Project Yachts for Millennials Final Booklet

MOORmillennials

Patrick Alkire, Kayla Delgado, Jen Johnson, Eloy Martinez, Lyndsey Shaw

Table of Contents: - Competitors - industry data - SWOT -Tr e n d s i n m i l l e n n i a l Demographics - Opportunities - Best Practices - Marketing and Communications - Print Advertisements - Broadcast Advertising -Tr e n d s i n m i l l e n n i a l demographics - Target customer - Target interests - Social Media

- Fives Forces - Personas - First timer - Luxury Seeker - The Adventure seeker - Strategy - Current outlets - Possible Outlets - Reflective Wrtiing logs - Lyndsey SHaw - Kayle Delgado - Eloy martinez - Jennifer Johnson - Patrick Alkire - Example of Advertisement - Journey Map - Works cited

Competitors 1. Nielson 2. Sunsail - Caribbean; Mediterranean 3. OCC 4. Sailing Holidays 5. Kiriacoulis 6. Pitter Yachting 7. Athenian Yachts 8. DreamYacht Charter 9. Navigare 10. The Moorings – Caribbean; Mediterranean 12. Marine Max - Caribbean 13.Voyage 14. Barefoot 15. Conch 16. TMM 17. Catamaran Company 18.Horizon Yacht Charter 19. BVI Yacht Charter Industry Data Bareboat charters booked out of the North American market were up 15% over 2012 to 21,495 weeks, with strong gains for popular sailing destinations in the Caribbean and overseas.

The Virgin Islands and Puerto Rico hit a record high in market share with 70%, representing 12,301 weeks.

2869 More Charter Weeks Booked Out of North American Source Market

All seasons see increased business, but winter is the big winner up 23% Estimated Value of Bareboat Charter Fees for 2013 Up 30% Sailboat imports into North America saw a significant increase last year, up 55% for boats over 20 feet in length compared to 2012.

Domestic production of sailboats over 20’ also grew, up 7% versus the previous year.

Multihulls comprised 38% of imported sailboats and 20% of all sailboats built in North America.

Small sailboats under 20’ were the only category which was off, losing 16% in terms of units produced in the US. (Library Administration, 2005)

SWOT S W

Number 1 in the industry

Social Media Video Campaigns (GoPro)

Financial Backing From TUI

Website Upgrade

Large Customer Base

Partnerships with aquatics companies

Lack of dynamic marketing strategy Limited Social Media Presence

New Entrants (More competition) Lower industry prices Lack of presence within the millennial generation

O T

Trends in millennial demographics Clean eating Top 10 trends in travel http://www.hospitalitynet.org/file/ 152005087.pdf Now, Instantaneity, and Flexibility of Service Booking online, using mobile boarding passes, check-in online, use of apps for easy travel arrangements.

Real Time Information Peer Review Sponsorship through a twitter/IG blogger with a great following Online and Offline Different Booking Structure Millennials as Business Travelers Required Essentials and Wanted Amenities Authentic Local Experiences Non touristy feel, secret local spots Volunteer Travel/Social Responsibility Pod Hotels

Opportunities Increase Social media following Build a following in YouTube by creating a page specifically for Moorings of Clearwater.

Moorings App

Increase online bookings Best Practices Excellent reputation Range of destinations Custom and innovative yachts that meet clients needs/comfort In tune with technology needs of customers Great customer service

Marketing and Communications •

Online - Website, Social media, everything in regards to the charter should have the ability to be handled online; this is the preferred method of communication for millennials, as they were born into an era in which digitally provided services are commonplace. They expect speed, convenience, flexibility and power of digitally provided services and resources.

•

Advertising – Broadcast, Print and Outdoor – target the shows and magazines viewed by the affluent millennial demographic

•

PR – Pitch lifestyle articles to newspaper & magazines, morning shows, etc. Keep up to date with industry news, place ‘experts’ in stories whenever possible

Print Advertising Studies indicate that target, professional Millennials remain active in keeping up to date on print media outlets relevant to their particular industry.

• Prominent Magazines (Read Weekly) • WSJ Magazine (Complimentary with the Journal’s Weekend Edition) • The Economist • Barron’s • Investor’s Business Daily

• Bloomberg TV • Financial industry’s premier daily market data analysis and reporting service.

• High profile interviews with top industry professionals.

• MSNBC • Daily economic and financial reporting.

Trends in millennial demographics

• Financial Times

According to the Journal of Behavioral Studies in Business Gen Y cares all about the experience. Honesty, humor, uniqueness, and information appear to be important.

Encourage them to explore new paths or options, they crave challenge.

• New York Times

• Clean Eating/Health

• Bloomberg BusinessWeek

• Now, Instantaneity, and Flexibility of Service

• Barron’s

• Real Time Information

• Prominent Newspapers (Read daily) • Wall Street Journal

Broadcast Advertising

• Peer Review

• CNBC

• Different Booking Structure

• Daily economic and market reporting, including daily high profile interviews with top industry professionals.

• Fox Business News • Daily financial market analysis and reporting.

• Required essentials and wanted amenities • Authentic local experiences

Target Interests • Social Media • High Involvement • Connecting with Friends and Co-Workers • Networking – Meeting new people • Other industry professionals

Target Customer • Millennial Generation (Ages 25–35) • Target Profile – Customer • Target Age Range • Aged 28 to 35 years old • Target Income Level (Net – After Taxes) • $80,000 – $100,000 • Career

• Industry Conferences and Social Gatherings • Partying • Clubs and Bars • Golfing and Exercising • The accumulation of wealth • Spending time with individuals of similar wealth statuses • Unique experiences • Studies have shown that millennials are more likely to pay for unique experiences.

• Financial Services

• Adventures – Long vacations with friends and loved ones

• Banking Industry

Attitudes – Internationally & Locally

• Insurance Industry

• Northeast has more sailboats and a variety of classic and antique watercraft that participate in old-time yacht clubs and cruising clubs

• Entrepreneurs • Personal Business Owners • Technology Industry

• Southern Florida is known for larger, expensive motor yachts and sport fishing boats.

Millennial Focused Mission & Vision The Moorings will gain an understanding of the unique needs of millennials, develop effective communication, and deliver an exclusive, exceptional experience, from first ad to final dock - and everything in between.

The Moorings strives to serve as the premier luxury aquatic experience provider to affluent millennials, crafting unique adventures that cater to their thirst for exclusivity, while continually building lasting client relationships and providing service that is second to none.

Five Forces Threat of Entry - low - Entry barriers are high Buyer Power – low - Buyers are price sensitive Rivalry – high - Large amount of competitors - Few differentiation Threats of Substitutes – high - Available and attractively priced. - Comparable/Better performance features Supplier Power – high - Long term relationship with main supplier Threats of Substitutes—> “Millennials are less loyal towards travel brands than nonmillennials and more willing to switch to another airline or hotel brand if they believe that loyalty program has a better product or global alliance network or is willing to match their elite status “(HVS Global Hospitality Report 2014) Rivalry—> “Everyone is looking to get the most out of their budget, Many people are looking to have as many inclusions as possible in their vacation, which is why all-inclusive resorts are popular with the younger generation. I look for resorts that have at least a free daily breakfast, free Wi-Fi and if possible free round-trip transfers to and from the hotel and airport.” (Travel Agent 2013)

Personas The First Timer “Jack” 32 year old, male

several girls; he spends many nights taking in the local social scene and is always open to new opportunities for fun. He is active on social media and enjoys sharing (and bragging) about his experiences to his friends.

Living in West Palm Beach, Jack enjoys time spent on the water – usually on water sport toys such as kayaks and jet skis; he also goes boating with friends. He doesn’t own a boat because he’s not interested in the upkeep.

Occupation: Entrepreneur, owns a technology company

Web habits: Wired, Facebook, Instagram, Fox News, Huffington Post, Netflix, Spotify, Buzzfeed, New York Times

Income: $150,000/yr

Favorite vacations: NYC, Bahamas (cruise), Greece, and Alaska

Marital Status: single Location: West Palm Beach, FL Motivations: independence, financial success, environmental responsibility, having more fun than everyone else Quote: “Work hard, play harder!”

Role model: Richard Branson Jack schedule is very flexible, he generally works around 60 hours a week during peak times and as little as 10 hours a week when business is slow. He is someone who works very hard but really enjoys his down time. Jack is casually dating

First Timer

Personas The Luxury Seeker - Jill is 30 years old and has a taste for the finer things in life. Being a marketing professional for a major company she can definitely afford to indulge a bit.

Luxury Seeker

Personas

The Adventure Seeker - Keith has spent most of his life traveling the world with his family.

He is a personal trainer and loves photography. Not just Instagram photos though.

(Assuming you have more info on luxury seeker and adventure seeker from Jen & Patrick when they first made them, all I have is what was included in the presentation.)

Adventure Seeker

The Moorings – Strategy According to a recent Advertising Age article, contrary to popular belief, millennials are willing to make phone calls and have personal connections when it comes to purchasing. “Millennials are the most likely of any age group to make a research-and-purchase decision the old-fashioned way -- by talking to someone. They are most likely to call a business from a digital advertisement.” (Advertising Age) “A global study by SDL found that 58 percent of millennials expect to engage with a company whenever they choose and via whichever channel they elect. This means that while these consumers move effortlessly between on and offline touch points, they expect a consistent experience from brands.” (Forbes) “98% of 18- to 34-year-olds reported using their smartphone on a daily basis to consume video content— 42% higher than on computers, and 17% higher than on TVs. 62% of smartphone purchasers indicated that YouTube influenced their purchase with how-to videos and reviews.” (Fullscreen/YouTubeInsights report supplied by Google) Based on these findings, we recommend developing high quality digital ads in places where the desired target segment of the millennial population will see

them, thus elevating both engagement and sales.

Additionally, the web and mobile presence of The Moorings needs to match the user experience they deliver via phone and in-person to ensure the customer experience is the same no matter which outlet they choose to communicate. The Moorings should have a unified voice across all mediums - including website, social media (particularly Facebook, Instagram and Twitter), advertising and customer relations.

Current Outlets While effective for their current/baby boomer target, the outlets in the current list of publications supplied

by The Moorings are mostly leisure driven, and are largely not where millennials are spending their time.

Condé Nast Traveler GQ Travel + Leisure Robb Report Ski Magazine Coastal Living Food & Wine

Possible Outlets According to our research, these outlets have substantial reach within the millennial demographic. The percentages account for the % of unique visitors to the sites in October 2014 that fall into the millennial demographic.

NY Times (32%) The New Yorker (36%) GQ (39%) Esquire (38%) Vogue (43%) YouTube (47% - which is more than any cable network) Spotify Pandora (#2 downloaded iPhone app of all time) Hulu (82% of users are 18-49) Elite Daily (59%) Buzzfeed (50%) Huffington Post

Reflective Writing Log – Lyndsey I really feel like we honed in a on a lot of strategic decision making skills that will be applicable as everyone begins their careers. Each step of the project provided us with an opportunity to understand and apply various techniques for making sound business decisions.

During the research and analysis phase we were tasked with gaining a broad understanding of the sailing charter environment, including competition, the industry as whole, demographic trends, best practices, as well as consumer and employee information. This is an extremely important part of any project, because you cannot make good business decisions without a complete understanding of what is going on in the environment around you. We also utilized the fiveforces model to generate a formal analysis of the competitive environment.

In the next phase of the project we dug deeper to develop a SWOT analysis, as well as create a mission statement, vision statement and our initial millennial strategy. I feel as though these are extremely important exercises for any business to go through on a regular basis. The SWOT analysis defines strengths, weaknesses, opportunities and threats facing the organization. Since we are all living in an ever-changing competitive environment, these are metrics we should

have our eyes on at all times. The mission and vision statements are equally important, as they give the organization direction. They should be forward thinking, and reflect the ultimate goals of the organization. When looking into new markets/products/ strategies, they should serve as a guide – are the decisions you are making in keeping with the mission and vision set forth?

Next we explored competitive advantage identification and analysis. This involved identifying the organization’s biggest strengths, which cannot be easily copied or duplicated, which set you apart from everyone else. Without a sustainable competitive advantage, you are always at risk for losing revenue or your place in the market.

Last, we designed personas and mock journey maps for our desired target market. This enabled us to gain an understanding of who we are trying to communicate with, and develop effective messages and ad placement to ensure our message was received. We were also able to identify additional consumer touch points based on the steps the consumers were going through. This allowed us to develop an overall strategy for communicating with our target, and ultimately assist in solving a real-world business problem.

Reflective Writing Log - Kayla For this final Writing Log, I’m going to sum up what I learned from this class. The book, Management by Hitt, Black, and Porter, definitely taught me a lot about strategic skills to management, and the individual classes applied that using fun examples. I found the different ways a company could sustain a competitive advantage to be the most interesting thing I learned. The book explains that a company is sustainable if the elements of strategy give buyers a lasting reason to prefer a company’s good or service. Companies can also choose to outcompete rivals on the basis of differentiating features, like higher quality. One great example that comes to mind is Tiffany and its luxurious and prestigious jewelry. When people hear that name, they associate it with high quality merchandise, great customerservice, and reliability. This unique combination of qualities meets customer needs more effectively than rivals, which therefore, drives up their customers’ willingness to pay higher prices. The business strategy is also concerned with building competitive advantage in a single business. The business strategy has to maintain this competitive strategy, as well as improve it. The book then adds on to this and talks about combining the company’s strategy with the objectives and strategic vision. The strategic vision portrays a company’s aspirations for its future. This is very different from a company’s mission, which describes its purpose and its present business. I think of it as someone who is farsighted. When a company has no vision, they are only looking at the short-term, or the here and now. However, a company has to also think about the threat of a new entry, which can be little to great. It depends on the expected reaction of incumbent firms to new entry and barriers to entry. Some companies in a certain industry are ready with defensive

maneuvers that can ward off new entrants. The VRIN tests for sustainable competitive advantage can help a company figure out what resources are valuable for defending. The letters stand for valuable, rare, inimitable, and nonsubstitutable. If a resource or capability is valuable, it will make a company a more effective competitor that is able to ward off or fight new competitors. It must also be directly related to the company’s strategy, and have the ability to strengthen its business model. As a general rule, strategic offensives should be based off of the company’s strongest competitive assets and strengths. Something very important to target is the rival company’s weaknesses, such as buyer segments that they are being neglected or companies with low customer service capabilities. Creating a strategy that does not tie in with the company’s biggest strengths and their rival’s weaknesses are sure to fail. A strategy can simply be for a company to decide to enter foreign markets.

They may want to do this to gain access to new customers, which is only one reason why it is smart to do. Expanding in other areas with increase revenues, profits, and long-term growth and it could possibly lead to more opportunities. The amount of people you can reach in the company’s home country is very limited. Another reason to expand in other countries is because you can achieve lower costs through economies of scale, experience, and increased purchasing power. Economies of scale are when a company makes a certain amount of goods and it makes the costs of producing additional amounts of that good less. However, a company must also make sure that they have the five components of a corporate social responsibility strategy too. These help earn the trust and respect of the stakeholders and essentially shows customers or clients that the company really cares about something other than money. Overall, there is a lot to think about for company.

Relective Writing log - Eloy Martinez This semester I have learned a lot about strategy and creating a marketing plan that can be targeted to specific market segments. I was able to relate everything that I learned in this class to the company I work for, Kobie Marketing, and for my own company, Keno Marketing.

During this semester I was able to apply things from class to my business. I learned that I needed to have a competitive advantage, not just one but multiple that would keep me ahead of my competition. I have thought of ways to make my company stand out from all the other marketing firms in St. Pete. I am branding my company as a boutique marketing firm that creates completely custom branding and identities. I created my business model canvas to map out how my business would work and created strategic partnerships to ensure my business’ success. I wrote in a past paper that creating a business and strategic plan is like playing a game of chess. You need to calculate your moves well ahead of time in order to keep ahead of your competition and ahead of the social demand.

While creating my business plan I have put a lot of thought into creating an offensive approach to generate a client list that will in some cases take clients away from competitors and has also taken into account that I need to keep my clients as well.

My retention plan for keeping my clients is my defensive approach.

My next thoughts were about diversification. I wanted to create a diverse offering in a very saturated market. Where

everyone can offer the same thing, I need to find a way to offer the same products in a different way. I am not selling my products, I am selling why I do something for a company.

My partners and I met and decided that we need to create a product that pushes the boundaries of innovation and imagination. The most important thing I had to think about was my team and strategically choosing them in order to ensure my success. I chose the best photographers I know of my generation. The best designers in USFSP and the best sales and development person I know. I partnered with people that have experience and people that want to be the best in their industry.

My team and I are trying to stay miles ahead of our competition and are trying to keep our lead, we are also trying to make our company known as the best in St. Pete, for now, in the future I want to be the best in Florida. I am starting in two locations and am creating something that will take over those locations very quickly.

Writing Log - Jennifer Johnson This semester in GEB 4890 with Dr. Diasio, I have gained an abundance amount of knowledge in various topics concerning strategies in a business environment. There were topics covered in the text, lecture, and projects that have been drilled in my head that I know I will be using in the future.

We were introduced to identifying a company’s strategy in our first week of class, McDonalds being a prime example of this chapter as they used the “Plan-to-win” strategy. McDonalds main focus was being “better” not being “bigger” that their competitors, showing us the five strategies in doing so by minimizing costs and providing the utmost best customer service around. Another chapter that stood out during this semester was chapter four, which was Evaluating A Company’s Resources, Capabilities, and Competitiveness giving an overview of tools to use in an internal and external situation. Disney World was mentioned to be the best company out there as far as showing how they use capabilities in the work place, During class we also broke out into our groups to work on our class projects. I believe it was the second week of class when we worked with our groups on our first exercise together which was to come up with a symbol and describe it as an analogy. That exercise broke the ice for the entire class, going around introducing ourselves and describing what our symbols meant. This was just one of the several activities done in class, Dr. Diasio also got the entire class on their feet on some physical activities that taught us how paying attention and eye contact is important in not only the classroom but the workplace. Also other exercises in class taught us the importance of focusing and staying attentive towards our

peers’ presentations, showing respect towards our classmate’s hard work.

Lastly, throughout this semester we worked with The Moorings, our goal with The Moorings was to help them to come up with strategies to attract the millennial market in purchasing the services they offer. Working on this project has taught me patience; working with a group of four other students whom all have different opinions have taught me to improve my communication skills among the group and most importantly be patient with others when there are disagreements on certain topics.

I have never too keen on public speaking, but this class has definitely helped me improve on that. Over the semester we had several times where we got in front of the class and presented our work, I think that was a great way to help me improve especially for the final presentation to our clients. Dr. Diasio always gave us great feedback on certain tasks we needed to improve on as far as our project goes as well as how to improve our presentations especially for the final presentation for The Moorings.

Overall, this class was a great class to wrap up my college experience. I’ve learned different techniques on how to approach different strategies to solve certain problems. Also I have learned how to respectfully give my full attention for those giving their time to present anything to me, as I would want that full attention back when it is my time. I have learned how to work patiently in a group setting; working with different people brings in different styles of work and opinions. I have learned how to prepare myself when it comes to presentations. Lastly, I have learned how to do research on companies, and getting down to the nitty gritty on a companies profile to match them to their markets likes and dislikes.

Writing Log - Patrick Alkire This writing log will reflect on the primary lessons I learned and experiences I had this semester while in Mr. Diasio’s Strategic Management course. One of the richest men in world, Azim Premji, once said that, “One must have strategies to execute dreams.” The quote from Mr. Premji accurately describes the lessons that I learned and overall experiences I had throughout this semester during Professor Steve Diasio’s Strategic Management course. Strategies are essential to our lives, society and the world we live in as a whole. In order for individuals and companies alike to grow and succeed in achieving their dreams, sound strategies must be developed and implemented before real development can occur. Without successful strategies, goals are simply dreams that will not come to fruition. Throughout this semester, the primary focus of the course was on strategy in order to create a strategic edge for success. The practical real world experience we had the opportunity to participate in with the Moorings was priceless in learning how to market to the millennial generation. On a similar note, learning to develop successful strategies and work as a team throughout the semester in order to accomplish our task of marketing the Moorings to the millennial generation allowed me to grow as an individual.

Throughout the semester, we learned about and focused on many key aspects involved in strategically managing firms, businesses and ourselves. Some of these lessons included ethical business practices, evaluating a company’s internal and external environments, and most importantly the importance of strategy to name a few. Perhaps the most importance of these

lessons that I learned was the importance of creating, developing, and implementing a successful and sound strategy in a consulting capacity for a business or an individual.

Dreams and goals often go hand-in-hand when discussed among those seeking to succeed in life. However much the two are similar, they also have their distinct differences.

Throughout this semester, I learned that dreams are simply wishes that each of us have that lack a plan for action in order to achieve. On the other hand, goals are concrete, writtendown and detailed dreams, but include a plan or plans of action in order to achieve them. When I look back on this semester in Strategic Management, I see a multitude of experiences that are quite difficult to describe with just words. However, the experiences and lessons I learned throughout the semester equipped me with the tools necessary in order to have a successful career, and more importantly, a fruitful and prosperous life in the financial industry.

Overall, I am extremely grateful for the time and effort Mr. Diasio gave to each of us during the semester in every lesson.

The experiences and lessons that I learned from Mr. Diasio this semester were priceless in equipping me with the necessary tools in order to succeed after graduation and when I begin my career in financial services.

SURVEY RESULTS 1. Have you ever heard of a yacht charter vacation? Yes = 57%; No = 43% 2. Which type of climate area is your favorite in which to vacation? Warmer Climate = 74.07%; Colder Climate = 25.93% 3. On average, how often do you travel for vacation each year? 0 to 3 = 66.67%; 4 to 7 = 22.22%; 7 or more = 11.11% 4. Did you know that yacht charter vacations are affordable for the average Millennial? Yes = 26.92%; No = 61.54%; You’re Crazy = 11.54% 5. Would you consider a private yacht chartering vacation in the future? Yes = 65.38%; Maybe = 23.08%; No = 11.54% 6. How would you describe your general consensus toward yacht-charting vacations? Positive = 67%; Negative = 33% 7. Where do you primarily vacation? North America = 38.46%; Caribbean Islands = 26.92%; Europe = 15.38%; South America = 11.54%; Asia = 7.69% 8. Have you ever heard of the Moorings, a private yacht charter company? Yes = 36%; No = 64% Sample size = 47 people (ages 18 to 32)

Example of Advertisement

Typical journey map

Works Cited Smith, M. (1993). Taking care of boaters from stem to stern. American Agent & Broker, 65(3), 24. Retrieved from http:// search.proquest.com/docview/194946555?accountid=14745 YachtWorld.com; YachtWorld launches global charter portal. (2009). Marketing Business Weekly, Retrieved from http:// search.proquest.com/docview/203239377?accountid=14745 Yachtworld launches global charter portal. (2009). PR Newswire Europe Including UK Disclose, Retrieved from http:// search.proquest.com/docview/365994416?accountid=14745 The State Of The Sailing Industry: 2014 Sailing Market Study. (2014, February 18). Retrieved from http:// www.cruisingworld.com/state-sailing-industry-2014-sailing-market-study “Reinventing Library Buildings and Services for the Millennial Generation�. Library Administration & Management, Vol. 19, No. 4.

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