Marketing Strategies for InterContinental Hotel in Muscat

This report discusses the marketing strategies for InterContinental Hotel in Muscat. It includes a SWOT and PESTLE analysis, market segmentation, SMART objectives, and recommended marketing mix. The report also covers evaluation and control methods and budget plan.

Running Head: MARKETING 0
InterContinental
Marketing
(Student Name)
2/28/2019

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Table of Contents
Executive Summary...................................................................................................................2
Introduction................................................................................................................................3
Objectives...................................................................................................................................3
Current Market & Company Situational analysis......................................................................3
SWOT Analysis......................................................................................................................3
PESTLE Analysis...................................................................................................................4
Market Segmentation.................................................................................................................4
SMART Objectives....................................................................................................................5
Recommended Marketing Mix..................................................................................................6
Evaluation and Control..............................................................................................................6
Budget........................................................................................................................................7
Marketing Budget of InterContinental Hotel (In million Dollars).........................................7
Promotional Budget Plan (In million Dollars).......................................................................7
References..................................................................................................................................9

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Executive Summary
Marketing strategy plays a prominent role in the growth and success of any business. One of
the hotel InterContinental has spread its business in most of the countries to lead in the
international market. The hotel has established its business in Muscat, Oman. They have
faced certain challenges in targeting their consumers due to high competition in the market.
The hotel has week marketing strategies that need to be redeveloped according to the level of
competition in the market. Therefore, in the following report, there will be a detailed analysis
of the environment where the hotel is doing their business according to which they would
able to prepare new marketing strategies to compete their competitors in a more effective and
efficient manner.

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Introduction
InterContinental is one of the leading hotels in Muscat that provided a variety of services to
their consumers that made them leading company in the global market. It is the luxurious
hotel that was launched in the year 1949 by Pan American World Airways. They have opened
their first hotel in Belem Brazil and then they have extended their business or portfolio in the
global market. They have been recognized at the global level due to their luxurious brand.
They offer their services in unique grace from inheritance stylishness to the borough elegant
as well as resorts on the tropical coastlines that make the hotel model product for the travelers
with perceptive tastes (InterContinental Hotels & Resorts, 2018).
Objectives
The main objective of the hotel is:
 To lead in the global market while considering as a top hotel
 To expand their business all over the world
 Compete their competitors
 Enhance consumers satisfaction
According to the objectives, the hotel is planning to refit their business according to their
targeted objectives that would help them to achieve their targeted goal in a more effective
manner. Thus, in the following report, the hotel will be deeply analyzed according to which
marketing plan will be prepared.

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Current Market & Company Situational analysis
SWOT Analysis
Strengths Weaknesses
 Intercontinental has built its brand
image in the global market
 They have adopted green engaged
sustainability management system
 They have increased the use of
offshore transaction processing
 They are managing the employee
engagement in an effective manner
 Intercontinental has adopted a weak
marketing strategy that made them
resistant to target their consumers
 The cost structure of the hotel is very
high that affected the overall running
cost of the hotel
 Intercontinental has a lack of services
diversity
Opportunities Threats
 There is the opportunity for market
growth in the developing countries as
they have taken steps towards the
development.
 New products and services can be
provided to the consumers to attract
them more in an effective manner.
 There is also an opportunity of the
growing global economy that
 The increase in the overall cost of the
hotel could be a threat to the hotel
 Fluctuation in the rate of currency in
the global market would affect their
overall profit margin
 Competition is one of the major
threats that would affect the overall
performance of the hotel (Koushik,
Higbie and Eister, 2012).

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enhances the profit margin of the
hotel
PESTLE Analysis
Political
The stability as well as the main structure of the government in the country gives a basis to
comprehend the forthcoming variations in the political environment. The power of political in
Oman is subjugated by Sultan Qaboos bin Said Al Said. The country Oman is keenly
supported the foreign direct investment to enhance the level of employment therefore;
Intercontinental hotel has to keep a close eye on the industry-wide government properties to
predict the trends.
Economic
The economic recital of Oman in the near imminent will grow due to the reason of disposable
income and enhancement in the investment of new industries such as tourism that increase
the demand for a hotel in such country (Mayhew et al., 2018).
Social Factor
The inflation rate of the country was about per cent in the year 2010 that affected the overall
purchasing power of the country at a greater level. The visitors in such country are high that
provided a healthy market for Intercontinental.
Technological

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Intercontinental has adopted high technology in providing services to their consumers that
help in targeting them as well in a more effective manner due to the reason Oman is one of
the developing countries that supports technology in their country to make them developed.
Environmental
The waste management, particularly for the components adjacent to the metropolitan cities,
has taken the initiates to enhance the importance of players such as InterContinental Hotels.
Oman has come-up with the severe standards for waste management in the metropolitan areas
that adding cost to the hotel.
Legal
The health and safety norms in Oman force InterContinental to meet such norms that affected
the overall cost to the hotel (Alexanda, Nto and Nwadighoha, 2017).
Market Segmentation
According to the situational and current market analysis, the market is divided into a different
segment for the hotel to target their consumers as they are explained in below points:
Geographic
The number of tourist in Oman is high as the experiences include sunset as well as Dhow
Cruise, mountain biking, rock climbing, paragliding, fish adventures, treks to ancient Omani
village heritage site that attract maximum consumers (Mansour, 2017).
Demographic

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The economic condition of the country is in a positive state that helps in enhancing the
purchasing power of the consumers. It has been analyzed that major source of income for
hotels and tourism industry are a German tourist (Alserhan et al., 2018)
Psychographic
The spending level of British visitors is high as they are described as British Luxury
Travellers as they spend a huge amount on luxury products that imply experiences are more
important than the things.
Behavioral
According to the recent trend in Oman, most of the visitors visited such place and spend a
huge amount in the luxurious products that give them relaxation and enjoyment in the trip as
a most luxurious traveler have spent either more than 1000 euros per head for the break of
one to six night (AlRiyami et al., 2017).
Therefore, InterContinental will target the tourist for their product and services will the high
level range of income level for their products that will make the hotel more competitive in the
market.
SMART Objectives
Specific
 Reenergize with innovative ideas
 Enhance the level of satisfaction among consumers
 Gain Market Share
 Enjoy competitive advantage over competitors

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Measurable
InterContinental has set their target to achieve at least 70 percent of the level of satisfaction
among consumers and also has an objective to enhance market share by 20 percent in such
industry.
Achievable
The employees of the hotel have agreed to enhance the percentage of sale by 25 percent that
would help the hotel to achieve 65 % of their targeted objectives
Realistic
The economic condition of the country is healthy that help in enhancing the purchasing
power of the consumers that help the hotel to achieve their desired goal
Timely
InterContinental will achieve their target within three years which is enough to meet the
requirement of establishing a deadline as well as meet their marketing objectives (Chaffey
and Ellis-Chadwick, 2019).
Recommended Marketing Mix
There are certain recommended marketing strategies that InterContinental can adopt for
growth as they are explained in below points:
 Product: the hotel should not only provide room to its consumers but also provide
some complimentary services that made them more satisfied. As they can provide free
access to swimming pool, gym with meal package, cab facilities, gaming zone, saloon

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and spa to the premium consumers that would attract maximum consumers (Loo and
Leung, 2018).
 Price: Setting the adequate prices related to the sojourn with the hotel, foodstuff will
attract a number of consumers relatively setting upsetting the high prices. Therefore,
the company should keep their price high to nominal to target a larger segment of
consumers.
 Promotion: it is the technique through which the hotel can reach to the maximum
consumers. Therefore, the hotel should adopt digital print that is effective mediums of
advertising for their refitting of the hotel in the marketplace that deliver passable
abilities to the tourist in an effective manner.
 Place: the hotel should not change its place as 9t would increase the cost. They only
need to reenergize their brand to attract the consumers at a maximum level in a more
effective manner (Pal and Mishra, 2017).
 People: These are the individual who is sanctioned to manage the undertakings that
will be executed in the business sites. Therefore, head of marketing will manage and
handle the marketing activities of the hotel, the financial team will handle finance
team, and the operation team will be more responsible because they will care for the
comfort of guest and for other issues.
 Physical Environment: InterContinental should analyze macro and
microenvironment of the market so that the adequate results can be obtained by the
hotel in a more effective manner.
 Process: under such part, apart from the services such as luxurious stay facilities, high
quality, as well as a variety of foods with beverages available is some of the extra
features that should be provided by the hotel to their consumers along with the stay
(Bruni, Cassia and Magno, 2017).

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Evaluation and Control
InterContinental Hotel will evaluate their performance with the help of key performance
indicator tool. It is the kind of method through which the hotel would able to measure their
performance. It is mostly used to monitor an operation r to focus in the aspect of the
organizational performance (Katsikeas, 2016). The hotel will adopt the following method to
measure the overall performance:
Online Rating: the option of online rating will be provided for the consumers that would help
the hotel to get know about the performance and satisfaction level among the consumers. The
consumers would able to share reviews as possible- good and bad. They are used as critical
feedback that can base improvement on.
Percentage of occupancy: it is one of the simple measures of concert for inns in the tenure
rate. It is the process in which they restrained as the ratio of accessible rooms engaged over
the definite era (Todor, 2016).
Advertisement ROI: the hotel will calculate on Return on Investment from the advertising as
well as promotions that will save the waste money of hotel on ineffective promotions as well
as advertisements.
Revenue per available room: it is one of the effective tools to measure the performance as
well as it is also the need of one to sight in the accurate framework, unhurried by the regular
daily room income help in generating by obtainable room (Saura, Palos-Sánchez and Cerda
Suarez, 2017).
REVPAR = Total room revenue / Total rooms available

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Budget
Marketing Budget of InterContinental Hotel (In Million OMR)
Particulars 1st 2nd 3rd
Sales 8000 6000 7000
Direct marketing 12000 14000 8000
Social Media
marketing
2000 4000 4000
Traditional
advertisement
3000 7000 8000
Total 25,000 31,000 27,000
Promotional Budget Plan (In million OMR)
Item
Price(excludin
g VAT)
VAT
Price
(including
VAT)
Total
Value

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Search engine
optimization
1100 100.00 1100 1100
Social media 400 80.00 480 480
Retail advertising 500 60.00 560 560
E-mail marketing 800 50.00 850 850
Flyers 400 50.00 450 450
Banners 400 70.00 470 560
Website 1500 150.00 1650 750
TOTAL 5,100 560 5,560 4,750

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References
Alexanda, K.O., Nto, C.P. and Nwadighoha, E.E. (2017) ENVIRONMENTAL FORCES AS
CATALYSTS IN ELECTRONIC-MARKETING, THE 21ST CENTURY TRENDS IN
NIGERIA. Kuwait Chapter of the Arabian Journal of Business and Management
Review, 6(6), p.43.
AlRiyami, H., Scott, N., Ragab, A.M. and Jafari, J. (2017) 9 Evaluating ecotourism
challenges in Oman. International Tourism Development and the Gulf Cooperation Council
States: Challenges and Opportunities, p.156.
Alserhan, B.A., Wood, B.P., Rutter, R., Halkias, D., Terzi, H. and Al Serhan, O. (2018) The
transparency of Islamic hotels:“Nice Islam” and the “self‐orientalizing” of
Muslims?. International Journal of Tourism Research, 20(4), pp.475-487.
Bruni, A., Cassia, F. and Magno, F. (2017) Marketing performance measurement in hotels,
travel agencies and tour operators: a study of current practices. Current issues in
tourism, 20(4), pp.339-345.
Chaffey, D. and Ellis-Chadwick, F. (2019) Digital marketing. London: Pearson
InterContinental Hotels & Resorts. (2018) Our Rich History [Online]. Available from:
https://www.ihg.com/intercontinental/content/us/en/support/about-intercontinental [Accessed
on 28/02/19]
Katsikeas, C.S., Morgan, N.A., Leonidou, L.C. and Hult, G.T.M. (2016) Assessing
performance outcomes in marketing. Journal of Marketing, 80(2), pp.1-20.

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Koushik, D., Higbie, J.A. and Eister, C. (2012) Retail price optimization at intercontinental
hotels group. Interfaces, 42(1), pp.45-57.
Loo, P.T. and Leung, R. (2018) A service failure framework of hotels in Taiwan: Adaptation
of 7Ps marketing mix elements. Journal of Vacation Marketing, 24(1), pp.79-100.
Mansour, S. (2017) Spatial concentration patterns of South Asian low-skilled immigrants in
Oman: A spatial analysis of residential geographies. Applied Geography, 88, pp.118-129.
Mayhew, L.E., Ellison, E.T., Miller, H.M., Kelemen, P.B. and Templeton, A.S. (2018) Iron
transformations during low temperature alteration of variably serpentinized rocks from the
Samail ophiolite, Oman. Geochimica et Cosmochimica Acta, 222, pp.704-728.
Pal, S.K. and Mishra, P. (2017) Portfolio of online distribution channels across mid-market
hotels: an evaluative review. Enlightening Tourism, 7(1).
Saura, J.R., Palos-Sanchez, P. and Cerda Suarez, L.M. (2017) Understanding the digital
marketing environment with KPIs and web analytics. Future Internet, 9(4), p.76.
Todor, R.D. (2016) Blending traditional and digital marketing. Bulletin of the Transilvania
University of Brasov. Economic Sciences. Series V, 9(1), p.51.