INDUSTRIAL PROCESSES

"MARKET ANALYSIS OF URKU INTI LODGING".

Unit 3: Designing an Entrepreneurship Project

NAME: Alexandra Yasna Aguilera Sánchez.

CAREER: Engineering in Risk Prevention, Quality and Environment.
SUBJECT: Entrepreneurship.
PROFESSOR: Jaime Esteban Olivos Daza.
DATE: November 27, 2018.
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Content

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Introduction

For the development of an entrepreneurial project, the creation of a business plan is

relevant, thus allowing to take advantage of the opportunities and face the obstacles in
order to be competitive and successful in the market to be addressed.

Creating a business plan requires critical and global thinking about all the issues that will
be part of the project, such as: the business concept, the business opportunity, the
competitive landscape, the keys to success and the people who will be involved. (Harvard
Business Publishing, 2009)

The most typical structure of a business plan proposed by Harvard Business Press in
their book "Creating a Business Plan", contains the following points: Title page and table
of contents, Business description, Industry background, Market analysis, Management
team, Executive summary, Business environment analysis, Competitive analysis,
Operating plan, Financial plan, and finally, Accompanying information and proposed
milestones. (Harvard Business Publishing, 2009)

The market analysis stage, which is the objective of this report, focuses on the target
market to be reached, in addition to defining the group of people or companies that will
choose to buy the product offered, where they come from and what characteristics they
have. (INACAP, 2018)

A market analysis of Hospedaje Urku Inti, which was born from a family initiative 5 years
ago, providing services to the mining industry, under the name of Hospedaje "Amanda",
where its owner Fabiola Rojas worked with her mother and sister. When the mining
lodging project was finished, Fabiola decided to expand her house and gave shape to the
Urku Inti Hostel. (Andacollo Connected, 2016)

The points touched upon in the present installment are: The group of people or
companies that will choose to buy the service offered by Hospedaje Urku Inti, the
characteristics of the service so that the public demands it, the positive turn it took from
lodging miners to lodging tourists and the lodgings or lodgings that are competitors of
Hospedaje Urku Inti in Andacollo.
Development

1. Group of people or companies that will choose to purchase the service offered by
Hospedaje Urku Inti.

The service offered by Urku Inti lodging, initially focused on workers belonging to the
mining company Teck Carmen de Andacollo, its initial name was "Amanda" (Andacollo
Conectado, 2016). When the mining operations began to decline in the sector, they had
to broaden their target audience by focusing on potential tourists in the area and mining
contractors.

- We can characterize the group according to the geographical location where the
target group of the services and therefore the accommodation center is located.
Andacollo is located 57 kms away. southeast of La Serena, immersed between 2
hills and at an altitude of 1,100 meters above sea level. Known as a former mining
town, it was home to Carmen de Andacollo, an open-pit copper mining operation
located adjacent to the town of Andacollo at an elevation of 1,000 meters above
sea level and approximately 55 kilometers southeast of the city of La Serena.
(Teck, 2014)
Hostal Urku Inti is located exactly at Jaime Errazuriz 640, Andacollo, and currently
accommodates tourists visiting the area.

Location Hostal Urku Inti. Source: Google Maps Urku Inti Hostel. Source: www.turismoenchile.cl

- Another aspect of relevance is tourism, which is one of the axes that has been most
 promoted in the area, in this way Hostal Urku Inti has been able to sustain itself over
time, considering that one of the main pillars of tourism in Andacollo is the religious
festivities of the Virgin of Andacollo, taking place twice a year with a huge floating
population. During the rest of the year, there is an important concurrence of faithful
and visitors who come to the city, linked to this image of the Virgin. There are two
temples, both declared National Monuments, and the Collowara tourist observatory,
inaugurated in 2004, as well as the Antakari route, allowing hotel activity in the sector.

- Regarding the requirements of the target public, depending on its characteristics,

these changed over time. When it housed mine workers, it was obviously intended to
provide a much more homemade service and with the basic services of the clients,
considering that, according to the characteristics of the work performed by them, they
needed food according to the shifts that corresponded to them in the mine, breakfast,
lunch, eleven and/or dinner; and rooms to sleep during the hours after the workday.
When the industry expanded, the services offered had to be reoriented, giving an
added value to the service, since the demands of tourists can be very different
compared to workers, for example, there is the possibility of circuits within the
commune, to the mining mills, trekking, where lunch is offered at 1,500 meters above
sea level.

- The demographic characteristics of the clients are also important, since several of the
tourists are religious believers, with medium to high income levels, with a wide age
range, since the hostel hosts groups from different areas, such as sports, religious,
artistic, and artistic, among others.The hostel also hosts groups from various fields,
including sports, religious, artistic, and others, as well as other activities other than
lodging, such as walks and tours for children from local schools, free of charge. It is,
therefore, a service that allows the coexistence of different social classes, groups of
people, cultures, ages, among others.

2. Characteristics of the Urku Inti Hosting service for the public to demand it.

- Added value: The service must have certain aspects that stand out from the rest of the
services in the sector. For example, Urku Inti offers guided walks, visits to tourist
areas, and is working with Minera Treck to create a mining museum. Obviously, all
these instances are extremely attractive to tourists.
 Another aspect is that it is run by its owners, which guarantees a better quality of
service, since, as stated by its owner Fabiola Rojas, the hallmark that characterizes
them is "the love we put into our work..." (Andacollo Conectado, 2016).

The added value is the possibility of preparing events, such as weddings, graduations,
birthdays, among others, for individuals and companies, offering cocktail and
banqueting services.
In addition, they contribute to the social development of their surroundings and
minimize environmental impact, and have been awarded the Q quality seal and the S
sustainable seal by the National Tourism Service.

- Accessibility: Every tourist looks for lodging that allows easy accessibility by public or
private transportation as well as on foot. Likewise, its location should be such as to
allow quick and safe travel to tourist sites.

- Payment methods: A good service allows your customers to pay through a wide
variety of payment methods, such as: cash, credit and debit cards, commercial cards.

- Availability of private and shared bathrooms: This feature allows to target the public
that will demand the service, for example, when visited by groups of people (sports,
social, family, etc.) the availability of shared bathrooms is sufficient, but if we face
individual guests or couples, the presence of private bathrooms is required, thus
allowing, redundantly, greater privacy for customers.

- Food services: Regardless of the target group, a service that offers food (breakfast,
lunch, eleven and/or dinner) within its total cost, will be widely required by
customers, since it allows them to get away from the tediousness of cooking and
enjoy the products offered.

3. Positive turnaround for Hospedaje Urku Inti, from lodging miners to lodging tourists.

Definitely, the shift of the target group of Hospedaje Urky Inti towards tourist
accommodation was positive, since on the one hand it faced the decreasing mining
 market due to changes in Minera Treck's operations, and on the other hand, it allowed
them to expand their market not only to accommodation, but also to the tourism sector
as such through trekking activities and event organization.
Without the turnaround, the venture would have died once the mining lodge was
completed.

- The tourism sector had a strong growth in Andacollo, especially for its religious
festivals, but also Fabiola Rojas knew how to materialize her ideas in this area,
which was somewhat forced by the conditions that occurred with the mining
company, empowering herself through training provided by the company, which
allowed her to succeed in her entrepreneurial zeal.

- The positive aspect is that it gave rise to new income possibilities for the family,
since it not only stayed with tourism, but also gave rise to the organization of events
through cocktail and banqueting services, thus expanding its target audience to
individuals and companies that required its services. In this way, it holds events in
its hostel with a capacity for approximately 50 people, and also offers the possibility
of renting external venues when they are more massive.

- With respect to tourism again, not only did it opt for lodging, but it was further
enhanced with trekking activities to the mining mills of Andacollo, under the
umbrella of its complementary project "Cultural and Tourist Center".

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Machukuna" allowing the knowledge of the patrimonial and cultural richness of the
commune.

4. Lodgings or lodgings in competition with Hospedaje Urku Inti in Andacollo.

Once the service for the Treck miners was terminated, of the 65 lodges that were
originally in place, only 21 remained open.

Nowadays, the lodgings or accommodations in the Andacollo sector that represent a

competition for Hospedaje Urku Inti are:

- Hotel Kullu Kuri: Located at Sierra 604, Andacollo, it is the only Hotel in the
Commune, providing food services, breakfast, lunch and dinner in a pleasant family
atmosphere. Unlike Urku Inti, it has a mini gym very attractive for those tourists who
 do not leave aside the physical activity during their vacations; it also has a
telescope that allows to visualize, thanks to the climatic conditions and the quality
of its skies, diverse stars that give rise to what is known as "Andacollo, Land of
Stars".

It also has Wi - Fi service, cable and parking. (Virtual Tourism, 2018) The Hotel is
part of the Tierra de Astros Project, Tourism Agency, which conglomerates the
various renowned lodgings in the sector; and which has ISO 9001 "Quality
Management Systems" certification.

Hotel Kullu Kuri. Source: www.mapcarta.com

- Hostal Doña Rode: Located at Rodelinda Alvarado, 213 - Chepiquilla, Andacollo, this
hostel began its activities in March 2008, like Urku Inti, focused mainly on the mining
sector and in later years with an extension to different industries in the region and
tourism.

The competition with Hospedaje Urku Inti is mainly regarding the lodging and
gastronomic services, highlighting the main objective of providing an excellent lodging
service. (Hostal Doña Rode, 2018)
Like Urku Inti, the National Tourism Service has awarded it the "Q Seal" for tourism
quality, raising the level of tourist satisfaction.
 Hostal Doña Rode. Source: www.donarode.cl

- Alojamiento Familiar Carmen: Located at Avenida Portales 365, Andacollo; it offers a

pleasant family atmosphere, food services, breakfast, lunch and dinner; internet
service, cable and parking; but unlike the other lodgings and hostels, it has a medical
service. (Tierra de Astros, 2018)
It is also part of the Tierra de Astros Project, Tourism Agency, which brings together
the various renowned lodgings in the sector, and which is certified ISO 9001 "Quality
Management Systems" and has also the
"Q" seal of tourism quality awarded by the National Tourism Service, which
guarantees adequate and standardized service to customers.

Carmen Family Lodging. Source: www.tierradeastros.cl

Conclusion

The market analysis is essential to consider the creation of an enterprise in order to

evaluate the conditions of the environment and the potential customers of the products or
services offered, thus allowing: Minimize the risk of the business, identify problems and
opportunities and define the action plan that will make it competitive in the market.

The Urku Inti Lodging arose as a necessity of the mining company Teck Carmen de
Andacollo to lodge the workers of this one; but in front of the end of the functions of the
same one they knew how to reorient their objective public towards the tourist sector,
considering the possibilities that the Commune of Andacollo gave to be a highly visited
sector in its religious celebrations and as observatory of stars. At the same time, they
expanded their services to the area of events through cocktails and banqueting, and were
awarded the Q quality seal and the S sustainable seal by the National Tourism Service,
allowing them to be more competitive in the market.

Also, in response to the need for tourism, they created the complementary project
"Machukuna Cultural and Tourist Center" that allows trekking to the mining mills of
Andacollo.

Its main seal has to do with the hospitality of the hostel considering a family atmosphere
attended by its owners.

The shift towards the tourism area was extremely positive, since it allowed them to
continue with the enterprise and not end it once the mining functions were finished, as
happened with some of the lodgings in the sector.

Although there is competition from hostels, lodgings and hotels in Andacollo, from my
point of view, they do not allow to provide services of such quality and variety as Hostal
Urku Inti does; therefore, it is seen as a total success of enterprise with maximum quality
of services and market competitiveness.
Bibliography

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2018, from http://www.andacolloconectado.cl/index.php/hostal- urku-inti-making-
growing-tourism-in-andacollo/

- Harvard Business Publishing. (2009). Create a Business Plan. Boston: Impact Media
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harvard-business-publishing.html

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