Rationales for Marketing Strategies - Case Study Example

Marketing Plan Student’s Name Institutional Affiliation Part A. Risks Organizational goal Risk associated with the plan H/M/L(High/Medium/Low) 1.Identify and expand into new segments Financial risk. Medium Competition challenge. High 2. Increase number of hotels Management challenge-knowledge, staffing, employee. High 3. Increase market share Competition. High Structural resource risk- the systems, regulatory actions. Low 4. Increase sales Market change challenge Medium Competition. High Disasters- climate change Low 5. Attract and retain high quality personnel Relationship risk-reputation, vendor performance. Low Regulatory challenge-maintaining the customers. Low 6. Provide world class hotel experience Structural resource challenge-proprietary information Low Financial challenge. High Human resource challenge- knowledge on how to come up with a world class hotel is a challenge[Joa12]. Medium Part B: SWOT Analysis Strengths Non-substitutable: people are always travelling since this is a sector strongly dependent on tourists, and people will never stop eating and thus this the greatest strength. The sector should make sure that there plenty of accommodation rooms and plenty of food. It’s an open sector: creating employments for those even with limited education. The sector should higher its employees from all areas and then train them. It’s global and with this it has a larger international market. The managerial should expand the business to many areas, or market the one they have online. Cannot be exported or outsourced due to its labor intensive nature. In this case it should treat its staff and employees well. It’s able to handle changes relatively easy. Should have techniques to handle changes and to work with the desires and demands of most customers. Weaknesses Highly depends on tourists. They can eliminate this by offering other services like outside catering around their location so as to avoid frustrations when tourist do not show up. Depends so much on seasons. This can be minimized by ensuring that there all kinds of services in or out of season. Low levels of skills and education. The sector can offer training to the employees they have or higher more trained personnel’s. Low productivity. Ensuring that employees and staff are motivated for them to offer good quality services. Opportunities High demand on quality could add value to the sector. Ensuring that the services offered are of high quality and also ensuring you meet the demands of your customers. Increasing globalization leading to more international travelers. This can be achieved through online marketing. Being increasingly on the move to offer more services to customers. Meeting customers demand and taste and moving with technology to meet customers’ expectations. Concern for climate and health should be considered to attract more customers. The sector should offer services according to climate of the area and the health of its customers to attract more people. Threats Competition from other sectors. If other hotels in the area are offering the same services. Ensure that your services are of good quality ton out way them. Lack of sufficiently skilled personnel lowers the quality. The employees should be trained and offered jobs according to the area they feel they are good at and an area where they can work comfortably to produce good quality results. Political unrest. The government should ensure political stability to make sure businesses are not affected. Climate. The sector should ensure that it has branches all over so that even where the weather is not favorable and there is less travelling services will still be offered in those areas[CHR15]. Part C: Marketing Strategy For effective marketing of any business, the 4 p’s have to be considered. These are product, price, place and promotion. Some strategies focus on each of the elements independently while others focus on the four elements simultaneously in a marketing mix fashion. In order to get the best out of a marketing strategy it is important to focus on the four elements simultaneously. The marketing strategies that go hand in hand with the strategic direction of the Sun Plaza Hotel Group are described below. Online Presence/Digital Marketing The hotel looks at a possibility of expanding into new market segments and increase its market share. The Group wants also to increase the number of hotels meaning that they will have to enter into new markets. In order to be taken up well in the new market segments it’s important for the business to market itself not only to the local people but also and mostly to those who live in those new places. The best and cheapest way to do this is by digital marketing. Social media marketing also falls under this strategy [Les17]. It involves the creation of online presence such that potential customers and the existing ones may find information about the hotel online at any time. The Group should develop a website and be updating it regularly with crucial information about them. They should create accounts in the existing social media platforms like Facebook and Twitter and use them to reach many people at once and at lower costs. They can them provide information about their services and location on these online platforms. This strategy handles the promotion and place part of the marketing mix. Public Relation The Group wants to expand, increase sales and provide world class hotel experience. They also want to attract high quality personnel. To achieve these the hotel has to establish itself as an effective member of the community. The hotel should participate in events that appeal most to their customers as well as social functions; this will build them a good picture in the society. Public relation strategy promotes the product. Product/Service Improvement The quality of the products and services of the hotel should be improved to higher standards that will satisfy all people and especially attract the prestigious high income earners. There should be set aside VIP services that will attract such people and such services should be of high class. New products can be introduced to cater for these changes. Direct Marketing The hotel currently deals with customers who are known for demanding a lot of personalized service. The hotel should take advantage of this and market itself to these customers as they buy. There should be a good customer relation created through this strategy and such a relation will help in winning new customers and retaining the existing ones. Price Reduction/Discounts When the Group offered a ‘winter getaway’ discount, much of the feedback from younger customers included preferences for cheaper options. Many customers are in the youth bracket and the Group needs to tap them. Prices should be reduced slightly at a general level to attract as many of them as possible. Part D: Marketing Tactics 1. The Tactics Strategy Tactics 1. Online Presence/Digital Marketing 1.1 Develop a website. 1.2 Feed the website with data about the hotel and keep updating it. 1.3 Create social media accounts. 1.4 Post information about the products and services of the hotel. 1.5 Engage customers on social media by responding to their queries. 2. Public Relation 2.1 Take part in community/social activities. 2.2 Host events that involve the community. 2.3 Prepare genuine and solid press releases. 3. Product/Service improvement 3.1 Introduce new meals and services. 3.2 Divide the hotel into sections and have a VIP section. 3.3 Offer VIP services to the VIP section. 3.4 Do a general improvement of products and services. 4. Direct Marketing 4.1 Develop products that fits each individual’s needs. 4.2 Offer quality services to each individual. 4.3 Pass [advertising] information to the individuals when offering them services. 5. Price Reduction/Discounts 5.1 Develop a constant scheme of offering discounts, not just limited period offers. 5.2 Set/Charge affordable prices to all. 5.3 Set different prices for the different sections so that everyone has a place. 2. The schedule, approximate costs, accountabilities/responsibilities and coordination. Strategy Tasks/Tactics Timeline Person Responsible Approx Cost ($) Coordination 1. Online Presence/Digital Marketing 1.1 Develop a website. 20-05-2017 ICT team 20000 To be monitored by property dev. head. 1.2 Feed the site with updated data. 25-05-2011 Marketing and sales team 0 Coordinated by marketing and sales head 1.3 Create social media account 20-05-2017 ICT team 1000 To be monitored by property dev. head. 1.4 Post info about products and services 20-05-2017 Marketing and sales team 0 Coordinated by marketing and sales head 1.5 Engage customers 20-05-2017 Customer service team 0 Coordinated by customer service head 2. Public Relation 2.1 Take part in community activities - All teams 50000 Coordinated by all office heads 2.2 Host events that involve community - All teams 50000 Coordinated by all office heads 2.3 Prepare press releases 30-05-2017 CEO 10000 Performed by CEO; prepared by office heads 3. Product/Services Improvement 3.1 Introduce new meals and services 20-05-2017 Food and beverage and property dev team 30000 Coordinated by respective section heads 3.2 Divide the hotel into sections 30-05-2017 Maintenance team 20000 Coordinated by maintenance head 3.3 Offer VIP services to VIP section - Customer service team - Coordinated by Customer services head 3.4 Do a general improvement of products and services. 30-05-2017 Maintenance team 25000 Coordinated by maintenance team 4. Direct Marketing 4.1 Develop products that fits each person’s needs. 20-05-2017 Food $ Beverage team 20000 Coordinated by food & beverage head 4.2 Offer quality services - Customer service team 0 Coordinated by customer service head 4.3 Advertise to individuals - Marketing and sales team 0 Coordinated by mkt and sales head 5. Price Reduction/Discounts 5.1 Offer constant discounts - Finance team 30000 Coordinated by finance head 5.2 Charge affordable prices to all - Finance team 0 Coordinated by finance head 5.3 Set different prices for the different sections. - Finance team 0 Coordinated by finance head 3: Legal and ethical requirements & 4: KPI for each tactic Strategy Tasks/Tactics Legal requirement Ethical requirement KPI 1.Online Presence/Digital Marketing 1.2 Develop a website. 20-05-2017 ICT team Website traffic 1.2 Feed the site with updated data. Do not post confidential info Post decent info Clicks per item 1.3 Create social media account Provide true info Maintain honesty Number of followers 1.4 Post info about products and services Avoid confidential and private info Avoid exaggeration Number of views 1.5 Engage customers Maintain confidentiality Honesty and openness Customer satisfaction 2.Public Relation 2.1 Take part in community activities Obtain legal permission Promote positive ideas Lifetime value of local customers 2.2 Host events that involve community Obtain legal permission for hosting events Host decent, educative events. The size of market share (No. of customers) 2.3 Prepare press releases Adhere to guidelines and regulations Honesty and completeness Leads 3.Product/Services Improvement 3.1 Introduce new meals and services Should be approved meals and services Clean, affordable meals and services Customer intake rate 3.2 Divide the hotel into sections Adhere to existing standards Involve everyone Sales growth 3.3 Offer VIP services to VIP section Adhere to existing standards Offer good services; well. Customer satisfaction 3.4 Do a general improvement of products and services. In accordance with existing standards Involve and mind everyone Sales growth and customer satisfaction 4.Direct Marketing 4.1 Develop products that fits each person’s needs. The products should be approved Mind each individual Customer retention rate 4.2 Offer quality services Comply with quality standards Offer equality in terms of quality Sales growth 4.3 Advertise to individuals Comply with set advertising standards Maintain honesty; no exaggeration Changes in size of market share 5.Price Reduction/Discounts 5.1 Offer constant discounts Offer realistic discounts Should be genuine discounts Customer satisfaction and sales growth 5.2 Charge affordable prices to all Avoid over-exploitation Uphold fairness Sales growth and customer satisfaction 5.3 Set different prices for the different sections. Should be acceptable price discrimination Offer fair, affordable prices Sales growth and customer retention [The] Part E: Marketing Plan Executive Summary The marketing plan for the hotel is supposed to enable it to grow into newer market segments and increase the number of hotels. The plan gives a brief description of the hotel and its ownership and management, its mission and goals, a summary of the key competencies, the target market, the market strategy, a rationale for the strategy and tactics and a summary of the budget. Company Description The Sun Plaza Hotel Group started in 1998 in Sydney and expanded to be a chain of 20 hotels in Australia. It is owned by a consortium of wealthy business people whose accountants advocate for good investment that will earn them more cash. The hotel’s main customers are travelers and local communities; both middle and high income earners [Sun]. The hotel, due to serving international guests, has a multicultural staff divided into teams both having heads for coordination and monitoring. The hotel’s mission is to expand geographically and widen its market share and provide quality accommodation facilities. Goals The Sun Plaza Hotel has set strategic goals which include; the identification and expansion into new market segments, increasing the number of hotels, increasing its market share, increasing sales, the attraction and retention of high quality personnel as well as the provision of hotel experience that is of world class. Key Competencies/Value Statements The Sun Plaza Hotel realizes and acknowledges that the customer is very important for the survival of the business and so they treat the customer specially. The hotel also acknowledges team work as a key competency in the market. The hotel also upholds social responsibility by respecting and supporting all people as well as adhering to set legal and ethical guidelines. Being a destination for international visitors, the hotel embraces diversity. Target Market Currently the hotel sales to travelers and people from the local community but their target is to attract more senior people. The hotel wants to expand its market share by entering into new market segments in other places like WA, NZ, NT and Adelaide. Market Strategies In order to achieve its goals including expanding into new market segments, the hotel has to put measures in place to ensure they attract and retain customers. The strategies and tactics for achieving this are; digital marketing which involves the creation and updating of a website as well as the setting up of a social media account for social media marketing to create an online presence; creating of a good public relation which involves participation in community activities, hosting events and press releases; product and service improvement which involves the introduction of new meals and services as well as the creation of sections including VIP; Direct marketing which includes selling the hotel’s ideas to individual customers when they buy; and price reduction and introduction of full-time discounts. The marketing mix: product strategies used include quality improvement, distribution done by customers visiting the hotel so service improvement caters for distribution strategy, promotion strategies used are advertisements, posters, brochures as well as online and price strategies used have been discounts and now fair pricing. Budget In summary, to ensure the implementation of the marketing strategies, the following budget or higher will have to be set aside; Strategy Approximate Cost ($) 1. Online Presence/Digital Marketing 25000 2. Public Relation 100000 3. Product/Services Improvement 75000 4. Direct Marketing 20000 5. Price Reduction/Discounts 30000 Total (Approx) 250000 Rationale for marketing plan A successful company is that which sells products and services to their customers at a price they can afford in the quality they will appreciate [Ber]. The marketing strategies and tactics presented in this plan have this idea in mind. The strategies focus on the segmentation of the market and the application of marketing mix to find out the needs of individual customers and satisfy them to the appreciation of the customer. The strategies also ensure that the hotel is known far and wide and that it occupies a good position in the market. References Joa12: , (Taylor, 2012), CHR15: , (Christian, 2015), Les17: , (Liu, 2017), The: , (McMahon, n.d.), Sun: , (Sun Plaza Motel, n.d.), Ber: , (Markgraf, n.d.), Read More