Farm and Ranch Recreation Resource Directory

Section 2.  - Marketing Strategies


CONSTRUCTING A MARKETING PLAN

A marketing plan is a "road map" for you to use as you go about selling your business to potential clients. A marketing plan allows you to be organized, efficient, and effective in the process of attracting guests. It also allows you to evaluate your efforts in a quantitative way.

The first issue to address in creating a marketing plan is deciding who is your customer. The more specific you can be, the better chance your strategy will have to be successful. The next issue is the budget. Some money needs to be spent in order to attract customers. Although no hard and fast rules apply, a good guideline, at least in the first few years of business, is to spend from 10 to 30 percent of your expected or actual gross revenues.

Constructing a marketing plan is very simple, once the research phase has been completed. Whereas major companies may have a marketing document of hundreds of pages, a two-four page plan is appropriate for most small businesses.

It is important to remember that a marketing plan is only a guideline, and as such should be changed as needed to meet your goals. In your first years, the marketing plan may need to be revised frequently to suit your needs, your cash flow, and even your customers. You also should be ready and able to take advantage of any favorable situations that may arise. For example, you may learn midway during the year that a targeted magazine is offering terrific rated for new advertisers. You should have the ability to adjust your plan for such a situation.

On the other hand, enough time and thought should be spent on constructing a marketing plan that does not require that changes be made on a weekly basis. The concept of flexibility should not be used as an excuse for not accomplishing a particular task.

The major elements that should be stated in any marketing plan are:

EVALUATING THE PLAN
It is impossible for hospitality providers to become and stay successful without completing this step in marketing. By analyzing what was attempted and achieved, providers gain the knowledge and insight needed to correct, improve, and maintain the particular parts and pieces of the marketing plan. (The same applies for other aspects of the business as well.)

There are several types of "evidence" to analyze during this phase. The first is actual versus projected inquiry and client numbers. You also want to pay close attention to the number of clients received from each different type of promotion (publicity, word-of-mouth, etc.). Furthermore, each publication, book, or show in which you receive mention or bought space should be looked at. Client evaluations should be sent out and carefully examined. Finally, you will want to utilize the information you have gathered on your clients to create a profile of your typical client. From this effort, a clear picture should emerge about the success of your operation and marketing efforts, along with reasons for that success or failure.

Consider using the following approach in evaluating your efforts:

Inquiry Numbers and Client Count

Determine the number of inquiries received in total and the number of total clients or "conversions." A percentage figure can then be extrapolated. One conversion out of 100 inquiries is one percent, which is quite low, whereas ten conversions, or ten percent, is much more acceptable when one takes into account the dollars used to pull those inquiries.

Compare those figures to what your best guess was at the beginning of  the season. Higher? Lower? Were you hoping for too much, too soon?  How did that actual number "feel"? Could you  have realistically handled any more clients?

Critique Promotional Methods
Overall, you will want to determine the effectiveness of each type of promotion you have invested in over the year. To do this, you need to determine the percentage of clients converted from the inquiries received in each category (advertising, publicity, direct mail, etc.) You will then know both the gross percentage and conversion rate for each category. For example:
Percent Conversion Percent of Total Clients
Advertising                      Inquiries:         100
                                       Conversions:       4   


4.0%


8.0%

Publicity                          Inquiries:           40
                                      Conversions:      15


37.5%


30.0%

Direct mail to your list     Inquiries:          200
                                      Conversions:      25


12.5%


50.0%

Other                              Inquiries:         100
                                       Conversions:      6


6.0%


12.0%

TOTALS                                                 50 CLIENTS                                 100%

MARKETING PLAN PREPARED FOR ONE-OF-A-KIND RANCH

Target Markets:
 Upscale travelers with families living in the East, Pacific Northwest, and California who have an interest in this part of the country. Attempt to reach them before their trip.

Goals for Year One:
 Initially have 500 names on list, 1,000 inquiries, and 50 bookings (3 percent conversion).

Budget for Year One:  
Figured on 50 bookings with an average gross income of $1,050 per booking:
50 x $1,050=$52,500; 20% of $52,500 = $10,500. Add $4,500 for first year start-up costs. Total marketing budget = $15,000.

Calendar:

Month      

Activity

       Who                    

      Budget       

September 1. Create mock-up of letterhead copy; take to freelance designer. $
2. Organize and develop your prospect list and customer screen.
$
October 1. Critique final brochure design and copy; take to printer; pay designer.
$
2. Determine ad buys; create mock ad $
3. Make introductory visits to key contracts:   regional and state travel offices,  Chambers of Commerce, Trade associations, other like businesses.

$
4. Write to friends and acquaintances; ask for referrals $
5. Create Website; establish E-mail. $
6. Establish a media list to whom you will mail to regularly.
$
7. Go to hospitality workshop. $
November 1. Pick up collaterals. Begin distributing brochures $
June, July/August Have three different travel writers experience your ranch $
September 1. Review plan for first year; make changes as needed; begin cycle again. $
2. Mail to list in late September $
                                                                                                                                       Total Budget: $

Usually, the best time of year to put a marketing plan together is in September or early October, after summer guests have departed and before advertising and publicity deadlines. Successful marketers always think from three to six months in advance.

Source:  William L. Bryan, President
Off the Beaten Path, LLC

Tourism Online

Telecommunications and eBusiness technologies are redefining the rules of business and the interaction of clientele with business. Some of the numbers include:

With travel and tourism being the largest online revenue category to date, it seems wise to consider putting information from your establishment online. By having your business online, you can access a broader - even international market and provide 24 hour, seven days a week service.

Consider the following steps when setting up your tourism entity online:

Step 1 - Develop a Concept
The first step in creating your e-business is developing a concept for your website. Be sure you know what your site's objective is and how you intend to achieve it before you take it online.

*  What is unique about your business?
*  Who are your customers?

Step 2 - Register Your Business and Domain Name
The domain name you use (e.g. www.amazon.com) will help others identify your business. It is wise to choose a name that is your actual business name or something derived from it.
Check with www.directnic.com or www.register.com to see if your domain name has been taken.
Your site can then be registered with either www.directnic.com or www.register.com once you have decided on a domain name. You can expect to pay less than $100 to get your site registered.

Step 3 - The Site
While you can build your own site in-house if you have the time to learn HTML and experiment, it is important to note that if your site is poorly designed people might not come back to see a new and improved version down the road. Remember you will have to maintain your site regularly once it is live.

For outsourcing design, look for a developer who has the experience and the time to focus on your site and do the job well. Don't get caught in the trap of deciding solely on price or an impressive graphics portfolio because you may not get what you want and need and hidden costs may plague you in the future.

Step 4 - The Content
The site needs to be interesting and convince people to return. Many customers are concerned with making reservations online especially in regards to privacy as well as cancellations. It is important to alleviate these fears by including a customer support page with telephone, mailing, e-mail addresses and a statement of your policies.

Step 5 - Hosting the Site
You must decide where and how to host your web site. Look to www.hostsearch.com for a search engine that will provide web hosting services or www.budgetweb.com/index.html for a directory of inexpensive web hosting services for small businesses. If you have one of these hosting services host your site, expect to pay fees each year for this service.

Step 6 - E-Commerce
If you plan to take reservations for your facility on-line, you must be able to provide a secure way for clientele to send credit card details from their homes. Check out www.verisign.com for security on your site.

Step 7 - Marketing
There are approximately 8.1 million domain names out there on the web, so how do you get people to visit yours?

Register with search engines and directories after preparing titles and META tags for each page. Check with http://siteowner.com/sifree.cfm to get your site listed in the major search engines.

Provide news releases to editors of industry e-mail newsletters, with a request to review the site.

Buy banner ads on industry sties.

Partner with other niche industry sites to cross promote. Consider http://www.ndtourism.com, or, if you are a member of the North Dakota Bed and Breakfast Association, www.bbonline.com/nd/ndbba

Source: Lynette Flage, 
NDSU Agriculture Communications
lflage@ndsuext.nodak.edu

 

Popularity of Activities Offered

Activity

# of Respondents Offering This
Activity

Average
Popularity
Rating*

Most
Frequent
Rating

Other activities** 20 4.80 5
Horseback riding 93 4.66 5
Guided hunting 81 4.46 5
Family-style meals 98 4.24 5
Unguided hunting 75 4.24 5
Cattle drives/riding herd 54 4.07 5
Watching wildlife 134 4.02 5
Unguided fishing 89 3.96 5
Hiking/nature walks 110 3.85 4
Cook-outs 80 3.83 5
Guided fishing 65 3.75 5
River float trips 34 3.71 3
Horseback riding lessons 69 3.68 3,5
Pack-trips 52 3.63 5
Rafting/canoeing 31 3.52 5
History programs/tours 76 3.47 3
Wagon/sleigh rides 41 3.41 5
Camping 64 3.38 5
Children's programs 47 3.34 3
Skeet shooting 14 3.21 3
Photo safari 66 3.20 3
Ranch chores 76 3.11 3
Cross-country skiing 31 3.06 3
Mountain biking 36 2.83 3
Swimming 47 2.66 3
Tennis 5 2.40 1,3
Gold panning 21 2.33 2

*Ratings: 1=not popular to 5=very popular   


Trends in Farm and Ranch Recreation
With Emphasis on How they May Effect Marketing Strategies

Difficult to get handle on the specifics of this issue.  

But, there are some issues related to trends that we do know--that we need to factor into the equation as we go about developing farm and ranch recreation tourism enterprises.

Let's start big:  

But, what does this mean for us -- the farm and ranch cottage industry?  

So, how do we get a piece of this niche market?   Let's go back to trends.
Trends that are helpful to know (from the Forbes Group, 1996):

People are looking for (from 1997 National Leisure Travel Monitor):

But, we can go on and on with trends information and numbers --sometimes tourism is just too bean counting oriented!  

From The Business of Agritourism/Recreation in Montana, July 1997, Institute for Tourism and Recreational Research (Remember: difference between wishful think and reality).

What does this mean?

More information:  

Some helpful marketing facts to consider regarding marketing strategies (from the 1997 National Leisure Monitor):

                 Recommendation of a friend                                          45%                                 82%

                 Recommendation of a travel agent                                  19%                                49%

                 Travel information brochures                                          14%                                37%

                 Articles (editorial)                                                           11%                               33%

                 Travel Advertising                                                             9%                               26%

As for farm and ranch recreation booking agents, are there any? None that specialize, but there are ranch vacation specialists. What do they say about working ranches? Some examples:
         Gene Kilgore's Ranch Vacations
         Shirley Beecham
         Phil Harris' Round Up America
         American Wilderness Experience
         Off the Beaten Path

A clear definition of the western working ranch experience is needed.

A. Destinations versus one of several experiences.

B. Contrast the working ranch experience with dude ranch experience.
                Working Ranch                Dude Ranch
*Less than 50% income from guests *More than 50% income from quest activities
*Usually less than 12 guests at one time *Usually more than 12 guests at one time
*Assist with working ranch operations *Multiple activities available that aren't necessarily ranch oriented tennis, swimming, fishing, and naturalist program
*Horseback riding may or may not be available         *Horseback riding always one of ranch activities
*Experience is often less than a week *One week minimum stay
*An integral part of ranch life *"Being Western"

Often a mix of working ranch and dude experiences at one ranch tends to confuse the distinction and thus the perception--can contribute to the problem.

Standards for working ranch needed.

Developing a niche market identity for your operation.


Make sure you can produce in a quality manner on what you say you have.

A promotion and information clearinghouse/trade association is needed.

Promotes and facilitates co-op marketing.

Such an association/clearing house should be associated in its initial development by:

Maybe a three to five year turkey operation. ---- Oregon has done something like this.

Packaging

Tourism corridor strategies.**
-Look at existing data - where do North Dakota travelers go, come from, etc.
-The I-94 and I-29 corridors.
-The Highways 2, 83, 85, 281 1804 & 1806 corridors.
-Bismarck - Fargo areas.
-Theodore Roosevelt National Park.

Fly dives -
    *Set itineraries, pre priced for independent traveler.

Family driving vacation packages.**
-North Dakota Tourism package

Park to Park**
-Theodore Roosevelt National Park
-State Parks
-City parks
-KOA's

Rodeo/county fair packaging.

-Working ranch vacations that involve local and regional celebrations.

-Special and Unique Topics - fossils, Lewis and Clark, watachable wildlife.

-Cross Cultural Journeys - visiting: a working ranch, a farm, a Hutterite colony, a tribe, a family involved in timber or in mining, etc.

Also look at large tour operator packages.
Lists - Must be your major marketing tool.


Other Collateral's

Your Website



** North Dakota additions  


WHAT TO OFFER - HOW TO DECIDE

The "right mix" of facilities, amenities, atmosphere and recreation are crucial to success. You must make informed, rational choices from a wide variety of options. Business plans must objectively deal with these important choices:

1st step is to define all possible alternatives and list them: The sky is the limit!

Lodging alternatives: (luxury, primitive, cabin, lodge, and home bunkhouse)

Food alternatives: (ranch cooking, gourmet, family style, menu, one seating, scattered seating, individually plated, spa style, ethnic)

Recreational alternatives: (highly organized or on their own, self propelled, horse or motorized, themes, compatibility, owner's interests, competition, market, cost, off-premise recreation possibilities)

Market: (drive by, local, destination, short duration)

CHOOSING THE RIGHT OPTIONS

After identifying and listing as many options as possible that would (might) be appropriate for you and your property, it is important to screen out the inappropriate ones. Here are some of the screens to consider in discarding incompatible or unprofitable alternatives:

Physical Resources: Does the nature of the land support the activity? Will the climate work? Do you have adequate water and septic or sewer? Can you provide your clients convenient access to your place/activity? Will your trails and roads function for proposed activity? Are your improvements and buildings adequate to serve the proposed activity? Do you have the necessary legal access to recreation resources?

Other Considerations: Can you get the necessary permits? Do you have sufficient capital to fund start-up (capital investment and working capital)? Is the risk/reward ration attractive? Can you attract necessary employees? What about housing and feeding employees? Is this alternative activity attractive to you? Can you maintain personal enthusiasm for this activity? Is this activity compatible with other activities offered? What resources will be necessary to provide this? (horses, llamas, cattle, jeep, etc) Do I have the necessary expertise to do a quality job?

PLANNING MAKES ALL THE DIFFERENCE!


This information has been reprinted with permission from the following source:
William L. Bryan, President
Off the Beaten Path, LLC
Bozeman, MT
  


"IMPORTANCE OF PEOPLE & HOSPITALITY"


HAVING A LOT OF COMPANY MOST OF THE SUMMER AND FALL - IS THIS FOR ME?


RANCH RECREATION IS A SERVICE INDUSTRY!

REPEAT CUSTOMERS


WHAT I DO ON ARRIVAL DAY FOR MY GUESTS  

IN CLOSING:
Trends come and go but "western hospitality" will never be out of style!
Visitor expectations
- give more than expected.
Industry standards
- be proud of North Dakota and our "way of life" and work to preserve it.
Be authentic, honest, and friendly!

This information reprinted with permission from the following source:
Dixie Myhre
Buffalo Creek Ranch
Pineview Road
Custer, MT 59024

CUSTOMER SUGGESTIONS FOR IMPROVING WORKING RANCHES, OUTFITTERS, AND BED & BREAKFASTS

Comments Regarding Working Ranch/Dude Ranch Accommodations:
"Room very nice but not a good view (parking area). Common areas a bit shabby."
"Service, attitude, and cleanliness so bad..."
"Nice rooms, great food, but room was directly over garage and very noisy early in the morning. Staff could have been a bit more responsive."
"Our room was sort of dreary and the whole place seemed a little fuddy duddy."
"It was extremely difficult to find in the dead of the night."
"Needs work, because owners are new, don't know area."
"Mattress too soft."
"Proximity to the (owner's) home only detriment. Not a problem, but you knew the owner was right there."
"Cabin too rustic. No place for clothes."
"Small. Not so clean."
"Had trouble opening windows for ventilation in our rooms."
"Bedspread had greasy spots and was dusty. Air conditioner in window - no fresh air."
"Loved them and the house, but the entrance to the area was rather junky."
"Off season meant it was not crowded, but horses and staff were tired after a long season."
"Would've liked more advanced planning for rides and activities."
"Cabin was decorated in French country style with miles of fabric on everything. Why couldn't it just be Western."
"Could have had heat in cottage! It was 15 degrees one night! But they tried with space heaters."
"The riding program is designed for beginners, not for
experienced ones interested in lots of loping, like us."
"Innkeepers not terribly friendly or outgoing."
"Needed more towels."
"The tip envelopes were in plain sight and a bit tacky."
"Bunk beds extremely low. Had to fall out of bed to get up in the morning."
"Somewhat small, access to laundry and telephone were limited."
"Too close to Highway."
"Breakfast was too big a production."
"Some lighter food choices might be nice."
"They tried to prepare gourmet meals which just fell flat. No good alternative choices for children."
"It was disappointing to learn that our 7 year old could not horseback ride. The lodging was worst. The fold out bed was a single size, so one child had to sleep on the floor or with us."
"A large bee swarm had settled under the cabin. Subsequently, there were bees all around the cabin and my daughter refused to go outside. The
downstairs part of the cabin had hundreds of little bugs. The kind that are attracted to night lights. We had to all sleep upstairs because there were so many. The faucet water smelled very bad and was brown. They did not provide any bottled water. One night I took a bath and the water was brown - pretty gross looking. I mentioned it to the owner and he said he was aware of them, but hadn't gotten to it yet."
"Good, but too many large crowds."
"There were large mice and a chipmunk in our room. We killed at least 30-40 moths per day. Maintenance is poor on rooms or cabins. Many guests said the same. While riding was great, virtually no instruction was offered for beginners."
"Food was bas this year."
"A truly grim,
unreconstructed, ugly, not very clean "Bunk house" that you wouldn't wish on your enemies."
"You can ride without a wrangler. This adds some risk because  even if you know what you are doing, they do not know how someone else may have treated the horse the week before. Jim had a horse who bolted one evening. The horse fell, which is
unusual, sending Jim to the hospital. They said the horse's behavior was out of character and perhaps another guest had been racing the horse the week before."
"Accommodations okay, but not quite enough space."

Source: Complied by Off The Beaten Path, LLC- (April, 1999)
27 E Main St, Bozeman, MT 59715 - (406) 586-1311 - www.offthebeatenpath.com

 

[Introduction Page] [Section 1] [Section 2] [Section 3] [Section 4] [Section 5] [Section 6] [Section 7]
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