Sandy Shores Cottages: A New Marketing Plan for a New Owner

Abstract

Sherry Noonan, a senior business student, was wondering whether she should make an offer to purchase Sandy Shores Cottages, a 2.4- acre property consisting of 19 rental units. The cottage property was located on Route 6 in the heart of Cavendish, a very popular tourist destination on Prince Edward Island, Canada. Before deciding whether to purchase the business, Sherry must carefully consider the marketing approach used by the current owners of the business, evaluate the strengths and weaknesses of the business, and consider areas for improvement. This analysis would then allow her to develop a new marketing strategy, and estimate future sales. In the most recent fiscal year, the cottage business had generated $221,236 in sales, and Sherry wondered if that was the best the business could do? What was the maximum amount of sales the cottage business could generate, and what was a realistic target level of sales for each of the next three years if Sherry implemented a new approach to marketing?

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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Resources

Appendix 1: The Canada Select Rating System

Canada Select is an industry-led rating program, developed to provide a national and consistent standard of quality within categories of accommodation. Canada Select inspects and rates all participating properties to ensure that they meet consumer expectations. Ratings are based on extent and quality of facilities, guest services, and amenities. Six categories of roofed accommodations are rated: hotel/motel, cottages, bed and breakfast/tourist homes, inns, resorts, hunting/fishing lodges.

Where the quality of facilities is superior, a property may be awarded a half star above its criteria rating, i.e., a 2-star property may warrant a 2.5 star rating, depending on the overall quality assessment. Each category and star level has distinct criteria that must be achieved. A star rating from (1 to 5, in half-star increments), is awarded based on the results of an evaluation. Each star level reflects specific consumer expectations.

Star rating

Description

1

Guests should expect clean and well-maintained accommodations, providing the necessary facilities for an enjoyable stay. Criteria includes standards such as room size, window screens and coverings, clothes storage, linens, door lock, smoke detector, and parking facilities.

2

This level equates to what is popularly considered “mid-range” accommodation. It exceeds the 1-star level in quality of mattress, bed linen, floors/window/wall coverings, and in provision of bedside and seating area lighting, additional room furniture, and parking space.

3

These properties will offer larger units with additional room furniture, coordinated furnishings, better quality mattresses and linens, and will be equipped with clock/alarm, extra amenities in washrooms, etc. Private baths for all BB rooms is a requirement for a 3-star and higher rating. Properties in this rating offer above-average facilities and services.

4

This rating indicates exceptional quality in all areas of facilities and services offering superior quality throughout the property in areas of guest rooms, bath and common areas. The property typically provides laundry/valet service as well as many additional amenities.

5

A 5-star property is luxurious at a world standard, offering outstanding facilities, guest service, and amenities.

Note: See: http://www.canadaselect.com/how-we-rate

Appendix 2: Other Accommodation Providers in the Cavendish Area

Property name

Description

Rates

Green Gables Bungalow Court: 2.5*

40 cottages on beautiful tree-lined grounds. Bed-sitting, one- and two-bedroom housekeeping bungalows. Kitchenettes and gas barbecues. Located beside Green Gables House and golf course. Excellent playground and heated pool. Ideal for families and golfers. Popular destination for families of all ages for 50 years. Walking distance to golf, restaurants, and shops. Walk, bike or jog to the beach and trails—less than 1 km by path through the National Park.

  • Daily rate: $65 to $145
  • Weekly rate: $655 to $980 (based on cottage type and season)

Cavendish Bosom Buddies Cottages and Suites: 3.5*

On Route 6, 1 km east of main Route 6 and 13 intersection. Ten modern, heated, spacious, well-equipped deluxe two-, three-, and four-bedroom cottages. Jacuzzi, dishwasher, microwave, skylight, gas barbecues, sun decks, laundromat. Deluxe efficiency suites with double jacuzzis. Large, well-equipped, safe play area. Panoramic view of ocean and sunsets. Golf course, beach, and other major attractions nearby.

  • Daily rate: $85 to $295
  • Weekly rate: $560 to $2,065 (based on cottage type and season)

Anne's Windy Poplars Cottage Resort: 4*

A 4-star, 5-acre estate of lush, green lawns, groves of trees, and spacious, modern, air-conditioned, two-/ three-bedroom housekeeping cottages, some water views. A five-bedroom house also available. Queen, king beds, microwaves, sofa beds, decks, whirlpools, dishwashers, fireplaces. Hot tubs, sauna, heated pool, room phones. CD, TV/VCR/ DVDs, fax, high speed internet, barbecues, laundromat, fitness/games rooms. Playgrounds. Baby-sitting. Beach, golf, fishing, Green Gables nearby. No pets. Golf, Romance, Family packages. Relaxing family vacation.

  • Cottage: Daily rate: $199 to $269
  • House: Daily rate: $279
  • Suite: Daily rate: $159

Anne Shirley Motel and Cottages: 3*

Clean, spacious one- and two- bedroom units, queen beds, ideally located. Play area, hot tub, gas barbecues, cable TV, picnic tables, cribs, daily maid service. Ocean beach, 800 m. Path to Green Gables. Golf, shopping, churches, jogging trails, attractions nearby. Dining room, one block. No pets. AE, MC, V accepted.

  • Motel: Daily rate: $72 to 1$45 (2), $9 additional person
  • Cottage: Daily rate: $110 to $149 (2), $9 additional person

Bay Vista Motor Inn and Cottage: 3.5*

Featured in Fodor's, Bay Vista is in the ideal location to fill your vacation with the best of golfing, swimming, hiking, shopping and relaxing. Enjoy your free continental breakfast, our spacious decks, heated outdoor pool, with rooms full of amenities you would expect, like internet, microwave, mini-fridge, and air conditioning. Great panoramic countryside water views. Cottage: one hsk unit, one B&S.

  • Weekly rate: $1,390 (1–4), $40 additional person
  • Off season rates also available

Cavendish Fairways Cottages: 4*

In the heart of pastoral Cavendish. Heated pool and kiddies' pool. The Boardwalk passes the entrance to Fairways Cottages connecting you to the National Park trail system. Minutes from beaches, attractions, restaurants, shops, bike rentals and six golf courses. Cottages are distinctly different with 10-ft. high or cathedral ceilings. Play areas, volleyball, horseshoes, laundromat. All have queen beds, propane barbecues, remote control colour TV/VCR's, electric heat, fridges, stoves, microwaves, large decks. Most with whirlpool bathtubs, electric fireplaces, dishwashers. Romance, Family and Golf packages offered that are customized to suit individual needs. Cottage – 10 hsk units.

  • Daily rate: $135 to $235 (1–4), $7 additional person
  • Weekly rate: $900 to $1,500 (1–4)

Kindred Spirits Country Inn and Cottages: Inn 4*, Cottages 3.5*

Spacious estate beside Green Gables House/golf course, 800 m walk to Cavendish Beach. A beautiful 6-acre, year-round family resort. Luxurious modern amenities of a full service inn and housekeeping cottages. A place of relaxation and serenity amid the towering maples, white picket fences and gardens. Cottage – five hsk units, 5 B&S, 5 Cable TV/VCRs. Executive chalet – six hsk units. Six B&S, two jacuzzis, six cable TV/VCRs.

  • Cottage: Daily rate: $175 to $245 (1–4), $15 additional person.
  • Executive chalet: Daily rate: $95 to $245 (1–4), depending on unit and season, $15 additional person
  • Weekly rates available. No additional charge for children

Shining Waters Country Inn and Cottages: 4*

Fully equipped family resort with executive and luxury housekeeping cottages and a 13- room country inn with five luxury suites. Beach, 500 m. Playgrounds, two heated pools, basketball, volleyball, badminton and exercise room. Cable TV, movies, laundromat, decks and gas barbecues. Heated, air-conditioned, dishwashers. Two BR executive cottages have laminate floors and three BR luxury cottages have hardwood floors and fireplaces. Close to Green Gables House, golf, tennis and all Cavendish attractions. Directly across from Visitor Information Centre. No smoking. No pets. Golf, Romance, Anne and Adventure packages. Restaurant on site. Open May–Oct.

  • Daily rate: $95 to $290 (1–4)
  • Preferred rates and off-season rates available
  • Weekly stays only in cottages in high season

Sundance Cottages: 4*

800 m east of Cavendish. Safe, peaceful setting. Modern, spacious, air-conditioned, well-decorated two- and three-bedroom cottages. Complete kitchens, dishwasher, remote-control cable TV/DVD, phones, queen-size beds, some with whirlpool tubs and propane fireplaces, picnic tables, barbecues, decks with ocean view. Play area, heated pool, hot tub, fax, wireless internet, laundromat, meeting room, mountain bikes. Minutes to beach. Romance/Golf packages. Fodors Guide favorite for four years running. Deluxe cottage – nine hsk units. Twelve B&S. Nine cable TVs.

Daily rate: $215 to $250 (2–4), $8 additional person

Swept Away Cottages: 3* and 4*

Eleven acre property with six cottages; hot tub, sauna, and heated pool. One-, two-, three- and six-bedroom units available. Hiking trails and easy access to miles of sandy beach. Private deck with splendid views of spectacular countryside. Cottage – six hsk units. Six B&S. Six TV/VCRs.

  • Daily rate: $235 to $260 (1–4)
  • Weekly rate: $1,500 to $1,700 (1–4)

Cavendish Country Inn and Cottages: Cottage 3.5*, Bed and Breakfast 3.5*, Hotel/motel 2.5*

Quiet country setting. Family-oriented, ocean-view property. Deluxe and executive one- to four- bedroom cottages; fully equipped kitchens, BBQs on decks, Executive cottages include king-size beds, whirlpools, propane fireplaces, dishwashers. Motel and inn rooms available. Two heated pools, two hot tubs, shuffleboard, ring toss, horse shoes, volleyball, basketball net, fire pit, laundromat, and complimentary movies.

  • Cottage: Daily rate: $139 to $350 (2–10), $10 additional person
  • Bed & Breakfast: Daily rate: $79 to $169 (2)
  • Hotel/motel: Daily rate: $139, $10 additional person

Cavendish Lodge and Cottages: 2.5*

Recently renovated, electrically heated two-/three-bedroom housekeeping cottages with double beds, sofa beds, microwaves, propane barbecues, patio decks. Safe play area, pay phone, laundromat on premises. Catering to families. Centrally located for shopping, dining, recreation. Sorry, no pets. Minimum two-night stay in July/August and holiday weekends. Cottage – 15 hsk units. Eleven B&S, four S. Fifteen TVs.

  • Daily rate: $115 to $160 (1–5), $10 additional person
  • Weekly rates also available

Dreams To Sea Cottages: 3.5*

Modern two-bedroom deluxe cottages with a panoramic view of Cavendish, the PEI National Park, and white sand beaches. With queen, double, twin and sofa beds, each cottage sleeps up to seven. All have ocean views, gas barbecues, and fully equipped kitchens with microwave and dishwasher. Some whirlpool tubs and satellite. Propane fireplaces. TV/VCR/DVD, bonfire pit, large play areas, bicycle rentals, and more. Outdoor hot tub. Games, toys, books and large video/DVD library. Golf, Family, Romance, Adventure, and custom packaging available. Monthly rentals available.

  • Deluxe cottage: Daily rate: $160 to $175 (1–4), $10 additional person.
  • Weekly rate: $1,020 to $1,120 (1–4), $60 additional person

Hidden Acres: 3.5*

New, spacious, quiet, well-decorated executive cottages. Fully equipped two-bedroom cottages: queen-size beds, whirlpool tub, microwave, dishwashers, sofa beds, coffee-makers. Also two-bedroom cottages with two bathrooms and fireplaces. Decks overlooking play areas, volleyball, basketball, barbecues, laundromat, heated pool. Golf, shopping centre, family attractions nearby. Cavendish Beach, 2 km. No pets. Cottage – 12 hsk units. Eighteen B&S, two S (eight whirlpools). Twelve cable TVs.

Daily rate: $140 to $210 (1–2), $8 additional person

Lakeview Lodge and Cottages: Cottages 3.5*, Hotel/motel 2.5*

Beautiful landscaped grounds, located in the centre of Cavendish. One- and two-bedroom housekeeping cottages, motel rooms, suites, some air-conditioned. Heated outdoor pool, whirlpool. Playground, laundromat, barbecues. No pets. Walk to Cavendish main beach (800 m) or to Green Gables, Avonlea Village, Family Fun Park, shopping and restaurants. Adjacent to Green Gables golf course and National Park walking/cycling trails. Golf and Family packages available.

  • Cottage: Daily rate: $109 to $167 (1–4), $8 additional person
  • Apartment: Daily rate: $151 (1–4), $8 additional person
  • Lodge: Daily rate: $135 to $150 (1–4), $8 additional person
  • Motel: Daily rate: $91 to $137 (2), $8 additional person

Stanley Bridge Country Resort and Conference Centre: Country Inn 4*, Cottages 3.5*, Lodge 2.5*

Picturesque resort on a hilltop overlooking the New London Bay, Stanley River, and the Cavendish dunes. On 12 acres of landscaped property, 5-minute drive to Cavendish, and minutes away from the National Park, adventure parks, entertainment and six of the Island's finest golf courses. Outdoor heated pool, fitness and games room, outdoor pavilion, bonfire and playground. Sixteen executive cottages have pine- finished interior with open beam ceilings, fully equipped kitchens, full bathroom, private decks with barbecues, televisions, clock radios and coffee makers with complimentary coffee and tea. Inn has 28 rooms in a four-story building. Lodge has 10 housekeeping units with a shared deck and barbeques. Bachelor, one, and two bedroom units available.

  • Executive cottage: Daily rate: $109 to $269
  • Inn: Daily rate: $79 to $189
  • Lodge: Daily rate: $59 to $169

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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