Lean Start-Up Methodology for Tousist Business: A Detailed Report

TOUSIST BUSINESS
REPORT DETAILED LEAN
START UP VENTURE
Table of Contents

INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Tousist business Objectives.........................................................................................................3
Value creation..............................................................................................................................4
Value Capture..............................................................................................................................5
The Marketing Plan.....................................................................................................................7
Critical evaluation of the plan and possible future development..............................................10
Summary....................................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
A lean start-up is a methodology with the help of which a new tourist companies or new
service can be start and launch in the market on behalf of any existing tourist companies. This
method is helpful for the tourist companies to demonstrate the desire of that new service among
the customers before it actually launched in the market. Nowadays, lean start-up is become very
popular within the industry as we as worldwide (Dennehy and et.al., 2019). It is because it helps
the tourist companies in enabling and ensuring change and innovation in the tousist business.
The respective report is based on the service name 3D Virtual Reality marketing that the tourist
industry wants to launch in the UK market and want to make its existence before it actually gets
launched. And for this the lean start-up methodology is quite helpful and beneficial. Being an
CMO, the characteristics of the lean start-up is that it allows the tourist companies to develop
new services based on the desires and needs of the markets. The desire of the market is analysed
by using various marketing theories and metrics such as service popularity and lifetime
consumer values. The 3D virtual reality handset is a service which has more demand in the
future because of consumers inability to pay high tour expenses. The global market size of this
service was valued at 15.81 US dollar billion and has expected compound annual growth rate of
18% per year from 2021 to 2028. The tourist industry with the help of virtual reality marketings
can expect high profitability in the near future.
MAIN BODY
Tousist business Objectives
Profit objective: For the first three year of operations the tourist industry has to carry out the
activities in the tourist business in order to earn profit which is over the expenses of the service.
The virtual reality per view can cost between €299 to €1390 per view which indicate that to earn
profit the tourist companies have to set price above cost. Being CMO, the sale of service
involves marketing strategies which also includes selling and distribution expense which also
need to be consider for setting price per view (Clement, 2019). For example, If the cost of per
view is €599 and marketing expense incur to €100 per view and tourist companies wants to earn
10% net profit on the cost than the selling price per unit would be €768.9 and the profit is €69.9.
Sales revenue objective: Being a part of society the tourist companies’ main objective must have
social welfare and corporate social responsibility. But at the initial stage, as the service is new in

the market the tourist companies need to put more focus on the sales revenue generation.
Because in first three years lots of marketing is involved to attract customers towards the
services and sales objectives is the part of tourist companies’ marketing plan.
Profit margin objective: Profit margin is the ratio which denotes the percentage of profit the
tourist companies earn by selling €100 of sales. In order to achieve long-term strategic objectives
of the tourist companies they need to set target profit margin because if tourist companies spend
more on marketing expense than the profit margin and cash flow will decrease (Tanev, 2017).
Value creation
The Value Proposition Canvas Diagram
The value proposition canvas diagram is used to grow the tourist business because it
helps the tourist companies in knowing the prioritize value of the customers, their pains, gains
and needs. In order to fit the value map and customer profile and narrow the gap the tourist
companies need to offer the service which are highly demanded by the customers (Klotins and
et.al., 2021). The way the tourist companies can use the three section of the customer profile of
canvas diagram is:
Gains Creator
Services
And services
Pain’s relievers
Gains
Customers
Jobs
Pains
Fi
t
The Value Map Customer Profile