Bed and Breakfast - Caribbean - Business Plan

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Market Analysis Summary

The Vette Kat Harbour Bed & Breakfast has 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 on the sea, local towns or just chose to relax in a comfortable setting.

The second group are travelers who are sailing through the area and prefer to stay in B & Bs instead of a hotel/motel, or onboard their boat.  This group also can also include vacationers who want a quiet convivial tropical destination away from the overstimulating mega-resorts.

Others will just want to have the experience of a themed weekend presented by Chef Kayman. 

While Vette Kat Harbour 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):

  1. Weekend getaway customers.  These people are from the region and are looking to get away from their life so they come to the Vette Kat Harbour Bed & Breakfast to be pampered and escape.
  2. Travelers/vacationers.  These people, for whatever reason, are sailing among, or destination vacationing in the islands and prefer to stay in a B & B instead of a hotel/motel.
  3. Experience Executive Chef Service.  These people will be wanting to visit to experience the service provided by Chef Kayman.  They also will be interested in the historical information, collections, and other culinary items relating to the Caribbean Age of Sail in the Buccaneer Culinary Centre.
Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Travelers/Vacationers 9% 964,982 1,051,830 1,146,495 1,249,680 1,362,151 9.00%
Weekend-Getaway Customers 9% 241,245 262,957 286,623 312,419 340,537 9.00%
Come to see museum and tour 8% 1,200 1,296 1,400 1,512 1,633 8.01%
Want Executive Chef Experience 5% 24,124 25,330 26,597 27,927 29,323 5.00%
Total 8.92% 1,231,551 1,341,413 1,461,115 1,591,538 1,733,644 8.92%

4.2 Target Market Segment Strategy

The Vette Kat Harbour Bed & Breakfast intends to target these three customer groups as they make up the largest population of people who utilize B & B's.  The Vette Kat Harbour Bed & Breakfast has a three pronged strategy that will work for all these groups:

  1. Association membership and advertising.  A large number of visitors will look to regional B & B associations for information about the different B & B's in the area.  Most associations publish a guide to the local B & B's and the Vette Kat Harbour 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 many Chambers of Commerce because people will typically inquire with the local Chambers when planning a vacation.
  2. Website.  The Vette Kat Harbour 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.
  3. Other Advertising.  In many rest areas and on billboards, as well as lifestyle magazines such as food, travel.
  4. Events.  Host Caribbean history and Buccaneer/Pirate/Age of Sail themed events on the grounds.

4.2.1 Marketing Strategy

The retail marketing strategy of the Vette Kat Harbour Bed & Breakfast centers on creating a corporate identity that clearly defines our market niche in terms that benefit our customer.  Other specific strategies that will be used follow:

  1. Print Ads - Keeping the the Vette Kat Harbour Bed & Breakfast name in front of the customer while getting established will be necessary.  We plan on running limited space ads in the local newspapers to keep our name and phone number in front of the consumer.  We may attempt to showcase a single product in an effort to return revenue from the ad.  Our past experience has been that showing measurable revenue from these types of ads is difficult.  In the future we plan on utilizing vacation magazines and affluent Caribbean basin magazines as a method of increasing our sales revenue.
  2. Press Releases - The local papers and magazines have offered to run releases and/or stories concerning the opening of the Vette Kat Harbour Bed & Breakfast.  We will also use the above media to run new art releases showcased in the B & B monthly.
  3. Unique Artist and Historic Gallery in House: The Vette Kat Harbour Bed & Breakfast will be the home to a local and unique artist who has all of their works displayed throughout the inn.  All of these items will be for sale.  The home is therefore populated with free and beautiful works.  Also, each month on the second Wednesday, we will host a wine (non-alcoholic), cider and cheese night with historic unveiling of "this month's work of art."
  4. Designer Postcard - We will be holding a local contest for students to design a postcard for our guests to eventually buy.  Our pricing for postcards is $110.00 per 1000 and includes aqueous glossy film coating.  The winner of the annual contest will receive a cash scholarship and internship with us. 
  5. Apparel - We know several people in the area who produce embroidered apparel such as will be on our robes.  A line of premium Vette Kat Harbour Bed & Breakfast apparel could be designed and produced in very small runs to reduce inventory costs.  These can be sold or given away with qualifying purchases to further expose the Vette Kat Harbour Bed & Breakfast name.
  6. Gourmet Dinners and Guest Speakers - Our gourmet dinners will be a blockbuster event.  One of our guest chefs and guest speakers will be Walter Scheib III, the FOOD TV Iron Chef winner.  Other guest chefs will be Roland Meisner, Pastry Chef for 25 years to the White House, and Patrick O'Connell of the Inn at Little Washington.
  7. Grand Opening - A Grand Opening is the most successful of any promotions.  With manufacturer support, a large number of door prizes can be given away while instantly building a mailing list.  Loss leader pricing on a few high volume consumable products will attract stories and traffic.
  8. Trade Shows, Chamber of Commerce meetings and Fairs - We will exhibit at approximately four regional trade shows annually.
  9. Word of Mouth - By giving first-time customers great service and a fair price, the word is sure to spread.  Also, the many industry and business contacts that we already have in the area will prove to be most beneficial in spreading the word.
  10. Monthly Events - We will be hosting monthly specialty and themed events, initially emphasizing Caribbean history and the Buccaneer Age of Sail. We also will be hosting monthly events such as Valentines Day Lovers Getaways with Champagne, Chocolate samplers, Fresh Fruit and Cheese and masseuse services.  We will have a different events each month with different specials/dinners.

All marketing decisions with regard to specific media choices, frequency, size, and expenditures will be conducted on an on-going basis with careful considerations of returns generated.

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.  We will be doing that.  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 (Ours will be extensive and homemade with jams, preserves and jellies as well as Applewood Thick Cut Bacon and healthy options).  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.  Even at the Hampton or Holiday Inn Express.  The typical guests are looking for a room to stay in at night and not much more than that.