Marketing assignment
1. Business Overview
MIKE and Jane Smith have made the move from the city to the country and at age fifty have
purchased MIKE'S BBQ & CATERING in the SPILLER'S LANE
CLONAKILTY, CO. CORK.
MIKE is an excellent gardener and the rose garden at the property will provide her many
hours of enjoyment. Jane loves the outdoor life and is a great bush walker and amateur
naturalist - with the National Park. He sees the opportunity to further his hobby. The property
is in good condition, having living space for the owners plus four large bedrooms each with
their own facilities. Neither of them has run a Bed and Breakfast (B&B) before but they are
outgoing types and are prepared to learn from those who have gone before. This Marketing
Assignment has been designed to provide a business which produces a substantial income as
well as allowing them to develop and enjoy a satisfying lifestyle.
2. About B&B
The Bed and Breakfast industry is a vital part of the tourism industry providing
accommodation to both domestic and international visitors. It is centred on providing short
stay visits to the travelling public who use these facilities for visiting a destination (usually
with a significant landmark or eating out), thus taking a break from their regular lifestyle. The
key to a successful B&B is the location and the ability to attract visitors to a region providing
the purpose for a visit. Accommodation differs from hotels, motels and caravan parks as it is
highly personal, usually with intimate surroundings and individual attention from the
proprietor. The provision of comfortable, secure and private accommodation along with a
quality breakfast is the key differentiator of the B&B industry and sets it aside from other
forms of accommodation.
The Irelands B&B industry has been in decline for several years, particularly domestic
tourism, as it has to compete with not only other forms of accommodation but also with the
changes to destination of the travelling public. Successful B&B operators have learnt they
require a location with a natural attraction to visitors, and then provide a service that
complements the reason for people visiting the area.
Marketing Mix – 4 Ps
Product
4-star guest accommodation. The facility has four deluxe double rooms; each is furnished in a
classical contemporary style that utilises Australian timers and soft comfortable tones. Each
room has its own private bathroom and toilet facility which has been recently refurbished.
There is a light and airy feel to each room as double doors take the guest onto a large balcony
overlooking a private section of the rose garden. In addition guests have access to a large
well-appointed lounge with an open fire for winter warmth and atmosphere, along with an
extensive selection of books about the local area and rose gardening. A selection of wines
from the local wineries is available for purchase and consumption by guests in the
surrounding garden.
Garden setting and facility that can be either viewed or hired out for special functions. The
garden facility has all weather paths, several undercover sitting areas and a central lawn
section where a small marquee can be erected. While no large kitchen facility is available
there is an electric BBQ facility with hot water and sink for day visitors who wish to bring a
picnic. Toilet facilities are available for these guests.
Place
All services will be provided at the B&B gest house and a Rose Garden around the property
will provide an excellent enjoyment for all the gests.
The property is in good condition, having living space for the owners plus four large
bedrooms each with their own facilities. Neither of them has run a Bed and Breakfast (B&B)
before but they are outgoing types and are prepared to learn from those who have gone
before. This Marketing Assignment has been designed to provide a business which produces
a substantial income as well as allowing them to develop and enjoy a satisfying lifestyle.
Price
The price list (including VAT) for 2011-12 has been set at:
Weekend - euro 69.00 per room
Weekday - euro 45.00 per room
Special Events - euro 95.00 per room
Promotion
Online Marketing
The internet is seen as a critical tool to reach customers. During the opening phase of the
program special deals will be on offer. These will be repeated if consumers accept these
offers.
Website:
A fully functioning site had been developed that enable perspective clients to see what
accommodation is available as well as allow them to book online.
Advertisement:
Advertisements are placed in the local press highlighting the ownership and offering special
deals for local customers wishing to visit the facility.
Promotions:
A high quality multi-folded brochure is to be promoted and distributed to all tourist
information centres within 50 km of the B&B
Branding:
All documents and information placed into the public hands are to have a consistent look and
feel that highlights the superior accommodation and beautiful setting of the B&B.
Direct Marketing
The use of a bulk mail-out either via post, fax or email is not seen as productive as it does not
provide the personal touch.
3. Market Analysis - SWOT
The following SWOT analysis captures the key strength and weaknesses within the
company and describes the opportunities and threats facing MIKE'S BBQ &
CATERING
(a) Strengths
Great location.
Fantastic facilities.
Owners who are passionate about their work.
Strength of the Irelands currency making overseas travel cheap and non-complicated
for Europeans, there is no exchange rate for currency compared to domestic.
(b) Weaknesses
Brand visibility.
Limited number of rooms means limited amount of sales.
The struggle with taking care of everything with low labour overhead.
Strong competition from well-organized motel chains offering consistent cost
effective accommodation.
(c) Opportunities
Growing market with a significant percentage still not aware of MIKE'S BBQ &
CATERING.
The increasing use of the internet to book accommodation when B&B bookings can
not usually be made directly online
Increase in sales from Irelands country side events around Cork area events.
The ability to become more efficient as the learning curve steepens over time.
(d) Threats
Competition from existing and new B&B entrants.
The introduction of a B&B-style hotel that understands the basic market need.
A slump in the economy, decreasing people's discretionary income.
Competition
Competition in the area for accommodation is high with nine hotels with both motel
and hotel style facilities. There are also eight other B&B’s within a 50 km radius of
MIKE'S BBQ & CATERING. Given the target market for MIKE'S BBQ &
CATERING is likely to use B&B style accommodation these are the key competitors
and the other facilities, while providing rooms, are generally catering to a different
market.
The eight B&B facilities have a total of 24 rooms available between them. None of
the other operations has a garden attraction like MIKE’S BBQ & CATERING or are
as conveniently located to the major restaurants at Point Vale, which are all within
walking distance. This is a major advantage MIKE'S BBQ & CATERING plan to use
in promotion arrangements.
PEST analysis
Political
factors affecting Mikes BBQ & Catering include areas such as tax policy,
employment laws, environmental regulations, and regulations relating to the
importing of supplies. Also company law and laws relating to building and planning.
Economic
factors are changing interest rates and the effect that would have on borrowings.
Exchange rates affect the company to a lesser extent as most supplies are from the EU
however the weakening of the Euro against Sterling has negative impact relating to
supplies, but is positive in that it is cheaper for people from the UK to stay in Ireland.
Rising inflation rates mean prices must be increased which could impact negatively
on business. Also a slowdown in economic growth could mean a lot less people will
be able to afford to stay in a hotel.
Social
Factors affecting Madison are people’s attitudes towards health. More and more
people are looking for the healthier option including spas and gymnasiums of high
standard as well healthier and more varied food in our restaurant. With an ageing
population the hotel must be friendly to all ages young and old. As there is much
choice out there we must be the best with regards to socio-cultural changes. Also
press attitudes to Madison are vital as the media is so influential nowadays.
Technological
Factors are very important. The use of video conferencing reduces the need for hotel
conferences. Communications within the hotel are now much cheaper. Also the
internet and EDI has made contact with suppliers much more efficient.
Legal
An overview of the legal requirements for B&B industry is as follows:
Planning Permission
Disability Discrimination Act and Accessibility
Fire Regulations
Health and Safety
Food Hygiene
The Pink Booklet
Regulatory
The new Fire Regulation (the RRFSO, or "Regulatory Reform Fire Safety Order") came into force on
1 October 2006.
This new regime effectively brings ALL B&Bs into the ambit of the new fire regulations, with the
onus on every owner to assess his/her own risk and responsibility, by carrying out a Fire Risk
Assessment (FRA).
Market Segmentation
MIKE'S BBQ & CATERING plans to target two distinct groups:
(1) Couples and/or singles in the 30 to 60 age group, primarily from Ireland other Counties,
who have an interest in outdoor life (walking, gardening, beach activities) and are looking for
the comforts of excellent accommodation and fine dining. It is expected they will be from the
mid to higher socio-economic scale and have ready access to disposable income. Their
decision to visit the region are based on the need to get away from the pressures of city living
and indulge themselves.
(2) Couples in the 55 to 70 age group who are travelling around Ireland and have a
convenient stopping place in their travels. The Cork seaside is a feature and the chance to
pause and enjoy a beautiful beach during their travels is a great attraction, along with the
other sights on offer in the area.
There are no plans to target the international tourist as they are only small users of B&B style
accommodation and the location is off the main travel route. For families with children,
sleeping arrangements are not suitable.
Product Life cycle
MIKE'S BBQ & CATERING at the moment are still on Growth stage as the owner of
the business told me, but because it’s B&B sector, there is a seasonal aspect in a
business as well, he get more tourists during the summer time then winter season and
therefore he needs to develop a marketing strategy for the cold season.
Prising
Pricing strategy was pure positioning. MIKE position the house against the resort and
sell rooms slightly higher than the resort making. They are lodging the most expensive
in the area. Sole reasoning for this pricing strategy was that “executive” type buyers pay
first class prices. He knows from research that my target client from the three
cities/areas he was targeting with marketing and advertising, paid for rooms that cost 39
– 59 euro per night. He’s target client rarely paid under 49 per night. He’s pricing
strategy worked and they successfully acquired the type of client they wanted and they
sold out every weekend and they acquired the die-hard fly-fishermen during the mid-
week. Sometimes they discounted the rooms during the mid-week to reach the non-
executive types but this wasn’t their #1 focus.
Future Development
All MIKE'S BBQ & CATERING operation fees ( ie. hosting, domain name, design costs,
etc.) are paid for by the small adverts running across the site,. Any remaining revenue
generated each month is poured directly back into MIKE'S BBQ & CATERING for future
development.
He intend to develop an improvements for his business website in order to increase the sales
true internet and revisit his own business plan quarterly in order to analyse the situation and
improve the B&B services.