UNIVERSITY OF WORLD

ECONOMY AND DIPLOMACY

Group Project

Topic: “Eastern pearl Uzbekistan”

Asatullayev Fatxullo
Abdualimov Lazizbek
Usmonova Nozimaxon
Axmedova O’g’ilshod

Tashkent 2020
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 Project
I. Introductory Page
a. Name of the product. “Eastern pearl Uzbekistan”
b. Nature of the product. Tour agency. The tourism industry has undergone
rapid growth of unsurpassed nature over the last several decades. This has
mainly been due to the advent of a 'borderless' world and increased information
dissemination about the majestic sceneries throughout the world. We are on the
brink of penetrating a lucrative market in a rapidly growing industry. The
current trend towards an increase in the number of tourists entering the country
presents an opportunity for “Eastern pearl” to penetrate the market. An
opportunity for our company’s success exists because the national tourism
industry is growing at a rapid pace annually. “Eastern pearl” is poised to take
advantage of this growth and moderate competition in the city travel portion of
the industry, with a dedicated and experienced staff, excellent networking, and
effective management and marketing. Agency intends to provide travel and
adventure packages to tourists primarily in the Uzbekistan region, but also the
whole of Central Asia. Services and products provided by our agency will
initially include pre-arranged tours, custom packages according to clients’
specifications, travel consultation, and as time progresses making reservations
for lodging amongst other related services.
c. Statement of financing needed. To organize agency, buy equipment and
connect with hotels, avia-companies and international tourist organizations, such
as United Nations Tourist organization (UNWTO), the United Federation of
Travel Agents’ Associations (UFTAA), World Travel and Tourism Council
(WTTC) and World Association of Travel Agencies (WATA) etc. we need
78 850 USD:
1. Rent of building – 900 USD per month, 10 800 USD for year
2. Equipment: 5 computers – 650x5=3 250 USD, Furniture – 4 300 USD, 6
conditioners – 1 800 USD, stationery – 300 USD,
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 3. Membership fees for international organizations: UNWTO – 5 000 USD,
UFTAA – 3 700 USD, WTTC – 2100 USD, WATA – 2 600 USD
4. Staff: Manager – 500x12=6 000 USD, chief accountant – 400x12=4800
USD, lawyer – 350x12=4200 USD, other staff – 5x12x200=12 000 USD.
5. Advertising – 15 000 USD.
6. Other expenses – 3 000 USD
II. Marketing Plan
a. Idea generation. At the beginning of this project all members of our team
have personal idea, for instance O’g’ilshod’s idea was to elaborate new app for
mobile phones, Fatxullo wanted to produce juice, Nozimaxon adhere to the
opinion to produce something that show our mentality, nationality and history of
our country. Lazizbek’s idea was to produce balls for sport game. After that we
decided to screen sphere of tourism in Uzbekistan. Nozimaxon, on the grounds
of increasing tourist potential of our country, suggested to realize idea with tour
agency with narrow program of trips, but O’g’ilshod insisted on reason, that
each tourist has his own opinion, and it will be good for our agency, that
travelers can choose their own point of trip. Javoharla`l added to O’g’ilshods
idea point, that if people choose our routes, we can give them some discounts,
because we will have previously agreements with hotels and other companies in
those routs. By the way, Lazizbek thought it will be good for us to create
something new, unique, in order to have dominant position over competitors.

b. Idea screening. After screening and analyzing all ideas. Our team reject
O’g’ilshods suggestion because it does not depend on our abilities. Fatxullos
idea fell through. Reason of it that we would many big competitors. Lazizbeks’
idea was interesting but less profitable. After discussion, we analyzed all
positive and negative points of each idea and came into collective decision, that
Nozimaxon’s idea is the most acceptable, but we must change some aspects. We
decided to open touristic agency. First of all, when we say about advantages we

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should notice that we must hire only lawyer, other staff we already have,
company’s structure is simple and easy to manage. Main difficulty is to attract
people. To secure our new business we have to collaborate with international
tourist organizations.

c. Concept development and testing. We make up business plan. To

testing our project, we reached out to specialists. First of all, we went to law
consulting agency for settlement our business plan on national and international
legislation. There Mr. Xamdamov M. pointed on some moments and give us
advices. After that we called out tax advisor Mr. Inogamov S. He gave us
critical suggestions to correct regulation of our business. Then, we discussed
possibility of getting credit to our project. Bank officer Mr. Gulomov A., created
contract, which satisfies our needs, with 8 % each year. After all, we compared
our plan with existing tourist agencies. Generally, our project is good, and we
will have few competitors.

d. Marketing strategy development. We will be a company which convey

tourists into Uzbekistan, because other companies send tourists to other
countries. We will attract foreign tourists and create better conditions to local
travelers. We will show them all famous and unique sightseeing of our
motherland, for example Samarqand, Bukhara, Khiva, Kokand and the ancient
city Quva. Also, we familiarize foreign travelers with Uzbek mentality,
traditions and other features of our nation. However, for local people we will
show different side of other regions. Our agency allows satisfactory prices and
flexible system of discounts. However, at all, our marketing strategy will be
based on 7 main principles.
1. We will offer a unique experience. Far too often, travel agencies focus on
marketing their features. They talk about their location, their amenities, and
their luxuries. Instead of selling features to our customers, we will try and sell

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 a unique and enticing experience. When we will write our brochures or
website sales copy, focus on the experience our destination delivers. We rake
into consideration why people travel – to relieve stress, learn a new culture, or
go on an adventure – and market to these feelings and motivations. Travel is
an experience, and it’s vital to focus on the unique experience our agency can
offer for customers.
2. We will never compete on price. Surprisingly few travelers choose their
agents based on the cost. Instead of competing on price, we will compete on
value. Would not be the cheapest budget tour agency, but the best tour agency
in the region. Most travelers are willing to pay a premium if tour agency
offers value that goes beyond what competitors can offer.
3. Be active on social media. Social media is a wonderful tool for the travel
industry. Since repeat customers are so valuable, being able to keep in touch
with fans is a great way to develop an extremely powerful revenue stream.
Create a Facebook page for our tour agency and connect with all customers
directly. Recommend destinations, activities, and special deals on social
media to generate direct sales and valuable feedback from your audience.
4. Focus on repeat customers. Travel marketing It’s far easier to earn another
booking from an existing customer than it is to reach a new one. One of the
primary goals of agency’s marketing team should be finding best customers
and focusing on offering them a great experience. From families that travel
every holiday season to business travelers that need great deals in interesting
place, identify the type of traveler that’s most valuable to us and focus on
building a real connection with them.
5. Ask customers for feedback. Every day, thousands of marketing departments
around the world buy advertisements to reach an audience they know almost
nothing about. Asking customers for feedback is an excellent way to learn
which aspects of marketing are working, and – more importantly – which are
not. Asking customers for feedback is amazingly simply, especially if you do
service.
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6. Write a company blog. Travel-related business benefits from writing a
company blog. Blogging lets you keep in touch with guests, provide useful
data for customers, and increase your website’s visibility to search engines.
7. Treat guests like family. The key to earning repeat business is by offering an
experience our customers can’t wait to return to. We will Think of guests
choosing our tour agency as family members, and go out of our way to offer
an experience they’ll never forget.
e. Business analysis. We analyzed situation in the tourists market based on
works of our possible competitors during the year and find cons and pros.
Because of insufficiently developed transportation services, many tourists was
unsatisfied with this problem. That is why we decided to organize our own
transportation service. From last year statistics we can see the tendency of
increasing amount of tourists but unfortunately the services are not fit on prices.
On the basis of it we will decrease prices and will create new classic exemplary
conditions.
SALES            
FORECAS
T
 Sales January February March April May June
All tourist $12,350 $13,500 $15,535 $26,900 $28,600 $32,800
services
Other $0 $0 $0 $0 $0 $0
TOTAL $12,350 $13,500 $15,535 $26,900 $28,600 $32,800
SALES
Direct Cost January February March April May June
of Sales
All tourist $6,800 $3,500 $5,400 $5,600 $8,600 $7,800
services
Other $0 $0 $0 $0 $0 $0

f. Product development. Our agency invents new original service, “Feel

yourself as a member of Uzbek family”. We choose classic exemplary families
and tourists will live with them for a week or other period. It must be good

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family because this period shows our national lifestyle. There are our other
services:
1. “The city tour” – tourists can choose one city of Uzbekistan and for
several days they will be familiarized with sightseeing of this city.
Amount of days can be chosen.
2. “Express tour” – tourists can choose two or more cities of Uzbekistan
from their favor. They will have an excursion of the most famous places
of each city. Amount of days can be chosen.
3. “Unique tour” – individual trip for tourist. They can choose any historical
places in cities and visit only them. There will be brochures with available
places. (For example someone can visit “Registon” in Samarkand, “Ichan-
Kala” in Khiva and minaret “Kalan” in Bukhara etc.)
g. Test marketing. There are many companies in Uzbekistan, which offers
to go for a trip to foreign countries, but we will be the only one company, that
suggests tour services for foreigners into Uzbekistan. Our new service “Feel
yourself as a member of Uzbek family” is entirely unknown for market. It will
be very interesting for foreigners to live with Uzbek families. There is no service
like ours in other companies that is why we are looking to great success. In order
to test our services we will invite observers from UNWTO, WTTC, WATA,
UFTAA and national responsible companies. They will form first group of
tourists and will test all our services. Our firm will cover all expenses.

h. Commercialization. As we know, commercialization is the process of

introducing a new product or production method into the market and the final
stage of commercialization process is product launch. We advertise and attract
people by media. Previous consumers will tell about us to friends, relatives and
acquaintances. First imagination plays a great role. We will pay a great attention
for our first consumers and attract new travelers. Systematically we will enter
into the market. We must show our services in the most popular Exhibitions.

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i. Distribution. A good distribution system quite simply means the
company has greater chance of selling its product or service more than its
competitors sell. That is why we will cooperate with touristic agencies from
European Union (especially with Germany, Italy, France and Belgium), Asian
countries (Japan, China, Republic of Korea, Singapore, Malaysia etc.)

j. Promotion. The tourism industry is unlike any other because, instead of a

product, we are selling a place and all the things it has to offer. To be successful,
our marketing should constantly put forth the best possible image of our tourists’
destination, while creating interest on a broad scale in as many ways as possible.
First, we must connect partnerships with international organizations in this
sphere like UNWTO, WTTC, WATA, UFTAA. Grant the agency special deals
and promotions for its consumers in exchange for nationwide access to the
customer base. We will have to pay for the privilege, of course, but the return
can far outweigh the expense. In addition, we must show our abilities in
international exhibitions. After some time, when our profits enlarge, we will use
sponsorship for competitions, public events, concerts and so on.

k. Advertising. Advertising campaigns play the main role in promoting any

product. It is important to create a brand for our destination that speaks to what
offer and why. First of all our agency use TV for advertising, also great
influence on people minds have social networks, like Facebook, Instagramm,
Telegram, Twitter and others. We will open our page in these sites including
some attractive activities as quizzes and other mini-games with presents. For
instance, it will be some fact and visitor have 3 variants to answer. For winners
as a presents will be discounts, trinkets, notebooks or pens with national
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symbols. Moreover, we use posters, radio, newspapers and magazines. The main
role-plays advertisement in popular web-resources like [Link], [Link] etc.
For international exhibitions we must prepare our banners, brochures and
videos. In video we will show our historical cities, our best places to visit, our
climate, nature with fruits and vegetables, our hospitable people with ancient
traditions and national costumes.

l. Product forecast. We cannot predict anything, because it may seem

impossible to predict the future, but it is entirely possible to forecast demand
based on the season of the year. For instance, local travelers prefer autumn and
spring seasons, because of moderate weather. What about winter and summer?
In these seasons, our agency would establish discounts and mainly tours would
be for appropriate places. For example, summers in Uzbekistan is very hot, that
is why our trips would pass through highlands or places around rivers.
Furthermore, it will be difficulties with clients. Early years we might not have a
large amount of consumers, as it depends a lot of time to attract foreign tourists.
In this case our agency have to be prepared for non-profitable times, but we
trust, that our innovative ideas will be interesting for foreign and local tourists,
and, after some time will be very profitable.
January February
Number Number
Regions Outcom Income Outcom Income
of of
e (USD) (USD) e (USD) (USD)
tourists tourists
Tashkent 1648 1676 4 3232 3456 8
Fergana 824 838 2 1616 1728 4
Samarkand 1648 1676 4 3232 3456 8
Bukhara 2060 2095 5 4040 4320 10
Khiva 1236 1257 3 2424 2592 6
Andijan 412 419 1 808 864 2
Rep. of
Karakalpaksta
n 824 838 2 1616 1728 4
Namangan 0 0 0 808 864 2
Sirdarya 0 0 0 404 432 1
Djizzakh 0 0 0 808 864 2
Navoi 824 838 2 1616 1728 4
9
Kashkadarya 412 419 1 808 864 2
Surkhandarya 824 838 2 1212 1296 3
Total 9064 9218 22 19392 20736 48
Profit 154 1344
Tourist Fee 44 96

March April
Number Number
Regions Outcom Income Outcom Income
of of
e (USD) (USD) e (USD) (USD)
tourists tourists
Tashkent 5418 6230 14 7344 7956 17
Fergana 3096 3560 8 4752 5148 11
Samarkand 5418 6230 14 10368 11232 24
Bukhara 6192 7120 16 8208 8892 19
Khiva 4644 5340 12 9936 10764 23
Andijan 1935 2225 5 3456 3744 8
Rep. of
Karakalpaksta
n 3870 4450 10 5616 6084 13
Namangan 1161 1335 3 2592 2808 6
Sirdarya 1548 1780 4 3024 3276 7
Djizzakh 1935 2225 5 4320 4680 10
Navoi 3870 4450 10 5616 6084 13
Kashkadarya 1548 1780 4 3024 3276 7
Surkhandarya 3483 4005 9 5184 5616 12
Total 38700 44500 100 66096 71604 153
Profit 5800 5508
Tourist Fee 200 306

May June
Number Number
Regions Outcom Income Outcom Income
of of
e (USD) (USD) e (USD) (USD)
tourists tourists
Tashkent 12012 13776 28 14382 17612 34
Fergana 6864 7872 16 9306 11396 22
Samarkand 12012 13776 28 20304 24864 48
Bukhara 13728 15744 32 16074 19684 38
Khiva 10296 11808 24 19458 23828 46
Andijan 4290 4920 10 6768 8288 16
Rep. of
Karakalpaksta
n 8580 9840 20 10998 13468 26
Namangan 2574 2952 6 5076 6216 12
Sirdarya 3432 3936 8 5922 7252 14
Djizzakh 6006 6888 14 8460 10360 20
Navoi 8580 9840 20 10998 13468 26
Kashkadarya 3432 3936 8 5922 7252 14
10
 Surkhandarya 7722 8856 18 10152 12432 24
Total 87516 100368 204 129438 158508 306
Profit 12852 29070
Tourist Fee 408 612

Total profit 53062

Controls. “Eastern pearl” will be managed primarily by working

owners/partners. The company will engage more of a functional organization
structure whereby people shall be focusing on their prime area of expertise.
However in engaging this organization structure we intend to ensure that there is
open communication between all personnel at all levels. With such a group we
believe it will be simple to communicate with and support one another. As the
company grows there will be more structure to the utilizing, with new
employees being assigned a supervisor or subordinate. When the company is at
its full staff potential, it will operate as any closely held utilizing, but maintain
the personal interest in each employee's personal and family welfare and their
contributions to the [Link] acknowledge the fact that successful recruiting,
motivation, and discipline procedures are keys to the growth of the utilizing.
Hence we intend to promote and maintain good labor relations, strong morale
and high quality work per employee. Liability will be allocated according to
work performed by an employee.

III. PEST analysis for the relevant industry.

In the marketing theory recogises four aspects which influince on business.
There are Political, Economical, Social and Technological.
A. Political:

− Law of the Republic of Uzbekistan "On Tourism"

− Law of the Republic of Uzbekistan "On certification of products and
services"
− Law of the Republic of Uzbekistan "On licensing of certain activities"
11
− Law of the Republic of Uzbekistan "On Export and Import of Cultural
Property"
− The Law of the Republic of Uzbekistan "On protection and use of objects
of cultural heritage"
B. Economical:
− Economic industrialll growth
− Globalization
− Purchasing power parity
− Number of consumers
− Price, Interest and inflation rate
− Exchange rate and currency stability
− Unemployment rate
C. Social:
− Social culture and lifestyle
− Demographic change
− Social safety and benefits
D. Technological:
− Product technologies, e.g. virtual reality
− Communication technologes e.g the internet
− Operationl technologies e.g global distribution systems.

IV. Analysis of competitors

We have identified competing companies, some firmly established, that fill the
same needs as ours. We intend to market ourselves in such a way that with time
competitor customers will choose our service over competitors' on the basis of
our higher quality and informative excursions. A more thorough outline of our
main competitors including their strengths and weaknesses follows:

Advantour Uzbekistan: Located in Tashkent city. Advantour Uzbekistan

Travel Agency Advantour has been operating in the sphere of international
12
tourism since 2003. The Company developed and applied many interesting
group and individual tours to Uzbekistan, Kyrgyzstan, Turkmenistan, Tajikistan,
Kazakhstan, Georgia, Azerbaijan, Armenia and China. It has a great experience
in the tourism industry, as well as set partnership links with tour operators in
Transcaucasia, West Europe and North America. Three offices of Advantour, in
Tashkent (Uzbekistan), Tbilisi (Georgia) and Bishkek (Kyrgyzstan), offer hotel
booking and tour services in the Great Silk Road countries. A professional team
of the company organizes business trips to the countries of the Silk Road for you
and develops exclusive individual tours. Advantour aims at creating interesting
itinerary with attention to details and a comfort for you to enjoy welcoming
Central Asia and South Caucasus.

Anur tour Uzbekistan: Travel agency ANUR TOUR has been operating in the
international market since 2009, providing excursion and complex tours around
Central Asian countries. They work with individual tourists and large groups,
ensuring interesting and comfortable stay in the countries of the Great Silk
Road.

Their professional team organizes all kinds of tourist and business trips, working
separately with each client. We’ll make everything for your comfort, safe and
interesting travel.

Silk road Adventures: SILK ROAD ADVENTURES (trade mark - Simurg

Travel) is specialized inbound tour operator for Uzbekistan & Central Asia. The
company operates on local tourism market since 2003, certified and licensed by
the National Company "Uzbektourism". SILK ROAD ADVENTURES
company puts its main goal as the provision of corporate and private clients with
high quality services.

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 Licence Main areas of activity: hotel reservations and accommodation in guest
houses, visa support, transportation services, development of tailor-made
recreational and travel programs in Central Asia, air and railway ticketing.

Exactly this filling inspired them to found a tourist company for organization of
holidays and journey both for local and foreign citizens. From the day of their
foundation they have put the purpose to perfect and extend the choice of
offering services. Exactly this aspiration moves they ahead.

Eastern
Advantour Anur tour Silk road
pearl
Service Uzbekista Uzbekista Adventure
Uzbekista
n n s
n
High quality service Available Available Available Available
Feel yourself as a
Not Not Not
member of Uzbek Available
available available available
family
Individual work Not
Available Available Available
with each client available
Developing
Not
exclusive individual Available Available Available
available
tours
Possibility of
Not Not Not
choosing any Available
available available available
historical places
Not
Reasonable prices Available Available Available
available
Professional guides-
Not
translators in Available Available Available
available
different languages
Not
Available Available Available
Visa support available
Not
Available Available Available
Hotel reservation available
Tours and Not
Available Available Available
excursions available
Transport services Available Available Available Available

V. Assessment of Risk
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a. Evaluate weakness of the product

− Lack of a reputation in comparison to our competitors. This is due to the

fact that we are still new on the market.
− The introduction of new organizational practices.
− Personnel who have not previously worked together.
− A limited financial base compared to the major players in the industry.
− Lack of clear strategic allies.

b. Contingency plan

− The present growth in the tourism sector may result in an increasing

number of firms entering the market. This may led to increased competition
emerging from a variety of given sources including:
− Established travel agencies, hotels and lodges may look at the
development of new lines and vertically integrate transportation so as to provide
additional services to clients.
− New marketing strategies and tactics by established companies aimed at
providing excursions of our intended nature.
− Existing competition.
− Other start-up travel companies generated by healthy nationwide
economic and tourism growth.
− Ensure safety at the site.
− Register the location, number of injured parties and conditions at the site
of the accident.
− Administer first responder help appropriate to the injury. By ringing 1050
emergency services it is possible to get instructions and to be put in direct
contact with the doctor on call.
− Prepare for the arrival of the rescue teams, whether these be paramedics,
police, search and rescue or helicopter. If necessary enlist the help of the other
passengers.
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 − When the rescue teams arrive they take over control of the site and
remove the injured party. If it is possible to send a member of staff with them,
this is good, but the other passengers must never be left alone at the site of the
accident.
− Inform the superiors of the incident.
− Normally it is the function of the police to contact the family of the
injured party but the company might, nevertheless, wish to do this also in order
to give a more comprehensive explanation on what happened. This, hov/ever,
must always be done in cooperation with the police.

VI. Financial Plan

a. Break-even analysis
In order to compose our break-even analysis we divided our previous expenses
into half-year periods. In each half of year it will be 39 425 USD. From that
amount we will subtract monthly profit every month. Chart shows tendency of
changing in our balance sheet. Break-even point will be in the middle of fifth
month of working of Eastern Pearl Uzbekistan.

Balance in hand
20000
15303

10000

-10000 -13767

-20000
-26619
-30000 -32127

-39271 -37927
-40000

-50000

VII. Appendix
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 Total number of tourists
350

6; 306
300

250

5; 204
200
4; 153
150

3; 100
100

2; 48
50 1; 22

0
1 2 3 4 5 6

Months

1. Increasing of amount of tourists.

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