Title: Proud to Present Flynow.com An online airline reservation company
1Proud to Present Flynow.com(An online airline
reservation company)
- Juweria Muqtadir
- Puneet Singh
- Purvesh Patel
- Davida Sumler
- Raymond Cata
2Executive Summary
- There are over 35,000 flights per day and many
empty seats - Large percentage of the traveling public has to
make last minute travel arrangements - Airlines charge customer hundreds or even
thousands of dollars for not making a reservation
at least 7-14 days in advance, even when many
seats on flights go unfilled especially during
off peek times and as the result of last minute
cancellations - Flynow.com will allow users to buy airline
tickets up to 4 to 6 hours before departure by
contracting with the major airlines to sell those
seats at sizable discounts.
3Todays Agenda
- Business Proposal
- Target Market
- Market Share
- Project Charter
- Project Team Contract
- Stakeholder Analysis
- Scope Statement
- Scope Management Plan/Control Policy
- WBS/WBS Dictionary
- Business Plan
- Managerial/Marketing/Technical/Financial
4Business Proposal
- Allow airline passengers to buy tickets to all
major airlines online - Customers go to our website and select the
destination based on location, time and price - All fares reflect similar discounted prices on
FlyNow.coms competitors like Orbitz,
Travelocity, and Priceline - Website will be using secure billing software
- An email and printable receipt will then be sent
to the purchaser to verify payment and confirm
travel arrangements - An SSL certificate will be obtained and a
vigilant effort will be made to secure all credit
card information and customer data
5Target Market
- Who are our Customers
- People who need last minute tickets at affordable
prices - All Major airlines
- NWA, Delta, USAirways, etc.
6Market Growth
7Market Share
- Whole online airline reservation industry
- 86 billion/year
- Expedia.com45.3
- Orbitz.com .24.9
- Travelocity.com..23.1
- Priceline.com..6.7
- Others...3 (2.58 billion)
- We have about .00005 or 0.005 of the total
market share, which is about 4,300,000 (4.3
million)
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9Project Charter-Objectives
- Design and build a website for FlyNow.com
- Fly Right Now feature allow customers to book
last minute tickets - Allow customers to buy airline tickets using
secure billing software
10Project Charter-Approach
- Accomplish this by contracting with all major
airlines enabling our customers to make last
minute travel arrangements for sizable discounts - Conduct a survey of customers and consultants
concerning online ticket reservations - Develop the internet site using an iterative
approach, soliciting a great deal of user
feedback - Consult experienced project managers on similar
projects
11Project Charter-Roles and Responsibilities
12Team Contract
- Code of Conduct
- Avoid conflict, take care of problems early.
- Keep other group members updated on information
related to project. - Work together as a team at all times.
- Participation
- Be open for new approaches and ideas.
- Keep discussions on track.
- Provide the opportunity for equal participation.
13Team Contract Contd.
- Communication
- Make a decision on the best way of communication,
which is email, face-to-face meetings, and class
time. - Have the group project managers for their
specific weeks arrange facilitate group
meetings. - Present ideas clearly and concisely.
14Team Contract Contd.
- Problem Solving
- Encourage everyone to participate in solving
problems that may occur. - Only give constructive criticism, not personal
attacks against one another. - Strive to build on each others ideas.
- Meeting Guidelines
- Meet as much as possible.
- Document major issues and decisions related to
our project and email them to each team member.
15Key Stakeholders
- Raymond Cata
- Purvesh Patel
- Puneet Singh
- Juweria Muqtadir
- Davida L. Sumler
- Bank of America
- All Major Airlines
- NWA, Delta, etc.
- Website Q
- Other employees contractors
- Programmer Accountant
16Stakeholder Analysis
- Raymond Cata
- On the project team
- Very much a team player and likes challenges.
- Level of interest very high
- Level of influence very high
- Suggested that we use web log and wireless
communications to keep in touch.
17Stakeholders Analysis Contd.
- Purvesh Patel
- On the project team
- Team worker, knowledgeable coder, detail oriented
- Level of interest very high
- Level of influence very high
- Suggested that we keep track of details and
better communication.
18Stakeholders Analysis Contd.
- Puneet Singh
- On the project team.
- Very detailed oriented, team work is a must for
him, timely and friendly person. - Level of interest very high
- Level of influence very high
- Suggested that we all be team players and give
100 effort.
19Stakeholders Analysis Contd.
- Juweria Muqtadir
- On the project team.
- Detailed oriented, team worker, timely and
friendly - Level of interest very high
- Level of influence very high
- Suggested that we have major project details
written out instead of just oral conversation.
20Stakeholders Analysis Contd.
- Davida L. Sumler
- On the project team.
- Easy to work with, likes things done on time.
- Level of interest very high
- Level of influence very high
- Suggested that we work on the group project at
home if necessary.
21Stakeholders Analysis Contd.
- Bank of America
- Financial provider
- Likes things done in a timely manner and is
business focused. - Level of interest very high
- Level of influence high
- Suggested that we keep them informed and to do as
they say and do it quickly.
22Stakeholders Analysis Contd.
- All Major Airlines (Delta, NWA, etc.)
- Project sponsors.
- Demanding, business focused.
- Level of interest high
- Level of influence high
- Suggested that we ask them anything, they are
willing to help out.
23Stakeholders Analysis Contd.
- Website Q
- Website designer.
- Very smart, best designer we know.
- Level of interest high
- Level of influence high very hard to replace.
- Suggested that we keep the company happy and they
will stay with us.
24Stakeholders Analysis Contd.
- Other Employees Contractors (Programmer
Accountant) - Employees and contractors to hire.
- Business focused, easy to work with, and
efficient and fast. - Level of interest high
- Level of influence high
- Suggested that we pay them well and on time and
there wont be any problems.
25Scope Statement
- Budget for the project is 50,000. Additional
114,000 per year will be required for
operational expenses. - Borrow 80,000 from Bank.
- Team meets at least two times a week to manage
scope of the project.
26Control Policy
- If Changes occur
- Urgent
- Team will come to decision over phone
- If not all member are available, then email will
be sent to inform rest of team members - Non-Urgent
- Team meets once a month to review changes
27WBS
- Initiating
- determine/assign project manger
- identify key stakeholders
- prepare business case
- prepare business charter
- prepare business plan
- Marketing/Managerial/Finance/Technology
- Planning
- Organize/schedule project meetings
- Prepare team contract
- Prepare scope statement
- Prepare WBS
- Prepare schedule and cost baseline
- Establish task resources
- Establish task duration
- Establish task dependencies
- Create Gantt chart draft
- Review and finalize Gantt chart
- Identify, discuss and prioritize risks
28WBS Contd.
- Executing
- Survey
- User inputs
- Website content
- Templates and tools
- Links
- Site Feedback
- Search feature
- User Help
- Website design
- Website construction
- Website testing
- Website promotion
- Website roll-out
- Project benefits measurement
- Controlling
- Status report
- Closing
- Review final budget
29WBS Dictionary
- Name Initiating
- Description defining and authorizing a project
or project phase. - Name Determine/assign project manager
- Description determine/assign the person(s) who
will work with the project sponsors, the project
team, and others involved in a project to meet
project goals. - Name Identify key stakeholders
- Description identify key people who are involved
in or affected by project activities and include
the project sponsor, project team, support staff,
customers, users, suppliers, and even opponents
of the project.
30Business Plan
- Managerial Plan-Davida
- Marketing Plan-Puneet/Raymond
- Technology Plan- Purvesh
- Financial Plan-Juweria
31Managerial Plan
32The Management Team
- Juweria Financial Manager
- Duties are to take care of all things related to
finance (transactions, basic accounting, etc.). - Purvesh Technological Manager
- Duties are to take care of all things related to
technology (touch basis with programmer, etc.).
- Davida Human Resources Manager
- Duties are to take care of all things related to
management (hiring firing, training, benefits,
etc.). - Puneet Raymond Marketing Managers
- Duties are to take care of all things related to
marketing (advertising and sales, etc.).
33The Business Aspects
- As of right now, we are keeping the business on a
small business level. We are not looking into
franchising right now. - We are only looking to hire 4 additional
employees two full time and two part-time
employees. - Once hired, the new employees are required to
attend training for 1 week.
34The Business Aspects Contd.
- Benefits included are
- Health and Dental
- Choice between HMO and PPO
- Vision
- Only free eye exams are covered.
- Vacation, Holidays and Sick Leave Days
- Will be working most holidays.
- Life Insurance
35The Business Aspects Contd.
- Retirement Plan
- 401K plan is provided with basic features
- Employee contribution
- Employer contribution
- Loans
- Additional Perks
- Disability
- Short term and long term
- Educational
- Employees are encouraged to seek further
education to improve skills. Reimbursement is up
to 2500 and restricted to 9 credit hours per
term.
36Marketing Plan
37Market Analysis
- Our target market that we will be selling
primarily to is general public. The total percent
of business will be 100. - Our target Customers will be worldwide. Our
target industry is all major Airlines for
example Northwest Airlines, American Airlines,
SPIRIT, SWA, LUFTHANSA, and British Airways.
38Competition
- Our competitors are Orbitz.com, Travelocity,
Expedia.com, Priceline.com, etc. Some of these
companies have been in this business from past
10-20 years. - Price/Strategy We will be selling discount
tickets online rather in person. - Product/Service Features We provide same day
travel in the last 4 to 6 hours before departure
on any major airline with prices up to 50 off.
39Competition Contd.
- Market is highly competitive.
- The strengths that our business plan carries are
the major discount and last minute flying, which
is our unique product. If we look at the
weaknesses there are none. Theres no other
market out there which provides a last minute
flying. This is why our plan is so unique to
compete in the market out there.
40Environment
- There are some important economic factors that
will affect our product and service as follows - If energy price rise it will affect the business.
- If taxes rise up it will affect the business.
- If certain airline files bankruptcy it will
effect the business. - Legal Factor that will affect the market
- Federal, State, and Local regulations for travel
agencies. - Obtain a sales tax license from State of Michigan.
41Environment Contd.
- Security is another legal factor that will affect
our market such as - Flights are cancelled due to terrorism.
- Major security issue for example unattended
baggage or box. - Government factors Too many government
restrictions can discourage people to fly. For
example - No Liquid allowed.
- No Sharp items allowed.
- Long Lines through security check.
- Removing certain clothing.
- Multi Screening of Baggage or Suitcase.
- Each traveler will be limited to one carry-on bag
and one personal bag (i.e., purse or briefcase).
42Environment Contd.
- Environmental Factors we have absolutely no
control over environmental factors for example - Bad weather will delay the flights.
- High security alert will delay or cancel the
flights. - Major airline accident will delay the flights.
43Product or Service Analysis
- Description We are selling airline tickets
online. The service that we are providing is
convenience and the ability of the customer to
make a last minute reservation on any major
airline with the opportunity to save money on
regular prices. - Comparison Ease of use and convenience. We
appeal to the procrastinator by making it
possible to save money without advance
reservations. - Disadvantages Our policy is if cancellation
occurs there will be no refund what so ever
unless a security issue occurs.
44Marketing Strategies/Market Mix
- Image Company will have cheap but convenient,
good quality service, and excellent customer
service. It is very important for a business to
have a good image out there in order for them to
grow. Good Customer service is always a top
priority and customer satisfaction. - Features The features our company will emphasize
are cost savings, convenience, and quality. - Pricing We will be using a following pricing
strategy - Competitive (we will be competitive with major
online companies like Travelocity and Expedia in
there pricing of online tickets). - Below competition (in our Fly Right Now feature
we will have prices well below the competition).
45Marketing Mix Contd.
- Customer Service We will provide 24 hours ticket
purchasing and 24 hours tech support. - Sales/Credit Terms All sales are final and no
credit unless security issues. - Competition Our Company specializes in last
minute traveling. The Customer can book a ticket
in advance or book a ticket just several hours
before the flight departs and still save up to
50 of the original price.
46Advertising
- Stay Competitive
- The competition offers
- Deals by Email
- Deals by RSS feed
- Fare alert features
- Travel alert (weather up dates)
- Business and Corporate travel features
- Additional customer service features (FAQ)
- We want to add these same features to our site to
stay in the game
47Advertising/Promotions
- Start with a low cost approach
- Internet
- Billboards
- Radio
- Yellow Pages
- Television Ads for national and international
markets
48Technology Plan
49Hardware
- Dell 2950 PowerEdge Server
- OS Linux
- Processor 2 Intel Xeon(s)
- Ram 1 GB (Fully Buffered)
- Hard Drive 2x73 GB SAS (RAID)
- Redundant Power/Cooling
- Bandwidth 150 GB Monthly
- Managed Backup 25 GB Weekly
- CISCO PIX 515 Firewall
- Novell Identity Manager
- T1 Connection
50Server, Hardware and OS Contd
- Web server software - The Web server software
cost for our company estimated around 10,000. - Computer hardware to host the web site - The
computer hardware total cost to host the web site
estimated at 20,000. This is one time cost that
we will have to spend on the computer hardware. - IT Operating System - The cost of operating the
software for the server estimated at 300 - 500
to start and in order to upgrade we will have to
spend additional around 300 every 12 months.
51Software
- Web site software The website software for the
creation and maintenance of the website cost
estimated at 500.00 to start. - Cost breakdown are as follows
- 400.00 for the creation software
- 100.00 for the maintenance per month.
52Software Contd
- The software necessary for the analysis of
website performance - Estimated costs 200 per year for the analysis of
traffic and links among web pages. - Security software and hardware for the Web site
- 200 per year for firewall software
- 100 per year for antivirus software,
- 2000 per year for physical security of the
server and its components.
53Setup
- Web site design and setup costs
- costs of hiring two programmers/web development
specialists - Estimated costs of 40,000 per individual.
Therefore 80,000 total costs. - Initial Web page layouts
- Includes custom graphics, photographs, line art,
audio, and video elements.
54Fees
- Domain name fees
- The domain name registration fee and web hosting
will cost 50 with 5 year contract. - Development of search engine keywords
- Search engine keywords to direct customers to the
company website - 219 with a one year subscription or 25 per
week.
55Search engines registration fees
- The hard costs of search engine registration and
directories depending on how many pages to
register would range from - 800 - 1600 per year.
- For example
- Yahoo! Directory-- Recurring yearly fee to be in
the Yahoo! Directory is 300. - Lycos - 50.00 minimum charge with recurring
monthly charges. (Pay-Per-Click through).
56Maintenance
- The estimate of maintenance which includes
creating new web pages, updating existing pages
cost - 250-300 monthly or 3000 - 5000 yearly.
- Upgrade the hardware and software of the server
cost - range from 5000 - 10,000 yearly
- The webpage analysis and upgrades will be done
every six months. The software and hardware
upgrades will be done once a year.
57Training and Communications
- The costs of training current and new staff broke
down as follows - The cost to train at least nine people
- fixed cost of 500 per person
- Communications link monthly costs
- T1 leased line
- The estimated costs 499
58Financial Plan
59Financial Plan
- Market Revenue/Share
- Income Statement
- Balance Sheet
- Surveyor Pro Cost
- Cost Baseline
60Market Revenue/Share
- Based on Hitwise Survey
- 10 million users use an online airline
reservation to buy tickets - With great advertisement efforts, we are
confident that we will get 0.01 (customers) hits
to our website (100,000 users a month) - Then using success rate of about 5 of customers
actually buying ticket from us (5,000 tickets
sold/month)
61Market Revenue/Share Contd
- Sabre
- Who is the middleman between airline companies
and travel agencies - With size of our company quoted us approx. 30
profit of each ticket sold - So selling 5000 tickets/month will give us
earning of 225,000/month
62Balance Sheet
63Contd Balance Sheet
64Contd Balance Sheet
65Income Statement
66Contd Income Statement
67Surveyor Pro Cost
68Cost Baseline
69Sample Page
- http//people.emich.edu/rcata/FlyNow/flynow.htm
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