Oasis Onsen Case Study
Oasis Onsen of Hawaii (ooH)
Golden Ratio Capital Associates
March 2012
Table of Contents
I. Executive Summary 1
II. The Business Organization 3
A. Company Overview 3
B. Organizational Structure 5
C. Legal Ownership Structure 6
D. Special Laws & Regulations 6
III. Market/Business Environment (Onsen Only) 7
A. Market Opportunity Analysis 7
B. Target Market 9
C. SWOT Analysis 10
IV. Marketing, Sales and Distribution 14
A. Products 14
B. Place (Operations and Distributions) 16
C. Price 18
D. Promotional Mix 19
V. Finance and Accounting 21
A. Cost of Doing Business 21
B. Sources of Funding and Financing 22
C. Pro Forma Income Statement 23
D. Pro Forma Cash Flows 24
E. Breakeven Analysis 25
VI. References 26 …show more content…
Oasis Onsen aims to bring back the pure beauty and joy of the Japanese onsen to Hawaii.
c. Vision Statement The vision of Oasis Onsen is to be one of the first “places” people turn to when they are in need of stress relief and rejuvenation.
d. Short Term Goals Golden Ratio Capital Associates plans to have stabilized income and cash flow of Oasisn Onsen by the end of year 1. Month 12 net income and cash flows are estimated to be $61,000 and $51,000, respectively. Full year net income and cash flows for Year 2 are estimated to be $740,000 and $730,000, respectively (before full loan prepayment and any equity distributions).
e. Long Term Goals GRC plans to maintain and protect its position as the unique market leader for the traditional onsen experience. At the end of year 5, GRC intends to perform a refurbishment of the facility and will create two more regular membership pools. Towards the latter part of this plan period, GRC may consider opening another onsen on either the neighbor island or another part of Oahu.
f. Exit …show more content…
This program will allow any customer to get 25% off, on a massage if they purchase a membership lasting one month or longer. Another implication Oasis Onsen plans to initiate is ”Weekday Paradise”. Weekday Paradise is a program that takes place Monday-Thursday that allows Hawaii customers to get 10% off, on a massage if they purchase a daily onsen service. Weekday Paradise is Oasis Onsen’s way of attracting potential customers on weekdays because our surveys claim that 58% plan to use our services primarily on Fridays-Sundays (according to the survey results). Oasis Onsen’s final way of sales promotion is the loyalty program, which will show the most promise while Oasis Onsen is in the growth stage because it will encourage our members to stay with
Golden Ratio Capital Associates
March 2012
Table of Contents
I. Executive Summary 1
II. The Business Organization 3
A. Company Overview 3
B. Organizational Structure 5
C. Legal Ownership Structure 6
D. Special Laws & Regulations 6
III. Market/Business Environment (Onsen Only) 7
A. Market Opportunity Analysis 7
B. Target Market 9
C. SWOT Analysis 10
IV. Marketing, Sales and Distribution 14
A. Products 14
B. Place (Operations and Distributions) 16
C. Price 18
D. Promotional Mix 19
V. Finance and Accounting 21
A. Cost of Doing Business 21
B. Sources of Funding and Financing 22
C. Pro Forma Income Statement 23
D. Pro Forma Cash Flows 24
E. Breakeven Analysis 25
VI. References 26 …show more content…
Oasis Onsen aims to bring back the pure beauty and joy of the Japanese onsen to Hawaii.
c. Vision Statement The vision of Oasis Onsen is to be one of the first “places” people turn to when they are in need of stress relief and rejuvenation.
d. Short Term Goals Golden Ratio Capital Associates plans to have stabilized income and cash flow of Oasisn Onsen by the end of year 1. Month 12 net income and cash flows are estimated to be $61,000 and $51,000, respectively. Full year net income and cash flows for Year 2 are estimated to be $740,000 and $730,000, respectively (before full loan prepayment and any equity distributions).
e. Long Term Goals GRC plans to maintain and protect its position as the unique market leader for the traditional onsen experience. At the end of year 5, GRC intends to perform a refurbishment of the facility and will create two more regular membership pools. Towards the latter part of this plan period, GRC may consider opening another onsen on either the neighbor island or another part of Oahu.
f. Exit …show more content…
This program will allow any customer to get 25% off, on a massage if they purchase a membership lasting one month or longer. Another implication Oasis Onsen plans to initiate is ”Weekday Paradise”. Weekday Paradise is a program that takes place Monday-Thursday that allows Hawaii customers to get 10% off, on a massage if they purchase a daily onsen service. Weekday Paradise is Oasis Onsen’s way of attracting potential customers on weekdays because our surveys claim that 58% plan to use our services primarily on Fridays-Sundays (according to the survey results). Oasis Onsen’s final way of sales promotion is the loyalty program, which will show the most promise while Oasis Onsen is in the growth stage because it will encourage our members to stay with