Project Yachts for Millennials Final Booklet Voyage

THE VOYAGE OLIVIA MOORE, MOHAMED BOUNAIM, STEPHEN GALIARDO, MAX JORDAN, AND DANIEL WALSH, THE VOYAGERS

T H E V O YA G E R S

TA B L E O F C O NT E NT S THE TASK ..............................................................................................4 THE TARGET .........................................................................................17 THE TACTICS ........................................................................................25

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T H E V O YA G E R S

THE TASK

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T H E V O YA G E R S

W H AT W E ’ R E D O I N G Looking for a fresh perspective, The Moorings gave our class the opportunity to develop strategic initiatives to tap into the millennial generation. As the world’s leading marine leisure business, The Moorings provide sailing and yacht chartering vacations with premium customer service. The Moorings emphasize their vacations as an opportunity of a lifetime that create unforgettable memories. With the dwindling Baby Boomer generation as their core customer, The Moorings have now shifted their focus to appeal to the Millennials. Our team, The Voyagers, have developed strategies to accomplish this mission. We invite you to join us on our strategic journey...

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OUR RESEARCH The Moorings’ Largest Competitors • • • • • •

Nielson Sunsail Mediterranean Sunsail Caribbean Marine Max Caribbean British Virgin Islands Yacht Charter Dream Yacht Charters

Data provided by The Moorings

Industry Data • Number of boats in market decreased by 9% in 2013 • Winter saw largest increase in sales • 1.9 Million “Affluent” Sailors

The Sailing Market 2014, The Sailing Company

Market Opportunities • Dynamic industry • Outreach to consumer loyalty • Marketing to a virtually untouched generation, the millennials.

SOMEONE WHO CHARTERS A YACHT OR SAILBOAT EXPECTS “MORE”, WANTS TO BE TAKEN CARE OF, & LIKES TO FEEL EXCLUSIVE.

Yacht Charter Data Positive trends: • Bareboat chartering increased 15.4% from 2013 to 2014 • Value of bareboat charters increased 30% from 2013 to 2014

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T H E V O YA G E R S

F IV E F O R C E S M O D E L Substitute Products • Products defined as providing unforgettable experiences, not just simply selling yachts.

Similar experiences as provided from competitors.

• Competing yacht charters • Fact competitors use Moorings-quality yachts • Cruise lines destinations (Royal Caribbean International) • Amusement parks (Disney World, Busch Gardens) Industry Consumers • Active consumer base: Boomers (50-68) • Married • Beginning of retirement age-group • Target Consumer base: Millennials (20-37) • More education opportunities • Greater desire to travel We aim to understand what creates a loyal consumer base within the Vacationing Industry and how to form such a relationship with Millennials.

Suppliers • The Moorings has an exclusive partnership with Yacht producers Robertson & Caine’s, with the market advantage of vintage, unique and custom-made yacht models.

• Other possible Yacht builders (http://www.superyachts.com/directory/yacht-builders.htm)

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Firm Rivalry Firm rivalry is defined as the extent to which our competitors offer comparable or superior products and services. For our purpose this ranges from competitors offering full service all inclusive charters (ie. Nielson) to charter companies who only offer outdated yachts and minimal services.

• Highly competitive firms • Nielson • Marine-Max Caribbean • Sunsail Mediterranean • Least competitive firms • Bareboat charters • Conch • Catamaran Company

Industry Dynamics Notable developments within the Sailing and Yacht-chartering industries include the relative growth of Bareboat chartering in the last few years (15.4% increase in 2013), with a greater consumer preference for sailing in the Caribbean, which now holds a 70% market share (Virgin Islands & Puerto Rico especially). This also coincides to a larger increase in business during the winter seasons, especially in the North American markets.

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T H E V O YA G E R S

B U S I N E S S M O D E L C A NVA S Customer Segments The Moorings’ most important customers are affluent Baby Boomers. The Moorings should continue to create value for Baby Boomers while beginning to focus on developing a millennial customer base.

Customer Relationships Both Baby Boomers and Millennials want personalized relationships with companies.

Millennials want relationships that are engaging and fun. Baby Boomers want to be taken care of. Both customer segments need investment in time and money and should be funded fully to be more profitable.

Channels Millennials prefer to be reached via social media, they are already on it and want to engage with companies through it. Baby Boomers prefer to be reached through luxury lifestyle magazines that cater to their good taste.

Value Propositions Millennials and Baby Boomers want all inclusive vacations that they can tailor to their unique preferences. Whether they want a fun water adventure or a leisurely yachting trip the Moorings can deliver the value customers expect.

Key Activities The Moorings needs to more actively engage on social media, magazines, as well as music streaming sites to target Millennials. To target Baby Boomers The Moorings is actively engaged with various magazines that they enjoy reading.

Key Resources The Moorings’ key resources include their yachts and charter crews, as well as their substantial financial resources as a subsidiary of TUI Marine.

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Key Partners The Moorings’ key partners include Robertson & Cain and various local businesses on the British Virgin Islands. Strategic partnerships in the future with the World Surf League would help engage Millennials in the United States and the world.

Cost Structure The Moorings’ cost structure includes paying for the maintenance of boats, pay for the crews, as well food and beverages supplied on the yachts during charters.

Revenue Streams Revenue streams for the Moorings come from not only crewed yacht charters, but also single room occupancy crewed yacht charters, and bareboat charters.

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MISSION

“To bring brand awareness to the Millennial Generation and communicate our core values and offerings.”

VISION

“To provide Millennials with an opportunity to experience the journey of a lifetime while establishing relationships that create lifelong customers.”

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66%

CONSIDER VACATIONING IMPORTANT

$5386 AVERAGE SPENT ON VACATIONS IN 2015

320,000,000 EXPECTED TRIPS TO BE TAKEN THIS YEAR

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81%

OF MILLENNIALS ARE ON FACEBOOK

73%

OF THEM POST TO SOCIAL MEDIA ONCE PER DAY

44%

WILL ASK FOR TRAVEL ADVICE FROM SOCIAL MEDIA

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S U R V E Y R E S U LT S 90% 10% 90% of survey respondents had never heard of The Moorings.

62% of Millennials 9% 33%

58%

Online In Print Both

Most Millennials surveyed prefer to travel with friends, family, or their significant other.

Alone

Significant Other

Less than once per year Once per year Twice per year Three times per year 4 times per year

17%

34%

Friends

Family

The majority of Millennials surveyed vacation at least once per year. This is how that data breaks down.

25%

19%

6%

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SW O T A N A LY S I S A SWOT Analysis identifies the strengths and weaknesses internal to the organization and the opportunities and threats external to the organization.

Strengths

Weaknesses

• The Moorings is an exclusive

• Website reviews do not reflect

vacation experience for the vacationing elite.

• The Moorings deliver unforgettable

experiences across the globe.

• Exponential access to resources as

a subsidiary of TUI Marine.

Opportunities • New Partnerships with World Surf

League.

• Millennials a previously nearly

untouched generation in regard to the yacht chartering industry.

current data.

• Website photos are not all

inclusive to targeted demographic.

• Delayed start in establishing

social media platforms (Facebook, 2013/Instagram, 2014).

• Core product is within a declining

Threats • Millennials spend far less time planning vacations when

compared to older generations.

• Expensive product offering

compared to value desired by Millennials.

• The Moorings operate in a highly

saturated market.

• Today’s technology-driven world

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T H E V O YA G E R S

O U R M I L L E N N I A L S T R A T E GY Value - Deliver unprecedented value for a competitive price.

Attainability - Yacht Chartering is within their reach.

Desirability - Create a desire in the client’s mind that they must try our vacation.

The Experience - In keeping with The Moorings values, we believe selling “the experience” is one of the most effective methods available to reach Millennials.

C O M P E T I T IV E A DVA N T A G E The Moorings are currently employing a “Focused Differentiation Strategy”. This strategy seeks to differentiate The Mooring’s product offerings from their competitors by outcompeting them with the use of superior attributes in an effort to appeal to a niche consumer base (affluent sailing).

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THE TARGET

We have identified three personas within the Millennial Generation The Moorings can strategically target.

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PERSONAS

THE ACHIEVER

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THEY’VE TASTED SUCCESS AND THEY WANT YOU TO KNOW IT. Achievers are status seekers. They have been in the workforce for enough time to have begun to build a name for themselves. They are driven, motivated, and determined to be successful. Achievers comprise 9% of the millennial generation. They typically have income between 40 and 75 thousand dollars. They work hard, and they play hard. They deserve it. The Moorings can target them now, because they are ready for a luxury crewed yacht vacation.

9% Achievers comprise 9% of the millennial generation.

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T H E V O YA G E R S

PERSONAS

THE EXPERIENCER

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FOR THEM LIFE IS A VERB. Experiencers want to live full, vibrant lives. They are brave, courageous, and willing to go to the end’s of the earth for the adventure of a lifetime. And they want to have that adventure again and again. Some are ready to set sail, others are desperately waiting for their maiden voyage. They typically have incomes between 30 and 59 thousand dollars. The Moorings can offer the adventure these millennials seek right now. And once they’ve seen one part of the world in a Moorings yacht, they’ll definitely be in wanderlust for their next Moorings vacation and a new part of the world to discover.

59%

59% of the millennial generation is made up of Experiencers.

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PERSONAS

T H E S T R IV E R

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THEY ARE ONLY JUST GETTING STARTED. Strivers seek out opportunities for success. They want status and will work for it. They can be found in college campuses across the country. They’ll spend their weekend mornings or afternoons at Starbucks doing homework, studying for exams, and working on group projects. You’ll know because they checked in on Facebook, Instagrammed their grande chai tea latte, and then tweeted it. While they have the lowest income at 15 to 29 thousand dollars, they are in the gestation stage of their careers and will eventually be able to afford a Moorings vacation. The Moorings should invest time into a relationship with the Strivers now.

24%

Strivers make up 24% of the millennial generation.

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THE TACTICS

We have researched key outlets to reach the three personas identified earlier; voyage maps follow each tactic to illustrate how they would work.

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THE MAGAZINES While millennials are a technology-driven generation, they are still reading print magazines. By producing appealing ads within millennials' favorite magazines, The Moorings can target this generation. Through database research and our group's survey, we found that millennials enjoy reading fitness/health magazines the most.

Millennials want to look good and feel good, truly encompassing this preference. To target the female population, The Moorings can advertise in Fitness which has a median age of 39.2 for female readers.

To target the male population, The Moorings can advertise in Men’s Fitness which has a median age of 37.1 for male readers. The aesthetic of the advertisement is very important. By incorporating social media icons into the ads within these magazines, The Moorings will be able to connect with millennials on a deeper level.

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#MooringsGetaway

Connect with us:

www.moorings.com Example Magazine Advertisement

T H E V O YA G E R S

THE SOCIAL WEB Millennials are the generation that founded the social media movement. The Mooring's lack of social media presence is a significant weakness that needs to be addressed. By adding the position of Social Media Coordinator, The Moorings will be able to create a stronger connection with their target market. The Social Media Coordinator is in charge of posting multiple times a day on each social media platform, interacting with users, while also addressing any questions or concerns of users.This position is currently a great part-time opportunity for a student seeking an internship. After increased exposure and a larger following, The Moorings can then offer this position full-time as part of their marketing team to prospective employees.

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The Achiever is skimming through the latest Fitness magazine when a Moorings ad strikes her eye. She has been looking for a unique vacation for her annual girl’s getaway and knows this is it!

She goes on Facebook and messages all her girlfriends about The Moorings. They agree on booking a crewed yacht!

The Achiever has the best girl’s trip ever! She and her friends take tons of photos of themselves jumping off the side of a yacht, sipping on tropical cocktails, and sunbathing on private beaches.

Every time they hop back on the yacht, they use the free wifi to post all of their photos on Facebook, Instagram, and Twitter. They can’t resist snap chatting their fabulous meals either!

#TBT

#FBF

After returning from her vacation The Achiever uses the hashtags #ThrowbackThursday and #FlashbackFriday to share her amazing memories of an unforgettable girl’s trip. !29

T H E V O YA G E R S

T H E WAV E S We have already discovered that 59 percent of the millennial generation is in the experiencer demographic.

This generation of millennials is largely adventure driven.

They have an intense desire to travel to new places and immerse themselves in different cultures. How can The Moorings reach this new demographic?

We suggest implementing a new vacation package, the surf charter. Our suggested partnership with the World Surf League would reach this demographic. This could look like event co-sponsorship, or simply advertising on the WSL website during an event by way of commercials or banner advertisements. A potential customer at an co-sponsored event would learn about The Moorings and their offerings by interacting with an event team(from the moorings) at their tent at the competition. From here the team can establish a relationship with the customer.

The first contact point for an online customer would be advertisements leading to The Moorings website. From here they would learn about the surf charter offered by The Moorings and after starting the booking process they would be assisted by one of the company’s vacation planners. This strategy is easy to implement.

The BVI’s are home to some of the best surf locations in the caribbean. In order to implement the surf charter all that would need to be provided to customers would be surf spot locations and information to non-crewed charters, or a knowledgeable guide for crewed charters.

No additional gear would need to be provided to customers, however The Moorings could offer board rentals for an additional fee.

PARTNERSHIP

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The Experiencer is watching a live stream of the World Surf League Championships. He hears that the grand prize is a Moorings yacht charter in the British Virgin Islands.

The Experiencer gets excited and Googles surf charter. The first result is the surf charter page on the Moorings Website. He reads all the details and knows this is exactly the kind of vacation he and his girlfriend want to go on so he books the trip.

The Experiencer and his girlfriend go on an exciting surf charter with The Moorings and have an absolute blast the entire time.

At the end of the charter he receives a USB drive of epic surfing photos taken of him and his girlfriend by the Moorings crew.

Once home, the Experiencer shares the wicked cool pictures on social media for all his surfer friends to see.

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THE MUSIC Millennials love music and they love not having to pay for it. One very popular music streaming service among millennials is Spotify. Most listeners are between the ages of 18-35. Spotify’s free music service plays advertisements and these ads resonate with listeners.

According to a Spotify and comScore Brand Impact Study in 2014 music streamers are twice as likely to be willing to pay more for brands, 61% more likely to recommend brands to a friend, 70% more likely to describe a brand as fun and playful, and 74% more likely to describe a brand as “the only brand for me”. Youtube is not traditionally thought of as a music service, but millennials are using it more and more for this very purpose. According to a Nielsen study, YouTube reaches more adults aged 18-34 than any cable network. The music is a powerful tool to reach millennials-and should be used by The Moorings. Below is a suggested script for a Spotify or YouTube ad.

Example Web Radio Ad: “Private yachts aren’t just for rap moguls and rock stars. Imagine getting your friends together and experiencing the adventure of a lifetime; yachting through The Caribbean, The South Pacific, or even the Mediterranean! Click this ad and explore the endless possibilities of a Moorings Yacht Charter.”

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The first point of contact of a Striver with The Moorings is a YouTube advertisement. The Striver is intrigued and checks out the website.

He is gutted that he can’t afford a trip right now; he is getting ready to graduate and is looking for his first job.

Two years post-grad The Striver is looking through the latest Men’s Fitness magazine and sees an ad for The Moorings. He remembers his first exposure with Moorings vacations. He realizes that now he actually could afford such a vacation if he and a couple buddies split the cost.

The Striver goes on an unforgettable Moorings vacation. It really is a dream come true for him and was everything he wanted and hoped it would be.

A couple days after returning from his vacation, The Striver writes a 5 star review on the Moorings Website. He gets a 250 dollar credit towards his next Moorings vacation for writing the review. He can’t wait for his next vacation.

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T H E V O YA G E R S

GROWING MARKET SHARE The Moorings Can Engage Customers Before By: • Developing a questionnaire for customers to reveal their personality, style, favorites, expectations • Actively posting on Social Media platforms • Creating a contest via Facebook/Instagram to win an upgrade on their charter, a gift package, etc.

• Initiating a ‘Countdown’ through e-mail/text/etc. to be sent weekly/bi-weekly until the day of their trip

The Moorings Can Engage Customers During By: • Equipping each charter with a GoPro to document their trip • Addressing questionnaires to provide a personalized, complimentary gift (i.e. favorite bottle of wine) • Providing Free Wi-Fi • Encouraging customers to post to social media during their trip • Creating a bucket list/scavenger hunt/other interactive scenario

The Moorings Can Engage Customers After By: • Featuring their photos on social media • Providing a Thank You gift basket • Requesting information regarding the satisfaction/recommendations of their trip through survey, reviews, ratings, etc.

• Developing polls and other activities via social media • Creating a new loyalty program

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C O -C R E AT I N G • Vacation Planner • To assist the client throughout their vacation experience from booking through the end of their voyage.

• Photo Book • Given to guests after their voyage with photos of their experience taken by the crew as a keepsake.

• Photo Sessions on Location • Guests can opt to have professional photos taken by the crew of the yacht when traveling as a keepsake.

L E V E R A G I N G O U R S T R A T E GY • New Surf Charter Vacation Package.

• Differentiation by blue ocean strategy (Marketing to a nearly untouched market) • Low level of market competitors • High caliber of service not offered by competitors • The marketing channels proposed provide new ways to engage using existing marketing efforts

P E R F O R M A NC E M E AS U R E M E NT S • Measure interest by tracking users who view more than, for example, 5 pages per website visit and flag them as qualified leads. (frequently used by other companies) • Social Campaigns and mentions of yacht chartering vacations can be tracked on social media, Google Search. (Frequently used by other companies) • Millennial Satisfaction Surveys given after the end of a trip • Measurement of Market Share within the Millennial market

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PROJECT REFLECTIONS STEPHEN “This semester has been one of the most incredible in class learning experiences that I have ever taken part in. Although I was skeptical of the class project at first, I am glad to say that it has become of the most valuable experiences that I will take away from my college career. I have gained firsthand knowledge of strategic management and I have learned how to work with a real company to help further their strategic goals. If I had to sum up my three major takeaways from this semester I would have to say they came in the form of my team building, maintaining a strategic mindset, and real world application.”

OLIVIA “Strategic Management has given me great insight regarding the importance of crafting and executing strategy. In this course, my peers and I were given a unique opportunity to work with the world’s leading marine leisure business, The Moorings. The Moorings do not just simply provide sailing and yacht chartering vacations, but rather an experience of a lifetime for their customers. In attempt to target the millennial generation, The Moorings have given our class the opportunity to create a well-crafted strategy to reach this demographic. Throughout the project, I have learned valuable concepts, techniques, and tools that have allowed me to grow as both a student and individual.”

MOHAMED “Strategic Management and Decision Making has not been the course that I had expected it to be. Rounding out the semester, I realize that strategy wasn’t what I had assumed it to be. It was what I had already known it to be, but didn’t realize it before taking this course. Much of this semester has been defining behavior and concepts that I’ve already experienced in my life or have witnessed and even read about. Overall, I’ve learned to follow my gut, confirm with research, and that strategy is something that happens consciously. The more conscious of it you are- the better you and your organization will perform. !36

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MAX “This course did a lot to teach me about not only management, but what it’s like to work in a team on a fascinating marketing project and work through problems as a team. I found lots of elements of the project to be fascinating, such as what we were able to learn about a completely new industry in relatively little time. Through looking at the millennial generation, I also think that we gained valuable experience in marketing to ourselves that will be useful in our future careers, especially as marketers.”

DANIEL What I find the most valuable aspect in this course of Strategic Management, in my time learning the principles of crafting and implementing strategy, is the opportunity for experience.

Rarely, if ever, do I ever have the chance to truly devise and craft a sound strategy for a real client, much akin to a consulting case. After all, as the saying goes: “Tell me, I’ll forget. Show me, and I’ll remember. Involve me, and it’ll remain for a lifetime.” During this main project, I’ve noticed how most (if not all) strategies require a strong research focus within the crafting stage; in fact, it seems that when presenting your strategy, you simply re-tell what you find to be relevant information. Another, perhaps more important observation, is the importance of a sense of camaraderie within your group; staying communicated, know what ideas to implement and most of all, schedule carefully so that all can collaborate.

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AC K N OW L E D G E M E NT S We would like to thank The Moorings for giving our team a unique opportunity to showcase what we have learned throughout our education here at USFSP. As a business that caters to their customers’ every need and demand with enthusiasm and grace, we are confident that The Moorings will succeed in reaching out to the millennial generation. It has been a pleasure creating this project, truly awakening our creativity and giving us the drive to succeed.

We would also like to thank Gary Austin, Business Librarian at Nelson Poynter Memorial Library. Gary provided our team with great direction regarding significant industry data and marketing research.

Lastly, we would like to thank Dr. Steve Diasio, our professor who brought passion to strategic management and endlessly inspired our team throughout our "voyage".

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REFERENCES 5 Trends To Know Today About the Millennial Traveler. (2014, November 17). Retrieved February 8, 2015, from http://blog.virtuoso.com/traveler_trends/5-trends-know-today-millennial-traveler/ Beach rush. (2012, March 17). Retrieved February 11, 2015, from http://www.economist.com/node/21550253 Frequently Asked Questions. (2014, January 1). Retrieved February 11, 2015, from http:// www.worldsurfleague.com/pages/faq Generation Y Still Loves Reading Magazines -- And Tweeting About Them. Retrieved February 6, 2015, from http://www.ibtimes.com/generation-y-still-loves-reading-magazines-and-tweeting-about-them-758735 Hearst Magazines Announces Enhanced Focus on Millennial Women with New Group Led by Cosmopolitan Team of Joanna Coles and Donna Kalajian Lagani Reaching Nearly 60 Million Print and Digital Readers.

(2014, September 29). Retrieved February 7, 2015, from http://www.hearst.com/newsroom/hearstmagazines-announces-enhanced-focus-on-millennial-women-with-new-group-led-by-cosmopolitanteam-of-joanna-coles-and-donna-kalajian-lagani-reaching-nearly-60-million-print-and-digital-readers Kador, J. (2014). The millennial mindset. Rep., 38(11), 76.

Kantar Media SRDS. (n.d.). Retrieved February 6, 2015, from http://next.srds.com.ezproxy.lib.usf.edu/nmp/ Zara, C. (n.d.).

Millennials overtake Generation X in vacation spending, says US survey - Tnooz. (2014, June 23). Retrieved February 8, 2015, from http://www.tnooz.com/article/millennials-plan-vacation-2014-says-survey/ The ASP: It's on but who's watching? - Part 2 | Surfpolitik | Swellnet. (2014, August 27). Retrieved February 11, 2015, from http://www.swellnet.com/news/surfpolitik/2014/08/27/asp-its-whos-watching-part-2 Turlow, E. (2014, September 23). Millennials: Staying Fit and Focused. Retrieved February 7, 2015, from http:// the-m-age.com/2014/09/millennials-staying-fit-and-focused/ Valentine, D. B., & Powers, T. L. (2013). Generation Y values and lifestyle segments. The Journal of Consumer Marketing, 30(7), 597-606.

Wagner, G. (2011, July 1). A Socioeconomic and Recreational Profile of Surfers in the United States. Retrieved February 11, 2015, from http://public.surfrider.org/files/surfrider_report_v13.pdf Yao, D. (2014). Millennials in focus: Defining a new generation of media consumers. SNL Kagan Media & Communications Report, , n/a.

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