Central Park Campground

City of Crookston
Business Plan

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Contents
Executive Summary...................................................................................................3
Mission Statement.....................................................................................................4
Project Overview.......................................................................................................4
Opportunity Analysis & Target Market Research.....................................................4
Environmental Analysis.............................................................................................6
Competitive Analysis.................................................................................................7
Services......................................................................................................................8
Pricing........................................................................................................................9
Marketing Strategy & Promotional Plan...................................................................9
Management & Operations......................................................................................11
Financial Analysis & Projections............................................................................11
Conclusion...............................................................................................................12
References...............................................................................................................13

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 Executive Summary
This report outlines a business plan for the expansion of the Central Park Campground in
Crookston, MN. The updated Central Park Campground will include 48 full length RV spaces,
water, sewer, electric, new shower/bathroom facility, and a park directors office. Other nearby
entertainment amenities include a sand volleyball court, a dog park, fishing dock, and paved and
unpaved walking trails. For travelers wanting to experience more than nature, there are many
restaurants and shops around to enjoy.

Research was conducted to discover the primary target market and competitors. According to the
Results of the 2012 Minnesota State Park Survey (2013), the largest target market are baby
boomers. The baby boomers are starting to retire and are traveling more often. The competitive
analysis outlines direct and indirect competition, along with an analysis of the offerings and
prices of competitors. The marketing strategy is based on best marketing tactics outlined in the
2012 Minnesota State Park Survey (2013). The promotional plan details cost-saving promotional
ideas for the park, including an updated website, advertising on the Explore Minnesota website, a
highway sign on Highway 2, and brochures strategically located at tourist welcome centers.

The prices to stay at the campground are as follows: 1) $30 a night for full hook up; 2)
$1,442.81 for full hook-up, seasonal spot; 3) $1,2209.06 seasonal spot with only water and
electric; and 4)$1,122.19 for a seasonal just electric. The employees will consist of a park
director, four assistant rangers, and a park host. The average salary for each position are $46,000,
$33,000, and $18,000 respectively. The financial analysis outlines the parks budget for the first
five years. The first year will yield zero profit, and will not yield a profit in those five years.
Assuming a 10% increase in revenue, variable costs, personnel costs, and city support the RV
park will not turn a profit until twenty years later after opening the park. These numbers are
subject to change.

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 Mission Statement
Crookston Central Park Campground will provide an exceptional camping experience for
travelers in recreational vehicles who appreciate river access, bike paths, downtown shopping
and dining, swimming, a historic movie theatre and several other amenities.

Project Overview
The Camping and RV park industry is continually growing with the expansion of new parks and
the ability of the consumer to spend more. The project includes expanding the current RV park
located in Crookston, Minnesota, to satisfy the need for more RV camp sites in the region. This
RV park will be a combination of seasonal rentals and overnight spaces that provides hook-ups
for electrical, water, and sewer service. Over the past few years nearby parks in the region have
grown in their customer base, without the available capacity to serve demand. By serving as
another close option to these other area parks, the Central Park Campground can help to fulfill
this local demand. This park also has the advantage of being in a small town that can provide
the amenities of the city, while not being too crowded. The City of Crookston will own and
operate the RV Park and Central Park Campground facilities.

Opportunity Analysis & Target Market Research

According to the Travel & Tourism Market Research Handbook (2014), the current target
customer lies within the age group of 45- 64, and is married. The majority owns their home, and
have an average income of around $68,000. The most common person who falls in this category
are retirees or older parents traveling with their family on vacation. There has also been
significant growth in the 35 year old age group of travelers. The average vacation time spent by
this group of people is approximately 28-36 days, logging 4,500 miles traveling while on
vacation (Miller, 2014).

According to the Results of 2012 Minnesota State Park Visitor Survey (2013), 27% of attendees
were under 18 years of age, 28% were 19-44 years old, and 46% were 45-65+ years of age. This
proves that the age of people attending these campgrounds are primarily baby boomers. Another
statistic shows that in 2012 61% of campers attending campgrounds in Minnesota, were adult
parties only. The other 39% were adults and children. The majority of adult-only parties were 2
adults, at 38% of the total number of people attending. Out of all of the visitors, it also shows
that 48% of them held a fishing license (Kelly, 2013), therefore it is important to stress the
fishing opportunities in and around Crookston.

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5
 Environmental Analysis
Many environmental aspects can affect the operation and success of the Central park
Campground. One of the major strengths is that the park already exists, which would allow for
an easy updating of the campground. Additionally, the park is located on a river, has access to
many walking/biking paths, and is near restaurants and shopping.

One of the weaknesses of the campground is the proximity to the highway. It may make access to
the campground easier, but while staying at the RV park the noise made from the amount of
traffic coming into Crookston from Highway 2 could become a nuisance to visitors. Currently
there is not a large awareness of the parks existence. The website is insufficient and there isnt a
large web presence for the park. Also, during the spring time there is a high possibility of
flooding and ice damage from the river. This could raise costs due to clean up and damages.

One prominent opportunity is that gas prices are falling across the country, giving travelers the
ability to travel further and more often. A large market opportunity this park has are travelers
from Canada. With close proximity to the Canadian border, this park could provide a spot to rest
or spend a season for Canadian commuters. Another major opportunity of the campground is
that there is the potential to partner with receive regional resources. With a University in the area
that has many natural resources majors and clubs, the campground could offer community
service by having the clubs and groups clean the campground in the beginning of the season.
This would allow student groups in the community achieve their required community service
hours goals, while saving the city money. Additionally, there is the potential to hire these
students as summer workers/interns.

Another potential opportunity is to become Green Friendly Park by following the ARVC Plan-
It-Green criteria. If a park makes 9 of the 18 criteria, then they can be considered a Green
Friendly Park (Tomasso, 2010). This gives the park a larger marketing opportunity by
providing environment friendly services that appeals to campers, and also expand the Central
Park Campgrounds web presence. For the complete list of criteria required, visit
http://www.eplerwood.com/beta/images/Tomasso Grad Project_RV park
sustainability_2010_XII.pdf.

Some of the threats to the new park include other RV parks within the region. As you will see in
the competitive analysis, there are many other regional options for RV travelers to choose from
nearby. A second threat is the decline in value of the Canadian dollar. Over the past few years
the value of the dollar has dropped, making it less appealing for Canadians to visit the United
States for shopping and travel. This could potentially decrease the amount of travelers coming
from Canada.

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 SWOT Analysis

Strengths
Already existing park in place for easy updating
Access to river, walking/biking paths, nearby
restaurants and shopping
Weaknesses
Not a lot of awareness among consumers of the
current parks existence
Close proximity to the highway; noise
Ice and flooding from the river

Opportunities Threats
Falling gas prices encourage traveling
Large consumer market from Canada Many other RV and camping parks in
proximity to the area
ARVC Plan It Green Drop in Canadian dollar value
Opportunities to allow University of Minnesota
Crookston clubs and groups to volunteer to
clean-up the grounds

Competitive Analysis
Direct competition includes full-hook up RV Parks that have some/most of the same amenities as
Central Park Campground. The largest competitor is the Red River State Recreation in Grand
Forks, North Dakota. It is a very large RV park that has the same amenities as Central Park
Campground, as well as others not offered in Crookston. Other top competitors include 1)
Voyageurs View, in Red Lake Falls, MN; 2) St. Hilaire City Park St. Hilaire, MN; 3) Union
Lake Sarah Campground in Erskin, MN; 4) Turtle River State Park in Arvilla, ND; 5) Tillberg
Park on Cross Lake in Fosston, MN; 5) Red River State Recreation in East Grand Forks, MN; 6)
Voyageurs View in Red Lake Falls, MN; 7) Northwest Acres Campground in Stephen, MN; 8)
Gilbert Olson or Horseshoe Park in Hallock, MN; 9) Old Mill State Park in Argyle, MN; 10)
Holiday Park Campground in Warren, MN; 11) Island Park Municipal Campground in Argyle,
MN; 12) Marshall County Park at Florian in Stephen, MN; 13) Lakeview Resort in Mentor,MN.
Below is a table listing competitors with main prices and extra fees they charge at their park.

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 Park Price
Grand Forks Campground RV Park
$30/day
(Grand Forks, ND)
Union Lake Sarah Campground
$18/day (no electric), $23/day (electric), $300/month
(Erskine, MN)
Turtle River State Park (Arvilla, ND) $20/day
Tillberg Park on Cross Lake (Fosston,
$23.51/day, 245.81/monthly, 1068.75/season
MN)
Red River State Recreation (East $8-10(reservation), $15-23/day, $8 (add electric), $6 (add
Grand Forks, MN) water)
Voyageurs View (Red Lake Falls,
$35(holiday), $28/day
MN)
Northwest Acres Campground
$15/day, $225/month (plus 6.875% tax)
(Stephen, MN)
Gilbert Olson or Horseshoe Park
$15/day, $100/week, $175/month
(Hallock, MN)
Old Mill State Park (Argyle, MN) $15-$23/day, $8.50-$10 reservation fee
Holiday Park Campground (Warren,
$16-$30/day, $75-$125/week, $350/month, $850/season
MN)
Island Park Municipal Campground
$9/day, $175/month
(Argyle, MN)
Marshall County Park at Florian
$10-$25/day, $125/week, $600/month
(Stephen, MN)
Lakeview Resort (Mentor,MN) $15.50/day

Services
The campground will be in operation May 15th- October 15th annually. Central Park Campground
will consist of 48 full length RV spaces. Other amenities include water, sewer, electrical, a new
shower/bathroom facility, and a park directors office. The entertainment amenities include a
sand volleyball court, dog park, fishing dock, and paved and unpaved walking trails. Around the
park are shopping, restaurants, public library, the Historic Grand Theater, community swimming
pool, downtown square event space, hiking/walking trails, a variety of churches, and a local
fishing supply store. Also located nearby is the Highland complex which has a splash pad,
playground, skate park, baseball fields, tennis courts, and a basketball court. This campground
will meet the needs of customers by providing the amenities of an RV park, but with the comfort
of the city. Campers will be able to have all of the amenities of a city just a walk away. The
Central Park Campground is the place to stay for campers who want to explore the northwestern
region of Minnesota while enjoying the comforts of the city.

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 Pricing
Full hook-up spaces will be priced at $30 a night for daily stay, with a limit up to two weeks.
There are 48 spaces possible for full night hook-up, giving the campground the potential to earn
$216,000 in gross profit per season if at full capacity. This does also not including extra holiday
costs or other fees. Listed in the table below are the prices for a seasonal stay. These are based
on the amenities the customer chooses to utilize:

Full Season Prices

$1,442.
Full Hook Up
81
Just Water and $1,229.
Electric 06
$1,122.
Just Electric
19

Other fees are recommended for creating higher revenues each season. These could include, but
are not limited to: entrance fees, reservation fees, holiday fees, and separate prices for water,
electric, and sewer. These other fees are optional for the park, however having extra fees,
especially during the holiday seasons, can boost profits up while guests are traveling the most.
An example is a reservation fee of $10-$15 dollars. This ensures the customer that they will have
access to the spot they want, but also earning a little more revenue for the park. Another would
be higher prices during holidays like the Fourth of July, Memorial Day, Labor Day, etc. Most RV
parks raise their daily and reservation fees during these times because of high demand. A
suggest price would be $20-$25 reservations fee, and $40-$45 daily price. It is not a high
increase that will turn off customers, but enough to create more revenue.

Marketing Strategy & Promotional Plan

According to the Results of 2012 Minnesota State Park Visitor Survey (2013), websites
accounted for 40% of the resources used by visitors of state parks. Family and friend referrals
accounted for 54%, while other resources include Minnesotas state highway maps (31%),
recreational opportunity maps and directories (15%), and chambers of commerce/convention and
visitors bureau (12%). By applying some or all of these tools, the park will be able to efficiently
increase attendance.

The first tool in the promotion plan includes an upgraded website. Preferably the website would
be hosted by the Citys current website to save both money and time. The Central Park
Campground website should include a list of the new amenities, prices, fees, and photos of the
campground. Also, any restrictions, rules, limitations, etc. should be included. Another website
that would be available to advertise on would be the Explore Minnesota site. Hundreds of
campgrounds and business are listed on this site for tourists to find the right location for them to
visit. Listings on Explore Minnesota are free to qualifying organizations. Free postings include
general information, editable lure copy, and one photograph, Trip Advisor ratings and reviews,
and deals. Paid listing are available that include upgrades costing between $300 - $1700 dollars

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per year depending on the type of listing chosen. The best choice for this campground would be
the enhanced listing priced at $375. This choice allowss the campground to have all of the
features of the free listing as well as an enhanced display on Search Results and listing detail
page, and the option to build a brochure page (Why Advertise on exploremn.com, 2016).

A second recommended advertising option is a highway sign on Highway 2. The highway sign
that is the best fit for the RV park is a specific service sign. The specific service sign represents a
tourist-oriented business that can only be installed in rural areas at ag-grade intersections or at
rural bypasses that have interchanges on expressways. (Supplemental Guide Signing Programs,
2016). There are many specific qualifications needed to put these signs up. For more details
contact the Minnesota Department of Transportation in Bemidji at 218-755-6574.

The last type of marketing tool that would be effective are brochures at visitors centers. A
simple tri-fold brochure, in color, would cost $206 for 1,000 from Brander printing. This is a
fairly cheap way to advertise the Central Park Campground while reaching a large region.
Visitors centers get a lot of traffic, especially in the summer, and contain a wide range of tourist
information that points visitors in the direction of local business and campgrounds. This would
be an effective way to reach those tourists. Some visitor centers that would a prime location
include centers in Grand Forks, East Grand Forks, Detroit Lakes, and Bemidji. Also there is a
visitor center going west on Highway 2 towards Grand Forks that gets some visitors that are
traveling. Other than visitor centers, the brochures could also be placed at the campground in
Grand Forks to hand out whenever they get overwhelming demand.

Listed in the table below is the marketing budget for the promotion plan. This shows the lowest
possible price for each tool. Prices are subject to change.

Marketing Budget
Upgraded
$0
Website The Central Park Campground is a unique campground in
Explore the way that it is located just inside the city of Crookston.
$300
Minnesota This allows travelers to experience camping while
Highway Sign $854 enjoying the comforts of the city. This inspired the
Brochures $206 (1,000) Central Park Campground slogan: Nature in the City.
Total $1360 Below is a concept for the new park logo.

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 Management & Operations
The employee plan includes a director/ranger who will manage the RV park in the summer, and
also manage the Crookston Sports Center in the winter. This will increase the efficiency by
having only one manager to control both locations, without needing to have a seasonal manager.
The other employees at the RV park will include three to four assistant rangers, and a park host
that will help customers get to their spot and keep the facilities and grounds clean. According to
Simply Hired, a RV Park Directors average annual salary is $46,000, an Assistant Park Rangers
average annual salary is $33,000, and lastly a Park Hosts average annual salary is $18,000
(Simply Hired, 2016)

Financial Analysis & Projections

A reserve fund will be established from anticipated profits to be used for ongoing maintenance
and future expansion or improvements. As shown in the table below, the park will remain in debt
in the first five years of business. Keeping an annual 10% increase in revenue, variable costs,
personnel costs, and city support the RV park will not turn a profit until twenty years later after
opening the park. These numbers are subject to change.

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 RV Park
Financials

Year
1 Year 2 Year 3 Year 4 Year 5
8220 120349.0
Revenue 0 90420 99462 109408.2 2

Fixed
Costs:
Supplies 7000 7000 7000 7000 7000
Maintenanc 2000
e 0 20000 20000 20000 20000
Debt 1003
Payment 00 100300 100300 100300 100300

Variable
Costs:
4500 52643.63
Utilities 0 46800 48672 50618.88 52

Administra
tive
Expenses:
1338 139176. 144744.0 150533.8 156555.1
Personnel 24 96 3 0 5 Conclusion
The
Funds expansion of the
City 2239 201531. 181378.4 163240.5 146916.5 Central Park
Support 24 60 4 9 3 Campground in
Crookston, MN
- will help to satisfy
21325.3 - - - demand for RV
Profit 0 6 39875.59 55803.88 69233.23 camping spaces in
the region. The target market for the Central Park Campground is married couples ages 45-64
who are retired or traveling with their teenage/grown children. These individuals make an
average household income of $68,000 per year, travel an average of 28-36 days per year, and
travel approximately 4,500 total miles in their RV per year. There is a significant amount of
competition in the region, however many of the competitors are reaching capacity and turning
away customers, creating an opportunity for the Central park Campground. In order to promote
the campground, marketing tactics such as an updated website, Explore Minnesota advertising,
highway signs and strategically place brochures should be employed. In order to effectively
manage the campground, a park Director, 3-4 park rangers and a park host will need to be
employed. Lastly, this business plan outlines some basic financial projects for the campground.
Currently, it does not appear that the Central Park Campground will turn a profit in the first 5
years of operations. It appears that the City of Crookston will need to contribute some additional

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monetary support, reconsider the pricing structure and/or seek out partnerships and grants in
order to make this venture profitable within five years of beginning operations.

References
Good Sam RV Travel Guide & Campground Directory. (n.d.). Retrieved April 18, 2016, from
http://www.woodalls.com/articledetails.aspx?ArticleID=2575549

Explore millions of jobs... with just one search. (n.d.). Retrieved May 01, 2016, from
http://www.simplyhired.com/

Kelly, T. (2013, October 13). Results of 2012 Minnesota State Park Visitor Survey(Rep.).

Miller, R. K., & A. (2014). Travel & tourism market research handbook 2013 -2014. Loganville,
GA: Richard K. Miller & Associates. Retrieved 2015.

Minnesota Department of Transportation. (n.d.). Retrieved April 18, 2016, from

http://www.dot.state.mn.us/logosigns/

Northwest Acres Campground. (n.d.). Retrieved May 06, 2016, from

http://www.stephenmn.com/NorthwestAcresCampground

Old Mill State Park. (n.d.). Retrieved May 06, 2016, from
http://www.dnr.state.mn.us/state_parks/old_mill/index.html

Population estimates, July 1, 2015, (V2015). (n.d.). Retrieved 2015, from

http://www.census.gov/quickfacts/table/PST045215/27

Red River State Recreation Area. (n.d.). Retrieved March 21, 2016, from
http://www.dnr.state.mn.us/state_parks/red_river/index.html

RV Park Industry: A Ten Year Snapshot. (2011). Retrieved 2015, from

http://www.campval.com/resources/Industry report for upload.pdf

Spring & Summer. (n.d.). Retrieved May 06, 2016, from http://www.hallockmn.org/spring-
summer-recreation-1/

St. Hilaire City Park. (n.d.). Retrieved March 22, 2016, from
http://www.visittrf.com/Location/st-hilaire-city-park

Supplemental Guide Signing Programs [PDF]. (2013, November). MnDOT Office of Traffic,
Safety and Technology.

Tomasso, L. P. (2010, December 13). A Study of Sustainability at RV Parks. Retrieved April 9,

2016, from http://www.eplerwood.com/beta/images/Tomasso Grad Project_RV park

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 sustainability_2010_XII.pdf

Voyageur's View - General Information. (n.d.). Retrieved March 22, 2016, from
http://www.voyageursview.com/info.html

What is indirect competition? - Definition from WhatIs.com. (n.d.). Retrieved April 18, 2016,
from http://whatis.techtarget.com/definition/indirect-competition

Why Advertise on exploremn.com [PDF]. (n.d.). Explore Minnesota Tourism.

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