 525 000 525 000 525 000 525 000 3 150 000 280 000 280 000 280 000 280 000 280 000 280 000 -80 500 724 500 -80 500 724 500 -80 500 724 500 -80 500 724 500 -80 500 724 500 -80 500 724 500 0 1 680 000 0 -483 000 4 347 000 0 20 000 10 000 0 30 000 0 0 0 TOTAL Marketing researches Primary research Secondary research Library management Market Research Total 0 0 0 0 0 0 0 0 0 Marketing communications Branding Website Development & Hosting Direct-Marketing PR Brochure Design Adverticing Internet Adverticing Radio Advertising Newspaper Magazine 0 15 000 50 000 80 000 120 000 300 000 200 000 300 000 400 000 400 000 150 000 100 000 120 000 750 000 750 000 36 100 000 50 000 15 000 870 000 700 000 0 1 500 000 0 Advertising Outdoor (Posters or billbord) Marketing and Adverticing communications Total 65 000 80 000 820 000 900 000 50 000 50 000 50 000 50 000 440 000 440 000 1 440 000 1 310 000 880 000 100 000 50 000 0 0 0 0 4 765 000 Distributors Training and communication Motivation and advancement The commission / bonuses 60 000 60 000 60 000 60 000 60 000 200 000 200 000 200 000 200 000 200 000 Distributors Total Other Communication and phone Equipment Stationry Other Totall Overall Marketing budget 50 000 50 000 50 000 50 000 260 000 260 000 260 000 260 000 260 000 10 000 16 000 26 000 156 000 10 000 16 000 26 000 10 000 16 000 26 000 1 620 500 10 000 16 000 26 000 1 700 500 10 000 16 000 26 000 2 450 500 10 000 16 000 26 000 2 320 500 10 000 16 000 26 000 1 110 500 10 000 16 000 26 000 1 060 500 10 000 16 000 26 000 171 000 37 286 000 60 000 200 000 260 000 10 000 16 000 26 000 286 000 200 000 360 000 1 200 000 0 0 1 760 000 0 0 0 0 100 000 160 000 260 000 11 162 000 Appendix I Leaflet Samples 38 39 Appendix J Web Site Home Page 40 Appendix K Questionnaire samples Questionnaire for foreign respondents: 1. 2. 3. 4. Sex male female Age <18 18-30 30-40 40-50 >50 Country of origin ____________________ Purpose of coming to Kazakhstan (for foreign citizens only): a. Work b. Travel c. Other ____________________ 5. Duration <3 days 1 week 1-2 weeks 1-2 months >2 months 6. Accommodation: a. hotel _____________ b. rent c. friends, relatives 7. How much free time do you possess? a. Couple hours a day b. Half a day c. 1-2 days a week 8. What type of rest do you prefer? a. Fine Art (concerts, cinema, exhibitions, theater) b. Sport c. Tourism d. Other _____________ 9. What places of interest have you already visited? ___________________________________ ___________________________________________________________________________ _ 10. Which of them you liked most (round previous) 11. Where would you like to go? ____________________________________________________ ___________________________________________________________________________ _ 12. How do you evaluate the quality of a service 13. 0 14. 1 15. 2 16. 3 17. 4 18. 5 19. awfu l 20. bad 21. unfavora ble 22. Modera te 23. goo d 24. Excelle nt 25. Level of comfort demanded (1-5) a. 1 = Comfort is not the point b. 2 = Minimum conditions c. 3 = Moderate d. 4 = Can’t stand lack of comfort e. 5 = 5 star is desired 26. What aspects of national culture of Kazakhstan are you interested in? a. Traditions b. Crafts c. Sports d. Clothes e. Art 27. Have you tasted the Kazakh cuisine? Yes/No 28. Did you like it? Yes/ No 29. If not, because it was: a. Spicy b. Fatty c. Hard d. Contradicts with principles (non-vegetarian, exotic) 30. What is your mean of transportation? a. Corporate/rented car b. Own car c. Public transport d. Taxi e. On feet/bicycle 31. Would you like to try living in Yurta? 41 Questionnaire for local respondents 1. 2. 3. 4. 5. Пол муж жен Возраст 20-30 30-40 40-50 >50 Семейное положение: замужем/женат холост Количество детей: Нет Один Два более трех Доход персональный/ на семью : менее 100,000 100,000 – 250,000 250,000 – 400,000 6. 7. 8. 9. 10. 11. 12. 13. 400 000- 700 000 Как вы проводите выходные? a. Выезд за город b. Дома с семьей c. Культурные развлечения в городе Часто ли вы выезжаете на природу? a. Каждые выходные b. Раз в месяц c. Несколько раз в годd. Редко Куда? __________________________________ У вас есть собственное авто? Ваша потребность в комфорте (1-5) a. 1 = комфорт не принципиально b. 2 = минимальные условия c. 3 = нормальные условия проживания d. 4 = не могу без цивилизации e. 5 = 5 звезд минимум Интересует ли вас национальная культура кочевых племен? Где вы проводите торжества? a. Дома b. Кафе/ресторан c. Другое Интересует ли вас проведение праздников в национальном стиле? 42 более 700,00 Appendix L Focus group transcript (partial) Focus Group Research Objective: discussion and implementation of “Nomadic Park” project Date 5 10 10 Time 12 00 13 20 Moderator: Nikolay Slivkin Members: John Neshwill (42 years old expat manager in Investment fund, American) Fridrich Wessergolf (37 years old, lector at Kazakhstani German University, German) Victoria Potillard (27 years old, Corporate development manager at private equity fund, native FrenchArmenian) Katherine Hurdley (32 years old, top executive at Swiss pharmaceutical company, English) Eliza Hassetti (37 years old, director of Italian language school, Italian) Transcript Moderator: Hello, everybody. First of all, let me thank you for coming here. Today we will present you our project, and will be glad to get some feedback from you. Hope you’ll enjoy it. (SHOW PRELIMINARY PRESENTATION) Moderator: Uh, so the presentation is over, and before asking you prepared questions, I would be glad to hear your comments on it so far. Victoria, let’s start from you, please. Victoria: Uh…oh. Good day, colleagues! Very impressive! So, it was interesting to me, to familiarize with your project. I think that it is a quite good idea, to make foreign tourists to get familiar with nomadic culture in such an absorbing way. As for me, personally, I am absolutely sure, that if such kind of park existed in real, I, probably, would be the first visitor of it. You know, there is a plenty of times, when I don’t know how to entertain myself on weekends, so this park would become absolute remedy for my boredom, even for first few times. Hope, I’ll still be in Kazakhstan when the park opens, not to lose my chance. I liked it! Moderator: Oh! Victoria! Thank you for such kind and touching words. First shoot – success! Sure, if we open it in the nearest future, we’ll send you an exclusive trial invitation. Victoria: (Laughs) All right, I’ll package my sac de voyage, then! 43 Moderator: So, let’s turn to others. John, what is your opinion? John: Ahh, thank you. Quite attractive business, but, actually, the project seems to be not so real, as it is on presentation, maybe, partially, because I am a manager in an investment fund and due to professional experience, I’ve got some questions regarding the project. Moderator: Great! You are welcome to ask. John: First of all, can you assure the adequate demand for your specific product? Moderator: Actually, that’s why we are all here. We’re trying to find out, how popular the park will probably be. John: I see. Why I am asking, is that I doubt the attractiveness of such entertainment, because, frankly speaking, personally I don’t see Kazakhstan as a popular touristic destination… Fridrich: (raising hand) Sorry for interrupting you, John, but why do you think so? You and me are foreigners and we are here, so doesn’t this prove the popularity of a country? John: Ok, let me break it down for you. I am in Kazakhstan because of work, not traveling, as well as anybody here, except our Moderator. Isn’t it so? Fridrich: It isn’t. Yes, I work here, but when choosing the country to go for a work, I had an opportunity to select from wide list - both East and West countries. And the reason, I chose Kazakhstan, is because of my friends’ stories, who traveled a lot, including Central Asian countries. Moreover, I’ve got plenty of friends here, who travel in Kazakhstan just for fun. John: Oh, c’mon, we can’t compare Kazakhstan and….for example Thailand! Fridrich: Yes, we can’t, because the purpose of visiting is absolutely different. Thailand is for diving and … hm … girls, Kazakhstan is for… John: Work!!! Moderator: Brake! Gentlemen, prior you start fighting, let’s listen to Eliza. She’ll, probably, bring us to some consensus. Eliza? Eliza: Seniors, seniors, keep calm! Let me tell my vision of the issue. As for me, I live in Kazakhstan for 4 years. Nothing keeps me here, I mean not work or family, I am here just because I like that nature, I like that people, their mentality, and I don’t know why that idea does not suit you, John, wouldn’t you really like to visit such kind of place? You can’t think only about work… ]ohn: Oh, please, don’t treat me as an enemy of society. Yes, may be for you I am like a devil’s advocate, but you can’t judge me for that! Because, that’s why I am here, to discuss not only positive aspects, but a drawbacks as well. And now, if you don’t mind, I’ll continue. Why I said that Kazakhstan is not a so popular among foreigners is because, being an experienced and crafted in business, I can easily see that this project, has too narrow target customers. Moderator: Really? So, maybe you would like to suggest something? John: Why be oriented only on us? I mean foreigners. Though, there are quite lot of us – working, living, traveling here, but still it’s relatively small number of customers. What about your own local people? 44 Moderator: Oh , John. You are quite right, but, fortunately, we predicted such kind of situation. Our market is oriented not only on foreigners, but also on a local people, mainly families of middle and upper classes, who just want to keep in touch with their roots. Therefore, we have two target sectors. John: Oh, so excuse me, then. Now, I got the point and ready to take my words back. Katherine: Sorry, I have some thoughts concerning the customers. What about local business segment? Moderator: Sorry, Katherine, what do you mean? Katheleen: I mean, what about….uhm… kind of corporate events....like teambuilding…or business trainings. Is it included? Moderator: Very interesting, could you continue, please… Katheleen: I mean, ordinary people visit such parks not often, also, as we understood, prices are quite high, so that even middle class families rarely afford such a rest. So, you could look for additional profit, by involving business people in the way of teambuilding services. At my work, we conduct teambuilding campaigns about once a month, and choose different places somewhere out of the city, most of which are often not comfortable at all. So, if you invite white collar workers, through event agencies or by yourself, there would be many of them willing to conduct this event in your park, because it is at the same time natural place but with signs of civilization. Also, there are different games and services in the Park, which are useful for teambuilding activities. Moderator: Excellent! Thank you, Katherine, no doubt we’ll include this idea! Any other suggestions, so far? (Silence) If not, let me ask you some questions. The first is concerning the civilization, which was mentioned by Katheleen. Are you really willing to keep some sings of civilization, or do you want to fully emerge in the Nomad lifestyle? Victoria, haven’t heard you so long? Victoria: Yes, thanks. Good question, it really needs huge concern. On the one hand, it is exciting to feel the aura of Nomads, to integrate yourself into that age, to get that experience of Medieval Asians’ life… but, on the other hand, if we are supposed to stay there over night, some of us may be unwilling to sleep in Yurtas. Of course, it is exotic, exciting, cool, extreme and et cetera, but still, we are not used to that environment, which sometimes is dangerous. I mean, no one is saved from such small but strong personal disasters as insectophobia, squeamishness, needs in a hot shower in the morning… you see what I mean. Moderator: Ya, I got your point, thanks. Fridrich wants something to add, Fridrich? Fridrich: Agree with Victoria, and want to complete the answer. Though, some wishes Euro-comfort and Jacuzzi in a luxury room, however, there is a majority of visitors, who came to the park for exactly that “experience’ of wildness. So, you need to balance the wild and civil aspects. Default accommodation is Yurtas, and optionally there should be some, maybe, trailers to be as alternative room, which include standard bathroom and bed. Eliza: Totally agree, that would be safest choice. Especially for non-local foreigners, that is, who are only recently came to Kazakhstan. They may be too “culture shocked” if stayed in Medieval houses. However, such desperate foreigners, as me and, probably, Fridrich, don’t mind to stay in Yurta. It is interesting! I mean – It is really cool, same as to taste the croissant when visiting France, or dancing on Carnaval when in Brazil. It is an essential chain of culture. Moderator: All right, thank you all for such a complete answer. Next question is about which services in our presentation you liked the most, which didn’t at all, and which you would suggest to include? 45 John: Can I start? Thanks. I liked the riding most. Think it will be one of the main services in park, because horse riding is already somewhat popular hobby, and with the cultural flavor, I mean if you make it even Nomadian style, with some special features for hunters or warriors, you know, it would be incredible entertainment for those, whom you treat as your target customers. Katherine: Right, I liked the horse riding, too. But, actually, you need very strong advantage over competitors, so that we chose you. I mean, there are lots of other places, where we can ride a horse, so you need to persuade us somehow, that your horses are the best horses we have ever ride. However, personally for me, the fact, that besides horses I can enjoy many other activities at the same place, could be persuasive enough. Moderator: Thank you, Katherine. What about others – would you prefer our horses to competitors’ ones, because we have other offerings at same place? Victoria: Don’t know about others, but for me it is valid argument. Fridrich: As for me, it depends on the other services you offer. Moderator: Ok, let’s go to them, then. What can you say about craft fairs? John: Hm… for me all that national souvenirs, that are very popular among my American friends, are too expensive. May be I live here not so long but I know only two or three places in your city where I can buy them. And, prices for them are too high. I think it is all because of markups, that retailers put on them. So, if in your park all souvenirs will be sold just from the first hands, you can treat it like one of your competitive advantages. Fridrich: Yes, John said the truth. Tubeteika that I have bought, cost like it was Tomy Hilfliger one’s.(loughing). Victoria: Hm…right. Moreover, I think in your park, we could not only buy souvenirs, but it will be fascinating if we could try to do our own. What about craftsman master classes in your park? It will be very interesting not only for children but for adults also. I was always dreaming about work on a potter’s wheel. Moderator: Wow! Wonderful idea, very interesting and useful! Thank you so much Victoria. Any other ideas about craft-fair?(silence) So, our next question. What do you think about our menu? Isn’t it too severe for you? Fridrich: I don’t know about other, but for me as a German, menu is quite all right, our national cuisine is quite fatty and hard for stomach. And as for me Kazakhstani cuisine, are appropriate for an amateur, but I think more German beer, would not contradict with anything. Ha-ha. Eliza: Yea, quite right, Fridrich. For me it is good, too. But there is a high tendency among other Europeans to be vegetarian. Does the park have some vegetarian offers, as an optional menu? John: And, by the way, guys, what about traditional, I mean traditional for West, cuisine? I don’t want to say something bad about Nomadic food, but rare people can easily switch from their usual meal to something exotic. Maybe you include both East and West? Moderator: Yes, yes. Just now our menu is under consideration, and it is flexible enough to include all your suggestions. Fridrich: Oh, don’t forget about bear! 46 (LAUGH) Moderator: So, probably, our last question for today is about our location and road to it. What do you think about that? Fridrich: Well, I saw your location on the map – and I think it’s affordable in terms time and length, but if you have your own car, preferably outlander. John: Though, on map it seems to be near, but the quality of road is quite uncertain. And secondly, I am not so familiar with local landscape to find the place by myself. Victoria: Actually, John is right. We’re not such an Indiana Jones. Maybe you could post some tips…ah, like road signs? Katherine: Ya, ya, you know like am… signs all around the Almaty city about the shopping mall… which is called..umm… “Airport” or “afford” with an apple on the logo… Eliza: Aport!!! Yea, it seems like a good idea! Moreover, personally for me, these signs are not so much the pointers, but rather the advertisement. Moderator: O’kay, thanks. But imagine you don’t have a car? Fridrich: O mein Got!!! It would be a huge disaster for me, but if so, I think we wouldn’t mind to get there by local bus. Is it possible to launch couple of shuttles a day? Moderator: Yes, we thought much about this issue, but still are not sure about the demand for these busses, especially during working week. John: Well, don’t think you need them during these days, because of the nature of your Park, which is supposed to be visited mostly at weekends. Moderator: Ok. Finish 47