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Marketing Advisor's report - the Orchard Country Hotel.

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MARKETING ADVISOR'S REPORT: THE ORCHARD COUNTRY HOTEL Introduction Rachel and John Pike, both gave up their jobs at the age of 40 to live out their dream. Using their savings, they invested in a 12 - bedroom country house hotel, with the intention of turning it into a successful business venture. The hotel is very dated, but it is in a lovely countryside location and only three miles from Lyme Regis. They were very ambitious from the start, allocating only six weeks to renovate, decorate, find staff and open the hotel to the public - all this and neither of them possessed any previous hotelier experience or training! They spent �200,000 buying the building, �100,000 was paid up front and �100,000 was mortgaged. �25,000 was also used for refurbishment. They estimated that in order to break even in their first year; each guest would pay �33 per night B & B, and that 2,000 bed nights would have to be sold by the end of the year. When the hotel opened, they had sold 500 rooms for the year - only 25% of their expected income! Six weeks after opening in the summer season and booking were still a major problem. Five months after opening, they were still very short of their financial target, with only 1,350 bed nights sold. John believed they had underestimated the businesses out goings and that they had over estimated their bed night sales. Unwisely, they had spent scant money on advertising, and no advice from a marketing expert - if she had spent wisely they wouldn't have had this dilemma. Risk analysis should have been done to prepare them for any pit falls. The problems were not merely financial; there were other issues too. Rachael wanted to keep fewer staff and do most of the work herself (she also had two children to look after). Also delegation was definitely not her strong point, along with her apparent tunnel vision! ...read more.


People travel more now and so expectations have increased, guests expect to get good value for their money. Quality does not mean having to be expensive, but it does mean having to be good at your price level. As Rachael does not have the relevant training; it would be a good idea if she employed an experienced manager to run the hotel, even on a year's contract. Especially in the first year, as she tries to get to grips with advertising, maintenance, building a reputation, finding new customers, and all the other things that are happening. Having a manager would be useful to her as the hotel would run smoothly, pleasing the guests, and she can learn from pick up tips/ideas from the new experienced manager for when she regains control of the reins. Skills that are needed, include, stress management, time management, financial management and flexibility. . Development time is a factor 'high' on the list of priorities. This is the time it takes to develop the project. It involves several factors, such as product complexity, newness, clarity of customer requirements, the effectiveness of the new hotel's development process, quality, effective management, priority and prior experience with in the hotel industry. The responsibilities of your Marketing Adviser Running your own business can be a lonely job. You can be faced with a mountain of decisions to be made, covering every aspect of the business: accounting, marketing, premises, employment, tax and a whole lot mote. Fortunately there is a lot of help available - all you need to do is find yourself a decent marketing advisor, to help ease the pressure off your shoulders. A marketing advisor is someone who be able to listen, analysis problems, find and offer impartial information, problem solve, suggest innovative ideas, develop action plans, challenge you and find you specialist help if they cannot offer it. He/she will become your mentor, coach, net worker, facilitator and researcher rolled into one. ...read more.


and psycho graphic data as well as purchase history. Well presented 'business cards' are always useful to the potential customer and his/her friends/family (your 'prospective' potential customers!) A customer base needs to be set up, using existing customers and gaining customers, using advertising and promotions, telemarketing and mail shots, and the Internet. When taking over an old business - you need to re-vamp it by giving it a new image. The consumer perception of the hotel that may or may not correspond with reality. For marketing purposes, the image of 'what it is' may be more important than 'what it actually is'! Media Plan 6 MONTH FORECAST 2003-MEDIA PLAN-ORCHARD COUNTRY HOTEL January February April May June Local Press �300 �300 �300 National Press �600 �600 Tourist Hotel Magazine �110 �110 �110 �110 �110 Internet �13 �13 �13 �13 �13 Flyers �100 �100 �100 �100 �100 Conclusion * Undertake a mini Swot analysis. * Produce a Media Plan. * Find a mentor, someone with the sense to see which way you are heading and to help you steer your self-motivation in the direction of success. * Set realistic targets. Break down long-term goals into targets for this year, this month and this week. Have a checklist of things to do each day. * Be positive - acknowledge the things that you have achieved, rather than the few that you haven't, and remind your self that you have achieved something each day. * Visualise success; think in terms of what you want, rather than the barriers that stand in the way. * Recognise that breaks are beneficial, and leave you re-motivated and refreshed. * Look after your health, if that breaks down, so does your business success. * Don't be afraid to seek out help when you need it. * Identify what motivates you - money, independence or a fresh challenge. * Take a step back, if you can't see the wood from the trees, speak to someone outside the business for a different perspective. ...read more.

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