Marketing Plan for Hospitality and Tourism Business

This marketing plan outlines the strategy for a hospitality and tourism business, including competitive analysis, marketing budget, and operations.

Marketing plan for
Hospitality and
Tourism Business

Table of Contents
Executive Summary.........................................................................................................................1
INTRODUCTION...........................................................................................................................1
Summary of the business and their products or services............................................................1
Competitive analysis and current situation.................................................................................2
Marketing strategy including strategic position statement and business canvas model.............4
Marketing budget........................................................................................................................4
Marketing operations involving a rationale for the sales and promotional activities.................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................4
Appendix .........................................................................................................................................4

Executive Summary
INTRODUCTION
Marketing plan is considered as a report which outlines the firm's marketing strategy for
the coming month, quarter or year. This is helpful to formulate products as well as services
within business which meet the requirements of the targeted market. Effective marketing aids
organisation's consumer to understand why its goods is better or different from competition. For
this report the chosen company is InterContinental Hotels Group which is a fastest growing
British multinational hospitality firm. Its headquarters is in Denham, UK. The purpose of this
report is to explain about the business and their products. Competitive analysis as well as current
situation applying application of analytical tools. Marketing strategy with strategic position
statement and business canvas model. Apart from this, Whole marketing budget and operations
including rationale for sales and promotion activities are also mentioned in this report.
Summary of the business and their products or services
InterContinental Hotels Group is famous by the name IHG and is considered as the one
of the world's fastest growing hotel having headquarters is in Denham, UK. It was founded in
year 2003 and their annual revenue is $1.8billio. Its competitors are Hilton, Four season and
many more. It have approx 400,000 staff as well as 5,656 open hotel which has 842,759 rooms,
1,916 pipeline hotels which has about 278, 712 rooms. It is listed on London stock Exchange and
members of FTSE 100 Index. They run hotels in three different manner such as a franchisor,
manager and on owned and leased basis. It concentrate upon mainstream, upscale as well as
luxury segments of hotel industry. It targeted the brands portfolio personally tailored to
accomplish the requirements. It basically based on market maturity, preference of owner and in
some cases the specific brands. Mature markets like Europe and Americas comply the franchise
model where as managed model is mostly applied into growing market like Greater china.
Moreover it manages the system funds for the advantageous of whole hotel in IHG system with
the aim of enhancing revenues. Overall assessment as well as contribution paid through hotels in
the funds are expend on marketing, reward club loyalty programme and guest reservation
system. The system fund is planned to operate at break even. Respective company are largely
cash generated as well as they has three fundamental usages of cash such as invest into business
to drive growth, maintain sustainable growth and return surplus funds to shareholders. As from
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year 2003, they has returned approx $13.6 billion to shareholders. Totally it owns seven hotels
such as Holiday Inn, Even hotels and many more. Its operating profit is approx $ 816 million.
They asked to develop local websites for its hotels like Crowne Plaza hotels. The products or
services of respective company are hotels, resorts.
Competitive analysis and current situation
For the competitive analysis, porters five forces analysis is conducted. This models is
introduced by Michael E. Porter in year 1979. the aim of this is to evaluate as well as assess the
competitive positioning and strengths of the business enterprises. This has three horizontal
competitive forces such as threats of new entrants, threats of substitute product or services and
competitors among existent company. As well as vertical forces involves bargaining power of
suppliers and buyers. It shape out the competition in any sector. The whole competitiveness of
the industry decrease when these force minimise profit. Using this model respective company
ascertain the industry attractiveness as well as knowledge about their competitive positioning
into market place. It can be useful to create few effective decision which can develop
InterContinental Hotels Group performance.
Threats of new entrants:
This shows that new player of the market enforce threats to the existing one. In case the
industry will be profitable as well as barriers for entering into sectors will be low, this will grab
the attention of more players. Thus, threats of new entrants will be high. New entrants into
lodging bring creation, new manner of performing things as well as give pressure upon
InterContinental Hotels Group. By lower price strategy, minimise costs as well as facilitating
new value proposition to the clients. So, respective hotel have to handle whole these challenges
and make effectual barriers to safeguards their competitive edge.
Threats of Substitute product or services:
The availability of substitutes goods or services develop the competitive surroundings
that are challenging for InterContinental Hotels Group and another existing players. High threats
of substitutes means that consumers can utilise alternative product or services from any another
sectors for accomplishing its requirements. When a new product or services accomplish the same
requirements of the consumers into various manner;, industry profit affects. For example: service
such as google drive, drop box and many more are the substitutes to hardware drives. So the
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threats of the substitutes product or services is high in case they provide a value proposition
which is uniquely distinguished from current industry offerings.
Rivalry among the existing competitors:
In case the competitors among the existing players within industry is intense then they
will reduce price as well as minimise the whole profitability of the particular sectors. This shows
the numbers of rivals which provide hard competition to InterContinental Hotels Group high
rivalry display respective firm face strong pressure from competitors that can limit one another's
potential of the growth. This force is low within respective hotels as there are limited market
players, clear market leader, goods are highly differentiated as well as every market player
targets various sub segments.
Bargaining power of buyers:
Buyers demands are encroaching day by day. It want to purchase effective products at
low prices. This occurs pressure upon InterContinental Hotels Group profit into long run. The
most strong as well as smaller consumer base of respective hotels has high bargaining power of
clients and more capability to seek enhancing offers and discounts.
Bargaining powers of suppliers:
About whole firm within lodging sectors purchase its raw material from several suppliers.
Suppliers into dominant position can reduce the margins that InterContinental Hotels Group can
gain into market area. Strong suppliers within service industry utilise its negotiating power for
extracting high prices from company into lodging sectors. The whole affect of higher bargaining
power of suppliers is that its decrease the whole profit of lodging.
Current situation of InterContinental Hotels Group:
InterContinental Hotels Group is the fastest growing hotel in the world. It have approx
350,000 staff. As per the report of InterContinental Hotels Group, currently they has approx
5,656 open hotel and 1,916 pipeline hotels. Its total revenue is about $4,337 million, operating
profit is $566 million. Open rooms in respect of region are Greater china 14%, EMEAA 25% and
Americas 61%. Group revenue in context of regions are Americas 54%, Greater China 7%,
Central revenue 9% and EMEAA 29%. Moreover, now a days it operates into three different
manner that are franchisor, manager and owned basis. It owned approx seven hotel such as
Holiday Inn, Crown Plaza and so on. Currently its main focused in on main stream, upscale as
well as luxury segment of the hotel sector. Therefore, the main stream international global
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segment is $ 115 billion and potential for growth is $65 billion. Upscale Global segment is $40
billion and it can be growth potential to 2025 will be $ 20 billion. Luxury global segment is $60
billion as well as its potential for growth to 2025 is $35 billion. Because of their asset light
approach, the number of managed, leased and owned hotels they minimised dramatically from
180 hotel in 16 years ago for just handful today. Its international networks of the hotel owners in
considered as one of the biggest strengths. Also, it performs with the IHG Owners Association
that presents interests of approx 3,400 hotel owners as well as operators in all over world. Since
year, 2003 till now that has returned in about $13.6 billion to shareholders.
Marketing strategy including strategic position statement and business canvas model
Marketing budget
Marketing operations involving a rationale for the sales and promotional activities.
CONCLUSION
From the above report it have been concluded that marketing plan is helpful to formulate
products as well as services within business which meet the requirements of the targeted market.
In marketing plan document of respective company, their business operations as well as the
product or services are summarised. Competitive analysis is performed to evaluate as well as
assess the competitive positioning and strengths of the business enterprises. Obtain knowledge
about their current situation with the help of analytical tools. Strategy of the market which
involves strategic position statement as well as the business canvas model is performed to
develop the concentration and clarity about the business achievement. Whole marketing budget
is formulated to know about the estimated funds. Moreover, the marketing operations of the
company.
REFERENCES
Books and Journal
https://www.ihgplc.com/about-us/how-our-business-works
Appendix
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