FACULTY OF BUSINESS & ACCOUNTANCY

Program : Bachelor (Hons.) in Business Administration

Course : Marketing Management
Course Code : BBA 3733
Year/ Semester : III Year /V Semester
Assessment : Case Study
Weightage : 20 Marks
Date : 10thMay 2020–Sunday

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 Study the following case carefully and answer the questions asked at the end.

Re-introduction of hot air balloon in different parts of Nepal

Nepal is a country with great potential for tourism. Geographically, our country is unique and
has so much to offer. Yes, the adventure sports such as paragliding, skydiving, rafting,
cannoning, rock climbing and others have been gaining foreign attention. However, we lack
behind in promoting the once introduced and famous hot air balloons service in Nepal. One of
the old adventure sports in Nepal, Ballooning was one of the most exciting way to view beautiful
Himalayas and cultural assets of Nepal. It has been re-introduced in Pokhara but it hasn’t been
able to capture as much attention as in the past.

Product Specification: If you ask how big are the balloons. The diameter of most envelopes is
45 ft. to 55ft.; heights from 40 ft. to 90 ft. volumes from 19,000 to 260.000 cubic feet. It is made
of rip-stop nylon, just like parachutes, or the spinnaker on a sailboat. The material is treated with
polyurethane to stop porosity and contain the hot air. The basket is traditional wicker, like the
laundry baskets of days gone by. A basic balloon costs around $28,000 but can get more
expensive depending on art-work or special shapes. The number of people who fit in the balloon
depends on the size of the balloon .The number usually varies from 2 in sport balloons up to 12
in passenger balloons. The cost of the ride also includes light snack and drinks.

Data collection and tabulation: A preliminary study was done taking sample of 30 people,
including 7 foreign nationals. On the basis of the samples and survey following data was
obtained. People in 20 to 30 age group would love to fly in the hot air balloon while 30 to 40
years old showed least interest. Similarly, males had positive response and were more interested
in the idea of the re-introduction of hot air balloons than females.
Gender Percentage
Age Percentage Male 53%
Less than 20 17% Female 47%
yrs

20-30 yrs 56%

30-40 yrs 10%

40 yrs and 17%

above

Pricing: Upon enquiring about the price that the sample is willing to pay for the hot air balloon
ride, the following data was obtained. The above data shows that the majority of the general
public are offering less than Rs. 10,000 to experience in a Hot air balloon. Likewise, there are
people from the general public who are willing to pay from Rs. 10,000/- to Rs. 15,000/- The

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other two option which consist prices from Rs. 15,000 to Rs. 20,000/- and above indicate there
are few people from the public willing to pay higher prices for a hot air balloon experience

Willingness to pay Percentage

Less than Rs 10,000 50%

Rs 10,000 to Rs 15,000 37%

Rs 15,000 to Rs 20,000 10%

Rs 20,000 and above 3%

Questions:

1. What value are we looking to offer with the reintroduction of hot air balloons in Nepal?
Explain how this value will create customer satisfaction.

2. How do you plan on setting the price of the ride? Also, mention the level of products in this
case study.

3. Explain about the customer segmentation and targeting along with what consumer behavior
they are likely to demonstrate on the basis of this case study.

4. How will you create brand equity of the hot air balloon? Also, explain about different
marketing communication mix that will be used to communicate about the brand image with
the potential customer.

*****BEST OF LUCK*****