Team Shrimp Boat
Team Shrimp Boat
Delcambre Project
Phase 1
Bishwa Adhikari
Dustin Baudin
Megan Galloway
Shane Landers
Due Date: April 1, 2009
Page 1 of 28
Team Shrimp Boat
Executive Summary
The purpose of this report is to analyze the market opportunities for the retail industry in
Delcambre, Louisiana. With this analysis, we are able to identify business opportunities in
Delcambre and the surrounding area. Gathering detailed information on the current economic,
political, legal, and technological sectors established the market in which we wanted to target.
Gathering this information and data also explained and demonstrated the business sustainability
of the market in Delcambre. We were also able to analyze the long-term investment
opportunities with the information gathered.
The key results in our findings indicate that certain business ventures that will be more
successful, in terms of economic stability, population stimulation, and sustainable future growth.
The findings indicate that Delcambre has a small population with the potential to grow. With a
small population, business leaders need to adapt and realize that the market needs to be created
from within the Town of Delcambre. If the town leaders can demonstrate this, then it will prove
to the community how committed they are to the revitalization efforts in the town.
The findings also indicate that the community members that have stayed in Delcambre
after the storms are very motivated to rebuild their homes and the community. Based on
observations in the town, it was quite noticeable and apparent that new houses and some
revitalization has occurred. This should demonstrate to investors that there is motivation by the
community to refurbish their battered town. The people that live in Delcambre are very proud to
live there. It is possible and highly recommended that the Town of Delcambre rebuild,
reestablish, and stimulate interest in the town in order to grow, both in population and in
commercial investments.
Page 2 of 28
Team Shrimp Boat
Through the segmentation process, we have developed four main aspects that we feel will
contribute to the growth, in terms of economic stimulation and population growth. The four
markets that we feel will be most beneficial in the retail industry are as follows: a seafood
restaurant that boasts Cajun seafood and unique flair, a local grocery store that meets the basic
food needs of the community, a historic, cultural museum that invites tourism and promotes
pride throughout Delcambre, and a kayak/canoeing retail store that also invites tourism and
promotes economic stability, physical exercise, and outdoor entertainment for both community
members and people living outside of Delcambre. We feel that these are some of the best
options to use when revitalizing the town. The grocery store is a necessity, and we highly
recommended a restaurant. As for the museum and kayak/canoe retail store, we believe that
these ventures should be established after the basic needs of the people are met.
Page 3 of 28
Team Shrimp Boat
Delcambre Group Project
GROUP:
Shrimp Boat
CLASS:
Marketing 524
SEMESTER: Spring 2009
MEMBERS: Bishwa Adhikari
Dustin Baudin
Megan Galloway
Shane Landers
Phase I – External Analysis
I.
Product Definition/Classification
Our product classification is retail development within the Delcambre city limits and
surrounding areas. Our focus is on retail establishments in both the food industry and
the tourism industry—specifically our focus is on a seafood restaurant, grocery store,
museum, and a kayak/canoe rental and retail operation. The kayak/canoe operation
would make better use of the natural resources such as Lake Peigneur.
II.
Macro-Environmental Analysis
A. Population and Geographic Area
The Town of Delcambre was first settled by Acadians who migrated from Nova
Scotia in the mid – 18th century. Delcambre is located within Iberia and
Vermilion parishes in Louisiana, and it lies twelve miles east of Abbeville on
Louisiana Highway 14. Delcambre is in the Cajun Heart Land of Acadiana (1).





Latitude
Longitude
Land area
Elevation
Population density
29.95 N
91.99 W
0. 83 Square miles
6 Feet
2615 People per square mile (Average)
Delcambre is a small, close-knit town well known in Louisiana for its natural
resources and the shrimp industry. This small town possesses a vast amount of
possibility for new retail ventures. Growth in the retail industry will help
Delcambre’s population grow and attract tourists. This growth will raise town
and parish annual revenues, which will impact the economic growth and stability
of the community. For an economic stimulation to take place, it is essential to
Page 4 of 28
Team Shrimp Boat
attract and retain a stable, growing population that supports and makes use of the
retail ventures that we recommend.
Why is population growth necessary?
In order for the marketing plan to be successful, an increase in the population size
of the town would be beneficial. Population growth allows for more business
opportunities in the area. Below are some reasons why we believe population
growth is necessary in Delcambre.










To make better use its natural and water resources.
To achieve cost efficiency
o Example: If seafood is produced at maximum efficiency, it will reduce
production costs per unit and make products more competitive in the
Louisiana and macro-environmental market.
To increase attractiveness of the community
To increase local demand, therefore creating a stronger, more stable economy
To meet employment demands
To extend the marketability of community
To achieve economies of scale.
To create and expand retail development.
To increase the purchasing power of local people.
To make long term strategy for tourism development, in terms of retail
development.
1. Size of population (2)
Population in July 2007:


2171
Males
Females
1057
1114
Population in 2000
Population change since 2000:
Median resident age
2. Growth rate from 2000-2007 (2)
48.7% of population
51.3% of population
2168
+ 0.8%
32.6 Years
+0.8%
Due to the recent hurricanes, the population growth has minimized, and even
decreased after the hurricanes. 90% of the town was flooded after Hurricane Rita
(Scott Saunier, in class 3/11/09). Now, however, a small amount of growth and
rebuilding has been seen (13).
3. Age distribution (1)
27.7%
under the age of 18
Page 5 of 28
Team Shrimp Boat
10.9%
aged 18 to 24
27.4%
aged 25 to 44
21.44%
aged 45 to 64
12.6 %
65 years of age or older
The median age was 33 years.
4. Ethnic mix (in percentages) (1)





White, Non-Hispanic
Black
Hispanic
American Indian
Two or more races
81.4
14.4
1.9
1.2
1.2
Ancestries





French
United States
French Canadian
German
Irish
19.8
17.2
13.2
3.9
2.8
For population 15 years and over





Never married
Now married
Separated
Widowed
Divorced
27.2
50.5
2.2
8.3
11.2
5. Education Level (1)
For population 25 years and over in Delcambre (in percentages)



High School and or higher
Bachelor’s degree or higher
Graduate or professional degree
Mean travel time to work
Unemployment
64.9
10.1
1.8
25.3 minutes
7.4%
6. Household patterns
Page 6 of 28
Team Shrimp Boat
According to the United States Census Bureau (census of 2000) there were 2168
people, 826 households and 593 families residing in the town. There were 903
housing units at an average density of 1087.5/ sq mi (4).
826 households total (4)
Types of households in
Delcambre
Percentage of Households in
Delcambre
Children under the age of 18
living in house
35.6%
Married couples living
together
51%
Female householder with no
husband present
16.3%
Non-families
28.1%
Someone living alone who was
65 years of age or older
12.2%
The average household size was 2.62 and the average family size was 3.10 (4).
The median income for a household in the town was $27,500 and the median
income for a family was $34,643 (4).
Delcambre compared to Louisiana state average (1):






Median household income below state average.
Median house value below state average.
Hispanic race population percentage below state average.
Foreign-born population percentage significantly below state average.
Number of college students below state average.
Percentage of population with a bachelor's degree or higher significantly
below state average.
Nearest cities (1):
 Nearest city with population 50, 000+ Lafayette, LA 18.4 miles,
population 110,257
 Nearest city with population 200,000+ Baton Rouge, LA 68.1 miles,
population 227, 818
Page 7 of 28
Team Shrimp Boat

Nearest city with population 1,000,000+ Houston, TX 233.6 miles,
population 1,953,631
Louisiana-Nearest cities (1):









Erath
Abbeville
Youngsville
New Iberia
Broussard
Maurice
Lydia
St. Martinville
Lafayette
3.3 miles
9.8 miles
10.4 miles
12.3 miles
13.4 miles
14.3 miles
14.4 miles
16.3miles
18.4 miles
Hospitals/medical centers near Delcambre (1):



Abbeville General Hospital
Vermilion Rehabilitation Hospital
Dauterine Hospital
15 miles (Abbeville)
15 miles (Abbeville)
16 miles (New Iberia)
Colleges/universities with over 2000 students nearest to Delcambre (1):







University of Louisiana at Lafayette
o Lafayette, LA
o Full-time enrollment:
Louisiana State University
o Baton Rouge, LA
o Full-time enrollment:
Southern University
o Baton Rouge, LA
o Full-time enrollment:
Nicholls State University
o Thibodeaux, LA
o Full-time enrollment:
McNeese State University
o Lake Charles, LA
o
Full-time enrollment:
Southeastern University
o Hammond, LA
o Full-time enrollment:
Tulane University
o
New Orleans, LA
o Full-time enrollment:
Page 8 of 28
17 miles
13,673
64 miles
28,696
68 miles
8,399
82 miles
6,244
95 miles
6,460
112 miles
12,549
130 miles
10,230
Team Shrimp Boat
Airports certified for carrier operations nearest to Delcambre (1):



Acadiana Airport
o New Iberia, LA
Lafayette Regional Airport
o Lafayette, LA
Baton Rouge Metropolitan
o Baton Rouge, LA
10 miles
18 miles
71 miles
7. Regional Characteristics
The Delcambre area is known for the Cajun culture and cuisine. The area focuses
on the seafood industry, in particular the shrimp industry. The shrimp industry
has been an economic factor in the community in years. However, it has been
losing its economic value in the town because of the globalization of seafood and
the accessibility of seafood from China and other Asian countries. The
Delcambre seafood industry is not as productive as it was in the past, and it
certainly diminished even more after Hurricanes Katrina and Rita hit. We believe
that in order to benefit the community, Delcambre should emphasize their unique
characteristics.
8. Movement
There are people coming in to the area from other parts of the United States for
tourism as well as business and other personal reasons. Movements out of the
area in recent years are due largely to the impacts of the hurricanes.
Hurricanes
 Audrey
 Lili
 Katrina
 Rita
 Gustav
 Ike
June 1957
October 2002
August 2005
September 2005
September 2008
September 2008
Impact of hurricanes
Hurricanes have had a negative impact on life in Delcambre. In particularly,
Hurricane Rita devastated the Delcambre area and the entire region of south
Louisiana. The hurricane has negatively impacted the growth rate, in terms of
population, industry, and retail ventures.
Due to the threats of hurricanes, the population has decreased. About 600 people
abandoned Delcambre after Rita, bringing the town’s population down from 2300
Page 9 of 28
Team Shrimp Boat
before the storm to 1700 (Tutwiler 2008). Some of the population that left
Delcambre has not returned due to rebuilding costs and the threat of more major
hurricanes in the future. Carol Broussard, the Mayor of Delcambre, does not have
a firm figure yet, but he believes his own town will lose another 500 residents due
to Hurricane Ike (Tutwiler 2008). If the population drops below 1,000 people,
Delcambre will be designated a village rather than a town.
The Town of Delcambre has been challenged with three major hurricanes in the
last 3 to 4 years. Homes and local businesses flooded each time in three years.
When people were trying to get recovery from Hurricane Rita, Hurricane Ike
struck, and it pushed about eight feet of water into the already damaged buildings.
Many people and businesses have lost their boats and almost everything they
own. Judy Brewer, who lived in Mississippi before Hurricane Katrina, had house
in Erath and a business in Delcambre, on Highway 14. She says that “what I
didn’t lose in Katrina and he [her boyfriend] didn’t lose in Rita, we lost in Ike”
(Turwiler 2008).
School enrollments for the time period after Hurricane Rita until just before Ike
hit had barely declined. In 2005, Delcambre High School had a population of 479
students. Early October 2008 enrollment was 457 (Turwiler 2008).
Some people residing in Delcambre are uncertain about their future in Delcambre.
Some say that if hurricanes like Hurricane Rita and Ike come again they do not
know what they are going to do. Many wonder if rebuilding is worth the effort
and time.
“Holding on the population is the problem. Delcambre’s only industry for many
years has been shrimping and processing the catch. Years ago shrimp were
bringing in a high price, and shrimpers and processors were able to make a good
living. But even before Hurricane Katrina and Rita battered the state’s fleet,
shrimps were battling a flood of imported shrimp from Asia that were priced to
undermine Louisiana’s wild – caught crop” (Turwiler 2008).
Mayor Broussard says “We are losing business. Lil’ Sandwich Shop isn’t
reopening. Champagne’s (the town’s only grocery store) never came again”
(Turwiler 2008).
Major Issues in Delcambre
 Hurricanes
 Population Decline
 Relocation of population to other areas
 Fewer opportunities for the growth of business and industries
Page 10 of 28
Team Shrimp Boat


Unsecured investment in developing infrastructure for big industries
and tourism
Lacking businesses that will rebuild community
o Grocery store
o Restaurant
B. Social Trends in Geographic Area
Most social trends in Delcambre focus on the church, family life, and food. The
primary religion is Catholic, and religion is an important part of the community.
Many holiday and religious celebrations recognized by this church, such as Easter
and Lent, are heavily celebrated by the community members. The season of Lent
also brings about other social trends such as seafood boils and family style bar-bq gatherings and social gatherings, which are an integral part of the culture. One
of the biggest festivals is the Shrimp Festival, which focuses on the community’s
dependence of the shrimp industry.
The area is also known for hunting and fishing. Children are brought up from a
young age and taught to hunt and fish by parents and friends. This originates
from the days when farming, hunting, and fishing were important for survival in
rural communities.
C. Economic Growth in Geographic Area:
There are currently two banks, Gulf Coast Bank and Bank of Erath that could
create the opportunity to provide capital to entrepreneurs and small business. This
would also give tourist to the access to monetary funds via ATM machines and
via the hospitality of the friendly Delcambre tellers. Due to the fact that the
banking industry already has a presence in Delcambre, this strength needs not to
be developed further, but rather to just be promoted and further utilized.
Banks with branches in Delcambre (2007 data) (1):


Gulf Coast Bank: Delcambre Branch at 304 La Hwy 14 West, branch
established on 1978-09-13. Info updated 2006-11-03: Bank assets: $237.9
mil, Deposits: $203.9 mil, headquarters in Abbeville, LA, positive income,
Commercial Lending Specialization, 14 total offices, Holding Company:
Gulf Coast Bancshares, Inc.
Bank of Erath: Delcambre Branch at Railroad and Main Streets, branch
established on 1962-10-22. Info updated 2006-11-03: Bank assets: $71.4
mil, Deposits: $59.8 mil, headquarters in Erath, LA, positive income,
Commercial Lending Specialization, 3 total offices
D. Technology Developments Outside of Industry
Page 11 of 28
Team Shrimp Boat
Technology in general is growing at an exponential rate. However, in the Town
of Delcambre, the rate of growth is quite slower. Technologies that are
developing include fiber optic networks, proposed by Lafayette Utilities System
and the early signs of digital television networks. “Lafayette Utilities System is
proud to be a technology leader as the first municipality in Louisiana to build a
100% fiber-optic network” (LUS 3/23/09). In order for Delcambre to attract
people and retail ventures, Delcambre needs reach out to the city of Lafayette and
build a better relationship with them, so that the people of Delcambre will have
the ability to use the fiber optics system. The fiber optics network is a
technologically advanced process, and the town would definitely benefit from the
use of this network (5).
The pace of change for technology is progressively changing. There are many
opportunities for innovation in the Town of Delcambre. Various research and
developments budgets allow for an increase in technological advances within this
town and the surrounding area. Delcambre needs the ability to cope with
technological changes. Other technologies that are in need of change include the
gas line system and the water system. Each system is very old, not efficient, and
does not effectively make use of the existing lines. Each of these systems will
need to be revamped and completely renovated or replaced to help the town grow
in a more technologically advanced way (17). If the Town of Delcambre realizes
the opportunities for technology advancement, then the town will have a greater
chance at stimulating growth in population, retail establishments, and the
industrial sector. A town cannot function properly if water systems and gas lines
are not productive and are wasting money.
The people of Delcambre need to make an effort to work with and cope with these
technology changes. If they do, then the town has the opportunity to further
develop as a technologically-advanced town. The community needs to support
the technology changes in order to progress in the town and stimulate population
growth. Delcambre is very small, so with these changes, Delcambre has a greater
chance to have a stable growth rate of the population. The people of the town will
be more accepting to the revitalization of the town if they see that new gas lines,
water systems, and greater technology, such as fiber optics are being established
within the town.
E. Legal & Regulatory Issues:
Zoning: - The practice of zoning to designate permitted uses of land based on
mapped zones would help entrants into the area feel more comfortable with
developing a business in the area and how the surrounding property could be used
by other businesses. Zoning may be use-based (regulating the uses to which land
Page 12 of 28
Team Shrimp Boat
may be put), or it may regulate building height, lot coverage, and similar
characteristics, or some combination of these. We believe Delcambre needs to
utilize both of these methods in order to create an environment conducive to a
growing retail community. It is recommended that the zoning be divided into the
categories of: residential, mixed residential-commercial, commercial, industrial.
Theoretically, the primary purpose of zoning is to segregate uses that are thought
to be incompatible. In practice, zoning is used to prevent new development from
interfering with existing residents or businesses and to preserve the "character" of
a community (9).
Zoning may include regulation of the kinds of activities which will be acceptable
on particular lots (such as open space, residential, agricultural, commercial or
industrial), the densities at which those activities can be performed (from lowdensity housing such as single family homes to high-density such as high-rise
apartment buildings), the height of buildings, the amount of space structures may
occupy, the location of a building on the lot (setbacks), the proportions of the
types of space on a lot, such as how much landscaped space, impervious surface,
traffic lanes, and parking must be provided (9).
Insurance: Hurricanes and flooding are recurrent dangers for Delcambre, with
being connected to one of the most vulnerable coastlines to flooding nationwide.
Louisiana’s close proximity to the Mississippi River and Gulf of Mexico, as well
as the 50 rivers, streams and bayous in the state, leaves many residents at an
increased flood risk. Delcambre is in a flood zone; city officials must insure that
all residents have the best quality and lowest cost insurance available to their
citizens; this will not only assist the current population when a disaster occurs, but
will help retain the population if all of their losses can be, for the most part, fully
recovered (7).
Sales Tax: The following is the total, state, and parish tax rates on Delcambre and
the surrounding areas (6).
Jurisdiction
New Iberia
Jeanerette
Delcambre
Loreauville
Balance of Parish
Total Rate
8.50%
8.50%
7.75%
8.25%
7.25%
State Rate
4%
4%
4%
4%
4%
Parish Rate
4.50%
4.50%
3.75%
4.25%
3.25%
In comparison, Delcambre is actually in a good position to their neighbors, and
we recommend that they maintain their low tax status.
F. Opportunities & Threats in Macro-environment
Page 13 of 28
Team Shrimp Boat
The opportunities in Delcambre are numerous. To start, reestablishing a grocery
store in this town would establish a much needed basic need—food. People need
and prefer a grocery store that is located in the town. It not only would help
rebuild a commercial district, but it would also demonstrate to the community that
the town is focused on the revitalization and growth of Delcambre. There is much
demand for a grocery store (17), so we believe that this is the most essential
element to stimulate growth. Without competition within the town, one main
grocery store should flourish, if marketed correctly. The closest grocery store to
Delcambre is located in Erath. Delcambre is losing money every day in lost sales
and tax revenue because people are shopping in Erath or other surrounding areas,
such as New Iberia. This is a perfect opportunity for Delcambre to establish a
permanent retail shopping center that will benefit the people within the
community.
Major threats in Delcambre include the threat of major hurricanes. Hurricanes
have been a major factor to the increasing decline of the population, retail stores,
and industrial companies. People are leaving Delcambre because of its close
proximity to coastal waters and flood surge of the hurricanes. Numerous people
have migrated from Delcambre to Lafayette and the surrounding areas because of
the higher ground and lower possibility of extreme flooding.
Another threat in Delcambre is the small market. New businesses are fearful to
move into a town and start a business with very little traffic and low population.
It is very difficult for a business to be profitable in a town as small as Delcambre.
Owners of these business ventures are uncertain about their investment and
wonder if the venture will be profitable in the future. With high start up costs
and a lagging economy, many new businesses have failed. Most investors do not
want to try to open up new businesses in an area like Delcambre. With a
population of about 2000 people, it is highly unlikely that a retail business will
make great profits, especially in the first few years of operation. The purchasing
power of the people is very low; many community members do not have an ample
amount of discretionary income, so this also creates a threat for establishing new
retail businesses.
III.
Market Definition Analysis for Selected Products
For a visual depiction of segmentation, please see next page.
Page 14 of 28
Team Shrimp Boat
Page 15 of 28
Team Shrimp Boat
A. Segmentation Bases
Restaurant: We have segmented the restaurant business based on current
population size and current income level with some potential for growth in both
areas and with plans for tourists to also be customers. A seafood/Cajun restaurant
will be best suited for Delcambre because the community is deeply rooted in the
Cajun culture, and a culture that promotes small-town ideals, not fancy upscale
outsider culture that would encroach on their long unique history.
Kayak/Canoeing/Bicycle/Running-Walking/ Fitness shop Rental/Retail: We
have segmented this market to apply to younger individuals and young adults in
the community and tourists to the area. This can help promote a health and fitness
culture. We recommend partnering with Pack and paddle.
Grocery Store: Based on Maslow’s hierarchy of needs, we must have a grocery
store for physical and economic survival. The grocery store will provide basic
needs, such as food, hygiene products, and a limited number of household items,
such as paper products, toiletries, and a minimum amount of household cleaners.
Cultural History Museum: The cultural history museum in Delcambre will
display artifacts, information, and traditions of the Cajun culture that is unique to
Delcambre, that will in turn promote community pride. We will advertise the
museum on a shrimp boat near highway 90 and 14. There is a large market of
people in the surrounding areas (New Iberia, Lafayette, and Abbeville) that have
not yet experienced the Delcambre Cajun culture. Also, there are many middleschool and high-school students in those areas, which create a demand for this
museum nearly all year long.
B. Market Viability
For market segments to be viable, they must fulfill five key criteria which address
measurability, substantiality, accessibility, differentiability, and actionability (12).
Measurable: Each retail industry we recommended will be easily measurable
because as previously stated in the population/geographic section of this paper,
we do have reliable data pertaining to many different market segments and the
size of those segments.
Substantial: Each retail segment is substantial because the segments we chose
for the market are the grocery store developers and restaurant developers. The
Page 16 of 28
Team Shrimp Boat
developers will target Delcambre citizens and the citizens in surrounding
communities, which include various races and age groups, with a main focus on
low to moderate level income families.
Accessible: The segment is accessible because there is proof that business has
operated in Delcambre in the past. Champagne’s grocery store and Lil’ Sandwich
Shop both were open to customers on a daily basis. Neither of these businesses
has reopened since the hurricanes, so it gives developers accessibility to potential
customers.
Differentiable: The grocery store and the restaurant both target different types of
developers with diverse ideas on how to revitalize or establish business in
Delcambre. The grocery store targets developers that have established small
stores in smaller-sized communities. The restaurant targets developers that want
to utilize the local flair and unique characteristics of Delcambre to create a
seafood restaurant that will boast Cajun pride and great food.
Actionable: Lastly, the segments will be actionable because there is a high
demand for the segments recommended, such as the restaurant and grocery store.
Developers have a customer base already in Delcambre, so the demand is there,
waiting for developers to take action and start rebuilding. With the growth
possibilities, we feel that developers should implement the plans to rebuild and
revitalize Delcambre.
D. Description of Target Markets
The following chart (Figure 1) documents the segmentation of the Delcambre
retail market (11). The retail arena is broken down by the two main segments of
retail; food and entertainment/social networking. We concluded that Delcambre
lacks an adequate restaurant and local grocery store. Maslow's hierarchy of needs,
represented as a pyramid with the more basic needs at the bottom, describes the
areas that we are focusing on. According to Maslow, Delcambre must first meet
its physiological needs in order for the community to feel that the basic needs are
being met (11). This is why the food industry must be a top priority.
First, we recommend a small, locally owned grocery store that will meet the basic
needs of residents. Secondly, we recommend a seafood restaurant that boasts
local Cajun flair and unique attributes, such as fresh seafood. Each option
captures the Cajun culture of the local community. Once the local restaurant and
grocery store have been implemented, built, and established in the community, we
recommend going forward with the open-air seafood market and a local bar.
Page 17 of 28
Team Shrimp Boat
The entertainment/social networking market has much room for growth, but in a
targeted segmented approach. It is imperative that Delcambre attracts new
clientele to the town. Focusing on two of Delcambre’s greatest assets, Lake
Peigneur and the rich Cajun culture allows Delcambre to differentiate itself from
other local communities. Local attractions can still have a price-point that all
could afford. We believe the kayak/canoeing store and a museum which focuses
on Delcambre’s culture will be the best suited to establish stable, economic
growth. The kayak/canoeing store allows people to interact in a fun, stimulating
atmosphere, while at the same time, exercising and utilizing local resources. The
museum will boast the proud Cajun heritage and local flair of Delcambre. Each
aspect allows for tourism, growth, and stimulating the economy.
(11)
IV.
Target Market Analysis
A. End-User Analysis
Customer value is defined as the concept of value that has roots in many
disciplines, including psychology, social psychology, economies, marketing, and
management (10). Customer value is each customer’s perception of what they
want to have happen (for example, the consequences) in a specific use situation,
with the help of a product or service offering, in order to accomplish a desired
purpose or good (10). Consequences are outcomes that are experienced by the
customer as a result of a product use. Customer satisfaction is a representation of
the customer’s reaction to the value received from a particular product offering.
Satisfaction is strictly tied to the customer’s perception of product performance
(10).
Page 18 of 28
Team Shrimp Boat
The customer value determination resulted in the ultimate goals of convenience.
Cajun food, continuance and protection of the Cajun culture, overall leisure and
fitness, and convenience in a grocery store. The customer value hierarchies below
reflect the determination of these ultimate goals.
Figure 1—Value Hierarchy
Targeting Developers of Grocery Stores and Restaurants
Objectives/Goals
Large Source
of Revenue
for
Developer
Consequences
Successful
Restaurant
Growth of
Entertainment
Development in
Area
Get piece of
revenue $
spent at other
Grocery stores
Potential for
Local Dining
Development
Potential for
Entertainment
Development
Potential for
Local Grocery
Development
Attributes
B. Channel Customer Analysis
For kayak/canoeing events, the store should market events in local magazines,
such as The Times of Acadiana, local newspapers, and other local media ventures
such as television advertisements played throughout Acadiana area. The Games
of Acadiana Reaux for Miles is one main focus area that would benefit from our
Page 19 of 28
Team Shrimp Boat
Kayak/Canoe retail business. To advertise the Cajun Museum, we will advertise
using an old, abandoned shrimp boat from the canal. The boat will be located
near highway 90 and 14. There is a large amount of traffic in this area, so it
should attract many viewers and interested tourists. This advertisement will be
present to the surrounding communities and will attract people from outside of
Delcambre.
C. Competitor Analysis
Market Coverage: The target market is Delcambre citizens and the surrounding
communities with a broad focus on all races and age groups. It is targeted to a
low to moderate income level families.
Competencies of Competitors: We will use a form of the Blue Ocean strategy for
the Kayak/Canoe shop and for the Museum because there are not any competitors
within these segment areas (18) in the area. Thus, the kayak business would be a
Blue Ocean for the Delcambre area. The Blue Ocean strategy is a niche market
that focuses on a segment that is yet to be tapped into, such as the Ford Model T
and Cirque de Soleil (18). The only competitor for the grocery store is
Champagne’s Supermarket in Erath (16). There are other options for people in
Delcambre to shop at, such as Wal-Mart Supercenter in New Iberia and Lafayette
(13). However, neither of these options offers local flair or quick accessibility to
the Delcambre community. As for the restaurant, there are no competitors within
the Town of Delcambre that provides a fun atmosphere and great Cajun seafood.
There are numerous seafood and Cajun-style restaurants within a 30 mile radius,
with many residing in Lafayette (13). However, we feel that the Cajun seafood
restaurant in Delcambre would not be competitors of these restaurants located in
Lafayette because they do not provide the same type of feeling, atmosphere, and
Cajun heritage that the restaurant in Delcambre would provide to customers (15).
D. Supply Chain Analysis
Our industry is the retail industry. We feel that there are many opportunities for
retail ventures in the Town of Delcambre. A restaurant, grocery store, museum,
and a kayak/canoe retail shop are just some of the many ideas that we feel will
benefit the community and the people of Delcambre (14). The retail industry uses
producers, wholesalers, distribution centers, and retail stores in the retail supply
chain management aspect. Once the retail business receives its merchandise, it is
made available to the customers/end-users.
For two of the market segments, the Restaurant and Grocery store, below are
examples of the supply chain. For the restaurant supply chain, some of the supply
of foods will be local from the seafood market in Delcambre. The remaining
Page 20 of 28
Team Shrimp Boat
foods will be purchased from a wholesaler for preparation and distribution in the
restaurant. These goods will most likely be transported via highway to
Delcambre. For the Grocery store supply chain, most goods, with the possible
exception of seafood from the local seafood, market will come from wholesale
distributors who transport the goods via highway transportation to the grocery
store for ultimate sale to the consumer.
V.
Evaluation of Market Opportunity
Advantages for Grocery stores
1. Support from the community: The people of Delcambre need a main grocery
store to stimulate the economy.
2. Competition: This store will face minimal competition because there is not
competition within the town. There is some degree of competition if shopping
outside of Delcambre.
3. Local foods: Local foods, such as fresh seafood, will be promoted throughout
the store.
4. Perception: Local people will prefer to buy in local stores, rather than driving
longer distances. Quick access to a local store promotes community growth.
5. Convenience: Convenience of shopping in your own town rather than
spending money in another town.
6. Brand loyalty: People will recognize the ability of local grocery store to carry
brands that customers in Delcambre prefer.
7. More inelastic consumer response to price increase: We will supply most
necessity goods, such as household products, basic hygiene products, and
paper products.
Advantages for restaurant
1. Cajun foods: Restaurant will specialize in local, favorite Cajun dishes.
2. Seafood: Consumers prefer fresh seafood, which is easy to accommodate.
3. Low price: Providing tasty food that is reasonably priced will stir demand for
product and make the restaurant well-known.
4. Unique taste: The unique Cajun-style of cooking will be a main focus of this
restaurant. People will want to visit Delcambre because of the great-tasting
restaurant!
5. Convenience: The convenience of a local restaurant will promote community
growth and build up social networking within Delcambre.
6. Brand loyalty: Unique taste, reasonable price, and convenience will build
loyalty to the restaurant.
7. Entertainment: People dining at the restaurant will enjoy great food and
scenic atmosphere. Views of the canal will be possible from many angles of
the restaurant.
For the advantages of the kayak/canoe retail store and the cultural museum, please see the
appendix. Both of these options had great advantages for the town; however, we feel that
Page 21 of 28
Team Shrimp Boat
museum and the kayak/retail store are not necessities for the town at this point in the
revitalization stage.
Delcambre has a great opportunity to revitalize the town in a manner that is consistent
with the town’s values, culture, traditions, heritage, and history. The marketing strategy
that we propose offers valuable ideas that we think will be assets to the town. There are
immediate needs in the community that need to be addressed, such as reopening a local
grocery store and establishing a seafood restaurant.
The options that we propose are ventures that we brainstormed, analyzed, researched, and
evaluated to be the best options for economic growth, population stimulation, and
rebuilding a community rich in a deep heritage and culture that cannot be destroyed or
eliminated by a hurricane or two. If the Town of Delcambre decides to invest in at least
some of the proposals, then we feel that the town will see growth in both the business
sector and within the community population. Delcambre is a small, character-filled town
with many natural assets that need to be utilized to their fullest extent. We believe that
our proposed options will help the Town of Delcambre revitalize and reestablish itself as
a small, thriving community that boasts Cajun pride, rich culture, and a close-knit
community.
Page 22 of 28
Team Shrimp Boat
References
1. Citi-Data.com
http://www.city-data.com/city/Delcambre-Louisiana.html
This website lists hundreds of towns and cities, their profiles, and statistics for the
towns and cities.
2. SimplyHired.com
http://www.simplyhired.com/a/local-jobs/city/l-Delcambre,+LA
This website addresses information on the job market, salary averages, population
statistics, and race of the town.
3. Mary Tutwiler. “Delcambre’s Dilemma.” The Independent Weekly. October 1, 2008.
The article describes some of the issues facing Delcambre and questions
addressed about rebuilding the town.
4. U.S. Census Bureau
http://factfinder.census.gov/servlet/SAFFFacts?_event=&geo_id=16000US22201
55&_geoContext=01000US|04000US22|16000US2220155&_street=&_county=d
elcambre&_cityTown=delcambre&_state=04000US22&_zip=&_lang=en&_sse=
on&ActiveGeoDiv=&_useEV=&pctxt=fph&pgsl=160&_submenuId=factsheet_1
&ds_name=null&_ci_nbr=null&qr_name=null&reg=null%3Anull&_keyword=&
_industry=&show_2003_tab=&redirect=Y
The U.S. Census Bureau gives the data collected in the 2000 census. This data
shows the population, population growth, and income levels, to name a few.
5. Lafayette Utilities System
http://www.lus.org/site218.php
We used this website to find out more information on the fiber optics system
within Lafayette. This site describes what it is, why it should be used, and the
advantages of fiber optics.
6. Iberia Parish Tax Collection Agency
http://www.laota.com/parish2/Iberia_Parish.html
The website shows the tax rate of both Iberia Parish and towns within the parish.
7. National Flood Insurance Program
http://www.floodsmart.gov/floodsmart/pages/flood_facts.jsp
The website gives information on flood insurance, which is a huge factor in the
revitalization of Delcambre.
8. KLFY 10-Acadiana’s Local News
http://www.klfy.com/Global/story.asp?S=6642615&nav=menu61_1
Article about the “Saggy Pants” ordinance in Delcambre
Page 23 of 28
Team Shrimp Boat
9. Lefcoe, George. The Regulation of Superstores: The Legality of Zoning Ordinances
Emerging from the Skirmishes between Wal-Mart and the United Food and
Commercial Workers Union(April 2005). USC Law, Legal Studies Research
Paper No. 05-12; and USC Law and Economics Research Paper No. 05-12.
Available at SSRN: http://ssrn.com/abstract=712801 or DOI:
10.2139/ssrn.712801Basic definition of zoning, origin of zoning, and types of
zoning.
10. Woodruff-Gardial. “A New Perspective on Customer Value.” Chapter 3. Pg 51-81.
Article describes customer value and how to determine customer value.
11. Kotler, Philip and Kevin Lane Keller. Marketing Management.
Basic definition of Maslow’s Hierarchy of Needs. 13th Edition. Chapter 6. Pg162163.
12. Kellet, Kevin, and Philip Kotler. Marketing Management. New Jersey: Prentice Hall
2009. 13th Edition.
Personal Observation
13. Megan Galloway
Visited Town of Delcambre on Wednesday, March 11, 2009. Megan was the
only team member that day to visit the town. The length of the visit was
approximately1 hour.
14. Bishwa Raj Adhikari
Visited Town of Delcambre on Saturday, March 7, 2009. Bishwa and Shane
Landers toured the town, along with other class members. The length of the visit
was approximately 4 hours.
15. Shane Landers
Visited Town of Delcambre on Saturday, March 7, 2009. Bishwa Raj Adhikari
and Shane Landers toured the town, along with other class members. The length
of the visit was approximately 4 hours.
16. Dustin Baudin
Visited Town of Delcambre on Saturday, March 28, 2009, and Sunday, March 29,
2009. Dustin was the only team member to go on this visit. The length of each
visit was approximately 1 hour.
17. Mr. Scott Saunier
ssaunier@indsg.com
Page 24 of 28
Team Shrimp Boat
He spoke to the Marketing 524 class on Wednesday, March 11, 2009. Used his
key points and generated new ideas based on his experiences and what he would
like seen in the future in the Town of Delcambre.
18. Kim, W. Chan and Renee Mauborgne. “Blue Ocean Strategy.” Harvard Business
Review. October 2004.
Describes Blue Ocean Strategy and gives examples.
Page 25 of 28
Team Shrimp Boat
Appendix
As stated in the segmentation section, we have chosen to recommend a seafood
restaurant, a small locally-owned grocery store, a museum, and a kayak/canoe rental
shop. In choosing these specific industries, we have also had to exclude many promising
retail industries. The industries we choose not to recommend were industries that we feel
would not produce the best streams of revenue for Delcambre at this moment in time,
considering the current market segments represented in the town. We feel that a local bar
and open-air seafood market could draw in both local residents and residents from the
Acadiana region. However, these are not a necessity at this point. Industries such as a
golf course, spa, tanning salon, aquarium, and fitness gym are all geared towards a higher
income-earning market segment, which is not representative of the general population
with this small, humble shrimping town.
Advantages for Kayak/Canoeing Retail Store
1. Leisure time activities: Kayaking/Canoeing will provide exciting, outdoor
entertainment to the community and visitors.
2. Big water way: Jefferson Island, Avery Island, and canal connecting to Gulf
of Mexico will be a utilized resource and great advantage this business
because of the easy access to different kinds and sizes of water.
3. Low price high demand: Lower service fee will stimulate more demand
4. Competition: Blue Ocean Strategy will keep competitors far from this
business because this idea has never been implemented in Delcambre.
5. Brand loyalty: Great service, exciting outdoor entertainment, and convenience
of water will build local brand loyalty and establish a niche market.
6. Support from community: Use of local resource will generate income to the
community (tax, employment) and local people.
7. Involvement: This business will involve local people in this business directly
and indirectly. This will create more employment opportunities for citizens of
Delcambre.
8. Great entertainment: Our unique service will provide memorable outdoor
entertainment to consumers.
Advantages for Museum
1. Cajun culture: Local people or tourists from outside will take pride in a local
museum that teaches about the local, Cajun culture and history of the town.
2. Competitive advantages: There is not a museum in the area that teaches
about the Town of Delcambre, the history, the Cajun culture, and the shrimp
industry.
3. Support from the community: Local people will support and promote the
protection of the Cajun culture and the town history.
Page 26 of 28
Team Shrimp Boat
4. Perception: The people of Delcambre will perceive the museum as a unique
point of interest that will stimulate tourism and economic growth. They will
revel with the idea of a local museum that promotes their unique culture.
5. Knowledge of history and culture: This business will promote local history
and culture.
6. Educational: The museum will be both an educational experience and an
interesting experience. This museum will promote the history of the town,
which will teach younger citizens and tourists about the Town of
Delcambre.
7. Brand loyalty: Cost effectiveness, convenience and unique operation will
create brand loyalty and pride.
8. Great entertainment: This museum will provide a relaxing entertainment
atmosphere that will promote an educational experience for all age groups.
Page 27 of 28
Team Shrimp Boat
Log of Group Meetings
Date
Subject of Meeting
01/28
Group Meeting: General discussion, discussing how to begin project
02/04
Group Meeting: Discussion on topic selection
02/11
Group Meeting: Discussion on general background, searching sources for
information
02/18
Group Meeting: Discussion on text, Gathering info from sources
03/07
Shane and Bishwa visited Delcambre on class tour, talked with local people
03/11
Megan visited Delcambre
03/11
Group Meeting: Discussion on text; begin writing
03/25
Group Meeting: Continued discussion on text, continue writing
03/27
Group Meeting: Text writing as a group and individually on parts
03/28
Group Meeting: Text writing, working on power point, designing
03/28
Dustin visited Delcambre in the afternoon
03/29
Dustin visited Delcambre
03/29
Completed writing, wrapping up project
03/31
Preparation for presentation, Corrections
Page 28 of 28