Strategic Growth Plan for Mamaland Safaris & Woodland Lodges in Uganda
January 2023 John Molson MBA International Case Competition presented a case on Mamaland Safaris & Woodland Lodges in Uganda. The challenge is to develop a growth strategy to achieve a 23% growth over the next 3 years. Analyzing the current situation, focusing on customer segments, acquisition methods, locations, key issues, tours, lodging, new office, and strategic alliances are crucial. Recommendations include tailoring safaris, improving customer experience, vertical integration, and controlling the total experience. With a unique appeal in East Africa, Uganda offers wildlife experiences, including mountain gorillas and the Big 5, making it a prime destination for international tourists. By capitalizing on these strengths and enhancing local guides, fleet management, affordable lodging, and strategic locations near national parks, Mamaland Safaris & Woodland Lodges can position themselves for successful growth in the tourism industry.
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January 2023 JOHN MOLSON MBA International Case Competition 2023 Mamaland Safaris & Woodland Lodges The Triumph of the Resilient PBS Consulting Diogo Cunha, Hugo Soares, In s C Alves, M rcio Santos
Brief snapshot of the Current Situation Mamaland Safaris & Woodland Lodges provide a unique adventure experience for tourist in Uganda... .providing great expertise of animal recognition and valuable guidance for tourist MS & WL Currently, in Uganda, the adventure tourism industry has an expected growth of Costumer preferences have changed and with it new opportunities and new challenges are emerging 20% 1
Why are we here today? Which should Mamaland Safaris & Woodland Lodges growth strategy be, over the next 3 years to achieve a 23% growth ? Challenge Costumer Segment Costumer Acquisition Method Locations Key Issues Tours Lodging Locations New Office Strategic Alliances 2
Why are we here today ? Our view of the current situation: Analysis Recommendations & Alternatives Implementation Plan: Timeline and KPI's Financials Risks Summary AGENDA 3
Uganda: a unique appeal in East Africa Wildlife: 60% of mountain gorillas in Africa; Big 5 Border with Kenya, Tanzania and Rwanda (same Visa) Safe (unlike Congo or Rwanda) National Parks: Bwindi, Murchison, Queen Elizabeth (famous for the climbing lyons) 1,5 M international tourists accounting for 7,75% GDP 5 Analysis Recommendations Implementation Plan Financials & Risks
Key topics/channels Mamaland Safaris Taylored safaries, Focus on customer experience Local guides Fleet of 4 cars and 1 bus ( + renting on demand) Woodland Lodges Vertical integration Total experience control Affordable lodging Locations close to Natural Parks: Pumba; Hornbull; Topi 6 Analysis Recommendations Implementation Plan Financials & Risks
Key topics/channels Mamaland Safaris Taylored safaries, Focus on customer experience Local guides Fleet of 4 cars and 1 bus ( + renting on demand) Profit 200000 000 150000 000 100000 000 50000 000 - Woodland Lodges 17 18 19 20 21 -50000 000 Vertical integration Total experience control Affordable lodging Locations close to Natural Parks: Pumba; Hornbull; Topi -100000 000 MAMALAND Profit WOODLAND LODGES Profit Due to the Covid 19 pandemic, Mr. Tony had to size down the business but he managed to survive. With the fast recovery of the tourism industry, the question now is: where should he invest? 7 Analysis Recommendations Implementation Plan Financials & Risks
Who is the tourist? Mamaland Safaris and Woodland Lodges Uganda Travel Industy 32% business tourism Aged 17-55 with good fitness levels 25% leisure (21% looking for adventure) Spends 3-4 days Adventure accounts for 89% of expenditure Looking for adventure Mostly business clients European and North American are the greatest spenders (> USD 1000) Reached by word to mouth Many would return for a new experience 8 Analysis Recommendations Implementation Plan Financials & Risks
Who is the tourist? Mamaland Safaris and Woodland Lodges Uganda Travel Industy 32% business tourism Aged 17-55 with good fitness levels 25% leisure (21% looking for adventure) Spends 3-4 days Adventure accounts for 89% of expenditure Looking for adventure Mostly business clients European and North American are the greatest spenders (> USD 1000) Reached by word to mouth Many would return for a new experience Looking at Uganda s tourist profile, both businesses have a great potential for expansion. But they need to choose and focus on a specific client segment. 9 Analysis Recommendations Implementation Plan Financials & Risks
Where is the competition standing? Price Low High Gorila Tours Matoke Tours High Mamaland Safaris Quality Low Karumanu Safari 10 Analysis Recommendations Implementation Plan Financials & Risks
Where is the competition standing? Price Margins Gorila Tours Matoke Tours Low High 60% Mamaland Safaris 15% Gorila Tours Matoke Tours High 40% Woodland Lodges Mamaland Safaris Quality Net Margin 50.00% 0.00% 17 18 19 20 21 -50.00% Low -100.00% Karumanu Safari WOODLAND LODGES Net Margin WOODLAND LODGES Net Margin 11 Analysis Recommendations Implementation Plan Financials & Risks
Summing up Product Product Price Price Place Promotion Tailored fit Topi and Pumba: Queen Elisabeth s National Park Gorilas, Big 5, Birds, Exotic animals Budget to Mid Range Currently only word to mouth. Hornbill Bush Lodge: Murchison Falls National Park Different areas/parks Margin needs to improve. Is there room to increase price? How can the offer be improved? Missing a clear definition of what their value proposition is How to capitalize it? New channels/platforms? Invest in same locations or opt for new ones? 12 Analysis Recommendations Implementation Plan Financials & Risks
Which should Mamaland Safaris & Woodland Lodges growth strategy be, over the next 3 years to achieve a 23% growth ?
Recommendations for the future of Mamaland and Woodland Which should Mamaland Safaris & Woodland Lodges growth strategy be, over the next 3 years to achieve a 23% growth ? Challenge Key Issues Costumer Segment Costumer Acquisition Method Locations Recomen- dations 14 Analysis Recommendations Implementation Plan Financials & Risks
Recommendations for the future of Mamaland and Woodland Which should Mamaland Safaris & Woodland Lodges growth strategy be, over the next 3 years to achieve a 23% growth ? Challenge Key Issues Costumer Segment Costumer Acquisition Method Locations Recomen- dations Bwindi Gorilla Resort New Marketing Strategy 15 Analysis Recommendations Implementation Plan Financials & Risks
Recommendations for the future of Mamaland and Woodland Which should Mamaland Safaris & Woodland Lodges growth strategy be, over the next 3 years to achieve a 23% growth ? Challenge Key Issues Costumer Acquisition Method Locations Recomen- dations Bwindi Gorilla Resort New Marketing Strategy 16 Analysis Recommendations Implementation Plan Financials & Risks
Addressing customer segments and strategy New Marketing Strategy Bwindi Gorilla Resort Current business model lacks clarity We recommend implementing a marketing strategy inline with the current offering. What? Why? A clear strategy will allow focus of resources and efforts towards the most effective activities. Product Price Place Promotion Adventure and Experience tours Adventure: 18-45 Exploratory BIG 5/Gorillas Experience: 45+ Cultural Local tribes Referral system with 10% discount for future experience. Targeted advertisement via LinkedIn and Instagram. Price per person of 1000usd. Uganda. Keep proximity to national parks. How? 17 Analysis Recommendations Implementation Plan Financials & Risks
Recommendations for the future of Mamaland and Woodland Which should Mamaland Safaris & Woodland Lodges growth strategy be, over the next 3 years to achieve a 23% growth ? Challenge Key Issues Costumer Acquisition Method Locations Recomen- dations Bwindi Gorilla Resort New Marketing Strategy 18 Analysis Recommendations Implementation Plan Financials & Risks
Selecting a new lodging location CRITERIA Investment Needed Tourist traffic Proximity to Park TOTAL Competitors ALTERNATIVES Bwindi Entebbe Scale 1-5, least to most desirable 19 Analysis Recommendations Implementation Plan Financials & Risks
Selecting a new lodging location CRITERIA Investment Needed Tourist traffic Proximity to Park TOTAL Competitors ALTERNATIVES Bwindi 2 4 3 5 14 Entebbe 4 3 1 2 10 Scale 1-5, least to most desirable 20 Analysis Recommendations Implementation Plan Financials & Risks
New lodging facility in Bwindi New Marketing Strategy Bwindi Gorilla Resort Existing locations favor proximity to national parks and tour potential. We recommend building a new lodge near Bwindi. What? Why? Proximity to additional gorilla tours and high tourist traffic. Identify location with prime access to Bwindi Impenetrable National Park access to diverse wildlife. Focus on customer experience- Recruit and train staff, focusing on interaction and satisfaction. The lodge should be designed to blend in with the natural surroundings, focusing on cultural immersion rather than a luxury type experience. Provide dining based on local cuisine. Operate with the safety and security of guests in mind, clearly communicating that crime rates of one country are not reflections of the continent. Community involvement: It is important to involve and engage the local community in the planning and operation of the lodge, to ensure that it is a positive and mutually beneficial development for all stakeholders. How? By focusing on these key points, you can help ensure that your lodge for safari in Bwindi is successful and provides a high-quality experience for guests 21 Analysis Recommendations Implementation Plan Financials & Risks
The following timeline illustrates the steps to implement a marketing strategy aligned with the company core values but capable of attracting a specifique and profitable costumer segment NEW Marketing Strategy New Facility 23 Analysis Recommendations Implementation Plan Financials & Risks
The following timeline illustrates all the step required to develop the new Gorilla Resort in Bwindi, the KPIs allow for tracking success New Marketing Strategy Ne 24 Analysis Recommendations Implementation Plan Financials & Risks
Financial Assumptions and Calculations Projected new Revenues Quantity Price (USD) Price (UGX Millions) Growth Rate Key Highlights Pack Adventure (75% sales) 11 1 000 3 333 333 20% 1 lodge Pack Leisure (25% sales) 4 6 people capacity (10 day capacity) 15 packs/month Total 180 180 000 600 000 000 26 Analysis Recommendations Implementation Plan Financials & Risks
Financial Assumptions and Calculations Projected new Revenues Quantity Price (USD) Price (UGX Millions) Growth Rate Key Highlights Pack Adventure (75% sales) 11 1 000 3 333 333 20% 1 lodge Pack Leisure (25% sales) 4 6 people capacity (10 day capacity) 15 packs/month Total 180 180 000 600 000 000 Projected new OPEX Traninig Staff Renting new Vehicles General, Admin. and Sales Staff Marketing and Comunication 0 1 2 3 900 1 080 2 880 1 440 1 080 720 1 296 3 456 1 728 1 296 864 2 400 1 200 900 600 Leveraging on existing fixed costs 27 Analysis Recommendations Implementation Plan Financials & Risks
Financial Assumptions and Calculations Projected new Revenues Quantity Price (USD) Price (UGX Millions) Growth Rate Key Highlights Pack Adventure (75% sales) 11 1 000 3 333 333 20% 1 lodge Pack Leisure (25% sales) 4 6 people capacity (10 day stay) 15 packs/month Total 180 180 000 600 000 000 Projected new OPEX Traninig Staff Renting new Vehicles General, Admin. and Sales Staff Marketing and Comunication Implementation Costs 0 1 2 3 900 1 080 2 880 1 440 1 080 720 1 296 3 456 1 728 1 296 864 2 400 1 200 900 600 Leveraging on existing fixed costs 5 000 Investments New Lodge USD UGX 1 New Lodge 30 000 100 000 000 28 Analysis Recommendations Implementation Plan Financials & Risks
Financial Impact Income Statement USD 0 1 2 3 Revenues Operating Expenses Net Profit - 15 000 9 000 6 000 18 000 10 800 7 200 21 600 12 960 8 640 5 000 - 5 000 Gross Margin Operating Margin 20,00% 60,00% Cash Flows Statement Investments Depreciations USD 0 1 2 3 35 000 - - - 875 875 875 Project's Free Cash Flows Present Value of Cash Flows (35 000) (35 000) 6 875 6 250 8 075 6 674 9 515 7 149 WACC Equity Ratio 10% 100% 29 Analysis Recommendations Implementation Plan Financials & Risks
Risk Assessment Risk Mitigation Risk Matrix VERY HIGH A local strategy is also capable of targeting African tourists New restrictions for International tourism 1 HIGH PROBABILITY 2 MEDIUM Pricing Increase 2 Increased Costs 3 LOW 1 Difficulty to attract International tourists for safety concernes VERY LOW Direct marketing communication towards safety 3 VERY HIGH VERY LOW LOW MEDIUM IMPACT HIGH 30 Analysis Recommendations Implementation Plan Financials & Risks
Summing up our recommendations Which should Mamaland Safaris & Woodland Lodges growth strategy be, over the next 3 years to achieve a 23% growth ? How can ? Challenge Costumer Acquisition Method Locations AX XX Key Issues Recomen- dations New Marketing Strategy Bwindi Gorilla Resort The world has changed and these changes represent great opportunities Adopting a communication strategy is crucial to attract a new and more profitable costumer segment Communicate products clearly Capitalize on know-how and previous experience Combine the best of the lodge experience and the best of the safari experience all in one place 31
Thank You! Q&A
