Feasibility Study Template

1. Executive Summary

Al’Mah’buub Hajj and Um’rah Services Nigeria Ltd was incorporated in year 20000 as a service provider
to intending prilgrims for Hajj and Um’rah with the vision to provide a hitch free Hajj and Um’rah
services both in Nigera and Saudi Arabia. The company is situated in Abeokuta, Ogun State Nigeria.

Over the last several years , Al’Mah’buub Hajj and Um’rah Services has been acting as an agency for
Ogun State Pilgrims’ Welfare Board by taking intending pilgrims to Hajj through the board.

However, owing to the complaints of most of the Al’Mah’buub’s clients on:

 Delayed flights
 Bad accommodation
 Procurement of visa
 Welfares
 Stranding in the holy land

Al’Mah’buub is losing her clients to competitors who have moved away from being a mere agency of
government board to register with the National Hajj Commission (the regulatory body of Hajj and
Um’rah services in Nigeria) having registered with the International Air Transport Association (IATA).
This afford them the opportunity to book air ticket themselves, get befitting accommodation, procure
visa and above all take very good care of their clients and ensure they spend lesser days in the holy land
instead of being stranded.

Al’Mah’buub is in a position to capitalize on the shortcomings of the State Pilgrims’ Welfare Board by
standing on her own and register with relevant regulatory bodies both local and international utilizing
the existing technologies, industries best practices and an aggressive marketing campaing to ramp up
the company’s growth projections for the foreseeable future.

2. Description of Products and Services

Al’Mah’buub is considering a move to create a website where intending pilgrims can log in and access
every information needed about Hajj and Um’rah. They will also have the opportunity to purchase the
Hajj and Um’rah forms online and pay through the same platform.

Until now, Al’Mah’buub has only interacted with clients within its environment and this has been
through physical interactions with them which has limited the company’s activities within the
geographical regions where its office is situated. By doing so, Al’Mah’buub has not been able to
capitalize on the growing trend of online interaction within the Hajj and Um’rah marketplace. By offering
its products through an online platform, Al’Ma’buub can market its products to an entirely new market,
increase revenue and growth projections, and allow customers to purchase our registration form from
the convenience of their own homes.
3. Technology Considerations

Upgraded technological capability will be required for Al’Mah’buub to move toward offering an online
marketplace from which customers may purchase their registration forms and register with us for their
trips to the holy land.. Customers demand a simple and easy way by which to conduct online
transactions and it is imperative that all transactions are conducted in a secure manner. While
Al’Mah’buub maintains a web site with service lists and descriptions, it does not currently allow for Hajj
and Um’rah fares to be paid through the site except the registration form. This functionality (payment
for fares) must be integrated with our current web site to allow for secure payments to be made.
Additionally, new online marketing functionality must be considered in order to target existing and
potential customers through methods such as e-mailing lists, promotional advertisements, and loyalty
discounts.

While Al’Mah’buub maintains a small information technology (IT) group, the current staffers must be
retrained to be able to meet the standard an interface effectively with the Saudi Arabia’s ministry of Hajj
since every transaction is online now. Al’Mah’buub needs to upgrade its internet connection to a high
speed one and ensure the web server and software are equally upgraded to the latest ones. With the
addition of an e-commerce portal it is expected that there will be an overall cost increase of 5-10% for
web server operations and maintenance costs.

4. Product/Service Marketplace

Al’Mah’buub’s competitors have been doing well in the industry based on the shortcomings of the
governments Hajj boards there with the experience the company has garnered over the years coupled
with its vision of providing hitch free Hajj in both Nigeria and the Holy land the company should be able
to do well in the new situation especially when there is no company that has stood independent of the
government board in this environment.

Companies like Al’Hujaaj, Adson, Tasfan who are giants in the industries are all operating in Lagos.
Al’Mah’buub will ensure that services are brought closer to the people of Abeokuta that they will not
need to go to Lagos or Abuja before they can fulfil their dreams.

mand.

5. Marketing Strategy

The following strategies will be utilized by A’Mah’buub.

 Leveraging on the goodwill of the company with the existing clients by trying to convince them
the essence of being independent which is to serve them better.
 Aggressive sensitization through social, print and electronic media informing the public about
the independence of the company for effective and efficient service to the clients.
 Jingles on radio, television, flyers, and handbills informing the public about the itinerary of the
company for a calendar year
  Al’Mah’buub will implement a customer e mailing list in order to send service promotions, sales
advertisements, and other special offerings to customers who register.
 Al’Mah’buub will offer referral incentives to customers who refer our company to friends and
family. Al’Mah’buub will also maintain a customer database in order to determine its target
customer groups and geographical regions.

It is important to note that Al’Mah’buub current marketing staff will require training in ticketing which
will involve the use of Amadeus. This training will need to be contracted to a training provider as part of
our startup costs and schedule.

6. Organization and Staffing

With many new products or services there may be a need for additional staffing or for an organization to
restructure in order to accommodate the change. These are important considerations as they may result
in increased costs or require an organization to change its practices and processes.

Al’Mah’buub new situation is not anticipated to significantly affect the organizational structure of the
company. There are, however, the need to add one or two staff in the area of air ticketing and online
visa processing. All of these positions will work within existing departments and report to department
managers.

Staffing Position #1: Air ticketing Manager – this full time position will be in charge of online ticket
booking for both Hajj and Um’rah and report to the operation manager.

Staffing Position #2: Online Visa Processing Manager – this full time position will take charge of visa
procurement and report to the operation manager.

Staffing Position #3: Online Marketing Manager – this full time position will lead marketing staff in
identifying target customer groups/markets and conducting online advertising/marketing efforts to
maximize traffic to Al’Mah’buub’s online marketplace. This person will report to the company’s Director
of Marketing.

7. Schedule

Al’Mah’buub registration with the National Hajj Commission and International Air Transport Association
is expected to take three solid years before the commission can allocate Hajj seats for the company but
Um’rah seats will be allocated in the first year once the necessary documentation have been done.
Based on the policy of the commission, any company that wishes to operate independently must first
operate Um’rah for three consecutive years before they can be qualified to apply for hajj seats. The
strategy is for Al’Mah’buub to start with the um’rah and collaborate with existing companies with Hajj
operation license for the next three years when the company will be qualified to apply for Hajj seat.
online sales campaign is expected to take six months from project approval to launch of the e-commerce
platform. Many of the foundations for this platform, such as high-speed internet and web server
capability, are already available. The following is a high level schedule of some significant milestones for
Jan, 2021: Application for IATA license
March, 2021: IATA License Ready
April, 2021: Application for Um’rah license with Hajj Commission
May, 2021: Commencement of Um’rah services
April, 2022: Application for Second Um’rah license
April 2023: Application for 3rd Um’rah license
April 2024: Application for Hajj licence
July 2024: Commencement of Hajj services
Upon approval of this project a detailed schedule will be created by the assigned project team to include
all tasks and deliverables.

8. Financial Projections

The financial projections for Al’Mah’buub on this bold step of independence are highlighted in the table
below. These figures account for projected licenses procurement, online sales, additional staffing
requirements, and insurance costs, contract support for IT and training needs, and web server and
hosting costs.

The assumptions for these projections are as follows:

 Office rent projections remain unchanged

 All transactions are closed yearly with no carry-over to subsequent years

Year 1 Year 2 Year 3 Year 4 Year 5 5 Year To

N225,000,000 $425,000 $500,000 $650,000 $800,000 $2,725,00

N2,880,000 $170,000 $200,000 $235,000 $255,000 $1,020,00

N15,000,000 $58,000 $70,000 $78,000 $84,000 $332,000

N2,000,000 $25,000 $30,000 $35,000 $40,000 $152,000

N2,000,,000 $0 $0 $0 $0 $75,000

$399,000 $253,000 $300,000 $348,000 $379,000 $1,679,00

-$49,000 $172,000 $200,000 $302,000 $421,000 $1,046,00

9. Findings and Recommendations

This section of the feasibility study template provides an area where to summarize the findings of the
feasibility study and explain why this course of action is or is not recommended. This section may
include a description of pros and cons for the initiative being considered. This section should be brief
since most of the detail is included elsewhere in the document. Additionally, it should capture the
likelihood of success for the business idea being studied.
Based on the information presented in this feasibility study, it is recommended that ABC approves the
online sales initiative and begins project initiation. The findings of this feasibility study show that this
initiative will be highly beneficial to the organization and has a high probability of success. Key findings
are as follows:

Technology:

 Will utilize existing technology which lowers project risk

 E commerce infrastructure will be contracted out to vendor which allows ABC to share risk

 Once in place this technology is simple to operate and maintain for a relatively low cost

Marketing:

 This initiative will allow ABC to reach large number of target groups electronically at a low cost

 ABC can expand customer base beyond geographic areas where stores are currently located

 The marketplace for online chocolate and confection sales is in a steady state of growth

 ABC is able to differentiate itself from its competitors and will utilize incentive programs to
target new consumers

Organizational:

 Minimal increases to staffing are required with no changes to organizational structure

 No new facilities or capital investments are required

Financial:

 Break even point occurs early in the second year of operation

 Five year projections show online sales accounting for 25% of total sales

 ABC will be in position to capture greater market share by maintaining both an in-store and
online presence

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