Bighorn River American
Indian Campgrounds
Ada Iron
Kim Iron
Amy Benson
Vanessa Kukes
Casey Steffans
Mary Alice Walker
Vision Statement
The Bighorn River American Indian
Campgrounds vision is to ensure an authentic
Apsaalooke experience in a heartwarming
customer oriented environment. We will
increase the diversity among Americans by
sharing our culture and our knowledge of Crow
Country. We will share our history through
guided tours in our back country during our
guest’s activities.
Mission Statement
The Bighorn River American Indian
Campgrounds will offer our guests of all ages
the opportunity to expose themselves to an
authentic Native American experience. We
promote family-friendly, safe camping
environment where guests can enjoy outdoor
recreation on the land of our ancestors. The
purpose of our resort is to please and respect
our customers while enjoying the pleasure of
sharing our culture. We value our guests, as
they will come to value us as Native Americans.
Big Horn River American Indian
Campground
• Indian owned business on the Crow
Reservation
• RV owners and camping enthusiasts fast
growing market especially in Montana
• Located on Bighorn River – 1 of the best
fishing destinations in the United States
Location
• Fort Smith,
Montana
• Pre-owned 40
acres of land
Physical Facilities
Tribal and Local Benefits
•
•
•
•
•
Employment Opportunities
Internship Opportunities
Increase Diversity
Benefit Local Ranchers
Promote other Native American
Businesses
• Create Foundation
Development Strategy
Oct’07
Ground
Breaking &
Create Ads
Summer’07
Design
Building
Dec ’07
Mass
advertising
begins
Nov ’07
Media
Secured
Feb ’08
Train Staff
Jan ’08
Construction
complete
Hire Staff
Mar ’08
Grand
Opening
Marketing
Plan
Competitive Strengths
Location
• Fort Smith
• Located on the Crow Reservation (Teepee
Capital of the World)
Market Strengths
• Fishing: most popular physical activity
• 79% of campers consider themselves
family oriented
• 47% of campers preferred an activity
oriented camp ground
• Growth in weekend travelers
Product Strengths
•
•
•
•
•
•
A RV capacity of 40
A Teepee capacity of 10
A lodge
A section for cultural activities and events
Room to expand
Land off 40 acres
Weaknesses
• New Business
• Unbranded Name
• Distance off of I-90
Opportunities
On the way….
• 63% utilize on the way
• 17% are used for the destination
Threats
Competitive Analysis
Competitor
Product
Price
Promotion
Place
7th Ranch
Some
Authentic
Horses
Camping
Low
Horses High
Rack Cards
Billboards
Website
Telephone
Reservations
Bighorn
Mountain
Camping
Low
Rack Cards
Billboards
Website
Telephone
Reservations
Hardin
Camping
Low
Rack Cards
Billboards
Website
Telephone
Reservations
Grandview
Camping
Low
Rack Cards
Billboards
Website
Telephone
Reservations
Opportunities/Threats = Objectives
100 Million Nights spent in private campgrounds
10 (10% of Nights spent in Montana)
= 10 Million Nights spent in Montana
10 Million Nights spent in Montana
4 Equal parts of the State
= 2.5 Million Nights
2.5 Million Nights
50 Campgrounds in Southeastern Montana
= 50 Thousand Nights/year
50 Thousand Nights/Year
213 Nights per summer season
= 234 Nights spent at Bighorn River area
234 Nights spent along the Bighorn River
4 Campgrounds in the Bighorn River area
= 58 RV Customers per Night
Target Audience
• Authentic American Indian culture
• Baby Boomers
• Families with children
Target Audience
Demographics:
• Families with average age of 37
– children under 18
– income > than $50,000 /year
Activities:
• People who enjoy backcountry fishing, camping, guided
fishing trips, hunting, and the general outdoors ,cultural
events
Geographic:
• Billings and surrounding area
• Tourists traveling in and around southern MT and
Northern WY from all over the world
Marketing Mix
Product: Means End Chain
Attributes
Physical
Consequences
Psychological
Consequences
Values
Teepees, river
access, activities,
Bighorn River
being nationally
recognized as one
of the premiere
trout streams in
the United States
for anglers
Authenticity,
tours semiconvenience,
backcountry, and
health.
Cultured,
Experience
unmatched by
Other
campgrounds,
and a relaxing
atmosphere
A once in a
Lifetime
experience and
self- satisfaction
of experiencing
the real thing.
Product: Perceptional Map
High Cost
7th Ranch RV Camp
Black Hills
Campground
Bighorn River American
Indian Campground
Typical
Campground
Hardin KOA
Bighorn Mountain
Campground
Sheridan KOA
Grand View
Campground
Low Cost
Authentic
American
Indian
Experience
Marketing Mix
Price
• One-price Policy
• Discount pricing
• Coupon distribution
Marketing Mix
Place
Strategy:
Direct Distribution Channel
Sales:
Telephone, internet, and walk-in traffic
Marketing Mix
Promotion
• Inform audience
• Persuading our target audience
• Remind the customers
• Publicity
Organization & Management
Ada Iron
General
Manager
Kim Iron
Assistant
Manager
Full – Time
Employee
Full – Time
Employee
(6)Employees
(6)Employees
Financial Plan
FINANCIAL PLAN
• Base Case & Alternative Case
• Construction of Lodge
• Installation of RV Hookups
• Set up of Teepees
FINANCIAL ASSUMPTIONS
•
•
Sales estimates were derived from AIBL team
Sales Assumptions
–
–
Capacity for 10 Teepees, 40 RV spaces
Total Capacity Includes
•
•
•
–
2 people per Teepee = 20 People
2 people per RV = 80 People
= 100 People per night
Base Case
•
•
60% of Capacity in yr 1, increase of 5% thereafter
Higher average
–
–
–
Sale price for packages
Teepee Rental
Initial Costs
Financial Assumptions
– Alternative Case
• 60% of Capacity in yr 1, increase of 10% thereafter
• Lower average
– Sale price for packages
– Teepee Rental
– Initial Costs
– Base case & Alternative Case
• All other estimates remain equal
• Fiscal year Oct 1 to Sept 30
• Start operation March 1 and run through Sept 30
Pro Forma Statements
• Owner’s Draw
• LLC, choose to be taxed as Sole Proprietor
• To pay taxes and for living expenses for Owners
– Base Case
• $350,000 yr 1
• 12% increase yr 2, 10% thereafter
Pro Forma Statements
– Alternative Case
• $150,000 yr 1
• 50% increase yr 2, 14% thereafter
PRO FORMA STATEMENTS
• Base Case
• Initial Costs total $1,430,095
• Alternative Case
• Initial Costs total $1,427,260
PRO FORMA STATEMENTS
• Mixture of debt and equity
• SBA Loan – 60%
• Interest rate @ 10.75%
• Amortized over 25 year period
• AIBL Members – 13%
• Investors – 27%
Financial Analysis
Scenario
Base Case
Alternative Case
Undiscounted
Payback
2yrs, 9.80 months
5yrs, 6.09mths
Discounted
Payback
4yrs, 2.85 months
> 10 years
NPV (WACC)
$1,924,654
$108,376
NPV (RRR)
$785,242
($459,807)
IRR
40%
16%
MIRR
20%
11%
Pro Forma Statements
Profit Margin
Base Case
45%
40%
35%
30%
S1
25%
1
2
3
4
5
Pro Forma Statements
Increase(Decrease) Cash Flow
$800,000
Base Case
$600,000
Dollar Amount $400,000
$200,000
$1
2
3
Year
4
5
Breakeven Analysis - Base Case
Year 1
Year 2
Year 3
Year 4
Year 5
Sales
$2,131,065
$2,308,654
$2,486,243
$2,663,831
$2,841,420
TVC
$1,063,210
$1,075,316
$1,108,779
$1,143,137
$1,178,423
$6,009
$5,948
$6,315
$6,632
$6,908
Our Sales/
Day
$10,005
$10,839
$11,673
$12,506
$13,340
Difference
$3,996
$4,891
$5,358
$5,874
$6,432
Needed to
Breakeven/
Day
Exit Strategy
• Exit Strategy
– Sell to existing competitor
– Sell to local Farmer
– Turn into Farmland for our Ranch
Questions?