Gas Station Feasibility Study by OGS Capital

Executive Summary

XXXX is a proposed new generation retail center with a planned large format travel plaza and an adjacent Fairfield Inn and Suites hotel. The travel plaza (± 10,000 SF) will include a gas station with a convenience store as well as a fast-food restaurant along Interstate 10, 2716 Gamble Road, in Monticello, Florida. With our company planned to be established in one of the high traffic areas, our preferred customer profile is to include domestic US travelers and international tourists on Interstate 10 traveling to and from areas such as Jacksonville, Orlando, Tampa, and Miami. In addition, we are also planning to target customers within a 1-5 miles radius from where our company will be headquartered, ensuring a constant number of visitors to our planned store.

The development plan for our retail site will take place in two stages. The first development stage (travel plaza center) will take place in 2021, while the second stage (the adjacent Fairfield Inn and Suites hotel) is planned to start in 2022 after the successful establishment of our travel plaza. To reach this, XXXX is currently seeking equity funding of USD 8,736,015 to fund the first development stage during the 20212022 period along with an additional USD 8,220,000 to fund the second development stage during the 2022-2023 period. The amounts of funding requested will be used toward financing the company’s main construction and engineering activities during the 2-year period along with the purchase of raw materials and necessary equipment needed to run our business successfully.

Overall, the Floridian market for operators working in the gas station, convenience stores, fast-food, and hotel industries is a billion-dollar market, currently estimated at nearly USD 16.10 billion and forecast to reach USD 24.93 billion in 2025. The hotel industry is the largest among the four industries, followed by operators in fast-food restaurants, convenience stores, and gas stations. The key financials for our business are presented below:

USD 1,530,010

Net Present Value 6.26%

Internal Rate of Return (IRR)

20.92% Revenue CAGR 90.67% Profits CAGR

61.20%

➢ Market Research and Analysis

Industry definition:

Operators in this industry primarily sell services offered mainly by gas stations, convenience stores, fast-food restaurants, as well as hotel and motel operators in the state of Florida. For convenience and due to the nature of our proposed service offerings, which are a mixture of those four industries, the following analysis has been made by combining those industries in terms of market size and product or service segmentation. The following analysis has been made to reflect the next five years of industry performance (2021-2025), with the year 2020 as the base period. The analysis is based in Florida State where our business will be headquartered. Analysis for our target market is also presented.

Market Research

Bottoms up: An anticipated economic recovery from the COVID-19 pandemic is expected to aid revenue growth in the State of Florida in the four industries

Operators in the gas station, convenience stores, fast-food, and hotel industry in Florida have exhibited strong growth over the five years to 2020-2021, largely due to the rising levels of per capita income in the state affecting major consumer spending on products and services within those industries. Operators in the gas station industry have benefited from the strengthening retail and manufacturing sectors, which have boosted demand for diesel from trucking industries, while the introduction of diesel-compatible passenger cars has further supported diesel fuel sales from individuals, supporting revenue growth. In the convenience store and fast-food restaurant industry, operators have benefited from consumers' need for time-efficient and foodservice locations, as well as, shifted product mixes to include foodservice products that are more profitable, satisfying the demand for quick and easy meal options. Furthermore, the hotels and motels industry in Florida has experienced steady growth, primarily thanks to robust gains in overall tourism participation throughout the state. Increases in domestic travel, international travel, and consumer spending have enabled industry revenue growth every year since 2014.

Accordingly, the total market size for operators working in the gas station, convenience stores, fast-food, as well hotel industries is currently estimated at USD 16.10 billion, sharing nearly an average of 3.50% of the total US market for the four industries combined. The Hotel and Motel industry is the largest in terms of market size, sharing nearly 40.82% of the four industries combined in the state of Florida. This is followed by operators in the fast-food restaurant industry at 26.85%, convenience store industry at 18.22%, and finally operators in the gas station industry at 14.11% of the overall market. Though showing great promise, the four industries have been negatively influenced in 2020 by falling consumer sentiment resulting from economic fallout following the COVID-19 (coronavirus) outbreak. Regardless of this, the four industries are anticipated to rebound significantly during the 2021-2022 period, influenced heavily by factors such as rising per capita disposable income, increased domestic trips by US residents, and higher consumer spending. Henceforth, the total market size for operators working in the gas station, convenience stores, fast-food, as well hotel industries is anticipated to reach USD 24.93 billion. The hotel and motel industry is expected to witness the strongest growth among all industries.

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Industry Performance: Key External Drivers

Per capita disposable income in Florida

Per capita disposable income measures the amount of spending money that a household retains after paying taxes. As household disposable income rises, individuals will more likely allocate a portion of their income toward purchases and services by industry operators such as those in the convenience stores and fast-food restaurants industry, posing a potential opportunity for revenue growth. Furthermore, higher levels of disposable income enable Floridians to trade up to more high-value services. This can also be witnessed by domestic or international travelers in the state with higher incomes, as they will be more likely to seek short-term accommodation in hotels around the state, supporting industry growth. Per capita disposable income in Florida is expected to increase in 2021, representing a potential opportunity for operators in the convenience store, fast-food restaurant as well as hotels and motels industries.

Consumer Spending in Florida

Consumer spending in Florida represents the amount Floridians spend on goods and services, including products and services offered by the four industries combined. As consumer spending rises, purchases increase, especially those that are discretionary. Consumer spending in Florida is expected to increase and experience stable growth during the 2021-2023 period, posing a potential opportunity for operators in the gas station, fast-food restaurant, convenience store as well as hotels, and motels industries.

Per capita disposable income in Florida

Consumer Spending in Florida

Market Research

Industry Performance: Key External Drivers

Consumer Confidence Index

Operators in fast-food restaurants and convenience stores are highly sensitive to changes in consumer spending. For example, during the recession, the spike in unemployment led to declines in consumption levels, including the consumption of fast-food. However, when personal consumption expenditure is high, consumers are more likely to spend money on eating out at industry restaurants or increase their spending on major purchases in convenience stores, largely benefiting the two industries. Consumer spending is increasing significantly during the 20212022 period, rebounding from the huge economic recession in 2020 due to the coronavirus outbreak.

World

price of crude oil and total vehicle miles in Florida

Gasoline purchases are the primary reason consumers visit gas stations. When gas prices are low, industry purchase costs and revenue fall, though more people are likely to use their cars or go on road trip vacations. Conversely, revenue increases in line with crude oil price increases. The world price of crude oil is expected to increase only marginally during the 2021-2022 period, representing a potential threat to the industry. Moreover, as people drive their cars more, they are forced to fill up their gas tanks more frequently. As the total number of vehicle miles in Florida increases, traffic increases for industry establishments. In 2021, the total number of vehicle miles in Florida is expected to increase, offsetting the potential threat that may result due to the marginal increase in gas price.

Consumer Confidence Index

World Price of Crude oil vs. Total Vehicle miles in

Market Research

Industry Performance: Key External Drivers

Domestic trips by US residents

Inbound trips by non-US residents

Domestic trips by US residents

Trends in domestic travel, especially business travel, and the total nights spent away from home directly affect demand for accommodation. As the number of trips made by US citizens rises, demand for hotels and motels increases. The number of domestic trips based in the state of Florida is expected to increase in 2021, representing a potential opportunity for operators in the hotels and motels industry in Florida.

Inbound trips by non-US residents

Trends in international visitor arrivals and the lengths of their stays influence demand for accommodation. A rise in inbound trips positively affects demand for hotels and motels. The number of inbound trips by non-US residents is expected to significantly increase in 2021, representing a potential opportunity for operators in the hotels and motels industry in Florida

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Industry Performance: Current Industry Performance

Hotels and Motels industry in Florida

The hotels and motels industry in Florida is the largest among the four industries included in this report, accounting for nearly 40.82% at nearly USD 6.57 billion based on the latest available estimates. From the national level, this industry currently shares 6.10% of the overall US hotels and motels industry. The industry is experiencing a robust growth at both the state and national level, with the national industry taking a marginal lead. Historically, Florida has been a larger tourist hub, attracting swarms of both domestic and foreign travelers. Both the state and the national Hotels and Motels industries are highly fragmented. The majority of large operators within this industry do not own the establishments operating under their brand names. Most major enterprises license their brands to independent operators, from whom these enterprises collect franchise and royalties' fees. As a result, market share concentration is strikingly low at both levels.

Additionally, Florida operators benefit from a large volume of leisure, business, and overseas travelers. The high number of visitors the state receives annually helps boost industry profit margins. Despite wages making up a greater share of state operators' revenue, the group still experiences higher profitability than its national counterparts. The reason wage spending remains high in Florida is because of the heavy dependence state operators have on human capital. Hotels and motels in Florida employ more individuals per establishment than national establishments. This is because operations in Florida tend to be much larger. Operators offer a greater array of value-added services at their various establishments and make customer-service a priority within the highly competitive environment. Accordingly, over the five years to 2020, the industry has experienced negative growth at a CAGR rate of -9.90%, with a decline of more than 40% in the same year due to the current COVID-19 situation. The industry is expected to rebound significantly during 2021-2022, largely anticipated to be due to the recovery from the current pandemic and the increasing number of international tourists visiting the state. $$2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00

FL - Hotels and Motels Industry (2015:2021) Market Size Revenue Change

Market Research

Industry Performance: Current Industry Performance

Fast-Foods Restaurants industry in Florida

In the state of Florida, the Fast-Food Restaurants industry has experienced steady revenue growth for most of the five years to 2020, as convenient and affordable food remains popular with consumers. This makes the Fast-Food Restaurants industry the second largest industry after Hotels and Motels, sharing nearly 26.85% of the combined industries mentioned in this report and accounting for nearly 1.80% from a national level at USD 4.32 billion. While the stereotypically low price point of industry products typically gives fast-food restaurants a competitive advantage over other segments of the food services sector, rising household income levels, which have spurred a greater amount of spending on discretionary items, have increased competition overall.

FL-Fast-Food Industry (2015-2021)

Market Size Revenue Change

Furthermore, with the rise of fast-casual and independent chains rapidly gaining market share, major industry operators have had to alter their menu offerings to effectively compete. Over the past five years, the industry's response to changes in consumer preferences has helped spur demand in these new fast-casual industry entrants. However, industry revenue growth is expected to contend with challenges stemming from the COVID-19 pandemic, which forced most industry establishments to temporarily curtail dine-in operations, causing industry revenue to decline 13.8% in 2020 alone. Overall, the total market size for operators working in the Fast-Food Restaurants industry has experienced a slightly negative CAGR of -0.10% over the five years to 2020, reaching nearly USD 4.32 billion during the same year. The shelter-in-place order imposed in early 2020 as well as the economic lockdown that happened due to the current pandemic are some of the great influencers to such decline. Regardless of this, as the Floridian economy recovers, this segment is anticipated to rebound significantly in 2021.

Market Research

Industry Performance: Current Industry Performance

Convenience Stores

The convenience stores industry has grown in popularity over the five years to 2020 as more Floridians have become employed and, in turn, have experienced declining leisure time. In response to a growing demand for convenience, industry operators have opened additional stores, expanded into new markets, and readily adapted to changing consumer tastes to increase sales. Among these changes is a significant increase in the amount of prepared and healthy food offerings made available to consumers. However, major declines in food prices coupled with shaky consumer confidence, both from the state and national levels, have resulted in revenue declines early during the period. However, industry revenue has grown an annualized 2.3% to USD 2.93 billion over the five years to 2020, sharing nearly 18.22% of the four industries included in this report and around 9.40% from a national level. This increase includes a decline of 4.3% in 2020 alone due to the current pandemic.

Industry operators have also benefited from rising disposable income levels over the past five years. For instance, per capita disposable income has increased at an annualized rate of 1.5% over the five years to 2020, enabling consumers to purchase soda, snacks, and other sundries at convenience stores, which are often more expensive than other retail venues, such as grocery stores and supermarkets. However, due to the coronavirus pandemic, these tailwinds have reversed as unemployment has soared to unprecedented levels and disposable income has declined. Yet, it is anticipated that per capita disposable income will increase highly over the next few years as the economy recovers from the current pandemic

FL - Convenience Store Industry (2015: 2021) Market Size Revenue Change

Market Research

Industry Performance: Current Industry Performance

Gas Stations

The gas stations industry in Florida comprises a growing share of the national industry. The industry currently accounts for 2.80% of the overall US gas station market and shares approximately 14.11% of the four industries combined in this report, making its total market size estimated at nearly USD 2.27 billion. Despite its growing share of the national industry, the Gas Stations in Florida will remain highly fragmented, much like the overall industry in the United States. According to current estimates, the four largest players' market share concentration will account for less than 30.0% of industry revenue in the 2019-2020 period, despite some consolidation by large operators in the state. Florida's relative expansion has been driven by its rising population, which has increased at a rate that is double the national average. This trend has foremost been driven by the high population of senior citizens, commonly referred to as “snowbirds”, as retirees commonly come from states with colder climates.

Florida has also benefited from a strong tourism industry. Orlando, Miami, and Tampa welcome tourists from all over the world. Florida is home to miles of beaches, in addition to famous attractions such as Disney World and Gatorland. Over the past five years, Florida has experienced a record number of tourists. Overall, the influx of travelers and vacationers has caused the total number of vehicle miles in Florida to increase an annualized 3.2% during the current period, which is faster than the national average. Strong growth in the number of vehicle miles in Florida over the past five years has increased demand for industry products, somewhat tempering the revenue decline spurred by falling crude oil prices. Revenue growth is expected to encourage major players to expand their operations. The Florida economy is anticipated to expand at a faster rate than the national economy. Since many industries depend on fuel purchased from gas stations, many industry players will be encouraged to expand their operations and open new locations. Despite the growth, the industry has experienced a strong decline in 2020 due to the current pandemic at a rate of -19.87%. However, the industry is anticipated to recover slightly in 2021, posing a potential opportunity for industry operators.

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Market Outlook

FL - Market Size (Four industries: 2019-2025)

Outlook

Over the five years to 2025, the total market size for operators working in the gas station, convivence store, fast-food restaurant as well as hotels and motels industry in the state of Florida is expected to be mainly determined by previously established trends. Recovering from the economic recession due to the COVID-19 situation, the combined market size for operators in the four industries is anticipated to reach USD 24.93 billion over the five years t0 2025. The Hotels and Motels industry is anticipated to be the strongest segment in terms of market growth, reaching USD 13.08 billion with a rapid growth rate of 43.36% in 2021 alone.

The lowest industry in terms of market size is expected to be for operators working in the gas station industry, reaching nearly USD 2.76 billion in 2025 with a compound growth rate of 3.40% during the forecast period. Operators in the convenience stores and fast-food industry are anticipated to grow reaching USD 5.77 billion and USD 3.33 billion, respectively. Factors including the average per capita disposable income in Florida, average consumer spending, number of international tourists as well as domestic travels are anticipated to be the major drivers for the growth of the industries combined over the forecast period, hugely supporting industry demand.

Gas Stattion

Convience Stores Fast Food Restruants Hotel & Motel

Market Research

Product or Service Segmentation: Gas Station

OVERVIEW - In terms of product or service segmentation, operators in the four industries provide distinct products to their customers. For instance, in the gas station industry, the service offerings by operators in this industry include items such as gas, diesel, automotive, and non-automotive fuel services. In the convenience store industry, operators usually sell items like tobacco products, packaged beverages, candy, snacks as well as alcoholic beverages like beer. While for the fastfood industry, most operators seek to provide a wide variety of fast and easy options to their customers to choose from. This includes products such as burgers, sandwiches, pizza, pasta, etc. Compared to the last-mentioned three industries, in the hotels and motels industry in the state of Florida, operators usually classify their services according to the number of rooms available such as guest room rentals from properties with between 75 and 299 rooms or above. The following analysis will provide a detailed explanation for those service offerings in each industry. The following state-level analysis has been made as a share of the national level and reflected accordingly in this report.

Gas Station

Retail sales of automotive fuel are estimated to account for 91.1% of Gas Stations industry revenue in 2020. The share of industry revenue represented by the sale of vehicle fuel has increased as fuel prices grew faster than the price of other goods over the past five years. Automotive fuel (gas and diesel) is a more central source of revenue in this industry. In terms of products or service segmentations, operators in this industry usually sell gas, diesel, nonautomotive fuel, automotive services as well as other services that constitute a little share of the overall market. Those services and products are the main revenue drivers for operators in this industry, making its share of the national economy stands at nearly 2.80% with a total market size of USD 2.27 as of the latest 2020 available estimates. The following is an analysis for most products in this industry based in the state of Florida.

Market Research

Product or Service Segmentation: Gas Station

Gasoline and diesel fuel

Diesel fuel's share of industry revenue has expanded over the past five years, due to the quick recovery of trucking enterprises. Furthermore, consumers have slowly turned to diesel-compatible passenger cars for better fuel efficiency, lifting demand for diesel fuel. Lastly, according to the Energy Information Administration, the price of diesel fuel grew at a faster pace than gasoline over the five years to 2020, therefore contributing to its larger share of industry revenue. Demand for premium fuel rapidly grew as higher per capita disposable income enables more Floridians to purchase luxury cars. Conversely, volume sales of regular and mid-grade gasoline declined as more consumers adopted fuel-efficient cars, causing their share of revenue to slightly decline.

Overall, an estimated 41.9% of automotive fuel sales are accounted for by various grades of gasoline, while diesel fuel accounts for the remaining 49.2%. This makes the total market size for gasoline and diesel in the state of Florida to be currently estimated at USD 951.47 million and 1.12 billion respectively. Those service offerings are anticipated to grow significantly over the five years to 2025 with the increased travel miles in the state of Florida.

Automotive parts, repairs, and other services

Various services such as repairs, vehicle rentals, and car washes offered by the Gas Stations industry in Florida generate a steady revenue stream, accounting for 1.8% of industry revenue in 2020 with a total market size of USD 40.87 million only. Sales of fuel used in nonautomotive applications (e.g. kerosene, bottled liquefied petroleum gas, and some grades of distillate) and the supply of automotive parts all contribute to 1.7% of industry revenue in 2021, making its total market size stands at USD 38.60 million. However, the importance of these items to the Gas Stations industry, apart from nonautomotive fuel, has declined over the past five years, largely due to the major interest shifting of Floridians to other services offered by operators in this industry.

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Product or Service Segmentation: Convenience Store

Operators in the convenience store industry, both based in Florida and the US in general, serve as a source for fillin items to supplement total store purchases. For operators in this industry to succeed in generating revenues, they need to stock the right mix of a limited product selection, meeting the demand of local people. In this industry, services including tobacco, packaged beverages, alcoholic beverages as well as candy and snacks are included.

Tobacco Products

From both a state and national level, tobacco consistently constitutes this industry’s largest product category and in Florida, its share of the market has grown over the years to 2020. This segment accounts for nearly 34.1% of revenue in 2020, making its total market size estimated at nearly USD 1.00 billion. Though this segment’s share of the Floridian convenience store industry has increased, its unit sales and profitability has steadily declined due to increased government regulation and taxation on such products, posing a potential threat for operators in this industry over the years to come.

Foodservice

A considerable and growing amount of revenue is generated from foodservice sales, which includes food prepared on-site, packaged meals, hot and cold dispensed beverages, and frozen dispensed beverages. Coffee sales are also included in this industry. In 2020, this segment accounted for nearly 22.5% of the overall revenue of the convenience store industry, standing at USD 66 million. Convenience is a driving factor behind the popularity of these items, as more consumers are pressed for time and benefit from quick and convenient services.

Packaged beverages

The packaged beverage product category constitutes bottled beverages, such as water, soft drinks, energy drinks, and alternative beverages. This segment as a share of revenue has increased steadily during the period, accounting for 15.8% of industry revenue in 2021. This makes the total market size in Florida to be currently estimated at USD 46 million. Nonalcoholic beverage sales may rise over the next five years, as marketing for packaged drinks increases, and health consciousness and convenience encourage further sales growth.

Market Research

Product or Service Segmentation: Convenience Store

Candy and snacks

Prepackaged candy and snacks are estimated to account for 9.9% of industry revenue in 2021, standing at nearly USD 29 million of the overall convenience store industry in the state of Florida. Sales of products in this segment have decreased during the period amid rising health concerns, which has caused this segment to cede some of its share to the foodservice segment.

Beer and other services

Beer sales in convenience stores in Florida accounts for nearly 8.5% of the overall industry revenue in 2021, totaling around USD 25 million, increasing as a share of revenue over the past five years. While sales of mainstream brands have declined, the growth of craft beers and microbrews are offsetting these declines.

Other services offered by operators in this industry include a range of products, such as magazines, stationery, household cleaning products, and fresh food. In response to growing consumer health concerns, operators have supplied more locally grown produce and fresh items, such as flowers, in recent years. While this is a growing trend, fresh produce only accounts for a small portion of industry revenue. Lottery tickets and over-the-counter medicine make up a substantial share of the remaining revenue. These items are anticipated to account for 9.2% of industry revenue in 2021, remaining a stable share of revenue during the period, and standing at nearly USD 27 million.

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Product or Service Segmentation: Fast-Food Restaurants

The fast-food restaurants industry in Florida is segmented based on the main type of food served. The diverse nature of the industry means many restaurants do not fit neatly into one category. For example, many predominantly burger focused chains also serve chicken or Mexican-based dishes. Fusion cuisine, which combines elements of different culinary traditions, have become increasingly popular. This is increasingly the case as fast-food operators chase increasingly fragmented consumer segments. Also, breakfast has become an increasingly lucrative segment of the industry as operators contend with stagnant sales in the lunch and dinner time slots.

Burgers

Burgers Pizza and Pasta Chicken Other Sandwiches Global

Burgers are almost synonymous with fast-food and the majority of Floridians’ fast-food chains include restaurants specializing in burgers. Burgers are heavily immersed in US culture and have therefore been a major driver of the industry’s growth over the past half-century. Over the past few decades, Floridian restaurants have increased their hold of the entire foodservice market due to the growth of chains such as McDonald’s and Burger King. However, over the five years to 2020, many traditional burger chains have been experiencing sales decline with consumers moving away from generic brands towards niche offerings, meeting their constantly evolving demands. Overall, we estimate the burger segment to account for nearly 34.1% of the total fast-food restaurant industry in Florida, totaling around USD 1.47 billion.

Chicken

Chicken has long been a popular fast-food menu item and the majority of nonchicken chains now dedicate growing menu space to chicken items due to its perceived health benefits. Chicken wraps and chicken salads have been used by major burger chains to combat consumer unrest about unhealthy fast-food. Over the past five years, this segment's share of revenue has increased and accounts for an estimated 11.3% of industry revenue in 2020, making its total market size in the state of Florida to be currently estimated at nearly USD 49 million. This segment is anticipated to experience continuous growth over the next five years to 2025.

Market Research

Product or Service Segmentation: Fast-Food Restaurants

Sandwiches

Growing chains, such as Jimmy John's and Jersey Mike’s, have helped this segment substantially, enabling it to remain a focal point for the industry. Another reason for the dominance of this segment is its relatively low input costs and cooking knowledge and expertise, making them easy entry points for new industry operators. Deli meats, rolls, and other toppings are comparatively less expensive and commonplace, limiting overhead food costs. The ease of assembling a sandwich also helps to reduce money on labor, as operators in this segment do not need to hire specialized workers for grills, stoves, or flat-tops. As a simple, tasty, and generally healthy food option, sandwich-centered restaurants have remained as a large portion of industry revenue, accounting for an expected 11.0% of revenue in 2020 at around USD 48 million in the state of Florida. This segment is anticipated to grow during the 2021-2025 period.

Global food

Global foods typically consist of Asian and Mexican food establishments, which account for an anticipated 9.5% of industry revenue in 2020. This makes the total market size for this segment based in the state of Florida to be currently estimated at nearly USD 41 million. The adoption and acceptance of global foods have increased over the past half-century as tastes have developed and people have become more adventurous in trying other cuisines. Higher rates of global travel and increased exposure to new cultures have also driven growth in the popularity of global cuisine.

Pizza and pasta

Pizza restaurants typically serve a menu of house and custom pizzas alongside pasta, salad, and other Italian-influenced cuisines. Due to the wide influence of Italian immigrants in US culture over the past century, many regional forms of pizza have developed. Due to its products' general popularity and affordability, this segment has become increasingly defined as a carryout or delivery food for offices, birthday parties, or other large gatherings of people. As a result, over the past five years, this segment's share of revenue has increased, accounting for an estimated 8.5% of industry revenue in 2020, standing at nearly USD 37 million.

Other

Establishments outside of the product segments comprise a range of different food options, performing with varying degrees of success over the past five years. Restaurants in this product segment include fast-casual concepts, traditional quick-service restaurants, and establishments serving one item that may have local or regional popularity but does not translate well to a national or state audience. This segment accounts for the remaining 25.6% of revenue in 2020.

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Product or Service Segmentation: Hotels and Motels

A hotel is an establishment that provides lodging and, usually, meals and other services for travelers and other paying guests. Conversely, a motel provides lodging for motorists in rooms that usually have direct access to an open parking area. A particular hotel or motel can be classified by a number of characteristics, including whether it provides full or limited service, whether or not it is located in a metropolitan area, the state or region in which it is located, its price or rate level, the number of rooms and whether it is independent or part of a chain operation. Hotels and motels can also be segmented by room price rates. The following analysis will include the product or service segmentation according to the number of rooms available. Since our proposed hotel will include around 85, more emphasis on this category will be provided.

Guest rooms

Guest room rentals from properties with under 75 rooms

Guest room rentals from properties with over 500 rooms

Restaurants and bars

Other services

Guest room rentals from properties with between 75 and 299 rooms

Guest room rentals from properties with between 300 and 500 rooms

In Florida, sales from hotels and motels are expected to account for 75% of industry revenue in 2020, standing at nearly USD 4.49 million. Properties with more than 75 rooms, in particular, are forecast to account for 56.2% of revenue. Many of these properties are located primarily in metropolitan areas throughout Florida, as well as in proximity to airports and within suburban areas. Many of these establishments are considered to accommodate business travelers and a smaller percentage of leisure travelers, particularly those who are either passing through or desire a streamlined experience. As a result, many of these locations include economy, select service, and extended-stay hotels, ranging from offering the most basic amenities, such as those provided by Marriott's Fairfield Inn and Suites, to hotels that offer a very specific range of amenities to appeal to a specific type of traveler, such as a short-stay business traveler. Hotels that cater to the business traveler also tend to fall on the larger end of the scale, as many companies and industries may use these properties to host events, conferences, and business-related retreats, in which only a small range of leisurely amenities are necessary. Many of these larger properties will consequently have conference rooms, and event spaces to cater to this specific clientele. Hotels that cater to business travelers are anticipated to endure increased hardship as the COVID-19 (coronavirus) pandemic has drastically reduced the amount of business travel.

Market Research

Product or Service Segmentation: Hotels and Motels

Guest rooms (continued)

Besides hotels and motels with over 75 rooms, properties that have between 300 and 500 rooms are expected to account for 6.5% of revenue, while properties with more than 500 rooms are expected to account for 7.9% of revenue. Hotels of this size are typically considered to include full-service hotels, such as the Marriott Marquis brand. These properties typically service mid to upscale leisurely travelers seeking an all-inclusive experience. As a result, many hotels within this product segment offer both leisurely and business-related amenities, such as swimming pools, children's activities, conference rooms and event spaces. Moreover, guest room rentals from properties with under 75 rooms are expected to account for 19.0% of revenue. The majority of properties within this segment are considered to be motels. These establishments typically offer rates that are lower than other industry establishments with more rooms or higher quality service. These lower rates limit the revenue generated by these establishments. The share of revenue from each of these segments has been relatively stable over the five years to 2020, although motels experienced some growth at the expense of higherpriced hotels as consumer spending has picked up.

Other services

Besides normal accommodations, most hotels have a fullservice bar and restaurant, which account for 16.3% of revenue in 2020. In an increasingly competitive industry, some hotels have sought to position their restaurant as the hotel's main attraction with the aim of attracting travelers that would otherwise stay elsewhere. Conference room spaces are a growing revenue stream, and many hotels market their ability to hold lucrative business conventions or meetings. For conferences that attract hundreds or thousands of attendees, hotels offer bulk discounts. Consequently, conference rooms and other services, such as meals for catered events, laundry service, and valet service, are expected to account for an estimated 8.5% of revenue in 2020. Additional revenue streams are anticipated to decline in 2020 due to the coronavirus pandemic-induced decline in business meetings and restrictions on restaurants.

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Local Market Research: Target Market Analysis

Target Area

Located in Jefferson country, our target area will be within a 1-5 mile radius of our company location, where it’s currently based in Interstate 10 (Exit #217) 2716 Gamble Road, Monticello, Florida 32344. In addition, we expect our major customer base to be travelers on Interstate 10 traveling to and from Jacksonville, Orlando, Tampa, Miami, and other areas. From our easy to find location, customers will be just a drive away from a multitude of different activities. They will be able to go to the nearby Lake Miccosukee as well as other top attractions including Alfred B. Maclary Gardens State Park. Customers can also enjoy our proximity to the Donald L. Tucker Civic Center. From our location just off Interstate 10, customers will also be within minutes of major nearby attractions such as Florida State University, the Wacissa River, and Monticello’s charming downtown district. We are also just a short drive away from Florida’s vibrant capital city, Tallahassee.

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Local Market Research: Target Market Analysis

Population is the sum of births plus in-migration, and it signifies the total market size possible in the area. This is an important metric for economic developers to measure their economic health and investment attraction. Businesses also use this as a metric for market size when evaluating startup, expansion, or relocation decisions. Within 1 mile radius of where our business will be headquartered, there are 131 people and around 64 households. Those figures go up by extending our mile radiuses, reaching 2,042 people and 845 households within 3-mile radius and 5,502 people and 2,191 households within 5-mile radius.

Age groups

The ages chart illustrates the age and gender trends across all age and gender groupings. The largest age group with our trade area appears to be people within the age group of 5059 years old, while the lowest age group was for people with more than 80 years old. The working force population, people who work or have a stable income, are within the age group 18-65. There are around 90 people in the workforce within 1mile radius, 1,340 within 3-mile radius, and 3,549 within 5mile radius.

Total Population and Total Households (1-5 miles radius)

More than 80 years old

70-79 years old

60-69 years old

50-59 years old

40-49 years old

30-39 years old

20-29 years old

10-19 years old

Under 9 years old

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Local Market Research: Target Market Analysis

Household Income

The household incomes chart shows how many households fall in each of the most used income brackets by the US census. According to our estimates, it appears that the majority of the population within a 1–5-mile radius has an annual per capita income of more than 60,000 USD per year. Since household's income per capita is positively associated with consumer spending, households with higher income per capita will be more likely to spend more on discretionary items, especially for our service offerings based on our planned convenience store and fast-food restaurants. This will hence support the financial sustainability of our business throughout the forecast period.

Race and Ethnicity

From our estimates, nearly 73% of our target population (within a 1-5-mile radius) will be white people. Black or African Americans constitute nearly 24.1% of the overall population at 1 mile radius, followed by 20.7% at 3-mile radius, and 21.6% at 5-mile radius. In addition, there’s 0.4% of American Indian within 3- and 5-mile radius, and 0.2%-3% Asian within 3 miles and 5 miles radiuses.

Race or Ethnicity

Market Research

Local Market Research: Target Market Analysis

Traffic Counts

According to The Department of Transportation in the State of Florida, Gamble Road is regarded as a high traffic area, with an annual average daily traffic (AADT) of nearly 3,800 per day based on the latest available estimates. This means there are at least 158 vehicles pass through this road every hour and at least 79 vehicles pass every 30 minutes.

In addition to this, within our target area, we estimate that there are nearly 64 vehicles owned by people within 1 mile radius, 845 vehicles within 3-mile radius, and 2,191 vehicles within 5-mile radius.

Market Research

Local Market Research: Target Market Analysis

According to the Florida Department of Transportation, cars are the most passing-by vehicles with nearly 58.19% of all vehicles at around 2,211 daily counts based on the latest 2019 estimates. This is followed by pick-ups and vans at 31.12%, 1-axle single-unit trucks at 3.38%, and 3axle single-unit trucks at 1.98%. The lowest passing-by vehicles are 3-axle tractor w/2-axle TRLR.

Market Research

Competitive Analysis

Name Staybridge Suites Tallahassee I-10 East

Industry Hotel and hospitality

Headquarter 1600 Summit Lake Dr, Tallahassee, FL 32317, United States

The Staybridge Suites Hotel is a smoke-free, pet-friendly hotel located near I-10 and Highway 90 at exit 209B in Tallahassee, Florida. Their service offerings include various room types such as queen studios, queen room, queen suite as well as king suite. The hotel features fully-equipped kitchens, flat-screen TV, in-room computers with free wired/wireless Internet, iPod docking station, and direct dial phone number with personalized voicemail. Other features include a business center with free Internet, free laundry facilities, fitness center, and outdoor pool

Weaknesses:

▪ Their offerings are relatively expensive compared to us, with rooms reaching more than USD 300 per night (taxes included)

▪ More than 15 terrible reviews were provided by customers through TripAdvisor, noticing problems with the room facilities and the bad treatment from the staff with front desk employees who rarely show up for assistance.

▪ More than 42 below average reviews were also provided by customers, with problems related to poor housekeeping services, bathroom, and low-quality breakfast relative to the price they pay for their one-night stay

▪

Name Econo Lodge

Industry Hotel and Hospitality

Headquarter 2616 Gamble Rd, Monticello, FL 323448810, United States

Based in Monticello, Florida, Econo Lodge is a hotel offering hospitality services mainly to domestic and international tourists traveling through 2616 Gamble Rd, Monticello. The hotel features nearly 45 rooms with room types including king rooms and queen rooms only. Other hotel amenities include free continental breakfast, free Wi-Fi, free coffee, and a laundry facility. Each room comes equipped with a refrigerator, microwave, coffee maker, flatscreen TV, hairdryer, iron, and ironing board.

Weaknesses:

▪ Though their prices are relatively inexpensive, they don’t offer a variety of room options compared to us

▪ With their prices, they don’t have business facilities or fitness center. They also don’t have an outdoor pool or free laundry services. Their hotel is a good option for only 1-2 days of stay maximum.

▪ Nearly 50% of customer reviews through TripAdvisor and Booking.com feature their low-quality services, with some features their hotel as fraud (not as advertised on social media), while other report problems in fans, bad stuff treatment, and other points like cancellation without prior notice.

Market Research

Competitive Analysis

Name Sunoco Gas Station

Industry Gas Station with Convenience Store

Headquarter 8418 20th St, Vero Beach, FL 32966, United States

Sunoco is an American petroleum and petrochemical manufacturer based in Vero Beach, FL 32966, United States. The company was formally known as Sun Company Inc. (1886–1920 and 1976–1998) and Sun Oil Co. (1920–1976), and it’s one of the largest gasoline distribution companies in the United States, with Sunoco brand gasoline being sold in over 4,700 outlets; just over a third of these outlets are Sunoco gas stations and convenience stores, located in 26 states.

Weaknesses:

▪ Low market share

▪ No online presence

▪ There are gaps in the product range sold by the company –that’s, they have limited scope of service offerings, especially for the Convenience Store, hence not meeting the demand for customers in the area.

▪ The company has not been able to tackle the challenges present by the new entrants in the segment and has lost a small market share in the niche categories.

Name Subway Inc.

Industry Fast food restaurants

Headquarter 1246 S Jefferson St Monticello, FL 32344, United States

Subway is an American fast-food restaurant franchise that primarily sells submarine sandwiches which are popularly known as “Sub”. Their menu mainly includes Subs and salads. It is currently the fastest-growing franchises in the world. It has 44852 restaurants in 112 countries and territories. It is the largest single owner of a restaurant chain and the largest restaurant operator in the world. It has many locations throughout the US, with its closest branch to us located within a few miles.

Weaknesses:

▪ The interior design of the outlets often looks cheap

▪ High employee turnover

▪ Services are not consistent from store to store

▪ Suffers from brand value when compared with other competitors in the market

▪ Just because training of staff is outsourced, this does not ensure a common level of service satisfaction around their US available stores.

▪ Limited online presence

Market Research

SWOT Analysis: Orange Pavers Corp.

Strengths

▪ Low Volatility

▪ High Profit vs. Sector Average

▪ Low Product or Service Concentration

▪ High Revenue per Employee

▪ Low and Increasing Level of Assistance

Weaknesses

▪ High Capital Requirements

▪ Low and Steady Barriers to Entry

▪ Medium to High Competition

▪ High Customer Class Concentration

Opportunities

▪ High Revenue Growth (2020-2025)

▪ Growing Healthy Eating Index

▪ Rising Per Capita Income

▪ High Performance Drivers

▪ High Traffic

▪ External competition for the Hotels and Motels Industry

▪ Domestic trips by US residents

▪ International trip by non-US residents

Threats

▪ Low Revenue Growth (2015-2020)

▪ World price of crude oil

➢ Business Model

Business Model

Our Company

Based in Monticello city, Florida, XXXX is a proposed new generation retail center with a large format travel plaza and an adjacent Fairfield Inn and Suites hotel. The travel plaza is planned to include convenience store, a gas station with branded fuel and segregated truck fueling, as well as fast-food restaurant along with Interstate 10 in Monticello, Florida. The site that will be used for the development strategy was an operating truck stop that will be razed and rebuilt consistently with the proposed development strategy. Our development stages will be divided into two phases through which the first development phase (travel plaza) will take place in 2021, while the second phase (the Fairfield Inn and Suites hotel) will take place in 2022.

Given that our business is highly dependent on traffic counts, we are expecting to get major revenues for the travel plaza and the adjacent hotel from passing-by cars and trucks on 2716 Gamble Road, most of which will be domestic US travelers and international tourists on Interstate 10 traveling to and from Jacksonville, Orlando, Tampa, Miami, and other areas. Besides, we will be targeting customers within 1–5-mile radius from where our company will be headquartered. This will ensure we are having constant visitors to our store with customers seeking convenient and fast options to meet their daily needs.

Compared to our competitors in the market with a limited scope of service offerings and low quality (according to reviews of customers), we pride ourselves in offering a mix of four of the biggest industries in the US economy, meeting the various demands for locals and travelers in our areas. Our high-quality services, being offered at highly competitive prices, will ensure Floridians and non-Floridians with low-to-medium per capita income can use our services and meet their daily demands.

Business Summary

Name: XXXX

Business:

• Retail store, gas station, fast-food restaurant, and hotel services

Location:

• Monticello, Jefferson County, Florida

Geographical Focus:

• Within 1–5-mile radius from our location

• Interstate 10, 2716 Gamble Road

Target Customers:

• Households and residents within 5 miles

• Domestic US travelers on Interstate 10

• International tourists on Interstate 10

Management:

• XXXX

Business Model

10,000±SF

TRAVEL PLAZA 5,000±SF CONV. STORE 2,500±SF GAS STATION

Facility Development Strategy: Store Layout Option

2,500±SF FAST FOOD

The facility development strategy includes the development of a travel plaza featuring a new generation, upscale convenience store with a branded gas station, and fast-food restaurant. 10,000 SF will be dedicated to the development of the travel plaza, of which 5,000 SF will be for the convenience store featuring an updated design, modern amenities, and fixtures. Through our convenience store, we will be providing store merchandising with beer, wine, cigarette, tobacco, snack food, candy, beverage, and convenience categories. This is also in addition to a fountain beverage counter with a full flavor selection, frozen beverages, and iced teas. Around 18 door walk-in cooler with LED lighting and integrated beer-cave will also be developed. Other fixtures will include ten freezer doors for ice merchandising, novelty ice cream, and frozen food along with four cashier stations with good standards of customer service.

Business Model

Our Proposed Location: Preliminary Option.1.

The remaining 5,000 SF will be evenly distributed between the fast-food restaurant (2,500 SF) and gas station (2,500 SF). The gas station will include ten 10 MPD’s with 20 fueling positions, diesel hoses, and truck parking. Six segregated truck diesel lands with satellite hoses and truck parking will also be included. Besides, there will be a segregated trucker lounge with flat television and theatre-style seating. We will also be offering four showers, trucker dedicated merchandising, and more than 50 truck parking spaces will be available. For other 2,500 SF, tier 1 fast-food restaurant with full exterior and interior brand image will be developed. We will be furnishing our fast-food with interior fast-food seating. We will also offer express take-out services and a drivethru.

2,500±SF GAS STATION

2,500±SF FAST FOOD

Business Model

Our Proposed Location: Preliminary Option.2.

Our facility development strategy also includes the development of the Marriot Fairfield Inn & Suites hotel. This development will be the second stage after the development of the travel plaza. The Fairfield Inn & Suites will be designed with updated chain appearance and building configuration. Full branded exterior color scheme and sign tower will also be part of its main features. A contemporary lobby area with automatic doors, seating areas, and professional attendants along with a breakfast room with multiple seating options will also be provided. There will be lobby attendants and front desk staff available 24-hours per day, 7 days per week.

The hotel will be developed so that it can host around 85 guest rooms with a mix of king rooms, queen doubles, and suites with an average cost of nearly USD 110.89. The room amenities will include a flat-screen TV with HD channels, microwave, refrigerator, lounge chair, work desk, coffee maker, and iron with ironing board. In addition, there will be a business center with computer, printer, high-speed internet, fax, and copier. We will also be providing a complimentary breakfast service with hot and cold selections. The development plan will also include the establishment of a swimming pool with a hot tub, a dedicated exercise facility with modern equipment, an exterior lounge, a guest laundry facility, as well as ample and well-lit parking with a minimum of 75 guest parking spaces.

Business Model

Our Proposed Location: All Elevations

Business Model

Our Service Offering

XXXX will offer a variety of service offerings as a part of its proposed business. Over the next two years, our company will be involved in two main development stages as follow:

First development stage

During the first development stage, a travel plaza consisting of a convenience store, fast-food restaurant, and a gas station along interstate 10 will start operation. For the convenience store, our company will offer a variety of service offerings that fall under six categories, which include tobacco products, food services, personal and home goods, packaged beverages, candy, and snacks, as well as alcoholic beverages such as beer and wine. For the fast-food restaurants, a variety of fastmeal options, offering ease and convenience for our customers, along with express take-out services and drive-thru will be provided. Our meal options will include options of pizza, pasta, burgers, and chicken as well as a variety of sandwich options, meeting the demand of our customers. As for the gas station, high-quality and branded fuel such as gasoline and diesel will be offered. Through 10 MPD’s with nearly 20 fueling positions, around six segregated truck diesel lanes with satellite hoses and truck parking will be offered to our customers. We will also be offering trucker dedicated merchandising with top-selling items.

Second development stage

During the second development stage, Fairfield Inn Suites hotel will be established. Our planned hotel will include a total of nearly 85 rooms with a mix of king rooms, queen doubles, and suites. Every room will share a variety of amenities, offering a positive experience to our customers. This will include flat TV screen, microwave, refrigerator, lounge chair, work desk, coffee maker, and iron with ironing board. Other facilities include access to the business center, swimming pool, and an exercise hall will also be granted to our guests.

Business Model

Mission, Vision, and Goals

Our vision

▪ To achieve sales by creating unique, creative, and superior service offerings through our planned travel plaza and hotel that could bring both satisfaction and pride to our customers.

▪ Achieve a strong product niche and brand image by nurturing and cultivating new ideas and concepts through ingenuity and innovation skills that could be achieved through continuous research processes in providing solutions to the varying demand of our customers.

Our

mission

▪ To achieve the highest degree of customer satisfaction, we strive to provide good product quality in compliance with quality standards. Our mission is hence to represent our customers as efficiently as possible by adhering to quality standards and meeting their desired specifications.

Business Goals

The key goals for our business include:

▪ To ensure we deliver high-quality, satisfying, and caring customer service support to all our visitors

▪ To always be the consumers' first preference within our reach area

▪ To ensure the business within the organization will always be customercentric.

▪ To train all the employees up to all high standards and let them aware of customer relationship management.

▪ To train the employees for managerial levels.

▪ Encourage, drive and support initiatives, innovation and creativity, capitalizing on opportunities to support operational goals, and strategies through our proposed co-working space and community space.

▪ Foster an open and supportive team culture to gain and disseminate direction, suggestions, and improvements at all levels of the business and build potential business partners.

Business Model

Critical Success Factors

Having links with suppliers

Maintaining strong relationships with raw material suppliers means we will be able to secure more favorable purchase prices, hence reducing our cost of sales along with ensuring financial sustainability throughout the forecast period.

Proximity to key markets

Operators in the convenience store and fast-food industries must locate themselves close to their potential customers. This will ensure convenience throughout the operation and supply chain process.

Being part of a franchising chain

There are many benefits to being part of a Marriott Hospitality family. Being a part of such a chain or franchised group means brand recognition and state-wide marketing to our business

Having a loyal customer base

Having a well-established presence and good relationship with local consumers is particularly important for operators that experience growing competition from chain stores and different retail channels.

Attractive product presentation

The layout of our proposed store must enable shoppers to easily navigate products. Additionally, the design and cleanliness of store space and product selection are key elements that attract shoppers into convenience stores.

Effective marketing strategy

Applying strong marketing strategies by having effective market campaigns on different social media pages will ensure our target customers are penetrated.

Business Model

Operational Process and Supply Chain

Chain Process

Producers in Florida

and Cigarette Wholesalers Soda Producers in Florida Baking Mix & Prepared Food Producers Petroleum Refining companies Candy Producers Oil Drilling and Gas Extraction Companies

Beef and Pork Wholesalers Soft Drink, Baked Goods Wholesalers

Business Model

Business Growth Strategies

2021-2022

Market Development Strategy

▪ Position our unique service offerings among our major players in the gas station, convenience store, fast-food, and hotel and motel industries.

▪ Develop partnership and agreement with travel agencies with referral discounts for tourists visiting our hotel

▪ Establish a strong customer base including customers within 1-5 mile radius of our company location and ensure convenient presentation of our services.

▪ Ensure our customers are fully receptive to our products and maintain a consistent brand image about the quality of our business to our customers

2022-2023

Financial Sustainability Strategy

▪ Increase revenue by offering high-quality services, meeting the demand of our customers in our reach area

▪ Reduce the associated costs as much as we can by collaborating with local producers and suppliers of necessary raw materials that we will be using in our operations

▪ Ensure financial sustainability and maintain profitability throughout the forecast period

▪ Increase production volume year over year and establish more partnership and collaboration with suppliers in the long run.

2022-2026

Customer Service Strategy

▪ From the start of our operations, we will provide the best value with our proposed service offerings including customer support and customer resolution center

▪ Reliable service with a high level of accuracy offered by highly experienced employees

▪ Partner with customers to provide solutions for any problem they might face and suggest options for improvements

▪ Invest in customer management

▪ Improve customer satisfaction and retention by employing different marketing strategies

▪ Customer support to assist our clients with their problems and complaints

Business Model

Roadmap and Future Milestones

2022

▪ Launch of the travel plaza center

▪ Start our marketing activities and ensure we are fully covering our target market

▪ Full commercialization of our products

▪ Start the second development stage – the establishment of Fairfield Inn Suites Hotel

▪ Start having initial referral agreements with travel agencies in the area

▪ Team building

Goals and Objective

2021

▪ First development stage – the establishment of the travel plaza

▪ Land preparation, building construction, and major engineering works throughout

▪ Electricity, water, and gas installation

▪ Purchases of major equipment for the convenience store, fast-food restaurant, and the gas station

▪ Initial purchases of raw materials and start stocking inventory by the end of the year

▪ Obtain necessary certification and licenses

▪ Start developing a partnership with major raw material suppliers and producers in the state of Florida

2024

▪ Continue marketing activities

▪ Expand the team for both the travel plaza center and the hotel

▪ Having a strong market base in the whole county of Jefferson

▪ More partnership with more sales agents and suppliers from different areas

2023

▪ Launch of Fairfield Inn Suites Hotel

▪ Start having a strong customer base of domestic US and international non-US travelers in the state of Florida

▪ Increase our gross margin and profit margin for the travel plaza center from the previous year

▪ Conduct ongoing marketing activities and expand our marketing activities to lure customers from different competitors nearby our area.

▪ Expand our service offerings to include a more diversified customer base by attracting customers within 5-10 miles

▪ Start having a strong team for the hotel and expand our team for the travel plaza

2025

▪ Viral marketing

▪ Remain profitable throughout the period

▪ Fully position our services among top players in the state of Florida

▪ Become a large market sharer in the industry

➢ Marketing Strategy

Marketing Strategy

XXXX will conduct several online and offline marketing activities with the end goal purpose to a attract larger customer base in our trade area. This can be done by employing different strategies including Recruitment Marketing Strategy, Customer Acquisition Strategy, and Customer Retention Strategy. The following are some of the major components that we will be employing:

Website

We will start developing our high-quality website showing all features for our location including the travel plaza and the hotel. This website will act as the first interactive place that will help our future customers get an impression of our service offerings. Besides, we will focus on optimizing our website through several search engine optimizations (SEO) and different digital marketing tools such as Google AdWords, Keyword Planners, and Google Alerts. Setting up our website is not sufficient, so we will invest heavily in making our website appear at the top of search results.

Social Media Strategy

As a part of our marketing strategy, our company is planning to invest a big percentage of its overall revenue only on marketing its services through social media campaigns and ads, targeting our preferred customer base. The company is planning to have an extensive network of social media platforms including that of TripAdvisor, Instagram, Twitter, and Facebook, so it can reach wide demographics and tourists worldwide.

Local marketing campaigns Through different resources such as the use of flyers, local newspaper advertisements, magazines, and word of mouth among consumers, our company will invest in local marketing activities that will help promote our service offerings.

Referral Marketing Strategy

Referral marketing is a marketing tactic that makes use of recommendations and word of mouth to grow a business’s customer base through the networks of its existing customers. For our company, we are planning to create a referral scheme program that offers discounts to both existing and new customers. We will also be following the same strategy with several travel agencies in the area as well as provide discounts for bookings through hotel booking platforms such as Booking.com, Agoda, etc.

Marketing Strategy

▪ Different websites, online magazines and newspapers

Social media campaigns

Booking platforms

Recruitment

Marketing Strategy

Marketing Mix

Product or Service

We will be offering a variety of services as a part of our proposed business such as:

▪ Convenience store (e.g., packaged goods, candy, snacks, tobacco, etc.)

▪ Fast food restaurant (e.g., pizza, sandwiches, burger, quick meal)

▪ Gas station (e.g., trucks and cars fuel services)

▪ Hotel and Motels (e.g., various rooms meeting the per capita income of different customer bases)

Price

We are following a low to medium pricing strategy, meeting the demand of our customers in our proposed reach area.

Target Market

Location

Our company will be headquartered in Interstate 10 (Exit #217) 2716 Gamble Road Monticello, Florida 32344

Promotion

Our marketing and promotion strategies will be offered through the following schemes:

▪ Recruitment Marketing Strategy

▪ Customer Retention Strategy

▪ Customer Acquisition Strategy

Financial Model

Sources and Uses of Funds

Total Fund Requested (2021+2022)

Financial Assumptions

Our Assumptions vs. Industry Benchmarks

Our Assumptions relative to industry benchmarks

We are closely matching

Our analysis and assumptions we have used in establishing the financial model is fully adhering and complying with industry benchmarks. As per our estimations, it appears that our analysis is closely matching the figures made by major players in the four industries of concern. This means our analysis is relatively realistic, though not 100% accurate since we provide an estimation for a future forecast of the market.