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Bighorn River American Indian Campgrounds Ada Iron Kim Iron Amy Benson Vanessa Kukes Casey Steffans Mary Alice Walker.

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Presentation on theme: "Bighorn River American Indian Campgrounds Ada Iron Kim Iron Amy Benson Vanessa Kukes Casey Steffans Mary Alice Walker."— Presentation transcript:

1 Bighorn River American Indian Campgrounds Ada Iron Kim Iron Amy Benson Vanessa Kukes Casey Steffans Mary Alice Walker

2 Vision Statement The Bighorn River American Indian Campgrounds vision is to ensure an authentic Apsaalooke experience in a heartwarming customer oriented environment. We will increase the diversity among Americans by sharing our culture and our knowledge of Crow Country. We will share our history through guided tours in our back country during our guest’s activities.

3 Mission Statement The Bighorn River American Indian Campgrounds will offer our guests of all ages the opportunity to expose themselves to an authentic Native American experience. We promote family-friendly, safe camping environment where guests can enjoy outdoor recreation on the land of our ancestors. The purpose of our resort is to please and respect our customers while enjoying the pleasure of sharing our culture. We value our guests, as they will come to value us as Native Americans.

4 Big Horn River American Indian Campground Indian owned business on the Crow Reservation RV owners and camping enthusiasts fast growing market especially in Montana Located on Bighorn River – 1 of the best fishing destinations in the United States

5 Location Fort Smith, Montana Pre-owned 40 acres of land

6 Physical Facilities

7 Tribal and Local Benefits Employment Opportunities Internship Opportunities Increase Diversity Benefit Local Ranchers Promote other Native American Businesses Create Foundation

8 Development Strategy Summer’07 Design Building Nov ’07 Media Secured Jan ’08 Construction complete Hire Staff Mar ’08 Grand Opening Oct’07 Ground Breaking & Create Ads Dec ’07 Mass advertising begins Feb ’08 Train Staff

9 Marketing Plan

10 Competitive Strengths Location Fort Smith Located on the Crow Reservation (Teepee Capital of the World)

11 Market Strengths Fishing: most popular physical activity 79% of campers consider themselves family oriented 47% of campers preferred an activity oriented camp ground Growth in weekend travelers

12 Product Strengths A RV capacity of 40 A Teepee capacity of 10 A lodge A section for cultural activities and events Room to expand Land off 40 acres

13 Weaknesses New Business Unbranded Name Distance off of I-90

14 Opportunities On the way…. 63% utilize on the way 17% are used for the destination

15 Threats

16 Competitive Analysis CompetitorProductPricePromotionPlace 7th RanchSome Authentic Horses Camping Low Horses High Rack Cards Billboards Website Telephone Reservations Bighorn Mountain CampingLowRack Cards Billboards Website Telephone Reservations HardinCampingLowRack Cards Billboards Website Telephone Reservations GrandviewCampingLowRack Cards Billboards Website Telephone Reservations

17 Opportunities/Threats = Objectives 100 Million Nights spent in private campgrounds 10 (10% of Nights spent in Montana) = 10 Million Nights spent in Montana 10 Million Nights spent in Montana 4 Equal parts of the State = 2.5 Million Nights 2.5 Million Nights 50 Campgrounds in Southeastern Montana = 50 Thousand Nights/year 50 Thousand Nights/Year 213 Nights per summer season = 234 Nights spent at Bighorn River area 234 Nights spent along the Bighorn River 4 Campgrounds in the Bighorn River area = 58 RV Customers per Night

18 Target Audience Authentic American Indian culture Baby Boomers Families with children

19 Target Audience Demographics: Families with average age of 37 –children under 18 –income > than $50,000 /year Activities: People who enjoy backcountry fishing, camping, guided fishing trips, hunting, and the general outdoors,cultural events Geographic: Billings and surrounding area Tourists traveling in and around southern MT and Northern WY from all over the world

20 Marketing Mix AttributesPhysical Consequences Psychological Consequences Values Teepees, river access, activities, Bighorn River being nationally recognized as one of the premiere trout streams in the United States for anglers Authenticity, tours semi- convenience, backcountry, and health. Cultured, Experience unmatched by Other campgrounds, and a relaxing atmosphere A once in a Lifetime experience and self- satisfaction of experiencing the real thing. Product: Means End Chain

21 High Cost Low Cost Authentic American Indian Experience Typical Campground Black Hills Campground Sheridan KOA Hardin KOA Grand View Campground Bighorn Mountain Campground 7 th Ranch RV Camp Bighorn River American Indian Campground Product: Perceptional Map

22 Marketing Mix Price One-price Policy Discount pricing Coupon distribution

23 Marketing Mix Place Strategy: Direct Distribution Channel Sales: Telephone, internet, and walk-in traffic

24 Marketing Mix Promotion Inform audience Persuading our target audience Remind the customers Publicity

25 Organization & Management Ada Iron General Manager Full – Time Employee Kim Iron Assistant Manager (6)Employees Full – Time Employee (6)Employees

26 Financial Plan

27 FINANCIAL PLAN Base Case & Alternative Case Construction of Lodge Installation of RV Hookups Set up of Teepees

28 FINANCIAL ASSUMPTIONS Sales estimates were derived from AIBL team Sales Assumptions –Capacity for 10 Teepees, 40 RV spaces –Total Capacity Includes 2 people per Teepee = 20 People 2 people per RV = 80 People = 100 People per night –Base Case 60% of Capacity in yr 1, increase of 5% thereafter Higher average –Sale price for packages –Teepee Rental –Initial Costs

29 Financial Assumptions –Alternative Case 60% of Capacity in yr 1, increase of 10% thereafter Lower average –Sale price for packages –Teepee Rental –Initial Costs –Base case & Alternative Case All other estimates remain equal Fiscal year Oct 1 to Sept 30 Start operation March 1 and run through Sept 30

30 Pro Forma Statements Owner’s Draw LLC, choose to be taxed as Sole Proprietor To pay taxes and for living expenses for Owners –Base Case $350,000 yr 1 12% increase yr 2, 10% thereafter

31 Pro Forma Statements –Alternative Case $150,000 yr 1 50% increase yr 2, 14% thereafter

32 PRO FORMA STATEMENTS Base Case Initial Costs total $1,430,095 Alternative Case Initial Costs total $1,427,260

33 PRO FORMA STATEMENTS Mixture of debt and equity SBA Loan – 60% Interest rate @ 10.75% Amortized over 25 year period AIBL Members – 13% Investors – 27%

34 Financial Analysis ScenarioBase CaseAlternative Case Undiscounted Payback 2yrs, 9.80 months5yrs, 6.09mths Discounted Payback 4yrs, 2.85 months> 10 years NPV (WACC) $1,924,654$108,376 NPV (RRR) $785,242($459,807) IRR 40%16% MIRR 20%11%

35 Pro Forma Statements Profit Margin Base Case

36 Pro Forma Statements Base Case

37 Breakeven Analysis - Base Case Year 1Year 2Year 3Year 4Year 5 Sales $2,131,065$2,308,654$2,486,243$2,663,831$2,841,420 TVC $1,063,210$1,075,316$1,108,779$1,143,137$1,178,423 Needed to Breakeven/ Day $6,009$5,948$6,315$6,632$6,908 Our Sales/ Day $10,005$10,839$11,673$12,506$13,340 Difference $3,996$4,891$5,358$5,874$6,432

38 Exit Strategy –Sell to existing competitor –Sell to local Farmer –Turn into Farmland for our Ranch Exit Strategy

39 Questions?

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