Our biggest savings of the year
Strategy and Implementation Summary
The primary sales and marketing strategy for Magnolia includes these factors:
- To offer a bed and breakfast facility that will appeal to the busy professional.
- To provide unmatched customer service to our guests.
- To concentrate our marketing in the greater San Francisco Bay area.
5.1 Competitive Edge
The Magnolia Inn sets itself apart from similar competition in the following ways.
- Location: The sheer beauty of our setting is a huge plus. Nestled on a bluff with a panoramic view of the Pacific Ocean the Magnolia is the ideal place to take in mother nature. Beautiful magnolia trees and a garden area makes this setting a truly magnificent place.
- Our rooms: Each room is individually decorated with antiques that are tasteful but comfortable. You feel as if you have stepped back in time, as luxury is present at every turn.
- Customer service: Customer service is our number one priority. The Magnolia will treat each guest as if they are family.
5.2 Marketing Strategy
Our marketing strategy is based on becoming a destination for vacationers and honeymooners who are looking for truly beautiful and unique lodgings. With the greater San Francisco Bay area our main target market the Magnolia will use several different approaches to advertise our facility. We will use the Yellow Pages to advertise, as well as develop a Web page that will show our beautiful Inn. On highway 101 we will have an eye catching sign that will alert potential drop-ins of our existence. The Magnolia is confident that it will not take long with word-of-mouth from past customers, to build up to full capacity.
5.3 Sales Strategy
Our prime location with a beautiful ocean view and a quality facility will be an attractive choice for our potential customers. Each room is decorated individually with antiques and quality furnishings made to feel just like home. A hot tub on the deck overlooking the ocean is provided for our guests. A first class breakfast is served each morning with no expense spared. Guests will have several options on our menu so that we can accommodate most tastes. There are several fun and interesting destination spots within 30 minutes of the Inn and we will have a van ready to shuttle guests if they need the service. The Magnolia guest will feel pampered and will leave for home well rested.
5.3.1 Sales Forecast
The sales forecast table is broken down into two main revenue streams: Reservations and Drop-ins. The sales forecast for the upcoming year is based on a 10% growth rate for direct sales. The Magnolia has seven rooms to offer its guests at a rate of $175.00 per night. We expect the rate of rooms occupied to increase as the year progresses. In spite of the economic unpredictability we are experiencing, these projections appear attainable and take the increasing base into consideration. Growth rates for the years 2005 and 2006 are based on percentage increases as follows:
- Reservations: 10% growth rate per year.
- Drop-ins: 10% growth rate per year.
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||Year 1||Year 2||Year 3|
|Subtotal Direct Cost of Sales||$17,092||$21,000||$24,000|
The milestones table below outlines key activities that will be critical to our success. Owners Jim and Nancy Anderson will take care of these important activities.
|Milestone||Start Date||End Date||Budget||Manager||Department|