online wedding planning
DESCRIPTION
wedding business planTRANSCRIPT
Online Wedding Planning
A Business Plan presented to Dr. Kenneth I. Goldberg of National University
In partial fulfillment of the requirements for the degree of
Master of Business Administration
ByFederico A. Garcia, III
June 15, 2002
Topics for presentation
Purpose of the business planDescription of the BusinessIndustryMarket ResearchMarketing PlanDesign and Development
Topics for Presentation
Operations PlanCritical RisksFinancial AnalysisConclusions and Recommendations
Purpose of the Business Plan
Own experience in planning a weddingEvaluate viability of an online wedding planning businessAdd value to MBA program
Description of the Business
Wedding research for plannersOnline booking system for vendorsAbility to view reception sitesWedding planning toolsBusiness model
Business Model
$40/mo = $480/yr for contact information$125/mo = $1500/yr for IPIX technology and access to booking system.
Industry Analysis
Wedding Industry + Information Retrieval Systems or Online Content Providers IndustryWedding Industry - $70 BillionOnline Content Providers Industry averages -$432,000/yr.
Dominant Economic Characteristics
Market Size
Number of Companies in the industryCustomersProfitability
$70B for wedding industryVery few large companies
2.4 million marriagesFor wedding industry it looks great, future prospects uncertain for dot.coms
Market Research
Website viewers24,000 marriages in San Diego
Half use Internet to plan weddingOver 1300 Wedding related businesses in San Diego
CompetitionTheKnot.com, WeddingChannel.com, ModernBride.com, WeddingNetwork.com
SITES % Of Respondents Visiting
WeddingChannel.com 37%
TheKnot.com 35%
ModernBride.com 34%
WeddingNetwork.com 23%
Other Competition
Local CompetitionSanDiegoWeddings.com, marrymeinsandiego.com, weddingconnections.com
Substitute ProductsWedding coordinators and consultants
Competitive Advantages
Search capabilityViewing reception locationsOnline scheduling system for vendors
Marketing Plan
Brand-name awarenessSearch engines
Build membershipElectronic announcementsUse of applications (calendar, checklist, guest-list manager)
Establish Strategic relationshipsAdvertising
Design and Development
TasksWebsite developmentDomain registrationWeb hosting servicesHiring
Proprietary issues with IPIX
Operations
Location – OceansideStrategy and plans
Organization BuildingTechnology InfrastructureMarketingDevelopment of Site
Critical Risks
Business ModelTechnology Issues
Proprietary TechnologyLack of Exclusivity
Online Booking systemStrong brand loyalty to competitors
Financials
Funds Required - $440,000Development CostsOperating Expenses
Year 1 Year 2 Year 3 Year 4
Revenue 234,000 320,000 800,000 1,600,000
Year 1 Year 2 Year 3 Year 4
Net profit -237,580 -178,547 8,106 359,342
Year 1 Year 2 Year 3 Year 4
Equity capital needed 440,000 50,000 0 0
Borrowing anticipated 0 25,000 50,000 -5,000
Year 1 Year 2 Year 3 Year 4
Total debt 2,268 28,102 57,756 10,511
Total equity 202,420 73,873 81,979 441,321
Conclusion
It is viable but riskySuccess depends on successful penetration of local market and expansion into other marketsRecommending do not pursue the venture.