About Wedding Barn

Discuss about the Effect Of the Social Cultural And Economic Factor.

Wedding barn by Delilah and Monica is a start- up business plan to be initiated in the Canberra region. The mission of the business is to provide a complete package for weddings and anniversaries. Delilah is experienced in organizing large function while Monica is a target chef. According to the wish of their customers, both of them could provide Tropical, Western or more traditional kind of wedding parties. The services also consist of catering, entertainers, hairstylists, musician, honeymoons package, florists and budget planning (Hoye & Johnson, 2016). The main objective of setting the weeding barn is to provide both a pleasurable and memorable experiences to their clients.

The total average cost of a wedding is above $30,000. Maximum cost is spent on the venue and other cost includes catering, entertainment, car services, florists and musicians (Warnick, Bojanic & Xu, 2015). The large barn is sufficient for arranging the wedding ceremony in the Canberra area. This further saves the high costs related to the wedding business.

Around $35 billion are spent each year on the receptions and wedding throughout Australia (ABC News., 2018). In the recent times professional wedding planners have become a commodity rather than calamity. In Canberra region, every individual is also a potential client therefore it is vital to advertize to family members, grooms and brides. The number of marriage has increased by 4.2% in the year 2016.

Marriage is a billion dollar industry in Australia and the marriage rate is still being to remain same in the near future. In Canberra, where Wedding Barn is planned to operate their business, around 1500 marriages are registered each year. This generates a profitable sized market for this business line.  Customer segment is represented by various family members as well as guests attending the wedding ceremony (Green & Henseke 2016). This segment needs efficient event preparation by providing services like etiquette tips and gift ideas.

Wedding Barn will target mostly the brides and groom as most services will be provided to them along with the other family members. The organization will always position itself to an experienced provider of the services of wedding planning. Unlike their competitors, Monica and Delilah aim to provide the convenience for one-stop shopping for their clients. This will greatly reduce the time of the customers as well as efforts for their life’s most important event.

The business of Wedding Barn would start- out as a proprietorship, which is owned by both Monica and Delilah. As the operational activities of the business will grow, the owner would consider re-registering itself as a corporation or limited liability company (Rozhkov & Skriabina, 2015). The company founders, Monica and Delilah will handle the day-to-day operational activities of the plan. Their main objective is to work collaboratively to make their wedding business a success in the near future.

The business start-up cost is expected to be $3,000. The cost also includes legal cost, advertizing, design, direct mail and other related expenses. Moreover, additional $5,000 will be required as an operating capital in the bank account for the initial two months of the operation. The start-up costs are to be invested equally from the owner’s personal fund. Both Monica and Delilah are investing $ 4,000 each.  As it is a home based business, it is to be set up in a barn close to Canberra region. The services for the wedding function would include etiquette advices, discounted products and invitations, event scheduling, rehearsal attendance, supervision of the ceremony and wedding setup and budget planning.

Market Analysis

PESTEL analysis is therefore used to investigate the crucial factors that affect the wedding industry in Canberra.

Political factors: this involves the procedures of the government that is associated with this industry. This includes conventions, laws, restrictions, rules and tariffs. The couples living in the area and viewing Australia as their wedding destination is expected. It is highly significant that the political structure in the Canberra region is highly stable to attract more couples. The law of Australia gives the organization all the provision related to approach individuals that dates are registered with the marriage registrar and therefore the can approach either of the parties to manage the wedding functions (Castaño, Méndez & Galindo, 2015).

Economic factors: this involves all those financial forces, which is present in the country. This includes the wider economic performances. This factor affects the economic performance of the business through exchange rates, interest rates and inflation. Last year, various parts of the worlds faced recession. This led rise to inflation, which was the major cause for people loosing their job and money. During such phase, it becomes quite difficult for the wedding business to attract and retain clients for their wedding. Therefore it is important to focus the wedding services to provide more flexibility and convenience to the clients for every aspect of marriage (Guenther, Endrikat & Guenther, 2016). Moreover, the wedding services should be made irresistible to the potential brides and grooms for the marriage function.

Social factors: social factors are highly significant for every business. It is to be considered before preparing any marketing plan that is concerned with the society facets. Moreover various forces within the society such as family, religion, education, social structure and population growth can influence the businesses both negatively and positively (Saleem, 2017). Wedding industries are bound to involve social influences. Marriage is itself very special and auspicious occasion for all the couples. Consumer’s behavior is increasing at a rapid rate in the region for wedding planners and the marketing strategies is planned considering the social influences on target customers.

Technological factors: in the recent times, advent of innovative or new technology is vital for the success of a business. The world is rapidly moving towards globalization as there is increase in the application of e-commerce and internet in every aspects of the business (Mahmoud, 2015). The demands of the customers are also changing over times and business seeks to meet the firms demand by adapting to the latest technology that is available in the market.

Wedding Barn would use the latest software that is available in the market. Operational plan would be designed according to it and customer should also be provided as per their requirement and budget. Recently there are various internet savvy customers in Canberra area. They would use the internet to access information related to services and background the company offers. Such as testimonials and contact information. Therefore, it is crucial to upgrade as per the latest technology to serve the customers in a more efficient manner.

PESTEL Analysis

Environment factors: Australia is one such country that provides unique and special location to celebrate the couple’s most crucial aspect of their life that is marriage. Canberra is such a region of Australia, where both church wedding or ceremonial wedding at the mountain top or on a garden is beautiful in its own aspect. The attractive landscape provides unforgettable experiences to the couples for their special day. Besides the other parameters environment and season also motivate couples and further influences the wedding planning business.

Legal factors: this constitutes of the rules of law in which the business would operate. Every organization has to follow legal rules of the nation in which the business is established. The government of Australia has made flexibility for making the country as destination for all those couples wanting to get married there (Phadermrod, Crowder & Wills, 2016).

In Canberra recently there are more than 25 companies that offer wedding planning services. However, majority of the competitors only a limited kind of services like flower arrangements, catering and gifts. In fact only 10 of the competitive company would offer such services as compared to the Wedding Barn services of Monica and Delilah. The following is the list of major competitors with the brief discussion of the services

Ø  Pink Parasol Events	It offers innovative and creative wedding and also event styling, décor hire and planning services.
Ø  Events with Distinction	This provides indoor, outdoor as well wedding with themes like rustic and vintage style. It also provides catering and flower arrangements
Ø  Couture wedding by Nektaria	This is a luxury wedding planning services that offers catering, rehearsing services.

The sales strategy for the business should be maintained by developing affiliate relationship with the other service providers. This includes carters, hairstylists and florists and would also receive percentage of sales for the referred customers. Word of mouth referrals would also lead to increase in the businesses of wedding through customer referrals (Abs.gov.au., 2018).

Strength ·         Strong potential for customer base ·         Huge profit margin ·         Less investments ·         Excellent communication system ·         Adequate social contacts	Weakness ·         Seasonal demands ·         Less experience in the business ·         Largely unorganized market.
Opportunity ·         Changes in social environment ·         Improving business and economy	Threats ·         Increasing competition ·         Increasing influence of regional, substitutes and players in the industry.

The success of the wedding barn is completely dependent on the commitment and quality level of the owners.

References:

ABC News. (2018). How to slash the astronomical cost of weddings. ABC News. Retrieved 16 March 2018, from https://www.abc.net.au/news/2017-11-22/how-to-slash-the-astronomical-cost-of-weddings/9177536

Abs.gov.au. (2018). 3310.0 – Marriages and Divorces, Australia, 2016. Abs.gov.au. Retrieved 16 March 2018, from https://www.abs.gov.au/ausstats/[email protected]/mf/3310.0

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