BLUE WATER COTTAGES

1. INTRODUCTION

This report has been made to fulfill some material objectives of the Complex named as “Blue Water Cottages”. As every business has some targets and objectives, accordingly this business also contains some significant targets as well. The major objective of the report is to investigate and an analysis whether Shelley’s current properties might provide some insight into the type of property they should be considering purchasing. Moreover, this report will also investigate the capacity of the complex in relation to profit. The owner of the complex is concerned to see how much popular his business near the Kennett River Melbourne as compare to other cottages in terms of their night rates, profitability, and popularity. She is running this business with three cottages and is managing the business individually. Currently, there is big demand of travelers for cottages and these three cottages are not meeting the demand so Shelly is looking forward to purchase a new cottage to meet the current demand of the customers. Shelley is concerned to know about the possibilities and suggestions that are based on profitability.

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2. Analysis of Profitability and Popularity

Sr No.	Cottages		Revenue	Percentage of total Revenue of each cottage	Total No of nights	Average Nightly Rate
1	Sea view	$ 31,325.00		45%	104	$ 301.20
2	Sea spray	$ 27,353.00		39%	146	$ 187.35
3	Garden view	$ 11,435.00		16%	77	$ 148.51
	Total of All Cottages	$ 70,113.00

i. PROFITABILITY AND POPULARITY

There is tough competition between cottages in this areas, every competitor is trying to establish its business in a huge way by using different marketing and management techniques, incentives, communication and pricing tactics to earn the business of this area. As per bookings, revenues summary of each cottage, Seaaview is the highly revenue generated cottage of the complex. This cottage is attracting more and more customers. The popularity of this cottage will also high due to the fact that it is gaining high percentage as compare to other cottages of “Blue Water Cottages”. To review and compare the rates, an analysis has been developed on the basis of data available over websites of competitors.

One of the big marketing tactics of the competitive areas is pricing. The prices of Blue water Cottages is high as per the above table than other properties of those areas. This small but realistic comparison can be enhanced by adding and comparing rates with more and more cottages and factors other than rates and facilities. With this comparison, owner of the company can understand in which department she has to work to compete. The Blue water cottages are providing almost same facilities as compare to other competitors. The price of the product is based on direct and indirect cost as well the profit margin that Shelly is keeping and earning on weekly or monthly basis. The price of other competitors is low may be due to low profit margin and low raw material cost supplies. If it is the situation then Shelly has to reduce profit to increase sale and customers, indirectly her profit margin will be the same or may be high with more customers and less profit margin. In this way, one thing will definitely increase and that is popularity.