1.1 Executive Summary
Green Paradise Budget Hotel operates in 90, JalanPetaling, 50000, Kuala Lumpur. As a new entrant in budget hotel industry, Green Paradise is selling its brand new Go Green Concept to the customer. Customer can gain new experience and enjoy affordable price in Green Paradise Budget Hotel.
In the first year, Green Paradise may suffer loss for the budget hotel’s expenses. Green Paradise Budget Hotel will gain back net profile of RM 200,000 in the second year. Green Paradise Budget Hotel estimated to be at least 15% net profit and revenue increase in the following years.
Green Paradise Budget Hotel will develop some marketing strategies to gain the sales target. First of all, the company will advertise through newspaper, social networks such as Facebook and Twitter to raise the popularity and sales. The company website will also be created for customer convenience. The customer can check the rate of room through the website and others related information. The company will gain customer loyalty and satisfaction.
Green Paradise Budget Hotel is limited company owned by 5 persons. They are Chia Pei Jing, Choo Yee Ying, Tan Chu Xin, Lim Shee Wei and Chai TeikJian. The company will apply RM 350 000 business loan from bank for the financial sources of the company. The 60% of the capital will be used for buying equipment, renovation, facilities and others. Besides, 40% of the capital will be used for the marketing expenses and also to run the company daily activities.

1.2 Company and Business Description
Green Paradise Budget Hotel is a modern budget hotel which is located at the famous street of Kuala Lumpur, which is the Petaling Street. The hotel mainly implies the ‘Go Green” concept by using recyclable materials throughout the whole hotel. By implying this concept, this budget hotel is capable of providing the customers a low budget yet modern and comfortable hotel rooms for them to stay in it. Furthermore, this budget hotel is also taking the social responsibility to protect the environment and encouraging the customers to have an awareness to save our mother earth. The company core competency is the “Green Reward System”. This system is use to provide different rewards to the customers if they show their supports toward this “Go Green” concept. For an example, if the customers are able to divide their rubbish or waste materials into the “3R” recycle bin which is provided throughout the whole hotel, the company will be giving out a discount voucher of 10% to the customers or providing them a free breakfast voucher. This is to encourage our customer to support the “Go Green” activities and also help us to save a lot of cost. Green Paradise Budget Hotel is a limited company owned by five persons. They are Lim Shee Wei, Chia Pei Jing, Tan Chu Xin, Choo Yee Ying and Chai Teik Jian. They will be the directors of this company and will be directly involved in the whole management and operation of the hotel. Each of them will contribute a total of RM50, 000 into the company, amount a total contribution of RM250, 000 to start up the business.

2.0 Industry Analysis
Social Factor In recent year, people in Malaysia are more environmental consciousness as government and some non-government organization are putting much effort to arouse the importance of environment protection among them. Some greening activities that carry out by the organization such as no plastic bag on Saturday for all the shopping mall and people give an enthusiastic response for supporting this green activity. There is more and more people start to concern about the environmental problem and they are willing to purchase recyclable products. Due to this factor, Green Paradise Budget Hotel arises with green concept budget accommodation as selling point.
Economic Factor Based on World Economic Outlook (WEO) research found out that the global economic growth dropped about 3 percent in 2012 and it predicted that this slow growth trend are likely to be continue. This show that the gross domestic product (GDP) of many countries is difficult to increase and meanwhile the purchasing power of tourists are decreasing. They will prefer more on budgeting trip than luxury. Therefore, Green Paradise Budget Hotel offer tourists the lowest price rate of accommodation and the company believe that it can gain larger profit by attracting larger amount of customer.
Threats of Substitute For Green Paradise Budget Hotel, the threats for substitute is consider relatively high. This is because there are many competitors which exist around this hotel that act as the substitute for the customers if they do not choose to stay in here. When the threats of substitute that the hotel is facing are high, the industry profitability index will be suppressed strongly. This is due to customers will have more options to choose when they feel that the hotel is quite expensive or the environment is not good for them to stay in and they will choose to stay in another hotel instead. For an example, if Green Paradise Budget Hotel offers the same size of room but the price is relatively higher than the other hotels which are available nearby to the hotel, the customers might choose to walk off from this hotel and choose to stay in the other hotel which offers the same size of room but at a lower price as compared to Green Paradise Budget Hotel. Therefore, in order to reduce the like hood that the customers will switch to a substitute competitor, Green Paradise Budget Hotel offers good and comfortable environment rooms at a lower and affordable price with good hotel services and facilities to their customers to prevent them from switching to other competitors instead.
Rivalry Among Existing Firms For Green Paradise Budget Hotel, the rivalry among existing firms is relatively high as well. This is because Green Paradise Budget Hotel is situated at the Petaling Street which is also full of the same type of business industry as well. For example, the Hotel China Town Inn, D Oriental Inn Kuala Lumpur and Swiss Inn Hotel Kuala Lumpur are few of the fierce rivals that Green Paradise Budget Hotel has to compete with. One of the factors that determine the intensity of the rivalry among existing firms is the number and balance of competitors. For this, Green Paradise Budget Hotel certainly has many competitors and it deals with it by providing lower price rates to attract the customers. Next is the degree of difference between products. For this, Green Paradise Budget Hotel uses the special and unique concepts which is the “Go Green” concept to differ itself from the competitors and try to attract more customers. Next is the growth rate of an industry. For this, Green Paradise Budget Hotel is categorized as a slow-growth industry which means that the competition among the firms is stronger. Lastly is the level of fixed cost. For this, Green Paradise budget Hotel has a low level of fixed cost which enables it to offer lower price rates of rooms to its customers to stay in here.
Bargaining Power of Suppliers For Green Paradise Budget Hotel, the bargaining power of supplier is low as there are many suppliers to provide the go green materials to the only company in that area. Green Paradise is the only hotel that using green concept for all the equipment and therefore the suppliers has less bargain power. The company has plenty of solar system suppliers such as Green Electric Sdn Bhd, Real Magic Sdn Bhd, Green Solar Energy Sdn Bhd and Millennium Solar Technology Sdn Bhd and thus the Green Paradise can bargain and choose to purchase the equipment with lower cost. For recyclable furniture, there are different suppliers such as Teakita, WKB Recycle Furniture Trading and CT Wood Marketing Sdn Bhd. The switching cost for the company to change supplier is low and the company can switch to another supplier easily for lower cost.
Bargaining power of buyers For Green Paradise Budget Hotel, the bargaining power of buyers is low. It is depends much on the number of buyers and similar seller on that location. The buyers groups are consider large as the location is visit by a large amount of the tourists and backpackers which are the target customer of the company. Although that location have many similar budget hotel, but the price for each accommodation of Green Paradise Budget Hotel are the lowest if compare to other similar industry in that location. Therefore, the customer has low power to reduce the prices. Besides that, the degree to which Green Paradise Budget Hotel difference from the competitors are high as Green Paradise Budget Hotel is the only one which are using go green materials and also offering “ Green Reward System” that customer can claimed discount or free gifts with some simple green action. These are difference with other competitors and are a selling attraction to choose Green Paradise Budget Hotel.
Threat of New Entrants
For Green Paradise Budget Hotel, the threat of new entrants that it will be facing is consider being relatively high. First barrier is the economies of scale. Green Paradise Budget Hotel has created a large economy of scale by using the greening project, which is the “Go Green” concept in its hotel. This causes the new entrants hard to break into this industry as this project requires high level of cost disadvantages. Next is the product differentiation barrier. Green Paradise Budget Hotel has made itself different among the other budget hotels. Besides providing the best hotel services and low prices for the customers, Green Paradise Budget Hotel also applies the “Go Green” concept in its hotel which makes it different from other budget hotels and creates a whole new living experience for the customer to stay in it. Lastly will be the government and legal barriers. To start up this Green Budget Hotel, a license for the land is needed by the government. Besides that, in order to apply the “Go Green” concept for this hotel, Green Paradise Budget Hotel must also obtain the government’s permission and license and this requires time and an amount of money in order to get this licenses. Some investors might feel this as a threat and time consuming so they will not choose to go on with it.
2.2 Market Analysis Green Paradise Budget Hotel targets those customers who are concern primarily about the price more than the quality level of the hotel. It usually suitable for those travelers and tourists who spend lesser time at indoors and therefore the company targets the most of backpackers, foreign travelers, local’s travelers and drop-in customers that rest for few hours in the budget hotel. The company target low income group and the customer with age group between 18- 40 years old. Green Paradise Budget Hotel target small size travelers but not on family travelers. As mentioned above, the budget hotel are providing accommodation for those backpackers or tourists that are spending more of their time at outdoors so they just need a place for sleep and cleaning purpose. In addition, more and more travelers especially backpackers prefer a budget trip that they are willing to spend less for accommodation fees and always choose the cheapest available as they have limited budget to travel further than other tourists. All the basic facilities are provided and the lowest prices are offered by Green Paradise to meet those customer needs. Besides that, some drop-in customer like those executive or working group who having meeting at that location and need a few hour rest also will be the company target group as budget room are provided to meet their wants by calculating rates per hour for this customer group. There are more green consumer who have strong conscious of environment conscious especially foreigners that concern about protection of environment issue. Green Paradise Budget Hotel target those foreign tourist that having high desire for go green environment.

Competitor Analysis CompanyName | Green Paradise Budget Hotel | Hotel China Town Inn | D Oriental Inn Kuala Lumpur | Swiss-Inn Kuala Lumpur | Hotel Ratings | 2-Star Rating Hotel | 2-Star Hotel Rating | 3-Star Hotel Rating | 3-Star Hotel Rating | Company Recognition | Low | Medium | High | High | Operating Hours | 24 hours everyday | 24 hours everyday | 24 hours everyday | 24 hours everyday | Types of RoomsAvailable | 3 Types:i.) Budget Roomii.) Single Roomiii.) Deluxe Room | 4 Types:i.) Economy Roomii.) Standard Roomiii.) Deluxe Roomiv.) Superior Room | 3 Types:i.) Standard Roomii.) Superior Roomiii.) Family Room | 3 Types:i.) Superior Roomii.) Deluxe Roomiii.) Family Room | Room Rates Range | RM50 - RM120 | RM60 - RM130 | RM108 – RM175 | RM145 -RM205 | Number of Room Available | 65 Rooms | 70 Rooms | 85 Rooms | 150 Rooms | Check In and Check Out Time | Check In and Check Out at 12 noon | Check In and Check Out at 12 noon | Check In at 3pm and Check Out at 12 noon | Check In at 3pm and Check Out at 12 noon | Parking Lots | Available at a surcharge of RM5 per day | Available at a surcharge of RM6.50 per day | Unavailable | Available at a surcharge of RM6 per day | Room Service | Available 24 hours | Available from 9am till 9pm | Available 24 hours | Available 24 hours | Facilities Available | Color Television (AstroChanels Available), Hot Water Kettle, Attached Bathroom With Hot & Cold Shower, Internet Access (Wi-Fi), Hairdryer, Air-Conditioner, IDD Telephone, Car Parks, | Cable Television (Astro Channels Available), IDD Telephone, Internet Access (Wi-Fi), Hairdryer, Safe Deposit Box, Writing Desk, Attached Bathroom, Extra Bed, Car Parks | Television (Astro Channels Available), Complimentary Wi-Fi Access, Hot and Cold Shower, Air Conditioner | Air Conditioning, Color television, In-House Movies, Minibar in All Rooms, IDD Telephone, Electronic Door Lock, Hair Dryer, Coffee and tea Maker, Attached Bathroom with Hot and Cold Shower, Internet Service, Multi-Purpose Function Room | Extra Services Available | Tour Guide Bookings, Laundry Services, Luggage Storing Services, Wake Up Call Services, CCTV Security System, On-line Ticketing | Tour Guide Bookings, Laundry Services, Luggage Storing Services, Wake Up Call Services, Taxi / Limousine Services | Free Mineral Water Daily, Laundry Service, City Tour, Cafeteria | Tour Counter, Laundry Services, Luggage Storage Facilities, On-line Ticketing, Currency Exchanger, Cafeteria |
Green Paradise Budget Hotel is located at the famous streets of Kuala Lumpur, the Petaling Street. This hotel offers travelers with a choice of low prices rooms but yet comfortable and enjoyable for them to stay. All the accommodation available in this hotel is fully furnished and the design of this hotel is the “Go Green” concept which creates awareness for the people who stay in here to do their part in recycling to save the mother earth. One step out of this hotel and you will find yourself indulge in the busy and wonderful Petaling Street which is also known as the Chinatown in Kuala Lumpur. This Chinatown offers a wide range of foods and beverages from local foods to foreign foods. Besides that, you can also find yourself a wide variety of local products as well as t-shirts, shoes and etc. At this hotel, you can also found convenience to get to the Kuala Lumpur city as it is near to the Puduraya bus station and the PasarSeni and Plaza Rakyat LRT station. Green Paradise Budget Hotel offers room with air conditioned and an attached bathroom which provides hot and cold shower for the travelers. Furthermore, Wi-Fi services, tour services, laundry and room services are also available in this hotel. Car parks are also available for those who are driving at the surcharge rate of RM5 per day.

Hotel China Town is a 2-star rated budget hotel which is situated in the heart of Kuala Lumpur's Chinatown. It offers cost-conscious travellers an international standard accommodation and services at an affordable price. The Hotel located in the night market which offers attractive furnished rooms that are quiet and fully furnished with air-condition, carpeted and attached bathroom with hot and cold showers. The Hotel has PABX telephone system, TV, Facsimile, E-mail, Internet, and laundry services. Also available services are the city tours and rent-a-car services.At Hotel China Town Inn, the open air shopping paradise is within a step in front of you and it starts right at the hotel's doorsteps. Here you can buy the likes of Malaysian T-shirts, batik, costume jewellery and wide variety of foods as well. Guests with cars can make use of the car park which is within 5 minutes walking distance from the Hotel. Parking rates is at RM6.50 per night.

D’ Oriental Inn Kuala Lumpur is strategically situated in the heart of the Chinatown Petaling Street, Kuala Lumpur, Malaysia. Travellers can indulge themselves in the shopping paradise of the Chinatown which hosts a wide variety of night and day bazaars and offers whole lots of stuffs from branded t-shits, watches, shoes and etc. Not to forget about the foods also as it is also surrounded by whole lots of hawker stalls which offer a wide variety of Malaysia’s famous foods for your taste buds. This hotel is also located near the Puduraya Bus Station and the Star LRT Station which enable the travellers to travel out to the town more conveniently. This hotel has 85 built and furnished rooms with complimentary Wi-Fi connections. All rooms are fully equip with an individual control air condition system, IDD telephone facility, colour TV, WIFI connection, safety box, laundry services and tour counter offering city and country tours are readily available for our guest.
Swiss-Inn Hotel Kuala Lumpur located at No. 62, Jalan Sultan, Kuala Lumpur, Malaysia, nestled in the heart of the city of Kuala Lumpur. Enjoying a central location, Swiss-Inn Kuala Lumpur is also able to present to its guest the sights and splendour of colourful Chinatown and downtown Kuala Lumpur. This colourful street of shops, restaurants and hawker stalls bustles with vitality. The main bus terminal of Kuala Lumpur, Puduraya and the Light Rail Transit System Station (LRT), PasarSeni Station, are located within 10 minutes walks.Swiss-Inn Kuala Lumpur Malaysia provides 151 fully furnished and tastefully design rooms, designed for your comfort at affordable prices. Standard features of rooms at Swiss-Inn Kuala Lumpur Malaysia includes Individually controlled air conditioning, Colour TV, In House Movies, Mini Bar In the Deluxe Rooms, Electronic Door Lock, IDD Telephone, Bedside Control Panel and many more.
In conclusion, Green Paradise Budget Hotel can be stated as the more outstanding hotel among its competitor. Although the company name recognition is low, but all the other factors enable it to compete well with its competitors. It operates 24 hours every day and provides 3 different selections of rooms for their customers to choose from at a low price as compared to other hotels. Besides that, the location of this hotel is also very strategic as it can be accessed by most of the public transport. It also provides parking spaces for the customers who drive to park their vehicles safely while staying in the hotel. Come to compare about the extra services available, Green Paradise Budget Hotel also do not lose its position but still stand at the same level as other higher class hotels by providing all of the same services available like the others at a low price also. Lastly, this hotel also has its own unique design and theme, which is the “Go Green” concept which makes it standout more outstanding than other hotels. 2.3 Marketing Plan
Process
Green Paradise Budget Hotel has a special concept which known as ‘Green Reward System’. This system are providing different reward to customer if they are showing their support in green activities throughout the period when they are staying in the budget hotel. If customer categorize their rubbish or wasted correctly into the 3R recycle bin, the company will be giving out a discount of 5 percent or either free meal voucher for selected restaurant for those customer. They can claim the offers after the company check the status of the room by using the green detector system whether the customer are handling properly for the waste.
Product and services
The business hour of Green Paradise budget hotel is 24 hours every day to taking reservation and performing check-in and out. The budget hotel provides 65 rooms which estimated can accommodate around 195 persons. All of the accommodation equipment are using recyclable material and the company holding three main principles to fulfill go green concept which are power saving, low water consumption and disposal of solid waste. By introduce this concept, the company cost are reduce in large amount and can offer a low budget price for each accommodation to meet customer needs.
Green Paradise budget hotel is a three storey building where the lowest floor is lobby. Whereas the rooms are categorized into three different sizes which are single room, deluxe room and budget room. There are 30 single rooms with one single bed which can accommodate maximum two people. For the deluxe room, the budget hotel provides 30 rooms which suits for 2 to 4 person with either two single beds or a king bed, while the rest of 5 budget rooms with a single bed are preferable for a backpacker who only want to rest for few hours. To ensure guests are live in a hygienic environment, the common areas will be thoroughly cleaned every 4 hours while the cleaning time for guest rooms is at 12-2pm.
Green Paradise budget hotel also provide complete basic services in every rooms like hot and cold shower, flat screen TV with satellite channels, air-conditioned, clean towel, shampoo and so on. Moreover, it offers free Wi-Fi in the entire hotel and the parking is free. Besides that, morning call is available to meet guests’ needs. They can actually request to customer service department to wake them up at the time they requested.
To be an ideal and successful budget hotel, it also provided CCTV within the corridor and lobby area to make sure that guests are live safety. In additional to that, for those traveler who has not packed enough cloth to last for the duration of their stay, they can take advantage of the laundry service which provided by this budget hotel. Green Paradise budget hotel also offer a full array of services such as tour guide service and contact taxi service for traveler. The tour guide service is divided into three different tours which are adventure tour, shopping tour and explore tour. The experienced and informative guide can satisfy guests by telling them where they can shop at reasonable price and how to get to the places they want to visit.
Place
Green Paradise budget hotel is located at 90, JalanPetaling, 50000 Kuala Lumpur. It is a three-storey corner lot building with an area of first floor dedicated to lobby. This place is nearby Petaling Street or known as Chinatown which is a famous hustling and bustling bargain market. Besides that, it is surrounding by Alamanda Hotel Petaling Street, Kolej Bandar and Swiss-Inn KL. Green Paradise budget hotel is being located in an easy accessible by public transport like LRT, monorail and bus as there are Pudu Raya LRT station, Maharajalela monorail station and PasarSeni bus station. A short walking distance about 15-20 minutes will get you to Green Paradise budget hotel. Thus, it is definitely an ideal location to start this budget hotel business.
Pricing
There are two payment options given to guests to pay for their room fees. First is direct payment by cash at Green Paradise budget hotel. Second is online payment through credit card or debit card when they make reservation. However, any booking will need to pay within 24 hours. If payment is not received within 24 hours, the booking will be automatically cancelled.
The pricing strategy is lower than competitor. Pricing for a single room with maximum two persons is charged at RM 70 per day. For deluxe room, it costs RM 100 per day whereas the pricing for budget room is RM50 per 3hours. All the basic services provided in room are included in the price stated above. However, any extra services such as extra mattress or extra shampoo may need to pay for extra service charge. Furthermore, different tour guide services that provided by Green Paradise budget hotel have different prices. Firstly, shopping tour costs RM 50 for four places which are Pavillion, Sungei Wang, Time Square and KLCC. Secondly, RM 120 per person for adventure tour which includes Batu Caves, Zoo and KL Bird Park. Lastly, Petrol Science, Aquarium and Museum are some of the popular attractions which guests can visit by joining explore tour which is RM180 per person. In the first month of opening day, Green Paradise budget hotel will give a 20% discount to the top fifty guests for any room.
Promotion
Green Paradise budget hotel will distribute direct mails like brochures and flyers as promotion once a month to the nearby offices or passerby. Moreover, newspaper will also be the promotion way to reaching new guests as well as maintain previous customers. The short and brief information about Green Paradise budget hotel will be summarizes such as the primarily benefits and features of the budget hotel, the range of services offer and promotion of specific events. Apart from that, social network is also one of the promotion methods for Green Paradise budget hotel to advertise to the rest of the world. Sign in an account on Facebook and Twitter allows the budget hotel engage guests and reach out to potential customers. All the company information, accommodation environment, special discount rates and promotion events will be post on that fans page so that the customer can know the latest news of the budget hotel. When people join these networks, they can comment, like or retweet on any post and all of the users are able to visit the website, therefore reaching more people. In addition to that, a 50% discount is given to the guests during go green day. With doing this promotion can attract more people and increase the publicity. Besides that, Green Paradise budget hotel also partnership with travel agency such as Groupon Malaysia and Cuti-Cuti Malaysia to promote to the rest of world and gain new customer. These promotion strategies can minimize the cost spending yet gain high sales.