Entrepreneurial Marketing Strategies in Hospitality

This assignment delves into the realm of entrepreneurial marketing within the hospitality sector, specifically focusing on hotels. It examines various marketing strategies employed by hotels to achieve success and explores the effectiveness of these strategies in influencing sales performance. The analysis considers factors such as advertising spending, online reviews, and the role of relationship marketing in driving hotel revenue and customer satisfaction.

Running head: SALES & MARKETING PLAN 1
Sales & marketing plan for Rainbow Hotel
Name
Institution Affiliation:

SALES & MARKETING PLAN 2
Executive Summary
Rainbow Hotel located in Rotorua, is a representative of the five star brand that is within the
Distinctive Business Hotel across the world grouping. This hotel is a hypothetical case of a five
star hotel which provides special guest access to the golf course, has luxury spa services, tennis
courts, and has a high quality services which are seen throughout the hotel especially in the
rooms, lobbies and other facilities. In this hotel it is characteristics in the services which are
exhibited in the five star hotel.
Differentiating on the types of the business services which are offered in the hotel, from the other
competitors can assist not merely in building of the Rainbow hotel brand over-all , but will help
appeal to frequent business travelers who are most frequent high level personal services as well
as recognition than they could receive at the competitors five star hotels. This would provide
Rainbow hotel with opportunity to be able to leverage on the core competencies in regards to
servicing the business individuals to this luxurious environment.
In this Hotel sales and Marketing plan it is designed to cover to be implemented and cover the
period of 2018-2022. The structure of the plan will incorporate the marker overview which will
focus on the porters five Forces, PESTEL and the SWOT analysis. Moreover, the report will
identify on the marketing objectives which will address SMART objective and address on the
issue which were raised on the situational analysis. Additionally, the plan will incorporate on the
marketing mix strategies through addressing on all the relevant marketing mix and link them to
the objectives. The plan will also incorporate the budget, implementation and the control aspect.

SALES & MARKETING PLAN 3
Introduction
This report is about the sales and marketing for Rainbow Hotel which is a five star located in
Rotorua. The business provide exceptional services in this industry, and it has been a market
leader which has been competing with some of the other competitors in the Industry (Abbey,
2014). In this sales and marketing plan it is for the period between 2018- 2022. Some of the
attributes it will address are the growing need to increase the high rated businesses, the increase
in the market share, segmenting wisely in the depth analysis in order to gain the competitors
business as well as laying down on the processes so as to ensure the customers are satisfied. The
objective of this plan is to give this business a competitive edge from the other rival
organization, therefore, it will look at the ways how they will address this issues considering it
operate in luxurious environment. This report has been structured on various in order to address
these issues fully these are; situational analysis, marketing objectives, marketing mix strategies
and budget, implementation and the control.
Market overview/ Situational analysis.
Rainbow hotel is amongst leading five star hotel which offer luxurious services in Rotorua.
Nonetheless, due to the current market which is somehow depressed, as a result of the economic
downturn and the restrictions from the hotel industry, this threat could be regarded to be critical
to the corporate industry and can be considered as short to medium term (Assaf, Josiassen,
Mattila & Cvelbar, 2015). Rainbow hotel need to continue to focus in the delivery of the
exemplary luxurious services, at affordable rates and be able to develop customer relationship
which is beyond their one stay. The situational analysis will focus on the Porters Five Forces,
PESTEL and SWOT.

SALES & MARKETING PLAN 4
Porters Five Forces
The use of this model is to attempt to realistically access the potential levels of the aspects of
profitability, opportunity as well as the risk which are based on the key factors that are within the
hotel industry (Blal & Sturman, 2014). The following shows the analysis which has been carried
out on these factors on porters five and how each affect Rainbow hotel.
Figure 1: The diagram show Porter five forces.
Threat of New Entrants.
Rainbow Hotel has a medium pressure when it comes to this factors. Being the leading five star
hotel it is one of the best which clients utilizes their services and prefers most (Blal & Sturman,
2014). The entry barriers is relatively low; as there is no clients switching cost and the
requirement of the capital is zero. Rainbow Hotel is seen by many as a brand, and it has been

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held significant market share for long time now and the customers have been royal are they are
not likely to try any new brand.
Threat of the substitute services.
On this factor it is medium to high pressure within Rainbow hotel. There has been various five
star hotel which provide similar services and amenities in the market and Rainbow does not
really have an entirely unique services (Bruni, Cassia & Magno, 2017).
The bargain power of the buyers.
This factor is of low pressure to Rainbow hotel. The business has top end brand perception from
the customers and there is high service delivery standards which they offer (Bruni, Cassia &
Magno, 2017). This has resulted in the long term business potential and the overall usage of the
brand has been exceptional.
The bargaining power of the supplier.
This factor is low pressure towards the Rainbow hotel. The organization has a long term
relationship with the suppliers and most of the time the business usually buy the products they
need in bulk from their trusted suppliers (Bowie, Buttle, Brookes & Mariussen, 2016). Moreover,
there is flexibility for the suppliers to enable them meet the demand.
Rivalry among existing firms
On this aspect it is at high pressure to Rainbow hotel. There are other five star hotel brands in the
market which have become popular such as Riverview hotel because of the luxurious services
which they offer their customers (Chen, 2015). Nonetheless, this brand has failed to reach
success which Rainbow hotel has enjoyed over the years.

SALES & MARKETING PLAN 6
PESTEL
The current market environment seems to be very volatile with the following forces changing on
the dynamics of the market.
Political
The present state of the politics in Rotorua is extremely unstable with a particular group of the
politician working to get the region passed to be a separate state (Chen, 2015). In this situation,
there may be situation in which MNEs pull off their investment around the city which may affect
the hotel business. Nonetheless, on the other hand, the state may likely gain state capital, hence it
is going to attract additional investment. Thus generating a lot more business for the hotels.
Economical
The regional economy is encountering ripples of the economic intractability which has impacted
on the Rainbow hotel significantly.
Social environment
Rainbow hotel has engaged themselves to the social activities such as the CSR. They have
channeled part of their salaries to the community projects which will enable them to grow
significantly as well as help those who are very needy (Chen, Yao, Kotha, 2009).
Technological environment
There has been continuous improvements when it comes to the technological aspects in Rainbow
Hotel. They have also updated on some of the technology they are using to be able to maintain
on their services superiority over the competitions (Dollinger, 2008). This has enabled them to
stay ahead of the competitors.

SALES & MARKETING PLAN 7
Ecological
Rainbow hotel has acquired different initiatives for the purpose of the sustainability. Some of
these initiatives are reduction of the waste, reusing and recycling, monitoring constantly of the
gases, along with the oil and electricity usage (Espino-Rodríguez & Rodríguez, 2017).
Legal environment
When there is unpredictable future in regards to politics, the legal environment would be
subjected to the various controversy since there would be new legislative regulations which will
surface into play once the government has given verdict (Espino-Rodríguez & Rodríguez, 2017).
SWOT analysis
Rainbow hotel has various advantages which they could leverage on their benefit and
disadvantage which need to be looked at.
Strengths
 It is a strong nationwide presence and
recognition.
 It has highly skilled workforce with
the first mover advantage.
 The business has process driven in the
guest servicing.
 They meet and maintain the
expectations of the clients in regards
to accommodation and services along
with service deliverables.
Weaknesses
 There is inefficient workers reward
system.
 There is limited employee’s strengths
and hence long working hours for the
employees.
 There is limited funding for
promotional activities.
 There is limited knowledge of the
brand especially in the international

SALES & MARKETING PLAN 8
markets.
Opportunities
 There are no direct competition which
exists at present, in regards to five
star.
 There is a strong, long term
relationship which is established with
the suppliers.
 There is returning growth in the
market after a period of slump
(Espino-Rodríguez & Rodríguez,
2017).
Threats
 There is competition which has been
developed by the new entrants in the
market.
 There is unstable state government.
 There is rise in inflation which has led
to increase in raw materials and wages
of employees.
The main problems which the business is encountering are on competition which has developed
by the new entrants, along with the issue of inflation which is making rise in the wages of the
raw materials and employees (Gross, Carson & Jones, 2014). On the aspect of opportunities
there is no direct competition and the growth in the business is increasing after stagnation of a
period.
Market segmentation
Rainbow hotel is intending to target the market segment market since they have various clients in
different segments.

SALES & MARKETING PLAN 9
Figure 2: Market segmentation
Each one of the market portion is coded and it is stated to each segment. According to the market
feedback, the resident guest feedback, as well as the information from the competition workers
and meeting the competition of the guest the data can be verified with the use of the verified
figures in the markets and presented in projection graphs as below given the segment mix of
competitive set in regards to the level of occupancy contribution as well as revenue contribution
(Katz & Green, 2009).

SALES & MARKETING PLAN 10
Figure 3: Graphical representation of segments.
Marketing objectives
The following are the objectives for the Rainbow hotel which are aligned in the situational
analysis (Lam & Harker, 2015). On the competitive objective Rainbow hotel intends to achieve
the dominance in the market through achieving the highest RevPAR premium when it comes to
the competitive set.
On the aspect of financial objectives they intends to achieve the budgeted revenues for the
financial year 2018-2019 of 10 million dollars.
Marketing mix strategies
1.1 product strategies and tactics
Currently the hotel has been utilizing the product marketing strategy (Ye, Law & Gu, 2009). This
has been pegged with the aspect that they provide high quality facilitates which are accompanied
by exemplary personal services that have been differentiated from the competition quality with
the overall brand strategy that has been successful when it comes to generating of the high levels
of the repeat business from the customer (Abbey, 2014). The pricing strategy has worked for
them since it has been consistent with differentiation objective. The promotion facilities
strategies are not working because the business currently do not enough funding to channel more
resources on this aspect of the business.
The marketing model which Rainbow hotel is as follows;

SALES & MARKETING PLAN 11
Figure 4: 7P model
This sales and the marketing plan utilizes the above 7P model in order to attain on their
objective.
1.2 Recommended course of action.
To increase on the penetration of the market Rainbow Hotel needs to utilize the Ansoff products
growth matrix and they need to hold their position through holding the GE portfolio matrix
(Sidorchuk, 2015). This will help them to hold their position through holding on their current
share and margins. This is achieved through maintaining the value of the customer, maintenance
of the communication with the market and continuously improvement of their services and
products.

SALES & MARKETING PLAN 12
Figure 5: The diagram shows Ansoff’s Matrix
This matrix shows the current position of Rainbow hotel in the market. Their product exists to
the existing markets and the use of this strategy will help them penetrate the market.
Figure 6: Current position of Rainbow hotel in the market

SALES & MARKETING PLAN 13
The GE portfolio matrix highlights the positions of various hotel. The circle which carries on the
revenue share shows for each hotel. Rainbow Hotel has high competitive edge but it is located to
the market which are unattractive as a result of low demand (Solé, 2013). Rainbow need to
maximize the profit while they maintain the same position.
1.3 Aims of the strategies
The aim of Ansoff’s matrix would to show the current position of the hotel and how they could
penetrate the market. On the GE portfolio matrix would be used by the hotel on how to maximize
on their profits while they are maintaining the position.
Budget, implementation and control
Budget
2018 2019 2020 2021 2022
Printing
advert.
10600 11400 12565 11665 10200
Internet
advert.
21500 23120 25433 12790 21322
Public
relations
6700 5433 6788 7665 8750
Total sales
and
marketing
expenses
$38800 $39953 $44786 $32120 $40292

SALES & MARKETING PLAN 14
Implementation
All the figures would be monitored to the current basis which are in regards to the projections
versus the actuals along with the ongoing plan which will be altered to react to and whenever
feasible so as to anticipate the external changes to the environment (Solé, 2013). The annual
outcome would be examined at the meeting of the General Manager in which the structure of the
plan for the 2018-2022 will be established.
Control
The sales and marketing plan has been structured to enable us in achieving the strategic goals
which has been set in regards to increasing the overall revenue and differentiating on the
products and services from the competitors (Viegas, 2014). The marketing team will ensure that
the plan is implemented to the best of their abilities with the highest level of accuracy as well as
efficiency.
Conclusion
Rainbow hotel in the competitive industry and they need to ensure they have a strong sales and
marketing strategy to remain in the business. The company has thrived and operated for long
time and they have gained experience in regards to trends in the market, behavior of the
company and practices in the industry. The company is a financial source as compared to the
competitors which is coupled with management who are competent leading to a successful
expansion and acquisition in new market. In order to remain competitive the company needs to
work on their marketing strategies and tactics discussed to enable them remain an independent
business.

SALES & MARKETING PLAN 15
References
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Institute.
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