Hotel Marketing Plan Sample

ASSIGNMENT CODE: 9440

DATE OF COMPLETION: 24 MAY 2012

WORDS: 2295

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Contents 1. Introduction ............................................................................................................................................... 1

2. Current market situation ........................................................................................................................... 1

2.1 Marketing Information ........................................................................................................................ 2

2.2 Customer Segments ............................................................................................................................ 2

2.3 Competitor Analysis ........................................................................................................................... 3

3. Key Opportunities ..................................................................................................................................... 3

4. Promotional Plan ....................................................................................................................................... 4

4.1 Objectives and issues .......................................................................................................................... 5

4.2 Marketing Mix strategy ....................................................................................................................... 5

4.3 Action program ................................................................................................................................... 6

4.4 Evaluation and Control ....................................................................................................................... 7

5. Conclusions and Recommendations ......................................................................................................... 7

References ..................................................................................................................................................... 8



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In this marketing plan, hotel selected is “The Millennium”. This plan will also analyze the

promotional strategies adopt by the company.

1. Introduction

This marketing plan is made to help the organization to take strategic decisions to bring

an increase in revenue figures. To have an edge over competitors and to gain more market share,

various techniques can be used like media advertising and attractive schemes. Conduct of an

effective marketing plan is important so that PESTLE analysis can be done which will help in

evaluating macro-economic environment and also SWOT analysis to assess strengths and

opportunities to increase sales. The Millennium and Copthorne are a luxurious hotel situated in

Asia, Australasia, Europe and North America. In London, it is located in Grosvenor Square. And

1. Political analysis: it explains the government attitude towards an industry. This analysis

helps in identifying tax policies, competitive and safety regulations and employment laws

of the country’s government.

2. Economical analysis: the analysis guides about stages of business growth cycle which

will give a synopsis of inflation, interest and growth rates, accordingly an organization

can successfully plan its activities.

3. Social analysis: this provides knowledge about customers living standards, their income

and health consciousness etc. The hotel can plan modern facilities by understanding

fashion hypes of consumers.

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4. Technological analysis: through this, company will be able to adopt the modern and

innovative techniques introduced in the market. It provides awareness about information

technological changes. The analysis suggests about the type of manpower needed to

implement new technology and also trainings required by them.

5. Legal analysis: As it gives information about legal environment in which the firm

sustains. The hotel can prepare its recruitment policies, health and safety measures

essential to sustain in a particular country.

6. Environmental analysis: Analysis of weather and climatic change in the country will help

hotel industry to plan their services and facilities accordingly (Lingham, 2008).

2.1 Marketing Information

Correct and substantial information form an important facet for an organization in

today’s dynamic business scenario. A company should have adequate knowledge about the latest

trends in hospitality industries regarding supply of services, demands and price changes also

policies to pull customers, should be amended keeping in consideration their changing demands

(Luck and Lancaster, 1986). To forecast about the success of business in the future, a marketing

manager has to consider the economic indicators of the country in relation to nation’s economy

(Ritchie and Ritchie, 2002). One more consequence of marketing information is caused by

different complexities in today’s marketing processes. Earning a rate of five star, the Millennium

hotel serves across nations keeping in consideration the information generated regarding their

living standards, income, customs’ and traditions. As markets are expanding, an organization

also needs to be very aware with its competitor’s policies and strategies. The hotel evaluates past

annual reports to identify its growth rate, conduct regular surveys for customers to understand

their changing behaviors. The firm also keeps updates of GDP, GNP and inflation rates of the

country to enhance about success of their business. Thus, these are effective methods used by the

company to have an edge over its competitors.

2.2 Customer Segments

The organization spread its services to three types of customer’s i.e. old age, business

tycoons and leisure guests. With the help of marketing information, the hotel is proficient in

fulfilling needs of its clients (Gilmour, Borg et al., 1971). Like, it provides sitting arrangements

near to pool site for old age couples in order to have mental peace. Several arrangements for



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conferences and business meetings through new equipments such as white board; projectors etc

are offered to meet wants of business tycoons. And, for their leisure guests, it renders various

relaxing and entertaining facilities for instance, spa, health club, casino, bar, candle light dinner,

sauna bath, pool side sleeping chairs etc. The mentioned services of the Millennium hotel will

definitely add to its revenue. As it uses strategy of customer segmentation to understand the

nature of particular types of clients and then cater their demands, this act show the firm’s

potentials for success in near future (Peruzzi, 2010).

2.3 Competitor Analysis

This is done to analyze the top three or five competitor’s strategies. The basic objective of any

company through this analysis is to identify the services being offered by competitors and their

3. Key Opportunities

SWOT analysis is the best method to identify opportunities of a company to increase its sales.

1. Strengths: in the year 2010, hotel successfully improved its profit before tax by 57% to

£128.6 million, which was measured £81.9 million in 2009 and earnings per share up

34.9% to 30.9 pence, which was 22.9 pence in 2009. The hotel also increased its revenue

by 10.0% to £743.7 million.


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2. Weakness: due to changing demands of customers in the market for food and hospitality

services, revenue of the hotel increases by 5.9% over the year to £628.7 million.

3. Opportunities: from time to time hotel organizes various trade fairs and as a result it

enhances the opportunities for success and growth in the future. Such shows increase the

chances of rising in sales revenue.

4. Threats: the Millennium faces threats from Hilton, Sheraton, Hyatt, Claridges and

Premier Inn (Bohm, 2009).

Hence, the hotel should keep control over costs to increase its revenue per sales. It can be

done by balancing demand and supply factors. Raw materials acquired to produce services must

be purchased in needed quantity. So, remaining amounts can be utilized to meet changing desires

of the consumers. And, at the same time it must maintain updates of cost control measures uses

by its competitors, which helps in implementing more innovative methods. Through this, hotel

would be able to increase its sales for the year.

4. Promotional Plan

It is an essential part of executing marketing strategies and guarantees to meet goals for

the year. Without including this in marketing plan, all hard work could go to waste. The hotel

management decided to adopt two new promotional schemes in its processes. In the first scheme,

they planned to offer theme based suites on the following subjects i.e. music, sports, funky,

traditional and royal to their guests. In the music room, there will be an effect of sounds

everywhere including bathrooms. Sports room will provide them pitch at the bed side and several

types of indoor games. In funky one, an infrastructure will be like folding beds, tyre shape table

for TV. Traditional room designs will offer a mixture of cultures such as UK, Indian, Chinese,

Japanese etc. The royal theme will exhibit look of a palace.

The second scheme is prepared for corporate customers, in which the hotel manager

decided to make contracts with big firms. If companies regularly books room for their employees

in a hotel, they will enjoy some discounts. These schemes may help management in rising sales

for the year (Hall, 2008).



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4.1 Objectives and issues

The main objective of this plan is to achieve an increase in sales by 20% in the coming

year. This plan can be put on the ground by using SMART acronyms (Specific, Measurable,

Achievable, Realistic and Time Framed).

Specific - the plan is based on schemes which focuses on all three segments i.e. old age, leisure

and corporate customers.

Measurable - target of this plan is to increase 20% of sales which means £25.72 million in

Sports room- by 5 %

Music rooms- 7%

Funky rooms- 8%

Traditional rooms- 10%

Royal rooms- 12%

With this, promotional plan offers 5 to 10% discount to the corporate customers to gain their

loyalty and regular business.


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Promotion – the millennium hotel is a luxurious one, and its customers also belong to high class .

So, hoardings can be placed to attract HNI customers like airports, events etc. Banners showing

the current schemes can be put in front office area. And to attract corporate ones, business

magazines are the best option.

Place – bookings can be made available through various travel agencies such as America Israel

Travel, Lotfi Hammad Fly Well Travel and Affordable Tours etc.

Effects on process and people:-

Processes - It will definitely affect the present way of working. The hotel has to change its

serving method, attending styles and infrastructure to match with demands of the promotional

schemes which in turn requires investment.

People – According to this plan, hotel will require people belonging to different cultures to cater

the demands of traditional rooms and to deal with royal suit customers, it should have staff

which have some relevant experience of the same work. So, overall efficient training would be

needed to implement set schemes properly.

Physical evidence – Changes because of adopting the mentioned plan will be noticeable

(Marketing- The Marketing Mix, n.d).4.3 Action program

Board of Directors

MD / CEO

HR manager

Business

Development officer Projects manager

HR executives

Marketing / Sales

Construction /

Designers

First approval will be taken from board of directors for implementation of the plan. Then

Managing director and CEO will allot authority to HR, BD and project managers to make

actions. And these will give responsibilities to their executives to follow the actions. HR



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department will focus on sourcing of trained staffs. BD executives stress on marketing of the

schemes to target customers, and for this, they will take help of advertisements. Designers will

work under the guidance of Project managers, to change infrastructure within the hotel. Food and

beverages section will look for the type of stuffs and drinks to be needed. Financial unit will

stress on the ways to collect funds. Cost control area will work on methods to control extra

expenditure and maintain the level of cost.

This plan will be effective from 1st January 2012.

4.4 Evaluation and Control

Management will need to consider capital and working staff required to adopt mentioned

schemes. Regular cash flows for expenses of the plan must be recorded by accounts department.

And they should provide information of unwanted expenses if any. Through this, managers

would be able to evaluate their activities. But this plan also includes some limitations like,

availability of trained staffs, adequate resources, capital etc.


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References

1. Lingham, L., 2008. Managing a Business: PESTLE analysis in hotels. [Online] Available at:<http://en.allexperts.com/q/Managing-Business-1088/2008/1/PESTLE-analysis-hotels.htm>. [Accessed on 24 May 2012].

2. Withrow, J., 2006. Competitive Analysis: Understanding the Market Context, [Online] Available at: <http://www.boxesandarrows.com/view/competitive_analysis_understanding_the_market_context>. [Accessed on 24 May 2012].

3. Sheraton Heathrow Hotel, 2012. [Online] Available at: <http://www.sheratonheathrowhotel.com/?PS=EAME_aa_Starwood_NWE-293_Google%20IN_heathrow%20sheraton%20hotel_071411>. [Accessed on 24 May 2012].

4. Claridges Luxury Hotel In Mayfair. 2012. [Online] Available at: <http://www.claridges.co.uk/>. [Accessed on 24 May 2012].

5. Millennium Hotels and Resorts. 2012. [Online] Available at: <http://www.millenniumhotels.co.uk/millenniummayfair/index.html>. [Accessed on 24 May 2012].

6. Luck, D. and Lancaster, G., 1986. E-CRM: customer relationship marketing in the hotel industry. Managerial Auditing Journal, 18 (3) pp.213-231.

7. Ritchie, B.J.R. and Ritchie, B.R.J., 2002. Tourism Management: A framework for an industry supported destination marketing information system. [Online] Available at: <http://tourism.wu-wien.ac.at/lehrv/lven/04ss/literature/ritchie_destmarketing.pdf>. [Accessed on 24 May 2012].

8. Premier Inn, n.d. [Online] Available at: <http://www.premierinn.com/en/london-hotels.html>. [Accessed on 24 May 2012].

9. Gilmour, P., Borg, G. et al., 1971. Customer Service: Differentiating By Market Segment. International Journal of Physical Distribution & Logistics Management, 7 (3), pp.141-148. [Online] Available at: <http://www.emeraldinsight.com/journals.htm?issn=0960-0035&volume=7&issue=3&articleid=1694189&articletitle=Customer+Service%3A+Differentiating+By+Market+Segment&>. [Accessed on 24 May 2012].

10. Tutor2u, n.d. Marketing - The Marketing Mix. [Online] Available at: <http://tutor2u.net/business/gcse/marketing_strategy_marketing_mix.htm>. [Accessed on 24 May 2102].

11. Richmond, A., 2012. A better way to track your progress. Setting SMART Goals. [Online] Available at: <http://www.career-intelligence.com/management/SmartGoals.asp>. [Accessed on 24 May 2012].

12. Hall, A. J., 2008. Developing a Promotional Plan. [Online] Available at: <http://www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/agdex3443>. [Accessed on 24 May 2012].

13. Bohm, A., 2009. The Swot Analysis. GRIN Verlag. Available at: <http://books.google.co.in/books/about/The_Swot_Analysis.html?id=1cGnPy9H7XUC&redir_esc=y>. [Accessed on 24 May 2012].



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14. Peruzzi, N., 2010. Customer Segmentation – An Overview. [Online] Available at: <http://researchaccess.com/2010/08/customer-segmentation-an-overview/>. [Accessed on 24 May 2012].


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