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RESORT

Marketing Plan

1 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
.2. .Situation
. . . . . . . . Analysis
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0 . 2.1. . . . . . . Market
. . . . . . .Summary
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. . . . . . . . Market
2.1.1 . . . . . . .Demographics
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2.1.2 . . . . . . .Needs
Market . . . . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 2
2.1.3 . . . . . . .Trends
Market . . . . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 3
2.1.4 . . . . . . .Growth
Market . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . 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 . . . . . to
Keys . . Success
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2.6 . . . . . . .Issues
Critical .. . ... . .. .. .. . .. .. .. . .. . .. .. .. . .. .. . .. .. .. . .. . . .. .. .. . .. .. . .. .. . .. .. ... . .. . .. . 6
2.7 . . . . . . . . .Results
Historical . . . . . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . . . . . 7
2.8 . . . . . . . . . . . . . . . . .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Macroenvironment 7
3. Marketing . . Strategy
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0 . 3.1. . . . . . . Mission
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3.2 . . . . . . . . . Objectives
Marketing . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
3.3 . . . . . . . . Objectives
Financial ............................................................................ 8
3.4 . . . . . . Marketing
Target . . . . . . . . .............................................................................................................................. . . . . . . . 8
3.5 . . . . . . . . . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . .
Positioning 9
3.6 . . . . . . . . . Mix
Marketing . . . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . . . . . . . 9
. . . . . . . . Services
3.6.1 . . . . . . . .and . . .Service
. . . . . . .Marketing
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3.6.2 . . . . . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .
Pricing 9
3.6.3 .............................................................................
Promotion 10
4. Financials, Budgets, . . and
. . . . Forecasts
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0 . 4.1. . . . . . . Sales
. . . . . Forecast
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4.2 . . . . . . . .Forecast
Expense . . . . . . .................................................................................................................... . . . . . . . . . . . . 11
4.3 . . . . . . . Sales
Linking . . . . .and . . . Expenses
. . . . . . . . to . . .Strategy
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4.4 . . . . . . . . . . . Margin
Contribution ......................................................................... 12
5. Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
0 . 5.1. . . . . . . Implementation
. . . . . . . . . . . . . Milestones
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5.2 . . . . . . . . . Organization
Marketing . . . . . . . . . . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . . . 13
5.3 . . . . . . . . . . . Planning
Contingency . . . . . . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . . . . . 13
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The Cape Cabo Resort and Timeshare. Mexico. A Cruise Ship on the Beach in sunny Mexico where the Whales come to replenish. is representative of other five star quality resorts and timeshares of the World. and the extensive range of comprehensive business facilities available in luxurious settings. This is key in developing the relationship beyond an initial stay and evidences our added value in relation to competitive properties in the vicinity. Differentiating the type of vacation and business service offered. Baja California Sur. The Cape Cabo Resort and Timeshare. 2. Mexico has 200 exclusive rooms at the Cape Cabo Resort. both inside the rooms and within the resort and timeshare’s facilities. Also synonymous with the Cape Cabo Resort and Timeshare are the high level of personal service guests receive. offering 200 exclusive rooms. The timeshare exchange properties range from three to five star plus categories. time and again. The Cape Cabo Resort and Timeshares properties will be renowned for their convenient and strategic locations within the World. Baja California Sur. 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. Target business segments include double income market gay men and fishing enthusiasts from the United States and throughout the World. from that of the competition. They appreciate being called by name when they arrive. . We offer our guests the most up-to-date technical facilities.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. 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. 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. Key to our business success is the level of customer loyalty and repeat business we receive on an annual basis. but will attract frequent travelers. will assist not only in building the Cape Cabo Resort and Timeshares as a whole. Our key clients are from the niche double income clients originating from both international and United States markets. All Cape Cabo Resort and Timeshares are boutique properties. where there is less personal recognition. Baja California Sur. It is an all inclusive resort. and having staff remember their specific requirements. 2. Cape Cabo Resorts must therefore continue to deliver on its promise and values. at affordable rates.0 Executive Summary The Cape Cabo Resort and Timeshare. 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. who require a higher level of personal service and recognition than they can receive at competitive five star properties in Mexico. Mexico must focus on delivering an exemplary service. 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.1.0 Situation Analysis The Cape Cabo resorts and timeshares will participate in the world's largest International resort and timeshares exchange company in the world.

Target Markets Gay Community Fishermen General Population Table: Market Analysis Market Analysis Potential Growth 2008 2009 2010 2011 2012 CAGR Gay Community 14% 4. Awareness levels were highest amongst small.102. . Based on research carried out in 2001.860.00 1.0 39. Market Demographics: The community is made up predominantly of households having two to four children.376.0 31.215. who had utilized the resort and timeshare’s facilities either for visiting business guests.39% 2.50 5.0 35.250. relaxed niche environment within which to vacation or to conduct their business.00% Total 7.387.00 6.1 Market Demographics Market Geographics: Notown.6 5.562.00 4.00 7.00% General Population 5% 25. conference facilities and catering business functions.384. with at least one parent/guardian having attended college.560.50 1.940.000.157. and level of recognition that they will come to rely upon. either at home or away from home.64 20. This acts as a means of investing in.0 37. which has had a presence in the city for 15 years.049.899. Washington.1.0 27. USA is a suburb of Seattle. despite the potential cost savings involved. There is also a strong sense of community and a high level of awareness as regards to caring for the environment.8 7.5 28. We seek to provide our guests with an exemplary personal service.000. over and above the standard of other facilities and affordable rates. more than 68% of the population had some awareness of the Cape Cabo Resort and Timeshare. This attitude supports the brand principles of the Cape Cabo Resort and Timeshare. or for their own functions.000.2 Market Needs The Cape Cabo Resort and Timeshare offer value and benefits to our clients. and many family-run enterprises have been prospering for generations. and is well supported by local business requirements for rooms.277.0 26.76 8.39% 30.01% Fishermen 5% 1. be remaining loyal to long standing relationships with customers and suppliers.00 1.000. with a population of 150.000.6 30. rather than shifting alliances to large 'newcomer' suppliers. We provide our guest with a luxurious.050.296.to medium-sized businesses with 20 or more employees. Market Behaviors: Businesses in the area choose to support one another wherever possible. 2.1. and supporting the community structure.62 1. Market Psychographics: There is a strong 'small business' ethic in the community.

We expect this to be the largest growing segment with a growth rate of about 7%. International individuals from outside the United States represent the third and smallest identifiable segment. Local resorts have operated at occupancy levels in excess of 90% for the past several years except for the two month rainy season. Located on the beaches of the Sea of Cortez only 2 hours away from Los Angeles it provides an excellent short term. value for their money and reliability in supplying them with the support they need. Their current income spending on travel and vacations are $64 Billion per year. They will be attracted to the timeshare units because of the same technological needs. 1 week or long term vacation resort. well maintained resort and living environment. when they need it. Cape Cabo LLC offers timeshare units that provide quality timeshare and home ownership. Mexico in close proximity to the USA provides an ideal timeshare opportunity and vacation resort. but will also be attracted to the comfortable. . and we want to stay an integral part of that community. These individuals will be the most likely to desire the technological amenities that our company offers. more impersonal competitors. Avid fishermen will continue to be drawn to the Baja California Sur. Cape Cabo's largest market segment in the State of California will be individuals and couples of Southern California. Professionals are another large segment. as regards traveling in both domestic and international markets. Proximity and quality will entice this segment which we expect to grow at a rate of 5%. it has had a significant affect on last year's result and consequent projections for the future.An environment which they cannot find at our larger. Last year the Gay market spent more than $64 Billion in travel and entertainment. Although the level of room business outside the USA appears to be increasing again. but contain the second highest growth rate. Our guests need to know that they can develop a relationship with the resort and timeshares that will ensure efficiency. We expect this segment to grow at a rapid rate. 2. The Gay market transcends these figures in that they continue to travel outside of the USA.3 Market Trends Market trends: As a result of various security issues. The Cape Cabo Resort and Timeshare operates in a country with a very strong sense of community. Mexico area where fishing excels.1. there has been a significant drop in guests traveling outside the USA.

All inclusive. Focusing in on niche double income market of 5 star quality resort and timeshare. Growth is anticipated to continue at a steady pace inline with the activities of the past 3 years. exemplary service and quality. •Style: strong. participative culture. and contingency plans formulated in order to deal with threats presented by the environment. •Cape Cabo Strength: identified brand for niche market values well represented engendering loyalty amongst existing and new guests. •Shared Values: clear and well communicated.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%.00% 15. Recent world events have not caused a reduction in the growth rate for this niche market.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.00% 5. Organizational strengths must be leveraged in order to capitalize on external opportunities as they arise.2. •Skills: diverse range of service skills within management and staff. •Reputation: a strong reputation within the niche market. We must work to improve our areas of weakness. A well trained team who are proud of their resort and timeshares and respect and promote the brand values.1 Strengths The Cape Cabo Resort and Timeshare's strengths can be identified as follows: •Strategy: established differentiation strategy. decentralized structure. •Structure: flat. local market and corporate and travel trade markets for reliability.1. . Target Market Growth 20.00% Gay Community Fishermen General Population 2. 2.00% 0.00% 10. •Staff: specialized and experienced staff that is motivated and highly skilled.2.

as of 2003 there were close to 5. daily rates $140 per •Club Atlantis Vallarta: a 4 start all inclusive resort.3 Opportunities The Cape Cabo Resort and Timeshare's opportunities can be seen as: •Market: rapid growth after a period of initial start up. in a small but luxurious environment. •Competitors: no direct competition exists at present. global brand to enter the market with a similar product. such as high speed Internet access and laptop links upgraded decor and furnishings. 6.gob. room rates $150 per night •Pueblo Bonita: 4 star resort.500 timeshare resorts worldwide with sales of $9.mx. 2.4 Threats Threats to the Cape Cabo Resort and Timeshare have been identified as: •Market Entry: potential for a competitive.7 million people own timeshares in 195 countries. •Substitutes: fully furnished condo apartments offering lower daily rates in Cabo San Lucas.3 Competition Although no direct competition exists. room rates $140 per night •Fiesta Americana Grand Los Cabos: 4 star resort.2. Gay couples are spending more than $54 Billion is travel and entertainment in 2003. •Systems: formal systems result from the detail oriented work and environment.S per week for a 30-year usage plan. It took many years for the industry to evolve into the respected component of the leisure travel market that it is today. Current Timeshare Pricing The Mexican timeshare phenomenon began in Acapulco in the 1970s. •Facilities: all rooms will be 5 Star quality and contain top level technical equipment. •Suppliers: strong. •Westin Regina: 4 star resort. According to market researchers Ragatz Associates.2. within local and national markets.profeco. long-term relationships established with suppliers. 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.2.2. Interdepartmental communications could be improved. •Staff: seasonal turnover requires ongoing training and orientation of new staff. The global average price was $10.2 Weaknesses The Cape Cabo Resort and Timeshare's weaknesses can be identified as: •Strategy: differentiation strategy needs to be more clearly communicated externally. And. but gained a bad rap due to an unregulated industry with plenty of hustlers and no control. in terms of the five star 'boutique business property' niche. Key competitors have been identified as: •Dune Cabana: 5 star resort and timeshares. that year alone.S. . claiming 40% of the Latin American timeshare market. •Guest Dependency: repeat business based on personal service and quality. daily rates are 69% higher than Cape Cabo Resort and Timeshare luxury rate. •Economy: continued growth for niche market 2. room rates $295 per night. 2.600 U.4 billion U.

although somewhat less focused. Mexico. Fishing and Vacationing second to none in Mexico. 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. Concentrate on California. 2. our high staff turnover and training requirements due to seasonal fluctuations. large 5 star properties in the Mexico.5 Keys to Success •Continue to develop ongoing relationships with frequent and new guests.75% 13. 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.179.000 Pueblo Bonito Mazatlán México $13. •Continue to develop and implement a strong communications plan in both national and international markets. Western USA states.000 Club Casa Dorada Cabo San Lucas México $16. 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 $196.000 Krystal Internacional Puerto Vallarta México $15.50% Total $1. Strategically located on the beach in Baja California Sur.000 Los Cabos Golf Resort Cabo San Lucas México $28. •Facilities that include Business.50 6.000 Palace Resort at Moon Palace Cancun. Mexico $42. a short distance from Cabo San Lucas.6 Critical Issues We have many strengths including our differentiation strategy.000 Mayan Aplace Nuevo Vallarta Nuevo Vallarta México $29.' •Staff that have a strong customer-service ethic. •Hosting 4 Annual International Festivals (White Party) •Identify new markets for our services. 2. Our weaknesses involve the need to communicate our strategy more clearly in the external environment.000 Pueblo Bonito Cabo San Lucas México $26. . our flat structure and highly skilled and well trained staff. Timeshare Sales Club Casa Dorada Cabo San Lucas México $17.4 Services Cape Cabo resort and timeshares provides guests with an alternative to the impersonal.000 Hacienda del Mar Cabo San Lucas México $24. •Luxurious rooms that offer a sense of doing business from 'home.000 These properties offer similar facilities.00 40. •Continue ongoing staff training and skill development to ensure the highest standards of service.00% 2. our property enables our guests to be a part of the upper scale community and yet in an environment of calm and professionalism.50% 81.

the Gay market or Double Income No Kids (DINK) is flourishing with spending more than $54 Billion last year in entertainment and travel. presenting the resort and timeshares as a supportive member of the community and participating in significant local events to assist in developing ongoing cooperation. The areas that have produced the best results have been: •Product: high-quality facilities accompanied by exemplary personal service. •Promotion: primary focus has been on mass communication via print ads in trade publications and on the Internet. 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. •Place: product and service information are sold to the guest via personal selling. 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. 2. •Continue to be perceived as a supportive member of Fishermen worldwide. This will require a high level of investment. 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. develop close working relationships with our customers and suppliers and to identify the needs of our guests in an effective manner. Growth will take place by targeting new areas of business within both local and national communities. advertising and the Internet. differentiated from competition inline with the overall brand strategy have proven to be a successful approach generating high levels of repeat business. •Retaining levels of repeat business and developing further customer loyalty in a competitive market. •Price: pricing strategy has been consistent with the differentiation objective. . 2. which is where our added value differentiation strategy comes into play. However. •Technological: the installation of 'on board' room reservations systems on certain aircraft. direct mail campaigns to existing and prospective clients and personal selling in the local market.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. assures repeat business and good working relationships. Critical issues for the Cape Cabo Resort and Timeshares include: •Continuing to differentiate from our competition and offering added value to our guests. Public relations plays an important role in the marketing mix.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. •Continue to be perceived as a supportive member of the Baja California Sur community. to provide added value for a reasonable rate as opposed to discounting and devaluing our products and services. •Attract new market sectors outside California in niche market. Our marketing strategy will allow us to communicate our brand values. Continued differentiation and growth are two goals we have set for ourselves. as they do not possess the infrastructure to support under-performing properties as the larger chains do. will require a systems integration with the resort and timeshares group's own central reservation system. Although recovery is well underway. •Economic: the recent recession due to 9/11 has seen many smaller business-orientated resort and timeshares chains go into liquidation. 3.8 Macroenvironment The external. •Social: the trend towards cost effective travel leads resort and timeshares guests to seek more value for money. direct marketing. Personal selling provides the means to develop relationships within the local community and generate high levels of corporate activity through the business community. Delivery channels include travel agents and international reservations systems. •Continue to be perceived as a supportive member of the DINK market.7 Historical Results Marketing activity for the Gay niche market in previous years has produced positive results.

4 Target Marketing Our primary targets continue to be double income (DINK) clients to Cape Cabo Resort and Timeshares from the following states. 3. Delivery channels include travel agents and international reservations systems. We seek to deliver on our promise of value and quality above all else. •Western United States. Cape Cabo will be an ideal spot to vacation. loyalty and encouragement.000. •Keep payroll expenses down within the workforce.000. •Accomplish growth within the given budget $50. These segments are also easily reached through local newspapers and publications. 3. It is essential for Cape Cabo LLC patrons to understand that their needs are our priority. as well frequent open house displays.3 Financial Objectives •Increase overall room revenue by 30% on the past year.2 Marketing Objectives •To continue to communicate our strategic objectives to our target niche markets effectively. 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. . advertising and the Internet. We provide a quality resort and timeshares experience where guests are valued.6 Marketing Mix Place: product and service information are sold to the guest via personal selling. This will be the focal point of all our marketing and advertising efforts. respected and their business is truly appreciated. strategically located and offering a high level of personal service. 3. •Expand our markets and identify new markets for our product and services. 3. 3.3. direct marketing. We value our place in the community and will work to develop those relationships and to respect and protect our environment. •Florida •Texas We believe that our unparalleled level of quality and technological amenities put Cape Cabo LLC into a niche of its own. •New York. •To accomplish our growth targets within the given time and budget. •To provide a positive resort and timeshares experience to all our guests. Our focus is on offering our guests added value and differentiating ourselves in our levels of personal service. double income niche traveler's resort and timeshares.5 Positioning The Cape Cabo Resort and Timeshare is positioned as a five star plus. where there are large segments and advertising segments for the nice community: •California.1 Mission The Cape Cabo Resort and Timeshare is dedicated to providing its guests with the highest quality of service and standards. The target market is currently spending more than $54 Billion this year for travel and vacations.

Our marketing expenses after initial start up will equate to approximately 1% of the overall revenue. Our Baja location is a distinct advantage for sales in California.2 Pricing Pricing strategy has been consistent with the differentiation objective.000.1 Services and Service Marketing Product: high quality facilities accompanied by exemplary personal service. New York and Florida. Public relations activities will continue to play an important role in the marketing mix. Direct mail campaigns to existing and prospective clients will increase as a cost effective means of targeted campaigning. 3.6. to provide added value for a reasonable rate as opposed to discounting and devaluing our products and services. food and entertainment.00 per person. • The Cape Cabo Resort and Timeshares $22.00 Timeshare sales are based upon lifetime occupancy all inclusive of lodging. 4. are per night. 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.6. Room rates quoted are net of tax and 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. per room with all meals and entertainment included: Cape Cabo Resort • $225.6. Chicago. 4. For 2006 we plan to internally develop a timeshare sales brochure and package for the niche market. double occupancy.000 during our first year.3 Promotion Promotion: primary focus will remain on mass communication via print ads in trade publications and on the Internet.3. •single supplement $50. 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. Western USA.0 Financials.000.500 3. Sales are anticipated to achieve revenue of more than $12. and Forecasts Our annual marketing budget is in excess of $100. which is a reasonable assumption for the last few years in Mexico. The focus will be a 5 star quality living and vacationing. We can attract high income clientele than any of our competitors . Budgets. presenting the resort and timeshares as a supportive member of the community and participating in significant local events.1 Sales Forecast Our sales forecast assumes minimum change in costs or prices.

237.600.000 4.00 Vacation Fractional Ownership Sales $22.50 $18.213.000 Corporate Deluxe 40 4.00 $9.000 Subtotal Direct Cost of Sales $791.070.000 Corporate Double $1.250.000 9.000 $3. $22.250 $2.5 $90.000.500 .00 $22.485 $85.00 Corporate Suite $9.000 $4.710 $85.225 Corporate Suite 12 500 500 Total Unit Sales 582 26.000.000 $1.000 Vacation Fractional Ownership Sales $3.00 Direct Cost of Sales 2008 2009 2010 Corporate Single $1.000 $40.500 Corporate Suite $4.750 $5.00 Vacation Fractional Ownership Sales $4.00 $325.50 $10.012.000 $2.00 $9.112.750 $28.500 $90.00 $9.00 Corporate Suite $350.00 Sales 2008 2009 2010 Corporate Single $41.00 $275.500.16 $18.500.000.000 Vacation Fractional Ownership Sales $787.0 $4.000 Total Sales $4.000 Corporate Single Corporate Double $1.50 $10.475.00 $400.300.00 $250.000 $140.00 $450.00 Corporate Double $9.50 $10.000 Corporate Deluxe $12.000 9.000.500.500 Direct Unit Costs 2008 2009 2010 Corporate Single $9.000 Corporate Double $76.500.200 $200.00 $400.200.50 $10.050.250.000 $225.00 $300.000 Corporate Suite $0 Table: Sales Forecast Sales Forecast Unit Sales 2008 2009 2010 Corporate Single 165 9.000 Vacation Fractional Ownership Sales 175 4.500.500 28. Monthly Sales Forecast $2.062.000 $148.937.00 $450.000 Corporate Deluxe Vacation Fractional Ownership Sales $500.000 $1.725 Unit Prices 2008 2009 2010 Corporate Single $250.500 Corporate Suite $108 $4.000 $28.00 Corporate Double $400.00 $9.000 Corporate Deluxe $360 $38.500.000 Corporate Double 190 9.500.00 Corporate Deluxe $300.000 $1.500 $90.000 6.00 Corporate Deluxe $9.00 $4.9 $97.

000 $325. Overall.3 Linking Sales and Expenses to Strategy Our marketing expense is structured to reflect the corporate strategy differentiation.000 Print Advertising Internet Advertising $40.000 Public Relations $165. 4. Direct mail activity builds our targeted customer database.000 $80.000 $1. Conventions.000 $1.2 Expense Forecast Marketing expenses are projected to be approximately from 10% to as low as 1% of overall annual revenue.000 Other (Travel. ------------ Total Sales and Marketing Expenses $550. Public relations expenses cover PR events. but on increasing the size of the database with prospective customer information.000 -----------. The initial costs are high relative to the maintenance costs involved after the websites' creation. and strategic links with car hire.95% 4.000. 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.000 $35.420.000 $35. . 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.250 $118.06% 79.000 Internet Advertising $30. Similarly. Monthly Internet advertising expenses include banner ads.000 $120.71% 0.56% 79.000 $1.000 Contribution Margin / Sales 67.000 Other (Travel.729. Meetings) $195.787 $77. airline and destination management companies' websites to drive business to the resort and timeshares.455. -----------.98% Contribution Margin $2.000 $300.51% 1.000 $300.000 $60. Meetings) $0 Table: Marketing Expense Budget Marketing Expense Budget 2008 2009 2010 Print Advertising $160. the percentage of total revenue required to support the marketing expense is considered a moderate amount.376.000 Percent of Sales 13.000 $1.000 Public Relations $20. 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. participation at local functions and sponsorship funds. not only in terms of improving the quality of the data we currently hold. the development of an in- house brochure(s) will incur higher start-up expenses than maintenance costs after the initial publication. 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.000 people attend. Monthly Expense Budget $100. Conventions.660.000.

000 $1.4 Contribution Margin Contribution margins should increase due to: •Differentiation/focus strategy increases ability to specialize.000 $1.000 $400.000 Sales $800. •Maintenance of expenses within specified levels.400.000 $800.000 $1.000 Expenses $600. Expenses Monthly $1. •Increased efficiency in capacity utilization.800.000 $200.000 $1.000. Sales vs. •Economies of scale due to increased purchasing efficiencies.200.600.000 $1.000.000) Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun .400.000 $1. Contribution Margin Monthly $1.000 $600.000 $200.000 $0 ($200.000 $0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 4.200.000 $400.

------------ Total Sales and Marketing Expenses $550.000 $35.98% Contribution Margin $2. in terms of increasing overall revenue as a result of differentiating our products and services from the competition.0 Controls Our marketing plan is structured to enable us to achieve the strategic goals we have set for ourselves.500 Sean Marketing Public relations functions to 10/1/2009 9/30/2010 $0 Mary PR Evaluate sponsorship requests 3/1/2009 2/28/2010 $0 Mary PR Establish list of sponsorship 2/1/2009 1/31/2010 $15. $195.7 $77.06% 79.000 $300.000 Jerry Marketing Evaluate business results ongoing 2/28/2009 2/27/2009 $0 Jerry Marketing Direct mail lists to purchase/prepare 2/1/2009 1/31/2009 $10.455.000 $300.660.420.1 Implementation Milestones All figures will be monitored on an ongoing basis in relation to projections versus actual.000 Public Relations $165. 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.237.000 Sean Marketing Dispatch/monitor campaign results 2/1/2009 1/31/2010 $2. Table: Contribution Margin Direct Costs of Goods $791. -----------.000 $325.000 $1.000 Percent of Sales 13.51% 1.000.000 Other (Travel. 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 10/1/2008 9/30/2009 $20.000 $1.000 -----------.376.000 Internet Advertising $30. wherever possible. 5.500 Other Variable Costs of Sales $0 $0 $0 -----------.000 $1. ------------ Marketing Expense Budget 2008 2009 2010 Print Advertising $160.163 $18. -----------.56% 79. 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.250 $118.000.000 Contribution Margin / Sales 67.000 $1.500 .000 Mary PR Totals $66.000 Sean Marketing Ad agency liaison on direct mail 1/31/2009 1/30/2010 $8.71% 0.213. Conventions.000 $35.729.000 $120. and the ongoing plan will be altered or manipulated as necessary in order to react to and. anticipate external changes to the environment.750 $28.95% 5.000 Jerry Marketing Ad agency liaison on print ad 10/1/2008 9/30/2009 $11.

. leads our PR and marketing team of four in all advertising. Jerry works closely with the members of the team.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. 5.5. Jerry Neiland.2 Marketing Organization Our marketing director. promotional and public relations related activities. to implement and monitor the effectiveness of the marketing plan and evaluate results.

00 $9.0 $22.00 $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 $0.000 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 $225.00 $300.000 $337.000 $26.50 $9.000 Corporate Deluxe $0 $0 $0 $0 $0 $0 $0 $0 $0 $3.00 Vacation Fractional Ownership 0.50 $17.0 $22.50 $0.50 $9.000 $4.00 $400.00 $4.00 $0.00 $0.50 $9.00 $0.00 $9.00 $400.00% $9.50 $12.500.0 $22.00 $400.00 $250.00 $9.00 Corporate Double $400.00 Sales Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Corporate Single $0 $0 $0 $0 $0 $0 $0 $0 $0 $6.00 $350.50 $17.00 $0.00 $9.500.500 $4.00 $250.500.50 $0.750 $1.00 $0.00 $300.500.00 $350.50 $17.530 .00 $300.00% $12.00 $400.750 Total Sales $1.00 $9.0 $22.00 $300.00 $400.00 $350.50 $17.00 $350.500.00 $350.00 $250.250 $16.50 $17.00 $0.00 Corporate Deluxe 5.00 $9.00 $4.00 $250.00 $400.00 $4.00 $0.00 $250.00 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. 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 $300.00 $9.00 Vacation Fractional Ownership $22.00 $250.00 Corporate Deluxe $300.500.00 $0.50 $9.00 $250.00 $250.500 Vacation Fractional Ownership $1.00 Sales 0 0 0 0 0 0 0 0 0 0 0 Corporate Suite $350.500.0 $22.0 $22.00 $300.00 $350.00 $0.00 $1.50 $12.00 $1.50 $21.500.500.687.50 $9.00% $0.00 Sales Corporate Suite 2.180.500.500.50 $12.95 $1.00 $0.0 $22.50 $1.00 $350.00 $300.00% $17.00 $250.50 $0.00 $300.00 $0.00 $400.00 $400.00 $9.250 $18.500.00% $22.750 Corporate Double $0 $0 $0 $0 $0 $0 $0 $0 $0 $20.00 $300.50 $9.00 $9.154.125.736.00 $350.00 $0.0 $22.500.00 $0.000 $30.00 $300.00 $9.125.783 $338.500.00 $9.00 $300.0 $22.00 $9.50 $12.00 Corporate Double 43.0 $22.00 $400.00 $400.50 $9.00 $250.00 $350.00 $400.00 $350.00 $250.00 $9.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 Sales 0 0 0 Corporate Suite $0 $0 $0 $0 $0 $0 $0 $0 $0 $700 $1.850 $226.0 $22.500.50 $17.50 $17.00 $350.50 $12.500 $225.50 $12.

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 .

00% 0.000 $20.62% 8. -----------.000 -----------.500) ($27.000 $5.86% 72.00% 0.000 $10.500) ($37. -----------.500 $27.500 $2. -----------.000 $10.500 $2.500 $97.00% 0.000 Other (Travel.500 $27.00% 8.500 $27.000 $5.00% 72.01% 74. -----------.000 $50.00% 0.500) ($27.500) ($27.500 $27.00% 0.000 $10. -----------.00% 0.00% 0.000 $50.500 Percent of Sales 0.000 Internet Advertising $2. -----------.00% 0.667 $1. Conventions.44% 5.500 $2.00% 0.000 $25.500 $2.500 $97.000 $20.970 Contribution Margin / Sales 0.000 $10.000 $10.000 $10.000 $5.500 $27.000 $5.00% 0.500) $831.500 $97. Appendix Table: Marketing Expense Budget Marketing Expense Budget Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Print Advertising $10.000 $10.500) ($27.000 $10.500 $27.000 $10.000 $5.500 Public Relations $10.500) ($27.500) ($27.500 $2.650 $855. ------------ Total Sales and Marketing Expenses $27.000 $5.500 $37.000 $25. Meetings) $5.500 $2.299.00% 0. -----------.000 $50.00% 0.500 $2.000 $5. -----------.000 $20.000 $10.00% 0.00% 0.000 $10.500 $2.500 $2.00% 0.500 $2.000 $5. -----------.000 $10.000 $10.500) ($27.000 $10.000 $20. -----------.000 $10.26% Contribution Margin ($27.000 $25.00% 0.500 $2.500 $27.54% .

500 Average $9.167 $9.500 $27.500 $97.500 $97.500 $37.500 $27.500 $32.500 $27.500 $27. 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 .500 $37.500 $97.167 $9.500 $97.167 $9.500 $27.167 $9.167 $9.167 $12.500 $27.167 $9.500 $27.500 $27.500 $97.500 $32.500 $97.500 $27.500 $27.167 $9.500 Total $27.500 $27.500 $32.

500 $32.500 $27.500 Total $27.167 $9.500 $37.500 $27.500 $27.167 $9.500 $27.500 $32.500 $27.500 $27.500 $27.500 $97.500 $97.500 $27.500 $97.167 $9.500 $27.500 $97.167 $9.167 $9.500 $27.500 Average $9.500 $32.167 $12.500 $97.500 $37.500 $97.167 $9.167 $9.500 $27.500 .500 $27. 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.

167 $9.500 $27.500 $27.167 $9. 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 $27.167 $9.500 $27.500 $32.500 $27.500 $97.500 $27.500 $97.500 $27.500 $37.500 $27.500 $27.167 $9.500 $32.500 $27.500 $37.500 $27.500 $27.167 $9.500 Total $27.500 $27.500 $97.167 $12.167 $9.500 $97.500 $97.500 Average $9.500 $27.500 $27.500 .167 $9.500 $32.500 $97.

-----------. -----------. -----------. -----------.970 Contribution Margin / Sales 0.000 $10.000 $5.500) ($37.500 $37.000 $10.000 $25. ------------ Total Sales and Marketing Expenses $27. -----------.26% Contribution Margin ($27.00% 0.000 $10. -----------.00% 0.000 $20.500 $27.500 $27.000 $10. -----------.500 $97.500 $2.500 $2.000 $5.000 $10.500) ($27.00% 72.000 $5. -----------.000 $10.500 $27.00% 0.44% 5.000 $10. -----------.500 $2.500 $2.62% 8.00% 0.500 Percent of Sales 0.000 $5. -----------.000 $5.500) ($27.01% 74.000 $5. -----------.667 $1. -----------.500) $831.500 $27.00% 0.00% 0.000 $5.500 $97.00% 0. -----------.500 $2. Conventions. -----------.000 $50.500 $2.000 $25.000 $10.500 Public Relations $10.00% 0.650 $855.783 $338.54% . Meetings) $5.000 $50.850 $226.500 $2.00% 0.000 $10.000 $20.000 $10.00% 8.000 $5.500 $2. -----------.500) ($27.500 $97.000 -----------.00% 0.000 $10.299.000 Internet Advertising $2.500 $27.000 Other (Travel.000 $10.500 $2.500) ($27.500) ($27.500 $27. -----------.00% 0. ------------ Marketing Expense Budget Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Print Advertising $10.00% 0.86% 72.500 $27. -----------.530 Other Variable Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 -----------. Appendix Table: Contribution Margin Direct Costs of Goods $0 $0 $0 $0 $0 $0 $0 $0 $0 $225.500 $2.000 $10.00% 0. -----------.000 $25. -----------.00% 0.500) ($27.500 $2.500) ($27.000 $10.000 $50. -----------.000 $20.000 $20.000 $10.00% 0.00% 0.