History of Indian Advertising Management by vtd78719

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									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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