Business Plan for TicketPool: Sports Tourism Service in Singapore

This business plan outlines the strategy for TicketPool, a new website designed to capitalize on the sports tourism market in Singapore, specifically targeting the International Champions Cup. The plan details the website's core offerings: convenient online ticket booking for matches and the sale of rela...Read More

Running head: BUSINESS PLAN FOR SPORTS TOURISM SERVICE
Business plan for Sports Tourism Service: Website for Ticket Booking and Merchandized
Accessories
Name of the Student:
Name of the University:
Author note:

1BUSINESS PLAN FOR SPORTS TOURISM SERVICE
Executive summary
International Champions Cup 2018 will be held in July of 2018 in Singapore. The
champion soccer clubs of Europe come to Singapore every year for participating in International
Champions Cup before the commencement of European league season
(Internationalchampionscup.com, 2018). In a football crazy country, there is a huge demand for
the tickets of International Champions Cup. The report presents a business plan for TicketPool, a
new website that offers the ticket booking service for the International Champions Cup matches
in Singapore.
The new website will offer the opportunity of availing the tickets for the matches easily,
with a discount offer for the early birds. It will also provide the scope for reselling the spare
tickets, which will allow other fans to be a part of the tournament. Along with that, it will also
sell merchandising products and accessories, such as, caps, jerseys, autographed pens, cups,
shoes, shorts, and bags, which will be available throughout the year. TicketPool will use its
marketing resources for establishing a foothold in the Singaporean soccer merchandized market.
The design of the website and strategy for coordinating with the operators of the venue will be
on the focus. The company aims to earn around 5 million Singapore dollars in the first year, $8
million in the second year and $12 in the third year. Profits are expected to rise steadily too.
TicketPool expects its employee headcount to grow subsequently from 15 in the first year. It
aims for a capital investment of $200,000 for running all types of the operations, implementing
sales and marketing strategy, arranging the tickets and merchandised products for the buyers and
coordinating with the suppliers and delivery agents, not only during the football tournament, but
throughout the year also.

2BUSINESS PLAN FOR SPORTS TOURISM SERVICE
Market research
The market of soccer in Singapore is quite big. The International Champions Cup attracts
not only the local visitors, but also the international visitors, especially from the South East
Asian countries. In 2014, the sports industry of Singapore had generated about $80 billion, which
grew around 7% annually (Stb.gov.sg., 2018). In 2017, it became around $90 billion, which was
driven mainly by the football industry. In Singapore, the revenue from nonevent sports market is
much greater apart from that in Europe and the USA. The licensed sporting goods and accounts
for almost 57% of the revenue while others generate almost 28% (sbr.com.sg, 2015). Singapore
has become a sports hub and football and Grand Prix have contributed majorly in this. The lining
up of international sports events, including International Champions Cup, aimed to generate
about $145 billion in 2016 which helped to boost the tourism market too (stb.gov.sg, 2018).
International Champions Cup draws millions of visitors to Singapore every year. Fans of
the football clubs start buying their tickets quite early to avoid the rush and high price at the last
moment. However, there is only one website till date that offered the option for online ticket
booking, that is, StubHub Singapore. TicketPool will provide another platform for online ticket
booking as well as accessories with a logo of International Champions Cup for the local as well
as global soccer fans. In the first year, the website will provide the opportunity of availing
additional discounts for the early purchases of tickets.
Research shows that, the football fans in Singapore are quite attracted to the
merchandized products of the football clubs (Heng & Meng, 2018). Production and supply of
these products contribute a substantial amount of revenue in the economy. The supply chain and
distribution network also gets benefitted from that. Hence, it is expected that, TicketPool will
benefit from selling the merchandized products.

3BUSINESS PLAN FOR SPORTS TOURISM SERVICE
There is very less competition for TicketPool in Singapore. Previously, only Stubhub
used to sell the tickets for International Champions Cup. Whenever, there is rush and huge
demand for tickets, the website crashed. TicketPool will share the pressure of the market demand
for the tickets of the tournament. Similar to Stubhub, it will also provide the option of selling
extra tickets if the customers want. Apart from that, Stubhub do not sell merchandized products
of the clubs online. Hence, TicketPool is providing the opportunity of availing the merchandized
products and accessories at a fair price, with local and global delivery option, which is expected
to gain popularity among the football fans. The company will focus on earning reputation
through high and efficient quality service and product.
To launch the business, TicketPool has done market research and applied the
segmentation and targeting to enter the market. Segmentation refers to the process of dividing
the potential consumer market into different segments, based on certain characteristics (Liu et al.,
2018). In case of the potential market for TicketPool, the customers are segmented on the basis
of age, income status and their preferences. The age has three categories, 18-30 years, 31-45
years and 46 years and up. The groups are chosen such because, people within these age groups
can travel along and can go to watch a football match and also be interested in buying the
souvenir products. Secondly, people under income status groups are categorized into the groups
of income less than $35000, $35000-$50000, $51000-$75000 and $75000-$1000000. This
indicates that, students as well as salaried people are capable of buying the tickets and the
products for International Champions Cup. Apart from these, the segmentation will also include
location, spending behavior and preferences for the merchandized products.
As a part of the targeting strategy, TicketPool will put different pricing of the tickets for
different groups. The students will get additional discounts upon providing their student id

4BUSINESS PLAN FOR SPORTS TOURISM SERVICE
number and name of the colleges or universities. The payment options are made easier and
convenient with all types of card payments, third party payment and net banking payments
options. The merchandised products will be priced at a reasonable rate to increase the sales and
profit. There will be shipping charge for the products ordered if the price is below a certain
amount.
The marketing strategy will be implemented through various advertising channels in the
print and digital media and through the search engines. Since, people will be buying the tickets
and the accessories from the website and through mobile apps, floating the advertisements
through the search engine will be more noticeable and bring more impact. The software team
will be responsible for creating an attractive website with user friendly navigation. The quality
assurance team will ensure that the products delivered have the best quality attainable at a
reasonable price. Customer service team will work on handling the customer calls regarding
tickets and diverting the calls and complaints regarding the returns, exchange and refund status
to the suppliers. The overall finance will be handled by the finance department.

5BUSINESS PLAN FOR SPORTS TOURISM SERVICE
Business canvas model for TicketPool
Key
Partners
 Internation
al
Champions
Cup,
Singapore
authority
 Technology
partners
for creating
websites
 Suppliers
of tickets
and the
products
 Courier
services for
delivery of
the
products
 Meta
search
engines,
like Google
 Third
party
payment
partners,
like, Visa,
Master and
Maestro.
Key
Activities
 Arranging
tickets for
the
matches of
Internation
al
Champions
Cup in
Singapore
 Supplying
merchandis
ed
products
 Shipping
the
products to
the
customers
address
Value
Proposition
For
customers:
 Easy
availability
of tickets
 Easy ship
merchandi
zed
accessorie
s
 Convenient
options for
buying
 Customer
service
For suppliers:
 Global
reach for
the
products
 Incremental
sales and
profits
 Increase in
market size
Customer
Relationshi
ps
 Commissio
n for the
suppliers
 Customer
service for
the buyers
 Convenient
payment
and return
service
Customer
Segments
Customers:
 Age group
 Income
status
 Location
 Spending
behavior
 Preferences
for
products
Suppliers:
 Quality of
products
 Price
 Shipping
conditions
 Returns
and
exchange
 Refund
policy
Key
Resources
 Tech savvy
and
efficient
employees
 Attractive
website
 Great
quality
accessory
products
 Global
network
Channels
 Website
 Mobile app
 Partner
channels
 Ad
channels in
the search
engine

6BUSINESS PLAN FOR SPORTS TOURISM SERVICE
Cost Structure
Operational:
 Advertising: $75,000
 Sales and marketing: $30,000
 Product procurement cost: $70,000
 Property and equipment: $15,000
 Intangible assets: $10,000
Revenue Streams
 Ticket sales
 Accessory sales
 Sponsorships
 Commissions from payment agents
Figure 1: Business Model Canvas for TicketPool, Singapore
(Source: Author)

7BUSINESS PLAN FOR SPORTS TOURISM SERVICE
Director
Managers
Technical
team
Customer
service
experts
Legal
advisors
Sales and
marketing
Procurement
advisors
Quality
assurance
team
Finance
department
Proposed management and production structure
The proposed management and production structure of TicketPool are presented below.
The management structure includes all the managerial positions of the company, to be existing in
TicketPool. In the production structure, the teams addressing the production planning and control
operations are presented. Since, the website will offer services to the customers, the production
planning and control teams will look after the production and delivery of services.
Figure 2: Proposed management structure of TicketPool
(Source: Author)

8BUSINESS PLAN FOR SPORTS TOURISM SERVICE
Production management
Production planning Production control
Production planning design
Technical planning
Production scheduling
Website design Production progress control
Production inventory control
Production cost controlProduction quality control
Production distribution controlProduction supply control
Figure 3: Proposed production structure
(Source: Author)

9BUSINESS PLAN FOR SPORTS TOURISM SERVICE
Projected income and expenditure section (for three years from set up)
The following table exhibits the values of particulars in the income and expenditure
sections that determine the profitability of the company in next three years from set up.
Particulars (Values in Singapore Dollar) Year 1 Year 2 Year 3
Inflation Rate 2.50% 2.50%
Sales Growth Rate 10% 10%
Sales Volume 40000 44000 48400
Selling Price Per Unit $3,500 $3,588 $3,677
Total Sales Revenue $140,000,000 $157,850,000 $177,975,875
Cost of Good Sold per unit:
Raw Material Consumed ($500) ($513) ($525)
Direct Labor Cost ($100) ($103) ($105)
Total Cost of Goods Sold per unit ($600) ($615) ($630)
Total Cost of Goods Sold ($24,000,000) ($27,060,000) ($30,510,150)
GROSS PROFIT $116,000,000 $130,790,000 $147,465,725
Variable Manufacturing Overhead per unit ($15) ($15) ($16)
Total Variable Manufacturing Overhead ($600,000) ($676,500) ($762,754)
Depreciation on Property, Plant &
Equipment
($2,100) ($2,100) ($2,100)
Total Manufacturing Overhead ($602,100) ($678,600) ($764,854)
General Administrative Expenses:
Depreciation on Furniture & Fixtures ($1,000) ($900) ($810)

10BUSINESS PLAN FOR SPORTS TOURISM SERVICE
Depreciation on Computer Equipment $0 $0 $0
Amortization of Patent $0 $0 $0
Amortization of Trademark ($150,000) ($150,000) ($150,000)
Insurance ($12,000) ($12,300) ($12,608)
Rates & Taxes ($6,500) ($6,663) ($6,829)
Salary of Office Staffs ($100,000) ($102,500) ($105,063)
Cleaning Charges ($5,000) ($5,125) ($5,253)
Electricity for Office ($15,000) ($15,375) ($15,759)
Telephone & Internet ($8,000) ($8,200) ($8,405)
Total General Administrative Expenses ($297,500) ($301,063) ($304,727)
Selling & Marketing Expenses:
Depreciation on Motor Vehicle $0 $0 $0
Salary of Marketing Staffs ($150,000) ($153,750) ($157,594)
Sales Commissions @0.5% on Sales ($700,000) ($789,250) ($889,879)
Travelling charges @0.25% on Sales ($350,000) ($394,625) ($444,940)
Total Selling & Marketing Expenses ($1,200,000) ($1,337,625) ($1,492,413)
Net Operating Profit/(Loss) $113,900,400 $128,472,713 $144,903,732
Interest Expenses:
Interest on Bond ($27,154) ($27,154) ($27,154)
Interest on Loan From Bank ($24,568) ($24,568) ($24,568)
Total Interest Expenses ($51,722) ($51,722) ($51,722)
Net Profit before Tax $113,848,678 $128,420,991 $144,852,010
Income Tax Expenses ($34,154,603) ($38,526,297) ($43,455,603)
Net Profit after Tax $79,694,075 $89,894,693 $101,396,407
Table 1: Income and expenditure statement and forecast of TicketPool
(Source: Author)

11BUSINESS PLAN FOR SPORTS TOURISM SERVICE
Sales forecast section for the respective period
Particulars Year 1 Year 2 Year 3
Inflation Rate 2.50% 2.50%
Sales Growth Rate 10% 10%
Sales Volume 40000 44000 48400
Selling Price Per Unit $3,500 $3,588 $3,677
Total Sales Revenue $140,000,000 $157,850,000 $177,975,875
Table 2: Sales forecast for TicketPool
(Source: Author)
The company aims for a 10% growth in the consecutive three years. Profitability will increase
from lack of competition, reinvestment of profit and quality of products and services delivered.
Conclusion
The business plan aims to highlight the profitability of a new website in Singapore,
TicketPool. The website will be launched to provide the ticket booking service for the
International Champions Cup and also to offer various merchandized accessories of the
international football clubs. The company has evaluated the market opportunity of less
competition in this particular section of the sports tourism industry. Millions of tourists come to
Singapore every year to experience the international football tournament. The visitor arrival
contributes a significant amount in the revenue of the economy. It is seen that, there is not only

12BUSINESS PLAN FOR SPORTS TOURISM SERVICE
high demand for tickets but also for the merchandized products among the local and international
visitors. However, there was only one website, StubHub Singapore that delivers the service of
ticket booking and selling for the matches. Hence, TicketPool will explore this opportunity of
lack of competition in the market and will try to capture the market with discount offers on the
tickets and merchandized products at a reasonable price. The customers can buy all the things
online and TicketPool will deliver those at their addresses. The football market is huge in
Singapore and TicketPool will take that advantage for establishing and growing their business.
Income expenditure statements and sales forecast for the next three years are shown in the plan
that exhibits that the company has a projected growth of 10%. Over the years, after the company
achieves substantial growth, it plans to include other national and international sports events to
be held in Singapore also into their portfolio.

13BUSINESS PLAN FOR SPORTS TOURISM SERVICE
References
Heng, L., & Meng, W. (2018). Singapore sport: A growing market for sports agents. The Straits
Times. Retrieved 4 April 2018, from http://www.straitstimes.com/sport/a-growing-
market-for-sports-agents
Internationalchampionscup.com. (2018). International Champions Cup |
Singapore. Internationalchampionscup.com. Retrieved 4 April 2018, from
http://www.internationalchampionscup.com/territories/sg
Liu, J., Liao, X., Huang, W., & Liao, X. (2018). Market segmentation: A multiple criteria
approach combining preference analysis and segmentation decision. Omega.
sbr.com.sg. (2015). What is the future of the sports business in Singapore?. Singapore Business
Review. Retrieved 4 April 2018, from
http://sbr.com.sg/leisure-entertainment/exclusive/what-future-sports-business-in-
singapore
statista.com. (2018). Sports & Outdoor - Singapore | Statista Market Forecast. Statista.
Retrieved 4 April 2018, from
https://www.statista.com/outlook/259/124/sports-outdoor/singapore#
stb.gov.sg. (2018). Sporting events showcase Singapore as a well-rounded, active, and exciting
tourism destination.. Singapore Tourism Board. Retrieved 4 April 2018, from
https://www.stb.gov.sg/industries/sports

14BUSINESS PLAN FOR SPORTS TOURISM SERVICE
Stb.gov.sg. (2018). Statistics & Market Insights Overview. Stb.gov.sg. Retrieved 4 April 2018,
from https://www.stb.gov.sg/statistics-and-market-insights
stubhub.sg. (2018). StubHub Singapore. Retrieved 4 April 2018, from https://www.stubhub.sg/

15BUSINESS PLAN FOR SPORTS TOURISM SERVICE
Appendix
Figure 4: Sample ticket booking page
(Source: stubhub.sg., 2018)
Figure 5: Sample ticket booking page

16BUSINESS PLAN FOR SPORTS TOURISM SERVICE
(Source: stubhub.sg., 2018)