A Report onResponsible Tourism Business in Nepal

with reference to Mountain BikingSubmitted To:Mr. Pankaj Pradhananga

Submitted by :

Neetika Verma |Prashant Bajracharya | Sujin Joshi | Susmriti ShresthaAce Institute of Management

Sinamangal, Kathmandu

13th December 2012

Executive Summary

As more and more tourists pour into the country, the expectation and need of the tourists diversifies. As an attempt to offer something unique and different, we have come up with the concept of responsible tourism which is just beginning to raise its head in the international arena. We are confident that the notion is slowly yet certainly catching up and spreading rapidly. Responsible tourism demands a lot of considerations and respect to nature and not everyone can afford to participate due to various reasons. We have target the high end tourists, who are environment conscious and are willing to experience the thrill of ecotourism adventure. This brief report proceeds by describing the concept of responsible tourism with a brief overview of the state of tourism business in Nepal. As the society is gaining more and more conscious towards the ecological and environmental issues, we cannot lag behind in this regard. Hence the concept of responsible tourism whose main objective is to take nothing from the environment except the photographs and leave nothing behind except the footprint in the mean time contribute to the society by any means possible. The second part of the report describes the marketing plan for responsible tourism. We have come up with the traveling agency Eco planet travel and tours whose main focus will be to provide travelling arrangements and information specifically to mountain biking. In this brief marketing report, we present with the marketing strategy for the newly established firm, the action plans, the product (service) review and the budget that will be involved in the firm.

Table of Content S.No.TitlePage No.

Chapter I :An overview of Responsible Tourism

1.1Introduction

1.2Responsible Tourism

1.3Nepal and need for responsible tourism

1.4Adventure Tourism

1.5Biking in Nepal

Chapter IIMarketing Plan

2.1Objectives and issues

2.2Market Segmentation

2.3Marketing Mix

2.4Marketing Strategy

2.5Market Research

2.6Market Organization

2.7Action Programs

Chapter IIIConclusion

Bibliography

Chapter I

An Overview of Responsible Tourism

1.1 Introduction:

The contribution of tourism to the development and economy of Nepal is evident from the number of businesses and employees dependent on it. From luxury hotels employing thousands down to individuals such as a porter, tourism now defines much of Nepal in terms of the livelihood of people of many places.At a brief glance, tourism with the benefits of foreign revenue and employment is always a welcome addition. Tourism however, is a phenomenon that inherently consists of externalities since it involves the consumption of resources by outside actors.

With its rich biodiversity, varied geomorphology, the Himalayas and cultural diversity, Nepal is an ideal destination for tourists. With immense untapped potential for further tourism development, Nepal could benefit even more if tourism were to be managed sustainably.

However, the degradation of the natural state of the environment pollution, loss of wildlife and habitat, problems with waste management, adverse impacts resulting in decline of local culture and heritage etc. have been documented time and again highlighting the negative impacts of tourism. Tourism is thus a double-edged sword with obvious benefits but also with serious irreversible negative impacts the same being exemplified in Nepal. Considering the mentioned dependence of Nepal on tourism, ensuring that tourism is sustainable is key to Nepals economy and future.

1.2 Responsible TourismBy definition, responsible tourism is tourism that creates better places for people to live in, and better places to visit.

To aid understanding, the concept of Responsible tourism can be understood through Sustainable tourism, the goal of both being the same - sustainable development. While Sustainable tourism points at the obvious need for sustainability, Responsible tourism means taking the initiative, understanding actors involved, studying the impacts and benefits and spreading them out equally, in other words, spreading the responsibility for both impacts and benefits thus ensuring the ability of all levels of actors to act accordingly be government, tour operators, hospitality industry and even individuals such the tourists themselves.

Responsible Tourism involves the following things:Minimizes negative economic, environmental and social impacts

Generates greater economic benefits for local people and enhances the well being of host communities

Improves working conditions and access to the industry

Involves local people in decisions that affect their lives and life chances

Makes positive contributions to the conservation of natural and cultural heritage embracing diversity

Provides more enjoyable experiences for tourists through more meaningful connections with local people, and a greater understanding of local cultural, social and environmental issues

Provides access for physically challenged people

Is culturally sensitive, encourages respect between tourists and hosts, and builds local pride and confidence.

The distinguishing characteristic of the approach is the focus on the responsibility of role-players in the tourism sector, and destinations in general, to take action to achieve sustainable tourism development.

Responsible tourism is a global phenomenon and approach that invites people to live locally, think globally and respond personally. It maximizes the benefits and minimizes the negative effects of tourism by engaging the local communities, promoting the use of local good, following best environmentally sound practices and so on. Tourists are now increasingly aware of the need for their travels and holidays to be 'green' and responsible. Following responsible tourism not only guarantees the preservation of the environment but also ensures that Nepal receives tourists who demand green travels.

1.3 Nepal and the Need for Responsible Tourism

The need for responsible tourism stems from awareness awareness of environmental issues, degrading qualities of life support system. Tourism on a global scale is one of the key factors in environmental change. Awareness of environmental issues however is causing a massive transformation in tourism with travelers and locals seeking ways of building constituencies with the shared goal of making tourism sustainable and responsible.

Tourism in Nepal, despite its importance is not sustainable. Nepal has neither an effective waste management program nor strong developmental attributes and has suffered from long periods of political instability. Given these aspects, Responsible tourism is crucial to ensuring the sustainability of tourism is obvious. Responsible tourism divides costs and benefits across all actors without depending solely on the government enabling individuals and businesses as well as communities to do their part. This means greater benefits to both the hosts as well as to the tourists. Responsible tourism, with its focus on sustainability and sustainable development has the potential to connect many smaller ideas together.

1.4 Adventure tourism:

Adventure travel is one of the fastest growing but least understood forms of international tourism. Nepal is one among the best destinations in the world for adventure tourism which offers an excess of outdoor activities from Paragliding near the mountains to waiting for the Bengal tiger in the dense forest of Chitwan, to experiencing zipline in Pokhara, bunjy jumping at Bhote Koshi, to name a few. The history of adventure tourism in Nepal starts from the early attempts to ascend worlds highest peak Mt. Everest some about five decades ago. The role of Adventure Tourism in the economic development of remote areas and its impact on local community, economy, and the environment are not fully figured out, even though adventure tourism has been adopted enthusiastically by many countries like Nepal. Here we are not to analyze the impact of adventure tourism in Nepal but we believe that adventure travel will bring many positive impacts on Nepal's national economy, indigenous populations, tourism industry, and conservation development. With its steady growth, adventure tourism in Nepal will play an increasingly important role for national and local development in the frontier areas.

Mountain Biking is one of the adventure tourism which attracts a number of tourist in Nepal. Mountain Biking is established to show the best way to explore the mystic parts of Nepal, Tours offered are especially designed to take on the best trails where other mountain bikers rarely get a chance to ride; deep in to the Himalayan culture and lifestyle.

Mountain Bike is abicyclecreated for off-road cycling. This activity includes traversing of rocks and washouts, and steep declines, on dirttrails, logging roads, and otherunpavedenvironments activities usually calledmountain biking. Since the development of the sport in the 1970s many new subtypes ofmountain bikinghave developed, such ascross-country (XC)biking, all-day endurance biking,Free ride-biking,downhillmountain biking. Each of these place different demands on the bike requiring different designs for optimal performance.

Cross Country biking: It is the most common discipline ofmountain biking. While less publicized thandownhill cyclingas it is more difficult to televise, it garners the highest levels of participation both recreationally and competitively. It is defined by the terrain on which it is performed. XC courses and trails consist of a mix of rough forest paths andsingle track (also referred to as double track depending on width), smoothfireroads, and even paved paths connecting other trails. Riding or racing is also only deemed cross-country if the technical complexity of the trails is easy or moderate.

Downhill Biking: As the name of this discipline implies, downhill races are held on steep, downhill terrain, resulting in high speed descents, and with extended air time off jumps and other obstacles. The width of the course can vary greatly over the length of the course, but it is typically between about 2m and 10m wide. Riders have one attempt to reach the finish line in the shortest amount of time while remaining between the tapes. The rider must choose their path (or line) by compromising between the shortest possible line and the line that can be travelled at the highest speed.

1.5 Biking In Nepal

Nepals diverse terrain is what mountain bikers dreams are made of. Biking offers an environmentally sound way of exploring the country. It is possible to go biking the entire length of Nepal. Centuries old dirt roads and trails offer a chance to go on extended trips to exotic locals like Annapurna, Everest and Kanchenjunga areas. Gear bicycles are recommended when riding through touch terrain. Mountain bikes are available for rent for a day or longer in numerous bicycle rental outlets in and around Kathmandu, Chitwan, Dhading and Pokhara through off routes that weave in and out of the cities. Food and accommodation are easily available around valley and the main trail.

Nepal Mountain Biking tour was in the mid-1980s that biking activity really took off in Kathmandu. Enthusiasts flew with their bikes from Hong Kong to Tibet to answer the call of the wild steppes. The two-week journey from there over the passes (17,000 ft) to Nepal is what sparked it all off. Even today Kathmandu is a mecca for mountain bicyclists, as it draws thousands of enthusiasts from all corners of the world. The biking trips within Kathmandu Valley allow you to enjoy its hidden pockets rarely frequented by westerners which give you a chance to see the other back side of Kathmandu. Other biking trips include City Tour with a difference biking to the famed popular historical and medieval places of Kathmandu, Bhaktapur and Patan, viewpoint of Nagarkot and Kakani, the quiet sleepy town of Sankhu and Budhanilkantha.

Mountain Biking in Nepal is a significant part of the adventure tours in Nepal. It is a popular sporting activity in the country and is undertaken by tourists and adventure lovers. Mountain biking ensures that travelers have a feel of the natural beauty of the country by braving the natural odds. The idyllic setting of the country, the rugged mountainous terrain, deep gorges and beautiful valleys have paved the path for tourists and trekkers to embark on Mountain Biking in Nepal.

The rugged terrain in Nepal and the steep and winding paths have always attracted trekkers and adventure lovers to undertake Nepal mountain biking trips. It requires immense physical strength and technical skill to overcome the steep hills while mountain biking. For sports freaks and adventure lovers who wish to accept the challenge of scaling some of the steepest mountains in the Himalayas, mountain biking in Nepal can be a tremendous experience.

Mountain Biking in Nepal provides adventure lovers with immense scope to overcome natural odds under trying circumstances. The region around Kathmandu Valley has some of the popular tracks for mountain biking. The routes pass through local villages, temples, Buddhist stupas and beautiful valleys. While biking, travelers need to take adequate safety measures against landslides and blizzards. The bikes should also be strong and should be able to withstand pressure. Some of the popular points of sightseeing in Nepal also fall in the trip.

Nepal offers varieties of landscape, trails that can be used for mountain biking. This sport will be another big event that will give international and domestic tourist different taste.

Chapter II

2. Marketing Plan

2.1 Objectives and Issues

In relation to the product launch, our major issue is the ability to establish a well regarded brand name linked to a meaningful positioning. We will have to invest heavily in marketing to create a memorable and distinctive brand image projecting innovation, quality and value. We also must measure awareness and response so we can adjust our marketing efforts as necessary.

2.2 Market Segmentation:The market segmentation and corresponding product differentiation strategy can give a firm temporary commercial advantage. Market segmentation will help Mountain Biking identify segments in the market that are its potential customers. It would help the company adopt a sniper approach by singling out segments and focusing on those segments. Hence, the products of the company are segmented as follows:

i. Demographic Segmentation:According to this segmentation, the market will be differentiated according to age group and income level. For the core product of the company, which is Downhill Mountain biking, the market segment will be affluent individuals from 18 35 age group. Similarly, for other products with less difficult trails, the company can also target individuals above 18 -35 age groups.

ii. Behavioural Segmentation:The product that is offered by the company is for extreme sports lovers for whom fitness is very important. In this, the market is segmented for individuals who are outdoors, adventure enthusiasts and have passion for exploration. iii. Geographic Segmentation:The products of the company will not only target international tourists but also individuals residing in Nepal. Presently, in the urban areas of Nepal such as Kathmandu there are many cycling groups that meet frequently and explore various trails. Hence, the company also has the potential to attract a sizable amount of urban domestic riders.

Similarly, there are many downhill racing venues in countries like France, Germany, Italy, Russia, Portugal, United Kingdom, Switzerland, Canada and others. This implies that the target customers for the company are individuals of these countries.

2.3 Marketing Mix:The marketing mix is a business tool used in marketing products. The marketing mix is crucial when determining a product or brand's unique selling point helping it differentiate a product from its competitors .The marketing mix consists of the product, place, promotion and pricing strategy. These elements are discussed in detail below:

Product The Product is the Downhill Mountain Biking itself. It is one of the latest and extreme adventurous sports in Nepal and is also believed to be very popular adventure sport in many countries. Hence it can be an attractive and feasible Tourism Product in Nepal as well.

Place: A lot of sports are mainly focused on urban areas only. But we want to operate this Tourism product in rural area so that due to the success of Mountain Biking, the rural area will also benefit from the tourism economically. We will be focusing in different hills of Kathmandu, like Nagarkot, Hattiban, Nagarjun, Kakani etc. Moreover, we also offer biking packages for jomsom and mustang. Aannapurna base camp will be focused for pro riders/ interested riders. Mountain biking trails in Jomsom and Mustang is considered in top 5 best mountain biking trails in world

Pricing: A lot of training and monitoring is necessary for operation of this product and also the setup cost is considerably huge. Additionally, it is related with adventure, passion. So the product will be priced as a premium product mainly targeted to foreign riders and extreme sports lover between the age group of 18 to 30 yrs .In simple words, the product will be a high end, high expenditure product. The pricing will be covering the transportation (in supporting jeeps ), breakfast or Lunch( dinner for overnight package), Bicycle with helmet, Guide with mechanical backups and all Entrance Fees.

Promotion By integrating all messages in all media, we will reinforce the brand name and the main points of product differentiation. Research about media consumption patterns will help our advertising agency choose appropriate media and timing to reach prospects before and during service introduction. Thereafter, advertising will appear on a pulsing basis to maintain brand awareness and communicate various differentiation messages. The agency will also coordinate public relations efforts to build the Sonic brand and support the differentiation message. To create buzz, we will host a user-generated video contest on our Web site. To attract, retain and motivate channel partners for a push strategy, we will use trade sales promotions and personal selling. Until the brand has been established, our communications will encourage purchases through channel partners rather than from our web site.

2.4 Marketing Strategy: Our marketing strategy is bases on a positioning of product differentiation. Since there are only a few competitors offering ecotourism, we believe that our differentiation strategy will be well received by the upper end tourism who values our service. Our secondary target will be anyone who are well aware of the global issues and are willing to pay for the quality of service that we offer them. Positioning Strategy Positioning strategies can be conceived and developed in a variety of ways. It can be derived from the object attributes, competition, application, the types of consumers involved, or the characteristics of the product class. Tours offered by Mountain Biking are especially designed to take people on the best trails where other mountain bikers rarely get a chance to ride; deep in to the Himalayan culture and lifestyle. The type of positioning strategy we will be using is Product characteristics or customer benefits. After all, it is all about customer experience and satisfaction when it comes to adventure travel. The only thing that can differentiate us from other competitors is the ultimate experience we provide to the customers.

Branding Strategy: Branding resides in the realm of Outside Perceptionhow people outside our organization perceive it. We provide downhill biking, cross-country ride, and adventurous ride. The type of branding we would be using is destination branding. Authenticity is indeed what many travellers are looking for, but authenticity is a difficult concept to market and monetize. In marketing, "authenticity" has become a clich - much like the word "unique". If every destination is about "authenticity", authenticity becomes a commodity. Providing biking experience to places where travelers can have the authentic experience creates a different brand. However, it is important to remember that a destination's culture is merely a feature and that many destinations have culture to offer. Consumers ultimately want to know what the experience will be like (how will it be different from any other location) and how will it make me feel (meaningful high order benefit). Without branding, it is almost impossible to achieve a meaningful and sustainable point of differentiation.2.5 Marketing Research: Using research, we will identify the specific features and benefits that our target market segments value. Feedback from market tests, surveys, and focus groups will help us develop the service. We will also measure and analyze customer's attitudes toward competing brands and products. Brand awareness research will help us determine the effectiveness and efficiency of our messages and media. Finally, we use customer satisfaction studies to gauge market reaction. 2.6 Market Organization :

Chief marketing officer, Mr. Prashant Bajracharya, holds overall responsibility for all of the company's marketing activities. The figure below show the structure of marketing organization. The marketing team will handle national sales campaigns, trade and consumer sales promotions, and public relations efforts.

2.7 Action Programs : The company will be launched in February. Following are the summaries of action programs we will use during the first six months of next year to achieve our stated objectives.January: We will launch a sales promotion campaign. We will create buzz by providing the overly discounted package to selected product reviewers, opinion leaders, influential bloggers, and celebrities. February: We will start an integrated print/radio/TV/Internet campaign targeting high end consumers. The campaign will show how many benefits the package will offer and emphasize the convenience of the package.

March: We plan to roll out a new national advertising campaign. The radio and TV ads will feature celebrities, telling their experience of ecotourism destinations. The stylized print and online ads will feature avatars of these celebrities.

April: Our TV campaign will add a new tag line promoting the service as a gift. We will analyze the results of customer satisfaction surveys for use in future promotions and to provide feedback for product and marketing activities. Chapter IIIConclusion

As more than sixty percent of the country is hilly terrain, there is a very good opportunity for the mountain bike adventure seekers and we can target both internal and external tourists. So there is a good opportunity to cash-in this business. As per the demographic segmentation, the target group belongs to 18-35 years age group. The gears and accessories provided to them will be of higher caliber and as per the international standard, as it is largely targeted to high end customers. The marketing strategy for this business will be based on positioning of product differentiation. This means that we will be providing the services differently than some of the competitors available. Our main targets are the high end customers as we will be providing high end products, the cost will definitely be higher than the competitors. The type of positioning strategy we will be using is Product characteristics or customer benefits. After all, it is all about customer experience and satisfaction when it comes to adventure travel. The only thing that can differentiate us from other competitors is the ultimate experience we provide to the customers. Bibliography :

1. www.trek-in-nepal.com2. http://en.wikipedia.org/wiki/Tourism_in_Nepal3. www.traveltips.usa.com