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

Market Summary

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

Market Analysis

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Market Demographics

Geographics

• One target group is the geographic target of the city of Eugene with a population of 130,000 people.
• Another target population are travelers that typically come from the United States, however, approximately 10% are from other countries.

Demographics

• Male and Female.
• Ages 35-55.
• College or graduate education.
• An income over $50,000.

Behavior Factors

• Enjoys traveling for the sake of seeing new things and meeting people.
• Tend to use B&Bs when traveling instead of hotels.
• Enjoy meals at restaurants once a week.

Market Needs

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

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

• Accessibility: The B&B is located within 10 minutes of the city of Eugene, providing accessibility for people from Eugene, travelers in the Willamette River Valley, and guests of the University of Oregon.

• Customer Service: The customers will be impressed with the level of attention that they receive.

• Competitive Pricing: All rooms will be competitively priced relative to similar B&Bs.

Market Trends

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

The industry has seen an increase in occupancy, from out of state or region travelers, as well as and more importantly, local people that are looking for a place to escape from their homes.

Market Growth

In 1999, the national B&B market reached $543 million dollars.  Sales are expected to grow by 9% for the next few years.  This growth can be attributed to a couple of factors.  The first factor is an appreciation for services that a B&B provides.

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

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

SWOT Analysis

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

Strengths

• Great location.
• Fantastic facilities.
• Owners who are passionate about their work.

 

Weaknesses

• Brand visibility.
• Limited number of rooms means limited amount of sales.
• The struggle with taking care of everything with low labor overhead.

Opportunities

• Growing market with a significant percentage still not aware of The Enchanted Vineyard.
• Increase in sales from university-related events.
• The ability to become more efficient as the learning curve steepens over time.

Threats

• Competition from new B&B entrants.
• The introduction of a B&B-style hotel that understands the basic market need.
• A slump in the economy, decreasing people's discretionary income.

Competition

Competition comes in several forms:

Other B&Bs
Typically B&Bs have a set of unique features, something that makes them stand out.  Some B&Bs will create uniqueness down to the level of different rooms within the B&B.  The size of a B&B ranges from one to two rooms (traditionally called a home stay) to a country inn with more than 30 rooms.  On average, most B&Bs have only 4-6 rooms and are often booked up in advance.  Particularly during special events, demand outstrips supply.  B&Bs differentiate themselves by personal service offerings and the general ambiance.  Finally, B&Bs usually have a nice sit down breakfast for their guests.  This is not a simple continental breakfast of juice, coffee, and a bagel, but an elaborate spread of gourmet food such as quiche with portabella mushrooms, fresh roasted garlic and sun dried tomato omelettes, or some sort of fresh smoked fish.  Guests of B&Bs are not just looking for a room to sleep in but a whole experience in staying in a lovely setting, with interesting people to chat with, and people present to pamper them in any way possible.

Hotels/motels
These facilities are generally much more sterile in character relative to B&Bs.  The rooms are typically the same throughout the facility (unlike B&Bs where each room is typically quite different).  The guests of hotels generally use the hotel as a place to stay at night. The operator will usually see the guest when they check in and when they check out.  This differs from a B&B where the guests are encouraged to spend time in communal rooms and socialize with the operators and other guests.  Breakfast, if included at all in hotels, is sparse.

Service Offering

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

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

Keys to Success

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

Critical Issues

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

• Continue to build brand awareness which will drive new customers to The Enchanted Vineyard.
• Gain operating efficiencies.
• Develop a strong relationship with the University of Oregon.

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