Team Shrimp Boat
Team Shrimp Boat
Delcambre Project
Phase 1
Bishwa Adhikari
Dustin Baudin
Megan Galloway
Shane Landers
Due Date: April 1, 2009
Executive Summary
The purpose of this report is to analyze the market opportunities for the retail industry in Delcambre, Louisiana. With this analysis, we are able to identify business opportunities in Delcambre and the surrounding area. Gathering detailed information on the current economic, political, legal, and technological sectors established the market in which we wanted to target. Gathering this information and data also explained and demonstrated the business sustainability of the market in Delcambre. We were also able to analyze the long-term investment opportunities with the information gathered.
The key results in our findings indicate that certain business ventures that will be more successful, in terms of economic stability, population stimulation, and sustainable future growth. The findings indicate that Delcambre has a small population with the potential to grow. With a small population, business leaders need to adapt and realize that the market needs to be created from within the Town of Delcambre. If the town leaders can demonstrate this, then it will prove to the community how committed they are to the revitalization efforts in the town.
The findings also indicate that the community members that have stayed in Delcambre after the storms are very motivated to rebuild their homes and the community. Based on observations in the town, it was quite noticeable and apparent that new houses and some revitalization has occurred. This should demonstrate to investors that there is motivation by the community to refurbish their battered town. The people that live in Delcambre are very proud to live there. It is possible and highly recommended that the Town of Delcambre rebuild, reestablish, and stimulate interest in the town in order to grow, both in population and in commercial investments.
Through the segmentation process, we have developed four main aspects that we feel will contribute to the growth, in terms of economic stimulation and population growth. The four markets that we feel will be most beneficial in the retail industry are as follows: a seafood restaurant that boasts Cajun seafood and unique flair, a local grocery store that meets the basic food needs of the community, a historic, cultural museum that invites tourism and promotes pride throughout Delcambre, and a kayak/canoeing retail store that also invites tourism and promotes economic stability, physical exercise, and outdoor entertainment for both community members and people living outside of Delcambre. We feel that these are some of the best options to use when revitalizing the town. The grocery store is a necessity, and we highly recommended a restaurant. As for the museum and kayak/canoe retail store, we believe that these ventures should be established after the basic needs of the people are met.
Delcambre Group Project
GROUP: Shrimp Boat
CLASS: Marketing 524
SEMESTER: Spring 2009
MEMBERS: Bishwa Adhikari
Dustin Baudin
Megan Galloway
Shane Landers
Phase I – External Analysis
I. Product Definition/Classification
Our product classification is retail development within the Delcambre city limits and surrounding areas. Our focus is on retail establishments in both the food industry and the tourism industry—specifically our focus is on a seafood restaurant, grocery store, museum, and a kayak/canoe rental and retail operation. The kayak/canoe operation would make better use of the natural resources such as Lake Peigneur.
II. Macro-Environmental Analysis
A. Population and Geographic Area
The Town of Delcambre was first settled by Acadians who migrated from Nova Scotia in the mid – 18th century. Delcambre is located within Iberia and Vermilion parishes in Louisiana, and it lies twelve miles east of Abbeville on Louisiana Highway 14. Delcambre is in the Cajun Heart Land of Acadiana (1).
· Latitude 29.95 N
· Longitude 91.99 W
· Land area 0. 83 Square miles
· Elevation 6 Feet
· Population density 2615 People per square mile (Average)
Delcambre is a small, close-knit town well known in Louisiana for its natural resources and the shrimp industry. This small town possesses a vast amount of possibility for new retail ventures. Growth in the retail industry will help Delcambre’s population grow and attract tourists. This growth will raise town and parish annual revenues, which will impact the economic growth and stability of the community. For an economic stimulation to take place, it is essential to attract and retain a stable, growing population that supports and makes use of the retail ventures that we recommend.
Why is population growth necessary?
In order for the marketing plan to be successful, an increase in the population size of the town would be beneficial. Population growth allows for more business opportunities in the area. Below are some reasons why we believe population growth is necessary in Delcambre.
· To make better use its natural and water resources.
· To achieve cost efficiency
o Example: If seafood is produced at maximum efficiency, it will reduce production costs per unit and make products more competitive in the Louisiana and macro-environmental market.
· To increase attractiveness of the community
· To increase local demand, therefore creating a stronger, more stable economy
· To meet employment demands
· To extend the marketability of community
· To achieve economies of scale.
· To create and expand retail development.
· To increase the purchasing power of local people.
· To make long term strategy for tourism development, in terms of retail development.
1. Size of population (2)
Population in July 2007: 2171
· Males 1057 48.7% of population
· Females 1114 51.3% of population
Population in 2000 2168
Population change since 2000: + 0.8%
Median resident age 32.6 Years
2. Growth rate from 2000-2007 (2) +0.8%
Due to the recent hurricanes, the population growth has minimized, and even decreased after the hurricanes. 90% of the town was flooded after Hurricane Rita (Scott Saunier, in class 3/11/09). Now, however, a small amount of growth and rebuilding has been seen (13).
3. Age distribution (1)
27.7% under the age of 18
10.9% aged 18 to 24
27.4% aged 25 to 44
21.44% aged 45 to 64
12.6 % 65 years of age or older
The median age was 33 years.
4. Ethnic mix (in percentages) (1)
· White, Non-Hispanic 81.4
· Black 14.4
· Hispanic 1.9
· American Indian 1.2
· Two or more races 1.2
Ancestries
· French 19.8
· United States 17.2
· French Canadian 13.2
· German 3.9
· Irish 2.8
For population 15 years and over
· Never married 27.2
· Now married 50.5
· Separated 2.2
· Widowed 8.3
· Divorced 11.2
5. Education Level (1)
For population 25 years and over in Delcambre (in percentages)
· High School and or higher 64.9
· Bachelor’s degree or higher 10.1
· Graduate or professional degree 1.8
Mean travel time to work 25.3 minutes
Unemployment 7.4%
6. Household patterns
According to the United States Census Bureau (census of 2000) there were 2168 people, 826 households and 593 families residing in the town. There were 903 housing units at an average density of 1087.5/ sq mi (4).
826 households total (4)
Types of households in Delcambre / Percentage of Households in DelcambreChildren under the age of 18 living in house / 35.6%
Married couples living together / 51%
Female householder with no husband present / 16.3%
Non-families / 28.1%
Someone living alone who was 65 years of age or older / 12.2%
The average household size was 2.62 and the average family size was 3.10 (4).
The median income for a household in the town was $27,500 and the median income for a family was $34,643 (4).
Delcambre compared to Louisiana state average (1):
· Median household income below state average.
· Median house value below state average.
· Hispanic race population percentage below state average.
· Foreign-born population percentage significantly below state average.
· Number of college students below state average.
· Percentage of population with a bachelor's degree or higher significantly below state average.
Nearest cities (1):
· Nearest city with population 50, 000+ Lafayette, LA 18.4 miles, population 110,257
· Nearest city with population 200,000+ Baton Rouge, LA 68.1 miles, population 227, 818
· Nearest city with population 1,000,000+ Houston, TX 233.6 miles, population 1,953,631
Louisiana-Nearest cities (1):
· Erath 3.3 miles
· Abbeville 9.8 miles
· Youngsville 10.4 miles
· New Iberia 12.3 miles
· Broussard 13.4 miles
· Maurice 14.3 miles
· Lydia 14.4 miles
· St. Martinville 16.3miles
· Lafayette 18.4 miles
Hospitals/medical centers near Delcambre (1):
· Abbeville General Hospital 15 miles (Abbeville)
· Vermilion Rehabilitation Hospital 15 miles (Abbeville)
· Dauterine Hospital 16 miles (New Iberia)
Colleges/universities with over 2000 students nearest to Delcambre (1):
· University of Louisiana at Lafayette 17 miles
o Lafayette, LA
o Full-time enrollment: 13,673
· Louisiana State University 64 miles
o Baton Rouge, LA
o Full-time enrollment: 28,696
· Southern University 68 miles
o Baton Rouge, LA
o Full-time enrollment: 8,399
· Nicholls State University 82 miles
o Thibodeaux, LA
o Full-time enrollment: 6,244
· McNeese State University 95 miles
o Lake Charles, LA
o Full-time enrollment: 6,460
· Southeastern University 112 miles
o Hammond, LA
o Full-time enrollment: 12,549
· Tulane University 130 miles
o New Orleans, LA
o Full-time enrollment: 10,230
Airports certified for carrier operations nearest to Delcambre (1):
· Acadiana Airport 10 miles
o New Iberia, LA
· Lafayette Regional Airport 18 miles
o Lafayette, LA
· Baton Rouge Metropolitan 71 miles
o Baton Rouge, LA
7. Regional Characteristics
The Delcambre area is known for the Cajun culture and cuisine. The area focuses on the seafood industry, in particular the shrimp industry. The shrimp industry has been an economic factor in the community in years. However, it has been losing its economic value in the town because of the globalization of seafood and the accessibility of seafood from China and other Asian countries. The Delcambre seafood industry is not as productive as it was in the past, and it certainly diminished even more after Hurricanes Katrina and Rita hit. We believe that in order to benefit the community, Delcambre should emphasize their unique characteristics.
8. Movement
There are people coming in to the area from other parts of the United States for
tourism as well as business and other personal reasons. Movements out of the
area in recent years are due largely to the impacts of the hurricanes.
Hurricanes
· Audrey June 1957
· Lili October 2002
· Katrina August 2005
· Rita September 2005
· Gustav September 2008
· Ike September 2008
Impact of hurricanes
Hurricanes have had a negative impact on life in Delcambre. In particularly, Hurricane Rita devastated the Delcambre area and the entire region of south Louisiana. The hurricane has negatively impacted the growth rate, in terms of population, industry, and retail ventures.
Due to the threats of hurricanes, the population has decreased. About 600 people abandoned Delcambre after Rita, bringing the town’s population down from 2300 before the storm to 1700 (Tutwiler 2008). Some of the population that left Delcambre has not returned due to rebuilding costs and the threat of more major hurricanes in the future. Carol Broussard, the Mayor of Delcambre, does not have a firm figure yet, but he believes his own town will lose another 500 residents due to Hurricane Ike (Tutwiler 2008). If the population drops below 1,000 people, Delcambre will be designated a village rather than a town.
The Town of Delcambre has been challenged with three major hurricanes in the last 3 to 4 years. Homes and local businesses flooded each time in three years. When people were trying to get recovery from Hurricane Rita, Hurricane Ike struck, and it pushed about eight feet of water into the already damaged buildings.
Many people and businesses have lost their boats and almost everything they own. Judy Brewer, who lived in Mississippi before Hurricane Katrina, had house in Erath and a business in Delcambre, on Highway 14. She says that “what I didn’t lose in Katrina and he [her boyfriend] didn’t lose in Rita, we lost in Ike” (Turwiler 2008).
School enrollments for the time period after Hurricane Rita until just before Ike hit had barely declined. In 2005, Delcambre High School had a population of 479 students. Early October 2008 enrollment was 457 (Turwiler 2008).
Some people residing in Delcambre are uncertain about their future in Delcambre. Some say that if hurricanes like Hurricane Rita and Ike come again they do not know what they are going to do. Many wonder if rebuilding is worth the effort and time.
“Holding on the population is the problem. Delcambre’s only industry for many years has been shrimping and processing the catch. Years ago shrimp were bringing in a high price, and shrimpers and processors were able to make a good living. But even before Hurricane Katrina and Rita battered the state’s fleet, shrimps were battling a flood of imported shrimp from Asia that were priced to undermine Louisiana’s wild – caught crop” (Turwiler 2008).
Mayor Broussard says “We are losing business. Lil’ Sandwich Shop isn’t reopening. Champagne’s (the town’s only grocery store) never came again” (Turwiler 2008).
Major Issues in Delcambre
· Hurricanes
· Population Decline
· Relocation of population to other areas
· Fewer opportunities for the growth of business and industries
· Unsecured investment in developing infrastructure for big industries and tourism
· Lacking businesses that will rebuild community
o Grocery store
o Restaurant
B. Social Trends in Geographic Area
Most social trends in Delcambre focus on the church, family life, and food. The primary religion is Catholic, and religion is an important part of the community. Many holiday and religious celebrations recognized by this church, such as Easter and Lent, are heavily celebrated by the community members. The season of Lent also brings about other social trends such as seafood boils and family style bar-b-q gatherings and social gatherings, which are an integral part of the culture. One of the biggest festivals is the Shrimp Festival, which focuses on the community’s dependence of the shrimp industry.