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Kastaway Island
Business Plan for the Period
Starting January 2002
David Byers
38 Beaverbank Road
Lower Sackville, Nova Scotia, Canada
902-865-9090
December 15, 2001
Table Of Contents
Executive Summary
Business Description
Ownership and Management
Key Initiatives and Objectives
Marketing Opportunities
Competitive Advantages
Marketing Strategy
Summary of Financial Projections
Confidentiality and Recognition of Risks
Confidentiality Clause
Recognition of Risk
Business Overview
Business History
Vision and Mission Statement
Objectives
Ownership
Location and Facilities
Products and Services
Description of Products and Services
Key Features of the Products and Services
Production of Products and Services
Future Products and Services
Comparative Advantages in Production
Industry Overview
Market Research
Size of the Industry
Key Product Segments
Key Market Segments
Purchase Process and Buying Criteria
Description of Industry Participants
Key Industry Trends
Industry Outlook
Marketing Strategy
Target Markets
Description of Key Competitors
Analysis of Competitive Position
Pricing Strategy
Promotion Strategy
Distribution Strategy
Management and Staffing
Organizational Structure
Management Team
Staffing
Labour Market Issues
Regulatory Issues
Intellectual Property Protection
Regulatory Issues
Risks
Market Risks
Implementation Plan
Implementation Activities and Dates
Financial
Plan
Beginning Balance Sheet
Discussion of Projected Net Income
Pro Forma Income Statement
Cash Flow Statement, Year 1
Three Year Projected Annual Cash Flow
Balance Sheet
Business Ratios
Note 1: Revenue Assumptions
Note 2: Assumptions Regarding the Collection of
Sales Revenue
Note 3: Cost of Sales Assumptions
Note 4: Sales and Marketing Assumptions
Note 5: Property and Utilities Assumptions
Note 6: Operations Assumptions
Note 7: Banking and Other Assumptions
Note 8: Wages and Other Assumptions
Note 9: Other Sources of Funding
Note 10: Other Uses of Funding
Executive Summary
Business Description
Adventure * Diving * Kayaking * Canoeing *
Honeymoon * Christian Retreats * Photographers * Hearing Impaired *
Corporate Meetings * Incentive Programs * Water Skiing * Deep Sea
Fishing * Wind Surfing * Theme Parties * Snorkeling * Pre paid
holidays *
Our Business is Helping You "Forget"
About Business!
Picture a lush Tropical Island with palm trees,
waterfalls and thatched roofs that would offer you adventure and
romance. NOW, imagine this lush Tropical Island floating along the
water offering you a chance to travel in luxury with gourmet cuisine,
unlimited fishing and diving and a chance to relax and try out more
water toys than you could possibly enjoy in one day.
The owner has decided to take ten years and travel
around the world, exploring every exotic port, diving it's virgin
waters, treasure hunting for new and old wreck sites, kayaking and
photographing golden sunsets.
"KASTAWAY ISLAND" is a 285 + foot steel
Cruise Ship. During your stay on the
Island, your home will be an air conditioned cabin
with hot fresh water showers, audio and video entertainment centers,
library with over 500 books and more, (all based on two per cabin).
We have a crew of 94 plus the owners to look after
a maximum of 100 guests per week.
A percentage of this vessel will be for weekly
cruise charters, the balance will be pre sold as pre paid holiday
packages. This pre paid holiday package is good for a total of ten
weeks over a ten-year period. You will become a "GUEST" on
our Island and you receive a passport. How you choose to use your
weeks is up to you.
Great for romantic getaways, family reunions,
birthdays, anniversaries & corporate incentives
Three quarters of the earth's surface is water,
while the remaining quarter is land. Mother Nature's intentions are
very clear. A man's time should be divided as thus: ¼ for work, ¾
for cruising.
Ownership and Management
Kastaway Island is owned entirely by David Byers.
All pre paid holiday package
purchases entitle the purchaser to join a
non-profit Society. David Byers is the President & Chief Operating
Officer. There are other positions made from the members such as
Secretary treasurer and Vice President as well as three directors.
There is a management company set up to look after
the day to day operations of the vessel elected by the directors of
the Society. This company is called Island Management Inc. and is how
David will derive his income over the next ten years.
Key Initiatives and Objectives
The primary objective of the company is to pre sell
500 pre paid holiday packages of one week or multiples of one week on
a large vessel that will be sailing around the world.
Two million dollars US is required to purchase and
an additional two million to outfit the vessel with the latest in dive
gear, fishing charter gear and upgrade the vessel to Lloyd's class (or
equilivent).
Once the vessel has been purchased and the
renovation etc. commenced the web site for the weekly charters will be
started. The weekly charter sales will cover the day to day operating
costs, wages, fuel, food etc.
The existing web site will answer most questions
regarding the pre paid holiday packages and the new web site will
address the weekly charter sales.
The web site is located at http://www.encls.net
and the phone number is 902-865-9090
Key Initiatives and Objectives
Pre paid holiday packages offers millions of people
a lifestyle of wonderful cost effective vacations for themselves,
their friends and family. Major companies such as Disney, Marriott,
and Hilton have similar resorts. A number of pre paid programs offer
an almost endless variety of choices from skiing in Colorado, relaxing
on the beaches of the Caribbean, hiking in the Canadian Rockies,
exploring Europe, and more. The most important factor in selecting
which pre paid holiday package is best for you is choosing a resort
that best fits your lifestyle and budget.
Dive shops offer the greatest marketing opportunity
for this project. Through the Internet we will inform the viewer of
the longest cruise voyage in history. With the Internet millions of
potential customers can be accessed overnight.
The transaction will unfold much like a real estate
purchase. We must know if you are serious about purchasing a pre paid
holiday package. You fill out a membership request form and receive a
number from 1 - 500. When we reach 500 potential members our escrow
lawyer will request the funds be transferred to his account.
You will have 30 days to send in the full amount.
If you do not, you lose your number and the person / couple that was
listed at number 501 will move up to number 500. If you wish to get
back on the list, it will be at the end of the waiting list. There
will be ONLY 500 pre paid holiday packages offered.
To further protect you, a Society is being formed
from the 500 pre paid holiday members. The Society (and in turn the
members) has ownership of the vessel in case something happens to Mr.
Byers or the project. The vessel will be sold and your money returned.
After you use your 10 weeks up, you are no longer a member of the
Society. When there are no members left, the vessel becomes the sole
property of Mr. Byers.
Your investment is further protected with insurance
and the entire process should take about 6 - 8 months.
Marketing Opportunities
Our primary target markets are the divers
throughout the world. Other target markets are those that wish to see
the world one-week at a time over the next ten years. We will offer
unlimited diving to all guests which could be as many as 22 dives per
week.
A secondary market will be corporate incentive
cruises. This is where a large company purchases a block of weeks and
every year for ten years gets to send their top producers to a
different place in the world.
A third & fourth market would be to those
people that enjoy ocean kayaking & photography.
A fifth target market is a diverse group made up of
Christian retreats, corporate meetings, seminars or conventions at
sea. The owner has taken two years of sign language so he can offer
cruises to the hearing impaired.
The sixth target market will be deep sea fishing
charters.
Competitive Advantages
Kastaway Island has many competitive advantages.
The main one is that this has never been done before. Cruise holidays
are the fastest growing market segment in the hospitality industry
today but none on a vessel that will be going around the world slow
enough so every owner of a pre paid holiday package can enjoy each
year in a new and exotic port. The "longest" cruise holiday
in history".
The second competitive advantage is the fact that
this will not just look like another big white cruise ship. This
entire ship will look like a lush Tropical Island floating along the
ocean.
This will offer an additional competitive advantage
in free advertising Vs the amount other cruise companies pay for the
same advertising.
Another advantage is within the diving community.
Avid divers can pay only US $9,800.00 / per couple to dive some of the
most virgin waters in the world over the next ten years. No one else
is offering this kind of adventure, excitement or value for your
money.
Marketing Strategy
Between the divers, photographers, Corporate
incentive cruises, Christian retreats, corporate meetings, seminars
and conventions at sea, deep-sea fishing charters and kayakers, the
strategy will be to market fun.
If you just want to relax enjoy all the water toys
that are provided for your enjoyment, many at no cost to the user
Summary of Financial Projections
There have been 500 pre paid holiday packages at a
"discounted" price of $9,800 per couple and $5,900.00 per
single person put aside.
The assumption is that there will be sales from the
ships store as well as an increase in
toy rentals, dive gear rentals, fishing and diving
charters as well as on board film processing, additional liquor sales.
The sale of weekly charters will result in approx.
$90,000 per week or $360,000 per month. The income from all other
sales including shore excursions, E-6 film developing, our own line of
clothing sales, liquor etc. onboard is estimated at between $1,536,000
annually or approx. $128,000 monthly for the first year projections
Confidentiality and Recognition of Risks
Confidentiality Clause
MEMORANDUM OF AGREEMENT ENTERED INTO IN THE CITY
OF_______________, PROVINCE OF ____________, ON THE
______ OF ______ 1999.
BETWEEN Mr. David Byers
AND: __________________
NOW, THEREFORE, THIS AGREEMENT WITNESSETH AS
FOLLOWS:
1. In consideration of viewing any documents by the
Investor, ___________ agrees that during the reading, he/she will
receive various kinds of information, which is of a confidential
nature. Except as authorized by Mr. David Byers (in writing), he will
not disclose or use, either for his own purposes or for any other
purpose directly or indirectly, any information which he obtains
during the course of his reading relating to the business ideas,
technical or business specifications, plans, designs, methods of
marketing including pricing strategies, research and development,
procedures, prices, operating costs, and information (including
documentation, flowcharts, projections and other
financial information), future plans, policies and
all other information and knowledge in whatever form used in
management, marketing, purchasing, finance, operations, or otherwise,
concerning the business of the Company which is of a confidential
nature (hereinafter collectively called "Confidential
Information").
__________ acknowledges and agrees that the
restrictive covenants set forth in this Agreement are reasonable and
valid in all respects and agrees that a breach by him of the
provisions of this Agreement would cause the Company irreparable
injury and damage. _________, therefore, expressly agrees that the
Company shall be entitled to injunctive or other equitable relief in
the event of a breach of this Agreement in addition to any other
remedies legally available to it.
IN WITNESS WHEREOF, the parties hereto have duly
executed this Agreement.
____________ ______________ _____________
XXXXXXXXXXXX
David Byers Witness
Recognition of Risk
This business plan represents management's best
estimate of the future potential of our business venture. It should be
recognized that not all-major risks can be accurately predicted or
otherwise avoided and that few business plans are free of errors of
omission or commission.
Therefore readers should be aware that this
business might have inherent risks that should be evaluated prior to
any involvement.
Business Overview
Business History
Kastaway Island is a new venture founded in 1998 by
David Byers. The concept is to take a ten-year around the world cruise
in a large vessel retrofitted for the express use of this project.
14 guests per week will be pre paid holiday
packages and the other 86 will be booked as weekly charter vacations
or paying guests.
The only way the owner could think of mixing
business with pleasure was to pre sell holiday packages prior to the
purchase of the vessel in order to be able to secure the funding for
the vessel. The general income will be from the sale of weekly
charters to cover the day to day operating costs.
There will be a limited number of pre paid holiday
packages sold (500) which will allow for the purchase of the vessel as
well as the renovation, provisioning, registration,
inspections, insurance and a reserve to be put
aside for emergency use.
There will be no investor required.
There is one space being placed aside for one
support person. At this time this is Mr. Dale Moses. Mr. Moses will
receive "one" berth that will be designated as his property.
Mr. Moses will have the opportunity to cruise the
world or secure a return by selling however many weeks he wishes. If
any week is sold by Mr. Moses, the amount it is sold for (usually
worth $2,000 US per week) is split 50% / 50% with the owners in order
to pay for feeding and accommodating the guest(s) the week was sold
to.
Vision and Mission Statement
Simply put our mission statement is ...
"We are in the business of helping you forget
about business".
Our vision statement ...
We wish to establish a unique alternative to a
hotel room while offering value for your holiday money and a new
exotic port to vacation in every year.
Objectives
The objectives of Kastaway Island over the next 12
months are:
1. To sell 500 pre paid holiday units at $9,800 US.
2. To secure a cruise ship around the 2 million
dollar US range.
3. To identify the yard where all renovation work
will be completed through a tender process.
4. Complete the search for the crew of this vessel
using headhunters catering to the marine industry.
5. Complete all requirements to have the vessel in
class, Bottom Survey / Annual Loadline and Continuous Machinery, etc.
6. Secure a marine lawyer; establish the escrow
accounts, bank accounts, complete the flagging of the vessel in
Panama, Cyprus, the Bahamas or Greece.
7. Complete a new web site to commence weekly
charter bookings
8. Commence the marketing machine with press
releases; direct email marketing, magazine write-ups, DEMA Trade Show
etc.
Ownership
The ship’s name will be KASTAWAY ISLAND.
The web site is under http://www.encls.net
The entire pre paid holiday package portion of this
project will operate under a non-profit Society. This Society will
elect a Management Company called Island Management Incorporated. The
bylaws for the Society have already been written.
The Society will have a board of Directors and the
Management Company will oversee the day to day operations of the
vessel.
The Management Company will be owned in the
following manner:
100% owned by David Byers
At the end of the period of ten years (or as soon
as they use up their 10 weeks – which ever is sooner), the rights of
each non-profit member (the pre paid holiday purchasers) will dissolve
and the vessel will revert to 100% ownership of David Byers. The
members will have the security of this vessel until their ten weeks
are used. That is the idea of the non-profit Society and it’s main
function.
Location and Facilities
Kastaway Island is headquartered on the Internet
under http://www.encls.net.
All information about the vessel, the ten-year trip
around the world, pre paid holiday sales, weekly charters, newsletter,
costs, employment opportunities, the cruise itinerary, legal
agreement, bylaws, and more can be found on this site.
The monthly newsletter will be prepared
electronically to keep the viewer informed of where we are, changes in
our plans, what weeks are available for bookings, and more.
For maximum protection for the pre paid holiday
package owner, David Byers are setting up this entire project as a
non-profit Society. The members get all of the benefits and none of
the liabilities.
The majority of the marketing will be completed on
the Internet.
The web page site is completed and we are poised to
start the marketing portion of this venture. A North American toll
free number will be established for ease of contact.
Products and Services
Description of Products and Services
Kastaway Island is offering two products for a
ten-year period.
The first product we are offering is the sale of
pre paid holiday packages.
The first stage is prior to the purchase of the
vessel and is the best deal available. This pre-purchase offer is for
500 weeks for a one-time fee of $9,800.00 US. The purchaser gets to
use the vessel for ten weeks.
The life expectancy of this vessel will be eleven
years. The eleventh year is being put aside to look after any and all
people that had experienced problems due to mechanical breakdown,
strikes, weather or any unforeseen circumstances whatsoever in the
first 10 years.
The second product or phase we are offering will be
the sale of weekly charters. This is where the vacationer pays between
$1,295.00 US and $1,995.00 US per person per week, and cruise as they
would on any cruise ship for the week(s) of their choice.
Different times of the year the rates will be lower
and others (like a Christmas or New Years cruise) will be more.
This vacation is all-inclusive and means that your
accommodation, all meals, some beverages, snorkeling, the floating
trampoline are available for your enjoyment at no cost or very little
cost to you.
There are rentals for water toys, unlimited diving,
other water attractions, and more available to all guests.
Other activities that will make up the annual
activity list will be Christian and Corporate retreats, ocean kayaking
excursions, deep sea fishing charters, honeymoon cruises and charters
for the hearing impaired.
Key Features of the Products and Services
The biggest KEY FEATURE is OUR MONEY BACK GUARANTEE
Kastaway Island is offering a money back guarantee
for the first three years. This is unheard of in this industry. We
will purchase the week(s) back from you if you do not want it during
the first three years (minus what you have used).
The pre paid holiday package owner can accumulate
weeks for the following year or sell the week and keep the money.
The only other fee is the annual upkeep fee of
$450.00.
The outside of the ship will look like a lush
tropical island and the inside will have air conditioned cabins.
One section of the vessel will have cabins with
theme rooms that anyone can up grade into.
Avid divers will experience unparalleled diving
throughout the world in a vessel going slow enough to enjoy the diving
with up to 22 dives per week.
No guest will get bored, "guaranteed"!
There are more water toys available than you could possibly use in one
week.
The ultimate dive live a board.
Production of Products and Services
You keep track of where we are in the world via our
Internet web site and our monthly newsletter.
You arrange to fly where we are, we pick you up at
the airport, drop you off again and in between you are our guest.
Kastaway Island has acquired a network of in-house
desktop publishing systems. In-house desktop publishing systems allow
for high quality publishing and creative control, all at a minimal
cost.
This process will be used for the weekly shore
excursions plus an onboard newspaper.
All pre paid holiday package sales are through our
office. No high pressure sales tactics or give - a - ways to get you
into a room. There are only a limited number of these weeks available.
Future Products and Services
Our future products will include new and exciting
water toys
There will be water trikes, a 20 foot floating
trampoline, 2 person petal boats, sea cycles, Scupper ocean kayaks,
yaks which are glass bottomed kayaks, windsurfers, banana boat, jet
skis, water skis and snorkeling.
We will offer dive instruction and deep sea fishing
charters.
The web site has several pages of color photos of
the water toys for your enjoyment.
At special times of the year there will be
"feature" or "theme" cruises. Other special events
will command a higher demand and a special cruise will be planned for
this event if we are in the area.
Comparative Advantages in Production
By using the proceeds from the prepaid holiday
packages we are able to secure a larger more stable vessel. We can
have the best dive equipment on board and attract and hire the best
Captain and crew available.
The weekly charter sales will cover the operating
costs of the vessel throughout the year
There will be access to cheaper labor and
materials, as not all the work required would have to be completed at
the shipyard.
Lower overhead costs will be realized due to the
fact that the vessel will be paid for outright with the pre paid
holiday package revenue. No large monthly payments will assist with
the competitive advantage.
People want to have fun on their vacation. The fact
that this ship will be painted to look like a lush tropical island
floating on the water will offer a large competitive advantage and the
illusion of "FUN" over the plain white cruise ships.
Industry Overview
Market Research
To analyze the market potential of the cruise ship
industry and the pre paid holiday package market; we collected data
from a number of sources.
We conducted a survey of dive storeowners in North
America in November / December 1997. The survey results were used to
prepare profiles and gauge what type of pre paid holiday package sales
and charter cruises were in demand.
Newspaper clippings and journal articles gleaned
from the local library and the Internet was also used as sources of
market research information. Subscriptions to numerous publications
already in print, newsletters and many books have been secured.
Information was secured from the International
Diving Equipment and Travel Trade Show "DEMA" and the owner
has personally spoken with many dive operators offering these services
at present.
Copies of Lloyd’s List newspaper have been
secured as well as directories of existing liveaboards, cruise ships,
and travel agents. Boating, yachting and diving magazines have been
purchased and media kits have been secured for advertising rates and
data from all media associated with this industry.
We have surveyed current and potential customers,
reviewed research reports and statistics prepared by others, read
magazine and newspaper articles, and spoken to people particularly
knowledgeable about this industry.
Size of the Industry
There are over 4,400 pre paid holiday package
resorts worldwide.
More than 3,200,000 households now own a pre paid
holiday package.
Over 560,000 sold in 1995 alone.
Over 5 million weeks sold since 1980.
Europe represents 28% of the market with 1,200
resorts in 21 Countries.
While 1998 figures are not yet available, a similar
increase is expected by industry experts.
According to Cruise Lines International Association
(CLIA), in 1999, 5.4 million North Americans cruised on ships owned by
U.S.-based cruise lines, a figure that's up 7 percent over the
previous year. Another 500,000 sailed with cruise lines not based in
the United States. The cruise industry has responded to vacationers'
obvious approval of their product. There are currently dozens of
cruise lines, more than 223 passenger cruise ships of all sizes (up to
100,000 gross tons!) and more than $24 billion has been committed to
building 60 new ships by 2004, increasing passenger capacity by 35
percent.
In the 1970s -- the beginning of cruising's heyday
-- no one would have believed that the future would hold ships that
carry as many as 3,000 people, cruise at speeds of 27 knots per hour
and offer features such as 24-hour Internet cafes, non-smoking
environments, rock-climbing walls, skating rinks and virtual reality
centers! But this is all part of cruising today!
The cruise industry is experiencing an explosive
growth rate of 8% per year.
The worldwide cruise ship fleet includes 223 ships
that carried 9.5 million passengers in 1998; approximately one-half of
this fleet operates in North American waters.
Since the movie "Titanic" the cruise ship
industry has experienced a 28% increase in bookings.
All industry experts agree that the phenomenal 28%
increase in interest in cruising is a direct result of the movie and
that growth will continue for at least three to five more years.
Most cruise lines have indicated that they are
booked for more than 4 - 6 months in advance at the present time.
Carnival and Cunard both broke their all time individual daily booking
figure in January 1998 with over 96,000 bookings in a single day for a
one-week cruise holiday.
Key Product Segments
Key segments of this industry are all offered by
the weekly cruises. Kastaway Island caters to a wide and diverse group
of people in most every outdoor-related product segment. Some of these
are as follows;
Diving and snorkeling excursions
Fishing charters
Ocean Kayaking
Photography
Treasure hunting
Corporate incentives
Christian retreats
Honeymooners
Hearing impaired cruises
Adventurers
Theme cruises
Burn out / Stress cruises
Murder mystery cruises
Key Market Segments
Our market(s) consist of potential buyers. It was
useful to segment these buyers into various groups (market segments)
based on their different wants, tastes, geographic locations, buying
attitudes, buying practices, and/or demographics (age, gender, level
of income, family size etc.). Dividing the industry into different
segments helped us to better understand the potential markets for our
services.
By far the largest market segment are the avid
divers and our offering unlimited diving plus diving instruction.
The other market segment is broken into three
groups. These groups have a specific level of income, different wants,
tastes and very specific buying practices.
They are the Corporate & Christian retreats,
Honeymooners, and the Fishing / Ocean Kayaking adventurers
Purchase Process and Buying Criteria
There are five stages that buyers go through when
purchasing a pre paid holiday package.
Awareness of need. The first step in the process is
for the potential buyer to recognize that they have a need. They may
find that they have a need for ketchup when they go to the fridge and
find that their last bottle is empty.
Other buyers may not recognize that they have a
need for a pre paid holiday package until our advertising convinces
them that they do.
Search for Information. Once the need is
identified, the potential buyer will collect information to assist
them in making the purchase. If this buyer is simply repurchasing
ketchup, this stage is very short. The amount of time spent searching
for information tends to vary depending on the characteristics of the
buyer, the type of product, price, and the availability. In general,
the more expensive and the more complicated the purchase, the greater
the amount of time that the buyer will spend searching for
information.
Evaluation Of Alternatives. Buyers use the
information they collect to decide what information is important to
them and then assess how various products stack up against those
characteristics.
Purchase Decision. After the buyer has evaluated
their alternatives, they will make a purchase decision.
Post Purchase Behavior. After purchasing a product,
a buyer will experience some level of satisfaction or dissatisfaction.
We will provide after-sales promotion and support
to help reinforce the purchase by making sure that the buyers feel
good about their decision.
Our pre paid holiday package will be purchased
direct from our office with no high pressure sales and we offer 3 year
money back guarantee.
Description of Industry Participants
There are currently 223 cruise ships operating in
the world and 36 currently being built worldwide.
This is the fastest growing sector of the holiday
industry in the world. Cruises have jumped 28% since the movie
Titanic.
Some of these larger cruise ships have up to 2000
people on board at the same time and the largest ship being built now
will carry 3000 passengers. These are mainly floating department
stores that do not offer you the enjoyment of water toys, diving,
fishing etc., unless you pay extra for it as a shore excursion
purchase.
Usually they are in a port for one day and you must
be onboard by a certain time or she sails without you, and you sail
all night.
Our company is offering a ten-year around the world
cruise where the vacationers will spend their week mostly in one place
but never in the same place twice over the ten-year period.
This gives the guest the opportunity to truly relax
and get to see the area they are travelling through while enjoying
some quiet time, and all without standing in lines to get off and back
on the ship.
The island will be cruising slowly enough so that
everyone can enjoy time in the sun, diving, snorkeling, the water toys
and quality time with your family.
We're in the business of helping you forget about
business.
Key Industry Trends
The only thing that is constant in business is
change.
We offer a unique alternative to hotel rooms and
resorts. Many people are wanting to get away from the beach but also
want a smaller intimidate crowd to share their experience with.
The trend is toward pre paid holiday packages and
cruise ship holidays, as these are the fastest growing segment of the
holiday industry worldwide. We have combined both is a unique 10 year
venture. The single biggest factor in this huge growth has been the
introduction of the computer and the Internet.
According to a 1996 Toronto Daily Courier report
and several excerpts from other national newspapers, a total of 3.2
million Canadian households, or 32% of all Canadian households, own a
personal computer. A Hamish Mead study conducted in 1997 discovered
that 25% of Canadians polled plan to purchase a personal computer in
the next five years. By the year 2001, industry experts anticipate
that 50% of Canadian households will own one or more personal
computers.
Many of these users subscribe to daily postings and
subscription service agencies such as
postmaster, yahoo etc.
The trend at present is in the pre paid holiday
package and cruise ship markets.
Industry Outlook
The market outlook for this venture is extremely
positive.
As a pre paid holiday package owner you vacation or
sell your week and keep the money. Use this as an investment or as
holiday time.
Corporate incentive programs and employee benefits
packages have the greatest opportunities for growth over the next
three to five years as more and more employers are rewarding their
greatest assets, their employees.
If you are a business or large corporation you can
purchase as many weeks as you wish and can send your key employees
somewhere new in the world, every year. A bonus or incentive package
they will strive to reach next year and the year after.
It has been a proven fact that this type of
corporate incentive and peer recognition is not soon forgotten!
Marketing Strategy
Target Markets
Our primary target market is to the diving
industry. We will be diving virgin waters night and day.
There will be wreck dives, cave dives, deep dives,
wall dives, night dives, shark dives, stingray dives, whale dives,
photography dives and treasure dives. There will be instruction to
diving available on board. You can take a cruise and leave a certified
diver. What nicer place to learn how to dive than 82 degree water?
The secondary segment will be made up of those
people that are adventurers and just want to get away for a week or
two every year. This segment would include ocean kayakers, sports
fishermen, and those that do get away at least once every year.
The third segment of our target market is the
honeymooners that just want a fun place to go and be pampered for a
week.
The fourth segment will be Christian retreats,
corporate meetings, seminars, conventions and banquets
The fifth segment will be the hearing impaired. The
owner has completed two years of sign language courses and has
identified a need in this market segment which includes as many as one
in every ten throughout North America
Description of Key Competitors
While there are 223 cruise ships to chose from most
offer the same thing to their passengers, the chance to get away and
relax. Those taking a cruise are doing so for a variety of reasons.
The existing cruise companies cater to children,
the elderly, theme cruises, and murder mystery cruises, Club Med,
sports and fitness cruises and celebrity cruises.
The existing companies are pre booked for 4 - 6
months in advance every year. This is a fast growing industry with
lots of room for future growth.
The key competitors in this industry are a bonus
due to the advertising dollars they are spending promoting the
industry.
Analysis of Competitive Position
Kastaway Island has several competitive advantages.
The pre paid holiday package owners will be
cruising at 1/4 or 1/2 of the normal cost of a cruise holiday.
This is the only ship at this time that will be
offering a pre paid holiday package combined with a ten year around
the world cruise, that includes up to 22 dives per week and as many
choices of water toys for the guests enjoyment.
There will be no daily or weekly route to and from
set places over and over. The scenery will be ever changing.
This ship also will cater to those adventurers
seeking to fulfil their fantasies in a unique theme room.
There is one room that will look like a
150-year-old wooden ship. Another room will have a lush tropical
jungle and yet another has your bed atop a sandy knoll with ocean all
around you on your own deserted island. These are but three of 6 theme
rooms.
The prices for a week's cruise will be the same as
the most other cruise ships.
The vacationer will have access to the Island's own
line of sports wear, calendars, one hour photo processing, under water
camera rentals, deep sea fishing charters, dive gear rentals, and the
use of our under water camera to video tape your dives.
With the ship not rushing around the world in 80
days the guests have the time to relax and really get to enjoy the
area they are in for the week (or more) that they have there. Just
think of all the virgin dive sites within a 3 - 5 mile radius of the
island.
These combined with the offer of an unheard of
three-year money back guarantee are some of the competitive advantages
this cruise ship will offer.
Pricing Strategy
Our strategy is to price our products at a level
comparable to our competitors on a national scale, and for those
members that have pre paid holiday package the cost per year to enjoy
a cruise holiday is under $600.00. The average cost of a 7 day cruise
most anywhere in the world $1,200 to $1,995.00.
Kastaway Island's pricing is based on the two
methods available. The first one is the pre paid holiday packages. The
pre paid holiday package is only US$9,800.00 for a couple and
$5,900.00 for one person for one week every year for ten years.
The other method is the weekly charter sales. This
will be in range with the rates the competition is charging as
mentioned above.
The pre paid holiday package are the best value,
however there are only a small number of these being sold as the
income for the day to day operations is derived from the sale of
outside weekly charters.
Pre paid holiday package members also can bring
other guests on for a reduced rate and are able to pre book their
vacation time on a first come first served basis for the entire ten
years (also unheard of in the industry). They may book their guests
for up to 12 months.
Promotion Strategy
Kastaway Island's promotional strategy targets all
users of vacation time throughout the world. The Internet will be used
extensively in all marketing efforts. Direct mail contacts to the
diving industry the Internet is underway at the present time.
Lists of diving shops world wide have been secured
as well as marinas, resorts, lodges, businesses, hearing impaired
schools, corporate incentive travel and fishing enthusiasts. The
marketing team has a list of every magazine in North America and has
secured a media kit from these magazines for advertising purposes.
Prior to paying for any advertising we will solicit the services of
professional press release companies to write a press release and send
it out to all print media as well as all television and radio media in
North America and worldwide.
The unique attraction for the above to want to do a
story on this vessel is the fact that it will be painted to look like
a lush tropical island floating along the water.
In addition, Kastaway Island will participate in
travel and travel related trade shows throughout Canada and the United
States.
After we have exhausted all free marketing efforts,
we will secure paid advertising.
Distribution Strategy
Our distribution will be through our own head
office. All sales will come through our staff. The pre paid holiday
packages will be sold exclusively through the Internet and word of
mouth as well as the free stories and write-ups that will result from
the press releases. Some trade show exposure will also be used.
Travel agents will make solicitations to sell pre
paid vacation packages as well as weekly charters on our vessel for a
commission.
We are investigating some travel agent courses to
see for ourselves what it would take to have our own travel agency
onboard. This would generate additional revenue for us as well as
being able to provide an additional service to our customers by
offering them airfare included in their travel plans.
Initial plans are in the works to entertain a
strategic alliance with a large travel agency and lean on their years
of experience while securing the additional discounts for our clients
and in turn us.
Management and Staffing
Organizational Structure
Kastaway Island will be an incorporated society
with an established board of directors. The Society will appoint a
management company to oversee the day to day operations of the ship.
This management company will be owned and operated by David Byers.
The vessel will have a Captain who is responsible
for the operations of the vessel as well as the entire crew. The
engineer is responsible for the day to day running of the engine room
and running gear of the entire vessel. The First Mate is second to the
Captain in assisting with the overseeing of the crew and the day to
day activities of the vessel.
The balance of the crew are made up of a cruise
director / purser, hotel manager, food and beverage manager, executive
chef, a pastry/baker chef, the dive team, office staff, general
maintenance, junior engineers, radio operators, stewards and cleaning
staff. The entire crew positions, requirements, wages and benefits
information can be found on our web site at http://www.encls.net
The crew picked out so far speaks 6 languages
between them, 5 are dive instructors and 4 are certified chefs. There
is a full time fish master for the fishing charters and the main
office staff can run the one hour film processing machine as well as
the printing equipment for publishing the monthly news letter, weekly
bulletins and updates.
In all there are 94 crew plus the owners looking
after 100 guests.
Management Team
The key management team is being assembled at the
present time. More information can be obtained by regular and frequent
visits to our own domain address on the World Wide Web.
We are located at http://www.encls.net.
Here you can request whatever information you would like as well as
receive the answers to many other questions.
The previous organizational structure outlined the
key positions. The web site outlines the entire business with
frequently asked questions, photos and legal agreements, bylaws, etc.
The Captain of the vessel will make up a major
portion of the management team along with the owners and other
officers on the board of directors.
Staffing
Kastaway Island will have 94 staff. We have posted
their projected wages on our web site. There will be a revolving
schedule.
Contracts vary, but are normally 6 - 9 months.
Contracts can be renewed. Career path
advancement is possible.
Labour Market Issues
None of the staff are unionized and there have been
no attempts by staff or outside agencies to do so.
Employees receive a standard benefits package
including medical and a limited dental plan. At present there is no
company pension plan. With unemployment in this industry hovering
around the 10% mark, there is no shortage of skilled labour to fill
any existing or new positions on the ship.
We feel that due to the look of the ship the
ability to attract quality staff should not be a concern.
Regulatory Issues
Intellectual Property Protection
Each page of the web site is copyrighted once it
has been produced. All articles posted on the World Wide Web are also
copyrighted.
We own the name www.encls.net
Regulatory Issues
In accordance with Maritime Law and Industry Canada
regulations governing cruise ships and pre paid holiday package sales
in Canada, we feel that we have met or exceeded the requirements in
place at this time.
Risks
Market Risks
Kastaway Island has relatively few paid holiday
packages sales at the present time. While interest has grown as
expected in the diving, fishing, hearing impaired and kayaking
circles, paid holiday packages have not yet started selling. A lack of
a strong sales force may create a market risk in the future. The lack
of support from any media would also present a market risk.
Implementation Plan
Implementation Activities and Dates
Within the next several months Kastaway Island will
undertake the following activities:
1. Finalize agreements with the owners of a vessel
and place a conditional sales contract on her.
2.Continue our efforts in getting the office set
up, all filing, the web site etc. completed
3.Continue securing email lists of dive shops and
special interest groups.
4.Attend and participate in DEMA '2002, a diving
trade show in the USA.
5.Prepare artist’s renderings of the
"look" of the lush tropical island theme to be painted on
the ship.
6.We will hire a pre paid holiday package sales and
marketing agent with experience in this market.
Financial Plan
Discussion of Projected Net Income
Production wages relate to the $1,000 commission
offered to the pre paid holiday package sales agency employed by
Kastaway Island. This shows commissions of $1,000 per pre paid holiday
package sold and shows the first 500 sold within the first 7 months.
The balance of the year has the remaining 200 post construction units
sold. The Second and third years have no costs associated with the pre
paid holiday packages and this is reflected in the low costs over year
one
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