Marketing Plan for Logan Hotel - Case Study Example

Table of Contents Introduction................................................................................................................... 3 Description of the business characteristics and operations.................................... 4 Mission Statement………………………………………………………………… 4 Objectives……………………………………………………………………...…… 5 Research and evaluation of its key market elements................................................ 5 Location Choice……………………………………………………………………..5 Potential Target Market……………………………………………………………. 5 Competition Analysis……………………………………………………………… 6 Business macro environment…………………………………………………….. 6 Conclusion..................................................................................................................... 7 Introduction The Logan Hotel (My fictitious hospitality organization) is venturing into hospitality business. In this report; an attempt has been made to develop the first stages of the marketing plan of the company. Marketing plan is a game plan for achieving a company’s long term objective. It consists of a description of target markets, positioning, products to be offered, pricing, distribution, marketing communication (creating brand awareness) and marketing research (measuring market preference, penetration etc.). Innovations are unique, creative and novel ideas or features implemented into a company’s product portfolio or marketing campaigns (Barras, 1984). It is an S-shaped curve which shows the relationship of a product’s sales growth with the passage of time through four major stages: Introduction (slow sales growth), Growth (rapid market acceptance), Maturity (slow down in growth rate) and Decline (sharp downfall). Merging of strategic mission, vision and objectives so as to lay out the future direction, performance targets and actions of a company is a strategy plan (Baker, 2008). A mission (Hill & Jones, 2008) describes the present business scope and purpose of a company (Who we are, what we do, and why we are here). Vision is a blueprint which shows the route a company intends to take so as to grow and strengthen the business. Aim is overall broad and general statement illustrating the goal of a desired project undertaken. Objectives are specific and concise statements identifying definite and measurable outcomes to be achieved at the end of a project. Business plans are formal report on the proposal for a new business with the company description, its goals, and the importance of the start-up along with a feasibility study. It involves a thorough analysis of the products and services to be offered; marketing plan; operational plan; strategic plan; and a financial plan, expenses and capitalization required. Strategy plan is a part of the business plan which involves defining a direction for the company and managing its investment objectives through a strategy to achieve its defined objectives. Description of the business characteristics and operations The Logan Hotel is starting its business as a business of Hotel management (Product). They will make their prime offerings as ESH&V which is Excellence in service, hygiene and value for money, therefore signifying up-market Positioning while offering good and reasonable prices as they intend to keep their Check-in tariffs as low as US$114 for travellers and US$102 usual single occupancy. The symbols used by them such as its logo ’h’ to be highlighted at places like entrance, fountain, a swimming with the sigh ‘h’ and hotel chairs will create a strong marketing communication. Right now, it is in ‘Introduction’ phase of product life cycle. The infrastructure of the Hotel and the entire complex is highly contemporary in design with an obvious focus on convivial functionality throughout. One will observe that public spaces such as the lobby/reception area, the bar and the lounge have been decorated with soft furnishings, neutral colours and natural textures such as wood, leather, glass and stone. A room can be booked at the lobby entrance itself by using one of the automated self-cheek-in stations in the lobby, or one can have it pre-booked by phone, fax, e-mail or on the Web - www.loganhotel.com - for slightly less money. All rates are fixed. • Mission statement: The mission of The Logan Hotel is to ‘Serve People’, and not just products. Their vision is to continuously utilize its brand’s huge potential and diversify (extend hospitality) to other foreign countries also. For The Logan Hotel, their aim is to provide a quality experience to their customers at affordable prices. • Objectives: In order to be true to their mission, they set objectives in the form of (a) Uniquely positioned and world class interior décor (b) Reasonable price band and online booking at lower rates (c) Their own brand of restaurant promising good quality food, Swiss dining room and coffee bar (d) Internet connectivity in all rooms for staying pleasure (e) Comfort in rooms with special care in selecting furniture and bathroom equipments (f) World class infotainment system and fitness room Research and evaluation of its key market elements • Location choice: The Logan Hotel has planned its location to be situated near an airport district. It will offer guests the choice of 50 well-furnished rooms but rooms and suites which are comparatively bigger in size at the same cost. The facility boasts a four-star rating from the Swiss Hotel Association, perhaps reflecting a desire to move The Logan Hotel up-market while continuing to offer good value for money. The choice of locating the hotel near an airport district is basically to attract the guests at the very onset. Attractive and inviting premises will work as a perfect magnet for tired guests looking for a convenient, luxurious stay at affordable cost and without having to travel much to reach the hotel. Its location will be one of its competitive advantages. • Potential target market/s: The Logan Hotel will usually target the following as their core Target Market: (a) Business travellers during week and (b) Families and young adults on weekends where Attractive 'family adventure weekend' and 'summer' rates are made readily available. • Competition analysis: Its first advantage is its expansion into several markets which will enable it to overcome the limitations of domestic market players. Its strategy for gaining competitive advantage (Porter, 1990) over its rivals is that of ‘Best Cost Provider Strategy’ (Porter, 1985) where it offers differentiated products at a price which is affordable and provides value for money. It basically refers to providing value for money to the customers by integrating good product attributes at a cost lower than the competitors aiming towards best (lower) costs and prices compared to rival’s offering products of comparable attributes. The major competition that The Logan hotel will be up against in terms of the most expensive hotels will be ones like four seasons which charges $34,000 per night. And, in terms of the cheapest hotel would be those which charge as low as $55 per day. The Logan Hotel in order to position itself as the best cost provider will have to strike a balance between the above two extremes. • Business macro environment: The SWOT (Hill & Westbrook, 1997) of The Logan Hotel gives us more insight. Its word class infrastructure, plethora of facilities and affordable cost structure are its strengths. However, its lack of room service and mini-bars can turn out to be one of its weaknesses. With its reasonable cost structure, diversification strategy and a franchise mode of operation, it can attract a wide range of middle income developing nations with huge tourist potential. The major threats to it can be posed by already established specialized hotel chains and the new entrants with considerable room service facilities being offered to customers. Conclusion The report is a description of The Logan Hotel and an attempt to develop a basic and initial blueprint of its marketing/business sttrategy. The hotel chain which is proposed to be located at major sites in an airport district has a very distinctive positioning of being a ‘Best cost provider’ as its business strategy. The sole criteria of providing an indeed word class experience in terms of excellence in service and ambience along with reasonable pricing will put it on the map of competing brands in the hospitality business. The infrastructure and interior decor of the hotel will represent an up market trend combined with convenience of availing its facilities and at a reasonable price, will make it a luring prospective choice among most business travellers as well as regular family visitors. The management at The Logan Hotel is quite radical and supportive of the diversification strategies and innovations. Also, its leadership truly believes in innovation and takes pride in serving the customers. This report has an elaboration of the business characteristics of the company along with its mission, vision and objectives along with a glimpse of its positioning, potential target market and the proposed location of the hotel. Analysis of its business environment and its strategic intent provides further elucidation on its market plan. However, apart from the business environment study of The Logan Hotel, it is also required to carry out a cultural analysis since cultures and lifestyles are one of the most prominent areas in which countries differ as identified by Hofestede (Hofstede, 1980). Further, a strong Business Plan needs to be developed for The Logan Hotel which should consist of a thorough analysis and documentation of its products to be offered, financial feasibility (after making all the expenses will it be able to recover costs and the investment required), its operational details (especially the hotel crew in a foreign country), the legislations and government rules in the market it is planning to start its operation in. Read More