Tourism and Hospitality Marketing

Running head: TOURISM AND HOSPITALITY MARKETING
Tourism and Hospitality Marketing
Marketing Plan of Four Seasons Hotel
Student’s name:
Name of the university:
Author’s note:

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Executive Summary
In this paper, redesigning of the marketing plan has been conducted of Four Seasons Hotel in
Sydney. Four Seasons Hotel has its brand image and it mainly targets the corporate and business
travelers. Corporate objectives of the organisation are to generate the maximum revenues,
optimize food and beverage profit and to provide high customer satisfaction. In Australia,
hospitality industry is flourishing and in Sydney, the growth of hospitality industry is expected to
have at least 11.2% by the end of 2022. Four Seasons Hotel occupies almost 5% of the market
share in Sydney as this hotel has maximum corporate travellers. Service facilities are numerous
in Sydney Four Seasons Hotel and the facilities are 24-hour fitness places, heated outdoor pool,
twice-daily housekeeping and babysitting services. Therefore, Four Seasons Hotel Sydney takes
the strategy of premium pricing as the corporate travellers can afford this. Four Seasons Hotel
Sydney promotes the business through the social networking site and the hotel promotes through
the third party accommodation booking app. Four Seasons Hotel in Sydney can take the market
penetration for growth; however, it would lead the organisation to have sponsoring clubs and
performance of international successful programmes. Four Seasons Hotel in Sydney can take
helicopter services from airport and butler services. In case of the diversification, Four Seasons
Hotel can opt to take Four Seasons Cafe. Most importantly, Four Seasons Hotel can start the
service of sea-cruise tourism to attract the new family and leisure tourists. Therefore, Four
Seasons Hotel Sydney can establish new Strategic Business Unit under the name of Sea-Cruise
Voyages with the same standards of the services of Four Seasons Hotel. Promotions and
premium pricing will help Four Seasons to reach the customers base. In the study, actions plan
and the budget of the marketing plan has been given.

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Table of Contents
1. Introduction..................................................................................................................................3
2. Vision and Mission statement......................................................................................................3
3. Corporate Objectives...................................................................................................................4
4. Marketing Review.......................................................................................................................5
Industry overview and performance:...........................................................................................5
Target market:..............................................................................................................................5
Nature of the industry:.................................................................................................................5
4Ps’ of Marketing mix:................................................................................................................6
SWOT Analysis:..........................................................................................................................7
Porter’s Five Environmental Forces Model:................................................................................7
5. Proposed Marketing Objectives...................................................................................................9
6. Outline of Possible Strategic Alternatives.................................................................................10
Ansoff’s Growth Strategies Matrix...........................................................................................10
7. Chosen Strategy and justification..............................................................................................12
New 4P’s of Marketing mix......................................................................................................13
8. Implementation Plan..................................................................................................................15
Identify and briefly discuss the key marketing actions.............................................................15
Document these key actions in a timeline with projected dates................................................16

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Flag the actions that would require substantial budget expenditure..........................................16
Bibliography..................................................................................................................................18
Appendices....................................................................................................................................21

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1. Introduction
Four Seasons Hotels and Resorts is luxury Hotel Company and it has it headquarter in
Toronto, Ontario. Four Seasons Hotel operates worldwide in more than 100 locations since the
year 2007. Four Seasons Hotel in Sydney is one of the best five stars hotels in Sydney and the
guests can be swept away by the beauty of the iconic Sydney Harbour Bridge and Opera House
on just the doorstep. Four Seasons Hotel in Sydney provides the best facilities to the guests like
family activities, couples’ experiences, meetings and events, new mode kitchen, Lounge 32 for
Club Guests, Sydney Highlights, Directions and Maps, Weddings and Vivid Sydney
(Fourseasons.com, 2018). In addition, Sydney is famous for the international tourists and the
travellers come to watch Sydney Opera House, Sydney Harbour Bridge, The Rocks, Harbour
Cruise, Darling Harbour, Queen Victoria Building and Sydney Tower Eye.
In the hospitality industry of Sydney, there are many five star hotels that offer exquisite
service to the travellers. In this study, marketing plan of Four Seasons Hotel Sydney is
redesigned. In the first section, mission and vision of Four Seasons hotel is described. Corporate
objectives of the hotel are also described along with a marketing review. In the marketing review
section, target market of the hotel, 4P’s of marketing mix and SWOT analysis is conducted. In
the final section, possible strategic alternatives are given from Ansoff Matrix. In the ultimate
section, chosen strategy for Four Seasons Hotel is given with justification.
2. Vision and Mission statement
Mission Statement:

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Four Season Hotels believes that key success of the organisation lies in the people of the
organisation. The hotel provides satisfaction in the way the people do their work. The
organisation wants to get success when every decision is based o the belief and clear
understanding. Finally, the hotel demonstrates the belief most meaningfully in the way the
people treat each other and by example the organisation sets for one another (Fourseasons.com
2018).
Vision:
Vision of Four Seasons Hotel is to create corporate objective that would guide the actions
of everyone in the organisation. The goal and principle of the organisation is to foundation of
work every day on behalf of the guests. Guest satisfaction is the ultimate mottos that must
support with deeply instil personal service.
3. Corporate Objectives
Existing corporate objectives of Four Seasons Hotel Sydney:
1. To generate maximum hotel revenues
2. To optimise food and beverage profit
3. To provide high customer satisfaction
4. To have satisfied employees
Four Seasons Hotel mainly takes differentiation strategy in order to generate the
maximum revenues. In Sydney, the hospitality market is highly competitive in nature. In order to
generate the food and beverage profit, Four Seasons Hotel provides different types of food and
beverage to the guests. The guests can choose different types of rooms for accommodation and

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the rooms have different price ranges. In order to provide the highest customer service; Four
Seasons Hotel provides personalised services to the travellers. In addition, training and
development programmes are given to the employees so that the employees can satisfy the guests
with services.
4. Marketing Review
Industry overview and performance:
In Australia, the hospitality industry is observing construction boom. The hospitality
industry in Australia reached almost $ 67 billion and it is expected to reach almost $167 billion
by 2025 (Char-lee, Becken & Watt, 2017). The first nine months of 2017 saw about $1.8 billion
of hotel transaction and in Sydney; the five star hotels observe high occupancy rate. Four
Seasons Hotel occupies almost 5% of the market share in Sydney as this hotel has maximum
corporate travellers. International travellers have been increased in Australia as almost 34.5
million international travellers visited in Australia in 2017.
Target market:
The target market of Four Seasons Hotel is the corporate travellers and the business
travellers. Four Seasons Hotel Sydney mainly targets the business customers who visit Sydney
for business purposes. The booking of the corporate travellers mainly come from the corporate
houses and this is because of a strong client base. This type of travellers does not have time for
the long cruise and they don't have the pocketbook to enjoy the finer things.
Nature of the industry:
In Australia, OECD (Organisation for Economic Co-Operation and Development)
projected the strong economic growth of 3% in agricultural and mining industry. In the

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hospitality industry, Sydney will play a significant role in attracting the large international
travellers. Hospitality industry will observe the growth as maximum visits of travellers come
from the international arena. Hospitality growth in Australia is predicted to almost 11.2% by the
end of 2022 (Char-lee, Becken & Watt, 2017).
4Ps' of the Marketing mix:
Product: Four Seasons Hotel Sydney provides luxurious settings and authentic
hospitality designed to please its high profile and clients. The rooms are all comfortable with air-
conditioned, elegant in nature. Service facilities are numerous in Sydney Four Seasons Hotel and
the facilities are 24-hour fitness places, heated outdoor pool, twice-daily housekeeping,
babysitting services, luxurious Australian spa, mode kitchen and bar, complimentary standard
Wi-Fi. The hotel provides the facilities of undercover hotel parking, 24-hour business services,
Lounge 32 and on-site concierge.
Price: Four Seasons Hotel targets mainly the corporate travellers and the rent of
accommodation is very high. It operates in diversified ranges as it includes the luxury, premium
and mid-scale. Therefore, Four Seasons Hotel Sydney takes the strategy of premium pricing as
the corporate travellers can afford this.
Place: Four Seasons Hotel in Sydney is situated in excellent place as it is very close to
the Sydney Harbour Bridge and Sydney Opera House (Fourseasons.com 2018). The guests can
enjoy the view of Sydney Harbour Bridge from some of the special rooms at Four Seasons Hotel.
This hotel has beautiful party space where the guests can enjoy their time. Mostly, corporate
travellers and business customers are the targets of the organisation and the people can reach

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from Sydney airport easily to the hotel. Website of the hotel always put information with updated
news.
Promotion: Four Seasons Hotel Sydney promotes the business through the social
networking site and the hotel promotes through the third party accommodation booking app.
Promotions of Four Seasons Hotel Sydney do not come on Television and Out-of-home mode.
The hotel provides advertisement on travel magazines.
SWOT Analysis:
Strengths
Brand reputation of the hotel
Location of the hotel
Personalised and exclusive services
Upcoming property development in
collaboration with construction company
Weaknesses
It mainly focuses on the corporate and business
travellers as the organisation is weak in the
family-focused market
It mainly depends on the upper or niche
customers
Revenue of the business
Opportunities
Partnership with international airways
Emerging market and expansion
Service diversification
Market expansion through penetration
Threats
Competition in Sydney hospitality industry
Similar services
Target market is same as previous
Table 1: SWOT analysis of Four Seasons Hotel in Sydney
Porter’s Five Environmental Forces Model:
Porter’s Five Forces Description Forces

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Competitive rivalry Competitive rivalry in Sydney hospitality industry is
very high as there are many five stars hotel already
present in the market. Business people seek the best
price for the experiences. The competitors in the
market are Amora Hotel, Park Hyatt, Hilton and
Mariott Hotels.
High
Bargaining power of
customers
Buyers’ power in choosing the hotel is high as the
customers have multiple options to choose the
preferred hotel (Mistills, Buhalis & Gretzel, 2014).
The customers can switch the hotel at any time.
Today’s customers are technology savvy and they
watch online for the best offers. They take services
from the travel agent.
High
Bargaining power of
suppliers
Suppliers in the hotel industry play a significant role
as the hotel needs to satisfy the customers with best
food and lifestyle. The suppliers can switch the hotel
and power and labour supply should be good in order
to satisfy the customers.
Medium
Threat of substitutes Substitute in the market is high as there are many
potential five star hotels in Sydney in this price range.
Each of the hotels is advanced technologically and the
superb strategic plan is vital.
High
The threat of new It is not easy for the new hotel to be a competitor of Low

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entrants the for season hotel as it falls in five-star category
(Wray, 2015). Barriers to entry are target market and
huge capital. Differentiation is another barrier.
Table 2: Porter’s Five Forces of hotel industry in Sydney
5. Proposed Marketing Objectives
Existing marketing objectives:
Marketing objectives:
 To differentiate the services from the competitors
 To attract new market sectors to increase the customer base
Financial objectives:
 To increase overall room profit by 10% in next 2 years
 To accomplish growth within given budget by the end of 2021
Proposed marketing objectives:
Marketing objectives:
 To retain existing customers of the hotel
 To create a foothold on social networking sites to create customer base by increasing
followers by 4%
 To continue with perceived value proposition of the international brand value
Financial objectives:

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 To increase overall room revenue by 12% by the end of 2022
 To keep payroll expenses down and reduce the level of overtime within the workforce e
 To increase the market by share by 4% by the end of 2022
6. Outline of Possible Strategic Alternatives
Ansoff’s Growth Strategies Matrix
Market Penetration:
Market penetration strategy can be taken when an organisation wants growth within
existing markets using existing services. Market penetration allows the firm seeking to gain
growth with existing services in the current market segments and the aim of the market
penetration is the market share. Market penetration strategy is risky as it leverages many of the
organisation’s existing resources and capabilities (Bahadir, Bharadwaj & Srivastava, 2015). In
Sydney, hospitality industry is growing rapidly and the many construction booms is observing.
In growing market, Four Seasons Hotel can simply maintain the market share and it will help the
firm to have rapid growth and Four Seasons Hotel can have the existing opportunities to enhance
the market share.
Four Seasons Hotel can take the marketing strategy of social networking marketing.
Social networking marketing will help the organisation to reach new customers in the existing
market with same services and the products.
Sponsoring local football clubs can allow the hotel to improve the marketing and it will
make the customers loyal. This strategy will allow the Australians to book accommodations for
holiday planning.

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Four Seasons Hotel can host some of the international successful programmes like Opera and
Dance-Drama inside the hotels. This strategy will increase the footfall of the international
travellers for the hotel.
Product development strategy
Product development strategy develops the new products and services to its existing
market segments. Product development strategy is appropriate if the firms’ strengths are related
to the specific customers rather than the specific product or the service. The organisation can
leverage the strengths by improving new product or service targeted to the existing customers
(Huang & Sarigollu, 2014). Four Seasons Hotel Sydney can follow the service development
strategy in order to increase the growth of the customers and the market share.
Four Seasons Hotel in Sydney can use helicopters for transporting special guests from
airport to hotel. This hotel mainly uses the business customers and corporate travellers. When a
CEO will visit the hotel; the hotel can provide a special helicopter to welcome the CEO to the
hotel and it will save the time of the guests. The hotel has some special presidential suites for the
special guests with all modern amenities.
Four Seasons Hotel already provides the guests with concierge services where concierges
assist the guests by performing many of the tasks like making restaurant reservations, booking
cars, recommending nightlife spots, arranging spa services and coordinating porter services. Four
Seasons Hotel can start special butler services for the guests as it is the major selling point for the
popular brand across the world. Butlers are the luxurious and dedicated staff members of the
hotel whose job is to provide personal and professional services to the guests. Therefore, Four
Seasons Hotel can start professional butler services and the butlers will provide services keeping

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the smart gadgets. The guests can contact the butlers through the technical assistance at any time.
This personalised assistance will definitely allure the corporate, business and niche travellers.
Diversification strategy
Diversification strategy can only be applicable when the organisation wants growth with
new services and in the new market. Diversification strategy requires both product and market
development and the outside of the core competency of the organisation (Johnson, 2016). The
diversification strategy must have a reasonable choice for the firm as it must not set the firm at
risk.
Four Seasons Hotel Sydney can start Four Seasons Cafe chain in metropolitan cities in
Australia. The strategy is establishing the new coffee shops under the name of Four Seasons in
Australian cities.
Four Seasons Hotel can start the service of sea-cruise tourism to attract the new family
and leisure tourists. Four Seasons Hotel Sydney mainly targets the business customers and
corporate travellers. Therefore, Four Seasons Hotel Sydney can establish new Strategic Business
Unit under the name of Sea-Cruise Voyages with the same standards of the services of Four
Seasons Hotel. It will help the hotel to diversify the business to attract international leisure and
family travellers who love to travel Arafura Sea and Tasmania Sea.
7. Chosen Strategy and justification
Four Seasons Hotel will take the strategy of Concentric Diversification in order to grow
in the new market. Four Seasons Hotel in Sydney will take the strategy as it already has large
customer base in corporate and business customers. Four Seasons Hotel in Sydney is trying to

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enhance the customers’ base by selecting the leisure travellers both domestic and international
travellers. As stated by Bowen, Baker & Powell (2015), concentric diversification is a strategy
where the company creates or acquires new services to reach more customers. Four Seasons
Hotel in Sydney provides accommodation and food services to the niche customers. Concentric
diversification will allow the organisation to provide Sea-cruise voyages to the leisure travellers
with reasonable price. Australia is more like an island and this diversification will be feasible for
the organisation to attract the international leisure travellers to accommodate in Four Seasons
Hotel in Sydney and in return, the guests will have the extra benefit of having sea-voyage
through luxury cruise in Tasmania Sea and Arafura Sea. There are many travellers who like to
travel across the seas to new islands with serene atmosphere. Four Seasons Hotel in Sydney will
arrange the special cruise travel through various parts of Tasmania and Arafura Seas.
Diversification strategy will provide growth in the market share and the target customers’
base of Four Seasons Hotel in Sydney. Diversification helps to eliminate the risk of the business
as every investment in the business brings risks (Ardizzon, Cavazzini, Pavesi, 2015). Therefore,
the investors’ amount in the business will be used in the Sea-Voyage cruise business. In addition,
some of the investors in the business strive for the capital appreciation while some of the
business organisers do the capital preservation. Diversification strategy allows Four Seasons
Hotel to protect the capital that they have. Sea-Voyage Cruise business will increase the numbers
of room-occupancy eventually as the footfalls of the customers will increase.
New 4P’s of the Marketing mix
Product: Four Seasons Hotel in Sydney will provide all types of services that the five-
star hotels give to the customers. Four Seasons Hotel in Sydney provides personalised services to
the guests along with concierge services. Diversification of the business will allow Four Seasons

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Hotel to provide sea-voyage cruise. The guests from international and domestic spheres of Four
Seasons Hotel in Sydney can enjoy the Cruise service and this cruise will operate twice in a
week. The travellers will get free drinks and complimentary snacks during the cruise.
Price: Four Seasons Hotel in Sydney will keep premium pricing strategy as premium
pricing indicates the best quality in the market. The accommodation price is high in Four
Seasons Hotel and the cruise service pricing will be premium. The niche and leisure travellers
can afford the price. Premium pricing means best services and Four Seasons Hotel in Sydney
already has the brand awareness. Premium pricing helps the firm to raise the firm's profit
(Tomczak, Reinecke & Kuss, 2018).
Place: The hotel is situated in Sydney and the place is perfect to continue with hotel
services. Sydney is famous tourist destination and the sea-voyage cruise will be famous day-by-
day. Australia is surrounded by the Arafura Sea and Tasmania Sea; therefore, the cruise tourism
will be across the seas.
Promotion: Four Seasons Hotel will take the promotion of sea-voyage cruise through
social networking sites. Four Seasons Hotel in Sydney has its Facebook, Twitter and Instagram
pages. The PR team of the hotel can start advertising about Sea-Voyage Cruise on the social
networking pages with price quotes. Social media marketing helps the marketers to reach large
numbers of customers across the globes with cost-effective way.
Four Seasons Hotel can start discount advertising on the total package. Accommodation,
food and cruise can be provided through service-bundling strategy.
Four Seasons Hotel in Sydney can promote the cruise services through travel magazines
both print and online media.

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8. Implementation Plan
Identify and briefly discuss the key marketing actions
Customer characteristics: Four Seasons Hotel in Sydney first identify the customers’
characteristics as they will both target the corporate travellers and the leisure travellers. The
characteristics of the corporate travellers are not the same as the leisure travellers. Corporate
travellers like a lounge and corporate travellers like giant-sized rooms. On the other side, leisure
travellers like small, cosy rooms with plenty of food options.
Market segments: Four Seasons Hotel in Sydney will segment the market into four
market segments like behavioural, demographic, psychographic and geographic market
segments.
Target market: Four Seasons Hotel in Sydney will target the desired customer segment
for their accommodation service along with the Sea-voyage cruise.
Marketing strategy: In this stage, the organisation’s management finds out the
marketing channels to provide the advertisement and communication. Marketing strategy can be
social media, out-of-home and print media.
Positioning strategy: Positioning strategy is about placing the positioning statement as
stating the customers about USP of the hotel and the newly launched cruise.
Predicted effectiveness: Therefore, Four Seasons Hotel in Sydney will distribute 2000
brochures and it will provide advertisement on the social media.
Document these key actions in a timeline with projected dates
Key actions Projected dates

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Understand customer characteristics 20th June, 2018
Selecting market segment 1st July, 2018
Selecting target market 21st July, 2018
Understanding marketing strategy 10th August, 2018
Giving positioning strategy 30th August, 2018
Predicted effectiveness 20th September, 2018
Flag the actions that would require the substantial budget expenditure
Summary Statement
Sources of Capital
Owners' and Other Investments
$
6,027,50
Bank Loans 5,000
Other Loans 90,00
Total Source of Funds
$
6,122,50
Marketing Expenses
Buildings $

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90,00
Leasehold Improvements 7,750
Social media marketing $36,00
Location / Admin Expenses $24,50
Print and out-of-home marketing
expenses -
Advertising / Promo Expenses $18,00
Ship and Cruise expenses $15,000
Total marketing Expenses
$
12,47,120

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Appendices
Appendix 1
Ansoff’s Matrix
Ansoff’s Matrix of Four Seasons Hotel, Sydney
Existing products New Products
Existing markets Market penetration
 Social networking
strategy
 Sponsoring local
football team
 Successful
international
programme
Product development
 Helicopters service
 Butler personalised
service
New Markets Market development Diversification
 Four Seasons Cafe