Team Next Wave Caitlin, Jodi, Mandi, Texanna Table of Contents 1) Mission Statement 2) Vision Statement 3) Industry Data and Competitors 4) Charter Data, Yacht and Sailboat Attitudes 5) Best Practices 6) Competitive Advantage Strategy 7) 5-Forces Model 8) SWOT Analysis 9) Business Model 10)Millennials Mission Statement To create memorable and exciting client experiences and journeys based around sailing, power catamarans, and crewed yachts. We aim to dedicate ourselves to the complete care of our clients’ every need. Vision Statement Our vision is structured around extending our market reach in order to sustain profitability and future growth. Our focus is to attract Millennials to form a new customer base and fight against the declining Baby Boomer market. Our strategy will focus around the use of social media to notify the Millennials of our industry. Be brief, be brilliant, and be gone! Industry Data & Competitors Caitlin Greene Industry Data • Multihull numbers up 11% from last year, 35% of all charters • Worldwide charter fleet down 283 boats since last year • 21,495 charter weeks booked in 2013 compared to 18,626 in 2012 (up 15.4%) Source: cruisingworld.com The Industry In the US • $121.5 billion in the U.S. annually • Positive recovery from 2010 • Nearly 35,000 businesses – 25,000 boat services Internationally • Enjoyed by the wealthy • From yachts to superyachts • Billion dollar industry • Travel is to tropical regions Competitor Data • Most successful MarineMax is spending over $250,000/year on advertising (referenceusa.com) • “Tui is celebrating a strong year with a 20% hike in profits, though the statutory results reveal some less impressive aspects of the travel giant's performance.” – (Source: Travel Trade Gazette, UK & Ireland) Competitor Data – Dream Yachts Source: Travel Trade Gazette, UK and Ireland Marine Max – Clearwater Data from ReferenceUSA.com Marine Max – Clearwater Data from ReferenceUSA.com Best Practices in Yacht Chartering Texanna Loftus Benchmarking Product and Suppliers First Tier: The Moorings • Robertson & Cain (South Africa)—Custom, Innovation, Quality, Design • Yachts no older than 5 years • Latest hardware and technology Second Tier • Mostly used yachts up to 15 years old • Less modern Brand Management • The Most Beautiful Destinations – 22 Bases • The Best Vacation Options – Bareboat Sailing – Crewed Yacht • Commitment to Customers – Taken Care of Completely – Focus on Memorable Experience Competitive Strategy Focused Differentiation Strategy • Currently provide products targeted at well defined group of Baby Boomers • Success based on the existence of buyer segment that is looking for the specific product attributes that business is offering • Risk is for segment growth to slow to such a rate that the business’s prospects for future sales and profit gains disappear • Reason for new market search Millennials Current Customers • • • • 55+ Married Couples Income: $150,000 Hobbies: – Enjoy fine wines and gourmet foods – Golf – Skiing – Foreign travel 5-Forces Model Political Factors International politics could affect the business, perhaps the US government decides to cut ties with a country that The Moorings usually includes in their holidays because it could mean political or economic gain for our country or an individual. If this is a big seller of holidays, sales will be affected. Economic Conditions Foreign exchange rates can be a problem for The Moorings. If it costs $5 USD for a sandwich in the US but the equivalent of $27 USD in another country, people are probably less interested in taking a holiday to that country if it is a place people usually like to go and leave the boat and explore. Also, if the economy is in a bad place, it may not affect some wealthy people but if it is someone who owns their own company during a recession, they are probably going to be more careful with their money because of economic uncertainty. A holiday to the BVI is probably not at the top of their list right now. Sociocultural Forces This is a big one for The Moorings and has a lot to do with their main issues right now. Demographics are a part of sociocultural forces. Age is an issue right now because their customers are dying off. They must pay attention to the data about Millennials in order to capture their business. Attitudes and cultures can also affect the business, although those change much slower. Taking a holiday is more important in some places than in others. Technological Factors The Moorings have to stay up on the latest technology. If their competitors offer a boat with a new device that allows them to see underwater while the boat is moving, it will appeal to people who are looking for a unique experience (Millennials). Each boat in their fleet needs to stay outfitted with the latest gadgets. Environmental Forces The Moorings take pride in being very environmentally friendly, but that does not mean every company in the industry does. If humans or their boats are destroying certain areas, those areas could be shut down to avoid further destruction and lowering sales for The Moorings. Weather is also a large part of it because if people keep going on trips and it rains the entire time, they are less likely to go again or to tell their friends they had a fantastic time. Legal and Regulatory Factors Labor laws affect every industry but The Moorings need to make sure that everyone that is included in a boat crew is fully trained to their maximum potential to ensure that risk is small because of the liability on the company. They may need a waiver for clients who decide to go paddle boarding in a new area or adventuring on their own. SWOT ANALYSIS STRENGTHS • • • • • High barriers to entry Highly experienced employees Highly visible website Name of prestige and exclusiveness High reputation with returning clientele WEAKNESSES • Competition can offer similar services quickly • Limited flexibility in pricing • Declining current market OPPORTUNITIES • New market: Millennials • More immediate market share and expansion • Expanding company values THREATS • Changes in regulations can impact the business • Better services is already sold by major competitors • Changes of the environment • Changes in economy Business Model for Moorings KEY PARTNERS TUI Robertson and Cain KEY ACTIVITIES Partner Program Marketing and Advertising VALUE PROPOSITIONS Create a once in a lifetime experience Customer Support Beneteau KEY RESOURCES Sunsail Brokerage TUI Committed Staff Exclusive vacation with superior customer service General and Administrative Purchasing Boats Personal Assistance Self-Service Emails Loyalty Program Marketing and Sales Maintenance and Inventory CUSTOMER SEGMENTS Baby Boomers Millennials CHANNELS Magazines Website Travel Agents Brand Security COST STRUCTURE CUSTOMER RELATIONSHIPS Emails Word of Mouth Social Media REVENUE STREAMS Vacation Packages Brokerage Program Research of Millennials Jodi Vetter Definition of a Millennial - Born between 1978 – 2000 Most educated generation yet underemployed Delaying marriage and family “Generation Me” yet civic minded Optimistic about future Millennial Strategy Mindful Consumer – Sailing Schools Millennial Strategy Social Attitudes - Volunteer Millennial Strategy Competitive – YouTube Contest Millennial Strategy Adventure Seekers Average Income: $85,225 Millennial Strategy Adventurer Seekers Average Income: $89,900 Average Age: 39 Millennial Strategy - Athletic Income Average income: $126,000 12.9% have incomes under $50K 14.5% have incomes $50-74,999 16% have incomes $75-$99,999 23.4% have incomes $100-$149,999 12.1% have incomes $150-$199,999 8.4% have incomes $200-$299,999 5.5% have incomes over $300K Over 600,000 Members Millennial Personas Exuberants Boss Babes & Brogrammers Adventurers Jennifer-- “Selfies are an everyday part of life ” Persona Image Conscious Social Media Creator Tweets/Snapchats/Facebook all Events Energetic and High-spirited Personal Values Mindful of Good Giving—Volunteer Importance of Positive Attitude Demographics Apartment in New York City Roommate Employment Publicity Director of Fashion Magazine Income: $90, 000 Lifestyle Blog/Social Media Centered Exercise Daily--Active Work Weekly Social Life Fashionista--Online Shopping Journey of the Exuberant Attraction Social • Moorings Pinterest • YouTube Contest • Like Moorings Page • Invite Friends Follow-up • Moorings Tweet Facebook Future Trip Ideas Return • Blog Experience Research • Search Internet • Itinerary Vacation • Social Media Postings Booking Charter • Online Moorings Website Contact • Moorings Send Tweets Facebook Contest Boss Babe/Brogrammer Boss Babe Brogrammer • Focused on their careers • Little interest in dating • Ambitious • Can be very assertive • • • • Tech pros Interested in start ups Lovers of craft beers Masculine/nerdy 1. Reads about The Moorings from an article titled “10 vacations your friends haven’t already been on” 2. Checks to see if The Moorings have an app to make booking easier 3. Calls The Moorings, hoping to talk to someone rather than an automated system 6. Posts about their trip via social media, leaves reviews 5. Takes an Uber to their destination 4. Books vacation The Adventurer Garrett-- “Adrenaline rush is an everyday part of life ” Persona Competitive Entrepreneur Social Tweets/Snapchats/Facebook all Events Energetic and High-spirited Personal Values “I can” attitude Environmentally Friendly No Excuses 1. Receives email from Jetsetter.com with The Moorings offering a Unique Vacation Experience 2. Researches The Moorings website for their unique destinations 3. Tells their friends and Login to Jetsetter account 6. Posts about their trip via social media, leaves reviews 5. Coordinates travel arrangements to destination 4. Books vacation Interactions • Before: – Camera – Custom Hashtags • During – Photos – Check Ins • After – Social media – Photo code Putting the customers to work Key goals: • • • • Collaborative Innovation User-generated content Share brand messages Instant feedback Performance Measures Information Systems and Performance Tracking in real-time • Customer Data – Acquisition % in Millennial Generation – Number of Millennial Generation Subscribers – Referral Sources • Financial Performance Data – Share of Millennial Spending in Revenue References • • • • • • • • • Badia, M. (Host), & Pedersen, I. (Host). (2015). The Moorings [PowerPoint]. Saint Petersburg, FL. Bratskeir, K. (2013, December 27). The 16 Habits of Exuberant Human Beings. Retrieved from http://www.dailygood.org/story/ 624/the-16-habits-of-exuberant-human-beings-katebratskeir/ Byrd, G. (n.d.). The Spirit of Yachting. Retrieved February 25, 2015, from http://www.forbescustom.com/YachtingPgs/PrivateYachtingEnduresPg1.html Choosing Your Charter Company. (2014). SailOnline.com. Retrieved from https://www.sailonline.com/boat-charter/first-time-boat-charterers/choose-your- chartercompany Donlon, J. (2013, February 12). 18 Marketing Performance Metrics that Matter. Retrieved from http://www.themarketingscore.com/blog/bid/220074/18-Marketing-Performance-Metricsthat-Matter How Millennials Are Changing the Face of Marketing Forever. (2015). BCGPerspectives.com. Retrieved from https://www.bcgperspectives.com/content/articles/marketing_ center _consumer_customer_insight_how_millennials_changing_marketing_forever/?chapter=4 Reed, E. (2014, October 22). The 12 Types of Millennials That Exist in the American Workplace: A Field Guide. Retrieved from http://www.mainstreet.com/article/the-12types-of-millennials-that-exist-in-the-american-workplace-a-field-guide/page/9 Sherman, L. (2013, August 28). How Much Fashion Jobs Really Pay. Retrieved from http://fashionista.com/2013/08/fashionistas-first-ever-salary-survey-the-results-are-in-andtheyre-fascinating#6 Thompson, A., Peteraf, M., Gamble, J., & Strickland, A. (2014). Crafting and Executing Strategy. New York, NY: The McGraw-Hill Companies, Inc. Measurements of Success • • • • • • Methods used by Related Market Acquisition Of Millennial Customers Share of Millennial Spending Customer Retention Advocacy Employee Diversity Improved Brand Image Additional Methods • • • • • • • Content Downloads Inbound Links Lead Quality Score Lead Volume Social Media Engagement Social Media Reach Subscribers (Blog, Email, Newsletter, Etc.) Additional Methods • • • • • • • Website Traffic Cost of Customer Acquisition Customer Lifetime Value Customer Retention Rates Employee Retention Rates Inbound Job Candidates Lead-to-Sale Conversion Rates Additional Methods • • • • Net Promoter Score Profitability Referrals Revenue Growth Writing Logs • Writing Log #10 Texanna Loftus • • Chapter 10 of Crafting and Executing Strategy concerns building an organization capable of good strategy execution (Thompson & Peteraf & Gamble & Strickland, 2014, p. 286). The chapter concludes the strategy creation process and begins the strategy execution process. Executing strategy involves discerning the specific actions and behaviors needed to get things done and deliver good results. There are ten managerial tasks involved in the strategy execution process. The tasks are to build the organizational capabilities required for successful strategy execution, to establish a strategy-supportive organizational structure, to allocate sufficient resources to the strategy executions effort, to institute policies and procedures that facilitate strategy execution, to adopt best practices and business processes that drive continuous improvement, to install information and operating systems that enable company personnel to carry out their strategic roles, to tie rewards and incentives directly to the achievement of strategic and financial targets, to instill a corporate culture that promotes good strategy execution, to exercise strong leadership to propel strategy execution forward, and to staff the organization with the right people for executing the strategy (p. 288-289). • • • • • • • • The task of building an organization capable of good strategy execution involves three actions. These actions are to staff the organization, to acquire, develop, and strengthen key resources and capabilities, and to structure the organization and work effort (p. 291). My position as Hospital Practice Manager with Banfield Pet Hospital required me to be involved in the staffing of my hospital. In order for a strategy to be successful, one must put together a management team that is strong; as well as, recruit and retain talented employees (p. 292). Banfield Pet Hospital tried many types of hiring techniques and interview processes in order to hire the right employees for the positions. I was involved in the group interview process. Management determined some of the key capabilities that we were to seek out. The interview process involved a scenario and the interviewees had to work together to find the solution. One such scenario was the end of the world and the group was to pick ten people with different professions which would survive and begin a new society. The hiring team would then observe the candidates interactions. We sought individuals that demonstrated initiative, engagement, and personality traits that fit with the company's work environment and culture. Much time and effort was utilized in the recruiting process due to the importance that employees had in the strategy execution process. After becoming an associate, a resource of the company, Banfield Pet Hospital continues to strengthen this resource with continued training programs offered throughout the associate's career. • • • • • Writing Log #10 Jodi Vetter What did I learn this semester? I learned that public speaking is a valuable skill regardless of your profession. I have learned to become more comfortable speaking in a group. It made speaking in front of the class easier when you had us perform group activities in the classroom. Being able to speak effectively in front of clients, customers and colleagues will be a great asset for me in the future. I learned that to have a successful company you first must start with a strategic plan and this requires a lot of research and planning. A company’s strategy is part proactive and part reactive. The company strategy must constantly be update and reevaluated to meet new challenges. A company’s vision, mission and strategy must all be cohesive. SWOT analysis is a critical tool for evaluating a business’ future success. Internal strengths should serve as the basis of a company’s strategic plan and competitive advantage. Every company has a weakness, whether it is a small or large vulnerability will affect the future success of a business so it is important to know where the weaknesses are in a company. Opportunities lie within all different groups. It is up to management to learn this market and how to target them for future growth. All companies deal with external threats and it’s up to management to predict future threats to avoid vulnerability. Product differentiation is crucial for a competitive advantage in the marketplace. Successful differentiation requires a vast knowledge of a buyer’s wants and needs. Improving customer service or adding new products or additional services increases competitive advantage. Partnerships or alliances with other companies can create a stronger competitive advantage, but choosing the right one takes research and planning. The related diversification strategy is used mainly in smaller businesses and requires less start-up costs and is less risky than unrelated diversification. Related diversification in all cases should be low risk investment and yield a profit. However, related diversification does not always succeed. It can cause slower growth in the core business or exceed budgeted costs to name a few. In strategic management, learning what not to do can be just as important as learning what to do in executing a company’s plan and value chain. Business ethics play a crucial role in a company’s success. Employees and customers respect companies who employ corporate social responsibility. Employees and customers respect companies who employ corporate social responsibility. Ethical labor practices, volunteering or donating to local charities, and focusing on the well-being of the environment are key components to corporate social responsibility. I have learned such valuable tools to move forward in my career. I have improved on my public speaking skills, a better understanding of business strategy and steps to perform when starting my own business. I have learned enhanced research skills to improve my ability to create a strategic plan. I have enjoyed this class and benefitted greatly from the skills I have learned.