Paradise in Your Own Backyard, Essay Example

Executive Summary

Island Affairs Catering and Events, Inc (IACE, Inc) is a state-of-the-art, for profit, full service catering and event facility serving the state of Georgia. Island Affairs Catering and Events, Inc’s goal is to create an authentic island experience for our client’s memorable events through recreation of popular travel destination activities and events.

Every day, month and year in the state of Georgia, people plan weddings, birthday parties and other special events. Some of these people are on a limited budget and want to get the most from the money that they are going to spend anyway. That’s where Island Affairs Catering and Events, Inc come in.  We have been established to assist the avid budgeter create a memorable experience for themselves without breaking the bank.

Wedding planning is a big market and every bride dreams of having a wedding on beach or at sunset on a tropical island. Many brides do accomplish that but can only share the experience with a few friends and/or family members because the cost is too great. IACE, Inc will be able to provide these atmospheres to our clients at a fraction of the cost while allowing the entire family and friends’ base to enjoy the experience as well.

Business Description

Island Affairs Catering & Events, Inc (IACE, Inc) will be a full service catering and event planning corporation based in and serving the state of Georgia. The founders chose to incorporate because it provides the shareholders of the company a shield from personal liabilities. Incorporation also allows IACE to operate as its own entity and positions the organization to receive funding based on its own merits.

Our mission is to create an authentic, unmatched and memorable island experience that leaves our clients with the feeling that they have actually left the states and landed on a tropical island.

In order to create this experience for our clients, IACE, Inc will recreate tropical experiences that will detail every aspect of the experience. This will include a range of details from the smell to the tiniest branch on a palm tree. “Natives” will also be provided with every atmosphere package to create additional authenticity.  Our clients need only advise us of the atmosphere they wish to create and our highly trained staff will handle the rest.

Our vision is to become a leader in the full service event planning industry. We see ourselves always ahead of the trends and providing a pathway for others to follow while maintaining our competitive and creative edge.

This business will be a success for several reasons. First, we believe that in our idea and mission we are unique. That means that in their search for memorable experiences and unmatched emotions, clients will certainly choose something new, and something they have never experienced before. For those, who have already visited real islands, this experience will be interesting in a sense that it resemble and remind our customers of the most pleasant and positive island emotions. For those, who never had an opportunity to visit an island, our company will create favorable conditions for affordable family entertainment. As a result, our business will initially target a broad range of customers – the second reason for our future success. Diversity of products and opportunities will be the third factor of success; it will help us segment the market and satisfy the most sophisticated customer needs. Finally, that we provide full service event planning suggests that we will offer the highest level of customer service and satisfaction, giving our customers a sense of relaxation and pleasure when working with us.

Industry and Market Analysis

Event planning is a growing industry. In a survey done by CNN money, this industry has a 10 year expected growth of 22% (CNN Money, 2008). The Department of Labor anticipates an additional 10,000 new event planners entering the industry by 2016 (Bureau of Labor Statistics, 2009). Although this growth is significant, there are factors that can affect an organization’s growth and viability. The economic climate can drastically reduce growth potential as well as increase it.

It should be noted, that in the current state of markets, the event planning industry account for more than 4,000 companies, which altogether generate no less than $8 billion annually (First Research, 2009). Moreover, top 50 companies hold about 45 percent of revenue, which means that the event planning market is highly fragmented and the barriers to entry can be significant (IBISWorld, 2009). However, the major activities, which event planning companies offer include association meetings, company meetings, conventions, and trade shows (Market Research, 2009). The market segment of entertainment event planning is relatively small. Moreover, there is no information about any enterprises working in island experience event planning area. This, again, confirms the uniqueness of our business product. Although the current event planning market is characterized by the growing competition, it is obvious that IACE has significant business success potential. An emerging company like IACE, Inc will need to take into consideration these mitigating factors when creating a financially sound plan to maintain its viability and profitability. Also, the company will have to take into account competitiveness and competition criteria and considerations.  In order to do this IACE, Inc will use an expected industry growth of 15% as a basis for our financial assumptions.

Our target market will be the social market. This market consists of social events such as weddings, birthday celebrations, reunions, graduations, and other hospitality events.

Competitive Analysis

Our competition would be local wedding and event planners. Although this would be a very competitive market, I believe that because of the uniqueness of the services provided by IACE, Inc we will be very successful.

There are three ways in which IACE, Inc will create an advantage over our competitors:

1. Product quality and novelty
2. High employee motivation and good sales attitude
3. Innovative and aggressive service options

Product quality and novelty will attract new customers. In the market of event planning, novelty

and uniqueness of products is the critical component of business success. I am confident that as long as other event planning firms do not offer similar experiences and planning opportunities, we will be able to occupy a unique market niche. However, to sustain this competitive advantage in the long run, we will have to use innovation and creative thinking as the matter of increased product value. These will have to be complemented with high employee motivation and perfect customer service.

Event planners in the market fortunately don’t have a competitive advantage over Island Affairs Catering & Events, Inc. They are challenged with gathering different vendors to create their experiences. They are at the mercy of various schedules and potential breaks in service delivery. They run the risk of not being able to secure the vendors their clients truly desire as well as dealing with late arrivals and/or vendor no shows. IACE, Inc being the organization that it is will provide the entire experience in house. Our entire staff will be experienced in all aspect of this industry and all the services that Island Catering and Events, Inc provide.

In the state of Georgia, IACE, Inc will be the only company which focuses on creating tropical atmospheres. The target market will perceive IACE, Inc as the destination location for unique event planning and execution. Once they have experienced an Island Affairs Catering and Events, Inc their experience will be reinforced by friendly, efficient service and a knowledgeable staff.

We believe the excitement of being able to plan an authentic island excursion at a fraction of the cost while eliminating the hassle of choosing which family member or friend can afford to participate, or who can get the time off from work will be our greatest selling point. Offering this type of service in the current economic climate will make our organization successful.

With this type of service being offered, one can easily and affordably have a sunset wedding in Aruba with IACE, Inc then turn around and purchase a honeymoon in Mexico or Europe.

Marketing Strategy

Price: IACE, Inc will provide various “atmospheres”. Initially, the atmospheres offered will be:

Aruba – Bahamas – Hawaii – Virgin Islands

The actual amount charged per atmosphere will be calculated using a specialized formula that includes the following variables:

1. The base rate of the atmosphere chosen;
2. The agency cost to create the particular event and/or scenery;
3. The airfare to that destination for the event date; based on 10 people;
4. The amount of guests attending

The base rates are as follows:

1. Aruba $1500*
2. Bahamas $850
3. Hawaii $1500*
4. Virgin Islands $1000

The atmospheres Aruba and Hawaii are premium and the base rate will be higher. It will cost a client roughly $5500 for 150 guests to book a Hawaiian atmosphere. That’s about $67 per person and it includes all the food, drinks, scenery recreation, leis, luau/fire dancers, natives and a photograph with the dancers.

Promotion: IACE, Inc’s main advertising campaigns will be social media outlets (i.e.: facebook, myspace, twitter), network marketing, print and radio advertisements.

Well will post monthly advertisements in bridal magazines as well as subscription magazines.  A mailing list will be complied from various bridal shows we attend so that a direct marketing campaign can be implemented.

Distribution: Our ads will focus on our affordability. We know that planning a wedding or any event is a major expense. The ads will promote a lovely wedding in Aruba, a Bahamian Birthday Bash or a Hawaiian Luau graduation celebration. They will also stress the opportunity to have your entire guest list participate for a fraction of the cost.

Product: All our products will have a differential advantage compared to other products in the event planning market. This differential advantage will grow of the fact that IACE, Inc. is the only one offering island experience services in the state of Georgia. All of our atmospheres will include the elements needed to recreate the scene, the food, drinks, the natives of that particular island and an 8×10 memorabilia photo. Another differential advantage will be in that we will diversify the set of island experiences to attract more customers and to satisfy their unique entertainment needs. Such diversification and novelty will create a group of returning customers, who always seek new experiences and impressions.

Operational Issues

Island Affairs Catering and Events, Inc will be located in Hapeville, GA about 5 miles from the airport. This state of the art facility will be owned by IACE, Inc. This facility will be 5000 square feet with plenty of parking. We chose this area because it gives the illusion that one is actually traveling to their desired atmosphere. The drive towards the airport and the planes overhead all play into our marketing campaign.

The facility will be equipped with a full kitchen featuring the latest in kitchen appliances and equipment. There will be restroom facilities on both sides of the building each equipped with 6 stalls. In the women’s restroom there will be 2 couches and tables with the appropriate decoration and foliage.

The main part of the building where all the atmospheres will be created will be well ventilated with central heating and air conditioning. The floors will be tiled making it easier to clean up any sand or other materials needed to authenticate the experience.  The walls will be fitted with projector screens depicting moving, real-life scenery specific to the atmosphere being created in addition to the latest in surround sound systems.

Human Resource Requirement

The staffing needs of Island Affairs Catering and Events, Inc will be comprehensive. Most of the people that are hired to work for IACE, Inc will be independent contractors. Due to the nature of the service that we are providing, certain contractors, namely chefs, will have to sign exclusive contracts with IACE, Inc and draw a monthly stipend. We will have on hand 24 chefs and 1 bakery chef. Each atmosphere will have 4 chefs, preferably natives of the atmosphere, who will specialize in the gathering of the island’s staples and preparation of the native dishes of that island.

There will be 6 full-time dishwashers/prep cooks/kitchen assistants, 16 waiters, a 6 man cleaning crew, 3 decorators and 4 bartenders.

IACE, Inc will have on-going collaborations with The Department of Travel and Tourism and Department of Agriculture of each atmosphere we offer. As we are providing an authentic experience, the food will be imported from its native island whenever necessary.

The experience of any member of our team will have to be extensive. Every one on staff and on call will be required to have been in the catering and/or event planning industry at least 2 years with the exception of the chefs who will need 3 years. The chef would need to have at minimum 7 recent years preparing their native foods, prep cooks will need a minimum of 4 years and the other staff members need to have a minimum of 2 years experience.

Island Catering and Affairs, Inc will not be utilizing too many vendors. The only vendor that maybe used would be a local security company for any activities that occur during night time hours. IACE, Inc aims to maintain our reliability to our clients and fear that depending on too many vendors to satisfy our client’s need; will not always be in the best interest of our client. We believe that if we keep everything in house it will also keep the cost to our clients low as we are in business to make a profit. Therefore, adding our profit margin to an already inflated vendor rate may not be a feasible avenue for IACE, Inc to take.

Financial Projections

Island Affairs Catering and Events, Inc’s start-up costs will be $378,200.

The assumptions are shown in the following table/chart:

References

Bureau of Labor Statistics. (2009). Occupational outlook handbook, 2008-09: Meeting and convention planners. United States Department of Labor. Retrieved September 4, 2009 from http://www.bls.gov/oco/ocos298.htm

CNN Money. (2008). Young and restless – top 20 jobs. CNN Money. Retrieved September 4, 2009 from http://money.cnn.com/galleries/2007/moneymag/0703/gallery.bestjobs_young.moneymag/8.html

First Research. (2009). Trade show and event planning: Marketing research. First Research Publication, NAICS Code 56192.

IBISWorld. (2009). Trade show and event planning in the U.S. – industry market research report. IBISWorld.

Market Research. (2009). Trade show and event planning in the U.S. – industry risk rating report. IBISWorld.