Susquehanna Lodge

Executive Summary The Susquehanna Lodge will be a mid to high-end resort in Lewisburg, Pa featuring a rural, riverside theme. It will compete with existing hotels, motels, and bed and breakfasts by offering different price points to different customers. The Lodge will have 50 rooms each with a rate of $199 per night. The rooms will be organized into two multi-storied towers con-nected by a single story that includes a lobby, elevator bay, ballroom and restaurant. The hotel will also feature a full glass dining room that houses a pool and spa facility be-neath it. The restaurant will be individually promoted in the Lewisburg and surrounding communities. The goal is to have a restaurant that is recognized locally as an upscale culi-nary experience. The Lodge will lease this din-ing facility to McCormick and Schmick’s Sea-food Restaurants Inc. for an initial period of 5

years.In addition to the Lodge, the resort will in-clude 6 cabins, which are separate from the main building. The ideal nightly rate per cabin will be $249. The luxury cabins will feature a

theme that encompasses many aspects of fine art and local culture. They are designed to further differentiate the Susquehanna Lodge from purely

functional hotels and motels in the area. Marketing and promotional attempts will reach 6 customer segments. These customer seg-ments are listed below: Seasonal revenue will be driven by Buck-nell Parents seeking quality lodging while visit-ing campus. Visiting professors, lecturers, recruit-ers, and other university personnel will bring in business year round.---a standard discount will be arranged for the university People with long-term business in the area or at the University will drive revenue through extended residency. Vacationers seeking a luxury getaway.The Lodge will serve as a venue for social events such as weddings, proms, reunions, social for-mals, etc. The restaurant will drive in business from customers in the area who are seeking a fine din-ing experience.

Current Market Situation

The graph above shows the total U.S retail

sales and forecast of hotels at current prices. It is

very clear that the trend is moving upwards yearly.

The Susquehanna Lodge will be a mid to high-end

resort that is located in the Lewisburg area along

the Susquehanna River. The Lodge will distinguish

itself by providing customers with a wide range of

services. Top quality lodging, haute cuisine, pool

and spa facilities will be available to all guests. Pre-

mium cabins will also be available to guests for a

slightly higher nightly rate.

The Lodge features a floating dining room

that connects two of the resort’s main buildings.

Each of the main buildings provides houses 25

guest rooms. The main floor will house the restau

rience of dramatically higher quality than

that offered by local competitors.

Market Description

Hotel:

The hotel market in the Lewisburg area is

seasonal. The demand skyrockets during

events such as Bucknell’s Family Weekend,

Homecoming and Commencement. There

is less demand during other times of the

year.

The guests that drive the most demand in

the Lewisburg hotel market are generally

financially well-off. They are looking for

higher-end alternatives to the standard ho-

tel services provided by local competitors.

They are able to afford the more comfort-

able, luxurious experience that the Susque-

hanna Lodge will offer.

The Susquehanna Lodge has obtained

information from prospective customers to

project market demand .

The first chart on the right shows that

more than 85% of the parents have or will

visit Lewisburg annually. It shows that most

of Bucknell students’ parents are very likely

to visit Lewisburg area. Bucknell has more

than 3,500 students, which will give us a cli-

ent base of at least 2,400 people per year.

rant, ballroom, lobby, and elevator bay. Pool and

spa facilities will be located on a level beneath the

restaurant. Six premium cabins will surround the

main building.

A few national chain hotels, such as Hampton

Inn and Days Inn, and a few local hotels, such as

Lewisburg Hotel and Pineapple Inn, dominate the

competition in this area. Even though they differ-

entiate themselves in sizes, their services are very

similar and basic. The average rates for these com-

petitors are between $90 and $140.

The Susquehanna Lodge will penetrate this

market by offering superior value to guests. Stay-

ing at the Lodge will be a fun, luxurious, and re-

laxing experience. People coming to the Lewisburg

area will pay a small premium for an expe

The second Chart on the right shows students and their parents’

current satisfaction with existing hotels in the Lewisburg area. It

shows that half of the customers are satisfied with the existing ser-

vices, but the other half are not. Our objective will be to serve the

needs of the second half of

the customers who are unsatisfied with the existing hotels. Mar-

keting efforts will also attempt to steal customers from the half that

said they were satisfied with current options.

The graph on the left shows the highest acceptable price range per night. The responses show that the majority favors $100-$150 range. Interestingly, almost 30% of the prospective customers are will-ing to pay between $200-$250 per night. The Lodge’s price points will offer more for a little more to those who responded in the $100-150 range and cater directly to the 30% that respond in the $200-250 range.

The second graph on the left shows that regardless of the questions above, students’ parents are willing to pay a little bit more than standard rates to stay at a luxury lodge. Almost 50% of the Buck-nell parents are willing to pay a little bit more than standard rates to stay at a more luxurious facility. This demographic will contribute heavily to the Lodge’s customer stream and will appreciate the services that the Lodge provides.

Fine dining: Dining is limited in the Lewisburg area. There a few local restaurants that guests

frequently visit during the busy seasons.

These restaurants do not have the high stan-

dards for culinary excellence and customer satis-

faction that McCormick and Schmick’s has. Local

menus are fairly limited and the quality is function-

al but not high-end.

Product Review

Lodge:

The Susquehanna Lodge offers the following

features:

One fifty-room modern rustic main lodging

building.

One ballroom that can hold up to 250 people.

Pool and spa facilities beneath the glass din-

ning room

Six satellite themed cabins that offer guests a

comfortable rural getaway.

Periodic arts-themed events such as wine tast-

ing, culinary classes, filmmaking, and so on.

Restaurant

A full glass-floating restaurant that on the

main floor that can easily serve the ballroom.

Restaurant and ballroom can be rented out for

formals, weddings and other events.

Experienced and aspiring chefs from all over

the world.

State-of-the-art wine vault that contains a

variety of wines, including those from local vine-

yards.

Competitive Review

The competitors to our lodge include the follow-

ing:

Lewisburg Hotel This local hotel was estab-lished in 1834. The entire hotel is Victorian-styled. There are two traditional dining rooms available for meals. The hotel offers a series of amenities including Wi-Fi, pri-vate baths and/ or showers, etc. The rates for double rooms are $168/night + tax and the suites are $198/night +tax.

Days Inn Lewisburg Days Inn Lewisburg offers the most basic amenities includ-ing Internet, a gym, and park-ing. It does not have a separate dining room. The rates are very affordable, starting from $78, clearly targeting lower-end cus-tomers.

The Pineapple Inn Built in Lewisburg, Penn-sylvania in 1857. It is bed-and-breakfast styled and has four rooms and two suites. It offers short and long-term rentals as well.

The Tawsty Flower Bed & Breakfast

This is another bed-and-breakfast styled inn. The rates range from $115-165. It offers breakfast and Wi-Fi for all guests.

Comfort Suites This is one of the largest hotels in the area. It is a national chain and offers very basic ame-nities to its customers. The rates are between $150 and $170 per night.

Hampton Inn Lewisburg A national chain hotel that is very comfortable to stay in. The rates are between $100 and $160. It offers very standard amenities.

Best Western Plus Country Cupboard Inn

Another national chain hotel that is similar to other national chain hotels in the area. It offers basic ame-nities including Internet, 24-hour cof-fee, a heated pool, and a steam room. It also lacks a fine dinning room. The rates range from anywhere between $90 and $160.

Airbnb Even though the “sharing econo-my” services like Airbnb have only had a minor impact on the hotel market, it is expanding rapidly, The rates on Airbnb vary depend-ing on how much the owner wants to charge. There is no indication that this model would work in Lewisburg.

Location Ideally, the Lodge will be located by the river, off the high-way, and in walking distance to Bucknell campus. Here are a few options for where the Lodge could be located. A location near Route 15 would be effective because people who drive by will be able to see the hotel. It

would also be fairly close to both Bucknell and the Susque-hanna River.A location off of Market Street past the river is within walk-ing distance to Bucknell and is right next to the river. Being so close to the river makes flood-ing a potential problem, so if the Lodge were to be located

here additional costs would be incurred to build a foun-dation that could withstand a flood.

Channels and Logistics Review

Reservations can be made

via online or by phone. All custom-

ers will be registered into a customer

database and will be given amenity

discount coupons depending on the

season. At various peak seasons,

the Lodge will be inviting chefs and

artists from surrounding areas to

provide a more artistic experience to

guests. The Lodge partner Bucknell to

co-host some of the artistic events in

order to reduce costs and enlarge the

Lodge’s exposure among the students

and faculty.

Management strategy and recom-

mendations:

Management contracting

Management contracting

will be crucial at the Susquehanna

Lodge for hiring hotel staff, restau-

rant management, and advertising.

Although management contracting

will cost more, it is beneficial be-

cause hotel investors do not have the

knowledge and expertise in restau-

rant management, advertising, or

hotel staff management that spe-

cialized firms have. This contracting

strategy will increase efficiency and

ensure that each aspect of the lodge is

executed in the best possible manner.

Restaurant management

In order to offer a restaurant

that serves the greater Lewisburg area

in addition to hotel guests, the Susque-

hanna Lodge will partner with McCor-

mick and Schmick’s Seafood Restau-

rants Inc. McCormick and Schmick’s

offers an upscale atmosphere, as well as

prices that are reasonable for the quality

of food that customers will be receiving.

Mccormick and Schmick’s averages $4.6

million in annual sales per restaurant,

11% of which comes from banquets

and other reserved events. This is ideal

because with the Lodge will have guests

rent its facilities for weddings, reunions,

proms, banquets, social formals, and

other events.

The annual lease will be $20

per square foot for a 2,000 square foot

facility with a percentage factor of 15

percent. The duration of the lease will

be 5 years with a 5 year option to be

negotiated by both parties at the end

of the initial 5 year term. The terms

of the lease will include a clause that

subjects McCormick and Schmick’s are

to the supervision and standards of the

Susquehanna Lodge.

The Susquehanna Lodge will

be responsible for all maintenance

costs related to the dining facility. The

Lodge will cover upkeep costs relat-

ed to the physical space and basic air

conditioning and heating appliances.

This responsibility will not include

materials needed for day-to-day dining

operations.

Financial responsibility for

this agreement will be borne by Mc-

Cormick and Schmick’s Seafood

Restaurants Inc. Should McCormick

and Schmick’s close the restaurant

the corporation will be legally liable.

In the event that Susquehanna Lodge

is forced to close or sell McCormick

and Schmick’s will not be forced to

cease operation of the dining facili-

ty. The contract will include a clause

that allows the Susquehanna Lodge

to dissolve the relationship if quality

controls that the Lodge institutes are

not met.

Advertising and Marketing Advertising and marketing efforts will be under-taken by Conran PR. ConranPR is a small firm located in New York City that would be a good match for the Susquehanna Lodge. Conran PR has worked with sim-ilar hotels in the past. They deal with hotel openings, PR campaigns, advertising, social media, and more. This firm is run by young media relations specialists, so they understand marketing through the continually changing social media world. Conran PR will receive a base fee of 5% of revenue annually. They will also receive an incentive bonus of 10% of profit after the Lodge passes the break even point.

Hotel management Susquehanna Lodge will contract the hiring and training of employees out to GF Management. GF

Management is located in Philadelphia. This location is ideal because the company would be more likely to find employees who would be willing to live near Lewisburg. Another benefit of GF management is that they work with GF university, which teaches all em-ployees about standards of service. Employees provided by GF will be required to follow service and manage-ment standards that the Susquehanna Lodge will dic-tate in its contract with GF management and individual employees.. GF Management will receive a base fee of 3% of annual revenue with an incentive fee of 10% of profit after the Lodge breaks even.

Recreational activities partnership

The Susquehanna Lodge will not directly offer

any off-campus recreational activities because of

the management pressures and liabilities involved.

There are a variety of recreational services that the

Lodge will promote to guests.

Water activities can be booked through

Canoe Susquehanna. This firm offers a wide range

of activities such as canoeing and kayaking on

Susquehanna river. It also has an outlet in the

Lewisburg area and will provide transportation to

the activity locations.

The Lodge will also recommend Raymond B.

Winter State Park to customers who enjoy hiking

in the fall, swimming in the summer, and skiing

in the winter. Hunting and ice fishing are also

provided during specific seasons. The Lodge will

provide transportation to customers who do not

want to drive to activity locations.

Strengths, Weaknesses, Opportunities, and

Threats (SWOT) Analysis

The following analysis highlights the internal

strengths and weaknesses of the Susquehanna

Lodge. It outlines the opportunities that the Lodge

is prepared to take advantage of and the threats

that it will minimize.

Strengths Quality: The Susquehanna Lodge provides exceptional quality of service and facilities. It is more luxurious than the standard hotels already in the area and is equipped with brand new furniture and decor. Variety: The Lodge offers standard rooms, luxury cabins, as well as long-term accommoda-tions. It will cater to those seeking an affordable place to stay, to those desiring a relaxing get-away, and to those looking for a room to rent for a long period of time. It also serves as a venue for weddings, reunions, and other large social events. Location: The Lodge is located in the woods, near the Susquehanna River. This pro-vides guests with excellent views of nature, and gives the opportunity for outdoor activities such as hiking and canoeing. It is not far from Buck-nell University and Downtown Lewisburg, mak-ing it accessible to those visiting Bucknell and to those seeking to shop or dine on Market Street.The hotel is not far from neighboring boroughs, so guests will be able to take advantage of neigh-boring shopping and dining opportunities. Staff: The Susquehanna Lodge will only hire motivated staff with the skills necessary to per-form at superior level. The staff will take pride in their work and understand the values of the Lodge. Size: The small size of the Lodge gives em-ployees the opportunity to serve each customer more personally, making guests feel at home. Restaurant: The Lodge includes a seafood restaurant called McCormick & Schmick’s with outstanding food. Considering that Lewisburg is lacking both high-end and seafood restaurants, it will attract people living in Union County to dine at the hotel. This restaurant will create a consistent source of revenue. Customer segments: The Lodge will be able to satisfy the needs of a diverse group of customers. These customer segments are listed below:

Seasonal revenue will be driven by Bucknell

Parents seeking quality lodging while visiting campus. Visiting professors, lecturers, and other univer sity personnel will bring in business year round.People with long-term business in the area or at the University will drive revenue through extended residency.Vacationers seeking a luxury getaway The Lodge will serve as a venue for social events such as weddings, proms, social formals, reunions, etc. The restaurant will drive in business from customers in the are who are seeking a fine din-ing experience. Authenticity: The experience at Susquehan-na Lodge will be unlike that of other hotels in the area. The Susquehanna Lodge will provide a luxurious experience in a scenic rural setting. Outdoor activities will be available to residents. These will include hiking, fishing, and canoe-ing. The resort offers fine-dining to all of its guests. Guests will be able to enjoy wine tasting throughout the year.

Weaknesses Lack of brand awareness: Since the Susque-hanna Lodge is not a known brand name, it will be difficult to penetrate the market quickly.Location: Although the location of the Susque-hanna Lodge is listed as a strength, it can also be seen as a weakness. Because Lewisburg is not already a destination for travelers seeking a lux-urious experience, the Lodge will have to create a portion of the market it seeks to serve. Weather conditions: Inclement weather may make it difficult to travel to our hotel. The Lodge will also have higher weather related maintenance costs than local competitors. Weather will also limit the recreational activities offered. Slow seasons: Because the number of

students at Bucknell is low during the summer months, it is unlikely that parents will drive much revenue between June and the end of

August. There will likely be a increase in parents staying at the Lodge between homecoming and graduation in May. Size: Although the small size of the Lodge can be a strength, it can also be a weakness. During busy times such as the Bucknell Univer-sity Commencement Ceremony, the Lodge will lose out on an opportunity to serve more guests due to the limited space. Marketing: It will be hard for a small lodge to get visibility in the market where there are dominant hotel chains to compete with. Lewis-burg is unknown to vacationers seeking a higher end hotel. A significant portion of the Lodge’s marketing efforts will be to gain exposure to this area of the market . Insufficient Attraction: It will be difficult to attract customers who are either unfamiliar with Lewisburg or have no reason to visit. Although the Lodge will offer a variety of activities, it is possible that potential customers will not feel that there is much for them to do once they arrive in Lewisburg.

Opportunities Recreation: The Susquehanna Lodge has the potential to offer recreational activities for guests by utilizing existing resources. Access to the Susquehanna River will allow the Lodge to provide water based activities such as tubing, canoeing, and fishing. Guests will also be able to take advantage of the rural setting by taking scenic hikes. Market Street offers shopping and dining, and is within a ten minute drive of the Lodge. Restaurant: The restaurant will incorporate culinary art, themed dishes, and seasonal of-ferings in to offer a more diverse menu of food. Having this quality restaurant also provides the opportunity to host weddings, proms, social formals, etc. The lack of local competition in the

current fine dining market creates the oppor-tunity for the restaurant to control much of the market. Inviting different companies to visit: Giving

travel agencies and online-booking website rep-resentatives invitations to attend our hotel will allow them to enjoy the luxurious experience that the Susquehanna Lodge will offer. This will create the image that Susquehanna Lodge is a luxury resort. Exchanging nights in the hotel for exposure from travel agencies and online-book-ing websites will help the Lodge access these promotional partners. Competitors: Currently, there are no other hotels in the area that offer a luxury resort-styled getaway. The experience offered at the Susquehanna Lodge will be unique to the area. Marketing: The Lodge’s marketing can be strengthened by finding effective distribution channels and by utilizing the Internet.

Threats Market Entry: Another hotel may try to enter the market in the same area, which will create competition. National or internationally recognized chains would be able to attract cus-tomers to Lewisburg more easily. Substitutes: Lower end hotels in the area offer lower rates. People seeking a cheap, func-tional hotel for only a few nights will likely not stay at the Susquehanna Lodge. Economy: Economic downturn will reduce the number of customers who are willing to pay slightly higher rates. It will also lower the num-ber people vacationing at the Lodge. A poor economy combined with slow seasons is a threat to the Susquehanna Lodge. Employee turnover: Employee turnover can create problems of efficiency. The Susquehanna Lodge is likely going to have higher standards for employees than other hotels in the area be-cause of the experience the Lodge is designed to deliver. Employee turnover may make it difficult to operate the Lodge because replacement staff may be hard to find.

Objectives and IssuesFirst Year Objectives

There are three principle objectives to be met in the first year. The main building will be opened and will begin accepting reservations to rooms that most directly compete with established hotels in the area. The ideal price point for a standard room will be $199 per night. The second objective is to establish a restaurant in Lewisburg and surrounding communities. Susquehanna Lodge will provide guests and local customers with a

luxurious fine dining experience. To accomplish this the Lodge will lease its dining facility to Mc-Cormick and Schmick’s Seafood Restaurants Inc. The variety of their menu will satisfy a wide range of customers and generate a year round source of revenue for the Lodge. The third objective is to es-tablish a marketing channel for the Susquehanna Lodge. This will be accomplished by Conran PR with input from the Lodge’s investors and management staff. Efforts will

be undertaken to market on social media, search engines, travel agen-cies, Bucknell periodicals, regional periodicals, and more as further research is conducted to determine an ideal marketing mix.

Second Year ObjectivesThere are two principle objectives to be met in the first year. The first is to determine discount pricing for Bucknell affiliated personnel. Discounts will be given to univer-sity faculty and personnel visiting Lewisburg for university related reasons if it can be demonstrat-

ed that the university will drive enough traffic to the Lodge to warrant a discount. Parents will be excluded from this discounted rate. This relationship will be observed and established during the first year. The second objective is to open the cabins, which will be separate from the main Lodge. The ideal price point for a cabin will be $249 per night. Discounts related to the length of stay will be deter-mined later.

Issues The main issue that the Susquehanna Lodge faces will be reaching potential customers. It remains to be seen whether the resort can attract guests from beyond Central Pennsylvania. It also remains to be seen whether the Central Pennsylvania market will support a regional destination experience. Heavy investments will be put on Conran PR to overcome these obstacles through promotion and advertising. Lastly, it will be difficult to

offer the price points listed above and still deliver the quality that customers expect from mid-higher end resorts. If this is the case, the price for a night’s stay in one of the cabins will be raised before the standard room rates are raised.

Marketing StrategyThe Susquehanna Lodge’s strate-gy will be to offer more for a little bit more. The Lodge asks a higher price point than local competitors but delivers a luxurious, memora-ble experience. These services are provided by another competitor

Susquehanna Lodge seem more personal. Mintel, a global market research firm explains, “Hotels have moved away from advertising hotel features, choosing instead to focus on consumers’ stories and experi-ences. In addition to story-based ads, hotels are creating entertaining content and using brand journal-ism to market their services.”

Positioning The Hotel will be positioned on an “expect more” value propo-sition. Potential customers need to know about the added amenities

in Lewisburg. The primary tar-get is Bucknell parents and guests during special weekends; like, parents’ weekend and graduation. The Lodge will also attract various customers in the northeast who are looking for a getaway. Conran PR will be brought on largely to access this customer segment. This will increase costs, but it will allow the Lodge to reach customers more effectively. Conran PR’s contract will ensure that it advertises the Lodge with story based adver-tisements that make a stay at the

that the Lodge has that others do not. They need to have a reason to pay more to stay at our hotel. Marketing will be focused on con-vincing customers that the Lodge is more than just a place to stay, it is a luxurious destination. Marketing will also make the customer under-stand why they should pay more to stay at the lodge, instead of one of the cheaper hotels in the area.

The Susquehanna Lodge will provide a luxurious and re-laxing experience while also being

conveniently located near Bucknell University, Market Street and many of the surrounding area’s natural attractions.

Product Strategy The lodge, cabins, and restaurant will be open year-round. People will be attracted to the Susquehanna Lodge cabins because it will offer an experience that is unique to the region. The 6 premi-um cabins will attract vacationers because they are located in a scenic rural area and offer all of the ame-nities of a mid-high end luxury

hotel. The main lodge will have more typical hotel rooms, but will still be more upscale than the other hotels in the area. The restaurant will serve hotel guests but will also provide an upscale dining experi-ence for the Lewisburg community.

Pricing The Susquehanna Lodge will price its standard rooms a little higher than its local competitors. The standard lodge rooms will be $199 a night. This will not deter customers. Destination vacationers and Bucknell parents are looking

for a more upscale place to stay in Lewisburg. More luxury suite like cabins will be $249 a night for the added luxury and seclusion. Discounted rates will be offered to customers staying at the Lodge on University business. This pricing will be negotiated with the Univer-sity at a later date.

Marketing Communication Strategy Conran PR will control the marketing strategy for our lodge. The firm will decide what types of ad-vertising and marketing would be best suited for the Lodge. The Lodge will request that marketing involve consumer stories. This will help prospective custom-ers relate to the experience that the Susquehanna

Lodge provides. Conran PR will use some or all of the strategies listed on the right: Print advertising: Brochures throughout Bucknell and the Lewisburg area Email marketing: Emails to all Bucknell par-ents, alumni, visiting guests, etc. Online advertisements: advertisements for

and previous guests will make reviews on sites like Tripadvisor and oth-ers. Website: We will have an official website for the lodge on which, potential customers can obtain all the details they need to know about the experience of the Susquehanna Lodge.

Marketing Research Market research has already been conducted on the market demand for Bucknell parents. Market research has also been performed regard-ing the successes and failures of other hotels in the area. After the hotel opens, customer satisfaction surveys will be given to guests to determine what can be done to better suit their needs. Conran PR will monitor online reviews and social media to figure out how guests feel about their experiences at the Lodge or the restaurant.

Action ProgramsThe Lodge will be opening in July 2016. This is ideal because the Little League World Series and move in day will attract some guests in August. Parents’ weekend in late September will be a huge opportunity for the Lodge. A month by month action plan for opening the Lodge is included below:

May 2015Construction will begin on the Lodge with a targeted completion date of September 2015.

June 2015 The Public Relations firm and restaurant will be hired and all agree-ments will be solidified and signed in a contract.

July 2015 The management contracting group for all of the hotel personnel will be hired. Standards and agreements will be written and signed in a contract by this point.

August 2015All advertisements and other marketing should be finalized and release to the public. Doing this one year before the grand opening will ensure that potential guests will hear about the Lodge more than once. This will give customers plenty of time to book a reservation.

September 2015-April 2016These six months will be used to furnish, decorate, and assemble the interior of the hotel. A standard layout and decor of each room will be designed and each room will be constructed accordingly. A similar process will be undertaken for the cabins, although the design will create a more spacious, comfortable place for guests to enjoy their stay. Intense advertising will continue during this time because the grand opening is

people interested in a vacation, es-pecially a secluded getaway. These advertisements will be geared toward people who have searched Lewisburg, Bucknell, or Little League World series on Google. Viral marketing: travel agents

approaching. May 2016

All personnel will be required to be at work on May 1st, 2016. June will consist of all training necessary to keep the hotel up and running. There will also be many staff bonding activities incorporated into the training because a friendly united staff makes for a better experience for everyone.

June 2016June will be reserved for fine tuning the interior design and minute details of the Lodge’s appearance. Marketing will be heavily aimed towards Bucknell parents because move-in day and orientation are approaching.

July 2016Officially open restaurant and guest rooms.

August 2016: The Little League World Series occurs all throughout the month of August in Williamsport, PA, which is only 17 miles away. There are baseball players from all over the world visiting, so this is a good opportunity for us to fill the Lodge

September 2016Management will work out any operation kinks so that optimal service is provided to guests during Bucknell’s Parents Weekend.

October: 2016Efforts will be taken to reach out to travel agents and previous guests to learn how the Lodge can better serve its customers..

November 2016

Any large scale adjustments that need to be made to the Lodge will be made now, so that they occur during the off season. For example, if a large number of survey respond-ees indicate that they would like an outdoor tennis court, one will be built at this time. Off season Throughout the academic year, there will be a steady stream of parents, prospective students, alumni, job recruiters, and university guests visiting at various times. June and July will likely be slow months because university traffic will be down. Because the weather is nice during this time, the Lodge’s marketing efforts will highlight the outdoor activities nearby. Throughout the offseason, the Lodge will look to host reunions, business retreats, and weddings.

BudgetsMore research is needed to provide a detailed budget. Cur-rently the resort will offer 50 rooms at $199 per night and 6 cabins at $249 per night. These price points are subject to change as more is discovered regarding the initial cost of building the resort as well as future standard operating costs. The industry standard occupancy rate is 74.6% for a mid-high end luxury resort. Revenue from the annu-al leasing of the restaurant will total $40,000. The Lodge will also take a 15% interest in revenue that the restaurant generates beyond $23,000. More research is needed to determine an accurate estimate for the restaurant’s yearly revenue. For now a rough estimate of $500,000 will be used as a placeholder.

A base fee of 10% will be divided between GF Management and Conran PR. An additional 20% incen-tive bonus will be divided between them after the lodge makes a profit. This percentage is expected to be incurred during year three.

A rough relationship between cost and revenue for year one is shown below:Occupancy74.6%(50) x $199 = $7,363 x 365= $2,687,496Restaurant:$40,000+ 15%($477,000) = $111,550Total: =$2,799,046Cost:GF MGMT: 5%($118,913) = $139952.30Conran PR: 5%( $118,913) = $139952.30 = $279,904.6

Susquehanna Lodge estimates that it will have $2,519,141.40 to cover the cost of construction at the end of year one. Susquehanna Lodge’s goal is to break even sometime during year three after the cabins have been opened in year two. Revenue from the cabins is expected to be $363,540 annually. The break even point may come earlier depending on the initial success of the restaurant.

ControlsThe Susquehanna Lodge is implementing control mea-sures to monitor the Lodge’s progress. Success will be evaluated through the monitoring of guest feedback and overall revenue. Guest feedback will be collected via surveys and polls, and sales will be compared to market-ing plan projections. This will allow for any adjustments necessary to correct problems facing the Lodge. The chart below showing four different types of market-ing control will be used as a point of reference through-out operation of the Susquehanna Lodge.

http://academic.mintel.comhttp://www.lewisburghotel.com

http://www.daysinn.comhttp://www.tawstyflower.com

http://hamptoninn3.hilton.comhttp://www.pineappleinnbnb.com

http://www.comfortsuiteslewisburg.comhttp://www.bestwestern.com

https://www.google.com/mapshttp://www.mccormickandschmicks.com

http://www.conranpr.comhttp://www.gfhotels.com

http://www.paddlehappy.com/

Type of Control

Prime Responsibility Purpose of Control Approach

Annual-plan control Top management; mid-dle management

• To examine whether the planned results are being achieved

• Sales analysis• Market-share analysis• Sales-to-expense ratios• Financial analysis• Market-based score-card analysis

Profitability control Marketing controller • To examine where the company is making and losing money• To evaluate and im-prove the spending

Profitability by:• Product• Territory• Customer• Segment• Trade channel• Order size

Efficiency control Line and staff man-agement; marketing controller

• Efficiency and impact of marketing expendi-tures

Efficiency of:• Sales force• Advertising• Sales promotion• Distribution

Strategic control Top management; mar-keting auditor

• To examine whether the company is pursu-ing its best opportu-nities with respect to markets, products, and channels

• Marketing effective-ness rating instrument• Marketing audit• Marketing excellence review• Company ethical and social responsibility review

Lizzie DickinsonMesseret KebedeCharlie Wang DJ Magee