Report: Business Plan for Travel Management Company in Tanzania (TMCT)

This business plan outlines the concept for The Travel Management Company in Tanzania (TMCT), a new limited company in the service sector. TMCT aims to organize professional congresses, environmental trips, and sport activities for medium and large-sized companies. The plan details the company's mission, vision, objectives, and a nine-chapter structure covering business concept, marketing analysis, and industry overview. The report includes a marketing mix analysis with pricing, product, placement, and promotion strategies, along with segmentation, target market identification, and value proposition. The plan also addresses the competitive landscape in Tanzania's tourism sector, highlighting TMCT's unique combination of services and its potential for growth. The company aims to offer a combination of travel, tour, and hotel services, differentiating itself from existing competitors. The report includes financial projections, market analysis, and the internal business team structure. The primary goal is to provide shareholders with income and establish a strong presence in the Tanzanian market.

Travel Management Company in Tanzania
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13 October 2017

CHAPTER 1
Introduction
The Travel Management Company in Tanzania (TMCT) is a brand new limited company, in
the service sector, which aims to organize professional congresses both for medium and big
sized companies in Tanzania. This business also intends to include the packages of
environmental trips and sport activities to its clients.
1.1 Rationale of the chosen business plan
The business concept of the “TMCT” is to plan and arrange guided tours alongside
environmental trips both for medium and large sized organizations. The business is expected
to offer both conference and travelling services for they go hand in hand and yet no
established company in Tanzania offers both.
1.2 Scenario of the chosen business:
The name of the business is “The Travel Management Company in Tanzania (TMCT)”; it is
located in Tanzania (Dodoma). The Address of the business is 4578-00100, Dodoma.
1.3 Mission
 To offer Tanzania a new combination of traveling and tour service in combination
with conference and hotel facilities.
1.4 Vision
To change the general perception of a travelling company to one that offers both traveling
and tour services in addition to conference and hotel facilities.
1.5 Aims

To present unique package of travel and tour in which the clients merge with nature through
our organized trips.
1.6 Objectives
 Provide income for shareholders with possibilities of growth within first five years
 Gross margin of 50 per cent and above in first five years
 Net profit of 15% and above in first five years
1.7 Structure of the report:
This business plan is subdivided into nine chapters. Chapter one highlights the introduction
which includes the mission and vision of the business. Chapter two examines the business
concept, management and marketing analysis. Chapter three discusses the industry analysis.

CHAPTER 2:
Business Concept
2.1 Business description
This chapter provides an in-depth analysis of the marketing strategy, market segmentation,
target market, positioning, added value and the management team.
2.2 Marketing mix analysis
2.2.1 Price
The prices of services will range between $400 - $500 per person for one full week. This is
inclusive of full board hotel, sporting activities and spa. Traveling by planes will attract costs
between $ 550 - $600.
2.2.2 Product
“Product” implies to physical products and services (Peter and Donnelly, 2011). In this
scenario TMCT will partner with first class hotels to offer special and quality services like
diving, hiking, conference halls and golf.
2.2.3 Place
The distribution of the TMCT products to its customers is to be accomplished via internet and
mails countrywide (Goodall and Ashworth, 2013). The company is to have its main office
building in Dodoma.
2.2.4 Promotion
The company intends to use advertising, direct marketing, public relations and promotions to
ensure that its services and products are well known (Minazzi, 2015).

2.3 Segmentation
TMCT falls in the service sector industry which intends to offer excellent travel and tour
services in Tanzania. This business will be established in Dodoma but will collaborate with
the Five star hotels in the major cities in Tanzania.
2.4 Target Market
The business intends to attract big and medium companies all over Tanzania. The
organization will have programs that best fit clients of age group 20 to 40 years.
2.5 Positioning
Our objective is to change the common understanding of tour and travel companies. This is
the first ever Tanzanian company to link leisure with fitness and environmental exposure.
2.6 Value added
TMCT is the only company in the Tanzanian market that offers a combination of travel and
tour and hotel services.
2.7 Internal business team

The organization has the top-down leadership structure.
Tour operators
Job Marita
Benjamin Juma
Alice Ochieng’
Evans Kingi
Marketing
Eunice Jazi
Org and Service
Wesley Mzazi
Finance
Jacky Mkizi
Sales
Jason Kombo
Manager
James Margot &
Phoebe Mary

CHAPTER 3
3.1 Industry/Market Overview
Tanzania is known for its attractive natural sceneries and thus its peak season is spread across
the year. 23% of the country economy is sustained by revenue from the tourism sector
(Odhiambo, 2011). Thus, the market is flooded with companies that offer travel and tours and
hotel services independently.
3.2 Industry size
TMCT is a company under the service sector. However, the company is unique in its
products and services since the idea has not direct competitors. 23% of the Tanzania
economy is supported by the service sector and is also an excellent source of employment
(Ardahaey, 2011).
3.3 Growth rate
With intensive marketing in the first year to create awareness, we expect to provide income
for shareholders, gross margin of 50% and net profit of 15% within first five years
3.4 Competitor analysis
Direct competitors: TMCT is not aware of any other company that provide a similar
combination of services.
Indirect competitors: The organization is aware of those that only offer Travelling services
namely Akaro tours, Bonvoyage Travel Centre, and STA Travel Tanzania (Chang et al.,
2015).

References
Ardahaey, F.T., 2011. Economic impacts of tourism industry. International Journal of
Business and Management, 6(8), p.206.
Chang, B.Y., Magobe, M.J. and Kim, Y.B., 2015. E-commerce applications in the tourism
industry: A Tanzania case study. South African Journal of Business Management, 46(4),
pp.53-64.
Goodall, B. and Ashworth, G. eds., 2013. Marketing in the Tourism Industry (RLE Tourism):
The Promotion of Destination Regions. Routledge.
Mariki, S.B., Hassan, S.N., Maganga, S.L.S., Modest, R.B. and Salehe, F.S., 2011. Wildlife-
based domestic tourism in Tanzania: experiences from northern tourist circuit. Ethiopian
Journal of environmental studies and management, 4(4).
Minazzi, R., 2015. Social media marketing in tourism and hospitality. Heidelberg: Springer.
Odhiambo, N.M., 2011. Tourism development and economic growth in Tanzania: Empirical
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Peter, J.P. and Donnelly, J.H., 2011. Marketing management: knowledge and skills: text,
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