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
Number of Companies in the industry Customers Profitability

$70B for wedding industry Very few large companies

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

Competition
TheKnot.com, WeddingChannel.com, ModernBride.com, WeddingNetwork.com
SITES WeddingChannel.com TheKnot.com % Of Respondents Visiting 37% 35%

ModernBride.com
WeddingNetwork.com

34%
23%

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 Revenue 234,000

Year 2 320,000

Year 3 800,000

Year 4 1,600,000

Year 1 Net profit -237,580

Year 2 -178,547

Year 3 8,106

Year 4 359,342

Year 1 Equity capital needed Borrowing anticipated 440,000 0

Year 2 50,000 25,000

Year 3 0 50,000

Year 4 0 -5,000

Year 1 Total debt Total equity 2,268 202,420

Year 2 28,102 73,873

Year 3 57,756 81,979

Year 4 10,511 441,321

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.