SM & S Berry Pty Limited

T/as Targeted Internet Marketing Services ACN 060 645 730

'The Bower' • George Bass Drive • Broulee • NSW • 2537 Phone: 02, 4471 8666 • Fax: 02, 4471 8694 Email: Marketing@thebower.com.au

Sue McGrath South Coast Boutique Accommodation 115 Headland Drive Gerroa NSW 2534

RE: One-on-one Consultancy assistance for the development of a Strategic Marketing Plan for South Coast Boutique Accommodation

Dear Sue, Thank you for your participation in developing this plan to enable the future success of your new business. We acknowledge the support of the Department of State & Regional Development by way of the adoption of DSRD recommended guidelines outlined for the preparation of a marketing plan contained in the DSRD Home-Based Business Action Program. We appreciate the DSRD assistance which has made it feasible to provide a more comprehensive one-on-one consultancy to SCBA, which has been used to assist in the SCBA initiative to provide a superior advisory service to the more discerning niche of South Coast Tourism.

Best regards,

Sue & Mark Berry Directors

MARKETING PLAN for South Coast Boutique Accommodation

Contents:

EXECUTIVE SUMMARY ......................................................................................................................3 MARKET ANALYSIS ............................................................................................................................4

Target Market[s] – Who are the Customers?....................................................................................4 � Details of the Market ...................................................................................................5

� Supply Side: Owners ....................................................................................5 � Demand Side: Guests...................................................................................6

� Competition .................................................................................................................9 � Competitive Analysis: ................................................................................10

� Environment...............................................................................................................11 SERVICE ANALYSIS...........................................................................................................................12

� Description.................................................................................................................12 � Comparison................................................................................................................12 � Some Considerations .................................................................................................12

MARKETING STRATEGIES ...............................................................................................................13 MARKET MIX ..............................................................................................................................13

� Image .........................................................................................................................13 � Features & Benefits....................................................................................................13 � Pricing........................................................................................................................14

� Supply Side: Owners ..................................................................................14 � Demand Side: Guests [Tariffs] .................................................................14

� Customer Services .....................................................................................................14 � Advertising/ Promotion..............................................................................................15

EXECUTIVE SUMMARY

South Coast Boutique Accommodation Services [SCAS] will provide a highly personalised accommodation advisory service for the South Coast region. The aim of this service is to increase visitation of the more discerning, high disposable income segment of the domestic [and to some extent the in-bound] tourism marketplace, to the South Coast region. In this niche, SCAS will act as a co-ordinator on behalf of the many single property/owner venues which do not have the resources to provide for their own promotion, booking and management needs. The advantage of this is that SCAS provides economies of scale [& highly levels of professionalism] in the promotion and service delivery in the market segment.

SCAS Objectives:

1. To identify, select and assist the premium holiday rental properties in the region to

accommodate the above visitor’s, ensuring their South Coast experience is exceptionally positive.

2. To attract additional first time and repeat visitors (at the premium end of the market)

to the South Coast and place them in quality accommodation venues, whilst providing guidance to the appropriate local attractions.

This will be achieved through the practical implementation of an iterative strategy & marketing plan for SCBA. The promotional plan has been designed in stages, to utilise direct mail to owners, travel editors, travel guide books and previous guests in conjunction with alliances with strategically selected local attractions as well as Shoalhaven Tourism. Results will be monitored and assessed in the development of the later stages of the plan, when other channels such as [more extensive] magazine & newspaper advertising may be considered. The marketing plan is based on proven techniques, augmented by a selective use of technology, where and only where, elements of the action plan can provide a personalised service for individual clients and guests, in a targeted and cost effective manner.

This marketing plan has been designed to assist SCBA to promote and market South Coast Boutique Accommodation and in particular to:

1. Review existing Market Research in selected behavioural market segments with a view to selecting and attracting: • Local Properties meeting quality criteria • Potential discerning guests and visitors to the South Coast region

2. Review existing Market Research in selected geographical market segments with a view to attracting & developing: • International visitors, who typically demand more personal advice and “hand

holding” • Linkages with selected overseas market operators who require an Australian

“presence”. 3. Develop and finalise branding, promotional copy & imagery to represent & reinforce

the professionalism & personalised “caring” service offered by SCBA.

4. Select, customise & develop integrated systems, processes and documentation to enable and ensure a highly professional service with a streamlined workflow for all staff. Most importantly, these systems, website and documentation will be designed to include measurement systems to track sources of enquiry, guest demographics and feedback data to dovetail with the evolving overall marketing strategy.

This approach would not be feasible for many of the owners that SCBA represents.

MARKET ANALYSIS

Target Market[s] – Who are the Customers? Tourism on the South Coast has experienced strong growth over the last 10 years. In addition to the promotional efforts of Shoalhaven Tourism combined with it’s partner’s in the South Coast Tourism region, driving holidays [from the capital cities] and weekend breaks have become more popular, augmented by threats such as terrorism, SARS etc. which have encouraged short breaks intra-state travel, as an alternative to international holiday travel. While South Coast Boutique Accommodation will operate predominantly in the Shoalhaven City area with selected properties in Kiama and Eurobodalla local government areas, the following statistics

1 complied by South Coast Regional Tourism give only a general

background to the market niche within which SCBA will operate. Domestic Overnight Visitors – Over 2.6m individual visitors stayed 1 or more nights on the South Coast in 2002-2003. They stayed for nearly 11m visitor nights and 73% of the those stays were for Holidays or leisure, with 21% visiting friends or relatives and just 4% of those visitor nights being for business purposes. 93% of these visitors travelled in a private vehicle, [although this was prior to the Qantas service to Melbourne being introduced to Albion Park]. Notwithstanding, experience from the accommodation properties with proximity to Moruya Airport in neighbouring Eurobodalla Tourism region would suggest caution before projecting a significant change in this trend. The predominant age group for the South Coast region is between 25-44. International Visitors – A significant number [62,000] of international visitors, with the highest proportion [28%] being from the UK and with 48% of international tourists using a hire car as a mode of transport. 47% of these visitors chose to stay at hotels, resort or motor inn, as opposed to caravan parks or visiting friends and relatives.

1 Source: Tourism Research Australia, Survey Year ending June 2002-2003, cited in the Report Shoalhaven – Economic Impact of Tourism, Tourism Shoalhaven.

� Details of the Market

The data below was extracted from a survey2 of a group of B&B’s and self-contained

holiday accommodation properties, ranging from beach frontage properties to heritage B&B’s in towns along the Princes Highway.

� Supply Side: Owners

The Moruya Boutique accommodation group reported available capacity throughout the year, including January, and a surprisingly steady availability profile, month on month. The following chart shows the available inventory during weekends, as well as for midweek nights, reported in the Moruya research.

This demonstrates potential business opportunities for conferences, honeymooners and business travellers.

2 Survey of Moruya Boutique Accommodation Group, 2002-2003

Monthly Availability

356 July 365 August 395 Sept 314 Oct 375 Nov 369 Dec 261 Jan 348 Feb 409 Mar 332 Apr 409 May 389 June

22%

78%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Weekends Midweek

1031 3669

Number of days

Availability by Weekdays

� Demand Side: Guests

• Guest Origin

The following chart shows the strength of the Sydney market, even towards the southern end of the South Coast. Prior experience in the Shoalhaven & Kiama, has demonstrated that the predominant origin of the Sydney guests has been from inner west and eastern suburbs.

• Demand from Sydney has increased dramatically as Sydney people increasingly discover the advantages of a South Coast holiday as an alternative to the traditional Central & North Coastal Holiday, particularly at the high end of the market.

The Moruya research shows a strong representation from the Canberra market, due to its closer proximity to the South. Anecdotally, the Shoalhaven & Kiama regions benefit even more from the closer proximity of the much larger Sydney market. Meanwhile, in recent years, the increasing prevalence of flexible working hours in the private sector [in addition to the public sector] and the encouragement by employers to take multiple short breaks rather than long annual leave has enabled more people to take weekend breaks of longer duration, which has in turn made a 2-4 hour drive from Sydney more feasible. Up market stylish self-contained and B&B accommodation, professionally presented holiday accommodation properties and complemented by unobtrusive service through attention to “the little things” is highly sought after within the increasingly discerning client marketplace.

• Age Profile of Boutique Accommodation Guests – 90% of guests over 30.

•

• Guests Reason for Stay

35%

15%

29%

12%

1% 1% 0%

5%

0%2%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Syd

ney

NSW

Cou

ntry

ACT [i

ncl. Que

anbe

yan]

Vic

Qld

Tas

SA

Ove

rsea

s

WA &

NT

Unk

nown

1% 1% 0%

9%

38%

26%

19%

9%

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5%

10%

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25%

30%

35%

40%

Unsure

60 a

nd ove

r

Teena

gers

Childre

n

Infa

nts [in

arm

s]

The survey result reflects the strength of the market for professionals, and business people who wish to experience something “out of the ordinary [hotel/motel accommodation]”. Moreover, the combination of relaxation, coastal and local touring and local attractions including eco, beach & romantic getaway venues, demonstrate the importance of highlighting and selling the local attractions of the area.

• Gender of Booking Initiator

The chart above shows the gender breakdown of the people who actually make the initial contact for a booking.

24%

15%14%

18%

9%

7%

2%3%

0%2%

1% 1% 1% 0%

2%

0%

5%

10%

15%

20%

25%

Busin

ess

Relax

atio

n

Driv

ing

Hol

iday

[Coa

stal T

our]

Loca

l Tou

ring

Eco-e

xperie

nce

Beach

& S

urf

Visit

Friend

s & R

elat

ives

Rom

ance

Wedd

ing

Propo

sal

Wedd

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Night A

ccom

mod

ation

Hon

eymoo

n

Gift C

ertifica

teG

olf

Fine

Dinin

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Unk

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62%

38%

Female made the booking Male made the Booking

We will be selling primarily to (check all that apply): Total Percent of Business.

1. Private sector _____√_____ ____80%___ 2. Wholesalers ___________ ___________ 3. Retailers ___________ ___________ 4. Government _____√_____ ____10%____ 5. Other - Corporate _____√_____ ____10%____

• Mid to upper income business and professional people seeking respite from their busy lives [and in some cases, the kids], or an opportunity to catch up with friends/family.

• Discerning people

• Mature couples

• Accommodation for singles, couples and groups including families

We will be targeting customers by: 1. Services. Good “old fashioned” advisory service for

those who refuse “to be chained to a computer”

2. We will target specific groups families wedding, corporate, conference and function organisers Romantic couples, honeymooners, “Pampadours, Compatriots, Groupies, Wanderers “

3

3. Geographic area? Which areas? Sydney & surrounds plus selected International Markets [medium term]

4. Sales? We will target sales of $ 300,000 Gross Rental Revenue 5. Industry? Our target industry is _________n/a_______ 6. Other Behavioural segmentation – Romantic

Couples & family getaways, Smaller Conferences,

How much will our selected market spend on our type of service this coming year? From the latest available statistics for the South Coast Region in the y.e. June 2003, there were a total of 2.6 m domestic and 62,000 international overnight visitors to the South Coast Region. During this time there were 351,000 room nights occupied in the 1,992 guest rooms in the region. The average annual occupancy was 48.3 per cent and there were total accommodation takings of $29.6 million

4.

Conservatively, we estimate that the up-market Boutique accommodation sector will spend approximately $ 1 million [on accommodation] per year.

3 “See Australia” campaign, segmentation methodology, Graham Perry “A segmentation Appoach to Sustainable Tourism”, September 2004. 4 Australian Bureau of Statistics, Survey of Tourist Accommodation, 2002, cited in Shoalhaven – Economic Impact of Tourism, Profile and statement of Economic Impact, y.e 31 Dec 2003, ISSN 1035-144

� Competition Who are our competitors?

NAME South Coast Accommodation Services [Harcourts] ADDRESS www.accommodationsouthcoast.com.au

Years in Business ____________18 months________ Market Share _____________________________ Price/ Strategy In-consistent pricing for different owners & guests Product/ Service Property Sales, rentals & holiday lettings Features __________n/a________________ NAME South Coast Holidays Online ADDRESS http://www.southcoastholidays.com.au

Years in Business ____________4 years____________ Market Share _____________________________ Price/ Strategy _____________________________ Product/ Service holiday lettings Features _____________________________ NAME Tourism Kiama ADDRESS http://www.shoalhavenholidays.com.au

Years in Business ____________ ? _______________ Market Share _____________________________ Price/ Strategy Typically target price conscious “True Traveller & compatriot” market segment Product/ Service Tourist information Features _____________________________ Also, other regions that will be considered by our clientele as a holiday region option e.g.

• Blue Mountains

• Central Coast

• North Coast

• Other Australian States including Qld, Vic & Tasmania

• Pacific Islands

How competitive is the market? High _________√___________ Medium _____________________ Low _____________________

� Competitive Analysis:

List below your strengths and weaknesses compared to your competition (consider such areas as location, size of resources, reputation, services, personnel, etc.):

Internal:

Strengths Weaknesses

Personal Service & obsessive attention to detail Small operator, “one man band”

Knowledge of Properties, all properties personally inspected

New business startup - corporate branding awareness

Professional Image & Branding Total reliance on principal in early stages

Relationships with Owners & Guest Clients Need to recapture previous client base

Experience & reputation in Industry Limited financial resources

Specialisation in discerning, high value clientele Limited access to previous guest demographic data

Knowledge of local area and attractions

Previous accommodation industry experience

Extensive sales, sales management & marketing experience

External:

Opportunities Threats

Cater for the segment of the mature market that eschews “technology for technologies sake”

Increasing fuel prices

Capitalise on the current headlong rush towards technology, implemented by competitors, often in a way that decreases personal service

Discount air fares

Capitalise on current turmoil being experienced by certain competitors

Difficulty in sourcing satisfactory sub contractors – cleaners maintenance etc

Short breaks more popular due to perceived threats such as terrorism, SARS etc which have curtailed international travel

Increasing prevalence of flexible working hours and encouragement by employers to take multiple short breaks rather than long annual leave

Overseas tourists seeking a less conventional experience yet more likely to require an advisory service

Lack of activities – thru bad weather

� Environment The following are some important economic factors that will affect our product or service (such as trade area growth, industry health, economic trends, taxes, rising energy prices, etc.):

• Fuel prices and consumer confidence in interest rates appear to be having a significant effect on tourism in the current climate.

The following are some important legal factors that will affect our market:

• The requirement of Department of Fair Trading for Holiday Accommodation Booking Agents to hold a Real Estate licence.

The following are some important government factors:

• The promotional initiatives of the South Coast Tourism region are raising the awareness of the South Coast in the Greater Sydney Region, resulting in an increasing rate of enquiry for first time visitor’s to the area. These first time visitor’s often require a personalised advisory service to match them with the holiday experience that they seek.

The following are other environmental factors that will affect our market, but over which we have no control:

• Fuel prices

• Interest rates

• Air Fares, threats of terrorism, etc.

• Roads and traffic [density v Pacific Highway]

• Prolonged bad weather and/or bushfires etc.

SERVICE ANALYSIS

� Description The service will offer a personalised & highly professional service to match discerning, mid to upper income business and professional people [singles, couples and groups] seeking respite from their busy lives, or an opportunity to catch up with friends/family, with high quality, but not necessarily expensive, self contained properties (houses) and Bed & Breakfast establishments. The service will be especially attractive to property owners who require a comprehensive service including bookings processing, management of cleaners and servicing contractors etc. The successful matching of guests to the most appropriate quality properties will maximise the satisfaction of the guest experience, thus encouraging increased repeat visitation, referrals and recommendations of the South Coast as a desirable destination.

• Majority of properties are near beach or in mountains –eg: behind Berry

• Personalised & specialised holiday accommodation booking service. Self contained properties (houses) and B & B’s.

• Quality does not have to equate to expensive but must conform to required standard- well maintained, clean etc.

• Accommodation & on site facilities for conferences from small up to 200 people

• Venues for wedding ceremonies, receptions and/or wedding night accommodation

• Secluded retreats for romantic couples and honeymooners

� Comparison

What advantage does our service have over those of the competition (consider such things as unique features, patents, expertise, special training, etc.)?

• Fully licenced by NSW fair trading Dept. for managing holiday rentals and holding

trust funds

• One stop shop [in comparison to Tourist Information Centres]

• 24x7 service to guests on owners behalf

What disadvantages does it have?

• Budget constraints for advertising the service to potential guests

• Indirect relationship with Tourism Australia, NSW Tourism and Local Tourism organisations

• Refusal by Tourism Kiama to co-operate

� Some Considerations

Where will you get your inventory ? • From select list of Properties, following personal inspection & famil,

and after quality standards have been established.

MARKETING STRATEGIES

MARKET MIX

� Image

First, what kind of image do we want to have (such as cheap but good, or exclusiveness, or customer-oriented or highest quality, or convenience, or speed, or …)? • Personalised & specialised holiday accommodation booking service.

Only quality accommodation – self contained properties (houses) and B & B’s. Quality does not have to equate to expensive but must conform to required standard- well maintained, clean etc.

� Features & Benefits List the features we will emphasise:

Features Customer Benefits

Personalised service. Customers requirements are better understood

Quality, well presented properties

Customer’s expectations are met or exceeded

Emphasis on matching suitable property with clients requirements – not into ‘backs on beds’.

ditto

‘One stop shop’ Provides complete holiday experience including booking of accommodation and local attractions, restaurants & events etc. which are relevant to the individual guest requirements

We “care” and hope that satisfied clients will recommend our service.

Guests feel valued and comfortable in the knowledge that their particular requirements will be met i.e. “special”

No fee to guests Savings

24x7 service

Guests and owners can rely on backup in case of emergency

� Pricing

We will be using the following pricing strategy:

� Supply Side: Owners 1. Mark-up on cost __n/a___ What % markup?_______ 2. Competitive ___√___ 3. Below Competition _______ 4. Premium Price _______

� Demand Side: Guests [Tariffs]

1. Mark-up on cost __n/a___ What % markup?_______ 2. Competitive ___√___ We advise owners to be competitive with

their tariffs, but realistic. 3. Below Competition _______ 4. Premium Price _______

Are our prices in line with our image? YES_____√_____ NO__________

Do our prices cover costs and leave a margin of profit? YES_____√_____ NO__________

� Customer Services

List the customer service we provide • Assess guest requirements

• Match Property to guests

• Collect holiday rental deposit & final balance monies

• Co-ordinate keys, cleaning & maintenance [where necessary] of properties [optional] for self-contained properties

• Co-ordinate listing with 3rd

party distribution channels e.g. stays.com.au

• Promote local attractions, restaurants & events etc.

•

These are our sales/ credit terms: For Owners: • 13.5% commission on rental [incl. GST] for B&B’s

• 16.5% commission on rental [incl. GST] for self contained accommodation

For Guests:

• 50% deposit, payable on booking

• Balance 7 days prior to arrival

Competition offers the following services: 1. Tourist Information Centres provide local information and facility to take bookings 2. Other competitors offer similar range of services

� Advertising/ Promotion

These are the things we wish to say about the business: To guests:

o “Welcome to the beautiful South Coast where the sun

rises over sparkling beaches and sets behind rugged mountain ranges. Whether you seek a secluded romantic getaway or are planning a wedding, or function and require accommodation; we can assist.

o We take the time to assess your requirements before we recommend a property, which we feel, will most suit your needs. We have visited, and are familiar with each of the properties.

o Discover the diverse beauty of the picturesque South Coast. Sandy shores, misty mountains, spectacular sunsets.”

o “Special Places for Special People” o There is no fee for our professional, personal and

friendly service.

To Owners:

o We will assist you to find and book suitable holiday

tenants for your property, and collect the monies owing on your behalf. Optionally, we can assist by managing sub-contract cleaning & maintenance services to take the headaches out of owning a holiday rental property. We are fully licenced to provide this service and maintain a trust account for clients payments.

We will use the following advertising/ promotion sources [see Appendix 1 for timeline]:

1. Television ____________ 2. Radio ____________ 3. Internet (website) _____√______ 4. Direct Mail _____√______ 5. Personal Contacts _____√______ 6. Trade Association _____√______ 7. Newspaper ____________ 8. Magazines _____√______ 9. Yellow Pages _____√______ 10. Billboard ____________ 11. Other

• 3rd

party websites _____√______ • Alliances Domayne _____√______ • Beautiful Accommodation _____√______

The following are the reasons why we consider the media we have chosen to be the most effective: • Cost effective with satisfactory ROI and targeted to our various market

segments.

In summary, this approach provides for an ongoing adaptive marketing and promotion plan including, but not limited to:

• highly targeted print [pouch, postcards and selected print advertising] distributed to Travel Editors within the print, radio, and TV channels [as well as net based travel editors]

• Publicity campaigns to seek editorial coverage, directed to selected quality publications & travel guidebooks including:

o South Coast Style o Wentworth Courier. o Sydney Morning Herald o Highlife o Beautiful Accommodation o Greenwood Guides

• develop alliances to actively encourage referrals & recommendations from advocates of SCBA, [possibly incorporating a loyalty program in the longer term]. e.g.

o joint promotions with local attractions such as the Silos Restaurant

• develop electronic [website and “opt-in” email news bulletins] marketing strategies including:

o search engine optimisation of website to achieve better organic search rankings for strategic key phrases

o developing a reciprocal link strategy with south coast attraction businesses & other relevant websites

o using Google Adwords to attract targeted traffic through paid search techniques.

o new property availability news bulletins for potential guests with opt-in capability.

o research syndication opportunities with e.g. Beautiful Accommodation & Greenwoods travel guide books & websites.

• explore cost-effective ways to extend the range of SCBA’s marketing to provide exposure to the “in-bound” tourism market in the future.

BIBLIOGRAPHY:

• Moruya Boutique Accommodation Group In preparing this plan, reference has been made to an

unpublished research study into the Moruya Boutique Accommodation Sector which measured

demographics of the previous guest profiles over the year from 2002-2003.

• Australian Bureau of Statistics, Survey of Tourist Accommodation, 2002, cited in Shoalhaven –

Economic Impact of Tourism, Profile and statement of Economic Impact, y.e 31 Dec 2003,

ISSN 1035-144

• Tourism Research Australia, Survey Year ending June 2002-2003, cited in the Report

Shoalhaven – Economic Impact of Tourism, Tourism Shoalhaven.

• “See Australia” campaign, segmentation methodology, Graham Perry “A segmentation Appoach

to Sustainable Tourism”, September 2004.