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Thomas Denuel Brandon Dieffenbach Justin Lochel COLLEGE OF BUSINESS

ADMINISTRATION

Prescott May


STORY

After the 2007 tornado

Today


Who is GreenTown?

Mission: To provide inspiration + leadership to Kiowa County in order to be a model of sustainable living for the world.

Vision: •  Make green easier •  Engage the community •  Spur economic development •  Connect green suppliers to green consumers •  Educate everyone they come in contact with


What it can be. is not a limited project, it’s an open-minded organization engaging to educate the United States and even the World about sustainable building. Greensburg and Joplin shared the same experience. GreenTown connected them in order to share and spread the word around. Serving as a model to other cities by providing more sustainability oriented support and networking.


Locations

The vision we had from the GreenTown project was going further than the borders of Kansas and Missouri. That is why in order to be able to expand GreenTown as a Parent Brand for other cities and communities, we wanted to propose a new creative direction of the GreenTown image by simply reorganizing the logo and its structure. This is what it would look like:


Locations Therefore The Greensburg location becomes:

And when Greensburg and Joplin have a common event, they could use this ‘source’ logo:

is the parent brand. The Joplin location becomes:


Locations Silo Eco-Home: On May 5th, 2007, the day after the tornado, Greensburg residents looked north and saw the grain elevator standing tall. To honor the durability of this structure GreenTown was proud to showcase: The Silo Eco-Home as the first in the Chain of Eco-Homes

Meadowlark House: In 2009, GreenTown partnered with FreeGreen.com to hold an international design competition. Over 150 teams from 38 states and 13 countries entered.

2009

Fall 2011


Locations

Joplin:

Greensburg GreenTown has worked with Joplin residents and sustainability experts from throughout southwest Missouri to launch GreenTown Joplin. Their mission is to recover as sustainably as possible, and serve as a model for other communities.


e Market •  e B&B industry has an estimated worth of $3.4B •  ere are no companies with a dominant market share in this industry •  ere are currently 4,209 companies in the US, legally registered as a Bed and Breakfast •  e industry will continue to be segmented on the basis of facilities and price (largely influenced by local attractions) •  e B&B industry moves and reacts to many external forces •  Economic Forces •  Technological Forces •  Social Forces •  Political Forces


e Market Do you offer online reservations?

24.4%

Where do you offer online reservations? 75.6% 3.2%

•  Yes – 387 •  No – 125 •  GreenTown answer - No

10.9%

11.7%

44.2%

Impact of online offerings on sales?

30.1%

•  •  •  •  •  • 

27.8%

My website – 341 BedandBreakfast.com – 232 Expedia – 90 Other – 84 Booking.com – 25 GreenTown answer – N/A

70.8%

•  •  •  •  Source: March 2011 Innkeeper Survey

1.4%

No Impact – 298 Increased – 117 Decreased – 6 GreenTown answer - unknown


î “e Market What new tactics are you implementing to increase reservations? Tactics

Responses

GreenTown

How GreenTown may Benefit

Nothing

21.4%

Facebook

20.0%

Redesign Website

18.1%

Dedicated GreenTown Website

Increase Rate, Offer Special Pricing

8.5%

On/Off Season Pricing, Repeat Discounts

BedandBreakfast.com

7.3%

Use Industry Resources to increase Visibility

Google Ad words

6.6%

Low Cost Advertising Tactics

Professional Photos

5.2%

Could be Effective with a Dedicated Website

Start Blog

4.2%

Online Reservations

4.0%

YouTube

3.3%

GT

Twitter

1.4%

GT

Source: March 2011 Innkeeper Survey

GT

GT Opportunity to Attract New Customers


SWOT+T Weaknesses

Strengths

›  ›  ›  › 

Inspirational Story Fantastic Facilities (green, sustainable) GreenTown Mission Niche Market

›  ›  ›  › 

Opportunities

›  ›  ›  › 

Threats

Connect with Existing Groups + Firms Integrated Rating System Growing Green Movement – “Green Living” Potential Partnership Opportunities

›  ›  ›  › 

Trends

›  › 

Low Brand Visibility + Awareness Limited Geographic Reach Fragile Relationship with Community Need For Funding

Costs Associated with Green products Extensive Regulations for B+Bs Competitors Have Arrived Insufficient Interest to Support the Business

Green Tourism Virtual Tours (Greensburg + Joplin)


Financials Silo House

Meadowlark House

Total Cost$180of Ownership $84 Fixed Costs

Electric Gas

$29

-----

City Utilities Charges

-----

$47

Phone & Internet

$200

$200

Insurance

$133

$67

Property Tax

$333

$333

Advertising

$83

$83

Handyman Service

$250

$250

Yard (May-Aug)

$40

$40

Cleaning and Supplies

$30/room

$30/room

Breakfast

$4/person

$4/person

Variable Costs


Financials Breakeven Analysis: Silo House BEP=​"#$%&  '()*)/(,-#.%  −/0-#012%  '()*))  Single Occupancy •  BEP=14,656/(100-34) •  BEP= 222 nights (62% occupancy) Double Occupancy •  BEP=14,656/(110-38) •  BEP= 204 nights (56% occupancy)


Financials Breakeven Analysis: Meadowlark House BEP=​"#$%&  '()*)/(,-#.%  −/0-#012%  '()*))  2 Rooms 1 Bath (3 guest avg.) •  BEP=13,180/(150-72) •  BEP= 169 nights (46% occupancy) Master Suite with Private Bath (2 guest avg.) •  BEP=13,180/(110-38) •  BEP= 183 nights (50% occupancy) Whole Home (5 guest avg.) •  BEP=13,180/(300-110) •  BEP= 69 nights (19% occupancy)


Financials Current Projections @ 50% occupancy year round (183 nights) Silo house •  1 Guest- ($2,578.47) o TR=$18,300 TC=$20,878.47

•  2 Guests- ($1,480.47) o TR=$20,130 TC=$21,610.47


Financials Current Projections @ 50% occupancy year round (183 nights) Meadowlark House •  2 Rooms 1 Bath- $1,094.34 o TR=$27,450 TC=$26,355.66

•  Master Suite with Private Bath- $0 o TR=$20,130 TC=$20,130

•  Whole Home- $21,590.34 o TR=$54,900 TC=$33,309.66


Financials Pricing Recommendations Goal is to create 5% gross profit @ 50% occupancy Silo House

Current price

Recommended Minimum Price

Price Difference

1 Guest

$100/night

$119.79/night

$9.79

2 Guests

$109.99/night

$123.99/night

$14.00

Meadowlark House

Current Price

Recommended Minimum Price

Price Difference

2 Rooms 1 Bath

$149.99/night

$151.22/night

$1.23

Master Suite with Private Bath

$109.99/night

$114.99/night

$5.00

Whole Home

$299.99/night

$191.12-$299.99 night

Seasonal


Objectives

•  •  •  • 

Expand the GreenTown Brand Develop strategy to create affiliates Broaden exposure + customer base Increase website traffic


Strategies

•  •  •  •  • 

Benchmarking other Eco-Homes + Green B+Bs Benchmark other affiliate based organizations Generate funding through donations, increased occupancy, creating affiliates Use affiliate marketing Use social media


Tactics

•  •  •  •  •  •  • 

Join local + national B+B/Travel websites to increase exposure Market on state tourism sites/literature Differentiate by marketing the education benefits, not just experience + quality Market the concept of being an affiliate Allow for Online Reservations + Reviews Use contact info to earn business months/ incentives to previous supporters Design website dedicated to each B&B


Implementation

•  Monitor website traffic (Google Analytics) •  Development of reporting methods •  Revenue sources •  Evaluate successes/failures annually


THANK YOU FOR YOUR ATTENTION

Questions?


GreenTown Presentation