Bed & Breakfast Marketing Plan

Enchanted Vineyard B and B

This sample marketing plan was created with Marketing Plan Pro software.

Executive Summary
The Enchanted Vineyard is a charming Bed & Breakfast located in the Lorane Valley, outside of
Eugene, Ore. The valley is well known for its beauty and concentration of vineyards and
wineries. The B&B will be run by Missy Stewart in the Stewart's newly renovated home. The
Inn itself is a work of art. Each of the five guest rooms have walls that are 65% glass providing a
breathtaking view of the valley. In addition to the views, the Inn offers a huge patio and
vineyard for the guests to explore.

The Enchanted Vineyard Bed & Breakfast has two competitive advantages that will ensure
profitability. The first is Missy's unrelentless attention to personal service. Missy recognizes
that her most important job is to pamper the guests, allowing them to have an excellent stay. The
other sustainable competitive advantage is the facilities, handcrafted and simply beautiful. The
house and adjoining land are magnificent.

Missy will turn leads into customers through attention to callers on the phone and through the
use of a comprehensive website with all details of the bed & breakfast experience listed therein.
The Enchanted Vineyard Bed & Breakfast will begin to make a profit by month nine and will
grow steadily from month to month.

Situation Analysis

The Enchanted Vineyard Bed & Breakfast is a start-up business. Marketing is critical to its
success and future profitability. The B&B offers an exquisite country setting B&B, just a few
minutes outside of Eugene in the Lorane River Valley. The basic market need is a delightful
B&B serving the Eugene area. The physical structure that houses the B&B has been specially
engineered to please the most discriminating travelers.

Market Summary
The Enchanted Vineyard Bed & Breakfast possesses good information about the market and
knows a great deal about the common attributes of the most prized and loyal customers. The
Enchanted Vineyard Bed & Breakfast will leverage this information to better understand who is
served, their specific needs, and how The Enchanted Vineyard can better communicate with
them.

Market Analysis

Potential Customers

Weekend getaway customers

Travelers

University of Oregon travelers

Total

Market Demographics
Geographics

One target group is the geographic target of the city of Eugene with a
population of 130,000 people.

Another target population are travelers that typically come from the United
States, however, approximately 10% are from other countries.

Demographics

Male and Female.

 Ages 35-55.

College or graduate education.

An income over $50,000.

Behavior Factors

Enjoys traveling for the sake of seeing new things and meeting people.

Tend to use B&Bs when traveling instead of hotels.

Enjoy meals at restaurants once a week.

Market Needs
The Enchanted Vineyard Bed & Breakfast provides its customers with a beautiful, relaxing,
luxurious, country setting bed & breakfast. The Enchanted Vineyard Bed & Breakfast seeks to
fulfill the following benefits that are important to their customers:

Selection: The Enchanted Vineyard has several different rooms, each with its
own unique, breathtaking view of the countryside, some facing the B&B's
vineyard.

Accessibility: The B&B is located within 10 minutes of the city of Eugene,

providing accessibility for people from Eugene, travelers in the Willamette
River Valley, and guests of the University of Oregon.

Customer Service: The customers will be impressed with the level of

attention that they receive.

Competitive Pricing: All rooms will be competitively priced relative to

similar B&Bs.

Market Trends
The market trend for B&Bs is an increase in occupancy seen on a national scale. For years,
B&Bs existed underneath the radar of the general population. When most people went on
vacation, they would tend to make reservations at a hotel/motel. Within the last two years,
people have begun to discover B&Bs and appreciate the additional services that they offer
relative to traditional accommodations.

The industry has seen an increase in occupancy, from out of state or region travelers, as well as
and more importantly, local people that are looking for a place to escape from their homes.
Market Growth
In 1999, the national B&B market reached $543 million dollars. Sales are expected to grow by
9% for the next few years. This growth can be attributed to a couple of factors. The first factor
is an appreciation for services that a B&B provides.

Another factor driving market growth is the increase in airfare that makes non-local vacations
less practical and cost effective. People are turning to B&Bs in unique locations as a vacation
spot instead of flying.

Lastly, as the number of work hours Americans perform has increased in the last few years,
people are relying on weekend getaways as a way to distance themselves, albeit briefly, from
their work week. B&Bs provide people this option, and this has been a user group that has
gotten larger in the last few years.

SWOT Analysis
The following SWOT analysis captures the key strength and weaknesses within the company and
describe the opportunities and threats facing The Enchanted Vineyard.

Strengths

Great location.

Fantastic facilities.

Owners who are passionate about their work.

Weaknesses

Brand visibility.

Limited number of rooms means limited amount of sales.

The struggle with taking care of everything with low labor overhead.

Opportunities

Growing market with a significant percentage still not aware of The

Enchanted Vineyard.

Increase in sales from university-related events.

The ability to become more efficient as the learning curve steepens over
time.

Threats

Competition from new B&B entrants.

The introduction of a B&B-style hotel that understands the basic market

need.

A slump in the economy, decreasing people's discretionary income.

Competition
Competition comes in several forms:

Other B&Bs
Typically B&Bs have a set of unique features, something that makes them stand out. Some
B&Bs will create uniqueness down to the level of different rooms within the B&B. The size of a
B&B ranges from one to two rooms (traditionally called a home stay) to a country inn with more
than 30 rooms. On average, most B&Bs have only 4-6 rooms and are often booked up in
advance. Particularly during special events, demand outstrips supply. B&Bs differentiate
themselves by personal service offerings and the general ambiance. Finally, B&Bs usually have
a nice sit down breakfast for their guests. This is not a simple continental breakfast of juice,
coffee, and a bagel, but an elaborate spread of gourmet food such as quiche with portabella
mushrooms, fresh roasted garlic and sun dried tomato omelettes, or some sort of fresh smoked
fish. Guests of B&Bs are not just looking for a room to sleep in but a whole experience in
staying in a lovely setting, with interesting people to chat with, and people present to pamper
them in any way possible.
Hotels/motels
These facilities are generally much more sterile in character relative to B&Bs. The rooms are
typically the same throughout the facility (unlike B&Bs where each room is typically quite
different). The guests of hotels generally use the hotel as a place to stay at night. The operator
will usually see the guest when they check in and when they check out. This differs from a B&B
where the guests are encouraged to spend time in communal rooms and socialize with the
operators and other guests. Breakfast, if included at all in hotels, is sparse.

Service Offering
The Enchanted Vineyard Bed & Breakfast is a small, attractive B&B that offers travelers
a relaxed setting for weekend getaways, change of scenery, sports or cultural events, family
occassions, U of O events, etc. The Enchanted Vineyard Bed & Breakfast has a large central
gathering room that allows travelers to socialize. The customers will receive the personal
attention of the Stewarts who will meet any need a traveler has.

The Enchanted Vineyard Bed & Breakfast provides a wonderful breakfast feast and can meet any
dietary restriction. The B&B is centrally located about 15 minutes from downtown Eugene in
the heart of Lorane Valley wine country. In fact, The Enchanted Vineyard Bed & Breakfast has
their own vineyard which grows grapes for local wineries and the clients are encouraged to
explore The Enchanted Vineyard Bed & Breakfast's 10 acres of land.

Keys to Success
The key to success will be based on customer attention. The facilities for the Enchanted
Vineyard are already complete and are far nicer than anything around. The key is then to treat
the customer properly so they are amazed at the level of attention that they receive. The
Enchanted Vineyard will: generate repeat business and increase the length of stay per customer.

Critical Issues
The Enchanted Vineyard is still in the speculative stage as a B&B. Its critical issues are:

Continue to build brand awareness which will drive new customers to The
Enchanted Vineyard.

Gain operating efficiencies.

Develop a strong relationship with the University of Oregon.

Marketing Strategy

The Enchanted Vineyard Bed & Breakfast has a three-pronged strategy:

1. Association membership and advertising: A large number of visitors will

look to regional B&B associations for information about the different B&B's in
 the area. Most associations publish a guide to the local B&B's and The
Enchanted Vineyard Bed & Breakfast wants to be in this guide. One of the
other perks of membership is visibility on the associations website with a link
to ours. Additionally, we will be a member of the Chamber of Commerce
because people typically inquire with the local Chamber when planning a
vacation.

2. Website: The Enchanted Vineyard Bed & Breakfast will have a full-service
website that allows the visitor to view the B&B, read details about what it has
to offer, provide information on regional activities, even allow the visitor to
book a reservation. With the growing use of the Internet, the Web has
become an indispensable tool people have for planning vacation to areas that
are not close enough to check out in person.

3. Strategic relationship with the University of Oregon: The Enchanted

Vineyard Bed & Breakfast will develop a partnership with the university so
when the school is in need of finding rooms for guests they will use The
Enchanted Vineyard Bed & Breakfast. We will also be advertising with the
university so when students are searching for places for their parents to stay,
they will come across The Enchanted Vineyard Bed & Breakfast in school-
related publications and feel more comfortable with booking a reservation
sight unseen because of the trust bond they have formed with the university.

Mission
The mission of The Enchanted Vineyard Bed & Breakfast is to provide the finest B&B
experience. We exist to attract and maintain customers. When we adhere to this maxim,
everything else will fall into place. Our services will exceed the expectations of our customers.

Marketing Objectives

1. Maintain positive, steady growth each quarter.

2. Experience a growth in new customers who are turned into long-term

customers.

3. Realize an increase in occupancy each subsequent year.

Financial Objectives

1. A double digit growth rate for each future year.

2. Reduce the variable costs per guest.

3. Continue to decrease the fixed costs.

Target Marketing
Our customers can be broadly divided into three groups (please note that it is possible to divide
the customers into much smaller groups, but we have chosen not to):

1. Weekend getaway customers: These people are from the region and are
looking to get away so they come to The Enchanted Vineyard Bed & Breakfast
to be pampered and escape.

2. Travelers: These people are passing through Eugene and prefer to stay in a
B&B instead of a hotel/motel.

3. University of Oregon travelers: The university brings a large number of

people through Eugene and The Enchanted Vineyard Bed & Breakfast
believes that a good portion of their business will be from the university.
Occassions include parents weekend, orientation, parents visiting, and
graduation. Lastly, the university will often set up rooms for administrative
visitors.

Positioning
The Enchanted Vineyard Bed & Breakfast will position itself as an upscale B&B with a gorgeous
facility and unmatched customer attention.

The Enchanted Vineyard Bed & Breakfast will leverage their competitive edge:

Attention to Personalized Service

While anyone at a B&B should reasonably expect good service, there are ways of setting
yourself apart from this already high level of service. This will be done through the unrelenting
pursuit of personal attention. In the Eugene area there are several larger (more than six room)
B&B's that offer outstanding service, but it is not personal. What is meant by that is that the
service is provided by employees, not the owner. At The Enchanted Vineyard Bed & Breakfast
all interactions with the customer will be with Missy or John who see it as their duty to do
whatever it takes to make the customer feel at home. The feeling of personal attention, or more
accurately defined as a sense of personal concern, not just mere personal attention, really adds a
very positive dimension to the B&B experience. Not only will the Stewarts be offering personal
concern, but they will be providing the concern, not some employee.

Uniqueness and Beauty of the Facility

The Enchanted Vineyard Bed & Breakfast will be housed in the Stewart's home. The Stewart's
will be renovating their farm house to accommodate their new guests. They will be building two
more bedrooms with private baths, building a patio, and enlarging the common area. One unique
aspect of The Enchanted Vineyard Bed & Breakfast is the setting within the Lorane Valley
region, known for its outstanding wine production, housing both vineyards and wineries. To
compliment this setting, The Enchanted Vineyard Bed & Breakfast will have a large outside
patio allowing guests to spend time relaxing outside with a nice view of the valley. The guests
also have the option to wander through The Enchanted Vineyard Bed & Breakfast's own
vineyard. Each room in the B&B is 65% glass, overlooking the hill side and vineyard. Basically
there is not a room in the house that doesn't have a breathtaking view.

Strategy Pyramids
The single objective is to position The Enchanted Vineyard Bed & Breakfast as the upscale B&B
located in Eugene, reaching generally full occupancy within the first three years. The marketing
strategy will seek to first create customer awareness regarding the services offered, develop that
customer base, and work building customer loyalty and strategic relationships with the
university.

The message that The Enchanted Vineyard Bed & Breakfast will seek to communicate is that
The Enchanted Vineyard is the premier B&B in the Eugene area with the finest facilities. The
message will be communicated through a variety of methods. The first will be advertising in the
B&B association newsletter. The next method will be a robust website with a comprehensive
amount of information. The last method will be developing strategic relationships with the
university. While this will require a budget for assorted activities, these activities are basically
networking activities, taking people out to lunch and schmoozing.

Marketing Mix
The Enchanted Vineyard Bed & Breakfast's marketing mix is comprised of the following
approach to pricing, distribution, advertising and promotion, and customer service.

Pricing: The pricing scheme is based on a room rate. The rate is arrived at
in terms of by its market value.

Distribution: All services will be provided at the B&B.

Advertising and Promotion: The most successful traditional advertising

will be with the B&B association. Developing strategic alliances with the
university is a non-traditional method of marketing, but it will be quite
efficient. The website will also be used in marketing activities.

Customer Service: Obsessive customer attention is the mantra. The

Enchanted Vineyard's philosophy is what ever needs to be done to make the
customer happy must occur, even at the expense of short-term profits. In the
long run, this investment will pay off with fierce customer loyalty.

Marketing Research
During the initial phases of the marketing plan development, several focus groups were held to
gain insight into a variety of B&B patrons. These focus groups provided useful information into
the decision making processes of consumers.
An additional source of dynamic market research is a feedback mechanism based on a suggestion
card system. The suggestion card has several statements that patrons are asked to rate in terms of
a given scale. There are also several open ended questions that allow the customer to freely offer
constructive criticism or praise. The Enchanted Vineyard will work hard to implement
reasonable suggestions in order to improve their services as well as show their committment to
the customer that their suggestions are valued.

Financials, Budgets, and Forecasts

This section will offer a financial overview of The Enchanted Vineyard Bed & Breakfast as it
relates to the marketing activities. The B&B will address break-even analysis, sales forecasts,
expenses forecasts, and how those link to the marketing strategy.

Break-even Analysis
The Break-even Analysis indicates that $23,158 will be needed in monthly revenue to reach the
break-even point.

Break-even Analysis

Monthly Revenue Break-even

Assumptions:

Average Percent Variable Cost

Estimated Monthly Fixed Cost

Sales Forecast
The first four months will be used for the renovation of the home to fully accommodate guests.
Once complete, the house will handle five different rooms. There will be no sales activity during
this time. By month five the B&B will be ready to go. Missy will have started advertising,
joined as an B&B association member, as well as formed a strategic relationship with the
university by month two so business will ramp up fairly quickly. From month five on, business
will steadily grow. Beginning with month five, Missy will hire one full-time employee. This
employee will perform housecleaning as well as outdoor maintenance. This will free up Missy's
time so she can spend it will the clients.

Sales Forecast

Sales

Weekend getaway customers

Travelers

Total Sales

Direct Cost of Sales

Weekend getaway customers

Travelers
Subtotal Direct Cost of Sales

Expense Forecast
Marketing expenses are to be budgeted so more money is spent during busier months. The
website requires constant maintenance and this expense will also be relatively uniform each
month.

Marketing Expense Budget

2001 2002 2003

Advertising with Association $1,900 $1,800 $1,800

Website $2,400 $2,400 $2,400

Other $1,900 $1,800 $1,800

------------ ------------ ------------

Total Sales and Marketing

$6,200 $6,000 $6,000
Expenses

Percent of Sales 25.32% 5.88% 5.17%

Controls

The purpose of The Enchanted Vineyard Bed & Breakfast's marketing plan is to serve as a guide
for the organization.
The following areas will be monitored to gauge performance:

Revenue: monthly and annual.

Expenses: monthly and annual.

Repeat business.

Customer satisfaction.

Implementation Milestones
The following milestones identify the key marketing programs. It is important to accomplish
each one on budget and on time.

Milestones

Advertising

Assorted advertising activities

Other

Total Advertising Budget

PR

Strategic development

Other

Total PR Budget

Direct Marketing

Marketing plan completion

Other

Total Direct Marketing Budget

Web Development

Website maintenance

Other

Total Web Development Budget

Other
Other

Total Other Budget

Totals

Marketing Organization
Missy Stewart will be solely responsible for the marketing activities beyond outside occasional
creative help.

Contingency Planning
Difficulties and risks:

Problems generating visibility.

Slump in the economy.

The construction of a new facility that rivals the Enchanted Vineyard.

Worst case risks may include:

Determining that the business cannot support itself on an ongoing basis.

Having to liquidate equipment to cover liabilities.

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