Marketing Plan for Moc B&BGood idea for anyone...
...r who has the expendable income available for such vacation spots as the Enchantment Inn. The Enchanted Inn Marketing Plan focuses on 6 surrounding Bay area counties which include Alameda, Contra Costa, Sacramento, Santa Clara, San Francisco and San Mateo. Using the current population information for each County based on the following order of criteria: • Total County Population • Percentage of the total population 25 years of age and over w/ BA degree or higher (thus those with higher education tend to earn more = expendable vacation income) • Percentage of this population 10% to 15% depending on total population County Size, contain those who may live in suburban county areas. The chart below depicts the percentage of each population used to target in initial Direct Mail Campaign. Using this matrix we will target each of the counties based on these numbers for the purpose of our Direct Mail campaigns. For brochure distribution we have chosen a number of local area travel agencies as well as local businesses to supply each with The Enchantment Inn informational Brochure which will also be used in a similar variation for the direct mail pieces. Competitors / Substitutes The Competition Napa Valley such as Saint Helena has developed rules & regulations limiting the potential competition to other small name operations. These laws protect our operation from future development of big name well known 'chain' operations that have the advantage of shared marketing expense costs with global properties. Competition is firm in the Napa valley as there are a number of lodging choices available, however as the development is limited we get to enjoy an almost guaranteed maximum occupancy during the summer season. Our strategy in regards to our competition shall be one of cooperation. As part of our entry into the B&B environment in Napa Valley we will work with our competition to form an association and work very cooperatively together locally. We can then consider pooling certain resources such as advertising which can make economic sense for the other Inn’s as well as ours. Because of the high occupancy in the summer we can also share mutual referrals. We have conducted the following activities and will continue to do so in an ongoing effort to stay on top of our market and environment. Visited our competition, collected brochures and menus and reviewed the competitions internet presence. We paid close attention to how customers are greeted when they arrive at the properties, close attention to the feel and layout of the check in area. Taking note of the ambiance, with specific attention to the noise levels, staff demeanor and guests’ apparent levels of satisfaction. Continuing to improve on our services we plan to occasionally stay in a room or when possible request to view the lodgings and tour the facilities. We will talk to the staff and find out what services they receive requests for the most and what is in most demand in our gift shop furthering the personalized feel to all of our guests. Branding our own water and providing it free of charge to our customers. We will also conduct a comprehensive review of the guarantees provided by our competitor properties to always be one step ahead of the competition throughout the year. Substitutes In order to contend as a vacation destination in the competitive rich environment that is the Napa Valley we will need to distinguish our site from the other options available in the area. Several of the competitors offer high-end rooms with many services on site or near by. These properties are typically more expensive and have more advertising budget. Additionally they have more of a 'hotel/resort' feel to them rather then the 'Inn/B&B' experience. The smaller property options focus on more intimate environments that have smaller yet more unique sets of rooms that can attract a buyer looking for a slower paced more intrinsic B&B experience. During the high season all the facilities mandate 2-3 night stays to prevent vacancies during high revenue periods. These sites also include breakfast, complimentary concierge services and partnerships with local activities. Below is an extensive list of possible substitutes our research team polled to obtain pricing, slogan, descriptions and seasonal rate information. All information was obtained from the Enchantment Inn Marketing staff directly and not through 3rd party’s or internet data, in order for us to ensure all of our data is as accurate as possible. ------------------------- Name: Beazley Inn (94574) Rating: ** Slogan: Napa's first Bed and breakfast is still its finest Description: Napa's first Bed and breakfast is still its finest. A beautiful, historic inn located in a Victorian neighborhood is steps from the trolley line to COPIA and the Napa River. Rates: Summer: $269 - $329 Winter: $225 - $329 Rooms: 21 Rooms Amenities: Strengths/Weaknesses: Small and intimate/low revenue and small marketing budget ---------------------- Name: Harvest Inn Rating: **** Slogan: You’re Escape in the Napa Valley Rates: Summer: $399 - $699 Winter: $319 - $629 Rooms: 74 Amenities: Room Service, Wireless Internet, Conference Facilities, Pool, Free Breakfast Spa Services Pets Allowed Business Center Free parking Handicapped rooms/facilities Concierge High Speed Internet Strengths/Weaknesses: Larger revenue stream, threat to large parties or wedding/lack of intimacy --------------------------------- Name: Ambrose Bierce House (94574) Rating: *** Slogan: Warm and enthusiastic hospitality Description: 1872 Victorian bed and breakfast inn Rates: Summer: $230 - $330 Winter: $175 - $250 Rooms: 5 Amenities: Free Breakfast Free Parking Free Newspaper No Smoking Rooms/Facilities Modem Lines in Room Concierge High Speed Internet AM/FM Alarm Clock Parking Free Local Telephone Calls Coffee Maker in Room Express Checkout Strengths/Weaknesses: Small and intimate/low revenue and small marketing budget -------------------------------------------- Name: Shady Oaks Country Inn Rating: *** Slogan: Napa Valley's Finest Description: Built in the 1880's the Two Story Structure Adjacent to the Main House Operated as a Winery from 1883 - 1887. Each Suite has a Separate Entrance and is Especially Private. Rates: Summer: $200 -$300 Winter: $150 - $250 Rooms: 5 Amenities: Parking Free Parking AM/FM Alarm Clock No Smoking Rooms/Facilities Free Newspaper Concierge Free Local Telephone Calls Modem Lines in Room Express Checkout Handicapped Rooms/Facilities Strengths/Weaknesses: Small and intimate/low revenue and small marketing budget -------------------------------------------- Name: Meadowood Napa Valley Rating: **** Slogan: Forty Years of Tradition Description: Surrounded by pristine vineyards and hills roamed by Robert Louis Stevenson, this superb Meadowood Napa Valley estate nestles in a private 250-acre valley. Rates: Summer: $750 -$950 Winter: $450 -$700 Rooms: 99 Amenities: Spa, Gold Course, Weddings, Conferences, Croquet, Tennis, Swimming, Hiking Strengths/Weaknesses: This is the #1 place in the Napa Valley, it is well established, and has a strong history. Larger revenue stream, threat to large parties or wedding/lack of intimacy -------------------------------------------- Name: The Inn at Southbridge Rating: ***** Slogan: The perfect destination for lodging in Napa Valley Description: The Inn at Southbridge provides the perfect destination for lodging in Napa Valley. Within walking distance of our quaint neighborhood, you will find a microcosm of the very best Napa Valley has to offer Rates: Summer: $375 - $475 Winter: $225 - $350 Rooms: 21 Amenities: Hairdryer in Room, Room Service, Coffee Maker in Room, Handicapped rooms/Facilities, Mini Bar, Meeting/Banquet Facilities, Restaurant, Pool, Fitness Center or Spa, Babysitting/Child Services, Television with Cable, Tennis, Barber/Beauty Shop, AM/FM alarm Clock, Safe Deposit Box Strengths/Weaknesses: Small and intimate/low revenue and small marketing budget After conducting our research we are extremely confident that the decision to open the property in Napa is a sound one. The level of competition is strong however several factors are encouraging. The limitations to the development of future competition provide us some protection for our investment. The long summers provide us with a firm revenue stream and more weekends than in most environments which will allow us more opportunity to operate with a lower marketing budget. The trend of high occupancy in the summer means that we will not have to suffer price cuts to keep the rooms full. Finally the proximity of the Napa Valley to the Sacramento and San Francisco Bay Area makes Napa a more realistic destination than the competing Bed & Breakfast Inn area’s such as Lake Tahoe, Carmel/Monterrey and Northern California area’s such as Healdsburg. The only recognized proximity threat is Sonoma Valley. Sonoma has far less international intrigue and draw than Napa and their vineyards are far more spread out over a larger area, making Napa a more intimate and convenient destination. Channels of Distribution While we acknowledge that as a service provider we really do not have channels of distribution we cannot ignore the tremendous importance and opportunity that Travel Agents, Online Travel Sites and Affiliate programs have for our revenue stream. Because of this we have chosen to utilize this section to discuss these three services. There are a number of channels of distribution available to us for marketing and selling out services. Brick and Mortar travel agencies, consolidator agencies, corporate travel groups and internet travel sites. Taking in to account our limited budget and the associated costs and time required to get set up and work with most of these options we will pursue the internet channel. This opportunity provides us with easy set up and minimal ongoing overheard to maintain and update information. We can receive valid usable statistics regarding property views, inquiries and sales metrics. There are also a large number of internet travel sites, which result in competitive rates for our commission and no upfront fee or cost to become a member. An additional benefit to using an internet site is that they have expansive marketing programs to bring in potential customers and this will be included as part of our partner program. As we are already located in a destination marketed to travelers via the internet sites requires this will require little effort on our part. We have the advantage that any traveler that is drawn to the internet site will often already be looking in our area so our competition will be limited to the direct competitors, as apposed to marketing globally to a general audience and competing with a global destination. All the travel websites offer Affiliate programs, which provide the potential for additional revenue by advertising the company on our site. In doing so we then have the opportunity to receive percentage based revenue on any booking made by a purchaser that navigates to their site from ours and makes a purchase. The following is a list of sites with affiliate programs that we polled for more information. While all the sites wanted specific personal data in order to speak with us directly we were able to obtain a fair amount of information directly from their online resources. Expedia.com This highly awarded site attracts huge volumes of travelers from multiple demographics. This site offers Percentage-based commissions on hotel and vacation package revenue. They also offer an Associates Program with a complete compensation plan for Associate marketing on the Internet. They have designed their program to be both competitive and comprehensive, allowing our property to maximize revenue earned from users sent to their e-commerce site. Expedia.com also provides the additional opportunity to build revenue by partnering with us and licensing us to include their logo and link to our web page. Expedia.com will pay us for any activity they receive that results in a visitor who purchases any product if they navigate to Expedia.com from our page. "Accommodation Transaction Fees. We will pay you three percent (3%) on Transaction Net Revenue, per Accommodation Transaction (“Accommodation Transaction Fees”)." Orbitz.com Orbitz actively seeks and welcomes the chance to partner with companies interested in improving the state of online travel and the services offered to consumers. Orbitz also offers an affiliate opportunity that would be a potential for a revenue stream. Hotels.com Hotels.com is owned by Expedia but markets their products differently bringing in other demographics using non-traditional methods. Hotel.com markets to the low cost and specialized traveler. They offer their services to those looking for a specific type of vacation. Specific to our service offering we would be well suited to participate in their partner program as they offer specialty attractions such as: • Romantic Getaways and Wine Country World The Online travel site opportunities are indisputable. It is widely known that the growth in this space has been phenomenal and we can expect a huge portion of our sales to be generated through the internet. Almost 25% of all domestic travel in the United States is booked online and in 2006 it is expected to reach $70 Billion dollars. The combination of a property specific website and online travel websites will allow potential customer the opportunity to see the Inn’s look and feel as well as have an advance view of the accommodations and grounds. Online shopping is most often used to conduct comparative research and our four season pricing structure will provide us just the advantage that brings in the online bargain hunter. The website also provides us with the additional advantage of being able to make immediate updates to property and price changes that would be more time consuming and costly in the period of published travel guides. This advantage allows us to be a nimble and efficient organization that can respond to changes and threats at the speed necessary to maintain our competitive advantage. Pricing The Napa Wine Country has a good amount of Bed and Breakfast options for both local guests and visiting guests. For the Enchantment Inn to be successful we will need to offer something the competition does not. For basic amenities we will offer the same the competition does. What we will do is market our product in a manner that will produce guests. The Enchantment Inn will use pricing, promotions, products and advertising as our marketing tools. We will combine the use of pricing, promotions, and products to provide offerings to stay competitive with others in our industry. We start with a basic pricing structure for each of the rooms offered at our Inn. We have 35 basic rooms called Dream Rooms, 11 Suites, and 4 Penthouses. The basic rates will be: Dream Rooms - $300.00 Suites - $450.00 Penthouse - $600 Typical rates are usually higher during the week due to the business traveler who tends to add to the need for additional occupancy. Then weekend rates will drop to attract other customers. For a Bed and Breakfast the process might be more beneficial reversed. Occupancy is higher during the weekends and holidays because typical guests are people who are not traveling on business but rather for a short getaway from both home and business. In order to gain more occupancy during the week the Enchantment Inn will offer room rates at a 10% discount from regular rates. This is a fairly high discount used to bring more people in during the week. A typical promotion for this ind...