Hotel Rainbow Marketing Plan

This assignment presents a marketing and sales plan for Hotel Rainbow, a hotel located in Rotorua. It emphasizes the importance of strong customer and supplier relationships, analyzes the competitive landscape, and outlines key strategies to attract tourists. These include increasing advertising campaigns, showcasing attractive imagery of the area and hotel rooms, maintaining competitive pricing, and prioritizing room maintenance.

Running Head: Hotel Sales and marketing 1
Sales and marketing Plan for Hotel Rainbow

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Executive summary
For every company, it is important to have an effective sales and marketing plan to grow
in the operating market. There is the need of effective marketing and innovative strategies by the
companies to compete with the other competitors in the market. This report will focus on the
effective marketing strategies for luxury and five star hotel i.e. Hotel Rainbow. The report will
provide effective marketing plan for the hotel along with the marketing mix strategies and
situational analysis. For the effective sales plan, report will focus on the environmental analysis,
segmentation analysis, marketing objectives and budget implementation and control. Along with
this, report will also provide some recommendations which should be adopted by the hotel.

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Contents
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................4
Situational analysis..........................................................................................................................4
Porter’s five forces.......................................................................................................................4
Market Segmentation.......................................................................................................................5
Marketing objectives.......................................................................................................................6
Ansoff matrix...................................................................................................................................7
Marketing mix strategies and tactics...............................................................................................8
Aim of strategies..............................................................................................................................9
Budget implementation and controls.............................................................................................10
Recommended actions...................................................................................................................11
Conclusion.....................................................................................................................................11
References......................................................................................................................................12
List of figures
Figure 1: Ansoff Matrix...................................................................................................................8

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Introduction
This report is the marketing and sales plan of Hotel Rainbow which is operating in
Rotorua. This is one of the five star hotels and wants to enhance its sales and marketing services
in the market. It is observed that hotel has value proposition in terms of providing effective
services. Objective of this marketing plan is to improve the sales and profit of Hotel Rainbow in
the operating market. The report focuses on the environmental analysis i.e. Porters Five Forces
analysis to understand the level of competition in the hotel industry. Along with this, report sets
the SMART objectives for the Hotel Rainbow to get success. Marketing mix analysis and the
objectives of chosen strategies is also described in the report (Peñaloza, Toulouse & Visconti,
2013).
Situational analysis
Porter’s five forces
New entrants-
In case of Rainbow hotel, new entrants are observed to be low in the industry. The reason
is that there are various strong competitors dominating the industry. There are many new hotels
that wish to enter in the luxury hotel industry. But, to enter in the hotel industry is hard as they
need high capital investment to establish a successful business. Along with this, initial
investment and brand image are also necessary factors for the success of the hotel. So, threats of
new entry are low down in the hotel industry.
Threats of substitute-
Since last few years, the market of hospitality services is facing the threats of substitute
products and services. There are some established hotels which are more acceptable by the
consumers as they are providing quality services at the affordable prices. Well established hotels
do not need to invest high budget and high capital to maintain the business. For the success, there
is the need for effective environment for the customers such as small and clean room with the
comfortable bed. These services are effective to achieve competitive advantage in the hotel
industry (Kearney, 2010).

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Suppliers’ bargaining power-
It is observed that the bargaining power of the suppliers in the hospitality industry is low
and weak. It is service marketing and for running the hotel business and attaining the customers,
there is the need of many peoples. Suppliers are the important part of the hotel business to
provide ingredients for the food and other services. Every hotel is providing same services to the
customers and there are very few suppliers that are providing all these required resources to the
hotels. Hotels do not need many suppliers so the bargaining power of suppliers is low.
Buyers’ bargaining power-
The bargaining power of the buyers or customers is high in the hotel industry as there is
the strong competition in the market due to the presence of the various established hotels. The
success of the hotel depends upon the location and places where the hotels are operating. The
customers have choice to change the services of hotel if they do not like the services of one
hotel. It means, there are many competitors in the hotel industry that are ready to provide best
services to the customers. So, the bargaining power of the customers for hotel is high the
consumers are options to chose hotels as per their convenience (Assaf, Josiassen, Knežević &
Woo, 2015).
Competitive rivalry-
Hotel Rainbow would experience direct competition from the other hotels in the same
area where it is operating. Along with this, the hotel will experience tough competition with the
competitors as they are also offering same products and services to the consumers. Further, hotel
will face strong competition from some non-profit organizations which is providing services to
the customers on their non-refundable income (Hamlett et al, 2008).
Market Segmentation
Hotel Rainbow will target high income people who want luxury services in the hotels.
Basically hotel will target business class and rich people who seek for the best hotel services
during their vacations. Market segmentation for Hotel Rainbow is as follows:
Demographic segmentation-

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This segmentation is based on the gender, age, size, education, income, religion and
family. Hotel Rainbow has free Wi-Fi and lobby facility for the business people and tourists who
have various age, educational backgrounds and income. Business people always seek for the
high level of technology so; hotel will provide high speed of Wi-Fi. Every hotel would have
good space for the work, iPod dicks, comfortable sitting facilities along with the connection of
data port and voice mail (Bickhoff, Hollensen & Opresnik, 2014).
Psychological segmentation-
This segmentation allows Hotel Rainbow to satisfy the needs and demands of the
customers who have different attitude, traits, values and lifestyle. This segmentation is based on
the interest, attitude, personal traits, lifestyle and values of the potential customers. Most of the
customers in Hotel Rainbow are business professionals who prefer luxurious hotels to stay. In
Hotel Rainbow, they would find many special recipes and dishes that cannot be easily available
in the other places. Along with this, hotel would also provide thrilling shows live music to
entertain the customers. Hotel would be focused on discovering new food, local wine and the
culture of the consumers. Hotel would provide high quality and excellent loading facilities based
o the requirements of the guests. Along with this, many other services would also be provided by
the hotel i.e. customers can enjoy the wedding and get full relax. Hotel would also arrange the
tablets and menus that would be given in the final farewell of any occasion occurred in the hotel
(Armstrong & Cunningham, 2012).
Marketing objectives
There are SMART objectives for Hotel Rainbow that includes specific, measurable,
achievable, realistic and time-based. SMART objectives for the hotel are as follows:
Specific-
Hotel Rainbow has the objective to have strong position in the hotel industry. For this,
hotel is focusing on the customer satisfaction by the products and services. Specific objective of
the hotel is to improve customer satisfaction level in the business.
Measurable-

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The objective of Hotel Rainbow is measurable. To achieve competitive position is an
attainable goal which can be achieved easily by the effective strategies and marketing
philosophies.
Achievable-
Improving the level of customer satisfaction is realistically achievable. It is possible for
Hotel Rainbow is to satisfy the customers with the effective hospitality services. The goal of
customer satisfaction is better and can be achieved by the customer interaction process.
Realistic-
The goals are realistic as they are challenging for Hotel Rainbow in the highly
competitive industry. The success of these goals depends upon the effective marketing and
communication strategies adopted by the Hotel Rainbow.
Time-based-
This is the final factor of good objective. For achieving these stated goals, Hotel Rainbow
would set time for 12 months. Time makes the objective real and tangible. Within the set time,
Hotel Rainbow would train the employees for achieving the set goals and objectives.
Ansoff matrix
For Hotel Rainbow, Ansoff matrix is very effective framework which would cover all the
strategic options which are important for the hotel to expand and grow in the global market. To
operate the hotel productively in the market, it is crucial for Hotel Rainbow to adopt efficient
strategies. The strategic alternatives for the Hotel Rainbow are described below:

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Figure 1: Ansoff Matrix
 Focusing on the existing hospitality services for the present market,
 Emerging new products for the present market,
 Finding new market for the current products, and
 Emerging new products for the new market (Boone & Kurtz, 2013).
Marketing mix strategies and tactics
The marketing mix strategies can be considered as the ‘adaptation strategy’ as the hotel
would focus on the design, covering, and the function parts to meet the demands of the potential
customers. For the Hotel Rainbow, the core essentials of the marketing mix are described below:
Product-
For the Hotel Rainbow, product is the various services provided by the hotel to the
customers i.e. hotel rooms where customers spend their vacations for a specific period of time.
Hotel Rainbow will provide various facilitating services to the guests such as online reservation
facilities, customer services, bars and restaurants. Along with this, there would be supporting
products offered by the hotel i.e. free newspapers and magazines for business people, and 24/7
room services etc. Hotel will also provide luxurious rooms, relaxed atmosphere and emebership
discounts to retain the customers.

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Price –
Hotel Rainbow is the luxury hotel and has excellent quality rooms. So, the hotel would
have high level pricing strategy. Hotel Rainbow offers five stars rooms to the customers but in
the strong competitive marketplace, customers are powerfully attracted by the packages and
prices provided by the hotel. So, hotel rates would be high for the target customers but attractive
packages will also be offered by the hotel to attract them (Iplik, Topsakal & Dogan, 2014).
Place-
The place can be considered as the distribution strategy adopted by the hotel to make the
products and services available for the customers where they prefer it. The distribution strategy
of Hotel Rainbow depends upon the high level technology and internet facility in different
arrangements. For the distribution of the services, hotel will use official website of the as the
efficient platform. The official website of the hotel would provide all the relevant information to
the customers such as planning events and weddings, bookings the rooms, and booking of airport
pick-ups. Internet is also effective medium to attract the customers as it provides extensive range
of information to the customers (Fifield, 2012).
Promotion-
Promotion is the important part of the every business to create awareness about the
products and services. By the promotional activities, Hotel Rainbow would be able to converse
effectively with the consumers. Some of the advertising methods would be used by Hotel
Rainbow i.e. communicating by television, brochures, official website of the hotel, Twitter and
Facebook accounts etc (Russell, 2010).
Aim of strategies
Hotel Rainbow wants to retain the customers so that they come again the country and
chose the services of the hotel. By the marketing mix strategies, hotel has objective to provide
best hospitality services to those tourists who seek best place to spend their holidays. In Rotorua,
there are many competitors which are giving strong competition to the Hotel Rainbow. To stay
competitive in the market, Hotel Rainbow would provide hospitality services 24/7 along with the
best quality of food and wine to the customers. Hotel Rainbow would serve the customers based

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on the English culture and tradition (Cavusgil, 2012). By the marketing mix strategies, Hotel
Rainbow would seek to enhance brand awareness of the business in terms of services so that the
loyalty and customer base can be improved in the market. To achieve good position in the
marketing, hotel would use promotional mix i.e. print advertisements. Basic aim of the hotel is to
perform effectively at the global level and for this manner, it is crucial for the Hotel Rainbow to
maintain long term relations with the suppliers and various partners by meeting their needs and
demands. So, marketing mix would be helpful in achieving competitive advantage in the industry
(Chakravarthy & Coughlan, 2011).
Budget implementation and controls
For the Hotel Rainbow, it is crucial to set the costs which would be associated with the sales and
marketing plan. The financing part of the Hotel Rainbow would be done on the basis of different
aspects. It is analyzed that for implementing new plan and approach, Hotel Rainbow would use
various social media platforms such as YouTube, FaceBook and Twitter to enhance the brand
image (Ryan, 2014). Budgeting for Hotel Rainbow is as follows:
For social media marketing-
FaceBook $20,000
Google Plus $15,000
YouTube $15,000
Twitter $15,000
Email Marketing $10,000
Google Ad $20,000
SEO marketing $15,000
Other online campaign $2,000
Total budget for online marketing $1, 12,000

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Recommended actions
For Hotel Rainbow, there are some recommendations which should be followed by the
hotel. Those are as follows:
 Hotel should try to increase advertisement campaigns about the accommodation services,
 It should try to provide some pictures of attractive places, culture and inside view of the
rooms,
 It should try to keep the prices low as compared to the competitors to attract the tourists
and
 Hotel should care the tourists and try to maintain the rooms every month
Conclusion
This report is all about marketing and sales plan of a hotel named Hotel Rainbow in
Rotorua. From the above discussion, it is analyzed that it is crucial for the hotel to maintain good
relationships with the customers and suppliers. In case o Hotel Rainbow, there is the risk of
strong competition in the market. It is essential for the Rainbow Hotel to meet the demands and
requirements of the customers to make sure that hotel is able to achieve the business goals and
objectives effectively. Along with this, it is also important for the hotel to examine the growth
and progress of the business for the marketing and selling strength.

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References
Armstrong, G., & Cunningham, M. H., (2012). Principles of marketing. Australia: Pearson
publication
Assaf, G. A., Josiassen, A., Knežević, C. L., & Woo, L., (2015). The effects of customer
voice on hotel performance: International Journal of Hospitality Management. 44.
77-83.
Bickhoff, N., Hollensen, S., & Opresnik, M., (2014). The Quintessence of Marketing:
Strategic and Operative Marketing Planning—Segmenting, Targeting, Positioning.
pp. 47-11.
Boone, L., & Kurtz, D., (2013). Contemporary marketing. USA: Cengage Learning.
Cavusgil, S. T., (2012). International Business: The New Realities. Australia: Pearson
Education
Chakravarthy, B., & Coughlan, S., (2011). Emerging market strategy: innovating both
products and delivery systems. 40(1). 27-32.
Fifield, P., (2012). Marketing strategy. (2nd). Berlin: Reed educational & publishing Pvt Ltd
Hamlett, J., Bailey, A., Alexander, A. and Shaw, G. (2008). Ethnicity and Consumption:
South Asian food shopping patterns in Britain: Journal of Consumer Culture. 8(1).
pp.91-116
Iplik, F. N., Topsakal, Y., & Dogan, O., (2014). strategic innovation: an empirical study on
hotel firms operating in antalya region. 2(1). 16-29
Kearney, J., (2010). Food consumption trends and drivers. Philosophical Transactions of the
Royal Society B: Biological Sciences. 365(1554). pp.2793-2807
Peñaloza, L., Toulouse, N., & Visconti, L. M., (2013). Marketing management: A cultural
perspective. USA: Routledge
Russell, J., (2010). Evaluate the Effectiveness of Social Media Marketing on Hotels.
Hospitality Management Review Student Journal at Sheffield Hallam University. 1
Ryan, D., (2014). Understanding digital marketing: marketing strategies for engaging the
digital generation. Kogan Page Publishers

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