Bighorn River American Indian Campgrounds
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Transcript of Bighorn River American Indian Campgrounds
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Bighorn River American Bighorn River American Indian CampgroundsIndian Campgrounds
Ada IronAda IronKim IronKim Iron
Amy BensonAmy BensonVanessa KukesVanessa KukesCasey SteffansCasey Steffans
Mary Alice WalkerMary Alice Walker
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Vision StatementVision 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.
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Mission StatementMission 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.
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Big Horn River American Indian Big Horn River American Indian CampgroundCampground
• 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
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LocationLocation
• Fort Smith, Montana
• Pre-owned 40 acres of land
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Physical FacilitiesPhysical Facilities
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Tribal and Local BenefitsTribal and Local Benefits
• Employment Opportunities• Internship Opportunities• Increase Diversity• Benefit Local Ranchers• Promote other Native American
Businesses• Create Foundation
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Development StrategyDevelopment Strategy
Summer’07DesignBuilding
Nov ’07Media
Secured
Jan ’08Construction
completeHire Staff
Mar ’08Grand
Opening
Oct’07Ground
Breaking & Create Ads
Dec ’07Mass
advertising begins
Feb ’08 Train Staff
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Marketing Plan
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Competitive StrengthsCompetitive Strengths
Location
• Fort Smith
• Located on the Crow Reservation (Teepee Capital of the World)
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Market StrengthsMarket 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
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Product StrengthsProduct 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
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WeaknessesWeaknesses
• New Business
• Unbranded Name
• Distance off of I-90
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OpportunitiesOpportunities
On the way….
• 63% utilize on the way
• 17% are used for the destination
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ThreatsThreats
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Competitive AnalysisCompetitive AnalysisCompetitor Product Price Promotion Place7th Ranch Some
AuthenticHorses
CampingLowHorses High
Rack CardsBillboardsWebsite
Telephone Reservations
BighornMountain
Camping Low Rack CardsBillboardsWebsite
Telephone Reservations
Hardin Camping Low Rack CardsBillboardsWebsite
Telephone Reservations
Grandview Camping Low Rack CardsBillboardsWebsite
Telephone Reservations
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Opportunities/Threats = ObjectivesOpportunities/Threats = Objectives
100 Million Nights spent in private campgrounds10 (10% of Nights spent in Montana) = 10 Million Nights spent in Montana10 Million Nights spent in Montana4 Equal parts of the State = 2.5 Million Nights2.5 Million Nights50 Campgrounds in Southeastern Montana = 50 Thousand Nights/year50 Thousand Nights/Year213 Nights per summer season = 234 Nights spent at Bighorn River area234 Nights spent along the Bighorn River 4 Campgrounds in the Bighorn River area = 58 RV Customers per Night
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Target AudienceTarget Audience
• Authentic American Indian culture
• Baby Boomers
• Families with children
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Target AudienceTarget AudienceDemographics:• 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
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Marketing MixMarketing Mix
Attributes PhysicalConsequences
PsychologicalConsequences
Values
Teepees, riveraccess, activities,Bighorn Riverbeing nationallyrecognized as oneof the premieretrout streams inthe United Statesfor anglers
Authenticity,tours semi-convenience,backcountry, andhealth.
Cultured,Experienceunmatched byOthercampgrounds,and a relaxingatmosphere
A once in aLifetimeexperience andself- satisfactionof experiencingthe real thing.
Product: Means End ChainProduct: Means End Chain
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High Cost
Low Cost
Authentic American
Indian Experience
Typical Campground
Black Hills Campground
Sheridan KOA
Hardin KOA
Grand View Campground
Bighorn Mountain Campground
7th Ranch RV Camp
Bighorn River American Indian Campground
Product: Perceptional Map
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Marketing Mix Marketing Mix
Price
• One-price Policy
• Discount pricing
• Coupon distribution
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Marketing MixMarketing Mix
Place
Strategy:Direct Distribution Channel
Sales:Telephone, internet, and walk-in traffic
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Marketing MixMarketing Mix
Promotion
• Inform audience
• Persuading our target audience
• Remind the customers
• Publicity
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Organization & ManagementOrganization & ManagementAda IronGeneral Manager
Full – TimeEmployee
Kim IronAssistant Manager
Full – Time Employee
(6)Employees (6)Employees
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Financial Plan
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FINANCIAL PLAN FINANCIAL PLAN
• Base Case & Alternative Case
• Construction of Lodge• Installation of RV Hookups• Set up of Teepees
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FINANCIAL ASSUMPTIONS 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
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Financial AssumptionsFinancial 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
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Pro Forma StatementsPro 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
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Pro Forma StatementsPro Forma Statements
– Alternative Case• $150,000 yr 1 • 50% increase yr 2, 14% thereafter
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PRO FORMA STATEMENTSPRO FORMA STATEMENTS
• Base Case• Initial Costs total $1,430,095
• Alternative Case• Initial Costs total $1,427,260
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PRO FORMA STATEMENTSPRO FORMA STATEMENTS
• Mixture of debt and equity• SBA Loan – 60%
• Interest rate @ 10.75%• Amortized over 25 year period
• AIBL Members – 13% • Investors – 27%
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Financial AnalysisFinancial AnalysisScenario Base Case Alternative Case
Undiscounted Payback 2yrs, 9.80 months 5yrs, 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%
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Pro Forma StatementsPro Forma Statements
25%
30%
35%
40%
45%
1 2 3 4 5
S1
Profit Margin
Base Case
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Pro Forma StatementsPro Forma Statements
$-
$200,000
$400,000
$600,000
$800,000
Dollar Amount
1 2 3 4 5
Year
Increase(Decrease) Cash Flow
Base Case
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Breakeven Analysis - Base CaseBreakeven Analysis - Base Case
Year 1 Year 2 Year 3 Year 4 Year 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
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• Exit Strategy
– Sell to existing competitor– Sell to local Farmer– Turn into Farmland for our Ranch
Exit StrategyExit Strategy
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Questions?