Analyzing Commercial Real Estate Development Plan a Sports ComplexBusiness Proposal

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Commercial Real Estate Development Plan: A Sports Complex

Services and Facilities

Due to a lack of a properly maintained facility in the U.S., more specifically in DC, Virginia and Maryland region, children are unable to learn and/or even play field hockey. The current state of the structure in use is poor, lacks quality, and is unable to provide children, their parents, or college graduates a true sporting experience. Furthermore, no facilities offer healthy snacks or even fast food to people (Coates & Humphreys, 2003).

The proposed facility will be a complete sports complex that will provide the following for Children, their parents, and any/all participants in the Maryland region, • The sports complex shall be based in Maryland

• The complex will provide better sports equipment, superior training and education

• The complex will train in lacrosse, soccer and field hockey

• Revenue will be generated via membership fees, summer camp fees, children soccer events, field rentals and/all sporting event fees.

• The sporting complex will house proper changing rooms, patio that opens to a soccer and turf field, a central clubhouse, a restaurant, an indoor gym with enough facilities for around the year training. (Rolnick and Grunewald, 2007).

• As a future ambition, the complex will try to add a track around the soccer field with the aim of generating more revenue. This revenue will come from events like track meets, track training for college students and even complete tutorial packages on how to be successful with an athletic scholarship.

• To make the facility convenient and easy to access, a parking lot will be constructed near the sport's complex.

• The complex will comprise of one outdoor grass field, one turf field and indoor field around a centrally-based clubhouse.

• The restaurant will overlook the fields.

• The complex will have a well trained staff that will train and motivate players to achieve higher levels, and pursue a healthy lifestyle. (Coates & Humphreys, 2003)

All the aforementioned facilities are to create a conducive and relaxing environment for parents, their children, friends, and anyone taking part in sporting and gaming events. This complex will augment a sense of community and camaraderie for everyone. The complex will not only aid young players train better for colleges but also give them a sense of pride and prestige being a part of the club. The proposed plan encompasses everyone's needs and wishes under a single plan.

1.3. Substantiation of Issues and the Proposed Solution

The business model that will cater to this problem and further cement the potential success of the solution is based on five elements. Each element aims at providing services and a platform for high school, emerging and college hopeful athletes categorically. The complex will be a haven for anyone who wants to play; the aim is to keep the community active and focused on field hockey. The structure will provide off season training, professional coaches, A-grade equipment to really push the sporting ability of players to the next level and create and a sports-friendly environment for older members of the community. A Professional sports continue to grow more selective, at this time, being fit and at the top is essential. (Coates & Humphreys, 2003). Forming groups and holding friendly competitions between them will really make the more talented players shine and rise to the top of their game.

2.Market Segmentation: Target Market Strategy

The "focus market" for this project can be broken down as follows:

• Children; aged 3-18 in the DC, Virginia and Maryland region.

• The target age group constitutes 70% of sport participation in the U.S.

• Both sexes are targeted in this proposal

• Boys form 65% of children that play sports

• Field hockey starts roughly at the age of 11, in lieu of this fact, it will be easier to keep children coming and loyal to club and it's complex from an early stage.

• Scholarship potentials will be attracted to a place where practice and training can take place year round. The college aged group and high school athletes will also form a part of the target demographic.3.Plan, Strategy and Execution Summary

3.1. Marketing Blueprint

The marketing plan is spread across the following points:

The proposed sports complex is going provide structure to the sports playing factions of the community from the young to the older participants.

The complex will be home to a soccer field (eventually) surrounded by a track, indoor gym, as well as a smaller playground to cater everyone's needs. Families will greatly cherish this complex.

Children, parents, adults and young adults can train competitively and in an excellent environment.

Parents can participate on the field, learn the sport or support their children from the stands.

In the presence of a great restaurant and other facilities, the complex is a place for everyone which gives it an excellent socializing potential. The restaurant can also be expanded with an increase in clientele to cater to a larger number of guests.

The grounds can be rented out for games, events, parties, to catering companies, high schools, colleges and the men's lacrosse teams, as it is a growing market that can utilize the fields (Rolnick and Grunewald, 2007).

3.2. Sales Strategy

The sales approach will be based upon the concept of "Product Differentiation." The complex is going to offer a myriad of services like, • Educational sessions for parents and children alike

• Great in-houses coaches and training courses throughout the year

• The complex will aim to bring a complete sporting solution by bringing sports, gym and training under the same roof. It will make it very easy for the public and they won't have to go from location to location.

3.3. Pricing Plan

Since the services being offered follows a "differentiation plan" the pricing will be done according to a "best cost provider approach." Large membership fees will not be charged, the pricing will be good balance between value and services. The maximum rate is stipulated to be $4,000 for high school age students, since they would require the maximum usage of the complex for college scholarships. Since the demographic near Washington DC has an average higher disposable income (Asselin, 2006) the rates charges will be higher in comparison to Pennsylvania. The complex will be made affordable to both middle and rich-classes, by focusing on education, coaching, enrichment and the overall experience rather than on fees alone.

3.4. Promotions and Publicity

The planned publicity will engage the target market and show them what the complex can offer. The promotional activities will include but not be limited to kindergarten, primary school, middle schools, high schools and community meets, since Maryland counties work on a very strong community base. Social Media (Urban DC mum network), flyers, newspapers, community newsletters and contracts with high schools will be utilized (Rosentraub, 1997; Szymanski, 2010).

4. The Organization

4.1. Company Structure

The following structure and roles will be implemented in the management of the project

• Chief Executive Officer

• Chief Finance Officer

• Chief Operating Officer

• Marketing Specialist

All personnel will possess extensive background/knowledge in sports for an efficient and effective management of the complex.

4.2. Employee Recruitment Strategy

All personnel hired on the complex will have both knowledge and experience in the field of athletics and/or coaching. Coaches and key figures will be top tier in the U.S. sports community. The availability of quality labor is very high and high schools, colleges and sports teams are excellent places to head hunt for potential managers (Szymanski, 2010). The trainers will be mix of older coaches and young graduates to assist young talent.

5. Financial Model

5.1. Sales Forecast

The annual membership rate is between $1,000 and $10,000 a year, per child. This provides a very broad spectrum and since the complex will close to the DC area the charge of $4,000 will cover expenses, bear profits while maintaining the true spirit, purpose and mission of the complex. The complex will have an impression of being tailored more towards the middle class. Four-day summer camps will cost $600 per child (Santo, 2007). Employees too will be paid accordingly in the camps, earning $600 for the duration. Competitor summer camps will be set up; the aim is to have four camps with almost a hundred people every summer. According to this plan, twenty camps will be organized, catering to both sexes, offering, three different sports and generating $42,000. One coach earning $600, will be assigned to ten players (Asselin, 2006).

5.2. Expenses

For the construction and a three-year management plan of the sports complex, an amount of six million is required from investors. The founders are recent college graduates with funds equivalent to only $50,000 (Santo, 2007).

5.3. Profit and Loss Projections

The estimated income in the first year is $3,290,000, with fixed yearly expenses of $309,000. Salaries will amount to $31,970. The net income after tax payments, mortgages and other such expenses will be at $78,631 for the first 27 years, $316,000 for the… [END OF PREVIEW]

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