Executive Summary

Harbinzar’s Extreme Entertainment is a skydiving practicing

company serving extreme sports related personnel. Through

generous human capital investments, Harbinzar’s Extreme

Entertainment will exceed customer's expectations. Harbinzar’s

Extreme Entertainment will be addressing the adventure seeking

people who love extreme sports such as skydiving. These

targeted groups are willing to pay a premium for the service

because of the high level of fun and satisfaction that is offered. 

This target market will be focused on because of their extreme

interest on adventurous sports.

Harbinzar’s Extreme Entertainment will work hard to achieve a

large percentage of loyal, repeat customers who will happily join

our skydiving club as well as being vocal to their friends about

the experience they have had with Harbinzar’s Extreme

Entertainment.

We expect that the projected growth rate of Harbinzar’s Extreme

Entertainment will be approximately 20% by the end of year one,

with profit margins as a percentage of service revenue between

16%-18%. Harbinzar’s Extreme Entertainment will be a skydiving-

based business which will be a joint venture of MILE-HI. From the

beginning Harbinzar’s Extreme Entertainment will have a

management team of five members; Harbinzar’s Extreme

Entertainment will have some additional employees.

Objectives

Become the premier & pioneer skydiving club, within three

years.

Sign at least 50 permanent groups within the first three

years.

Reach profitability within two years.

The Business Description

Parachuting, also known as skydiving, has been around for many

years.  While some people believe that the sport was invented in

the 20th century, there actually has been evidence showing that

the sport had been around for a great amount of time before

then.

After World War II, skydiving wasn’t just for those in completions

or for military operations; it had begun to evolve into more of a

hobby.  Today, skydiving is an exhilarating sport, loved by people

worldwide looking for an adrenaline rush that is hard to be

topped.

Our business started with a mutual written agreement between

five of the group members on 2012. Our total capital invested on

this business is 1,000,000tk. Each of us has contributed

200,000tk.

The name of our business is Harbinzar’s Extreme Entertainment.

Our business is mainly providing extreme sportsmen &

adventurous people with a safe environment where they get to

practice skydiving with highly trained professionals. We are

providing them with all the necessary equipments with trainings

from the professional’s which is usually hard to afford

individually.

Harbinzar’s is mainly a service business, and our main service is

the thrilling skydiving.

The service:

Our service is skydiving in which participants will jump or fall

from aircraft at altitude. They will be teach to perform

assortments of aerial maneuvers before deploying

the parachute to slow their descent, allowing them to come

gently to rest on the Earth below. The sport is also known as

parachuting. People at different levels of physical fitness will

participate in skydiving service, as long as they are ready for an

adrenalin-packed sport which will be both terrifying and

exhilarating.

In the military, skydiving is originally intended to be a backup

safety mechanism for airmen. If a plane became disabled during

flight, the pilot could deploy a parachute to save his life. Intrepid

pilots began to skydive recreationally as well. Professionals from

the MILE-HI club will be used for deployment & Training.

Harbinzar’s Extreme Entertainment will be one of the biggest

and most successful sports clubs that will plan to have over

100 members. We aim to get as many people as possible to

experience skydiving for them, in a safe and enjoyable fashion.

With our support, club members will be encouraged to

progress within the sport, meet likeminded people and attain

personal goals.

For those who are new to the sport, we will organize

accelerated free-fall courses and Ram Air Progression System

courses. Our yearly tour will be another great time to get

involved with other countries. Experienced club members will

be encouraged to further their abilities and qualifications and

through progression courses.

We will have plenty of connections to the wider skydiving

community and we will attend frequent meet ups with other

clubs. Additionally, we hold weekly socials to break down the

barriers between those with differing experience levels and

time within the sport.

The club will develop massively in the coming few years. We

will have a fantastic mix of new and experienced skydivers,

and our exposure will be bigger - we aim to keep this trend

going!

Business Environment & Market Analysis:

Industry Background:

As far as our findings there are no companies in Bangladesh that

are providing skydiving service. As a result we will be the first

one to introduce skydiving business and create an industry. This

will open opportunities for many other interested entrepreneurs

to join this industry. So this can be said that our business will be

the first one to create a skydiving industry in Bangladesh.

Competitive Analysis

We will start our business at Cox’s Bazaar. In Bangladesh this is

one of the most popular areas where there are a huge numbers

of tourists and young bloods go on vacation. There is no existing

business that is similar to our service so it could be said that

there are no competitors. There are few sports such as jet skiing

and other. These businesses are way behind in terms of thrill,

excitement etc. so we have a full chance of being ahead in the

long run.

From the begining year we will be maintaining a fully informative

website where our customers can easily book schedules and also

see the existing schedules. In our website we will be broadcasting

videos of those groups that will use our service. This will be a

huge advantage for us.

Market Analysis Summary

Harbinzar’s Extreme Entertainment will target the primary

market segments which are several sports clubs and they will

be the sources of income so they will be the main targets.

Initially, Harbinzar’s Extreme Entertainment’s focus will be to

develop visibility within the sports community, enough to be

able to sign up groups which are the key to revenue

generation. The need to sign up sports groups will drive

the marketing activities that Harbinzar’s Extreme

Entertainment will undertake in order to generate revenue in

the future.

Market Segmentation

Harbinzar’s Extreme Entertainment has identified two target

market segments which will be the main targeted customers.

Sports clubs: These are our primary targets as sports clubs

are the ones those cannot afford equipments by themselves.

As a result they will rely on us. So these sports clubs will be

Harbinzar’s Extreme Entertainment’s main revenue earning

source.

Professional extreme sportsmen: These are our secondary

targets. We will provide a fixed schedule for some

professionals which will attract others and by watching others

they will be inspired for practicing skydiving in Harbinzar’s

Extreme Entertainment. Professional sports clubs will be given

full priority to practice in Harbinzar’s Extreme Entertainment.

Percentage Of Revenue Sources

Sales & Marketing Plan:

We will be using an interactive agency that will specialize in

developing a strong strategic web site. They will integrate banner

ads, streaming video, instant messaging. We feel like we need an

outside agency to assist in this because our web site will be an

important and integral part of our integrated marketing plan. We

will also use a direct response agency to do target market

research so that we can reach the desired demographic.

We will use local special interest magazines which will give

people ideas for spending their free time and is also a little

outside the mainstream. This market includes the target market

we want.

We will be using consumer magazines that specialize in local

general interest and activities. We will also coordinate with the

local radio station magazine as we are also working with them in

the advertising schemes.

Television advertising is extremely expensive, while print is not

as much. Therefore, we will be using 15% of the designated 60%

of our media budget allowing most of the rest to be used with

television and radio. We will be using consumer magazines in

order to reach our audience. These will reach our target audience

that is looking for entertainment options. We are trying to reach

the active BD people or visitor that wants something different to

try on their weekends.

We will be using a lot of sales promotions at different times

throughout the year for part of our promotion. They are

specifically applicable because they are an acceleration tool and

speed up the selling process and client base, as well as provide

an extra incentive to try out our service. There are two different

types of sales promotion objectives. The first is the consumer-

oriented objectives. Examples of these are sampling, premiums,

contests, refunds, etc. For our purposes we will be doing

couponing for starters. Coupons make it easy to offer a price

reduction to those who are willing to look for them. This allows

those who are willing to pay full price not to worry about them,

while those who are price driven to seek and find ways to reduce

the price. We will place them in magazines such as creative

loafing, the radio channels, and other local adventure magazines.

It is our hopes that we can draw in people who would be unwilling

to pay full price and give them a taste so that the next time, they

will be. We may also use direct mail from lists that we obtain

from our direct response agency. Another type of consumer-

oriented promotion that we will be participating in is

sweepstakes. We will put everyone's name that jumps from our

planes in a hat and draw 2 a month who will earn free jumps at a

time of their choosing within a one year time. They will either be

able to use the certificate themselves or pass it on to one of their

friends as a gift. We will also draw five more that will receive a

free video with the purchase of a "certified" jump. This should

allow more people to want to take advantage of their prize and

get them back in for a second time. One thing that is already built

into our system is the frequency program. Because we give

extremely reduced prices after you become certified to jump, I

believe that this qualifies. We would also like to get into event

sponsorship where we go to local places and sponsor events such

as the university competition etc. This will give us the opportunity

to advertise and display our name and information for a lot of

people in our demographic to see and hear about our services.

The next type of promotion is trade-sales oriented. This is much

more related to product industries than it is to our service

industry. It provides retailers with incentives to stock new

products. Since we do not have any products except our

videotapes and pictures it does not seem to apply to us.

Operational plan:

Before we buy gear we will go through the training process. We

will have gear for customers to use that is designed for students.

Once you we have completed our training then customer should

look for their own gear. Our instructors will help find the right

type of gear for them.

All this needs to be addressed in detail with customers. The gear

that we will have is: Container main parachute reserved

parachute visual altimeter audible altimeter Helmet (an open

face is recommended for new jumpers)

AAD

RSL

Goggles

Gloves

Extra rubber bands and pull up cords

Jumpsuit (not required, but a very idea for safety and

comfort reasons)

When they are ready to buy, look at used gear. New jumpers will

be going through gear quickly, finding the right platform and size

parachute and harness. There is a lot of good gear for sale on

several websites. Always have a rigger inspect the gear before

you jump.

My recommendations for gear: Vector 3 container or Icon

container, PD - R reserve or a Smart reserve. The main for a new

jumper:

A Saber 2,

Spectre,

Pilot.

Cypress

AAD,

A RSL,

Open face helmet,

Neptune visual altimeter,

Protrack for the audible altimeter.

They will have to spend around $5000 for all the gear to start, if

you are buying used. New, well all of the above would likely run

you about $8000 or more.

We chose Cox’s Bazaar because there a very few competitors.

This place is also premier source of solvent customers. As it is

one of the most popular areas of BD the rent rate of place is

always a bit high, but thinking of our target market all of us are

agreeing to rent a suitable place in this area.

Management Summary:

We are using a centralized organizational chart. We are rather

unique and are only offering a few services. Centralized

requires fewer personnel. Also, we would like to have main

control over our company's decisions and the centralized

organization allows for more top management involvement.

Our organization chart will look like this:

Our management team consists of only five members. We have

divided our tasks equally. We have segmented our management

into two teams consisting of 3 members in one team and 2

members in another. The team consisting 3 members are in

charge of maintenance and monitoring and the other team of 2

members are in charge of accounts. Every decision is made by

voting and majority will be always granted.

Tasks done by the maintenance team are:

Schedule Booking

Maintaining Equipments

Supervising other Employees (Including foreign trainers)

Market Monitoring

Advertising

Tasks done by the accounts team are:

Estimating a monthly budget

Keeping track of cash Inflow and Outflow

Handling monthly payments

Salaries of employee’s

Preparing income statement by the end of every month

Maintaining the business account (Bank)

Financial, risk management & Loan proposal:

Financial plan

We will start our business with capital 1,000,000tk where each of

us will invest 200000tk. Our three years projection of Income,

Expense and Profit are given below:

Year-2012

Year-2012

Year-2013

Risk Management Plan

Skydiving is a high risk sport and so each and every one of us

will have to recognize that fact and deal with it for ourselves.

Let’s also keep it in perspective - driving on the road is a high

risk activity yet many of us don't acknowledge it as such and

most of us couldn't do without driving. The issue then will be

about effective risk management, and the possibility of

abstaining completely always will be on our list of options.

When we carry out your our evaluation of a drop zone before

we decide to book, that’s part of our own personal risk

assessment and we are responsible for their safety.

Major things that will be considered are;

Instructor certifications and disciplinary matters

Review and update of the Operations Manual and

associated procedures

Negotiation and appointment of third party insurance

Representation to the BD Army in legislation-related

matters

Parachute Pilot approvals

Investigation of any accidents which are related to

parachute operations

Produce incident/accident statistics and take appropriate

action to improve these

Every time something has gone wrong in the sport over the

past 30 years or more, the knowledge accumulated from the

investigation has moved the sport further and we have learned

from our ‘mistakes’. It works well, although nobody would ever

claim it to be perfect.

It’s impossible to remove all risk – some risks will be inherent

in the activity and most skydivers wouldn't have it any other

way. It’s the same as diving in a deep wreck or climbing a

mountain. It’s also about motivation – therefore it’s important

to acknowledge why our customers want to do this (skydiving)

and make our decision with a positive frame of mind and thus

get the most from it.

Conclusion:

Harbinzar’s Extreme Entertainment marketing team considers

consumers to be the most important factor in order to prove

that

Harbinzar’s Extreme Entertainment as a profitable venture.

With the blend of marketing mix emphasizing a lot on

promotional mix, Harbinzar’s Extreme Entertainment believes

to achieve its goal successfully and within a short period of

time. Harbinzar’s Extreme Entertainment wants to be the

ultimate market leader in the long run. Harbinzar’s Extreme

Entertainment’s team believes that following these strategies

will help it reach its goal.

In the long run, Harbinzar’s Extreme Entertainment plans to

develop and increase its product line. Although due to very

high promotional coast at the beginning, Harbinzar’s Extreme

Entertainment’s profit statement might not be a favorable one

but Harbinzar’s Extreme Entertainment team strongly believes

that if it can build a strong picture in the customers mind, it

can achieve its ultimate goal of profit maximization.