mercy huts business plan

Mercy Huts Surf Retreat Business Plan August 2012 www.mercyhuts.com

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Business Plan

Mercy Huts Surf Retreat

August 2012

http://www.mercyhuts.com/


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Contents 1. Executive Summary

1.1 General Outline 3

2. Objectives 2.1 Vision 4 2.2 Mission 4 2.3 Core Value System 4 2.4 Moto 4

3. Business Profile 3.1 Business Overview 5 3.2 Trading Method 5 3.3 Unique Features 5 3.4 Target Market 5 3.5 Location 6

4. Product/Service Delivery 4.1 Description of Products/Services 7

5. Market Analysis 5.1 Competitors 8 5.2 Market Trends 9 5.3 Gap in the Market 10 5.4 Market Segments 10 5.5 Benefits Analysis 10 5.6 Centres of Influence 10 5.7 SWOT Analysis 11

7. Social Impact Analysis and Community Action Plan 12 8. Forecasted Sales and Profits

8.1 Sales Forecast 13 8.2 Incomings and Outgoings 13 8.3 Existing Customers/Investors 13

9. Management Experience 9.1 Directors 14 9.2 Social Impact Coordinator 14 9.3 Marketing and Community Relations Managers 14 9.4 Board Members 14

10. Marketing Plan 10.1 Sales and Marketing Objectives 15 10.2 Promotion for regions 15 10.3 Promotion for segments 16 10.4 Promotion to database 16 10.5 Media Activities 17

11. Production Plan 11.1 Production Objectives 19 11.2 Project Timeline 19 11.3 Production Strategies 20 11.4 List of Development Projects 20 11.5 Material Requirements 21 11.6 Labour 21 11.7 Overhead Requirements 21



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Executive Summary

1.1 General Outline Mercy Huts Surf Retreat was established in January 2012. Mercy Huts Surf Retreat exists to benefit local people living in poverty in Indonesia through the provision of education, employment and financial aid. This will be achieved through the development of beach-front Surf Retreats that delight holiday-makers yet give back to the local community. We believe in promoting human rights, preserving the environment, and helping create a sustainable, community-based tourism industry. The first of these Surf Retreats will be located on Nemberala Beach, Rote Island, Indonesia.



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Objectives 2.1 Vision To establish an eco-friendly beachfront Surf Retreat that will provide financial support, employment and training in hospitality and tourism for families living in poverty.

2.2 Mission Mercy Huts is a Surf Retreat that offers an authentic island surfing holiday that delights holiday-makers, provides opportunity for local community engagement and promotes responsible tourism. Ultimately we exist to empower the locals through education, employment and financial aid of established indigenous aid organizations such as Rote’s Children’s Home run by Mercy Indonesia - helping some of Indonesia’s, and most likely the world's, poorest people groups.

2.3 Core Value System We exist to serve and empower the local communities of Indonesia and help break the poverty cycle in the areas we reside. We stand for human rights, preserving the environment, and creating a sustainable, community-based tourism industry.

2.4 Moto

Enjoy A Holiday Of A Lifetime… That GIVES BACK For A Lifetime…



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Business Profile

3.1 Business Overview Mercy Huts is in the business of helping the less fortunate through the provision of education, employment and financial aid. Our focus is on the country of Indonesia with our pilot model being in Nemberala Beach, Rote Island, a province of West Timor, Indonesia. Our model for achieving this outcome is through firstly integrating with the local community, identifying the greatest needs and then rolling out an education system that supports these needs and empowers the locals with employment and financial aid. Mercy Huts will build a Surf Retreat that hires local villagers for labor and to run the facility plus establishes a training centre for education primarily in the fields of tourism and hospitality. Our goal is to minimize the cultural degradation that frequently ensues with the introduction of tourism to primitive communities: prostitution, drugs, the homogenization of culture and loss of local language and customs. These are common byproducts that ensure when an economic need to appease visitors overrides the rights and interests of locals. We want to help positively impact the emerging tourism industry for the locals. All profits generated by Mercy Huts Surf Retreat in Rote will go towards supporting families in poverty including a nearby Children’s Home, plus other community activities that promote capacity building in the local community. Our product is unique in its position as a not-for-profit Surf Retreat that exists to help the less fortunate.

3.2 Trading Method Mercy Huts is trading as an Incorporated Association (NSW, Australia) during the fundraising phase of the building project. A PT or PMA Company will be set up in future.

3.3 Unique Features We can be the best in the world at: Positively affecting tourism outcomes for the people of Indonesia through sustainable beach-front Surf Retreats that focus on education, employment and economic provision for locals. Promotion of Unique Features

- Enjoy a tropical holiday that gives back to the locals and promotes responsible tourism - Surf uncrowded world-class breaks, dive pristine reefs and charter fishing boats whilst

supporting true need rather than Surf Retreat chain excess. - Know your holiday supports families break the poverty cycle through education and

employment

3.4 Target Market

Surfers (25-55yr old males)!

Families seeking adventure

Groups of Surfing mates

Young active couples Our target markets Problem

Hard to find uncrowded Indonesian-quality surf breaks

Can’t find family-friendly, affordable holiday destinations that accommodates wives and children

Sick of crowds and excessive tourism, after an authentic surfer-bungalow experience with consistent waves catering for short and long-boarders.

Want a romantic adventure with promise of seclusion and option of surfing


http://www.theinertia.com/business-media/drugs-meth-and-hawaiian-surf-culture/


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What are their needs? An authentic and uncrowded surfing holiday experience for the group of surfing mates, couple or family-man that also promises enjoyment for women and children.

3.5 Location

Rote island is 500km North west of the Australian coast and is the closest Indonesian island to Australia. Geographically, Rote Island has a mixed terrain ranging from beautiful unspoiled beaches combining world-class surf breaks, pockets of lush tropical rainforest, savannah’s and rolling hills ending in sheer cliff. It sits just southwest of the larger island of Timor and is already known by a few surfers who are doing their best to keep this piece of paradise a secret. Due to its independence from Eastern Timor in 2002, Rote has kept well away from tourism. We would like to help keep it this way for as long as possible which is why we are limiting this opportunity to friends of Mercy Huts.

Rote Island is home to the infamous area called T-Land, the emerging gem of world class surfing. T-Land lays claim to having one of the greatest left-hand waves in Indonesia right off the white sands of Nemberala Beach.

A one and a half hour flight from Bali will get you to Kupang, the capital of West Timor. From Kupang a daily ferry runs down to Rote. See maps below

Medical facilities The nearest hospital of any repute is in Kupang, however there is a small hospital on Rote Island with a doctor at hand plus a Medical Centre in Nemberala. The hospital is in Ba’a, about 37 kilometres from Nemberala Beach. In case of extreme emergency an aircraft runway is located on the island allowing people to be airlifted out (medivac) for emergency hospitalisation and treatment.


http://www.mercyindonesia.com/indonesia_map.htm

http://dreamsurftrips.com/

http://dreamsurftrips.com/indonesia/

http://www.bakosurtanal.go.id/bakosurtanal/assets/News/peta_dinding/


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Product/Service Delivery 4.1 Description of Products/Services The major service that Mercy Huts sells is beach-side holidays that offer a unique surfing experience as well as the opportunity to integrate with the local community. A by-product of this service offered to holiday-makers is the ongoing provision of community-determined education and employment.

Product Description Market

Surfing Holiday Enjoy world-class, uncrowded, long surf breaks with your mates

Male surfers aged 25-55yrs. Groups, fathers, husbands/boyfriends alike

Family-friendly adventure

Affordable, safe, family-friendly holiday that accommodates women and children. Provision of a kids program, sports, water activities and relaxation for mum.

Young family that enjoy adventure and heading off-the-beaten-track. Dad surfs, wife and children enjoy snorkeling, relaxation & community-based activities.

Surfing Groups Offering an authentic surf hut experience shared amongst younger surfing mates or ‘long-boarding legends’. Promise of quality, uncrowded, soft-underfoot waves accompanied by boat trips to other islands, plus the option of fishing charters.

Surfing mates 5-12ppl shared accommodation.

Young Couples He &/or she surfs, enjoys pristine beaches, private islands, diving and brilliant sunsets

Young couples that enjoy the surf and adventure.



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Market Analysis

5.1 Competitors

The not-for-profit stance of Mercy Huts positions it as unique in the industry. Mercy Huts focus on education and employment that will empower the locals, its green commitment plus its promotion of responsible tourism also sets it apart from other accommodation options on Rote Island. The most competitive long term markets for Mercy Huts to concentrate on are male surfing groups aged 25-55yrs.

COMPETITOR MERCY HUTS Nemberala Beach

Surf Retreat Malole - Rote Surf House

Lualemba

Accom Price $250/night ($50pp/night)

Twin/Double/Single Share: Surfer: $190pp/night Single: Surfer: $275 pp/night Island excursions/snorkeling $20, fishing trips $75

? $40-60/night includes meals and boat ride

Product 6x6 person Lumbung Huts Family-friendly appeal & activities Restaurant – bfast included NFP, boat ride?

4 x duplex 2person bungalows Buffet restaurant & bar – 3 meals incl, massage, boat, transfers, bike hire, games room, volleyball,

Main House: 2 stories with 2 rooms, private bathroom Guest House: 2 rooms, shared bathroom, house max 10ppl total fans, restaurant and bar, bike hire, TV

5x2person bungalows, boat ride, 3 meals, bike/motorbike hire,

Quality Med-High High Low-med Med

Communication Skills

Excellent Excellent ? Excellent

No. of Staff 2? 5? ? 5

Primary Medium

Word of mouth, web, facebook, email,

Word of mouth, web, reviews nemberalabeachsurfretreat.com

Word of mouth, Web www.rotesurfhouse,com

Word of mouth, print, web http://lualemba.com

COMPETITOR Hotel Anugrah Rote Island Lodge T-Land Surf Retreat Oengautt Villas

Accom Price $15-30/night? $80/night $2000/week ? ?$1000 holding deposit

Product ?12x2 person rooms, 3 meals – Indonesian cuisine, boat ride,

2 x 2 bungalows, private bathrooms,

4 bungalows, 8 rooms (1-3ppl), fans, restaurant, transfers, internet, bike hire, unlimited boat rides, surfing photography, pool

4 private villas, 10ppl max, 2 bathrooms, min of 4 nights stay, AC, bike hire, boat rides transfers, 3 kayaks, snorkeling,

Quality Low Med-High High High

Communication Skills

Low - Mod Excellent Excellent Mod-high

No. of Staff 5 2? 5? ?3

Primary Medium

Word of Mouth Word of Mouth, web, Web www.t-landSurf Retreat.com

Web http://www.airbnb.com/rooms/481555



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5.2 Market Trends

What are the general market trends?

Description of trends and proposed strategies to take advantage of these trends?

Economy decline Promote the strength of the Australian dollar and appeal to hard-workers to ‘take a well-deserved break’ at a remote destination with their mates, family or partner

Seasonal variations

Australian colder seasons March-August is dry season for Rote therefore maximise marketing for these times. Wet season in Rote is November-March and therefore tourism is more scarce however Mercy Huts will budget and forecast for this, potentially offering discounts and enticing visitors with less crowded surf breaks and cheaper accom during these times.

Increasing awareness of Human rights, Responsible Tourism and Eco-tourism

Our stance of promoting human rights, preserving the environment, and creating a sustainable, community-based tourism industry is ‘sexy’ and topical and will make for great humanitarian stories and USP’s.

Increase in tourists to Indonesia (6% increase in tourist expenditure in 2011)

Australians continue to travel overseas in record numbers. Outbound travel by Australian residents was up 10 per cent to 7.8 million in 2011. New Zealand remains the top destination for Australians, but it is losing market share at the expense of Indonesia (Bali). The sustained and increasing value of the Australian dollar; growing international air capacity (particularly from low cost carriers in the Asia-Pacific region), and the robust Australian economy are expected to continue to provide favourable conditions for outbound travel in the near term. Australian’s are travelling overseas with Indonesia being one of the popular destinations. We will ride this wave of popularity with marketing emphasis on the superiority of the Australian currency against the US dollar; cheap flights to Bali and the closeness of our Indo neighbour.

Large Surfing Industry Worldwide There are over 10 million surfers (10% annual increases consistently over the last 5yrs) worldwide and a third of these are cash-rich, time-poor and hence potential tour clients. Most travelling surfers visit mainland destinations. Surf tourism has become a social phenomenon of sufficient economic, social and environmental proportions. The surf industry is predicted to grow to $13.24 billion by 2017. Tap into this primed, adventurous and enthusiastic target market and encourage remote locations for exclusivity, seclusion and sheer paradise.

Multi-activity and multi-demographic destinations more favourable for tourists

From a tourism development perspective, the trend is towards integrated ocean sports destinations which attract entire families as well as individual surfers. Trend increasing for surf group tourism opposed to individual surf travelers. Rote offers surfing, diving, fishing, SUP’s and kiteboarding to name a few. Maximise appeal to wider audiences including women and children by advertising these ocean activities plus surf groups.

Increases in negative impacts of tourism in undeveloped communities (http://www.theinertia.com/surf/surf-tourism-for-good-nicaragua/)

Indonesia’s Tourism Department recorded more than 13,703 child victims of sexual exploitation between 1972 and 2008. Our hope for visiting surfers is to leave an additive legacy, not just the micro-economies that the surf tourism industry leaves behind as mere compensation (vocations like ding repair, personal surf photos, rentals). For surf tourism to really give back, locals should reap a more equitable slice of the pie and administer surf tourism on their terms. We would like to focus on lightening Surfing’s Global footprint through awareness.



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5.3 Gaps in the Market Uncrowded surf breaks Affordable safe holiday accommodation for families Holidays with a purpose

5.4 Market Segments Within the total market, Live It Personal Fitness Builders Pty Ltd has identified several different types of customers with different types of selling needs. These types of customers have been identified as:

Surfers!

Families seeking adventure

Surfing mates

Young couples

Segmentation Parameters

Example of Possible Segments

Age Adult 25-55

Sex Male Female

Occupation Professional

Tradesman

Tourism

Family Life Cycle Single Male Married Couple

Family with children over 5yrs

Household Income

Over $40,000

Geographic Australia, New Zealand, America, Europe

Lifestyle Enjoy adventure, active lifestyle, travel, surfing, diving, fishing, exhilaration, socially responsible

Benefits Desired

Looking for an authentic surf holiday for the boys, couple or family. Uncrowded breaks, opportunity to relax, engage with community, know they’re giving back to a good cause and supporting responsible tourism

5.5 Benefit Analysis

Segment Primary Benefits desired by the segment

Surfers Uncrowded, consistent, quality waves

Families family-friendly, affordable holiday destinations that accommodates wives and children, option for community engagement and impact

Surfing groups authentic surfer-bungalow experience with consistent short-board and mal-friendly waves with warm hospitality

Young couples Want a romantic adventure with promise of seclusion and option of surfing

5.6 Centres of Influence The major centres of influence for Mercy Huts Surf Retreat are within tourism, surf industry and circles of social responsibility. In the future, efforts will be dedicated to focusing on:

Affluent Individuals who surf with interest in lifestyle investments

Surf Companies with large budgets for Corporate Social Responsibility



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Churches: Presentations in appeal for funding, holidays, mission treks

Rotary Clubs: presentations in appeal for start-up funding

Surfing Australia including promotion at Surfing Competitions and events

Government: Grants and young entrepreneurs awards

Social Media: promotion and creation of the Mercy Huts Story will utilize Facebook, Blogs and other virtual centres of influence.

5.7 SWOT Analysis

STRENGTHS

Last water-front land on main strip of Nemberala

Emerging Tourism in Rote World-class surfing breaks, diving and fishing Focus on Responsible tourism & giving back

Inexpensive land, building, labour Local connections eg. Mercy Indonesia

Matt strong language and cultural understanding Living on land for 1-8 months

Christian

WEAKNESSES

Non Indigenous Directors

Poor-moderate local language Moderate marketing and sales experience Lack of Resort management experience

Inefficiencies of remote Indonesia Poor maintenance or access to services Food availability and preparation difficult

Limited power supply

OPPORTUNITIES

Protestant religion and church involvement

Community Groups to enhance social impact Capacity building of locals eg. Education,

employment Financial provision to Children’s Home

Increasing tourism to Rote Riding on the back of other tourism activities by

neighbouring resorts and government personality Friendship with locals

Endorsement by surfing professionals, SMH, Tracks Magazine

THREATS

Corrupt government

Risk of exploitation as not indigenous Politics within local community and villages

Politics within Australian organisations following/interested in Mercy Huts

Inefficiencies inhibiting enjoyment of visitors Extra 1-2 days travel to Rote may deter visitors Risk of Ferry cancellations or delays in Kupang



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Social Impact Analysis and Community Action Plan Collaboration between Indigenous and Western teachers to optimise learning, provide high quality Surf Retreat experience and to promote contextualisation of education provided. Some subjects taught onsite at Mercy Huts Surf Retreat’s training room, whilst others in community venues such as local churches.

Teaching English To increase employment opportunities in the tourism and hospitality fields. Increase sense of community between locals and tourists.

Tourism fishing, diving, surfing, sports for kids program, childcare

Hospitality western cooking, cooking classes/workshops, management of restaurant and bar, kitchen hygiene

Agriculture Improve return of crops especially during regular times of scarcity eg. Wet season

Business Management

financial management/accounting and management skills for running a business, logistics and HR (ordering and people management), budgeting.

Health Safe and Beneficial tourism (drinking/drugs, prostitution, disparity of wealth, begging), healthy nutrition, hygiene, water, food preparation, smoking



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Forecasted Sales & Profits

8.1 Sales Forecast Start Up Capital Stage 1 = (Land acquisition and planning) = $70,000 Stage 2-6 = (building & landscaping) = $125,000 Stage 7 = (capacity building and staffing) = $30,000 Detailed Breakdown*

Huts x 6 ($10,000 per hut) Includes ensuite, septic , flushing toilet, running water, labour, $60,000

Tree House Bales x 3 ($1000 per Bale) $3000

Restaurant, kitchen and training room $8,000

Electricity Supply (generator) $1500

Landscaping (including fence) $8,000

Pool $15,000

Traditional fishing boat $7,000

Small Outrigger (surf runs) $3,000

Truck and motor bike (Moped) $9,000

Training and capacity building of locals $30,000

Leasehold on land (20 years) $66,000

Legals, business fees and administration $14000

$224,500

*Figures are predictions only and are subject to change.

8.2 Incomings and Outgoings

Income*

Expenses^

yr1 $21,000

Staff $4,200 yr2 21,000

Fuel $6,300

Laundry $2,000

Water $2,300

Rates $3,000

Profit

$42,000

$17,800 $24,200 * Income based on April - October seasons for 2 huts @ $200/night with Tree House Bales charged at $80/night at 50% occupancy rate ^ Expenses based on running 2 staff ($AU60/month per staff member) for season at 100% occupancy

8.3 Existing Customers/Investors Currently $30,000 Invested Key Investors Matt & Nat Thistlewaite = $8,000 Simon & Danielle Beaufills = $10,000 Michelle Wenham = $5,000 Zoe Brunton = $5,000 Shirelive membership = $2,400 Jacqui Baltyn = $500



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Management Experience

9.1 Directors

Matt and Natalie Thistlewaite Matt, a professional Fireman also possesses skills in building & landscaping. With over 30 visits to the country of Indonesia, Matt has acquired excellent knowledge of the local area, language and culture. With a lifetime passion of surfing combined with his cultural affinity, Matt can assist in the recruiting and training of local tour guides and retreat managers. The Thistlewaite’s have also owned and operated their own café which will serve them favourably in establishing the Retreat Restaurant.

9.2 Social Impact Coordinator Natalie Thistlewaite Natalie brings her professional experience in training Dive instructors as she developed her own Dive business in Fiji and can provide otherwise expensive tuition to the indigenous community in Rote. Natalie also has experience in Childcare and Children’s ministry with a passion for upholding social justice and empowering disadvantaged communities.

9.3 Marketing and Community Relationships Managers

Paul and Sally McMahon Sally Bray is an Accredited Exercise Physiologist with exposure to a broad range of vocations such as Program Director for a Health and Wellbeing company, exercise physiology, sales and marketing and children’s entertainer. Most fitting for this project was her 3 years experience in Global Aid Project Administration for Shirelive involving the promotion and generation of support for multiple global aid projects. Also with a personal interest in embracing an active lifestyle, surfing, travel and supporting Indigenous communities, Sally is passionate about bringing to life the vision of Mercy Huts Surf Retreat. Paul has enjoyed a lifetime of ‘riding sideways’, surfing, wakeboarding, skating and snowboarding (professionally). A shop-fitter detailed joiner by trade and currently a Project Manager, Paul offers his building and management skills to the construction of Mercy Huts. Experience in Ski Resort Supervision, Youth Sports Camps, Ambassador for Extreme Sports, Travel, Co-owning and marketing for a Snowboarding Apparel company ‘Semantics’, Paul has gained some great skills and networks which will support Mercy Huts Surf Retreat.

9.4 Board Members

Michael Devlin Michael as well as holding a longstanding relationship with Mercy Indonesia, has an interest in community development in poorer nations along with a personal interest in surf and travel. Mike is a true leader with considerable domestic and international experience across various industries including manufacturing, construction, building services, retail and franchising. During the last 10 years Michael has held roles as Chief Executive Officer for Gloria Jeans Coffees, Australian Aluminium Finishing Pty Ltd and as an Executive Director of Coresoft Pty Ltd. Michael holds a Bachelor of Engineering -Civil (Honours) from the University of Technology, Sydney and completed the Global Business Management programme at IMD, Switzerland. We are thrilled to have Mike as part of Mercy Huts team. Steve Pearce Steve is a qualified accountant and financial planner. His joyful disposition, heart for Indonesia and passion for the less fortunate makes him a delight to work with in ‘crunching numbers’ for Mercy Huts Surf Retreat.



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Marketing Plan 10.1 Sales and Market Objectives Mercy Huts Surf Retreat has sought various forms of advice surrounding sales and marketing. During the early stages of the project Mercy Huts has drawn upon the experience and expertise of professional designers, aid workers, small businesses, tourism staff and local knowledge from existing Rote Island accommodation owners. To optimize exposure, more resources may be needed to invested into professional advice. Currently in the fundraising phase, sales and marketing efforts are focused on generating funds to build the retreat. Nearing completion of the building project, efforts will shift from investors to holiday-makers and prospective visitors. Phase 1 – Fundraising To increase sales Single Donation Entice with holiday, share 1-on-1, ask

>$5000 Entice with longer holiday, go to corporate surfers, offer marketing space on website, raffle option, seek social responsibility budgets of established corporates, giving back to surf communities, offer free holiday to increase exposure

Large scale donation >$30,000 Lifetime mship/alumni, willable holiday stays, profile as testimonial on website, ? name on hut

Grants Approach government, UN, Opportunity International,

Phase 2 - Holiday Enlist tourism experts, e-commerce features

on website, marketing, humanitarian story in surf magazines, newspapers, blogs, offer free holidays to tourism reps and professional surfers in return for stories, testimonials and publicity, improve marketing profile via enlisting professionals to produce Video, website, photography, journal articles etc.

10.2 Promotions for regions Mercy Huts Surf Retreat has focused largely on the Sutherland Shire for promotion. Some of these targets include church circles such as Shirelive, friends and family, local surf shops, gyms and coffee shops around Cronulla, workplace presentations and some real estate businessmen in Stanwell Park area. Many visitors to Rote over the months of March-October 2012 have asked and shown interest in the Mercy Huts project and have requested to be kept informed. We hope for this interest to translate to investors and see great potential for those who have already visited and ‘fallen in love’ with Rote. Furthermore Paul and Sally McMahon have embarked upon a road trip along the South coast of VIC, and the full east coast of Australia over the months of May-November 2012 sharing about the project as the travel. They have shared formally and informally at Rotary groups, churches, Christian Surfers meetings, Surf Competitions, business people in the Surf and snow industries, friends and family. Greater focus on targeted corporate and organisations with generous social responsibility budgets is advisable due to the large investment goal required for the retreat establishment, rather than seeking many small-scale investments.



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10.3 Promotions for segments Mercy Huts Surf Retreat has not actively segmented their target market in delivery of audience-specific campaigns. Opportunities exist to do so and may involve presentations to:

Surf Lifesaving clubs

Boardriding Clubs

Christian Surfers

Diving Clubs or Shops

Fishing Shops

Churches (appeal to family engagement and opportunity for them to share an adventure and help/connect with a poor community)

Coastal Rotary Clubs

Life Groups for Young Couples to engage or consider for romantic getaway in future

10.4 Promotions to the database Mercy Huts Surf Retreat has currently (as at 17

th Aug 2012):

472 friends on Facebook

208 people on our ENews Database

Weekly blog postings alerted through Facebook Ways in which Mercy Huts Surf Retreat currently markets to this database:

Frequent Facebook updates (1-3 weekly), adding photo’s, creating the story, rarely asking for support but more using as a relationship building and awareness tool.

ENews updates ideally monthly featuring highlights, progress, asking for help.

Blogs every 1-4 weeks from on the ground in Rote. New ways to market to database:

Have an Insiders ENews released to significant donors of $500 or more to advise of progress in more detail.

Borrow &/or promote to other organizations databases such as Surf Clubs, Rotary Clubs, Board riders, Christian Surfers, ACCI, Opportunity International, Mercy Indonesia, PCYC, real estate agents, investors, Steve McKnight’s network?

Offer Free weeks holiday on Facebook to incentivize users to share around

ENews via chimpmail so more professional and people can subscribe on website

Offer social justice and community development stories via blog and ENews



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10.5 Media Activities Types of Media Activities aimed at the customer and influencers

Website General Information- clear, concise Text and Image testimonials of children and donors Video Testimonials of children/families in need Video Information about Rote, locals and Mercy Huts land and features E-commerce – donations Add supporters page Add links and partner sites

Face to Face Meetings Corporates – Surf companies, exporters to Indonesia, Real Estate and Investing companies, tourism businesses, surf travel businesses, Law firms (Immigration Lawyers eg. Katie Malyon) Organisations – Aid organizations eg. Opportunity International, Mercy Indonesia, Surfing Australia, SurfAid International, Surf Resource Network, Churches, social justice groups with interest in West Timor, Sanitarium and Cooking Safari’s Government - UN, Grants, Christian or community development Grants

Direct Mail Consider sending thank you letter with invoice for givers (? Should we obtain tax deductibility) otherwise autogenerate receipt via online giving

Computer Presentations To Rotary, Surf Clubs, Churches, Surf Magazines

Press Advertising Try for free social and humanitarian stories in Surf magazines, Newspapers

Sales Presenters Sally and Paul, Matt and Nat, Dan and Simon

Radio Advertising Hope103.2FM story on Mercy Huts

Flyers Donation Flyer, Poster for Surf Shops, Donations 3-fold brochure, DL Flyer (Holiday with a difference, can you spot it?), Design segment-specific Flyers (Surfers, Families, Boys trips, Couples),

Seminars Mercy Huts Launch, Arbonne Workshops, Property Conferences (MH as charity featured eg. Steve McKnights Mega Property Conf 2013).

Newsletters external Monthly ENews Insider ENews as needed

Press Releases ?

Leaflet Drops Possibly at Surf Comps, Nippers, around South Cronulla and Wanda.

Telemarketing No

Promotional Videos Yes on website, played at Churches or Rotary Clubs.

Business Directories Possibly Tourism directories

Other Promote to visitors to Rote

NB: Use the following list to help brainstorm ideas for our business

Direct Mail

Consultant's Newsletters

Personal Contact

Consultant's Reference Books

Press Advertising

Computer Presentations

Radio Advertising

Sales Presenters


http://www.surfaidinternational.org/

http://www.surfresource.org/

http://www.surfresource.org/


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Seminars

Brochures

PR Releases

Newsletters, internal or external

Exhibitions

Newspaper clippings

Cold Canvassing/Telephone selling

Leaflet Drops

Telemarketing

Sales Promotions

Business Directories

Slide Presentations

Information Disks

Promotional Videos

Other



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Production Plan 11.1 Production Objectives To build a surf retreat that offers ecologically and economically sustainable outcomes for the local community. The surf retreat will deliver a unique surfing holiday experience for visitors that has a distinctly indigenous flavor blended with Western influence. Offering genuine relaxation, mixed with adventure, thrilling activity along with opportunity for engagement with the locals who the retreat ultimately exists to support.

11.2 Project Timeline Stage One: Community Engagement & Land Acquisition - January-October 2012

Mercy Huts Surf Retreat team inhabit the land and establish relationships with the local community over a 7 month period. Consultation with key community members to determine their highest priority needs whilst learning the local dialect and better understanding the inherent culture and traditions. Secure the land (75mx36m + 75mx18m) via a 20 year initial lease. A deposit has been placed on the land with full payment requested in October 2012. Small additions to the land in the form of a Tree House Bale ‘Sun Hut’, a large garden, clay kitchen, outdoor shower and connection to power supply have been made during this time.

Stage Two: Planning - March 2013 Several drawings have been done of a two storey hut which will best suit a large family. The layout will be similar to the plan below with a double bed on the upper loft style room with two double bunks lower floor, an open air bathroom off the rear and deck area off the front. Once submitted to local authorities construction will begin in March 2013.

Stage Three: Construction - March/April 2013 We will be constructing two huts initially which will be available to stay upon completion of these huts and landscaping. Along with these two huts we will be constructing a small restaurant with additional Training room which will be functional in line with the completion of the first two huts. Envisaged cost is $10,000 for the construction of each hut to this standard. The restaurant will be converted from the existing hut, and with accompanying training room is predicted to cost $20,000. Power will be connected and additional underground septic tank to be installed. Water storage tank will be purchased and placed on top of the existing water tower/generator room. Estimated cost of $500 in



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total for both tanks. PLM electricity connection to be installed. At the same time we will be erecting a stone fence around the perimeter of the ‘Mercy Huts’ property as a measure of security, but foremost, to keep out the wandering wild life. The fence will require 400m of stone work which is estimated to cost $4,000. Stage Four: Landscaping - June 2013 At the completion of the two initial huts we will begin landscaping the grounds and depending on available funds construction of swimming pool and surrounds will begin. The pool is estimated to cost $15,000 while the landscaping consisting mainly of labour is estimated at $4,000. Stage Five: Training - July 2012 - October 2013 During these set up stages we will be actively seeking reliable local staff to take on and train in running of a small commercial resort establishment. Training will include business management, restaurant service, surf, fishing, dive guides and assistants. Room servicing, pool maintenance and garden upkeep will be addressed also. Other areas of training will include basic marine mechanical repairs, ocean safety and navigation. Stage Six: Construction of additional Huts - October 2013 – Depending on available capital work on remaining four huts plus Tree House Bale’s will commence. Stage Seven: Capacity Building Training of locals in tourism and hospitality to enable management of the resort. Commencement of other community action priority needs.

11.3 Production Strategies Mercy Huts currently has the following equipment & facilities: Premises/Operational

Land: size 75x40m + 75x20m (permission to build up to the fence-line)

1 x coral fence enclosing 75x40m land mass

1 x Hut (inclusive of bathroom, to be turned into Kitchen/Restaurant)

1 x TreeHouse Bale

1 x Outdoor Kitchen (to become Surfboard shack)

1 x Clay Cooking Stove

1 x Outdoor Shower

Large Garden with vegetables, banana plants,

Connection to the power grid

Generator

Inflatable boat with motor

Kijang Truck

Motorbike Mercy Huts Surf Retreat will upgrade equipment when lifespan is up or upon guest request and director negotiation.

11.4 List of Development Projects Some of the Future Development Projects for Mercy Huts Surf Retreat are listed below:

Restaurant and Bar

Training Room delivering education to locals, hireable to visitors and corporate groups

Surfing and Fishing Charters

Couples dining

Cooking Safari’s in alliance with John Menzies and Sanitarium

Kids Club

Surf and Diving School

Health Retreat activities such as pilates and yoga

Massage and Spa



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Community Initiated development activities

Chartered Yachts from Darwin to Rote

Weddings

11.5 Material Requirements Mercy Huts will consider the following material purchases in the coming years:

Motorbike (moped)

Outrigger boat and Fishing boat for Surf charters

Diving Equipment

Surfing Equipment including SUP’s

Volleyball Net, balls and sand court plus kids sports equipment

Spa set up such as towels, massage and spa products (eg. Arbonne)

Training room attached to kitchen for Cooking Safari’s, adequate kitchenware

Yacht donation

Wedding packages including celebrant, white linen and beach set up for ceremonies as well as honeymoon accommodation

11.6 Labour It is foreseen that Mercy Huts Surf Retreat will require just 2 full time staff upon beginning operation and with 2 Huts occupied 50% of the time over the months of April-October. Prior to opening the Retreat a team of local staff will receive extensive training in hospitality, tourism, English and management with a Western influence to ensure quality control for prospective guests. Wages for 2 fulltime staff will be approximately $AU60 per month.

11.7 Overhead Requirements Mercy Huts Surf Retreat overhead costs are comprised of the following:

Electricity

Cleaning (labour/supplies)

?Insurance

Security during off season

Marketing

Staff uniforms

Equipment maintenance

Equipment replacement/addition

Training & development (staff meetings & continued education of staff)


mercy huts business plan

Documents