Liked the idea of wedding websites Still found it difficult to coordinate Couled be used to obtain funding Ties into all our classes
Combines the content of thousands of sites, and contact information of thousands of wedding vendors in a single location Flrists, dj photographer, caterers, attire, initations Vendors that don’t’ have a system can use ours It ties into our search engine so customers can search them out. Anyone visit www.homestore.com? And look at examples of houses onnline using IPIX technolgies. Use the same for reception locations With membership have access to wedding checklist, interactive weding calndar, guest list manager The whole business is really a concept that would aid in wedding planning
Basics of the business model. Still in the works on whether or not to charge website viewers. Model may rely too much on vendor advertisement money, may need to consider other models such as e-commerce revenue models, that will be for future growth.
Why is the Industry a viable one. Part of wedding industry which is proven. BUT ALSO PART OF DOT COM specifically Information Retrieval Systems or Miscellaneous Computer Related Services or Online Content Provider Depending on which Industry Research Organization A look at the finantials of online content providers industry reveals???
Large Markets attract competition The fact that there are very few large companies constant to both industries needs to set off a light bulb. Yes the dot com companies aren’t doing well at all Half of customers that have web access use the Internet for wedding planning 2.4 million marriages Half use the Internet No real industry averages for “wedding companies” but the averages for Online Content Providers was not a plus. The potential is certainly there Especially for e-commerce which we need to plan for (not yet included in business plan)
Locally I’ve found over 1300 Considering all the types of vendors Photographers, musiciains, videographers,disc jockeys, reception venues, florists, accessory providers, attire audio visual, bakery, beauty and helath, beverages, caligraphers, caterers, chapels and churches, wedding consultants (another potential market for the product), dance instructors, decorations, entertainment, wedding favors and gifts, furnishings, honeymoon planners, invitations, jewelry, lodging, rentals, restaurants, day after planners, transportaion, travel, wedding registry, ministers
Like all other online content providers, none of the big companies listed in the industry have pulled a profit. This allows you to see the popularitiry
The best I liked was www.weddingconnections.com provided the most vendor contact information Wedding coordinators and consultants may be a better market for the product Did not do a study on this.
Being a small company need to search for all the competitive advantages as possible Search IPIX Scheduling system, No other wedding planning sites have these features not-tied into eommerce money loser.. At least not yet
Get listed on all search engies Electronic announcemnets mailed out to guest list will increase reach Strategic relationships - Need one with company that provides wedding registry- need one with IPIX Advertise – along with internet advertising, newspaper, radio, tv, and especially bridal magazines
With website development need a real good domain name Investigate Hire personnel There are still issues with IPIX that need to get hatched out
In our research, for a san diego location Oceanside 1.53 per sq foot, sandiego averaged 3.0 per sq ft for rent Org building – get the personnel Tech infrastructure – for both internal and external users Marketing starts doing their job
Business moels are too limited. May be too expensive Tech issues with IPIX Booking system may not be embraced. Most have their own and might not want to change. Wedding channel.com, theknot.com, they have good names and strong brand loyalty.
Development costs Sales expenses Rent Employee wages
Didn’t study e-commerce but need to look at this to further capitalize on the actually website viewers (the couples getting married) Need to also develop strategic relationships (IPIX technology, an dorganization that provides online wedding registry) Success depneds on pentration the local market, this means vendors must buy into the idea of paying for the booking system, and use it. IF marketing does its job, then we should be able to get a critical mass of customers. There aren’t enough wedding businesses in San Diego to provide sufficient revenues to continue operations, the company would need to expand into other markets (didn’t do a study on this) Risks of the Industry show not to pursue venture,
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 By Federico A. Garcia, III June 15, 2002
Topics for presentation Purpose of the business plan Description of the Business Industry Market Research Marketing Plan Design and Development
Topics for Presentation Operations Plan Critical Risks Financial Analysis Conclusions and Recommendations
Purpose of the Business Plan Own experience in planning a wedding Evaluate viability of an online wedding planning business Add value to MBA program
Description of the Business Wedding research for planners Online booking system for vendors Ability to view reception sites Wedding planning tools Business 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 Industry Wedding Industry - $70 Billion Online Content Providers Industry averages -$432,000/yr.
Dominant Economic Characteristics Market Size $70B for wedding industry Number of Companies Very few large in the industry companies Customers Profitability 2.4 million marriages For wedding industry it looks great, future prospects uncertain for dot.coms
Market Research Website viewers 24,000 marriages in San Diego Half use Internet to plan wedding Over 1300 Wedding related businesses in San Diego
Other Competition Local Competition SanDiegoWeddings.com, marrymeinsandiego.com, weddingconnections.com Substitute Products Wedding coordinators and consultants
Competitive Advantages Search capability Viewing reception locations Online scheduling system for vendors
Marketing Plan Brand-name awareness Search engines Build membership Electronic announcements Use of applications (calendar, checklist, guest-list manager) Establish Strategic relationships Advertising
Design and Development Tasks Website development Domain registration Web hosting services Hiring Proprietary issues with IPIX
Operations Location – Oceanside Strategy and plans Organization Building Technology Infrastructure Marketing Development of Site
Critical Risks Business Model Technology Issues Proprietary Technology Lack of Exclusivity Online Booking system Strong brand loyalty to competitors
Financials Funds Required - $440,000 Development Costs Operating Expenses
Year 1 Year 2 Year 3 Year 4Revenue 234,000 320,000 800,000 1,600,000 Year 1 Year 2 Year 3 Year 4Net profit -237,580 -178,547 8,106 359,342 Year 1 Year 2 Year 3 Year 4Equity capital needed 440,000 50,000 0 0Borrowing anticipated 0 25,000 50,000 -5,000 Year 1 Year 2 Year 3 Year 4Total debt 2,268 28,102 57,756 10,511Total equity 202,420 73,873 81,979 441,321
Conclusion It is viable but risky Success depends on successful penetration of local market and expansion into other markets Recommending do not pursue the venture.