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AUREA’S CORPORATE EVENTS CENTER MARKETING PLAN
RUNNING HEAD: AUREA’S CORPORATE EVENTS CENTER MARKETING 1
Aurea’s Luxury Weddings and Events
Marketing Plan
February 23, 2019
Abstract
The Northern Virginia area is a densely populated area with over eight and a half million habitants and growing. Furthermore, the Northern Virginia area is home to over one million businesses, varied in size and demographics (World Population Review, 2018). The district continues to grow in both population and business presence. Real-estate is becoming scarce and more expensive. People are running out of options to host their celebrations, gatherings, meetings, symposiums, and other events. This combination of circumstances creates a breeding ground for growth and opportunity across many sectors. Aurea’s Luxury Weddings and Events is focused on providing something that is currently a prime luxury in the already busy area – space for hire.
The marketing plan focuses on promoting a Corporate Events Center & Restaurant in the area that will provide a multitude of options for hosting any event, big or small. The event center will be nestled on a ten-acre property with several buildings designed to cater to any budget, any event, and at any time. The marketing strategy will focus on traditional and quasi-modern marketing techniques that appeal to current and future demographics. The approach includes social media marketing, traditional marketing, word of mouth and other marketing streams suited to specific events, for instance, weddings and corporate retreats.
The plan will also include a strategy to attract some of the area’s most exceptional local businesses to provide best-in-class services and establish outsourcing relationships. It will focus on niche products like Farm-to-Table Catering, Artificial Intelligence (AI) products, and other locally sourced products like local bands, locally sourced crafts and technology products. The desired outcome for this marketing campaign is to make Aurea’s a household name by revolutionizing event hosting for the modern Executive, local businesses and day-to-day consumers.
Aurea’s Luxury Weddings and Events
Aurea’s Restaurant is a small, family-owned Latin-American restaurant located in the heart of the northern Virginia area. The restaurant currently boasts two locations strategically located in densely populated areas within Northern Virginia. The restaurant is looking to acquire another property in Northern Virginia that would provide the opportunity to expand the Aurea’s brand by adding two new service offerings – a Corporate Events Center. The already well-known restaurant brand would then be able to provide full-scale event services for up to three hundred guests. This would position Aurea’s within the multi-billion-dollar wedding venue industry as well as the niche bed and breakfast and corporate events markets.
Situational Analysis
The Brand
The Aurea’s Restaurants have been part of the Northern Virginia area for almost one hundred years. Founded by one of the area’s most loved families in the early 1920s, Aurea’s was noted as one of the most elite social spots over the last century. Aurea’s is synonymous to comfort and family. The Aurea’s brand is focused on selling a customer experience rather than just a product. Its culture is centered around ensuring customers experience the feeling of familiarity and comfort and thus securing repeat business. The combination of quality food and superb customer experience set the stage for Aurea’s Luxury Weddings and Events to become a preferred household brand.
Brand History
Known for interrupting conventional decorum, Mrs. Aurea Miranda Devout convinced her husband, Sir Edward Devout, to open a restaurant lounge near the water in the township of Alexandria, Virginia where people could enjoy supper and spirits without being judged or discriminated against. In other words, she wanted to bring people of all cultures together without being victimized by societal standards. There, Aurea introduced Latin cuisine the first time. It gained a reputation for serving the best home-grown Spanish moonshine and other spirits during the prohibition era and has always maintained a loyal customer base and gained sponsorship from some of the country’s most controversial characters including the English Crown, Gotti family, the Kennedy’s. Today, Aurea’s still stands in the same place it was founded almost one hundred years ago. It continues to provide delicious Latin and international cuisine while still providing a comfortable environment for anyone to just “hang out.” Aurea’s only requirement to receive services was to be “color and gender blind” – everyone was treated with respect.
Figure 1 Aurea’s Future Corporate Events Center Restaurant
Figure 1 Aurea’s Future Corporate Events Center Restaurant Throughout the years, Aurea’s Restaurants have maintained a strong customer base. However, they have not invested heavily in marketing Aurea’s brand. Their reputation has been solely obtained by word of mouth and repeat business. The founders did this on purpose because they wanted to control whom their customers were based on their, then illicit, requirements. Now, times have changed, and this is no longer an applicable situation. Aurea’s faces an impending expansion which will acquire a new manor house with ten acres and a working, self-sustaining farm. Aurea’s intends to convert this manor house the Aurea’s Luxury Weddings and Events. This endeavor requires good marketing in order to ensure its success.
The Aurea’s brand is well known in the Northern Virginia area and has displayed positive brand loyalty. Aurea’s culture of inclusivity has been a signature to the brand since its inception. From bands playing to artists painting and chefs from all over the world cooking, Aurea’s has always been a cultural mixing bowl that fosters a sense of family despite the obvious differences. The restaurant brings chefs from all over the world to make spectacular and unique dishes that can be sampled by everyone. Aurea’s prides itself in providing excellent quality cuisine, at-home-feeling customer service while maintaining some of the traditions that were important in the formation of its legacy.
Last year, Aurea’s successfully launched the “Food Brings us Together” campaign which was designed to promote Aurea’s brand and introduce it to modern-day society as an exemplification of unification for all cultures. Some have called it “the icon of America’s mixing bowl” and others “the country’s largest international family house”. For those who know about or have heard, Aurea’s is a place where people from all walks of life can feel at home amongst other people from all over the world.
Market Research
Figure 2: DC Meetings and Events Stats from Washington.Org
Figure 2: DC Meetings and Events Stats from Washington.OrgMarket Summary
The Meetings and Events market is a multi-trillion-dollar global industry that has seen sustainable growth over the last ten years. Specifically, the area of Business events “generated more than $1.07 trillion of direct spending, representing spending to plan and produce business events, business events-related travel, and other direct spending, such as spending by exhibitors” (Menegus, 2018). The Washington D.C., Maryland, Virginia (DMV) tristate area is a hub for business conferences and events. Space is at a premium with most conference centers in the area being booked as far as a year out for large conferences. According to the Events Industry Council, the Meetings and Events industry “will see an increase of five to ten percent in 2019” (Menegus, 2018) in North America. The M&E market is susceptible to changes in hotel prices, travel cost increases as well as meeting technology attributes and ground transportation (Menegus, 2018). Furthermore, the industry contributes an average of $621.4 billion direct GDP impact worldwide making it the “22nd largest economy globally” (Menegus, 2018).
Market Demographics
The Aurea’s Luxury Weddings and Events Center intends to cater to the corporate business events market as well as weddings and other gatherings. Of these markets, Aurea’s anticipates that corporate events will be its primary market target. In 2017, “business events involved more than 1.5 billion participants across more than 180 countries” and “generated approximately $1.07 trillion of direct spending” (Events Industry Council, 2018). In its report, the Events Industry Council states that the Business Events market generated over $1.03 trillion in direct spending worldwide.
Market Needs
The M&E market continues to evolve and expand its interests in technology and convenience. Our most prevalent demographics includes working class adults between the ages of twenty-five and fifty-five. Today, most meeting goers are looking for commodities that enhance convenience and maximize time efficiency. Market research revealed that the target demographics look for the following when organizing a large event:
Meeting Needs
Technology
Location
Convenience
Capacity
Private Celebration Needs
Technology
Unique Experiences
Privacy
Security
Market Trends
According to Cvent (2018), the events and meetings industry is growing in all regions of the globe leading to increases in duration, size, and budget. Businesses realize the value of meeting and celebrations for brand and revenue. As a way to boost attendance, and build more engaging experiences, organizers are using unique venues and destinations. Technology is at the core of establishing a pleasant experience with artificial intelligence, augmented reality, and virtual reality giving attendees new experiences. Lastly, privacy and security are becoming major concerns. Information gathered at events, and the risks of terror-related incidents are gaining greater attention among attendees.
Market Growth
According to Higgins (2019), the B2B events and meetings market are growing with various types of events, such as conferences, tradeshows, and sales and marketing meetings rising. However, the budgets of a conference and corporate events are expected to remain the same as last year. More than 72% of companies will work with an annual budget of less than $30,000 and 38% will spend a little more than $1,000 for each event (Higgins, 2019). The same growth is expected in private celebrations, for example, weddings with the market expected to continue seeing more significant increase. The wedding market was estimated to be worth $72 billion in 2018 (Danziger, 2018). Although attitudes towards costly marriage ceremonies are changing, projections show that the market will continue to increase in size.
SWOT Analysis
Strengths.
Location: The DC Area boasts:
Connections to 1,000+ destination including Michelin-starred restaurants and 5-star hotels. The proximity to these facilities provides accommodation for people who will be attending various events at Aurea’s Luxury Weddings and Events locations. Thus, people have an assurance of ample entertainment, lodging and boarding.
An advantage of unmatched access to expert speakers in all aspects of federal policy and industry sponsors for any event. The access to these amenities positions Aurea’s to ensures that the events held at Aurea’s will have unique speakers increasing the appeal of the venue.
Access to thought leaders who will help you gain a competitive advantage for your organization. Again, the proximity to these individuals offers a way to attract events, especially conferences and seminars.
Access and ability to travel the nation’s capital with ease by train, airport, Metro, bus or foot. The provision of these tips will be add value to the attractiveness of the venue. Individuals will be able to navigate the city and arrive at destinations conveniently and on time.
Weaknesses.
The Aurea’s brand is well established within the restaurant industry; however, it is not experienced in the Meetings and Events market. Penetrating this market segment will be a challenge for Aurea’s. However, incorporating or combining Aurea’s restaurants into the events centers will secure a revenue stream while the Events Center gains reputation and clientele. Together they will form the Aurea’s Luxury Weddings and Events Center.
Recently, Aurea’s Restaurants customer base has quadrupled over the last decade making the popular locations an inadequate size for such high demand. This year, the family decided to acquire three new properties in different parts of the area to establish a chain of restaurants and event centers in strategically located throughout the metro tri-state area (Virginia, Maryland and Washington D.C.). These properties were strategically situated in densely populated areas and offered several amenities including prime parking, a great view, and proximity to local attractions.
Opportunities.
The opportunities available in the market include the ability of the venue to attract seminars, conferences, and weddings that will be hosted at the site. As stated, the demand for B2B events and weddings is growing. The Aurea’s Luxury Weddings and Events venue has the potential to attract these events through the provision of value by employing technology, convenience, occupancy, and security strategies to separate itself from the competition. The Aurea’s venue also can host luxury dinners and parties for the rich and famous to boost its revenues.
Threats.
Competition
Aurea’s Luxury Weddings and Events venue faces considerable competition. Apart from the smaller event-hosting locations, the Northern Virginia area has a variety of five-star restaurants and hotels that are capable of hosting luxury weddings, parties, conferences, and seminars. The hotels present considerable competition for the business that makes it critical for the company to develop strategies to add value to their services to increase its appeal among the clients.
Product Offering
The business has a limited product offering. Aurea’s offers products and services that the competition can replicate. For example, the use of technology, capacity, privacy, and security to attract customers is a critical shortcoming of the business. The strategies used by the venue can be used by other companies to make their locations appealing that can reduce the market share of the luxury weddings and events venue.
Keys to Success
The keys to success for the business lie in the luxury products and services that it provides. Aurea’s will use products like Farm-to-Table Catering, Artificial Intelligence (AI) products, and other locally sourced products like local bands, locally sourced crafts and technology products to boost its appeal. The method will enable the venue to appeal to a niche market comprising of wealthy individuals and companies with high turnovers. As a result, the strategy will be a critical factor for the success of the venture.
Critical Issues
The significant matters facing the company include the considerable competition that the business faces from hotels and smaller event-hosting venues. Furthermore, the location has to deal with critical risks involving privacy and security. Apart from the threat of terror and theft activities, the venue will also be susceptible to privacy issues when they host events that include the rich and famous in the society. Privacy is a significant issue for these individuals due to the habit of journalists and paparazzi seeking to expose the lives of such people. In this regard, the premises must take measures to secure the venue and avoid leaking any information, videos, or photos of events when the individuals request it.
Marketing Strategy
Mission
The mission of Aurea’s Luxury Weddings and Events is ‘to help our customers create a vision of what they want to realize, and to develop and execute a comprehensive solution that brings the vision into reality through proven techniques, innovative concepts, limitless resources, and professional advice in the event planning and management industry”.
Marketing Objectives
The marketing objectives of Aurea’s Luxury Weddings and Events venue are as indicated below.
Increase awareness of the business and its products and services among the Northern Virginia people.
Grow the market share of the business by 20% within the first year of operation.
Target new customers within and outside the Northern Virginia region.
Enhance the relationship with current and potential customers of the business.
Location
Aurea’s is strategically located within 10 miles of Dulles International Airport, within 5 miles of the Dulles Town Center and within walking distance of other amenities.
Capacity
Aurea’s will be able to host up to 500 people in its new conference center structure expansion and up to 300 additional people in the main mansion.
Innovation
Convenience
Strategic Meeting Planning
Customer Service Excellence
Financial Objectives
The financial goals of the business seek to realize a return on the initial capital invested in the project within two years and generate a profit in the third year of the business’s operations. As a result, the particular financial goals of the company are given below.
Breakeven within the first eight months of the business
Generate a 10% profit in the first year of operations of the company.
Target Markets
The principal markets that the business wants to attract are large corporations with high revenues that seek to give their workers unique experiences during seminars, conferences, and other corporate events. They include companies within the Northern Virginia region as well as those outside the area that want a memorable experience for the people attending the events. Also, the venue seeks to attract luxury clients, exceptionally rich and famous people, who want a special place to host their weddings, parties, birthday ceremonies, and other events. The value that Aurea’s will provide is the exclusive service that includes Farm-to-Table Catering, Artificial Intelligence (AI) products, and other locally sourced products like local bands, locally sourced crafts and technology products.
Positioning
The positioning of Aurea’s Luxury Weddings and Events is as denoted in its name. The company will position itself as a company that offers luxury experiences to its customers. The provision of extravagance will be achieved through products like Farm-to-Table Catering, Artificial Intelligence (AI) products, and other locally sourced products like local bands, locally sourced crafts and technology products. Moreover, the company will distinguish itself from the competition by focusing on establishing a reputation of offering unique experiences to the attendees of different functions.
Strategies
The strategies that will allow the business to achieve its goals the provision of products and services that cater to a unique group of customers. Some of the goods that will be available at the venue include Farm-to-Table Catering and Artificial Intelligence (AI) products. On the other hand, the services that the venue will provide are local bands and a unique venue that can be tailored to the needs of different events.
Marketing Program
Pricing. The pricing of the events and weddings that will be hosted at the company will differ depending on the products and services that a client wants as well as the number of guests. However, the average cost of hosting a wedding will be $20,000 while the estimated expense on a conference or seminar will be $2000.
Distribution. The distribution process of the venue will involve the selling of tickets and invitation cards to the events being hosted at the location. In this case, the company intends to rely on technology by selling and distributing tickets on specific websites, such as Ticketmaster, SeatGeek, and Eventbrite. The goal is to reach a large number of people who can attend the different proceedings. In addition, the venue will partner with several shops within the Northern Virginia area to sell the tickets for the events that will be happening at the venue.
Advertising and Promotion. The advertising and promotion process for the venue will employ several strategies. First, the traditional forms of promoting products, such as television and radio will be used to market the venue. However, the business will not make significant use of the techniques due to the high cost associated with these channels. Second, the company will use banners, billboards, and pamphlets to increase awareness of the venue. The goal is to provide a view of the products, services, and amenities available at the facility within the Northern Virginia region. Finally, social media will be a critical tool for the marketing. Aurea’s will rely on Facebook, Instagram, and Pinterest to generate interest, increase awareness, and appeal to clients to host events at the location. The goal is to interact with customers and show them what the facility has to offer as a way to boost sales. In this regard, the company intends to have a full-time social media marketer to help it develop and execute an effective social media marketing strategy.
Customer Service. The customer service aspect of the venue will focus on three elements: knowing what customers want, giving them what they want, and asking for feedback. Understanding the needs of the customers will focus on several issues. The business must know what the event entails, how the client wants it, and the costs involved. Delivering what the customers need is the actual process of giving them the things that they discuss with their event planners. Finally, the feedback section will include gathering information on whether the company met their requirements, the nature of the service in terms of speed and responsiveness as well as the satisfaction of the clients with the venue, its products and services. Customer service will also stress the identification of areas that the business can improve.
Financials
Marketing Costs
Item
Cost
Television and Radio Advertising
$96,000
Banners, billboards, and Pamphlets
$6,700
Social Media Marketer
$60,000
Total
$161,700
Cash Flow Forecast
Controls
Implementation
The owners of the company will be responsible for the implementation of the plan. They will act as the executives of the firm and have the responsibility of ensuring that they follow its details. As a result, the company will be able to achieve its objectives.
Marketing Organization
The organization of the marketing aspect will involve employing the strategies discussed in the marketing section of the plan. In this case, the managers will work together with the marketing personnel, mainly the social media strategist to execute the plan. The social media marketing method and the banners, pamphlets, and billboards will be used continuously. However, the television and radio technique of promotion will be used after every four months to enable the company to control its costs while raising awareness and appealing to more clients.
Contingency Planning
Difficulties and Risks
The difficulties of the business plan involve controlling the various aspects of the business to ensure the company remains on course to achieve its aims. Changes in the business environment can have adverse effects on the business reducing the ability to generate the revenues and profits it aims to reach. Furthermore, the high level of competition can be a problem for the enterprise limiting the earnings of the venue. In regard to risks, the business faces financial, market, and technical risks. Financial risks arise from the potential that it may not get the funding needed or be able to control costs as required. Market risks are due to the possibility that the conditions of the market might change leading to more problems. On the other hand, the technical risks involve the technology and equipment that will be used at the venue. The failure of these tools can affect the events leading to reduced sales.
Worst-Case Risks.
The worst-case risks facing the business are the changes in the market condition and financial problems. If the company cannot raise the capital it needs, it may be unable to undertake the various aspects of the business plan. On their part, market risks can hurt the performance of Aurea’s Corporate Events Center.
References
Danziger, N. P. (2018). Will a booming economy bring a wedding market boom? Not likely. Retrieved from https://www.forbes.com/sites/pamdanziger/2018/02/17/will-a-booming-economy-bring-a-wedding-market-boom-not-likely/#3269c1bf4270
Events Industry Council. (2018). Global Economic Significance of Business Events. Events Industry Council. Retrieved from https://www.eventscouncil.org/Portals/0/EICDocuments/OE-EICGlobalMeetingsSignificanceFINAL2018-11-09-2018.pdf
Haddix, J. (2018). Meeting and event industry trends for 2019. Retrieved from https://blog.cvent.com/events/event-experience/event-industry-trends/
Higgins, R. (2019). 2019 event statistics and what they mean for your events. Retrieved from https://www.eventbrite.com/blog/event-statistics-ds00/
Menegus, D. W. (2018, October 3rd). Meetings & Events Future Trends Report Predicts 2019 Market Increase . Retrieved from Corporateeventnews.com: https://www.corporateeventnews.com/news/meetings-events-future-trends-report-predicts-2019-market-increase
World Population Review. (2018). Virginia Population 2018. Retrieved from World Population Review: http://worldpopulationreview.com/states/virginia-population/
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