WEAKNESS
-
Online sales contribute only 4% to overall sales.
- As it is a new hotel brand awareness level is about 42% as
compared to crown plaza which is 75%.
- Customer complaints have increased by 8% as compared to last year.
- Market share has drop by 1% as compared to last year.
- Staff turnover 58% as compared to last year.
OPPORTUNITIES
-
Joining the design hotels.
- Using the high profile events such as London fashion week
and east London design show to increase awareness and brand value.
- Introducing IMAC technology in suites.
- Improvement in the strength of traveling market.
- No direct competition in terms of ‘5 star’ boutique property.
THREATS
- Saturated boutique market.
- Easy to enter a market.
- Recovery from recession may take time.
Key findings
Our main weakness is the online sales and brand awareness which could be improve by getting hold of the opportunity such as joining design hotel and promotion in London fashion week and our greatest strength is unique design of each room by inspirational designer and it is recommended that threat such as, saturated boutique market could not be avoided but could be overcome by competitive advantage and product differentiation.
2) Mission/Vision for THE BOUNDARY HOTEL.
According to Irwin.R( class notes).
Role contribution
Business defined
Distinctive competence
Indication for future
“To provide our guest with highest standard of comfort and luxury, with help of unique service style and latest technology, provide with expected turnover to those who has trusted by financing us and keeping ourselves up to date with the changes in the market”.
3) Objective for THE BOUNDARY HOTEL.
Marketing objective:
- To improve our overall sales by 13% by end of the next year.
- To generate at least 6% return on 60m GBP worth of investment.
- To improve the brand awareness by 11% by the end of this year.
- To generate 53% return on the sales by end of 2011.
- To improve customer satisfaction by 7% by the end of 2011.
E-Marketing objective:
- To increase the online sales by 6% by end of 2011.
- To increase website monthly users from 213 to 313 by end of the next year.
- To increase sales by 7% through networking sites by end of 2011.
4) Marketing strategy for THE BOUNDARY HOTEL.
4.1) Segmentation
Diagram taken from principles of service marketing Palmer.A(2001),p105.
Key findings
Market has been segmented into two groups corporate and leisure, corporate are subdivided into international client with family and groups which comes around 31% of the market and largest segment consists of local corporate client, around 56% which are large in number and also gives more profit as they are frequent guest and the last segment is of leisure guest which comprises of family and individual which is only 13% of total market, for the time being let this segment be kept aside.
(subjected to further research).
4.2) Targeting for THE BOUNDARY HOTEL
Brand Competence
High Medium Low
High
Segment Medium
Attractiveness
Low
Diagram taken from marketing management Kotler.p (2002).p299.
Key findings
As seen from the above graph there are three segments represented as A,B,C, the volume of the bubble represent the size of that segment, which means that A which is local corporate client which are large in volume as compared to B and C which are comparatively small and also provide more business and provide.
So it is clear that we should target on the local corporate more than international and leisure guest because local corporate are high in brand competence and segment attractiveness and even if they are staying for shorter period on an average for one to three days, the rate of double occupancy is very low from 1.3 to 1.4, in other words mostly corporate guest do not share the room, which increases the occupancy rate and also they are providing consistent business to the hotel and it would be profitable to target local corporate guest.
4.3) Positioning of THE BOUNDARY HOTEL
Diagram taken from Marketing plan for service businesses Mcdonald.M and Payne.A(2006) p127.
Key findings
Positioning map shows that in terms of service it is around medium and in terms of comfort it is near to high which suggest that we need to work on the quality of service, so it is recommended to exceed the expectation of the guest and filling the gap in service as compared to other brand crown plaza only seems to be the threat as they come under bigger brand of luxury.
4.4) Positioning statement of THE BOUNDARY HOTEL
Template taken from class notes.
4.5) Marketing Strategy models for THE BOUNDARY HOTEL
PRODUCTS
- Strategy to be implemented. – may implement this
strategy.
- strategy that is not going to be implemented.
ACCORDING TO ANSOFF.I. (1957 ).
Key Findings
As from the above model we are going to focus on the two area, market penetration can done through various medium such as advertising through high profile magazine and websites which would increase our brand awareness and we can get more recognition in the business world and also by launching new loyalty program and promotion which would make the existing customer more loyal and can focus on the next area which is product development where we are going to introduce “Touchbase” technology in rooms (except suites) instead of telephone which would create a unique selling point for us.
4.6) Porters Generic Strategy:
Competitive advantage
According to Porter.M(1985);
Key Findings
The above model shows that we are going to be focus on differentiation of product on a broader scale in terms of physical attribute we already have a edge as it is a late Victorian times building. As we already are using ipad technology which needs to be upgraded to IMAC only in suites this will give us a competitive advantage over crown plaza. Introducing In room check in service will also provide the loyal guest with more facilities and it will also help to maintain the loyalty of the guest which may convert into word of mouth publicity. Maintaining “guest preference database” which will keep track of the guest needs such as non- smoking room, soft pillows, allergies and making sure that when next time the same guest checks in all the detail pop-up in the central system after entering the name, which help to exceed guest expectation and would also increase guest loyalty towards the brand and would create different perspective in the minds of the guest.
5) Marketing mix for THE BOUNDARY HOTEL
According to McCarthy.E(1960) 4p’s which were expanded to 7p’s by Boom & Bitner’s (1965).
Product: In regards to brand awareness it is going to be improve because of joining with design hotels. In room facilities such as IMAC technology is going to implemented in suites and keeping normal “Touchbase” technology for the normal rooms which would change my product completely and can effect our sales turnover positively.
Price: Pricing strategy has been unique objective with added value for a reasonable premium rate without degrading our brand.
Room rate which are quoted includes tax and service charge with breakfast.
- Corporate single 125 GBP
- Corporate double 200 GBP
- Corporate suite 350 GBP onwards (depends on the suite).
- Conference room 400 GBP per day (including breakfast).
Promotion and place: Push strategy would be suitable for our hotel as primary focus is going to be on marketing communication through internet and advertising in high end luxury magazine and travel websites where people could find us, continue to broadcast itself in London fashion week and high profile shows which is going to impact positively on the image in local community and bring more corporate clients. Introduction of distribution channels such as kiwi collection and i-escape. (www.drypen.in).
People: Hiring staff that have strong customer- service ethic and giving on job training with basic knowledge of health and safety at work and food safety. Recognizing the effort of the staff at regular interval and awarding them with suitable bonuses or increment.
Process: In room check in facilities will decrease the time and effort of the staff and will also provide the guest with efficient service and “guest preference database” which would create a unique selling point for us as knowing what the guest requires when he checks –in and we already are providing improved service in terms of room service and housekeeping.
Physical evidence: As we are already have attractive building in terms of property and as it is a new property it doesn’t require any improvement in it, except some facilities in the room.
6) Implementation schedule and Budgeting for THE BOUNDARY HOTEL(2011-2012).
Diagram taken from Quality software project management (Gantt.H) p.485.
Key findings
Above Gantts chart shows the implementation schedule and budget for next year. Total budget allocated for marketing is 125,000 GBP from which 124,300 GBP will be used on marketing and for upgrading the technical facilities in the rooms we are using 106,000 GBP which would be done in 3rd month of the year 2011, so the grand total comes to 230,300 GBP.
7) Evaluation and Control for THE BOUNDARY HOTEL
Key Performance Indicator measure
Key Findings
Our marketing plan has been designed to achieve the goal which have been set over the next one year, in terms of increasing overall revenue and sales it is going to be indicated by profit and loss statement and the balance sheet which is going to be monitored by sales and general manager as time stated and all the results will be monitored on the basis of projected versus actual and according to it the manipulation or alteration will be done in order to meet the end results and relevant concern would be discussed in the general managers meeting.
8) Contingency Plan
If the above marketing plan doesn’t behave in the manner it expected to perform we have already taken out 10% of the marketing budget and some of measure could be taken such as sales or return on sales doesn’t increase we could use market development strategy where we are going to focus on international corporate client and would be increasing more distribution channel than present. If the web sales don’t give profit as expected we would be increasing our advertising on various travels and airline web –sites. Customer satisfaction doesn’t increase as expected we would be going to run more promotions and offers such as complimentary passes of events and concerts on particular number of nights and more like this. Our sales and marketing executives will also be going locally in the nearby corporate offices and giving short overview on the hotel and also gets some business from them.
Bibliography
BOOKS:
-
Futrell.T, Shafer.D, Shafer.L (2002). Quality software project management. 4th ed.Prentice hall. P485.
-
Kotler.P, Bowen.J,Makens.J (2003). Marketing for hospitality and tourism. 3rd ed. new jersey: prentice hall. P117-143, p291.
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Kotler.P (2002). Marketing management.11th Ed. New Jersey: prentice hall. P299,P450.
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Mcdonald.M & Payne.A (2006). Marketing plan for service businesses. 2nd ed. oxford: Butterworth-Heinemann. P 127,160-163.
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Wickham.P (2000). Financial times corporate strategy casebook. Essex: pearson education limited. P380.
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Palmer.A (2001). Principles of service marketing. 3rd ed. Dorset: Mcgraw hill. P103-106.
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