Fill and Sign the Hotel and Motel Marketing Plan Form

Hotel and Motel Marketing Plan MARKETING VISION The ____________________ Hotel is _____________ (Name of City) premier luxury hotel and seeks nothing less than to transport visitors to a high-end cosmopolitan hotel setting, unlike anything that can be found in ___________ (Name of City) or elsewhere in the state. Luxury, aesthetics, and customer service are the hallmarks of the ___________________ Hotel. GOALS Personal Goals (for CEO):  Speak or take part in a panel at American Hotel and Lodging Association conference in 20____ ; and  Be asked to speak at more than 10 events in 20___. Business Goals:  Total annual revenue to exceed $10 million in 20____ and $11.5 million in 20____;  Average $ ___________per customer transaction to exceed $1,800 in 20____; and  Exceed 20,000 leads in 20____. Strategic Goals:  To obtain a 99% "highly satisfactory" or higher rating on customer surveys; and  To achieve Forbes five-star rating by 20___. Tactical Goals:  Hire new blog editor in 20____;  Hire new PR agency in 20____;  Target 10,000 individuals per year with direct mail; and  Hold 3 focus groups in 20___, 6 in 20____, 10 in 20____. Purpose This marketing plan will be the blueprint of ______________ Hotel's establishment as a five-star hotel that goes beyond meeting customer expectations. Even with the highest customer service and amenities, Forbes will only grant a five-star rating after a number of years of consistent service. The _________________ Hotel will devote itself to this consistency as well as finding new ways to surprise visitors with its hospitality in order to create experiences that are worth much more than its wealthy clientele pay for them. The _________________ Hotel believes that luxury must be a bit pleasantly unpredictable to be truly rewarding. Picture A visitor to the ___________________ Hotel expects a beautiful, high-end boutique hotel from the images they have seen online and what they have read about it. However, they are impressed from the beginning by the attentiveness of staff, including their almost constant question of "Is there anything else I can do to make your stay better?" At first, the visitor has no answer to this question, but as he or she comes up with ideas they discover that the staff finds a way to attend to them, even when they seem to be difficult tasks. Beyond this high level of customer service, the visitor finds a delightful gift in their room each evening of the stay. Finally, without even asking for it, the concierge offers to make reservations for the visitor and their colleagues at the restaurant he or she had previously found to be booked up. Guests leave the __________________ Hotel with the notion that the staff and management wield some kind of magic. Gap Dashboard The Gap Dashboard reflects the company's goals and CEO's personal goals which can be measured quantitatively. Once a month, the Gap Dashboard will be updated and reviewed in a marketing meeting between the CEO and Marketing Manager, along with details on gaps between the numbers. The two will examine both shortfalls and successes beyond plans in order to look at whether goals should be escalated. Gap Dashboard Year 1 Year 2 Year 3 Personal Speaking engagement requests 5 8 10 Other 0 0 0 Business Revenue $7,907,041 $10,175,183 $11,509,551 $______Per Customer Transaction $1,252 $1,693 $1,863 Leads 15,917 21,550 22,628 Tactical Individuals targeted by direct mail 10,000 10,000 10,000 Focus Groups 3 6 10 Strategic Customer satisfaction level at highly satisfactory 90% 96% 99% Forbes Star Rating 4 4 5 Ideal Customer Whether visiting ______________ (Name of City) for business or pleasure, some travelers are not satisfied with the predictability of chain hotels or the quaint charm (and unpredictability) of inns and bed and breakfasts. This ideal customer earns and has earned a great deal of money in his or her life and can afford the best any city has to offer. When traveling, this customer feels it is important to have new experiences which demonstrate the status he or she has achieved in life. Furthermore, if this customer misses such an experience he will judge that he has lost something, even if no one else knows. The type of lodging this customer desires is extremely comfortable, aesthetically beautiful, and features services which go above and beyond a four star hotel's offering. Room service, a full bathtub, fitness center, and Internet access are all prerequisites for this traveler. Their hotel of choice needs to offer a surprising level of luxury. Market Description The target market for the _________________ Hotel share most of the following characteristics:  Ages 35 to 60  Visiting _______________ (Name of City) from a large American city or Europe  Professional career, income over $100,000 or net worth over $1 million  Believe that experiences are as valuable as, if not more valuable than, material things  Feel entitled to luxurious experiences due to their success and hard work  Guard their free time jealously Remarkable Difference The ___________________ Hotel demonstrates its difference by finding ways to surprise their visitors with the hotel's luxury. The hotel will go beyond the normal amenities common to a five-star hotel designation by indulging the whims of visitors through their concierge service and room service, and by anticipating the needs of visitors. The core message of the __________________ Hotel is "Luxury that will surprise you." Differentiators The ___________________ Hotel is differentiated from other high-end hotels of _____________ (Name of City) through its focus on luxury, rather than Southern charm. However, this differentiation can be imitated over time. To keep a competitive advantage, the __________________ Hotel focuses on an ever-evolving suite of services. These include:  Room service which includes an extensive menu as well as products of all types that can be bought in ________________ (Name of City) or ordered  Concierge service which can offer exclusive experiences to visitors or indulge their whims on short notice  Surprise gifts each day of the stay tailored to an individual's interests, such as food items, candy, or books Core Strategy The core strategy of ___________________ Hotel's marketing is to project both its opulence and unwavering dedication to its mission or surprising visitors with its luxury. Internally, staff will be drilled with this mission so that they understand that excellent service is the highest art and not a lowly pursuit. Staff will be directed to seek out new ways to surprise and excite visitors. Staff training, covered within the marketing training section, will help staff understand this concept, although new hires will be chosen with an eye towards creativity as well as work ethic. Measurable results that will show that the business is achieving its goal will include customer ratings and customer reviews, press and industry reviews of the hotel, and the hotel's ability to maintain its level of pricing even in difficult economic climates. Core Branding Elements ________________ Hotel has cultivated and will continue to cultivate a brand image associated with dark, rich colors, punctuated by the dazzling brilliance of gold, lights, and mirrors. On its website and in marketing materials, these colors will be a rich purple and rich gold. The company has used and will continue to use a professional photographer to capture images of the hotel, its rooms and willing visitors (or actors) taking advantage of its services. The core message of "luxury that will surprise you" also serves as the tagline on all marketing materials and printed materials. This tagline must be added to new business cards as they are printed. Product/Service Innovation The __________________ Hotel seeks to convert individuals up the pyramid by offering them services along the way. Prospects (those who the __________________ Hotel targets as they fit the target market well) will be offered a guided virtual tour of the hotel by a live hotel employee. Prospects (those who visit the _________________ Hotel website or call or email to express interest) will, when appropriate, be offered smaller rooms at the lower end of the price spectrum so that they feel a lesser commitment when they come to stay. Customers (those who have visited the hotel once) will be offered package deals for multiple night stays, such as one night free after a three night stay. Premium customers (those who have stayed at the hotel more than once) will be offered access to the penthouse suite, an option that cannot be purchased by those who have only stayed at the hotel once. Champions (those who have stayed at the hotel more than twice) will be invited for a free weekend if they take part in a focus group session to discuss the hotel. Beyond the room offerings, a wide range of additional services and amenities will be offered, some with extra charge and some free with room rental. These include:  In-room dining  Concierge service  Complimentary gourmet continental breakfast and coffee  Fitness center  Indoor lap pool  Valet parking  Bag service  Business center (with reservation and additional fee)  Wireless internet (free throughout the hotel)  Restaurant and lounge  Board and meeting rooms (with reservation and additional fee) All of these services and amenities are available to all visitors at the ___________________ Hotel. Price Rationale The rooms offered include the following:  Queen ($200-$400/night)  King ($250-$450)  Deluxe King ($300-$500)  Extra Deluxe King ($350-$550)  Emperor ($400-$500)  One Bedroom Suite ($500-$700)  Presidential Suite ($600-$800)  Hospitality Suite ($700-$900)  Penthouse Suite ($900-$1100) The price ranges reflect the difference between peak and off-peak times of the year and week. This pricing model is similar to most hotels. The pricing is at the top for lodging options in Prospects, but this is consistent with the fact that the _________________ Hotel offers rooms to those who want something they cannot find anywhere else in Prospects. Marketing Materials __________________ Hotel uses a professional photographer and design firm to produce the following materials:  Website  Email newsletters  Direct mail - postcards and letters  Newspaper and magazine ads  Virtual tour presentation  Marketing kit for corporate business development The marketing kit will be customized towards pleasure travelers and business travelers by having separate sets of images, lists of services, case studies, and testimonials. The virtual tour will also be customized towards pleasure or business travel based on the interest of the prospect. The virtual tour will be scripted, although it will include room for interaction between the prospect and the tour guide as well as time for questions to be answered. Web Plan The ___________________ Hotel website is designed to offer an intimate look into the hotel and to guide visitors towards two potential next steps:  To set an appointment for a virtual tour (for corporate or private prospects)  To reserve rooms at the hotel (for private prospects) To these ends, the website is designed to answer all of the key questions which visitors would have about the rates, services, location, etc. of the hotel so that they are comfortable (and enticed) to visit. The website reservation system is designed to make reservations a simple and quick process. A confirmation email and personalized thank you note will be sent to everyone who makes an online reservation, along with an offer to speak directly to a customer service rep at the ___________________ Hotel should they have any questions or specific requests for their stay. The goal of this procedure is to show the prospect the individualized care taken by the ___________________ Hotel with every customer. Furthermore, it is an attempt to cut down on the number of customers who cancel their reservation before visiting the hotel. Social Media Plan A company blog (called "Surprising Luxury") will include the content from the periodic email newsletter about the meaning of luxury and hospitality, going beyond specific stories about the ____________________ Hotel to include ideas from all over the world and history. The editor responsible for this blog will seek out other content providers online which cover luxury services and luxury hotels. These sites will be asked to either syndicate the ____________________ Hotel blog or link to it in order to advertise its presence on the Web. The goal of the company blog will be to establish a reputation for the hotel's management as experts on luxury service. In addition to the posts which are sent out in the email newsletter, the blog will be updated every other day with some information relevant to the topic. Lead Generation Plan Lead generation will be through a number of means including:  National magazine and newspaper advertising  Online pay-per-click advertising around "hotel _______________ (Name of City) ” and related keywords  Customer referral program  Professional referral discount offers  Direct mail campaign to target market of high net-worth individuals in U.S. cities (5,000 individuals will be targeted with mailings, varying between postcards and letters, once a month for 6 months before switching to a new set of 5,000 names) The leads generated will be tracked in a professional hotel Customer Relationship Management program which can export information for mail merge purposes and import information from Internet entries. The program will track basic contact information, the source of the lead, the date of the lead, and any information from the online inquiry form, if used. The CRM system will also have fields for customer service including notes about additional services requested and provided, likes and dislikes of the customer, other personal information gleaned from conversation or observation. Advertising Media Tracking Kits Requested Advertising Medium Contact Name Contact # Distribution Cost/Ad Total CPM Luxury Travel magazine O. Dyssius 333-444-5555 TBA TBA TBA Travel and Leisure magazine L. Gulliver 541-541-5411 TBA TBA TBA NY Times Travel section M. Polo 666-666-6667 TBA TBA TBA Online pay-per-click U. Herz 123-456-7890 TBA TBA TBA Referrals __________________ Hotel strategy will lend itself well to referral marketing. To specifically request referrals from customers, the _________________ Hotel will offer to send visitors introductory discount offers by email or postal mail to any number of contacts provided by the visitor. This offer will be sent by email to past customers two days after their visit. By entering a list of email addresses or by providing mailing addresses, the hotel staff will send on these discounts noting who they are coming from. This will be a way for customers to advertise the fact that they have used the hotel and to share it with business and personal contacts, hopefully building those relationships in the process. Professional referrals will be sought from Fortune 500 businesses with offices in _______________ (Name of City) , the ________________ (Name of City) and state tourism boards, convention centers and meeting halls. These referrals will be sought through personal contact with these businesses by _____________________ Hotel business development staff and through mailing of the marketing kit and referral offer. Repeated touches with the specific contacts at these businesses will be continued through postcard and letter mailings, each making specific reference to the referral discount offer and the additional value which __________________ Hotel can offer their clientele, visitors and employees. Lead Conversion Plan Prospects (those who have expressed interest in the __________________ Hotel through some means but have not yet visited the hotel) will be cultivated through the following means:  Offered a virtual tour of the hotel at a convenient time for the prospect. The tour will focus on the beauty of the hotel, the high level of service offered, and the business and/or tourist attractions in _____________ (Name of City) and the surrounding area. An introductory offer will be given at the end of the tour.  Directed to the website for detailed information on room rates, making reservations, policies, services, etc.  Email newsletter - send once a month with information on _______________ (Name of City) events and tourism, new services at the hotel, a column on the meaning of luxury, and the introductory offers/virtual tour offer.  Those who have taken advantage of the virtual tour will also be sent a mailed introductory discount offer every other month. Service Experience Customer loyalty is won systematically at the __________________ Hotel by careful attention to assuring the quality of all services and to going beyond those basics to offer a customized surprise for each customer. Loyal customers will be treated to free stays when they attend a focus group for the purpose of learning more about them, leveraging their excitement to further excite newer customers, and to develop ideas to improve the hotel and its services. Loyalty Product/Service Offerings Loyal clients (called "champions") will be offered a free two-night stay from time to time if the individual agrees to take part in a three-hour focus group along with two to three first-time customers. This focus group will feature a gourmet lunch and will include a moderated discussion of questions about what the hotel is doing right, what customers like about the hotel, and where it can improve. The point of these focus groups are to engage champions, who can be expected to have highly favorable opinions of the ____________________ Hotel, to share their excitement with first-timers who have the potential to become champions themselves. These focus groups will be held three times in the next year, six times in the second year and ten times in the third year. First-time customers who take part (75% of the group) will be offered the free lunch and another complimentary service (such as limousine service, tickets to a show, etc.) for taking part. These focus groups will occur during dates which are already booked by the champion, who will be given a refund for two nights of the stay if they take part. First-time customers who are at the hotel at that time will be enlisted to take part. WOW Process Quality assurance is paramount to the success of the ___________________ Hotel. The following processes and practices are part of the quality assurance system:  Customers are to be asked if anything can make their stay better every time they speak with a staff member. Signs at reception declare that if an employee fails to ask the customer this question and to take steps to help them that they should call manager for help and a complimentary service.  Employees who are reported by customers to have failed to provide some needed help more than once will be put on probation and given a one month period to rectify the problem. It is not expected that this will happen and if it does, it is expected that the employee will be fired or quit on their own in most cases. Employees that are favorably mentioned specifically in customer reviews more than three times in a quarter will be rewarded with an additional quarterly bonus equal to 10% of their salary for that period.  The customer will be requested to fill out a customer feedback survey upon check-out. The form is a short, five question survey which the customer can complete while waiting at check-out. There will be a follow-up 2 days after check-out to discuss any issues or to receive clarification on answers, if needed.  All staff members will be provided with written guidelines pertaining to the cleanliness and preparation of all rooms and spaces, all interactions with customers, and all services provided. These guidelines will be revisited regularly and updates to the guide produced when necessary. Going beyond quality assurance to offer a true WOW to customers requires encouraging all staff to think beyond the written guidelines and to seek to understand the needs of customers more deeply. The hotel's concierges will be directed to find a specific way to surprise each client during their visit. The concierge staff will ask key questions about each customer's interests during the initial check-in process and using past information collected in the CRM database. The most creative and best reviewed surprises will lead to additional bonuses for concierge staff, based on the discretion of the customer service manager. An example would be to set up a horseback riding lesson for the daughter of a customer after overhearing her interest in going on a horse-drawn carriage ride. Marketing Calendar The marketing calendar includes both ongoing marketing activities which will become a routine (represented by the "marketing themes" of each month shown on the monthly schedule) and one-time development activities over the next year shown on the Milestones table. The marketing manager works with an outside advertising firm, PPC firm, PR agency, blog editor, and other service providers as needed to implement all marketing activities. The marketing manager will spend at least one hour a day on the marketing "theme" of the month to ensure that these major systems are reviewed every year. The marketing manager will also track marketing results on a weekly basis to judge key metrics against actual outcomes. Gaps will be shown in an Excel spreadsheet which pulls the actual results from the database. Monthly Months Marketing Theme 1 Customer referral program 2 Focus group program 3 Blog and email newsletters 4 Surprise ideas and system 5 Marketing kit 6 Website 7 Business development and referrals 8 Customer feedback and ratings 9 Marketing training 10 Surprise ideas and system 11 Virtual tour 12 Annual review and goal setting Milestones Advertising Start Date End Date Budget Manager Implemented by New print ad design 2/1/2010 2/28/2010 $2,000 Marketing Mgr Ad firm Start running new print ads 3/15/2010 4/15/2010 $0 Marketing Mgr Ad firm Pay-per-click campaign revision 1/15/2010 1/31/2010 $1,000 Marketing Mgr PPC company Total Advertising Budget $3,000 PR Start Date End Date Budget Manager Implemented by Hire new PR agency 2/1/2010 3/31/2010 $0 Marketing Mgr Marketing Mgr Renew press contact list 4/15/2010 4/30/2010 $2,000 Marketing Mgr PR agency Total PR Budget $2,000 Direct Marketing Start Date End Date Budget Manager Implemented by Design postcard mailing template 3/15/2010 3/31/2010 $2,000 Marketing Mgr Ad firm Design letter mailing template 4/15/2010 4/30/2010 $2,000 Marketing Mgr Ad firm Total Direct Marketing Budget $4,000 Web Development Start Date End Date Budget Manager Implemented by Hire blog editor 5/1/2010 5/31/2010 $1,000 Marketing Mgr Marketing Mgr Begin regular blog posts 6/15/2010 6/15/2010 $0 Marketing Mgr Blog Editor Virtual tour update and redesign 2/1/2010 2/28/2010 $5,000 Marketing Mgr Ad firm Total Web Development Budget $6,000 Other Start Date End Date Budget Manager Implemented by Plan first focus group 4/1/2010 5/31/2010 $1,000 Marketing Mgr Marketing Mgr Hold first focus group 6/15/2010 6/15/2010 $10,000 Marketing Mgr Marketing Mgr Total Other Budget $11,000 Totals $26,000 Critical Numbers The critical numbers of the business will be tracked through the following means:  Leads, testimonials, and referrals will be tracked through the CRM system. These will be entered automatically as the leads come over the Web and by hand by the customer service or sales person dealing with them otherwise.  Leads converted (through room reservations) are logged automatically in the CRM system, which doubles as an accounting software suite.  Marketing expenses are entered, as they are incurred, into the system by the accounting department.  All departments are required to make all entries within 24 hours of when they are incurred to keep the system up to date at all times. Sales Forecast Sales are currently higher in the category of introductory level rooms. As marketing efforts pay off over the next two years, unit sales for mid-level and premium level rooms are expected to increase relative to introductory level rooms. Room service sales are driven by room nights sold. Generally, every night of a premium room rental corresponds to a room service purchase, 75% of mid-level room rentals and 50% of introductory-level room rentals. Prices are expected to rise on average over the next three years as the business can command higher prices from customers. Sales are projected to rise towards full capacity (50 rooms x 365 nights per year = 18,250 room nights) but not reach more than 80% of this number. This is due to the fact that it is in the best interest of the hotel to not discount rooms so highly that they are all used at all times. Off-peak times will be slower, but the hotel will maintain its premium-level pricing for the most part through this method. Sales Forecast Year 1 Year 2 Year 3 Unit Sales Premium level room nights 3,183 4,187 4,564 Mid-level room nights 3,756 4,665 5,084 Introductory level room nights 4,024 4,521 4,928 Room service meals 8,013 9,946 10,841 Total Unit Sales 18,976 23,318 25,417 Unit Prices Year 1 Year 2 Year 3 Premium level room nights $900.00 $925.00 $950.00 Mid-level room nights $700.00 $725.00 $750.00 Introductory level room nights $500.00 $525.00 $550.00 Room service meals $50.00 $55.00 $60.00 Sales Premium level room nights $2,865,083 $3,872,892 $4,335,546 Mid-level room nights $2,629,516 $3,381,796 $3,813,266 Introductory level room nights $2,011,813 $2,373,477 $2,710,285 Room service meals $400,629 $547,018 $650,454 Total Sales $7,907,041 $10,175,183 $11,509,551 Direct Unit Costs Year 1 Year 2 Year 3 Premium level room nights $162.00 $166.50 $171.00 Mid-level room nights $140.00 $145.00 $150.00 Introductory level room nights $125.00 $131.25 $137.50 Room service meals $20.00 $22.00 $24.00 Direct Cost of Sales Premium level room nights $515,715 $697,121 $780,398 Mid-level room nights $525,903 $676,359 $762,653 Introductory level room nights $502,953 $593,369 $677,571 Room service meals $160,252 $218,807 $260,181 Subtotal Direct Cost of Sales $1,704,823 $2,185,656 $2,480,804 Marketing Expense Budget The marketing expense budget divides expenses into their major categories:  Advertising represents print and online external ads.  Direct mail represents the postcard and letter mailing campaign to high net worth individuals. The mailings will vary between the two formats each month and the expense will fluctuate a bit as the letter mailings are more expensive.  Focus groups are costly as the discounts and free services offered to customers are logged as an expense on the books, as is the direct cost of the lunch provided.  Web development includes website maintenance and hosting, virtual tour development, email newsletters, and the company blog.  Marketing training reflects the cost in time and materials of orientation and ongoing training and exams for staff.  Quality assurance reflects the cost in time and materials to review customer issues and ratings, as well as the bonuses from the quality assurance program. Total expenses will increase as some activities, like the focus groups, are ramped up, and as the cost of doing business increases with inflation. In general terms, advertising and direct mail represent the expense of lead generation, focus groups and Web development represent the expense of lead conversion, and marketing training and quality assurance represent the expense of the service experience. Marketing Expense Budget Year 1 Year 2 Year 3 Advertising $60,000 $63,000 $66,150 Direct Mail $75,000 $78,750 $82,688 Focus Groups $30,000 $60,000 $80,000 Web Development $60,000 $63,000 $66,150 Marketing Training $12,000 $12,600 $13,230 Quality Assurance $24,000 $25,200 $26,460 ------------ ------------ ------------ Total Sales and Marketing Expenses $261,000 $302,550 $334,678 Percent of Sales 3.30% 2.97% 2.91% Key Marketing Metrics The key marketing metrics will be reported each month. The marketing manager will create this report out of the CRM system and share the results with the CEO in the monthly review meeting. Leads (including all referrals, website queries, and attendees of the virtual tour) are expected to grow at a steady rate. Lead conversion is expected to increase as the hotel establishes its name and preeminence in the ______________ (Name of City) area. The average dollars spent per customer transaction is between one and two nights and will grow as more customers stay two nights or longer and move to higher priced rooms in the coming two years. The ability of the company to charge higher average prices for its rooms as capacity is better utilized will also drive this number up. It is estimated that 20% of leads will be from referrals which will be generated from customers and corporate relationships. PR mentions will be tracked by the PR agency and they will provide a report on this data to _________________ Hotel once a month along with all clippings or copies of mentions. Testimonials will be derived from the best 10% of customer comments. These customers will be asked to expand their comments into a testimonial after their visits in a follow-up email. These customers will be offered a gift of _________________ Hotel chocolates or other sweets as an incentive for expanding their comment into a testimonial. Key Marketing Metrics Year 1 Year 2 Year 3 Revenue $7,907,041 $10,175,183 $11,509,551 Leads 15,917 21,550 22,628 Leads Converted 16.75% 20.00% 21.00% Avg. Transactions/Customer 1.00 1 1 Avg. $ /Customer $1,252 $1,693 $1,863 Referrals 3,183 4,310 4,526 PR Mentions 191 300 315 Testimonials 270 345 380 Focus Groups 3 6 10 Marketing Training Game All staff interact with customers in one way or another. Even kitchen staff, who may never see the guests they serve, will prepare food according to the ___________________ Hotel's ideal. All staff members will receive specific technical training, observation, and testing over the course of two weeks. During this time they will also be led in ten one-hour marketing sessions covering the following material:  Core message and what it means to their job  Case studies of how the hotel has fulfilled its mission in the past  The ideal target client description, characteristics, and behaviors  The current marketing materials and campaign  The virtual tour Even staff who will not be directly involved in using the marketing materials and virtual tour need to understand how the hotel is represented in these external messages. These sessions will be led by the marketing director and will be held with multiple new staff members when possible. Routine education will include quarterly testing on the company's marketing, core message, and how it plays out in real-life situations. To prepare for these quarterly tests, marketing meetings will be held with all staff twice a month to keep a direct connection between the marketing manager and staff. The tests will be administered in a thirty-minute session to multiple staff members at one time to insure their continued understanding of the hotel's marketing vision and tactics. Appendix Sales Forecast Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Unit Sales Premium level room nights 0% 200 210 221 232 243 255 268 281 295 310 326 342 Mid-level room nights 0% 250 260 270 281 292 304 316 329 342 356 370 385 Intro- ductory level room nights 0% 300 306 312 318 325 331 338 345 351 359 366 373 Room service meals 0% 538 558 579 602 625 649 674 700 728 756 786 817 Total Unit Sales 1,288 1,334 1,382 1,433 1,485 1,540 1,596 1,655 1,717 1,781 1,848 1,917 Unit Prices Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Premium level room nights $900.00 $900.00 $900.00 $900.00 $900.00 $900.00 $900.00 $900.00 $900.00 $900.00 $900.00 $900.00 Mid-level room nights $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 Intro- ductory level room nights $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 Room service $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 meals Sales Premium level room nights $180,000 $189,000 $198,450 $208,373 $218,791 $229,731 $241,217 $253,278 $265,942 $279,239 $293,201 $307,861 Mid-level room nights $175,000 $182,000 $189,280 $196,851 $204,725 $212,914 $221,431 $230,288 $239,500 $249,080 $259,043 $269,404 Intro-ductory level room nights $150,000 $153,000 $156,060 $159,181 $162,365 $165,612 $168,924 $172,303 $175,749 $179,264 $182,849 $186,506 Room service meals $26,875 $27,900 $28,968 $30,081 $31,241 $32,450 $33,710 $35,023 $36,392 $37,820 $39,309 $40,861 Total Sales $531,875 $551,900 $572,758 $594,486 $617,122 $640,707 $665,282 $690,892 $717,583 $745,403 $774,402 $804,633 Direct Unit Costs Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Premium level room nights 18.00% $162.00 $162.00 $162.00 $162.00 $162.00 $162.00 $162.00 $162.00 $162.00 $162.00 $162.00 $162.00 Mid-level room nights 20.00% $140.00 $140.00 $140.00 $140.00 $140.00 $140.00 $140.00 $140.00 $140.00 $140.00 $140.00 $140.00 Introductory level room nights 25.00% $125.00 $125.00 $125.00 $125.00 $125.00 $125.00 $125.00 $125.00 $125.00 $125.00 $125.00 $125.00 Room service meals 40.00% $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 Direct Cost of Sales Premium level room nights $32,400 $34,020 $35,721 $37,507 $39,382 $41,352 $43,419 $45,590 $47,870 $50,263 $52,776 $55,415 Mid-level room nights $35,000 $36,400 $37,856 $39,370 $40,945 $42,583 $44,286 $46,058 $47,900 $49,816 $51,809 $53,881 Intro- ductory level room nights $37,500 $38,250 $39,015 $39,795 $40,591 $41,403 $42,231 $43,076 $43,937 $44,816 $45,712 $46,627 Room service meals $10,750 $11,160 $11,587 $12,032 $12,496 $12,980 $13,484 $14,009 $14,557 $15,128 $15,723 $16,344 Subtotal Direct Cost of Sales $115,650 $119,830 $124,179 $128,705 $133,415 $138,317 $143,420 $148,733 $154,264 $160,023 $166,021 $172,000267 Marketing Expense Budget Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Advertising $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,0000 Direct Mail $5,000 $7,500 $5,000 $7,500 $5,000 $7,500 $5,000 $7,500 $5,000 $7,500 $5,000 $7,5000 Focus Groups $0 $0 $0 $0 $0 $10,000 $0 $10,000 $0 $0 $10,000 $1.0000 Web Development $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,0000 Marketing Training $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,0000 Quality Assurance $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,0000 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total Sales and Marketing Expenses $18,000 $20,500 $18,000 $20,500 $18,000 $30,500 $18,000 $30,500 $18,000 $20,500 $28,000 $20,5000 Percent of Sales 3.38% 3.71% 3.14% 3.45% 2.92% 4.76% 2.71% 4.41% 2.51% 2.75% 3.62% 2.55% Key Marketing Metrics Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Revenue $531,875 $551,900 $572,758 $594,486 $617,122 $640,707 $665,282 $690,892 $717,583 $745,403 $774,402 $804,633 Leads 1,000 1,050 1,103 1,158 1,216 1,276 1,340 1,407 1,477 1,551 1,629 1,7100 Leads Converted 15.00% 15.00% 15.00% 16.00% 16.00% 17.00% 17.00% 17.00% 18.00% 18.00% 18.00% 19.00% Avg. Transactions/Customer 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Avg. $/Customer $1,000 $1,040 $1,082 $1,125 $1,170 $1,217 $1,265 $1,316 $1,369 $1,423 $1,480 $1,5309 Referrals 200 210 221 232 243 255 268 281 295 310 326 3402 PR Mentions 10 10 10 10 12 14 15 17 20 23 25 25 Testimonials 15 16 17 19 19 22 23 24 27 28 29 32 Focus Groups 0 0 0 0 0 1 0 1 0 0 1 0 Gap Dashboard Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Personal Speaking engagement requests 0 0 0 0 1 1 1 0 1 0 1 0 Other 0 0 0 0 0 0 0 0 0 0 0 0 Business Revenue $531,875 $551,900 $572,758 $594,486 $617,122 $640,707 $665,282 $690,892 $717,583 $745,403 $774,402 $804,633 $_____Per Customer Transaction 0 0 0 0 0 0 0 0 0 0 0 1,252 Leads 1,000 1,050 1,103 1,158 1,216 1,276 1,340 1,407 1,477 1,551 1,629 1,710 Tactical Individuals 5,000 0 0 0 0 5,000 0 0 0 0 0 0 targeted by direct mail Focus Groups 0 0 0 0 0 1 0 0 1 0 1 0 Strategic Customer satisfaction level at highly satisfactory 0 0 0 0 0 0 0 0 0 0 0 90% Forbes Star Rating 0 0 0 0 0 0 0 0 0 0 0 4