Resort - PDF by zhangyun

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									  R e so r t

Marketing Plan
1 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                                            1
2. . . . . . . . . . . . . . .
. .Situation. Analysis .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . . . . . . . . . . . . . . .                                   1
                  ...... .......
0 . . . . . . . . Market .Summary .. .. .. .. .. .. .. .. .. .. .. .. .. ...... .... .... .. .... .... ...... .................... .. .... ...... .... . . . . . . . . . . . . . . . . . . . . . . . .
    2.1                                                                                                                                                                                                                                                              1
                                   ...... ...........
                  . . . . . . . . Market .Demographics .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . . . . . . . . . .
                  2.1.1                                                                                                                                                                                                                                              2
                  2.1.2            Market . . . .
                                   . . . . . . .Needs. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..            2
                  2.1.3            Market . . . . .
                                   . . . . . . .Trends .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .             3
                  2.1.4            Market . . . . .
                                   . . . . . . .Growth. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                              3
    2.2                            .....
                  SWOT Analysis. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..                 3
                                   .......
                  . . . . . . . . Strengths. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                  2.2.1                                                                                                                                                                                                                                              4
                  2.2.2            . . . . . . . . . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..
                                   Weaknesses                                                                                                                                                                                                                        4
                  2.2.3            . . . . . . . . . . . ...................................................................................................................................
                                   Opportunities                                                                                                                                                                                                                     4
                  2.2.4            . . . . . . .............................................................................................................................................
                                   Threats                                                                                                                                                                                                                           5
    2.3                            ..
                  Competition. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . . .            5
    2.4           . . . . . . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . . . . .
                  Services                                                                                                                                                                                                                                           6
    2.5           Keys . . . . . . .
                  . . . . . to. Success............................................................................................................ . . . . . . . . . . . . . . . . .                                                                                6
    2.6           Critical . . . .
                  . . . . . . .Issues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                             6
    2.7           Historical . . . . .
                  . . . . . . . . .Results. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . . . . .                      7
    2.8           . . . . . . . . . . . . . . . . .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                  Macroenvironment                                                                                                                                                                                                                                   7
                  . .......
3. Marketing. Strategy .................................................................................................................................... . . . . . . . . .                                                                                        8
                  ......
0 . . . . . . . . Mission. .. .. .. . .. .. .. .. .. .. . . . .. . . .. . .. .. .. . .. .. . .. . .. .. .. .. . .. . .. .. . . . .. . .. . . .. .. .. . .. . .. .. .. .. . . . . . . . . . . . . . . . . . . . . . . .
    3.1                                                                                                                                                                                                                                                              8
    3.2           Marketing . . . . . . . .
                  . . . . . . . . . Objectives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                                8
    3.3           Financial . . . . . . . . .
                  . . . . . . . . Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                                   8
    3.4           Target . . . . . . . .
                  . . . . . . Marketing.............................................................................................................................. . . . . . . .                                                                                  8
    3.5           . . . . . . . . . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . .
                  Positioning                                                                                                                                                                                                                                        9
    3.6           Marketing . . .
                  . . . . . . . . . Mix. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . . . . . . .                     9
                                   . . . . . . . . . . . . . . . Marketing
                  . . . . . . . . Services .and.Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                  3.6.1                                                                                                                                                                                                                                              9
                  3.6.2            . . . . . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .
                                   Pricing                                                                                                                                                                                                                           9
                  3.6.3            .............................................................................
                                   Promotion                                                                                                                                                                                                                         10
                                   ..... ........
4. Financials, Budgets, and. Forecasts .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..                                     10
                  .... ......
0 . . . . . . . . Sales. Forecast. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
    4.1                                                                                                                                                                                                                                                              10
    4.2           Expense . . . . . .
                  . . . . . . . .Forecast.................................................................................................................... . . . . . . . . . . . .                                                                                11
    4.3           Linking . . . . . . . . . . . . . . . . . Strategy
                  . . . . . . . Sales.and Expenses to . . . . . . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . . . . . . . . . .                                                12
    4.4           Contribution . . . . . .
                  . . . . . . . . . . . Margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                                 12
5. Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                                  13
                  ......................
0 . . . . . . . . Implementation Milestones .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
    5.1                                                                                                                                                                                                                                                              13
    5.2           Marketing . . . . . . . . . .
                  . . . . . . . . . Organization. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . . .                    13
    5.3           Contingency . . . . . . .
                  . . . . . . . . . . . Planning .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . . . . .                    13
                  ..............................................................................
1.0 Executive Summary

The Cape Cabo Resort and Timeshare, Baja California Sur, Mexico, is representative of other five star quality
resorts and timeshares of the World. All Cape Cabo Resort and Timeshares are boutique properties, offering 200
exclusive rooms.

The Cape Cabo Resort and Timeshares properties will be renowned for their convenient and strategic locations
within the World. Also synonymous with the Cape Cabo Resort and Timeshare are the high level of personal
service guests receive, and the extensive range of comprehensive business facilities available in luxurious
settings.

The Cape Cabo Resort and Timeshare, Baja California Sur, Mexico has 200 exclusive rooms at the Cape Cabo
Resort. Target business segments include double income market gay men and fishing enthusiasts from the United
States and throughout the World.

Differentiating the type of vacation and business service offered, from that of the competition, will assist not only
in building the Cape Cabo Resort and Timeshares as a whole, but will attract frequent travelers, who require a
higher level of personal service and recognition than they can receive at competitive five star properties in
Mexico. This will provide the Cape Cabo Resort and Timeshares with an opportunity to leverage its core
competencies as regards servicing the traveler in a luxurious environment.



2.0 Situation Analysis

The Cape Cabo resorts and timeshares will participate in the world's largest International resort and timeshares
exchange company in the world. The timeshare exchange properties range from three to five star plus categories.

The Cape Cabo Resort and Timeshare, Baja California Sur, Mexico must focus on delivering an exemplary
service, at affordable rates, in order to develop the customer relationship beyond one stay and the purchase of a 5
star timeshare.

Competitive room rates will cut dramatically in order to attract contract niche clients over the next 10-12 month
period. The Cape Cabo Resort and Timeshare's survival in the current environment will be dependent on repeat
business and customer loyalty to the niche market. Cape Cabo Resorts must therefore continue to deliver on its
promise and values.



2.1 Market Summary

The Cape Cabo Resort and Timeshare is a boutique 5+ resort and timeshares comprising 200 luxury guest rooms
at Cape Cabo Resort specializing in servicing niche clients. It is an all inclusive resort. A Cruise Ship on the
Beach in sunny Mexico where the Whales come to replenish.

Our key clients are from the niche double income clients originating from both international and United States
markets. The strategic location of the property is key to its success in these areas due to the proximity to Western
United States and specifically California.

Key to our business success is the level of customer loyalty and repeat business we receive on an annual basis.
We offer our guests the most up-to-date technical facilities, both inside the rooms and within the resort and
timeshare’s facilities.

Our guests feel that they can relax or conduct their business from within a less austere atmosphere than can be
experienced in our competitive properties, where there is less personal recognition. They appreciate being called
by name when they arrive, and having staff remember their specific requirements, time and again. This is key in
developing the relationship beyond an initial stay and evidences our added value in relation to competitive
properties in the vicinity.
                                               Target Markets




                                                                                               Gay Community
                                                                                               Fishermen
                                                                                               General Population




      Table: Market Analysis

Market Analysis
Potential                  Growth           2006          2007          2008          2009          2010         CAGR
Gay Community                 14%       4,000,00      4,560,00      6,384,00      7,277,76      8,296,64        20.01%
Fishermen                      5%       1,000,00      1,050,00      1,102,50      1,157,62      1,215,50         5.00%
General Population             5%       25,000,0      26,250,0      27,562,5      28,940,6      30,387,6         5.00%
Total                       7.39%       30,000,0      31,860,0      35,049,0      37,376,0      39,899,8         7.39%


      2.1.1 Market Demographics

      Market Geographics: Notown, USA is a suburb of Seattle, Washington, with a population of 150,000.

      Market Demographics: The community is made up predominantly of households having two to four children,
      either at home or away from home, with at least one parent/guardian having attended college.

      Market Psychographics: There is a strong 'small business' ethic in the community, and many family-run
      enterprises have been prospering for generations. There is also a strong sense of community and a high level of
      awareness as regards to caring for the environment.

      Market Behaviors: Businesses in the area choose to support one another wherever possible, be remaining loyal to
      long standing relationships with customers and suppliers. This acts as a means of investing in, and supporting the
      community structure, rather than shifting alliances to large 'newcomer' suppliers, despite the potential cost
      savings involved.

      This attitude supports the brand principles of the Cape Cabo Resort and Timeshare, which has had a presence in
      the city for 15 years, and is well supported by local business requirements for rooms, conference facilities and
      catering business functions.

      Based on research carried out in 2001, more than 68% of the population had some awareness of the Cape Cabo
      Resort and Timeshare. Awareness levels were highest amongst small- to medium-sized businesses with 20 or
      more employees, who had utilized the resort and timeshare’s facilities either for visiting business guests, or for
      their own functions.
2.1.2 Market Needs

The Cape Cabo Resort and Timeshare offer value and benefits to our clients, over and above the standard of
other facilities and affordable rates. We seek to provide our guests with an exemplary personal service, and level
of recognition that they will come to rely upon. We provide our guest with a luxurious, relaxed niche
environment within which to vacation or to conduct their business.

An environment which they cannot find at our larger, more impersonal competitors. Our guests need to know
that they can develop a relationship with the resort and timeshares that will ensure efficiency, value for their
money and reliability in supplying them with the support they need, when they need it. The Cape Cabo Resort
and Timeshare operates in a country with a very strong sense of community, and we want to stay an integral part
of that community.

2.1.3 Market Trends

Market trends: As a result of various security issues, as regards traveling in both domestic and international
markets, there has been a significant drop in guests traveling outside the USA. Although the level of room
business outside the USA appears to be increasing again, it has had a significant affect on last year's result and
consequent projections for the future. The Gay market transcends these figures in that they continue to travel
outside of the USA. Mexico in close proximity to the USA provides an ideal timeshare opportunity and vacation
resort. Located on the beaches of the Sea of Cortez only 2 hours away from Los Angeles it provides an excellent
short term, 1 week or long term vacation resort. Last year the Gay market spent more than $64 Billion in travel
and entertainment.

Cape Cabo's largest market segment in the State of California will be individuals and couples of Southern
California. These individuals will be the most likely to desire the technological amenities that our company
offers. We expect this to be the largest growing segment with a growth rate of about 7%. Their current income
spending on travel and vacations are $64 Billion per year.

Professionals are another large segment. They will be attracted to the timeshare units because of the same
technological needs, but will also be attracted to the comfortable, well maintained resort and living environment.
Cape Cabo LLC offers timeshare units that provide quality timeshare and home ownership. We expect this
segment to grow at a rapid rate.

Avid fishermen will continue to be drawn to the Baja California Sur, Mexico area where fishing excels. Local
resorts have operated at occupancy levels in excess of 90% for the past several years except for the two month
rainy season.

International individuals from outside the United States represent the third and smallest identifiable segment, but
contain the second highest growth rate. Proximity and quality will entice this segment which we expect to grow
at a rate of 5%.



                                                Market Forecast


   35,000,000

   30,000,000

   25,000,000

   20,000,000                                                                                    Gay Community
                                                                                                 Fishermen
   15,000,000
                                                                                                 General Population
   10,000,000

     5,000,000

             0
                      2006         2007         2008         2009         2010
2.1.4 Market Growth

The growth rate of the target market has been steady over the past five years. The travel trade sector has grown at
an average of 14%.

Recent world events have not caused a reduction in the growth rate for this niche market. Growth is anticipated
to continue at a steady pace inline with the activities of the past 3 years.



                                  Target Market Growth


         20.00%



         15.00%



         10.00%



          5.00%



          0.00%
                       Gay Community           Fishermen        General Population




2.2 SWOT Analysis

The following analysis highlights the internal strengths and weaknesses of our organization and the opportunities
and threats facing the company in our external environment. We must work to improve our areas of weakness.

Organizational strengths must be leveraged in order to capitalize on external opportunities as they arise, and
contingency plans formulated in order to deal with threats presented by the environment.

2.2.1 Strengths

The Cape Cabo Resort and Timeshare's strengths can be identified as follows:

•Strategy: established differentiation strategy. Focusing in on niche double income market of 5 star quality
resort and timeshare. All inclusive.
•Structure: flat, decentralized structure.
•Skills: diverse range of service skills within management and staff.
•Style: strong, participative culture.
•Staff: specialized and experienced staff that is motivated and highly skilled. A well trained team who are proud
of their resort and timeshares and respect and promote the brand values.
•Shared Values: clear and well communicated.
•Cape Cabo Strength: identified brand for niche market values well represented engendering loyalty amongst
existing and new guests.
•Reputation: a strong reputation within the niche market, local market and corporate and travel trade markets for
reliability, exemplary service and quality.
2.2.2 Weaknesses

The Cape Cabo Resort and Timeshare's weaknesses can be identified as:

•Strategy: differentiation strategy needs to be more clearly communicated externally, within local and national
markets.
•Systems: formal systems result from the detail oriented work and environment. Interdepartmental
communications could be improved.
•Staff: seasonal turnover requires ongoing training and orientation of new staff.
•Facilities: all rooms will be 5 Star quality and contain top level technical equipment, such as high speed Internet
access and laptop links upgraded decor and furnishings.



2.2.3 Opportunities

The Cape Cabo Resort and Timeshare's opportunities can be seen as:

•Market: rapid growth after a period of initial start up.
•Competitors: no direct competition exists at present, in terms of the five star 'boutique business property' niche.
•Suppliers: strong, long-term relationships established with suppliers.
•Guest Dependency: repeat business based on personal service and quality, in a small but luxurious
environment.

2.2.4 Threats

Threats to the Cape Cabo Resort and Timeshare have been identified as:

•Market Entry: potential for a competitive, global brand to enter the market with a similar product.
•Substitutes: fully furnished condo apartments offering lower daily rates in Cabo San Lucas.
•Economy: continued growth for niche market



2.3 Competition

Although no direct competition exists, in terms of the five star plus boutique style property, other five star resort
and vacation do compete for the same corporate business sectors and a different niche market.

Key competitors have been identified as:

•Dune Cabana: 5 star resort and timeshares, room rates $295 per night.
•Westin Regina: 4 star resort, room rates $140 per night
•Fiesta Americana Grand Los Cabos: 4 star resort, room rates $150 per night
•Pueblo Bonita: 4 star resort, daily rates $140 per
•Club Atlantis Vallarta: a 4 start all inclusive resort; daily rates are 69% higher than Cape Cabo Resort and
Timeshare luxury rate.

                                             Current Timeshare Pricing

The Mexican timeshare phenomenon began in Acapulco in the 1970s, but gained a bad rap due to an unregulated
industry with plenty of hustlers and no control. It took many years for the industry to evolve into the respected
component of the leisure travel market that it is today, claiming 40% of the Latin American timeshare market.
According to market researchers Ragatz Associates, as of 2003 there were close to 5,500 timeshare resorts
worldwide with sales of $9.4 billion U.S. that year alone. The global average price was $10,600 U.S per week for
a 30-year usage plan. And, 6.7 million people own timeshares in 195 countries. Gay couples are spending more
than $54 Billion is travel and entertainment in 2003..profeco.gob.mx.
       Timeshare Sales
       Club Casa Dorada                               Cabo San Lucas México                  $17,000

       Club Casa Dorada                               Cabo San Lucas México                  $16,000

       Krystal Internacional                          Puerto Vallarta México                 $15,000

       Pueblo Bonito                                   Mazatlán México                       $13,000

       Hacienda del Mar                               Cabo San Lucas México                  $24,000

       Pueblo Bonito                                  Cabo San Lucas México                  $26,000
       Los Cabos Golf Resort                          Cabo San Lucas México                  $28,000
       Mayan Aplace Nuevo Vallarta                    Nuevo Vallarta México                  $29,000
       Palace Resort at Moon Palace                   Cancun, Mexico                         $42,000

       These properties offer similar facilities, although somewhat less focused.


       Table: Growth and Share Analysis

Growth and Share
Competitor                                                    Price        Growth Rate                     Market Share
Dune Cabana                                                   $295                 6%                              17%
Westin Regina                                                 $175                 8%                              12%
Fiesta Americana Grand Los Cabos                              $175                 6%                               5%
Pueblo Bonita                                                 $160                     5%                              12%
Royal Solaris Los Cabos All In                                $199                     8%                              30%
Club Atlantis Vallarta                                        $175                     8%                              5%
Average                                                   $196.50                    6.75%                       13.50%
Total                                                    $1,179.00                  40.50%                       81.00%


       2.4 Services

       Cape Cabo resort and timeshares provides guests with an alternative to the impersonal, large 5 star properties in
       the Mexico. Strategically located on the beach in Baja California Sur, Mexico, a short distance from Cabo San
       Lucas, our property enables our guests to be a part of the upper scale community and yet in an environment of
       calm and professionalism. We seek to differentiate our product and services in the following areas:

       •Personal recognition of our travelers and timeshare owners who return time and again.
       •Luxurious rooms that offer a sense of doing business from 'home.'
       •Staff that have a strong customer-service ethic.
       •Facilities that include Business, Fishing and Vacationing second to none in Mexico.


       2.5 Keys to Success

       •Continue to develop ongoing relationships with frequent and new guests.
       •Continue to develop and implement a strong communications plan in both national and international markets.
       Concentrate on California, Western USA states, Florida and New York
       •Leverage our strength in the local market as a member of the community by supporting local events and offering
       community health services.
       •Hosting 4 Annual International Festivals (White Party)
       •Identify new markets for our services.
       •Continue ongoing staff training and skill development to ensure the highest standards of service.
       2.6 Critical Issues

       We have many strengths including our differentiation strategy, our flat structure and highly skilled and well
       trained staff. Our weaknesses involve the need to communicate our strategy more clearly in the external
       environment, our high staff turnover and training requirements due to seasonal fluctuations.
Although there is a low to medium threat of a competitive brand entering the market, there are also opportunities
as regards the high level of dependency of our guests for our particular service and our strong position within the
community with both customers and suppliers.

Critical issues for the Cape Cabo Resort and Timeshares include:

•Continuing to differentiate from our competition and offering added value to our guests.
•Retaining levels of repeat business and developing further customer loyalty in a competitive market.
•Attract new market sectors outside California in niche market.
•Continue to be perceived as a supportive member of the Baja California Sur community.
•Continue to be perceived as a supportive member of the DINK market.
•Continue to be perceived as a supportive member of Fishermen worldwide.



2.7 Historical Results

Marketing activity for the Gay niche market in previous years has produced positive results. The areas that have
produced the best results have been:

•Product: high-quality facilities accompanied by exemplary personal service, differentiated from competition
inline with the overall brand strategy have proven to be a successful approach generating high levels of repeat
business.
•Price: pricing strategy has been consistent with the differentiation objective, to provide added value for a
reasonable rate as opposed to discounting and devaluing our products and services.
•Place: product and service information are sold to the guest via personal selling, direct marketing, advertising
and the Internet. Delivery channels include travel agents and international reservations systems.
•Promotion: primary focus has been on mass communication via print ads in trade publications and on the
Internet, direct mail campaigns to existing and prospective clients and personal selling in the local market.
Personal selling provides the means to develop relationships within the local community and generate high levels
of corporate activity through the business community. Public relations plays an important role in the marketing
mix, presenting the resort and timeshares as a supportive member of the community and participating in
significant local events to assist in developing ongoing cooperation, assures repeat business and good working
relationships.



2.8 Macroenvironment

The external, environmental issues that affect the Cape Cabo Resort and Timeshare are:

•Political: a stable environment where little affects the ability of the resort and timeshares to generate revenue.
•Economic: the recent recession due to 9/11 has seen many smaller business-orientated resort and timeshares
chains go into liquidation, as they do not possess the infrastructure to support under-performing properties as the
larger chains do. Although recovery is well underway, it may take some time before travel policy restrictions are
fully lifted and business and vacation travel returns to the same levels of the past three years. However, the Gay
market or Double Income No Kids (DINK) is flourishing with spending more than $54 Billion last year in
entertainment and travel.
•Social: the trend towards cost effective travel leads resort and timeshares guests to seek more value for money,
which is where our added value differentiation strategy comes into play.
•Technological: the installation of 'on board' room reservations systems on certain aircraft, will require a
systems integration with the resort and timeshares group's own central reservation system. This will require a
high level of investment.


3.0 Marketing Strategy

Our marketing strategy's objective is to communicate the unique set of services that we offer to discerning resort
and timeshares guests. We attempt to direct the focus of our guests to the issues of quality and value for the
money as opposed to simply the bottom line costs associated with their stay.

Our marketing strategy will allow us to communicate our brand values, develop close working relationships with
our customers and suppliers and to identify the needs of our guests in an effective manner. Continued
differentiation and growth are two goals we have set for ourselves. Growth will take place by targeting new areas
of business within both local and national communities.
3.1 Mission

The Cape Cabo Resort and Timeshare is dedicated to providing its guests with the highest quality of service and
standards. We seek to deliver on our promise of value and quality above all else. We value our place in the
community and will work to develop those relationships and to respect and protect our environment.

We will continue to strive to create value for both owners of time shares and vacationing guests whilst honoring
our values and encouraging our personnel to develop themselves in an environment of trust, loyalty and
encouragement.



3.2 Marketing Objectives

•To continue to communicate our strategic objectives to our target niche markets effectively.
•To provide a positive resort and timeshares experience to all our guests.
•To accomplish our growth targets within the given time and budget.
•Expand our markets and identify new markets for our product and services.



3.3 Financial Objectives

•Increase overall room revenue by 30% on the past year.
•Accomplish growth within the given budget $50,000,000.
•Keep payroll expenses down within the workforce.



3.4 Target Marketing

Our primary targets continue to be double income (DINK) clients to Cape Cabo Resort and Timeshares from the
following states, where there are large segments and advertising segments for the nice community:

         •California;
         •Western United States;
         •New York.
         •Florida
         •Texas

We believe that our unparalleled level of quality and technological amenities put Cape Cabo LLC into a niche of
its own. This will be the focal point of all our marketing and advertising efforts. These segments are also easily
reached through local newspapers and publications, as well frequent open house displays. The target market is
currently spending more than $54 Billion this year for travel and vacations. Cape Cabo will be an ideal spot to
vacation.

It is essential for Cape Cabo LLC patrons to understand that their needs are our priority.

3.5 Positioning

The Cape Cabo Resort and Timeshare is positioned as a five star plus, double income niche traveler's resort and
timeshares, strategically located and offering a high level of personal service. Our focus is on offering our guests
added value and differentiating ourselves in our levels of personal service. We provide a quality resort and
timeshares experience where guests are valued, respected and their business is truly appreciated.



3.6 Marketing Mix

Place: product and service information are sold to the guest via personal selling, direct marketing, advertising
and the Internet. Delivery channels include travel agents and international reservations systems.
3.6.1 Services and Service Marketing

Product: high quality facilities accompanied by exemplary personal service, differentiated from competition
inline with the overall niche market strategy has proven to be a successful approach generating high levels of
repeat business and timeshare sales.



3.6.2 Pricing

Pricing strategy has been consistent with the differentiation objective, to provide added value for a reasonable
rate as opposed to discounting and devaluing our products and services.

Room rates quoted are net of tax and service, are per night, per room with all meals and entertainment included:

Cape Cabo Resort

         • $225.00 per person, double occupancy;
         •single supplement $50.00

Timeshare sales are based upon lifetime occupancy all inclusive of lodging, food and entertainment.

         • The Cape Cabo Resort and Timeshares $22,500

3.6.3 Promotion

Promotion: primary focus will remain on mass communication via print ads in trade publications and on the
Internet. Direct mail campaigns to existing and prospective clients will increase as a cost effective means of
targeted campaigning.

Personal selling in the local market will remain an important element of the mix in order to continue to build
long-term relationships within the local community and generate high levels of corporate activity.

Public relations activities will continue to play an important role in the marketing mix, presenting the resort and
timeshares as a supportive member of the community and participating in significant local events.



4.0 Financials, Budgets, and Forecasts

Our annual marketing budget is in excess of $100,000. Sales are anticipated to achieve revenue of more than
$12,000,000 during our first year. Our marketing expenses after initial start up will equate to approximately 1%
of the overall revenue.


4.1 Sales Forecast

Our sales forecast assumes minimum change in costs or prices, which is a reasonable assumption for the last few
years in Mexico. We are expecting to increase timeshare sales grow from $19 Million by the end of the first two
years to $83 Million by the end of the third year. For 2006 we plan to internally develop a timeshare sales
brochure and package for the niche market. The focus will be a 5 star quality living and vacationing.

Our Baja location is a distinct advantage for sales in California, Western USA, Chicago, New York and Florida.
We can attract high income clientele than any of our competitors
                                Monthly Sales Forecast



 $2,000,000


 $1,500,000
                                                     Corporate Single
                                                     Corporate Double
 $1,000,000
                                                     Corporate Deluxe
                                                     Vacation Fractional Ownership Sales
   $500,000
                                                     Corporate Suite

        $0




      Table: Sales Forecast

Sales Forecast
Unit Sales                               2007                2008                      2009
Corporate Single                          165               9,000                     9,000
Corporate Double                          190               9,000                     9,000
Corporate Deluxe                           40               4,000                     4,000
Vacation Fractional Ownership Sales       175               4,000                     6,225
Corporate Suite                            12                 500                       500
Total Unit Sales                          582              26,500                    28,725
Unit Prices                               2007             2008                       2009
Corporate Single                       $250.00          $250.00                    $275.00
Corporate Double                       $400.00          $400.00                    $450.00
Corporate Deluxe                       $300.00          $300.00                    $325.00
Vacation Fractional Ownership Sales   $22,500.       $22,500.00                 $22,500.00
Corporate Suite                        $350.00          $400.00                    $450.00
Sales                                     2007             2008                      2009
Corporate Single                       $41,250       $2,250,000                $2,475,000
Corporate Double                       $76,000       $3,600,000                $4,050,000
Corporate Deluxe                       $12,000       $1,200,000                $1,300,000
Vacation Fractional Ownership Sales   $3,937,5      $90,000,000              $140,062,500
Corporate Suite                         $4,200         $200,000                  $225,000
Total Sales                           $4,070,9      $97,250,000              $148,112,500
Direct Unit Costs                         2007                2008                    2009
Corporate Single                         $9.00               $9.50                  $10.00
Corporate Double                         $9.00               $9.50                  $10.00
Corporate Deluxe                         $9.00               $9.50                  $10.00
Vacation Fractional Ownership Sales   $4,500.0           $4,500.00               $4,500.00
Corporate Suite                          $9.00               $9.50                  $10.00
Direct Cost of Sales                      2007             2008                       2009
Corporate Single                        $1,485          $85,500                    $90,000
Corporate Double                        $1,710          $85,500                    $90,000
Corporate Deluxe                          $360          $38,000                    $40,000
Vacation Fractional Ownership Sales    $787,50      $18,000,000                $28,012,500
Corporate Suite                           $108           $4,750                     $5,000
Subtotal Direct Cost of Sales          $791,16      $18,213,750                $28,237,500
      4.2 Expense Forecast

      Marketing expenses are projected to be approximately from 10% to as low as 1% of overall annual revenue. The
      breakdown of expenditures is as follows:

      Our expenses occur as the result of both historically successful marketing endeavors and projected marketing
      programs designed to take advantage of expanding markets and improved communication in the niche markets.
      We will be moving into the realm of internet marketing and sales in the year 2006 and attending local
      (California) and national niche market events where a minimum of 100,000 people attend. The initial costs are
      high relative to the maintenance costs involved after the websites' creation. Similarly, the development of an in-
      house brochure(s) will incur higher start-up expenses than maintenance costs after the initial publication. We
      have chosen these two new marketing programs as areas where expenses can initially build up because research
      indicates that they will cause our market share to increase exponentially over time.




                                     Monthly Expense Budget



 $100,000

  $80,000

  $60,000                                                                Print Advertising
                                                                         Internet Advertising
  $40,000
                                                                         Public Relations

  $20,000
                                                                         Other (Travel, Conventions, Meetings)


       $0




      Table: Marketing Expense Budget

Marketing Expense Budget                                       2007                    2008                      2009
Print Advertising                                         $160,000                $300,000                  $300,000
Internet Advertising                                       $30,000                 $35,000                   $35,000
Public Relations                                          $165,000                $325,000                  $120,000
Other (Travel, Conventions, Meetings)                     $195,000              $1,000,000                $1,000,000
                                                          ------------            ------------              ------------
Total Sales and Marketing Expenses                        $550,000              $1,660,000                $1,455,000
Percent of Sales                                            13.51%                    1.71%                     0.98%
Contribution Margin                                     $2,729,787             $77,376,250              $118,420,000
Contribution Margin / Sales                                 67.06%                  79.56%                    79.95%


      4.3 Linking Sales and Expenses to Strategy

      Our marketing expense is structured to reflect the corporate strategy differentiation. Bi-Monthly niche market
      trade publications and interim monthly press ads communicate our message to key clients in one of our most
      significant target markets. Monthly Internet advertising expenses include banner ads, and strategic links with car
      hire, airline and destination management companies' websites to drive business to the resort and timeshares.
      Direct mail activity builds our targeted customer database, not only in terms of improving the quality of the data
      we currently hold, but on increasing the size of the database with prospective customer information. Public
      relations expenses cover PR events, participation at local functions and sponsorship funds. Overall, the
      percentage of total revenue required to support the marketing expense is considered a moderate amount.
                             Sales vs. Expenses Monthly

$1,800,000

$1,600,000

$1,400,000

$1,200,000

$1,000,000
                                                                            Sales
 $800,000                                                                   Expenses
 $600,000

 $400,000

 $200,000

       $0
                 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun




4.4 Contribution Margin

Contribution margins should increase due to:

         •Differentiation/focus strategy increases ability to specialize.
         •Maintenance of expenses within specified levels.
         •Increased efficiency in capacity utilization.
         •Economies of scale due to increased purchasing efficiencies.




                            Contribution Margin Monthly

        $1,400,000

        $1,200,000

        $1,000,000

             $800,000

             $600,000

             $400,000

             $200,000

                  $0

        ($200,000)
                        Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
       Table: Contribution Margin

Direct Costs of Goods                               $791,163             $18,213,750                   $28,237,500
Other Variable Costs of Sales                                $0                      $0                            $0
                                                    ------------            ------------                  ------------
Marketing Expense Budget                                 2007                    2008                          2009
Print Advertising                                   $160,000                $300,000                      $300,000
Internet Advertising                                  $30,000                $35,000                       $35,000
Public Relations                                    $165,000                $325,000                      $120,000
Other (Travel, Conventions,                         $195,000              $1,000,000                    $1,000,000
                                                    ------------            ------------                  ------------
Total Sales and Marketing Expenses                  $550,000              $1,660,000                    $1,455,000
Percent of Sales                                      13.51%                    1.71%                         0.98%
Contribution Margin                                  $2,729,7            $77,376,250                  $118,420,000
Contribution Margin / Sales                           67.06%                  79.56%                        79.95%

       5.0 Controls

       Our marketing plan is structured to enable us to achieve the strategic goals we have set for ourselves, in terms of
       increasing overall revenue as a result of differentiating our products and services from the competition.

       Our marketing team will ensure that the plan is implemented to the best of their ability and with the highest
       levels of efficiency and accuracy.


       5.1 Implementation Milestones

       All figures will be monitored on an ongoing basis in relation to projections versus actual, and the ongoing plan
       will be altered or manipulated as necessary in order to react to and, wherever possible, anticipate external
       changes to the environment.

       Quarterly results will be evaluated at the General Manager's meeting where the structure of the plan for the
       approaching quarter will also be established.

                                                         Milestones

                              Contract media space

               Ad agency liaison on print ad material

         Evaluate business results ongoing quarterly

                Direct mail lists to purchase/prepare

            Ad agency liaison on direct mail material

                 Despatch/monitor campaign results

               Public relations functions to schedule

                     Evaluate sponsorship requests

      Establish list of sponsorship events/companies

                                                         2007              2008               2009

       Table: Milestones

Milestones
Milestone                                          Start Date      End Date       Budget      Manager         Department
Contract media space                               10/1/2006       9/30/2007      $20,000        Jerry          Marketing
Ad agency liaison on print ad                      10/1/2006       9/30/2005      $11,000        Jerry          Marketing
Evaluate business results ongoing                  2/28/2007       2/27/2008           $0        Jerry          Marketing
Direct mail lists to purchase/prepare                2/1/2007      1/31/2008      $10,000        Sean           Marketing
Ad agency liaison on direct mail                   1/31/2007       1/30/2009       $8,000        Sean           Marketing
Dispatch/monitor campaign results                    2/1/2007      1/31/2009       $2,500        Sean           Marketing
Public relations functions to                      10/1/2007       9/30/2009           $0        Mary                 PR
Evaluate sponsorship requests                        3/1/2007      2/28/2009           $0        Mary                 PR
Establish list of sponsorship                        2/1/2007      1/31/2009      $15,000        Mary                 PR
Totals                                                                            $66,500
5.2 Marketing Organization

Our marketing director, Jerry Neiland, leads our PR and marketing team of four in all advertising, promotional
and public relations related activities. Jerry works closely with the members of the team, to implement and
monitor the effectiveness of the marketing plan and evaluate results.


5.3 Contingency Planning

Contingency plans have been made for the following unexpected developments:

•The entry into the market of a competitively aligned resort and timeshares: differentiation would continue to be
the strategic approach with the development of added value and benefits to leverage long standing relationships
and repeat business based on familiarity and personal attention to detail.
          Appendix Table: Sales Forecast

Sales Forecast
Unit Sales                                         Jul         Aug         Sep         Oct         Nov         Dec         Jan         Feb         Mar         Apr         May         Jun
Corporate Single                                                                                                                                                25          65          75
Corporate Double                                                                                                                                                50          65          75
Corporate Deluxe                                                                                                                                                10          15          15
Vacation Fractional Ownership
                                                                                                                                                                50          75          50
Sales
Corporate Suite                                                                                                                                                  2           5           5
Total Unit Sales                                    0            0           0           0           0           0           0           0           0         137         225         220

Unit Prices                                        Jul        Aug          Sep          Oct        Nov         Dec          Jan        Feb         Mar          Apr        May          Jun
Corporate Single                               $250.00     $250.00      $250.00     $250.00     $250.00     $250.00     $250.00     $250.00     $250.00     $250.00     $250.00     $250.00
Corporate Double                               $400.00     $400.00      $400.00     $400.00     $400.00     $400.00     $400.00     $400.00     $400.00     $400.00     $400.00     $400.00
Corporate Deluxe                               $300.00     $300.00      $300.00     $300.00     $300.00     $300.00     $300.00     $300.00     $300.00     $300.00     $300.00     $300.00
Vacation Fractional Ownership                $22,500.0                $22,500.0   $22,500.0   $22,500.0   $22,500.0   $22,500.0   $22,500.0   $22,500.0   $22,500.0   $22,500.0   $22,500.0
                                                         $22,500.00
Sales                                                0                        0           0           0           0           0           0           0           0           0           0
Corporate Suite                                $350.00     $350.00      $350.00     $350.00     $350.00     $350.00     $350.00     $350.00     $350.00     $350.00     $350.00     $350.00

Sales                                              Jul         Aug         Sep         Oct         Nov         Dec         Jan         Feb         Mar          Apr        May          Jun
Corporate Single                                   $0           $0          $0          $0          $0          $0          $0          $0          $0       $6,250     $16,250     $18,750
Corporate Double                                   $0           $0          $0          $0          $0          $0          $0          $0          $0      $20,000     $26,000     $30,000
Corporate Deluxe                                   $0           $0          $0          $0          $0          $0          $0          $0          $0       $3,000      $4,500      $4,500
Vacation Fractional Ownership                                                                                                                             $1,125,00   $1,687,50   $1,125,00
Sales                                              $0           $0          $0          $0          $0          $0          $0          $0          $0
                                                                                                                                                                  0           0           0
Corporate Suite                                    $0           $0          $0          $0          $0          $0          $0          $0          $0         $700      $1,750      $1,750
Total Sales                                                                                                                                               $1,154,95   $1,736,00   $1,180,00
                                                   $0           $0          $0          $0          $0          $0          $0          $0          $0
                                                                                                                                                                  0           0           0

Direct Unit Costs                                 Jul         Aug         Sep          Oct        Nov         Dec          Jan        Feb         Mar          Apr        May          Jun
Corporate Single                    50.00%      $9.00        $9.50       $0.50       $9.50       $9.50       $0.50       $9.50       $9.50       $9.00       $9.00       $9.00       $9.00
Corporate Double                    43.00%     $12.50       $12.50      $12.50      $12.50      $12.50      $12.50      $12.50      $21.50       $9.00       $9.00       $9.00       $9.00
Corporate Deluxe                     5.00%     $17.50       $17.50      $17.50      $17.50      $17.50      $17.50      $17.50      $17.50       $9.00       $9.00       $9.00       $9.00
Vacation Fractional Ownership
                                     0.00%      $0.00        $0.00       $0.00       $0.00       $0.00       $0.00       $0.00       $0.00       $0.00    $4,500.00   $4,500.00   $4,500.00
Sales
Corporate Suite                      2.00%     $22.50        $0.00       $0.00       $0.00       $0.00       $0.00       $0.00       $0.00       $9.00       $9.00       $9.00       $9.00

Direct Cost of Sales                               Jul         Aug         Sep         Oct         Nov         Dec         Jan         Feb         Mar         Apr         May         Jun
Corporate Single                                   $0           $0          $0          $0          $0          $0          $0          $0          $0        $225        $585        $675
Corporate Double                                   $0           $0          $0          $0          $0          $0          $0          $0          $0        $450        $585        $675
Corporate Deluxe                                   $0           $0          $0          $0          $0          $0          $0          $0          $0         $90        $135        $135
Vacation Fractional Ownership
                                                   $0           $0          $0          $0          $0          $0          $0          $0          $0    $225,000    $337,500    $225,000
Sales
Corporate Suite                                    $0           $0          $0          $0          $0          $0          $0          $0          $0         $18         $45         $45
Subtotal Direct Cost of Sales                      $0           $0          $0          $0          $0          $0          $0          $0          $0    $225,783    $338,850    $226,530
            Appendix Table: Sales Breakdown by Direct Marketing Sales

Sales by:                            Direct Marketing
                                     Sales
Sales                                                           Jul     Aug   Sep   Oct   Nov   Dec   Jan   Feb   Mar   Apr   May   Jun
Name me                                                          0        0     0    0      0     0     0     0     0     0     0     0
Name me                                                          0        0     0    0      0     0     0     0     0     0     0     0
Other                                                            0        0     0    0      0     0     0     0     0   137   225   220
Total                                                            0        0     0    0      0     0     0     0     0   137   225   220
Average                                                          0        0     0    0      0     0     0     0     0    46    75    73
            Appendix Table: Sales Breakdown by California Marketing Sales

Sales by:                   California
                            Marketing Sales
Sales                                                    Jul          Aug   Sep   Oct   Nov   Dec   Jan   Feb   Mar   Apr   May   Jun
Name me                                                   0             0     0    0      0     0     0     0     0     0     0     0
Name me                                                   0             0     0    0      0     0     0     0     0     0     0     0
Other                                                     0             0     0    0      0     0     0     0     0   137   225   220
Total                                                     0             0     0    0      0     0     0     0     0   137   225   220
Average                                                   0             0     0    0      0     0     0     0     0    46    75    73
            Appendix Table: Sales Breakdown by Convention/Meetings Marketing Sales

Sales by:                  Convention/Meetin
                           gs Marketing Sales
Sales                                                   Jul          Aug             Sep   Oct   Nov   Dec   Jan   Feb   Mar   Apr   May   Jun
Name me                                                  0             0               0    0      0     0     0     0     0     0     0     0
Name me                                                  0             0               0    0      0     0     0     0     0     0     0     0
Other                                                    0             0               0    0      0     0     0     0     0   137   225   220
Total                                                    0             0               0    0      0     0     0     0     0   137   225   220
Average                                                  0             0               0    0      0     0     0     0     0    46    75    73
          Appendix Table: Marketing Expense Budget

Marketing Expense Budget                                      Jul            Aug             Sep             Oct             Nov             Dec             Jan             Feb             Mar            Apr             May             Jun
Print Advertising                                      $10,000         $10,000         $10,000         $10,000         $10,000         $10,000         $10,000         $10,000         $20,000        $20,000          $20,000        $20,000
Internet Advertising                                     $2,500          $2,500          $2,500          $2,500          $2,500          $2,500          $2,500          $2,500          $2,500         $2,500           $2,500         $2,500
Public Relations                                       $10,000         $10,000         $10,000         $10,000         $10,000         $10,000         $10,000         $10,000         $10,000        $25,000          $25,000        $25,000
Other (Travel, Conventions, Meetings)                    $5,000          $5,000          $5,000          $5,000          $5,000          $5,000          $5,000          $5,000          $5,000       $50,000          $50,000        $50,000
                                                      ------------    ------------    ------------    ------------    ------------    ------------    ------------    ------------    ------------   ------------     ------------   ------------
Total Sales and Marketing Expenses                     $27,500         $27,500         $27,500         $27,500         $27,500         $27,500         $27,500         $27,500         $37,500        $97,500          $97,500        $97,500
Percent of Sales                                         0.00%           0.00%           0.00%           0.00%           0.00%           0.00%           0.00%           0.00%           0.00%          8.44%            5.62%          8.26%
Contribution Margin                                  ($27,500)       ($27,500)       ($27,500)       ($27,500)       ($27,500)       ($27,500)       ($27,500)       ($27,500)       ($37,500)       $831,667       $1,299,650       $855,970
Contribution Margin / Sales                              0.00%           0.00%           0.00%           0.00%           0.00%           0.00%           0.00%           0.00%           0.00%         72.01%           74.86%         72.54%
           Appendix Table: Expense Breakdown by Direct Marketing Sales

Expenses by            Direct
                       Marketing
                       Sales
Expenses                                       Jul           Aug             Sep       Oct       Nov       Dec       Jan       Feb       Mar       Apr      May        Jun
Name me                                        $0             $0              $0        $0        $0        $0        $0        $0        $0        $0        $0        $0
Name me                                        $0             $0              $0        $0        $0        $0        $0        $0        $0        $0        $0        $0
Other                                     $27,500        $27,500         $27,500   $27,500   $27,500   $27,500   $27,500   $27,500   $37,500   $97,500   $97,500   $97,500
Total                                     $27,500        $27,500         $27,500   $27,500   $27,500   $27,500   $27,500   $27,500   $37,500   $97,500   $97,500   $97,500
Average                                    $9,167         $9,167          $9,167    $9,167    $9,167    $9,167    $9,167    $9,167   $12,500   $32,500   $32,500   $32,500
           Appendix Table: Expense Breakdown by California Marketing Sales

Expenses by            California
                       Marketing
                       Sales
Expenses                                        Jul           Aug            Sep       Oct       Nov       Dec       Jan       Feb       Mar       Apr      May        Jun
Name me                                         $0             $0             $0        $0        $0        $0        $0        $0        $0        $0        $0        $0
Name me                                         $0             $0             $0        $0        $0        $0        $0        $0        $0        $0        $0        $0
Other                                      $27,500        $27,500        $27,500   $27,500   $27,500   $27,500   $27,500   $27,500   $37,500   $97,500   $97,500   $97,500
Total                                      $27,500        $27,500        $27,500   $27,500   $27,500   $27,500   $27,500   $27,500   $37,500   $97,500   $97,500   $97,500
Average                                     $9,167         $9,167         $9,167    $9,167    $9,167    $9,167    $9,167    $9,167   $12,500   $32,500   $32,500   $32,500
           Appendix Table: Expense Breakdown by Conventions/Meetings Marketing Sales

Expenses by            Conventions/
                       Meetings
                       Marketing
                       Sales
Expenses                                       Jul           Aug           Sep             Oct       Nov       Dec       Jan       Feb       Mar       Apr      May        Jun
Name me                                        $0             $0            $0              $0        $0        $0        $0        $0        $0        $0        $0        $0
Name me                                        $0             $0            $0              $0        $0        $0        $0        $0        $0        $0        $0        $0
Other                                     $27,500        $27,500       $27,500         $27,500   $27,500   $27,500   $27,500   $27,500   $37,500   $97,500   $97,500   $97,500
Total                                     $27,500        $27,500       $27,500         $27,500   $27,500   $27,500   $27,500   $27,500   $37,500   $97,500   $97,500   $97,500
Average                                    $9,167         $9,167        $9,167          $9,167    $9,167    $9,167    $9,167    $9,167   $12,500   $32,500   $32,500   $32,500
          Appendix Table: Contribution Margin

Direct Costs of Goods                                     $0              $0              $0              $0              $0              $0              $0              $0              $0    $225,783         $338,850       $226,530
Other Variable Costs of Sales                             $0              $0              $0              $0              $0              $0              $0              $0              $0             $0               $0             $0
                                                 ------------    ------------    ------------    ------------    ------------    ------------    ------------    ------------    ------------   ------------     ------------   ------------
Marketing Expense Budget                                 Jul            Aug             Sep             Oct             Nov             Dec             Jan             Feb             Mar            Apr             May             Jun
Print Advertising                                 $10,000         $10,000         $10,000         $10,000         $10,000         $10,000         $10,000         $10,000         $20,000        $20,000          $20,000        $20,000
Internet Advertising                                $2,500          $2,500          $2,500          $2,500          $2,500          $2,500          $2,500          $2,500          $2,500         $2,500           $2,500         $2,500
Public Relations                                  $10,000         $10,000         $10,000         $10,000         $10,000         $10,000         $10,000         $10,000         $10,000        $25,000          $25,000        $25,000
Other (Travel, Conventions, Meetings)               $5,000          $5,000          $5,000          $5,000          $5,000          $5,000          $5,000          $5,000          $5,000       $50,000          $50,000        $50,000
                                                 ------------    ------------    ------------    ------------    ------------    ------------    ------------    ------------    ------------   ------------     ------------   ------------
Total Sales and Marketing Expenses                $27,500         $27,500         $27,500         $27,500         $27,500         $27,500         $27,500         $27,500         $37,500        $97,500          $97,500        $97,500
Percent of Sales                                    0.00%           0.00%           0.00%           0.00%           0.00%           0.00%           0.00%           0.00%           0.00%          8.44%            5.62%          8.26%
Contribution Margin                             ($27,500)       ($27,500)       ($27,500)       ($27,500)       ($27,500)       ($27,500)       ($27,500)       ($27,500)       ($37,500)       $831,667       $1,299,650       $855,970
Contribution Margin / Sales                         0.00%           0.00%           0.00%           0.00%           0.00%           0.00%           0.00%           0.00%           0.00%         72.01%           74.86%         72.54%

								
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