Marketing Strategies for Hospitality Industry PDF

Marketing Plan For
Hospitality

EXECUTIVE SUMMARY
This report mainly summarize that essential documents of marketing plan, competitive
analysis and current situation that includes appropriate analytical tool to determine the markets
trends. This summary also includes strategies position statements and business canvas model that
is helpful in making marketing strategy. Marketing budgets, summary that includes rational for
sales and promotional activity is further helpful in conducting various operation in profitable
manner.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
2. SUMMARY OF THE MARRIOT INTERNATIONAL.............................................................1
3. Application of Analytical tools....................................................................................................1
4.Comparison and benefits between Strategic Position Statement and Business Model Canvas. ..6
5. Marketing budget ( non- calendered)...........................................................................................7
6. Marketing operations including rationale for the sales and promotional activities ....................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Hotel and restaurant management includes entertainment, commercial ships for
destinations, tourist attractions, accommodation, conference and lodging facilities, refreshments
etc. it contributes to economic development by increasing the country's income. In present
environment service sector contributed valuable aspects to people (Avraham and Ketter, 2016).
Living standards of individuals are enhancing on a massive scale around the borders. This study
includes the promotional schedule paper wherein the quantitative instrument has been researched
in order to evaluate the market situation properly. Marriott international is the organisation taken
to undertake this study. It provides class leisure, accommodation, conference, hospitality and
hotel management services across the world. Marketing costs is developed with a quantitative
ratio to compute a brief concept regarding the current expenditure. In addition, the business
Canvas model is compared over other systems and their advantages are noted with analytical
approach. The market conditions and push them to make modifications in their policies
accordingly analysed with strategic tools. In relation, multiple sales instruments, such as media,
social media platforms, substantial handing, are used to sell their products or services. In order to
increase branding quantity, these instruments are being used to achieve their prospective clients.
2. SUMMARY OF THE MARRIOT INTERNATIONAL
Marriott international retains great legacy form decades. It is divided in two business as
Marriott Corporation and Host Marriott. The business mainly operates four major sections as
North American full lodging services, International hospitality services, North American Limited
service lodging. Key branches and hotels are located in Anaheim, Baltimore, Boston, Cancun
hotels, London hotels, Chicago Hotels and Dallas hotels. It provides clients services like business
meetings, weddings, group travel and social events, meetings and events overview. Marriot
Bonvoy is one of the latest programme initiated with best offers and class accommodation
services. Its elite services are creating a difference and setting new benchmarks for clients for
better accommodation services.
3. Application of Analytical tools
SWOT analysis:
It is detailed analysis of an organisation to determines its internal strength and weakness
along with external opportunities and threat. SWOT analysis evaluates organisation's competitive
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position and formulate strategies plans (Baker and Magnini, 2016). The main purpose of the
SWOT assessment is to assist organisations create complete understanding of all the variables
engaged in the choice making of company. It is a internal as well as external data that helps to
develop the business strategies. SWOT analysis of Marriott international is explained as under:
Strengths:
Loyal Customer base: Marriott international provides the valued services to its customer
in order to maintained long lasting relationship with its customer. Company understand the
customer need and provides the quality services to them. Management of the company build the
strong relationship for the future with its customer so they return back with this organisation.
Marriott international has a strong brand name in the competitive market. Its customer base are
also huge in numbers. All these point are separate it from the competition.
Brand Recognition: Marriott international provides the best possible services to its
customers in the terms of food quality, accommodation, best location, best facilities and other
services. Company has a brand image in the hospitality service market. Marriott international is
providing the hospitality services to all location in United Kingdom and covers the market area
of all other nation like Africa, USA, Asia. Company is well known in the market for its luxurious
hospitality services (Dibb and Simkin, 2013).
Development in Asian market : Organisation's business is spread to all over world but
it wants to be broader in Asian market. Marriott is now capturing the Asian market in hospitality
services at ample scale. Customer base can be raise by franchises its brand services It may
increase the revenue as well as profit of the organisation.
Weaknesses:
Lack of flexibility: Business activities of the Marriott international are stiff.
Management can not have control on the services of the firm. As company is working at large
scale, It is difficult to adopt the social environment of various location and predict the rising need
of customer (Guaracino and Salvato, 2017).
Developing sector: Marriott international is not developed at certain location like United
Kingdom, Asia. Company is adding further services as per recommendation of the local
customer. Service organisation needs to adjoin some more facilities in order to luxurious hotel
services.
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Dependency on US region: Marriott international is over dependent on the US market
as company is capturing most of the hospitality service market in US. Organisation is restricted
to US market and not able to expand its particular services to other region.
Marriott Controversies: Company's brand image can be diminish by such controversies.
One of the latest controversies is about data hacking of personal Wi-Fi of a customer.
These are the area where Marriott international need to improve (Lane, 2016).
Opportunities:
Focusing on research and development: Marriott international is continuously focus on
fund investment in research projects to developing some more region to introduce the luxurious
services. This type of research is made to the customers needs and preferences as per the
geographical region (Hudson and Hudson, 2017).
Shifting of the consumer behaviour: Marriott international knows the interest of the
consumer in hospitality services. Now customer are more open to use these services while
travelling with the family. This trends of using services are increasing day by day.
Merger and acquisition: Marriott international is ready to acquiring local business
services to reduce the uncertain level of risk by eliminating them. These opportunities to
organisation are really helpful to understand the competition level of the hospitality market.
Threats:
New Entry in market: Marriott international is facing competition revelry among
organisation. If new business introduce with new tech-based services, it directly impact to
existing organisation. New entrants become threat to current industry for example calcot manor
hotel is threat for Marriott international (Pike, 2016.).
Competition Revelry: Marriott international faces huge competition from service brand
like Hilton, novotel. It may have big challenge for the existing organisation in order to build new
customer base. Company can prevent this cut throat competition by launching some different
services in the market.
PESTEL analysis:
It is marketing analytical tool that used by the researcher in order to manage the external
factors that may impact to an organisation. It is framework that used in scanning the external
business environment when conducting a strategic business analysis to take competitive
advantage in the market. It is a framework used by the marketer to determine and monitor and
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control the macro environment variables that could give a major impact on financial performance
of company. Marriott international conducts this tool to study the current market situation so
function of the business can be run smoothly in the future (Kim, Lin and Qiu, 2015). All the
external factors that impact to a business are as follow: Political, Economical, Social,
Technological, Legal and environmental Factors.
The PESTEL analysis of Marriott International is as under:
Political Factor: This factor can impact to Marriott International by implementation of
new governmental rule and regulation. This may effect the business activities in the long run
stability of the business. This factor may include trade restrictions, taxation, labour law,
corruption (Muralidharan and Raval, 2017). These factor must be address when assessing the
prospective market situation to run the smooth business activities.
Economical Factor: This factor includes economic growth, exchange rate, income of
the consumer, interest rate, governmental expenditure. Marriott International's management
needs to evaluates the economical factor as per market scenario so they can design the new
variants in the offering to maximize its profit and revenue.
Social factor: socio culture factors are the particular area of the attitude and belief of the
person that needs to understand by the Marriott international. Some of the social factor are health
conscious people, age distribution, growth of the population. Organisation must fulfil the
customer's expectations in order to build the image of business by delivering value services.
Technological factor: Fast technological changes may impact to products and market of
an organisation. Marriott International may brings the advance techniques in the services so they
fulfil the customers needs as per their requirement. Marriott international introduce new one tap
model booking of hospitality services that facilities may raise the pool of the customer.
Environmental factor: These factors is belongs to influences of the surrounding
environment. Some factors are climate, waste disposal, carbon footprints and pollution (Hashim
and Hamzah, 2014). The natural resources that are used by Marriott international, are must be
optimum in the clients services to hike the productivity.
Legal factor: These are the factors that includes health and safety standard, consumer
right and law, Price of the services, advertising services. Marriott international needs to retained
the experience employee and reduce the labour turnover ratio as good employees are the real
assets of the business. Company needs to maintained the quality services to their potential
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customers (Kuo, Chen and Tseng, 2017).
Porter's five force model:
This model was developed by the M. portor in 1979 to know the five key competition
factor that affect to an organisation. This forces is used to analyse the degree of competition in
the particular industry along with helps to determine the organisation's strength and weakness.
The Five Forces Analysis by Porter is an significant instrument in the scheduling phase of the
project. It support to creates a powerful hypothesis that in a company scenario there were only
five major forces capable of determining competitive strength. The Porter's five forces model of
Marriott international are explained below:
Threat to new entrants: This forces determine that how easy or difficult it is to enter in
a new market. If many business compete in the same industry, profit start to decrease. Marriott
international has sufficient fund and can have ability to carry out the business in low profit
industry. High intensity of power in the hospitality industry for the new enterprise in the global
market.
Bargaining power of suppliers: High bargaining power enables supplier to sell the
product at high price or low quality (Cabrera and Williams, 2014). It directly affects to buying
organisation's profit as they need to pay more for the services. Marriott international provides
their services to its customer on regular basis to earn more profit to capture the hospitality
industry.
Bargaining power of buyers: Buyers of the goods may have high power to demand the
less price or high quality services when the bargaining power is strong of the industries
customer. Marriott international may changes their price policy in order to demand of its valued
customer to generate high revenue to survive in the competitive market.
Threat to substitutes: This force can be threatened to business when substitute services
are available easily in the market with less price (Perera and Perera, 2018). So firms may faces
huge loss in providing services in the competitive market. Marriott internationals biggest threat is
Hilton group. If marriott international make any changes in the pattern of prices or demand
customer will switch
Rivalry among existing competitors: Marriott is one of the international hospitality
brand that is recognised as nearest rival and competitor of same stream of organisations. In the
competitive era of hospitality industry, the power of competitors is advanced where many
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competitor are offering the same services at indifferent price, it leads to decrease customer
loyalty and profit, market share of the industry too. There are a lot of competitor of the Marriott
international like Hilton group, Hyatt hotel, Four season hotel and Accor hotel. If any of them
changes their price structure or quality of offering services, it may effect to all of the
organisation (Ehret and et. al, 2013).
4.Comparison and benefits between Strategic Position Statement and Business Model
Canvas.
Basis Strategic Position Statement Business Model Canvas
Definition It is a position statement which is
elaborated as occupying clear place by
it's commodity or valuable services
relational to competitive brands.
This model is a graphical
display of numbers and
template that support to create
fresh business model (What is
Business Model canvas, 2019).
Helpful This statement mainly useful in
developing an effective image of
different product produced by company
for existing and new customers.
BCM is implement in
processing a list of new idea in
the existing market place so
that goods are sold in
profitable manner.
Focus The main focus of Strategic positioning
statement is making customer sure to
invest accordingly within respective
market segments.
The business model canvas
have a major focus on creating
worth and valuable proposal
and enable respective Hotel
to effectively think and
develop ways in order to
resolve the different problems
arising in production or
delivering best services to
customer so that their needs
and requirement can be
fulfilled in pleasant manner
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(Ramaseshan and et.al, 2013).
Quicker to adopt It is easy to adopt so basically strategic
statement changes with the ongoing
modification in market.
It is fast to use within
organization as it support in
better decision making an
saves cost and money of
company.
Flexibility This statement is flexible enough
which accept the changing business
environment so that manager are able
to develop ways to improve business
performance.
BMC is consider to be little
inflexible in quality so it
requires more time and skills
by to adopt in the new
business environment.
Uses Strategic positioning statement is
utilized to acquire powerful place in
existing market with specific goods
and services so it is not easy for the
competitors to apply the strategies for
developing new product (Rogers and
Davidson, 2015).
The main use of business
canvas model is to develop
new good strategy in the cut
throat competitive world.
5. Marketing budget ( non- calendered)
Cost: Cost of production for new product is mentioned below:
Particulars Amount (in €)
Marketing expenditure 250000
Workforce 200000
Equipments charges 50000
Raw materials cost 250000
It is the budget that is designed for purpose to develop a special idea can be collected that
how much funds are required to prepare a new product. A marketing plan is merely a tool to
assist manager which is beneficial to attain company objectives. Manager are required to move
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away and operate with entire team to create a valuable company plan for objectives which are
not evident. It must consider goals for the months and future years, as well as an action plan to
achieve these goals. In the absence of funds in the market, different types of sources are
evaluated through capital can be accumulated and production activity can be operated.
Eventually the budgets help in working with full of efficiency to sustain in the competition. The
availability of the funds are beneficial for the firms to develop a new business model in the
market. Along with inspire to promote product and services at global level for the purpose of
getting strong positioning. Motivation for a new business model raises when there is enough
money in hand and maximum market shares can be achieved when products are promoted at
worldwide. As per the above mentioned budget, various kind of expenditures are occurred in
preparing a new product plan (Kennedy and Parsons, 2014).
6. Marketing operations including rationale for the sales and promotional
activities
Sales and promotional activities of Marriott international includes advertising the designed
services through television, newspapers, social media platform, outdoor signage and concerts.
Company uses various platform of promotion to reach its valued customer in the cut throat
competition. Marriott international basically focus on the social media strategies, print media,
offer display, loyalty programme, cash back, coupons so their services can be more impactful in
the customers mind (Saura, Palos-Sanchez and Correia, 2019).
The promotional tools of Marriott international are explained as follows:
Social media platforms: It is a kind of internet marketing which includes sharing the
content on the online media to achieve the marketing and promotional objects. Marriott
international advertise its hospitality services in order to reach or influence their target customer.
Company has covered around 28 % market share in hospitality industry that is good gesture to
its management. Marriott international is growing sector in hotel services and its market share
and availability of fund are huge. So it requires to continuous implement in the hotel services in
order to raise their market share. Currently company is using twitter to solve the customer
queries and shares the new data related to their upcoming services (Wirtz and et.al, 2014).
Public relations: Healthy costumer relation are mandatory in order to grow in the current
market. It became easy to sell the products and services in the competitive market by preserving
the valued customers. When a organisation offer the quality services with strong customers
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relationship, It will directly effect to customer preferences in upcoming time. Marriott
international rewards rank highest in customer loyalty programme with scores of customers
satisfaction level of 707 out of 1000 points (Public relation at Marriot international, 2019).
Company is expanding in luxury services to increase the customer satisfaction level among the
competitors.
Direct mail and messages: There is another way to attract customer by providing worth
services to its customer by delivering the messages on the special day of the customer like
Birthday, marriage Anniversary, Function. Some of the firm in the hospitality industries are
using this this promotional activities in order to raise sales of services. Marriott international
uses this branding activities to grow in the services market by sending the e mail on special
occasions of its regular customer. It may effect positively to its customer by doing this effort by
firm. Marriott international have separated department for the events management. They
continuously introduce new activities or themes regarding these events. These activities
generates more revenue and also increase the customer base.
CONCLUSION
It can be stated from the above that multiple analytical instruments, such as PESTEL,
Porter's five-force matrix, help company partners properly determine the market situation in
order to maintain the highest outcomes. All of these tools assisted the administration to co-
ordinate strategies to enable the company to operate smoothly. Though, the advantages of it are
surveys claim, the declaration of economic stance and the business canvas model so that the
finest one may be applied to enhance effectiveness. Quantitative plans are produced to evaluate
money flows from different outlets so that financial valuation ineffectiveness will not happen. In
addition, findings are differentiated advertising actions to communicate the objectives of the
reach and make the benefits more their potential.
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REFERENCES
Books and Journals
Avraham, E. and Ketter, E., 2016. Marketing and Destination Branding. In Tourism Marketing
for Developing Countries (pp. 39-66). Palgrave Macmillan, London.
Baker, M. A. and Magnini, V. P., 2016. The evolution of services marketing, hospitality
marketing and building the constituency model for hospitality marketing. International
Journal of Contemporary Hospitality Management. 28(8). pp.1510-1534.
Guaracino, J. and Salvato, E., 2017. Handbook of LGBT tourism and hospitality: a guide for
business practice. Columbia University Press.
Hudson, S. and Hudson, L., 2017. Marketing for tourism, hospitality & events: a global & digital
approach. Sage.
Kim, Y., Lin, P. M. and Qiu, H., 2015. Experiential learning: Being a real-event planner. Journal
of Teaching in Travel & Tourism. 15(4). pp.382-401.
Kuo, C. M., Chen, L. C. and Tseng, C. Y., 2017. Investigating an innovative service with
hospitality robots. International Journal of Contemporary Hospitality Management.
29(5). pp.1305-1321.
Perera, G. R. and Perera, I., 2018. Influence of social media marketing on the brand image of
organizations in the hospitality industry of Sri Lanka. In Media Influence:
Breakthroughs in Research and Practice (pp. 371-383). IGI Global.
Rogers, T. and Davidson, R., 2015. Marketing destinations and venues for conferences,
conventions and business events. Routledge.
Saura, J. R., Palos-Sanchez, P. R. and Correia, M. B., 2019. Digital marketing strategies based on
the e-business model: Literature review and future directions. In Organizational
Transformation and Managing Innovation in the Fourth Industrial Revolution (pp. 86-
103). IGI Global.
Dibb, S and Simkin, L., 2013. Marketing essentials. Cengage Learning.
Lane, P., 2016. Human resources marketing and recruiting: essentials of employer branding.
Handbook of Human Resources Management, pp.23-52.
Pike, S. D., 2016. Destination marketing organizations–research opportunities in an era of
uncertainty. In Book of Abstracts-6th International Conference on Tourism.
International Association for Tourism Policy (IATOUR).
Muralidharan, K. and Raval, N., 2017. Six Sigma marketing and productivity improvement.A
Quarterly Journal of the National Productivity Council. 58(1). pp.107-114.
Hashim, N. and Hamzah, M. I., 2014. 7P's: A literature Review of Islamic marketing and
Contemporary Marketing Mix. Procedia-Social and Behavioral Sciences. 130. pp.155-
159.
Cabrera, S. A. and Williams, C. L., 2014. Consuming for the social good: marketing, consumer
citizenship, and the possibilities of ethical consumption. Critical Sociology. 40(3).
pp.349-367.
Ehret, M., and et. al, 2013. Business models: Impact on business markets and opportunities for
marketing research. Industrial Marketing Management. 42(5). pp.649-655.
Ramaseshan, and et.al , 2013. The role of marketing managers' commitment and involvement in
marketing strategy implementation. Journal of Strategic Marketing. 21(6). pp.465-483.
Kennedy, A. M. and Parsons, A., 2014. Social engineering and social marketing: why is one
“good” and the other “bad”? Journal of Social Marketing. 4(3). pp.198-209.
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Wirtz, J., and et.al, 2014. The role of marketing in today's enterprises. Journal of Service
Management. 25(2). pp.171-194.
Online
What is Business Model canvas. 2019. [Online] Available Through: <https://www.lead-
innovation.com/english-blog/what-is-business-model-canvas>.
Public relation at Marriott international. 2019. [Online] Available Through:
<https://www.ihgplc.com/contact-us/media>.
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