Bed and Breakfast Business Plan
The Magnolia Inn is a beautiful facility that sits atop a bluff overlooking the Pacific Ocean in scenic Half Moon Bay California. The Inn offers seven individually furnished rooms, each with its own antique theme.
We are a complete bed and breakfast Inn with a full complementary breakfast served each morning to our guests. Magnolia’s target market strategy is based on becoming a destination of choice for professional couples in the greater San Francisco Bay area who are looking for a place to relax and recharge.
We will also advertise to the newly married couple who is looking for that special get away. It will be important for us to be visible to those potential guests who are traveling on Highway 101 through Half Moon Bay.
Related: 21 Steps To Start-Up
The Magnolia will have an eye catching sign that will alert potential customers and drop-ins of our existence. We will use the Yellow Pages in the Bay area to market our Inn, as well as a Web page on the Internet which will focus on the features the Inn has to offer. Each room will be displayed with its unique decor, as well the outside of the Inn showing the beautiful gardens and views of the Pacific Ocean.
Attractions within 30 miles of the Inn will be displayed with information about our shuttle service, room rates and directions. The Magnolia is confident that it will not take long to build a following that will put us at full capacity within the next year.
The Inn would like to see steady growth with a average of over 90% capacity for Year 1, with profits also growing at a rate of 10%.
Jim and Nancy Anderson are the sole owners of the Magnolia and live at the Inn year around. The Andersons are hands-on owners who oversee every aspect of the Inn’s operations. A small staff consisting of a cook and a maid will work at the Inn.
The cook will work 20 hours per week and the maid will be on the payroll 40 hours per week as she will also help Nancy take reservations and watch the front desk when needed. Nancy will oversee the inside operations working with the maid and cook as well as taking reservations. Jim will oversee the maintenance of the Inn and grounds and drive the van to shuttle guests when the need arises. Both Jim and Nancy will promote the Inn and oversee the advertising.
The Magnolia Inn intends to provide a serene setting for our guests to enjoy the many splendors of the beautiful California coast. Each guest will be treated with the kind of attention that is reserved for family.
When our guests arrive we want them to leave their troubles at the door and step into a world of luxury and rest.
As owners we intend to see that attention to detail and service will be followed by a staff dedicated to each guest.
1.2 Keys to Success
The primary keys to success for the Inn will be based on the following factors:
- Provide a facility that is first class with attention to detail.
- Give each guest a sense that he or she is our top priority.
- Provide quality meals.
- Retain our guests to ensure repeat bookings and referrals.
- Generate a customer satisfaction rate above 90%.
- Generate an average of $26,000 of sales each month.
- Stay above 90% occupancy each month.
The Magnolia Inn is a beautiful facility that sits atop a bluff over looking the Pacific Ocean in scenic Half Moon Bay California. We are a new start-up enterprise that will offer seven wonderfully furnished rooms to guests who want to get away from the ordinary.
Each room is individually furnished with antiques and there is a large deck with a hot tub overlooking the ocean. The Magnolia will provide a full breakfast each morning to our guests with no expense spared. Our target market is the professional couple who lives in the San Francisco area, or people looking for a place to honeymoon.
2.1 Company Ownership
The Magnolia Inn is owned and operated solely by Jim and Nancy Anderson. Jim and Nancy have refurbished a beautiful victorian home to accommodate 14 guests at a time in seven rooms.
This is a start-up enterprise for the Andersons who are equal owners in the business. Jim and Nancy purchased the property a little over a year ago and have worked this past year preparing to open the Inn.
2.2 Start-up Summary
The start-up costs will come to $38,000 (including cash required at start-up) which will be primarily financed by Jim and Nancy Anderson. Joe Anderson, Jim’s father has contributed $15,000 into the enterprise.
The costs of improvements to the building totaled $30,000. Jim and Nancy purchased the property a year ago with the intent of renovating and opening the business.
The Magnolia Inn provides four-star lodging on the beautiful central California coast. We are a complete bed and breakfast Inn with a full complementary breakfast served each morning.
Seven impeccable rooms, each with its own theme are ready to embrace the individual who is looking for solitude, or the more adventurish person who likes to be active.
We offer van trips to various locations of interest if guests are interested.
Market Analysis Summary
The Magnolia Inn’s target market strategy is based on becoming a destination choice for people in the greater San Francisco Bay region who are looking for a place to relax and recharge.
The target markets that we are going to pursue are people looking for a vacation destination, Honeymooners, and drop-in customers.
We envision many professional married and single customers making the short drive to Half Moon Bay from the greater Bay area to relax and enjoy the beautiful California coast.
Our setting and facility is a natural for people looking for a place to spend their honeymoon. With an eye catching sign on highway 101 we will bring in drop-in business.
The Magnolia would like to see a 10% increase of potential customers on a yearly basis.
4.1 Market Segmentation
The profile of our customer consists of the following geographic and demographic information.
Our immediate geographic market is the San Francisco Bay area with a population of over one million people.
A 200-mile geographic area would want to use the kind of services we offer. The total target area population is estimated at two million people.
- Male and female.
- Married and single.
- Combined annual income in excess of $75,000.
- Age range of 25 to 65 years. with a median age of 40.
- Work in a professional business setting.
4.2 Target Market Segment Strategy
Our target market strategy is based on becoming a destination for people who are looking to get away for a few days, on the beautiful California coast. Our marketing strategy is based on superior performance in the following areas:
- Quality facilities.
- Beautiful location.
- Customer service.
The target markets are separated into three segments; “Vacationers,” “Honeymooners,” and “Drop-ins.” The primary marketing opportunity is selling to these accessible target market segments that focuses on vacation and recreational needs.
The most dominant segment of the three is comprised of the San Francisco Bay and surrounding area. Half Moon Bay is approximately a 45 minute drive for Bay area residents.
Half Moon Bay can seem like a different world and this is attractive for those people who have the need to get away but do not have the time to go far.
Because of the beauty and location of our Inn, we will be a very attractive choice for people looking for a honeymoon location.
When rooms are available we will welcome the drop-in customer who is looking for a place to stay for the night. Our sign can be seen from highway 101 and we expect to get quite a few drop-ins.
4.3 Service Business Analysis
The Magnolia Inn is a seven room facility that provides over night lodging and breakfast in a luxurious setting on the beautiful California Coast.
There are several other Inns in the area as well as motels. Most people who need lodging in the area make reservations in advance to assure room availability.
Two other Bed and Breakfast Inns, the Riptide Inn, and the Bayshore Inn are our main competitors.
4.3.1 Competition and Buying Patterns
Typically in this industry the consumer is someone who is not just looking for a room to sleep in, but a facility that provides a homespun touch. A place that is unique and offers more personalized customer service.
Related: Competitor Analysis Example
Because each Inn is offering something unique to the guest, customer service and quality of the facilities are at the forefront of importance.
Location is also important and those Inns with an ocean view have an advantage, but with the limited number of rooms at Inns in the area there are enough customers to match the supply.
The Magnolia will not be competing on price as the price of a room is on the high end of the scale. Guests at the Magnolia are paying for more than just a room, they are paying for a oasis away from their hectic world.
Nightclub Resort Complex Business Plan
This sample business plan will guide you when wanting to open up a resort that offers nigh time entertainment.
Nighclub Resort Business Plan
The EbonySun entertainment resort will be one of the world’s largest night life entertainment facilities, located in the Gotham/Metropolis area. The owner, Mr. Clubb, has successfully opened and run 12 different Gotham nightclubs, casinos, and resorts. He will use his experience to launch the next all-in-one party place. EbonySun will have 400,000 square feet to entertain people in a unique way by providing 10 unique themes of nightclub rooms, with a capacity to handle 10,000 to 17,000 people in any given night. The goal is to provide a unique nightlife experience for all adults aged 21-40 living in the Gotham/Metropolis area. The facility will have 4 restaurants with different themes, 10 themed nightclub rooms, 10 individual offices, training and conference rooms, 2 VIP rooms and a large sports center complex for entertaining all kinds of people from nearby businesses and colleges in this area.
The entertainment facility will include a unique outside beach pool with mountains and waterfalls for conducting summer parties. The resort will provide parking facility for 50,000 people including 4 helicopter landing pads to accommodate high profile business executive travelers. This unique entertainment facility is located close to 150 universities and colleges which make it more attractive for college students market.
The EbonySun Entertainment Resort will conduct live concerts, and the different themed club rooms will have entertainments like South America’s wildest party, world’s largest dance floors, water bars, hot tub bars, Oxygen bars, New Orleans entertainment theme, 60’s & 70’s music entertainment, rooms with galaxy themes, country dance central, hip-hop and rock dance floors, Broadway themes, etc. The Sports Center has 100 TV terminals showing various world sports events and will also have over 200 gaming machines.
The goal is to provide a unique nightlife entertainment resort unlike any that exists anywhere in the U.S. at this time. With its unique themes and facilities, the EbonySun Entertainment Resort will be able to attract and serve 8 million people in the larger Gotham/Metropolis area.
To fund construction of the facility, and support its cash reserves during the first year, we are seeking $7.96 Million in equity financing. In addition to an equity stake in the company, investors will receive dividends up to three times their initial investment starting in the third year. This entertainment resort business plan has been developed to facilitate the startup of this venture, seek investment and assist the management team in running the company. Details of the investment offering can be found in the financial topics.
The BigBank Corp management has identified a need of a unique Nightlife entertainment Resort in Gotham/Metropolis area in Gotham. With its proximity to hundreds of colleges, the resort will generate good revenues through entertainment. Th objective of EbonySun project is to create an ultimate nightclub entertainment resort with multi national themes along with sports and dining facilities to create a unique night entertainment specially for college students and business executives in Gotham.
Become a leader in Nightlife Entertainment. Create one of a kind facility with 10 different themes, live concerts, multi-lever bars, various national theme rooms, huge dance floors, VIP luxury entertainment rooms etc
Capitalize on excellent location opportunity where there is no competitors exist at such large scale setup
Maintain tight control of costs, operations and cash flow through diligent management
Provide unique customer experience and create satisfied customers
EbonySun Entertainment Resort provides an unmatchable, unique exiting experience for Nightlife entertainment. We provide highest quality entertainment in wide range of theme based nightclub rooms. Provide facility for wildest party and dance events. Provide high quality and wide variety food facilities for people. Provide highest quality customer service through highly trained staff. Our goal is to be a step ahead of the competition. We want our customers to have more fun during their leisure time. Provide unique multinational food facilities in world class theme based nightlife entertainment centers. We want to be the leader in nightlife entertainment in U.S.
Keys to Success
The keys to success in achieving our goals are:
- Highest quality service.
- Managing finances to increase profit by reducing operating costs.
- Experienced management.
- Creating a unique entertainment effect. Increasing the number of repeated customers.
- Targeted Marketing through various advertising channels. Barriers to entry due to uniqueness of facility.
- Securing financing
- Maintaining and growing its referral networks to generate new and repeat sales.
- Improving efficiencies of operations.
- Price competitive service offerings
EbonySun Entertainment Resort is owned and operated by BigBank Corporation. The resort is funded through equity financing. The resort will be managed by professional management team to increase sales revenue and improve the rate of return from investment. The company is seeking $7.96 Million initial equity financing for building the facility. With its innovative business idea and unique location, the resort will be able to generate good revenues and rate of returns for its investors.
This unique entertainment facility is located close to 150 universities and colleges, which makes it more attractive for the college students market.
The parent company BigBank Corporation is currently seeking $7.96 million of equity financing to finance the new entertainment resort facility. Most of the expenses will be used for constructing the resort facility in Gotham/Gotham Metropolis area.
Long-term assets include the EbonySun resort structure, at 400,000 square feet of currently undeveloped real estate, and heavy duty equipment such as refrigeration units, kitchen equipment, and the like. Other Current Assets includes furniture and fixtures for every bar, restaurant, and dance hall in the structure. Lighting will be particularly elaborate, to create the different “moods” of each area.
The company will be jointly owned by its founder and outside investors. The founder, Mr. Clubb, has over 30 years of experience in the entertainment, resort, nightclub, and casino industries. Mr. Clubb will retain 40% ownership of the venture and serve as the General Manager for the first three years. He is offering 60% equity ownership for the remaining $5.96 Million of investment necessary to start this project. Every $99,333 of investment will buy 1% equity ownership. Ideally, 2 investors would make up the bulk of the funding. They will start receiving dividends in the third year, and would be eligible in the fifth year to opt for a buy-out option of their shares by Mr. Clubb.
The entertainment resort will have the following amenities:
- 10 individually-themed nightclub rooms for people with different tastes.
- 2 VIP Luxury rooms.
- 4 Restaurants seating 300 and a midnight cafe.
- 1 Sports Central Game room with over 100 TVs with various world sporting events and over 200 Gaming devices for customer entertainment.
- 15 rooms for entertainment, which cannot be matched.
- Outside beach pool with mountains and waterfalls for conducting summer parties.
- Parking for 50,000 people including 4 helicopter landing pads to accommodate high-profile business executive travelers.
Market Analysis Summary
The EbonySun Entertainment Resort has a wide variety of young people as their target market. The unique facility with dance and music along with bars and restaurants will attract young people living in the local area along with visiting tourists. The Metropolis area which has over 150 colleges and universities in the nearby area. These higher number of colleges makes it very easy to reach its students market through targeted advertising. The proximity of this area to these universities increases the success rate of this project.
The EbonySun Entertainment Resort is located in the Metropolis area of Gotham, which has over 150 colleges and universities in the nearby area. These higher number of colleges makes it very easy to reach its students market through targeted advertising. The proximity of this area to these universities increases the success rate of this project.
The target market can be separated into the following six categories:
- College Students: The closeness of EbonySun resort to various colleges and universities will help the resort attract students in and around the Metropolis area. The students will utilize the facility to hang out, spend vacation times and spring break time between semesters. The unique dance and other international themes will attract both U.S. and international students towards these entertainments. The market segmentation of these student category between ages between 18 – 26 is one of the most important customer segments of EbonySun resort. Most of this target market will be single male and female students, who will be interested in exploring new night life entertainment during their young age.
- Single Young Business Professionals – The second category of target market is young business professionals in and around our area between 25 and 40. This area has a lot of industries, including Dell, IBM, Tivoli etc. These corporations have lots of young executives, who have enough money to spend on high quality night entertainment. Currently these professionals are spending their time in small night clubs and bars for parties and get-togethers. With the availability of multi-themed entertainment like EbonySun, they will spend major portion of their income for these entertainments.
- Married Couples – People who are married and between the ages of 30 to 40, who have either one or two kids or don’t have any kids are targeted for this entertainment. The middle aged people have sound financial income and will be interested in spending an occasional weekend out for party. The Broadway-themed nightclub, and New York- and Paradise Island-themed restaurants will attract these people to enjoy their weekends and holidays in EbonySun.
- Tourists/Vacationers – The Metropolis, Gotham area is one of the important tourist areas for visitors from other states and also for the international tourists. This category of people will be interested in getting a unique experience by spending more money. EbonySun provides multilevel dance, hip-hop, and pop entertainment with awide variety of entertainment and restaurant themes in its facility. The tourists can be easily attracted to the facility by creating vacation packages with various airline agencies and local tourist help brokers. The age category can range between 25 – 40 for tourists.
Target Market Segment Strategy
The market is segmented based on the age and lifestyle category of each group. Market is also segmented into various categories for targeting different types of promotions and advertisements suitable for each target market segment.
- College Students: This segmentation is targeted for students of ages between 18 to 26. Students are more interested in drinks and dance and will find value in variety of nightclub theme rooms. The “Vault” nightclub room provides the largest dance floor, the world’s largest multilevel bar with live host concerts, which will definitely attract this market. The “Ozone and Cloud Nine” themes with Ozone dance music, water bars and hot tub bars will attract students to enjoy unique drink and dance entertainment which is not available anywhere in U.S. at this time. The “Carnival” themes will provide South American party theme and this will help targeting the international students. The “Fat Tuesday” with alternate music & metal play will attract students from various nationalities who wants to listen and hangout for a good time in the resort.
- Single Young Business Professionals: This segmentation is targeted for young business professional between the ages of 25 and 40. The business professionals will be interested in conducting business parties, client meetings, client entertainment and other social activities in places of unique entertainment. Compared to students, this segment has more potential to spend money in night life entertainment activities. This segment of the market can be attracted with corporate promotions and targeted corporate tie-ups for promotional dinner and entertainment activities. These business executives will enjoy “Sin City”-themed nightclub with unique Las Vegas theme with Ocean’s 11-type movie setup. The large dance floors with rap, hip-hop and rock music will easily attract young professionals. The business executives will be attracted to “Fat Tuesday New Orleans” theme which hold 15 bars and conduct wild parties. Target marketing for these market will be done through corporate promotions and targeted advertising.
- Married Couples: This segmentation is for people in the age group of 30 to 40 who are married and are interested in having fun outside. Most of this group will spend weekends in bars and restaurants or any other public entertainment places. This group enjoys 60’s, 70’s & 80’s music theme in “Throw Back Central” which has unique designs like Saturday Night Fever. This group enjoys “Carnival,” “Outer Limits” & “Broadway” themes. The Broadway theme will help them entertain like they are spending nights in the Big Apple. This market can be attracted through unique direct marketing promotions through coupons and free dinner offers.
- Tourists & Vacationers: This market targets people who visit this area from other parts of U.S. and other countries. The Metropolis area has over 250,000 tourists annually; approximately 150,000 of them are adults in our targeted age ranges. This market is constantly looking for better entertainment places and will be ready to spend more time and money for these unique entertainment resorts. The age group for this target market can vary between 20 to 40 years. Most of the tourists will be interested in all types of themes since they will get various experiences by visiting at different nightclub themes. This target market can be attracted by selective ad promotion through travel agencies. Tourists can also be attracted through big billboard ads placed near airports and hotels with promotional package advertisements.
Service Business Analysis
EbonySun Entertainment Resort is in the nightlife entertainment industry, along with casinos and other specialty restaurant businesses. The entertainment industry grows tremendously every year, making very good profits for businesses. The major competitors are restaurant, small nightclubs, major restaurant chains, other adult entertainment centers in the vicinity of Gotham/Metropolis area. The U.S. Census Bureau report shows that gambling industry made $20 billion dollars in revenue in Year 2002, out of which Gotham made approximately $8 billion revenue and other gambling industries, including nightclubs, made $7 billion dollars sales revenue. Amusement, Gambling & Recreation industries have grown from $62 billion in 1997 to 65 billion in 2002.
Competition and Buying Patterns
EbonySun is competing against other local nightclubs, but also against movie theatres, mini-golf, rock concerts, bowling, restaurants, plays, symphony performances, and free parties. We are competing for the disposable income and leisure time that our potential customers would otherwise spend elsewhere. However, once a potential customer has decided they want to go out to eat or to go dancing or listening to music, we are most closely competing with similar types of businesses: other restaurants, nightclubs, and concert venues. Our challenge is both to encourage them to choose activities we offer, and then to preferentially choose EbonySun over smaller, less unique options.
The Metropolis area has hundreds of thousands adults, age 21-40, who attend a concert or go out to a nightclub at least once a month. We not only have to encourage customers to come to our venue, but to choose this kind of entertainment over quieter ones. In the nightlife entertainment industry, people make choices about return visits based on the quality of the environment and experience, along with drinks and food. The price should be competitive enough to attract a wide variety of customers.
Vineyard Bed and Breakfast Business Plan
A sample business plan to make a success of your vineyard bed and breakfast.
Vineyard Bed and Breakfast Business Plan
The Enchanted Vineyard Bed & Breakfast is a charming bed and breakfast (B&B) located in the Lorane Valley, outside of Eugene, OR. The valley is well known for its beauty and concentration of vineyards. The B&B will be set up as a sole proprietorship of Missy Stewart. The B&B will reside in The Stewart’s newly renovated home. Their home is the center piece for the entire B&B experience. Each of the five rooms have their own private bath. The facility has a wonderful centralized living room for the socialization of the guests, a private garden patio, and an on-site winery on the Stewart’s 10 acres of land. To top things off, every room has 65% of their walls as windows offering guests an unprecedented view of the valley.
Within the hospitality industry, The Enchanted Vineyard will be competing with hotels and other B&Bs. Although The Enchanted Vineyard competes with hotels, their direct competitors are other B&Bs. Enchanted’s facilities are far nicer than other B&Bs for its size. All of the smaller (less than 9 rooms) B&B are a fairly standard house converted into a B&B, nothing noteworthy. Enchanted Vineyard on the other hand is a newly renovated house and vineyard in a picturesque setting.
The Enchanted Vineyard will be targeting three distinct groups. The first is weekend getaway travelers, generally people from Eugene looking to escape for the weekend. Eugene is a wonderful town in the Willamette River valley nationally renowned for its wineries, cycling and old growth trees. This customer group is growing at 11% a year with 12,000 potential customers. The second group is out-of-town travelers which is growing at 10% with 18,000 potential customers. The last group of customers the B&B is targeting are University of Oregon travelers. The university brings thousands of visitors to Eugene whether they are professors, speakers, or parents. Once a relationship has been established with the U of O, it will be a constant stream of business. This customer group is growing at 17% with 12,000 potential customers.
The Enchanted Vineyard has two distinct competitive edges that differentiates it from the competition. The first is the never-ending attention to detail and customer service. The Stewarts recognize that their mission is to ensure that their customers have the finest stay with them. Both Missy and John will do whatever it takes to ensure the customer’s happiness. Their second competitive edge is the unique facility. The facility is so wonderful in part because of the actual structure which is a wonderful place to stay. It is also unique because of the location, overlooking the Lorane Valley, a beautiful area filled with wineries and vineyards.
The Enchanted Vineyard will be able to execute on its strong business model because of its management. Missy has earned her MBA providing her with invaluable business skills. While Missy was pursuing her MBA, she was on a team of five students that opened up their own service business. Lastly, Missy has spent numerous years in the B&B industry, providing her with amazing insight and experience directly related to what she is doing now.
The Enchanted Vineyard will be able to leverage its amazing facility and turn it into a beautiful, special B&B serving the Eugene community. This will be done by the passion and experience of Missy Stewart, the sole proprietor. The B&B will become profitable by year two and will earn over $77,000 in revenue by the end of year three.
The Mission of The Enchanted Vineyard Bed & Breakfast is to provide the finest B&B experience. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers.
The objectives of The Enchanted Vineyard Bed & Breakfast for the first three years of operation include:
- To create a B&B whose primary goal is to exceed customer’s expectations.
- The usage of The Enchanted Vineyard Bed & Breakfast by visitors every week through out the year.
- To increase our number of clients by 20% per year through superior service.
- To develop a sustainable business, surviving off its own cash flow.
The Enchanted Vineyard Bed & Breakfast, located in the Lorane Valley, will offer a luxurious, quaint B&B for people to enjoy. The Enchanted Vineyard Bed & Breakfast will have four individual rooms with private baths, a central living room/socializing area, a garden patio, and an adjoining vineyard for its guests.
2.1 Company Ownership
The Enchanted Vineyard Bed & Breakfast is a sole proprietorship of Missy Stewart. The B&B uses John and Missy’s home as the Inn.
2.2 Start-up Summary
The Enchanted Vineyard Bed & Breakfast start-up expenses include:
- Home office equipment including: computer, copier, fax machine, extra telephone line, desk and filing cabinet.
- Extra computer for the living room with Internet access via a DSL line.
- Website creation.
- Advertising/association dues for the local B&B association.
- Remodeling of the house to add two individual bedrooms with baths, a patio and to enlarge the common areas.
Please note that the cost of the remodeling will be depreciated using the straight line method over a 30-year schedule. Although the Inn will have to finish their research into tax law, it does appear that the Inn will be allowed to depreciate the remodeling as the additions will be used only for business.
The Enchanted Vineyard Bed & Breakfast is a small, attractive B&B that offers travelers a secluded, relaxed setting for a weekend getaway, change of scenery, sports or cultural events, family occassions, U of O events, etc. The Enchanted Vineyard Bed & Breakfast has a large central gathering room that allows travelers to socialize. The customers will receive the personal attention of the Stewarts, who will meet any need a traveler has.
The Enchanted Vineyard Bed & Breakfast provides a wonderful breakfast feast and can meet any dietary restriction. The Enchanted Vineyard Bed & Breakfast is centrally located about 15 minutes from downtown Eugene in the heart of the Lorane Valley wine country. In fact, The Enchanted Vineyard Bed & Breakfast has its own vineyard which grows grapes for local wineries and clients are encouraged to explore The Enchanted Vineyard Bed & Breakfast’s 10 acres of land.
Market Analysis Summary
The Enchanted Vineyard Bed & Breakfast has three different target groups that it is attempting to attract. The first are people from the region that just want to get away for the weekend. They may have activities planned for the weekend, or just chose to vegetate. The second group are travelers who are passing through Eugene and prefer to stay in B&Bs instead of a hotel/motel. The last group is any customer affiliated with the local school, the University of Oregon. This group may be parents of students or visiting the University on official business and the University is the entity that sets up the reservation. While The Enchanted Vineyard Bed & Breakfast will certainly get customers that fall outside of these groups, this classification should be fairly accurate.
4.1 Market Segmentation
Our customers can be broadly divided into three groups (please note it is possible to divide the customers in to much smaller groups, but we have chosen not to):
- Weekend getaway customers. These people are from the region and are looking to get away from their life so they come to The Enchanted Vineyard Bed & Breakfast to be pampered and escape.
- Travelers. These people, for whatever reason, are passing through Eugene and prefer to stay in a B&B instead of a hotel/motel.
- University of Oregon travelers. The University brings a large number of people through Eugene, and The Enchanted Vineyard Bed & Breakfast believes that a good portion of their business will be from the University. Occassions include parent weekend, orientation, parents visiting, and graduation. Lastly, the University will often set up rooms for administrative visitors.
4.2 Target Market Segment Strategy
The Enchanted Vineyard Bed & Breakfast intends to target these three customer groups as they make up the largest population of people who utilize B&Bs. The Enchanted Vineyard Bed & Breakfast has a three pronged strategy that will work for all three groups:
- Association membership and advertising. A large number of visitors will look to regional B&B associations for information about the different B&Bs in the area. Most associations publish a guide to the local B&Bs and The Enchanted Vineyard Bed & Breakfast wants to be in this guide. One of the other perks of membership is visibility on the associations website with a link to ours. Additionally, we will be a member of the Chamber of Commerce because people will typically inquire with the local Chamber when planning a vacation.
- Website. The Enchanted Vineyard Bed & Breakfast will have a full-service website that allows the visitor to view the B&B, read details about what it has to offer, provide information on regional activities, and even allow the visitor to book a reservation. With the growing use of the Internet, the Web has become an indispensable tool for planning vacations to areas that are not close enough to check out in person.
- Strategic relationship with the University of Oregon. The Enchanted Vineyard Bed & Breakfast will develop a partnership with the University so when the school is in need of finding rooms for guests they will use The Enchanted Vineyard Bed & Breakfast. We will also be advertising with the University so when students are searching for places for their parents to stay, they will come across The Enchanted Vineyard Bed & Breakfast in a school related publication and feel more comfortable with booking a reservation sight unseen because of the trust bond they have formed with the University.
4.3 Competition and Buying Patterns
Competition comes in several forms:
- Other B&Bs. Typically B&Bs have a set of unique features, something that makes them stand out.
- Some B&Bs will create uniqueness down to the level of different rooms within the B&B. The size of a B&Bs range from one or two room (traditionally called a home stay) to a country inn with 30 rooms.
- On average most B&Bs have only a couple of rooms and are often booked up in advance. Particularly during special events, demand outstrips supply for the B&Bs.
- The B&Bs differentiate themselves by personal service offerings and the general ambiance of the Inn. Finally, B&Bs usually have a very nice sit down breakfast for their guests. This is not a simple continental breakfast of juice, coffee, and a bagel, but an elaborate spread of gourmet food such as quiche, a portabello mushroom, fresh roasted garlic and sun-dried tomato omelette, or some sort of fresh smoked fish.
- Guests of B&Bs are looking not just for a room to sleep in but the whole experience in staying in a lovely setting, with interesting people to chat with and people present to pamper them in any way possible.
- Hotels/motels. These facilities are generally much more sterile in character relative to B&Bs.
- The rooms are typically the same throughout the facility (unlike B&Bs where each room is typically different). The guests of hotels generally use the hotel as a place to stay at night.
- The operator will usually see the guest when they check in and when they check out. This differs from a B&B where the guests are encouraged to spend time in communal rooms and socialize with the operators and the other guests.
- Breakfasts, if included, are sparse. The typical guests are looking for a room to stay in at night and not much more than that.
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