Environmental Analysis for Guns and Roses Bed and Breakfast

Environmental Analysis for Guns and Roses Bed and Breakfast

Jane Smith

Evita Alenza, Instructor

Strategic Planning and Implementation - 581

August 1, 2011

Environmental Analysis

The Guns & Roses Bed & Breakfast is a retirement plan. Creating a good strategic marketing plan is important to the future success a life-long dream Guns & Roses Bed & Breakfast will offer a high desert mountain-filled panorama. Situated 15 minutes from Naval Air Weapons Station China Lake (NAWS), Guns & Roses will bask in the middle of the Indian Wells Valley and 20 minutes from Death Valley National Park. Surrounding the property are three breathtaking-mountain ranges, the Sierra Nevada, Coso Range, and El Paso Mountains, offer 360 degrees of spectacular mountain views. This vista, year-round outdoor recreation, and an active military base drive the need for both short and long-term hotel accommodations.

Market Summary

Guns & Roses has obtained comprehensive information about the local environment and maintains a significant amount of general knowledge of both the military and civilian customer base. Guns & Roses will weigh this information to identify the specific wants and needs of these prospective customers.

Following is a synopsis of probable market growth in Ridgecrest. The downtown business association provides information concerning local businesses. The downtown association gleaned room demographic information from their participating local hotels. Focusing on the latest census report (Department of Finance, 2011) for the growth in Ridgecrest and the information from the downtown association the following projections show the probable need for room accommodations provided by a unique alternative to the traditional motel room.

Market Analysis

2010 2011 2012 2013 2014

Anticipated Growth

Regular Vacationers 11% 3080 3220 3360 3500 3640

Family Driven Travelers 10% 2800 2940 3080 3220 3360

Military/Government 17% 4760 4900 5040 5180 5320

Total 13% 10640 11060 11480 11900 12320

Market Demographics

* Main target group is military and civilian government contractors.

* Next target group is the population of Ridgecrest, California pop. 27, 768 (Department of Finance, 2011).

* The third target group is casual visitors and relatives of the local population.

Demographic Target

* Both sexes

* Ages 30-70

* 12 or more years of education

* An income over $55,000+

Behavior Considerations

* Frequent work-related travel with an average duration of 13 days

* Life-style where time is not critical

* Want personal attention afforded at a Bed & Breakfast

* Spends more than one meal at restaurants per week

Environment Requirements

Guns & Roses will deliver a unique, exciting, and luxurious, just out-side-the-city country style Bed & Breakfast. Guns & Roses will provide the following basic offerings that will create an enticing product for prospective customers.

* Selection: The Guns & Roses will have four rooms, each with its own breath-taking view of one of three mountain ranges and distinctive decorations.

* Accessibility: The Bed & Breakfast is 15 minutes west of the city of Ridgecrest, allowing a respite from the noise and lack of privacy presented by facilities close to city streets.

* Customer Service: Our clients will be treated as old friends and welcomed as family, customer service is the mantra perpetuated through our vision and mission statements.

* Competitive Pricing: Because no other local competition will provide comparable amenities, competitive pricing will be challenging.

Market Development

The current developmental trends for the Bed & Breakfast industry include an increase in customer patronage. This increase appears to be nation-wide. For years, Bed & Breakfasts existed beneath the radar of the general population. In the past, the majority of travelers simply made reservations at traditional motels and hotels, generic or brand name indiscriminately. However, the past couple of years have seen trends in travelers choosing the unique experiences that only a Bed & Breakfast has to offer. A cross-section of these new-found customers indicates these patrons are women looking forward to tranquil luxurious amenities without the interruption of husbands or children.

The Bed & Breakfast industry has seen a marked increase in occupancy from travelers outside their respective locales. An identified bright spot is the increase of local clientele taking advantage of what Bed & Breakfasts have to offer.

Market Growth

Nation-wide, the Bed & Breakfast industry boasts a net-worth of $3.4 billion dollars (Innkeeping, 2011). Economic factors are indicating sales are anticipated to increase by 2% over the next four years. This growth can be attributed to several indicators. First is simply a resounding approval for the luxurious personalized services that only a Bed & Breakfast can provide.

Driving industry growth is the effect fuel prices are having on airfare costs. That increase in travel expense makes vacationing outside the local area cost prohibitive. More people are searching for alternatives to expensive airfare and are considering staying local, and splurging on the local Bed & Breakfasts.

Finally, as the number of hours Americans are working has increased in recent years, employees are depending more than ever on taking the family away from the doldrums of the work-week grind. Bed & Breakfasts provide hard-working people this opportunity. For a fee slightly higher than Motel 6, clients may find themselves