Feasibility study of Amphibious Design vehicles in Goa, India Joint International Internship Seminar 2015 - De Souza Group Students Instructors Asmita Chakraborty Prof. dr. K. Vandenbempt (UAntwerp) Tim Molkens Prof. A. Guiette (UAntwerp) Gaurav Sharma Prof. D. Kaushik (GIM) Ben Van Campfort Prof. Meena Parulekar (GIM)
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Market Study and Feasibility of Amphibious Vehicles in Goa
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Feasibility study of Amphibious Design vehicles in Goa, India Joint International Internship
Seminar 2015 - De Souza Group
Students Instructors Asmita Chakraborty Prof. dr. K. Vandenbempt (UAntwerp) Tim Molkens Prof. A. Guiette (UAntwerp) Gaurav Sharma Prof. D. Kaushik (GIM) Ben Van Campfort Prof. Meena Parulekar (GIM)
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Table of contents List of figures ........................................................................................................................................... 2
List of graphs ........................................................................................................................................... 2
Part 1: before Goa ............................................................................................................................. 35
Part 2: in Goa ..................................................................................................................................... 41
List of figures Figure 1: Go-to-market framework ......................................................................................................... 9
Figure 2: Porter's five forces framework ............................................................................................... 13
Figure 3: Calangute and surroundings .................................................................................................. 14
advertising. Though e-mail marketing is not considered to be a productive form of marketing, these
kinds of campaigns can be effectively implemented by using portals such as MailChimp.com,
Goresponse.com. These portals help us to selectively choose the recipients as it includes tracking,
social forwarding and complete analytics. Here, the key is to select relevant users and not to spam the
inbox of all possible subscribers.
Finally, to attract tourists and increase the acceptance/attraction level of those tourists towards a new
service, i.e. amphibious vehicles, the company will need to provide them with exciting and affordable
packages or offers. Based on the study of the international Duck Tours, these are a few ideas that can
be used as special offers:
Early Duck Discount: Provide some rebate to the tourists arriving in for the morning
tours (9-9:30 am) to increase occupancy even for the early tours. Another option is to
give a discount to people who come and make a reservation a day before their tour.
Family formula: In order to promote the family-oriented nature of the tours, the
company may provide cheaper packages to families.
Group arrangement: Provide a combined and cheaper package for large groups,
possibly up to 32 persons (full capacity of one vehicle). An increase in the number of
foreign tourists coming to Goa for conference and conventions (inferred from the
increase in number of charter flights and cruises) has been noted. This offer can be
useful to tap on that group-segment.
(Based on international duck tours websites: Boston Duck Tours, n.d.; London Duck Tours, n.d.; Ride
the Ducks of Seattle, 2014).
Another thing to think about is whether the company should offer the amphibious service as an
independent service. It could namely be interesting to link this service to other existing services. They
could for example combine the Duck Tour with a breakfast, lunch or dinner (depending on the time of
the tour) in one of the hotels/restaurants of the De Souza Group. This way, the company can create an
ecosystem consisting of all divisions of the group. By doing this, the activity takes longer than one hour
and can last for half a day, which might be more interesting for the clients. To examine this, it is
suggested to execute a survey that analyzes the real needs of the customers.
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Strengths:
- Good relationship between both companies
- Expertise in tourism industry (DS Group + Dhond Group)
- Close relationship with owner of patented technology
- Procurement of raw materials from India (= less duties)
- First-mover advantage on Goan/Indian market
Weaknesses:
- Strategic uncertainty (new in India)
- Low availability of information about the industry of waterbusses
- High bargaining power of suppliers (technology, chassis)
- First-mover disadvantage
Opportunities:
- GTDC marketing campaign
- Possibility of market monopoly
- Creation of integrated tourism ecosystem
- Expansion of waterbusses to other uses: rescue operations, logistical solutions, navy, etc.
- Increasing tourist numbers
Threats:
- Introduction of new indirect competitors (at the same time) that are also fairly unique (hot air balloon, seaplane, ...)
SWOT-Analysis Water buses
Figure 6: SWOT-analysis
3.4 SWOT-analysis To summarize all three perspectives, a SWOT-analysis has been executed. All dimensions are explained
thoroughly in the figure so that no further explanation is needed. Everything that is mentioned in the
figure, can be found in the analysis of the perspectives.
Chapter 4: Conclusions and recommendations
4.1 Conclusions A short conclusion will provide an overview of how the main problem statement was answered:
What is the feasibility of offering an amphibious vehicle tourist service in Goa, based on a market
study?
Goa Duck Tours wants to target mainly the domestic tourists market. It has been examined whether
or not this is the best choice. There are a lot of advantages of targeting this part of the tourist market.
First of all, their average stay is shorter compared to foreign tourists and they spend bigger amounts
of money. As the Duck tour allows them to see a big part of Goa’s heritage, this is a good opportunity.
Secondly, as can be derived from the graphs, the potential growth in the next 3-4 years is bigger in the
domestic tourist market. Thirdly, the domestic tourists offer a more stable supply of tourists, even in
non-peak periods. Although, it is not recommended to completely ignore the foreign tourist market as
they bring in a lot of people from other parts of the world and can ensure some international word-of-
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mouth marketing. From the five forces analysis it is inferred that the industry attractiveness for water
buses in Goa is high. As for the high cost inputs the bargaining power of suppliers is high and the exit
barriers are on the higher side, but the sector is not unattractive as the bargaining power of consumers
is very low, entry barriers are high and there are no substitutes for the product in the same segment
of the market. Some of the challenges of Goa Duck Tours for this market is that first of all they have to
be able to keep the tourists interested in the service. Secondly, they might want to be careful with
putting all bargaining power at the supplier’s side.
The bullseye provides a visual overview of the second perspective: consumer. In the middle of the
perceptual bullseye is the Brand Mantra. This is what the product or service stands for. How Goa Duck
Tours will do this, is by offering as a bare minimum all the characteristics that the competitors already
offer (the PoP’s). Then, to differentiate itself, Goa Duck Tours will present itself as more unique, more
connected to the nature and affordable (see perceptual map). Some reasons to believe (substantiators
or RTB’s) that they will offer all of this are listed in the third circle: a humorous guide, a unique design
(first in India) and an advanced, safe and exciting technology. Goa Duck Tours can create its own visual
identity by e.g. working with an attractive logo and exterior. Also the interior might be different
according to the group that enters the water bus. From the analysis, the idea for the water bus project
is to -at least- start with the Goa Duck Tours as a mass marketing product.
Figure 7: Bullseye
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The unique value proposition of Goa Duck Tours can shortly summarize the third perspective. Goa
Duck Tours wants to offer a unique, affordable Goa heritage discovery with a close connection to the
nature that is different from genuine bus tours and cruises because of the use of both land and water.
Goa Duck Tours also differentiates itself from the new seaplanes and hot air balloons by offering a
more affordable alternative that is equally or even more interesting.
4.2 Recommendations
In this part, some recommendations are given, based on the analysis that has been executed. They are
ranked from most important to least important. So that, if there is a budget limit, the company can
work from top to bottom.
First of all, the company should always stick to its value proposition (see above). Goa Duck Tours should
be projected as a service that offers a unique Goa discovery and provides insights on the local heritage
and natural beauty of Goa, rather than being just another party place. This should be kept in mind all
the time and for every decision. Besides this general recommendation, these are a few important
remarks:
Stay informed
It is crucial to stay informed, on all subjects. The company should keep screening the products
when they are in use to guarantee that all vehicles can keep running in a safe way as there
have been a number of accidents in various countries pertaining to water busses. Hence,
assurance of safety should be paramount. Also, it is suggested to use the calculation template
to stay informed about the financial situation. It allows to see whether everything is still on
schedule to reach earlier defined objectives. More importantly: it can tell when there might
be trouble and when actions should be taken (improve marketing, lower prices, …).
Besides continuous screening of the product and the financial situation, there is also the need
to look at the evolutions on the market. Only by doing that you will be able to react fast
enough. The demand for the water buses should also govern the extension of the fleet in the
future. This way stable occupancy can be assured and premium prices can be charged.
Mind the financials
Concerning prices, it is recommended to use a differentiated pricing strategy as the target
audience consists of many kinds of tourists. Families and businessman should not pay the same
amount. Differentiating based on seasons is also recommended. This can be easily done by
using the seasonal coefficients.
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The most important remark related to pricing is that expectations need to be looked at again.
For example, expecting an occupancy rate of 70% throughout the year is very optimistic. That
is why a sensitivity analysis was executed for this rate. When you don’t have much information
about a situation, as is this case, it is better to have realistic, maybe slightly pessimistic,
expectations than very optimistic expectations.
Marketing as a growing tool
During the introduction phase of the water busses, the advertisement spending should be at
its maximum and offline/traditional promotions such as hoardings, newspapers ads and
billboards seem to be trivial. It is recommended to use digital marketing and social media. Also,
special promotional packages can be employed to increase repeat purchases. Some of the
techniques have already been explained in the promotion section. A recommendation can be
to apply more of an American way of marketing namely putting the majority of the profit in
new marketing campaigns.
As soon as the water bus splashes into the water, it loses its novelty. Therefore, on-board
entertainment is extremely important in order to maintain consumer loyalty and encourage
repeat purchases. The quality of the service would be critical for word-of-mouth marketing.
Branding of the Goa Duck tours is indispensable as it will not only allow the company to charge
premium prices but also will distinguish Goa Duck Tours from any other water bus operator,
in case someone ventures into this business. The brand identity can enforced by the use of
logos, mascot figure, appearance, associations, merchandising, etc.
Other tours, uses, segments and suppliers
It has been concluded that initially, the company intends to roll out tours to target all market
segments. After this, it is recommended specific routes should designed for different target
groups. Tie-ups with water sports operators can be an attractive offerings to adventure
enthusiasts. Also, integrated tours with sea planes/hot air ballooning is a plausible
opportunity.
After targeting the tourist market and gaining popularity along with acceptance, water buses
can be expanded to various other uses such as logistics, public transport and rescue
operations.
Don’t forget the foreign tourists. They might also be interested in a Duck Tour. In general: do
not focus too much on only one segment, this is dangerous as there will not be a backup plan.
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The bargaining power of some suppliers (see Porter’s five forces analysis) is very high. This is
not very desirable from the point of view of both companies. That is why it would be
interesting to look for alternatives in case something happens.
4.3 Limitations and assumptions
This work has tried to discuss the research question as detailed as possible. Of course there have been
factors that prevented us from delivering a perfect report. First of all, there were not much data to
work with. Besides some general data concerning tourist arrivals, duration of stays in India and a range
of average spending, we didn’t know anything about the possible consumers of the Duck service.
Therefore we have been obligated to make assumptions. The segmentation exercise for example, is
partially based on groups that seemed interesting to us without having a proof for that. To make a
more founded segmentation, a new survey should be executed.
Then, for the third perspective we go some information about the product and place, and some specific
numbers for the pricing part. These numbers have been thoroughly examined and analyzed but the
reader should be careful when going through the results. The data that are used, were rather general
and not very accurate. Assuming that the monthly fixed costs are exactly 500.000 rupees (including
some variable costs that have been turned into fixed costs) is maybe too simple. The same counts for
the willingness to pay. 500 to 1000 rupees is a very broad range with 500 still being a very high amount.
Also, assuming an average occupancy rate of 70% throughout the year is very optimistic. The analysis
has been executed correctly but because the data are obtained based on a lot of assumptions, we have
to be careful to make conclusions.
Throughout the work, everywhere where there have been some limitations or everywhere where
assumptions were made, it is stated. In that way, the report can still be useful when the assumptions
are changed.
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Sources and references
Bob De Wit, R. M. (2010). Strategy Synthesis. Hampshire, United Kingdom: Cengage Learning EMEA.
Boston Duck Tours, n.d.; London Duck Tours, n.d.; Ride the Ducks of Seattle, 2014.
Corporation, G. T. (N.D.). Home Page : Goa-Tourism. Retrieved September 11, 2015, from Goa-
Tourism: http://goa-tourism.com/
Department of Tourism, G. o. (2015, September 11). Statistics:Department of Tourism, Government
of Goa, India. Retrieved September 12, 2015, from Department of Tourism, Government of Goa,
India: http://www.goatourism.gov.in/statistics
Department of Tourism, G. (N.D.). Tourist Statistics 2012. Panaji,Goa: Department of Tourism,Goa.
H. A. (N.D.). About Us: Hot Air Ballooning. Retrieved September 11, 2015, from Hot Air Ballooning
Goa: http://www.hotairballooningingoa.com/
Philip Kotler, K. L. (2014). Marketing Management-A South Asian Perspective. New Delhi: Pearson
Education Inc.
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Annexes
Part 1: before Goa
Preparation JIIS2015 Goa – De Souza Group
1 Waterbusses/Amphibions: a definition and introduction
Waterbusses are vehicles that combine two traditional ways of transport. In an advanced ‘amphibious design’, a
bus and a boat are combined to provide a unique way of transport, not only can it be used for day-to-day commuting
but it can also serve touristic purposes. With a length of approximately 11m, a width of approximately 2.5m and a
height of 3.5m the amphibion can transport up to 34 persons
plus the driver. The gross vehicle weight is approximately 12
tons. The waterbus is able to drive on normal roads at a
speed of 95 kilometers per hour and sail at a speed of 8 knots,
which is around 14 kilometers per hour. Being able to sail for
about 800 kilometers, it can most certainly provide a unique
experience to tourists in Goa and its surrounding areas.
Moreover, due to its inexpensive and readily available parts,
it offers a cheaper alternative to more expensive, traditional
boats. The vehicle is able to enter and exit rivers using
existing ramps.
In what follows, we will brainstorm about possible (touristic)
usages for the vehicle. Secondly, we will formulate a research question and subquestions and take a short look at
the competitors in the market. We will examine the market potential not only for traditional touristic uses but also
for tours, planned trips, traditional transport, logistical purposes, ... We will do this by drawing up a questionnaire
about the interests of the tourists and people in Goa/Calangute and by gaining knowledge about the most popular
touristic attractions.
Based on website: http://www.adindia.us
2 Brainstorm and desk research 2.1 Brainstorm During our brainstorm we distinguished a few possible main uses for the waterbus. The brainstorm can be found
in full in the mindmap on the next page. We came up with six options for the waterbusses. We will now shortly go
through all of these options.
1. Purely Touristic: If the company wants to serve purely touristic purposes, we suggest that they incorporate
the following things in their offers. It can be very interesting to organise some tours that are mainly
focused on the nature and the culture of India, more specifically the region of Goa. We thought of three
possible Island Tours (Ilha de São Jorge, Ilha Grande and Pequeno). Divar Island or other inland islands
are also a possibility and are reachable via the rivers. They are home to a lot of churches, temples, musea,
local markets and astonishing nature scenes (the Goa mangroves, Bird Sanctuary, …). The second
alternative can be more adventurous tours (see point 2 and 3).
2. Company Offers: During our brainstorm we thought about a way on how the company can offer the
touristic tours. We suggest that they create multiple fixed offer formulas in which they combine some
activities.
a. 2 or 3 adventure tours: Here the company can offer a combination of various adventurous
activities (listed below) on or around the islands that are listed in the first bullet point or on the
island rivers (kayaking, …).
b. 2 or 3 cultural tours: Here the company can offer a combination of various cultural activities (a
more relaxing alternative), in which the tourists visit multiple cultural places and enjoy the Indian
nature.
3. Adventurous: As mentioned above, another option is to offer some more adventurous activities. Many
tourists like to spend their holidays in a more active way. We came up with the following ideas:
a. Hiking/Camping: on islands (advised) or inland. Option to pass the night in a tent plus cook on a
woodfire.
b. Cliff Diving: if possible (islands).
c. Snorkling
d. Kayaking: around the islands or on inland rivers (+ combination with cultural tour?)
4. Extra ideas: We would also like to incorporate some of the waterbusses unique features. One of the key
features is the ability to drive on both land and acces the water with the same vehicle. That is why we
recommend offering some kind of formula in which the waterbus picks up tourists at previously agreed-
on points or at the tourists’ hotel. These pick-up points can be hotels/bars or restaurants with which we
have an arrangement. Also possible: certain bars or hotels that offer a room or a dinner in combination
with a touristic tour. Extra idea: a culinary tour in which the passengers of the waterbus can taste one
unique dish, meal or drink at every place they pass.
5. Logistical solutions: possibility of incorporating a logistical function in the company offer. For example:
providing the islands with food or materials.
6. Public Transport: Use of the waterbusses as a commuting service, trying to avoid traffic jams (using the
rivers or the sea) and using fixed pick-up points (‘car pooling’)
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Figure 1: Mindmap
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3 Research question and subquestions 3.1 Research question: What is the market potential for waterbusses in Goa, not only for touristic tours but also for other possible uses?
3.2 Subquestions 3.2.1 How big is the interest for purely touristic activities compared to logistical/commuting solutions?
3.2.2 What kind of touristic activities are preferred by the travelers in and around Goa?
3.2.3 What amount of money are tourists prepared to pay for the services/tours?
4 Qualitative research 4.1 Questionnaire – interviews
We expect to work on these subjects with the help of the Indian students as we do not yet own the necessary
(local) knowledge.
PREPARATION JIIS2015 GOA – DE SOUZA GROUP
AMPHIBIOUS WATER BUS
1. Background Research
We have been doing thorough desk research since we have received the details of the projects. We have
been exploring about the countries and places where the concept of amphibious vehicles is already in place.
Duck tours are quite popular in river and lake cities like Austin, Baltimore, Cincinnati, Washington DC
and Belfast.
In India, though it is not a new or an unheard concept but still is at a nascent stage. For instance, the state
of Andhra Pradesh has decided to start amphibious bus tours to pilgrimage places. The Andhra Pradesh
government is introducing an amphibious bus that will undertake a quick pilgrimage tour, a move they say,
is the first of its kind in the country to give the much-needed boost to temple tourism in the state.
Also, In India, only 0.3 percent of people use water transport and only three percent use the same for
transporting goods via inland waterways. In China, 44 per cent of people use waterways. Mumbai, Thane,
Konkan and Goa have a long coastline and waterways can be effectively used.
Safety issues with water bus in various countries:
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Great Britain's first amphibious bus service (2011) hit a slight snag in testing - a component failure halting
the Stagecoach Amphibious Bus in its third crossing of the river Clyde between Renfrew and Yoker in
Scotland. The bus stopped after a clunking, grinding noise as it went to exit the river. The noise turned out
to be a loose airbag at the rear - the coach was elevated out of the water by a series of such flotation devices
connected to the suspension, and one of them had worked its way loose.
News in 2013: Tourist terror as amphibious duck bus carrying 31 people sinks in Liverpool's Albert Dock
for the SECOND time in three months.
Successful Touristic Water bus tours in STOCKHOLM: OCEAN BUS
2. Scope and possible uses of Water bus in Goa
The only two issues with the water bus that we could come across were Maintenance issues and Safety
issues. While we were researching, we came to know that the company (ADI) has sourced more than 80
per cent of the required components indigenously. This would bring down the maintenance costs as the
parts would be readily available. The maintenance cost of a typical T-Duck bus is approx. $10,000 per year.
We expect this would come down as the components are produced indigenously.
After brainstorming, we could come up with the following possible uses for the water bus (these exclude
the ones already mentioned by the Belgium students):
City Tours
As water bus can run both on land and water, one of the possible uses can be City tours. In Goa, we have
the traditional city bus tours but they are limited to the land only. By using this advantage of the water
buses, we can expand the travelling scope for the tourists. The tourists can visit Hotels, Churches, etc, along
with the beaches, islands, etc.
Public Transport
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Here, we need to study and map relevant service routes for the commutation of general public. We need to
prioritize service areas according to the passenger demand, the proximity to Hotels and Universities
and population/employment concentration. For instance, Students of a College that is near the coastal
lines or the college students that reside in the coastal villages can use the water bus facility. Also, Road
transportation is difficult in Goa during monsoon season; hence, water bus can be an effective substitute.
Emergency Rescue Service
Water bus can be a useful mode of transport when it comes to Emergency rescue areas. Water bus can easily
be operated by a driver and is safer than a typical open boat. Also, it can accommodate many persons at a
time i.e. the capacity of a water bus is more.
Adventure Tours
The existing boats that are used in the touristic or adventure tours are bumpy and uncomfortable. The water
is faster than a boat and it can run for almost 800 km, therefore, it can be a good means of transport to reach
nearby inaccessible islands.
3. PROJECT PLAN LAYOUT:
Desk & background Research (already done).
Preparation of The questionnaires.
Study of the local tourist Market & the competition.
Identification of the various tourist activities in Goa.
Gauging the interests of the local public and the tourists.
Checking the feasibility of each possible use.
Notes 1st Skype-meeting (24/08/2015) Analyze current supply of tours in Goa
- how do waterbusses fit in this market - Influence of consumer psychology (information needed: Carlos) - Gaps and opportunities - Focus on domestic tourists/navy/army/rescue?
Financial - Invest in marketing? Online and/or physical?
Ideas - Analyze current tours (f.e. river cruises)
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- Background of the industry - Market analysis + what is expected from the waterbusses? Not only in Goa, look at the entire Indian market Wait for information (Carlos – Tuesday 25/08)
Information - Surveys already completed in 4 Indian states. Age: 25-45 years old What prices are customers
willing to pay for a 1h tour (25% water/75% road)?
Goal - “Think as a group of strategic advisors”
- Don’t execute a survey (already completed) Strategy instead of data collection
Agenda - 24/08-25/08: receive information from Carlos
- 25/08 or 26/08: Skype- meeting with fellow Indian students determine direction/scope
Afterwards: discuss direction with Carlos
Part 2: in Goa 1. Organizational structure
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2. Water buses illustrations
3. Two –already developed- routes
TOUR 1: HERITAGE ROUTE (OLD GOA)
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TOUR 2: HERITAGE ROUTE (CHORAO)
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4. Calculation of the seasonal coefficients (based on 2013 data)