SM & S Berry Pty Limited

T/as Targeted Internet Marketing Services

ACN 060 645 730

Sue McGrath
South Coast Boutique Accommodation
115 Headland Drive
Gerroa NSW 2534

RE: One-on-one Consultancy assistance for the development of a Strategic Marketing Plan
for South Coast Boutique Accommodation

Dear Sue,

Thank you for your participation in developing this plan to enable the future success of your
new business.

We acknowledge the support of the Department of State & Regional Development by way of
the adoption of DSRD recommended guidelines outlined for the preparation of a marketing
plan contained in the DSRD Home-Based Business Action Program.

We appreciate the DSRD assistance which has made it feasible to provide a more
comprehensive one-on-one consultancy to SCBA, which has been used to assist in the SCBA
initiative to provide a superior advisory service to the more discerning niche of South Coast
Tourism.

Best regards,

Sue & Mark Berry

Directors

'The Bower' • George Bass Drive • Broulee • NSW • 2537

Phone: 02, 4471 8666 • Fax: 02, 4471 8694 Email: Marketing@thebower.com.au
MARKETING PLAN for South Coast Boutique Accommodation

Contents:

EXECUTIVE SUMMARY ...................................................................................................................... 3

MARKET ANALYSIS ............................................................................................................................ 4
Target Market[s] – Who are the Customers?.................................................................................... 4

Details of the Market ................................................................................................... 5
 Supply Side: Owners .................................................................................... 5
 Demand Side: Guests................................................................................... 6

Competition ................................................................................................................. 9
 Competitive Analysis: ................................................................................ 10

Environment............................................................................................................... 11
SERVICE ANALYSIS........................................................................................................................... 12

Description................................................................................................................. 12

Comparison ................................................................................................................ 12

Some Considerations ................................................................................................. 12
MARKETING STRATEGIES ............................................................................................................... 13
MARKET MIX .............................................................................................................................. 13

Image ......................................................................................................................... 13

Features & Benefits.................................................................................................... 13

Pricing........................................................................................................................ 14
 Supply Side: Owners .................................................................................. 14
 Demand Side: Guests [Tariffs]................................................................. 14

Customer Services ..................................................................................................... 14

Advertising/ Promotion.............................................................................................. 15
EXECUTIVE SUMMARY

South Coast Boutique Accommodation Services [SCAS] will provide a highly personalised
accommodation advisory service for the South Coast region. The aim of this service is to
increase visitation of the more discerning, high disposable income segment of the domestic
[and to some extent the in-bound] tourism marketplace, to the South Coast region.

In this niche, SCAS will act as a co-ordinator on behalf of the many single property/owner
venues which do not have the resources to provide for their own promotion, booking and
management needs. The advantage of this is that SCAS provides economies of scale [&
highly levels of professionalism] in the promotion and service delivery in the market segment.

SCAS Objectives:

1. To identify, select and assist the premium holiday rental properties in the region to
accommodate the above visitor’s, ensuring their South Coast experience is
exceptionally positive.

2. To attract additional first time and repeat visitors (at the premium end of the market)
to the South Coast and place them in quality accommodation venues, whilst providing
guidance to the appropriate local attractions.

This will be achieved through the practical implementation of an iterative strategy & marketing
plan for SCBA. The promotional plan has been designed in stages, to utilise direct mail to
owners, travel editors, travel guide books and previous guests in conjunction with alliances
with strategically selected local attractions as well as Shoalhaven Tourism.

Results will be monitored and assessed in the development of the later stages of the plan,
when other channels such as [more extensive] magazine & newspaper advertising may be
considered.

The marketing plan is based on proven techniques, augmented by a selective use of

technology, where and only where, elements of the action plan can provide a personalised
service for individual clients and guests, in a targeted and cost effective manner.

This marketing plan has been designed to assist SCBA to promote and market South Coast
Boutique Accommodation and in particular to:

1. Review existing Market Research in selected behavioural market segments with a

view to selecting and attracting:
• Local Properties meeting quality criteria
• Potential discerning guests and visitors to the South Coast region
2. Review existing Market Research in selected geographical market segments with a
view to attracting & developing:
• International visitors, who typically demand more personal advice and “hand
holding”
• Linkages with selected overseas market operators who require an Australian
“presence”.
3. Develop and finalise branding, promotional copy & imagery to represent & reinforce
the professionalism & personalised “caring” service offered by SCBA.

4. Select, customise & develop integrated systems, processes and documentation to

enable and ensure a highly professional service with a streamlined workflow for all
staff. Most importantly, these systems, website and documentation will be designed
to include measurement systems to track sources of enquiry, guest demographics
and feedback data to dovetail with the evolving overall marketing strategy.

This approach would not be feasible for many of the owners that SCBA represents.
MARKET ANALYSIS

Target Market[s] – Who are the Customers?

Tourism on the South Coast has experienced strong growth over the last 10 years. In addition
to the promotional efforts of Shoalhaven Tourism combined with it’s partner’s in the South
Coast Tourism region, driving holidays [from the capital cities] and weekend breaks have
become more popular, augmented by threats such as terrorism, SARS etc. which have
encouraged short breaks intra-state travel, as an alternative to international holiday travel.

While South Coast Boutique Accommodation will operate predominantly in the Shoalhaven
City area with selected properties in Kiama and Eurobodalla local government areas, the
1
following statistics complied by South Coast Regional Tourism give only a general
background to the market niche within which SCBA will operate.

Domestic Overnight Visitors – Over 2.6m individual visitors stayed 1 or more nights on the
South Coast in 2002-2003. They stayed for nearly 11m visitor nights and 73% of the those
stays were for Holidays or leisure, with 21% visiting friends or relatives and just 4% of those
visitor nights being for business purposes. 93% of these visitors travelled in a private vehicle,
[although this was prior to the Qantas service to Melbourne being introduced to Albion Park].
Notwithstanding, experience from the accommodation properties with proximity to Moruya
Airport in neighbouring Eurobodalla Tourism region would suggest caution before projecting a
significant change in this trend.

The predominant age group for the South Coast region is between 25-44.

International Visitors – A significant number [62,000] of international visitors, with the

highest proportion [28%] being from the UK and with 48% of international tourists using a hire
car as a mode of transport. 47% of these visitors chose to stay at hotels, resort or motor inn,
as opposed to caravan parks or visiting friends and relatives.

1Source: Tourism Research Australia, Survey Year ending June 2002-2003, cited in the Report Shoalhaven
– Economic Impact of Tourism, Tourism Shoalhaven.

Details of the Market
2
The data below was extracted from a survey of a group of B&B’s and self-contained
holiday accommodation properties, ranging from beach frontage properties to heritage
B&B’s in towns along the Princes Highway.

 Supply Side: Owners

Monthly Availability

356 July 365 August 395 Sept 314 Oct 375 Nov 369 Dec 261 Jan 348 Feb 409 Mar 332 Apr 409 May 389 June

The Moruya Boutique accommodation group reported available capacity throughout

the year, including January, and a surprisingly steady availability profile, month on
month.
The following chart shows the available inventory during weekends, as well as for
midweek nights, reported in the Moruya research.

Availability by Weekdays
78%

80%
70%
22%
60%
50%
40%
30%
20%
10%
0%
Weekends Midweek

1031 3669
Number of days

This demonstrates potential business opportunities for conferences, honeymooners

and business travellers.

2 Survey of Moruya Boutique Accommodation Group, 2002-2003

  Demand Side: Guests

• Guest Origin

The following chart shows the strength of the Sydney market, even towards the
southern end of the South Coast. Prior experience in the Shoalhaven & Kiama, has
demonstrated that the predominant origin of the Sydney guests has been from inner
west and eastern suburbs.
40%
35%
35%
• Demand from Sydney has increased dramatically as Sydney people increasingly
29%
30% discover the advantages of a South Coast holiday as an alternative to the traditional
25%
Central & North Coastal Holiday, particularly at the high end of the market.
20%
15%
15% 12%

10%
5%
5% 2%
1% 1% 0% 0%
0%
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The Moruya research shows a strong representation from the Canberra market, due
to its closer proximity to the South. Anecdotally, the Shoalhaven & Kiama regions
benefit even more from the closer proximity of the much larger Sydney market.

Meanwhile, in recent years, the increasing prevalence of flexible working hours in the
private sector [in addition to the public sector] and the encouragement by employers
to take multiple short breaks rather than long annual leave has enabled more people
to take weekend breaks of longer duration, which has in turn made a 2-4 hour drive
from Sydney more feasible.

Up market stylish self-contained and B&B accommodation, professionally presented

holiday accommodation properties and complemented by unobtrusive service through
attention to “the little things” is highly sought after within the increasingly discerning
client marketplace.

• Age Profile of Boutique Accommodation Guests – 90% of guests over 30.

40% 38%

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The survey result reflects the strength of the market for professionals, and business
people who wish to experience something “out of the ordinary [hotel/motel
accommodation]”. Moreover, the combination of relaxation, coastal and local touring
and local attractions including eco, beach & romantic getaway venues, demonstrate
the importance of highlighting and selling the local attractions of the area.

• Gender of Booking Initiator

38%

62%

Female made the booking Male made the Booking

The chart above shows the gender breakdown of the people who actually make the
initial contact for a booking.
 We will be selling primarily to (check all that apply):
Total Percent of Business.
1. Private sector _____√_____ ____80%___
2. Wholesalers ___________ ___________
3. Retailers ___________ ___________
4. Government _____√_____ ____10%____
5. Other - Corporate _____√_____ ____10%____

• Mid to upper income business and professional people seeking

respite from their busy lives [and in some cases, the kids], or an
opportunity to catch up with friends/family.
• Discerning people
• Mature couples
• Accommodation for singles, couples and groups including families

We will be targeting customers by:

1. Services. Good “old fashioned” advisory service for
those who refuse “to be chained to a
computer”
2. We will target specific groups families
wedding, corporate, conference and function
organisers
Romantic couples, honeymooners,
“Pampadours, Compatriots, Groupies,
3
Wanderers “
3. Geographic area? Which areas? Sydney & surrounds plus selected
International Markets [medium term]
4. Sales? We will target sales of $ 300,000 Gross Rental Revenue
5. Industry? Our target industry is _________n/a_______
6. Other Behavioural segmentation – Romantic
Couples & family getaways, Smaller
Conferences,

How much will our selected market spend on our type of service this coming year?

From the latest available statistics for the South Coast Region in the y.e. June 2003, there
were a total of 2.6 m domestic and 62,000 international overnight visitors to the South
Coast Region. During this time there were 351,000 room nights occupied in the 1,992
guest rooms in the region. The average annual occupancy was 48.3 per cent and there
4
were total accommodation takings of $29.6 million .

Conservatively, we estimate that the up-market Boutique accommodation sector will spend
approximately $ 1 million [on accommodation] per year.

3 “See Australia” campaign, segmentation methodology, Graham Perry “A segmentation Appoach to

Sustainable Tourism”, September 2004.
4 Australian Bureau of Statistics, Survey of Tourist Accommodation, 2002, cited in Shoalhaven –

Economic Impact of Tourism, Profile and statement of Economic Impact, y.e 31 Dec 2003, ISSN 1035-
144

Competition
Who are our competitors?

NAME South Coast Accommodation Services [Harcourts]

ADDRESS www.accommodationsouthcoast.com.au
Years in Business ____________18 months________
Market Share _____________________________
Price/ Strategy In-consistent pricing for different owners & guests
Product/ Service Property Sales, rentals & holiday lettings
Features __________n/a________________

NAME South Coast Holidays Online

ADDRESS http://www.southcoastholidays.com.au
Years in Business ____________4 years____________
Market Share _____________________________
Price/ Strategy _____________________________
Product/ Service holiday lettings
Features _____________________________

NAME Tourism Kiama

ADDRESS http://www.shoalhavenholidays.com.au
Years in Business ____________ ? _______________
Market Share _____________________________
Price/ Strategy Typically target price conscious “True Traveller & compatriot” market
segment
Product/ Service Tourist information
Features _____________________________

Also, other regions that will be considered by our clientele as a holiday region option
e.g.
• Blue Mountains
• Central Coast
• North Coast
• Other Australian States including Qld, Vic & Tasmania
• Pacific Islands

How competitive is the market?

High _________√___________
Medium _____________________
Low _____________________
  Competitive Analysis:

List below your strengths and weaknesses compared to your competition (consider such
areas as location, size of resources, reputation, services, personnel, etc.):

Internal:
Strengths
Personal Service & obsessive attention to detail
Knowledge of Properties, all properties personally
inspected
Professional Image & Branding
Relationships with Owners & Guest Clients
Experience & reputation in Industry
Specialisation in discerning, high value clientele
Knowledge of local area and attractions
Previous accommodation industry experience
Extensive sales, sales management & marketing
experience
Weaknesses
Small operator, “one man band”
New business startup - corporate branding
awareness
Total reliance on principal in early stages
Need to recapture previous client base
Limited financial resources
Limited access to previous guest
demographic data

External:
Opportunities Threats
Cater for the segment of the mature market that Increasing fuel prices
eschews “technology for technologies sake”
Capitalise on the current headlong rush towards Discount air fares
technology, implemented by competitors, often in a
way that decreases personal service
Capitalise on current turmoil being experienced by Difficulty in sourcing satisfactory sub
certain competitors contractors – cleaners maintenance etc
Short breaks more popular due to perceived threats
such as terrorism, SARS etc which have curtailed
international travel
Increasing prevalence of flexible working hours and
encouragement by employers to take multiple short
breaks rather than long annual leave
Overseas tourists seeking a less conventional Lack of activities – thru bad weather
experience yet more likely to require an advisory
service

Environment
The following are some important economic factors that will affect our product or service
(such as trade area growth, industry health, economic trends, taxes, rising energy prices,
etc.):

• Fuel prices and consumer confidence in interest rates appear to be having a

significant effect on tourism in the current climate.

The following are some important legal factors that will affect our market:

• The requirement of Department of Fair Trading for Holiday Accommodation Booking

Agents to hold a Real Estate licence.

The following are some important government factors:

• The promotional initiatives of the South Coast Tourism region are raising the
awareness of the South Coast in the Greater Sydney Region, resulting in an
increasing rate of enquiry for first time visitor’s to the area. These first time visitor’s
often require a personalised advisory service to match them with the holiday
experience that they seek.

The following are other environmental factors that will affect our market, but over which we
have no control:

• Fuel prices
• Interest rates
• Air Fares, threats of terrorism, etc.
• Roads and traffic [density v Pacific Highway]
• Prolonged bad weather and/or bushfires etc.
SERVICE ANALYSIS

Description
The service will offer a personalised & highly professional service to match discerning, mid to
upper income business and professional people [singles, couples and groups] seeking respite
from their busy lives, or an opportunity to catch up with friends/family, with high quality, but
not necessarily expensive, self contained properties (houses) and Bed & Breakfast
establishments.

The service will be especially attractive to property owners who require a comprehensive
service including bookings processing, management of cleaners and servicing contractors
etc.

The successful matching of guests to the most appropriate quality properties will maximise
the satisfaction of the guest experience, thus encouraging increased repeat visitation,
referrals and recommendations of the South Coast as a desirable destination.

• Majority of properties are near beach or in mountains –eg: behind

Berry
• Personalised & specialised holiday accommodation booking service.
Self contained properties (houses) and B & B’s.
• Quality does not have to equate to expensive but must conform to
required standard- well maintained, clean etc.
• Accommodation & on site facilities for conferences from small up to
200 people
• Venues for wedding ceremonies, receptions and/or wedding night
accommodation
• Secluded retreats for romantic couples and honeymooners

Comparison
What advantage does our service have over those of the competition (consider such
things as unique features, patents, expertise, special training, etc.)?

• Fully licenced by NSW fair trading Dept. for managing holiday rentals and holding
trust funds
• One stop shop [in comparison to Tourist Information Centres]
• 24x7 service to guests on owners behalf

What disadvantages does it have?

• Budget constraints for advertising the service to potential guests

• Indirect relationship with Tourism Australia, NSW Tourism and Local Tourism
organisations
• Refusal by Tourism Kiama to co-operate

Some Considerations
Where will you get your inventory ?

• From select list of Properties, following personal inspection & famil,

and after quality standards have been established.
MARKETING STRATEGIES

MARKET MIX

Image
First, what kind of image do we want to have (such as cheap but good, or
exclusiveness, or customer-oriented or highest quality, or convenience, or speed, or
…)?

• Personalised & specialised holiday accommodation booking service.

Only quality accommodation – self contained properties (houses) and
B & B’s. Quality does not have to equate to expensive but must
conform to required standard- well maintained, clean etc.

Features & Benefits

List the features we will emphasise:

Features Customer Benefits

Personalised service. Customers requirements are
better understood
Quality, well presented Customer’s expectations are
properties met or exceeded
Emphasis on matching ditto
suitable property with clients
requirements – not into
‘backs on beds’.
‘One stop shop’ Provides complete holiday
experience including booking
of accommodation and local
attractions, restaurants &
events etc. which are relevant
to the individual guest
requirements
We “care” and hope that Guests feel valued and
satisfied clients will comfortable in the knowledge
recommend our service. that their particular
requirements will be met i.e.
“special”
No fee to guests Savings
Guests and owners can rely
24x7 service on backup in case of
emergency

Pricing
We will be using the following pricing strategy:

 Supply Side: Owners

1. Mark-up on cost __n/a___ What % markup?_______

2. Competitive ___√___
3. Below Competition _______
4. Premium Price _______

 Demand Side: Guests [Tariffs]

1. Mark-up on cost __n/a___ What % markup?_______

2. Competitive ___√___ We advise owners to be competitive with
their tariffs, but realistic.
3. Below Competition _______
4. Premium Price _______

Are our prices in line with our image?

YES_____√_____ NO__________

Do our prices cover costs and leave a margin of profit?

YES_____√_____ NO__________

Customer Services
List the customer service we provide
• Assess guest requirements
• Match Property to guests
• Collect holiday rental deposit & final balance monies
• Co-ordinate keys, cleaning & maintenance [where necessary] of
properties [optional] for self-contained properties
rd
• Co-ordinate listing with 3 party distribution channels e.g.
stays.com.au
• Promote local attractions, restaurants & events etc.
•

These are our sales/ credit terms:

For Owners:
• 13.5% commission on rental [incl. GST] for B&B’s
• 16.5% commission on rental [incl. GST] for self contained
accommodation

For Guests:
• 50% deposit, payable on booking
• Balance 7 days prior to arrival

Competition offers the following services:

1. Tourist Information Centres provide local information and facility to take bookings
2. Other competitors offer similar range of services

Advertising/ Promotion
These are the things we wish to say about the business:

To guests:

o “Welcome to the beautiful South Coast where the sun

rises over sparkling beaches and sets behind rugged
mountain ranges. Whether you seek a secluded
romantic getaway or are planning a wedding, or
function and require accommodation; we can assist.
o We take the time to assess your requirements before
we recommend a property, which we feel, will most suit
your needs. We have visited, and are familiar with each
of the properties.
o Discover the diverse beauty of the picturesque South
Coast. Sandy shores, misty mountains, spectacular
sunsets.”
o “Special Places for Special People”
o There is no fee for our professional, personal and
friendly service.

To Owners:

o We will assist you to find and book suitable holiday

tenants for your property, and collect the monies owing
on your behalf. Optionally, we can assist by managing
sub-contract cleaning & maintenance services to take
the headaches out of owning a holiday rental property.
We are fully licenced to provide this service and
maintain a trust account for clients payments.

We will use the following advertising/ promotion sources [see Appendix 1 for timeline]:

1. Television ____________
2. Radio ____________
3. Internet (website) _____√______
4. Direct Mail _____√______
5. Personal Contacts _____√______
6. Trade Association _____√______
7. Newspaper ____________
8. Magazines _____√______
9. Yellow Pages _____√______
10. Billboard ____________
11. Other
rd
• 3 party websites _____√______
• Alliances Domayne _____√______
• Beautiful Accommodation _____√______

The following are the reasons why we consider the media we have chosen to be the
most effective:

• Cost effective with satisfactory ROI and targeted to our various market
segments.
In summary, this approach provides for an ongoing adaptive marketing and promotion
plan including, but not limited to:
• highly targeted print [pouch, postcards and selected print
advertising] distributed to Travel Editors within the print, radio,
and TV channels [as well as net based travel editors]
• Publicity campaigns to seek editorial coverage, directed to selected
quality publications & travel guidebooks including:

o South Coast Style o Wentworth Courier.

o Sydney Morning Herald o Highlife
o Beautiful Accommodation o Greenwood Guides
• develop alliances to actively encourage referrals &
recommendations from advocates of SCBA, [possibly incorporating
a loyalty program in the longer term]. e.g.
o joint promotions with local attractions such as the Silos
Restaurant
• develop electronic [website and “opt-in” email news bulletins]
marketing strategies including:
o search engine optimisation of website to achieve better
organic search rankings for strategic key phrases
o developing a reciprocal link strategy with south coast
attraction businesses & other relevant websites
o using Google Adwords to attract targeted traffic through
paid search techniques.
o new property availability news bulletins for potential guests
with opt-in capability.
o research syndication opportunities with e.g. Beautiful
Accommodation & Greenwoods travel guide books &
websites.

• explore cost-effective ways to extend the range of SCBA’s

marketing to provide exposure to the “in-bound” tourism market in
the future.
BIBLIOGRAPHY:

• Moruya Boutique Accommodation Group In preparing this plan, reference has been made to an
unpublished research study into the Moruya Boutique Accommodation Sector which measured
demographics of the previous guest profiles over the year from 2002-2003.
• Australian Bureau of Statistics, Survey of Tourist Accommodation, 2002, cited in Shoalhaven –
Economic Impact of Tourism, Profile and statement of Economic Impact, y.e 31 Dec 2003,
ISSN 1035-144
• Tourism Research Australia, Survey Year ending June 2002-2003, cited in the Report
Shoalhaven – Economic Impact of Tourism, Tourism Shoalhaven.
• “See Australia” campaign, segmentation methodology, Graham Perry “A segmentation Appoach
to Sustainable Tourism”, September 2004.