Bighorn River American Indian Campgrounds Ada Iron Kim Iron Amy Benson Vanessa Kukes Casey Steffans Mary Alice Walker Vision Statement The Bighorn River American Indian Campgrounds vision is to ensure an authentic Apsaalooke experience in a heartwarming customer oriented environment. We will increase the diversity among Americans by sharing our culture and our knowledge of Crow Country. We will share our history through guided tours in our back country during our guest’s activities. Mission Statement The Bighorn River American Indian Campgrounds will offer our guests of all ages the opportunity to expose themselves to an authentic Native American experience. We promote family-friendly, safe camping environment where guests can enjoy outdoor recreation on the land of our ancestors. The purpose of our resort is to please and respect our customers while enjoying the pleasure of sharing our culture. We value our guests, as they will come to value us as Native Americans. Big Horn River American Indian Campground • Indian owned business on the Crow Reservation • RV owners and camping enthusiasts fast growing market especially in Montana • Located on Bighorn River – 1 of the best fishing destinations in the United States Location • Fort Smith, Montana • Pre-owned 40 acres of land Physical Facilities Tribal and Local Benefits • Employment Opportunities • Internship Opportunities • Increase Diversity • Benefit Local Ranchers • Promote other Native American Businesses • Create Foundation Development Strategy Oct’07 Dec ’07 Ground Mass Breaking & advertising Feb ’08 Create Ads begins Train Staff Summer’07 Nov ’07 Jan ’08 Mar ’08 Design Media Construction Grand Building Secured complete Opening Hire Staff Marketing Plan Competitive Strengths Location • Fort Smith • Located on the Crow Reservation (Teepee Capital of the World) Market Strengths • Fishing: most popular physical activity • 79% of campers consider themselves family oriented • 47% of campers preferred an activity oriented camp ground • Growth in weekend travelers Product Strengths • A RV capacity of 40 • A Teepee capacity of 10 • A lodge • A section for cultural activities and events • Room to expand • Land off 40 acres Weaknesses • New Business • Unbranded Name • Distance off of I-90 Opportunities On the way…. • 63% utilize on the way • 17% are used for the destination Threats Competitive Analysis Competitor Product Price Promotion Place 7th Ranch Some Camping Rack Cards Telephone Authentic Low Billboards Reservations Horses Horses High Website Bighorn Camping Low Rack Cards Telephone Mountain Billboards Reservations Website Hardin Camping Low Rack Cards Telephone Billboards Reservations Website Grandview Camping Low Rack Cards Telephone Billboards Reservations Website Opportunities/Threats = Objectives 100 Million Nights spent in private campgrounds 10 (10% of Nights spent in Montana) = 10 Million Nights spent in Montana 10 Million Nights spent in Montana 4 Equal parts of the State = 2.5 Million Nights 2.5 Million Nights 50 Campgrounds in Southeastern Montana = 50 Thousand Nights/year 50 Thousand Nights/Year 213 Nights per summer season = 234 Nights spent at Bighorn River area 234 Nights spent along the Bighorn River 4 Campgrounds in the Bighorn River area = 58 RV Customers per Night Target Audience • Authentic American Indian culture • Baby Boomers • Families with children Target Audience Demographics: • Families with average age of 37 – children under 18 – income > than $50,000 /year Activities: • People who enjoy backcountry fishing, camping, guided fishing trips, hunting, and the general outdoors ,cultural events Geographic: • Billings and surrounding area • Tourists traveling in and around southern MT and Northern WY from all over the world Marketing Mix Product: Means End Chain Attributes Physical Psychological Values Consequences Consequences Teepees, river Authenticity, Cultured, A once in a access, activities, tours semi- Experience Lifetime Bighorn River convenience, unmatched by experience and being nationally backcountry, and Other self- satisfaction recognized as one health. campgrounds, of experiencing of the premiere and a relaxing the real thing. trout streams in atmosphere the United States for anglers Product: Perceptional Map High Cost 7th Ranch RV Camp Black Hills Campground Bighorn River American Typical Indian Campground Authentic Campground American Indian Hardin KOA Bighorn Mountain Experience Campground Sheridan KOA Grand View Campground Low Cost Marketing Mix Price • One-price Policy • Discount pricing • Coupon distribution Marketing Mix Place Strategy: Direct Distribution Channel Sales: Telephone, internet, and walk-in traffic Marketing Mix Promotion • Inform audience • Persuading our target audience • Remind the customers • Publicity Organization & Management Ada Iron General Manager Kim Iron Assistant Manager Full – Time Full – Time Employee Employee (6)Employees (6)Employees Financial Plan FINANCIAL PLAN • Base Case & Alternative Case • Construction of Lodge • Installation of RV Hookups • Set up of Teepees FINANCIAL ASSUMPTIONS • Sales estimates were derived from AIBL team • Sales Assumptions – Capacity for 10 Teepees, 40 RV spaces – Total Capacity Includes • 2 people per Teepee = 20 People • 2 people per RV = 80 People • = 100 People per night – Base Case • 60% of Capacity in yr 1, increase of 5% thereafter • Higher average – Sale price for packages – Teepee Rental – Initial Costs Financial Assumptions – Alternative Case • 60% of Capacity in yr 1, increase of 10% thereafter • Lower average – Sale price for packages – Teepee Rental – Initial Costs – Base case & Alternative Case • All other estimates remain equal • Fiscal year Oct 1 to Sept 30 • Start operation March 1 and run through Sept 30 Pro Forma Statements • Owner’s Draw • LLC, choose to be taxed as Sole Proprietor • To pay taxes and for living expenses for Owners – Base Case • $350,000 yr 1 • 12% increase yr 2, 10% thereafter Pro Forma Statements – Alternative Case • $150,000 yr 1 • 50% increase yr 2, 14% thereafter PRO FORMA STATEMENTS • Base Case • Initial Costs total $1,430,095 • Alternative Case • Initial Costs total $1,427,260 PRO FORMA STATEMENTS • Mixture of debt and equity • SBA Loan – 60% • Interest rate @ 10.75% • Amortized over 25 year period • AIBL Members – 13% • Investors – 27% Financial Analysis Scenario Base Case Alternative Case Undiscounted 2yrs, 9.80 months 5yrs, 6.09mths Payback Discounted 4yrs, 2.85 months > 10 years Payback NPV (WACC) $1,924,654 $108,376 NPV (RRR) $785,242 ($459,807) IRR 40% 16% MIRR 20% 11% Pro Forma Statements Profit Margin Base Case Pro Forma Statements Base Case Breakeven Analysis - Base Case Year 1 Year 2 Year 3 Year 4 Year 5 Sales $2,131,065 $2,308,654 $2,486,243 $2,663,831 $2,841,420 TVC $1,063,210 $1,075,316 $1,108,779 $1,143,137 $1,178,423 Needed to Breakeven/ $6,009 $5,948 $6,315 $6,632 $6,908 Day Our Sales/ $10,005 $10,839 $11,673 $12,506 $13,340 Day Difference $3,996 $4,891 $5,358 $5,874 $6,432 Exit Strategy • Exit Strategy – Sell to existing competitor – Sell to local Farmer – Turn into Farmland for our Ranch Questions?
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