CHM601 Marketing Plan: Pier One Hotel, Sydney - Target Market Focus

This marketing plan for Pier One Hotel in Sydney analyzes the external and internal environments using PESTLE and SWOT analyses. It identifies the need to expand the target market to include millennial travelers and outlines specific marketing strategies and tactics to achieve this goal. The plan details marketing mix elements (product, price, place, promotion) and includes an action plan with resource allocation and key performance indicators for implementation. The objective is to enhance the hotel's market position and attract a broader customer base by leveraging its unique location and services. This comprehensive plan provides a roadmap for Pier One Hotel to optimize its marketing efforts and achieve sustainable growth.

Running Head: HOTEL MARKETING 1
Marketing Plan: Pier One Hotel, Sydney

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Executive Summary
Marketing planning is the process of analyzing marketing opportunities, marketing objectives
and development of a plan for resources and capabilities and its implementation in practice. To
practice the marketing planning process, each and every organization develops an effective
marketing plan, so that it can offer its services to its targeted customers. The major objective of
this report is to prepare a marketing plan for well-known hotel in Australia, i.e. Pier One Hotel
Sydney. This marketing plan includes external and internal environmental analysis for this hotel.
Australia is the country that receives an increased number of domestic and international
travellers to explore. So, the hospitality organizations in country are enjoying profitable business
by accommodating different types of guests, i.e. business and leisure travellers, millennial
travellers etc. The external and internal environment of this hotel is favorable for the company,
but it needs to expand its target market to millennial travellers. This marketing plan includes
strategies and tactics to target its new customers. At the end, there is an action plan, which
includes different requirements and resources, required for implementation of this marketing
plan at Pier One Hotel.

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Table of Contents
Introduction......................................................................................................................................4
Company Overview.........................................................................................................................4
Review of Products and Services....................................................................................................5
External Environmental Analysis....................................................................................................6
PESTLE Analysis........................................................................................................................6
Competitive Analysis...................................................................................................................8
Commercial Partner Analysis......................................................................................................9
Consumer and Market Research..................................................................................................9
Internal Environmental Analysis...................................................................................................10
SWOT Analysis.........................................................................................................................10
Internal Research........................................................................................................................12
Organizational Structure Audit..................................................................................................14
Segmentation and Targeting......................................................................................................16
Objectives...................................................................................................................................18
Overview of Marketing Strategies to Achieve your Objective..................................................20
Strategies and Tactics.............................................................................................................20
Marketing Mix Elements........................................................................................................20
Action Plan....................................................................................................................................22
Key Performance Indicators.......................................................................................................23
Conclusion.....................................................................................................................................23
References......................................................................................................................................24

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Introduction
In today’s highly competitive business environment, companies primarily emphasize on
producing profits and revenues by its business practices and activities. Marketing is the process
of an organization, which is focused on selecting appropriate customers and targeting them, so
that they can affect their buying behavior and decision. Marketing plan is one of the most of
significant document, which is prepared by an organization to bring its new products and
services in the market. This report includes a marketing plan for a well-established hospitality
organization in Australia, i.e. Pier One Hotel.
This marketing plan includes both external and internal environmental analysis of this hotel by
using different tools and frameworks, like; PESTLE and SWOT analysis. Moreover, there is the
discussion about the major objectives and goals of Pier One Hotel, which are both qualitative and
quantitative in nature. The organization is implementing various marketing strategies to attain
these marketing objectives. Under marketing strategies, marketing mix elements are taken into
consideration that includes product, price, place and promotion strategies. This hotel is adopting
various effective strategies to promote its hotel and hospitality services in Australia and all over
the world. In addition to this, the organization is planning to expand its business operations
globally. Under this marketing plan, the company is targeting millennial travellers towards its
services. Furthermore, it entails an action plan that can be used by Pier One Hotel for
implementing all the strategies and tactics in practice.
Company Overview
Pier One Hotel is one of the well-established hotels in Sydney, Australia. The hotel is based
alongside the bridge and offers luxury hospitality experience with domestically inspired
restaurants and water-view accommodations. It is built on water with its private pontoon and
panoramic Sydney Harbour views. The mission statement of Pier One Hotel is to provide
excellent and luxurious hospitality services and traditional standards to its guests. The major goal
of this mission statement is to offer high quality standards and services in its rooms, food and
other departments. By determining the needs and demands of customers, the organization has
designed its services, so that it can entice a larger population towards its hospitality services. The
goals and mission statement of Pier One Hotel will support it in enhancing the awareness of
customers to service offerings. It is able to provide an exclusive experience to its guests, whether

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they are travelling for business or leisure purpose (Pier One Sydney Harbour, 2018). This hotel is
situated on water, so it is considered by visitors as a tourist site that caters as an extra resource
for Pier One. Thus, it offers various unique and exclusive accommodations, which are within 15
minutes walking distance from all dining and shopping destinations.
Review of Products and Services
Pier One Hotel is a well-known hospitality organization, which is located in the heart of historic
rocks of Sydney, Australia. It was a famous attraction, which was offering retail, restaurants and
amusements till it was re-emerged into a hotel establishing in the year 1999. By revolutionizing
its hotel business, the organization is able to provide an exclusive and quality sure experience,
whether they are staying approaching for business or leisure purpose. Primarily, Pier One Hotel
is offering accommodation and restaurant services to its customers or guests. It offers space for
meetings, conferences and special events. In its services, it also includes effective packages and
technology advancement to fulfill the needs of conferences and business travellers. In addition to
this, it also attracts the people to enjoy their stay at their rooms and other services, which are
accompanied an accommodation at hotel. All the suites and rooms have modern décor with the
maritime theme. Each and every room/suite includes various facilities and amenities such as
minibar, flat screen TV, sofa bed, spa tub etc.
Alongside the Sydney Harbour Bridge, Pier One Hotel is established on water, so it viewed by
travellers as a tourist destination that is the additional attraction for hotel. Leisure and event
customers play an important role in the growth and success of organization (Pier One Sydney
Harbour, 2018). There are some specific service features, which can be identified as its major
strengths such as; hotel ambience, environment, location of hotel etc. Its restaurant, named as
Gantry Restaurant and bar provides fine dining with wonderful views of waterfront of Sydney.
The organization is generating profits and revenues by offering its services as Sydney is a great
option for travellers, who are interested in food, shopping, leisure and restaurants. Currently, Pier
One Hotel is one of the top rated locations in the state. The feedback of guests indicates that they
love the property and its services more than other properties in nearby areas.
Thus, it can be said that Pier One is able to generate significant revenues and profits from its
unique and effective services. For attracting more guests, Pier One Hotel is adopting various

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advertising and promotional strategies. It is using online marketing campaigns to avail the brand
positioning to target market (Baker, 2014). Moreover, it adopts other methods of promotion such
as; direct marketing sales promotion, traditional advertising etc. The organization is promoting
its hotels and services by the use of promotional pages and Facebook advertisements. By doing
this, the organization is able to advertise its hotel and hospitality services while sustaining
effective publicity.
External Environmental Analysis
PESTLE Analysis
External Environmental Analysis is a process of analyzing different factors that affect growth
and business operations of a firm indirectly. These are the external factors, which cannot be
avoided and controlled by an organization (Kandampully, Zhang, and Bilgihan, 2015). These
particular factors may have a large impact on strategies, decision making process and business
performance of company. This section of report conducts PESTLE Analysis for Pier One Hotel,
Sydney. It analyzes different factors like; political, economic, social, technological, legal and
environmental factors. PESTLE analysis of Pier One Hotel in Australia is stated below;
Political Factors
Political environment and factors play an important in hospitality and hotel business in the
country. Government and these factors have a large impact on business operations and revenue
generation of a hotel. In Australia, the government supports the functioning of Pier One Hotel to
increase the number of guests and travellers, who visit Sydney. Political environment in
Australia is stable that is beneficial for development of hospitality business of Pier One Hotel.
Government of country has imposed various food quality standards restaurants and hotel, so this
organization needs to comply with these policies and regulations (Baker, & Magnini, 2016).
They are restricted to provide hygiene, healthy food products and to use the ingredients, which
are approved under food and safety standards. The position and performance of Pier One Hotel is
affected by consumer protection, employment policies and competitive regulations of Australia.
Economic Factors

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With the decrease in inflation and increase in GDP (Gross Domestic Product), the economic
conditions in Australia are likely to become better. It is the major reason behind the increase in
the wealth and property of population in the country. It is increasing the number of travellers,
who are willing and spend their time in hotels. It will increase the arrival of visitors to Sydney
and there will be increase in the demand for accommodation at hotel. Pier One Hotel is providing
exclusive and unique hospitality experience to the guests, so it can be in their priority list. Due to
this, Australian population will have more disposable income, which they can spend on leisure
activities. It indicates that there are some economic factors that can encourage the Pier One Hotel
to seek the profitability and development of hospitality business (Baum, 2016). Thus, Pier One
Hotel can offer appropriate classes of hospitality services, which suit higher class people and
cheaper packages that ordinary population can buy. Moreover, increased exchange rate offers
opportunity to Pier One Hotel to target Australian population and international clients, which
have high-value currencies.
Social Factors
Pier One Hotel is one of the most popular hotels among international travellers. There may be
some social and cultural factors, which can affect the business of Pier One Hotel such as;
customer buying decision, demographic characteristics, lifestyle of customers etc. The
organization needs to develop its services by considering the life style and level of people. In
Australia, aging population is more than younger population. So, customers will prefer matured
packages and services in hotels. Most of the people in country are very conscious about their
eating habits. They prefer the food that is healthier and less fatty. Pier One Hotel needs to
prepare healthier food and recruit the chefs, who are aware about different eating habits (Bowie,
Buttle, Brookes, & Mariussen, 2016).
Technology Factors
Technological factors are one of the primary environmental factors, which impact both hotel
business and its customers as well. With the increased technology advancement, Pier One Hotel
has to understand that an advanced and better infrastructure will assist it in enhancing the
business operations and services (Bordean, 2010). This hotel is adopting modern and advanced
technologies to entice the customers from worldwide. Furthermore, it uses internet marketing

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and websites for making reservations at hotels. It utilizes debit card and e-payment card to make
the payment transaction easier. By implementing updated technology, Pier One Hotel can
decrease the wages and some costs.
Legal Factors
For Pier One Hotel, it is significant to follow all the laws and regulations of food and safety laws.
The organization needs to comply with all the ethical and legal requirements, which are imposed
on macro-environment of hospitality organization. In Australia, some religious customers put
limitations on hotels. So, Pier One Hotel has to become more attentive about the plans and
policies. It needs to establish a suitable system to make sure that all of its guests are served
equally. In addition to this, this organization should maintain non-discriminatory policies and
ethical standards in its service offerings.
Environmental Factors
There are various factors, which are related to the natural environment. Changes in the weather
and environment have direct effect on hotel organizations (Buhalis, and Crotts, 2013). Pier One
Hotel needs to develop the activities, which do not create pollution on environment. The changes
in weather and environment have negative effect on restaurants and hotels. It can delay the
flights and arrival of travellers to Sydney.
Thus, Australia provides a favorable environment to Pier One Hotel to operate its hotel and
restaurant business. By dealing with the impact of these factors, organization can generate
significant revenues and profits in Australia.
Competitive Analysis
In Australian hospitality industry, there are various leading players, which are posing intense
competition for Pier One Hotel. One of the biggest competitors of Pier One Hotel is The QT
Sydney that is a boutique hotel in the city with similar services and price range. This hotel is
situated at the location, where public transportation is available outside the front gate. It is built
in a Heritage Building and serves the travellers, who are seeking for an amazing stay and
accommodation. Moreover, Four Seasons Sydney is another competitor that stands in product or
service category with more than triple number of rooms and suites. This organization is ideal for

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weddings, events and large conferences (Chu, Tang & Luo, 2016). The combined rooms and
event spaces can host more than thousand customers in comparison to Pier One. Lastly, The
Sydney Opera House is also one of the well-established buildings in the world and it rules the
Sydney’s Harbor. For attracting the customers, this hotel provides the tickets to shows like The
King and I.
Commercial Partner Analysis
Developing commercial partnership is one of the important practices for availing growth in the
country. There are various partners of Pier One Hotel like; Marriott Hotel works as intermediary
of Pier One Hotel. Due to reputation and image of Marriott Hotel, Pier One has various
customers. Looking at that Pier One is operating its hotel under Marriott, it brand image is
connected with Marriott that enhances its marketing and promotion both domestically and
globally. In Australia, government is supporting the growth of tourism and hospitality that is the
top indicator for growth of hotel business. Government is providing funds to the hotel for
improving its infrastructure. Furthermore, it has partnered with many suppliers such as
conference suppliers, who make sure that conference needs of people are satisfied (Dopson, and
Hayes, 2016). Apart from this, other partners are such as social and event organizers, Audio
Visual, live bands, wedding planners and party organizer. Tourism agencies and airline
companies are also commercial partners to Pier One Hotel in Sydney.
Consumer and Market Research
Along with the tourism industry, hospitality industry is also growing with a significant growth
rate. There are various trends, which are occurring in travel and hospitality industry. One of the
most significant trends is increasing impact of rich travellers from developing countries on travel
spending and expenses. In addition to business and leisure travellers, millennial traveller is the
new segment that is emerging in Australia. Sydney welcomed approximately 9.8 million
domestic visitors that were increased by 8.9% (National Visitor Survey, 2017).

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Figure 1: Domestic Visitors to Sydney (Source: National Visitor Survey, 2017)
Moreover, the number of international visitors is 3.8 million that was up by 8.7%.
Figure 2: International Visitors to Sydney (Source: National Visitor Survey, 2017)
Internal Environmental Analysis
SWOT Analysis
SWOT analysis is an important framework that evaluates four major factors of company, i.e.
strengths, weaknesses, opportunities and threats. From them, strengths and weaknesses are the

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factors for internal analysis, which provide an understanding of business (Freeman, 2016).
Opportunities and threats are the external factors, which management requires understanding
before making any decision. Pier One hotel is managing its strengths and opportunities in an
effective way, so that it can attract and retain millennial travellers at its hotel. These strengths
and opportunities can assist the organization to overcome its weaknesses and threats in
Australian hospitality industry. By this, the company will be able to attract millennial guests
from all over the world. SWOT analysis of Pier One Hotel is given below;
Internal Factors
Strengths Weaknesses
 One of the major strengths of Pier
One is higher brand recognition and
recall among competitors and
customers
 Location of this Hotel is the biggest
strength as it is situated on Sydney
Harbour Bridge that can offer a
unique and better experience to
millennial customers.
 The organization has enhanced its
brand image by partnering with
Marriott as Marriott is already a well-
recognized and established hotel all
over the world.
 Pier One Hotel is among leading
hospitality players with quality
services, effective conference
packages, audio visual services and
technical support.
 The organization is using different
technologies, which will assist in
attracting millennial guests, as they
like to live with their smart phones
and in the technical word.
 Sydney is receiving travellers from
different countries and cultures, so there
is a need of effective training about
different cultures and languages at Pier
One Hotel.
 This hotel is operating its hospitality
business with different management
styles and it is the biggest weakness that
is faced by Pier One Sydney.
 The rooms and other hospitality services
at Pier One Hotel are not well-designed
and efficient as per the expectations of
millennial customers.
 Pier One Hotel has limited market share
in spite of better brand recall
 Pier One hotel has lack of brand
presence and recognition among
millennial travellers in global hospitality
markets (Huang, & Sarigöllü, 2014.)
Opportunities Threats

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External Factors
 Pier One has various opportunities to
expand its business in international
market
 Due to its prominent location, this
hotel is able to entice both leisure
customers and tourists.
 Decrease in the value of Australian
Dollar is improving the number of
international travellers because they
see Australia as an affordable tourist
destination.
 It can enhance its hospitality services
by implementing innovation in
services and using modern
technology, as millennial guest is tech
savvy.
 It can design its services and hotel
facilities according to the needs and
expectations of millennial guests.
 As many of the smartphone
applications are used by millennial
guests, so Pier One Hotel can focus
on providing its services through
different apps like Groupon.
 However, the location of hotel is a better
opportunity for customers, but it can be
adverse in situations of climate changes.
 Some economic challenges can reduce
the tourism and arrival of millennial
customers. These economic challenges
may include inflation, economic
depression and recession etc.
 Organization is facing intense
competition in Sydney hospitality
sector, as there are various hospitality
players, which are already have well-
established business.
 Entry of many local and global brands
has posed a threat for Pier One Hotel,
Sydney (Galičić, & Laškarin, 2014).
From the above internal analysis, it can be evaluated that Pier One Hotel has favorable internal
environment for attracting millennial travellers towards its services. By considering the
opportunities, the organization should improve and enhance its hotel and hospitality services as
per the demands and expectations of millennial travellers. It will enable the Pier One Hotel to
overcome its weaknesses and threats and attain its objective of increasing millennial travellers by
20% in next 1 year.
Internal Research
Internal research is the process of analyzing the internal environment on the basis of internal
sources and data records. On the basis of this internal data of organization, the organization can
make the marketing decisions by adopting marketing information system and its theories.

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Marketing information system can assist the organization in making decision regarding
company’s marketing processes and practices. Analysis of internal data will support the
organization in measuring its performance (Goryushkina, Shkurkin, Petrenko, Demin, &
Yarovaya, 2016). The theory of marketing information system states that this system includes
people, processes, tools and equipment to collect, evaluate and deliver the required, adequate and
accurate data to the team, who make decisions regarding marketing. By using this theory, the
internal research can be conducted for Pier One Hotel. It can be done by analyzing the below-
given internal data of hotel:
 Occupancy Levels
According to the figures and below-given graph, it can be stated that Sydney is the Australian
city with highest hotel occupancy rate. At Pier One Sydney, the occupancy level is generally
very higher than other nearby hotels. It is going up to over 100 %. Sometimes, one room can be
rented more than one time in a day. The below given graph shows the hotel occupancy rates at
Sydney hotels that is more than other cities in Australia, i.e. Brisbane and Melbourne. Pier One
Hotel is also a part of these hotels in Sydney, so hotel occupancy rate can also be estimated at
this hotel also (Solomon, 2014). When the company will implement the marketing plan for
attracting millennial customers also, then it will be able to increase its occupancy rate also.

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Figure 3: Hotel Occupancy Rate (Source: National Visitor Survey, 2017)
 Types of guests
At Pier One Hotel, the major types of guests are the people, who are arriving Sydney for
business and leisure purpose. It welcomes the travellers, who are interested in restaurants, food
and shopping in Sydney. It is the best attraction for tourists in Sydney. Now, the organization is
planning to target the millennial customers in Australia and worldwide (Huang, & Sarigöllü,
2014). In the future, this organization is targeting to increase millennial guests by 20% in the
duration of next 12 months.
 Average length of stay
Average length of stay is the average value of days guests stay at hotel in a specific period. It can
be calculated by adding total lengths of stay of each guest in a month and dividing by number of
guest in that month. At Pier One Hotel, rates vary by the availability, types of room and season.
During the high demand period, the organization is applying a need for minimum length of stay.
Average length of stay at this hotel is better than other hotels in Sydney. This hotel is situated in
a unique and attractive location of Sydney, so average length of stay of travellers is more than
others.

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 Seasonality of the business
Seasonality is one of the most important factors in the hospitality and tourism industry. There are
few months, which are most appropriate to visit Sydney. As Pier One Hotel is located in Sydney,
so it has peak season September through November and from March to May (Kandampully,
Zhang, and Bilgihan, 2015). These are the months that skirt low and high seasons of the city.
These months offer millennial travellers relaxed temperatures. These specific months increase
the tourist arrival in Australia and guest arrival at Pier One Hotel. The millennial travellers travel
to Sydney to get relaxed, so this season will be beneficial for Pier One Hotel.
 Origin of guests (domestic/international)
Both local and international guests are reaching to Sydney and taking accommodation services of
Pier One Hotel. Being situated on water, it is considered as the best tourism destination for
tourists. At Pier One Hotel, the millennial travellers are arriving for all purposes such as
shopping, leisure and business purposes.
 Payment methods
Pier One Hotel accepts the payment through Visa, MasterCard, American Express and Diners
Club as well as travellers’ cheque and cash. To confirm the reservation, the hotel management
asks for credit card details of guest (Kim, Kim, Kim & Magnini, 2016). The millennial
customers prefer to use updated and higher technology, so this hotel is offering the reservation
and booking facility through smartphone application and its official website.
 Guest satisfaction
Guest Satisfaction is the most significant objective for the management and staff at Pier One
Hotel. They are making various efforts for satisfying the millennial guests and meeting their
needs and demands during their stay. The level of guest satisfaction can be measured by
considering the rating given by the guests. According to this, Pier One Hotel is one of the top
rated properties in Sydney. Mostly, people like the location of the hotel, so they have rated it on
9.5 for couple stay and accommodation. Under guest satisfaction, it is rated for the best value in
the city. Guests are receiving more for their payment in comparison to other hotels (Sargeant, &
Jay, 2014).

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Thus, the internal research indicates that Pier One Hotel is managing its services with the
changes in market trends and guest preferences. It is generating its guest base and revenues by
offering luxurious and quality hospitality services (Legrand, Sloan, and Chen, 2016). Through
this marketing plan, the organization will focus on improving its internal environment and
providing satisfactory services to millennial customers.
Organizational Structure Audit
Organizational structure of an organization is the systematic framework that defines how the
practices like allocation of tasks, communication and supervision are managed and coordinated
for attaining the objectives of organization. The organizational structure of Pier One Hotel
includes different reporting structures, where the organization can place its marketing
information system. Pier One Hotel has managed its information system by developing a
systematic structure that includes different levels of hierarchy (McDonald, & Wilson, 2016).
This hierarchy starts from General Manager, Assistant Manager and Deputy Assistant Manager,
who are working on the same level. Deputy Manager is liable to manage different departments of
hotels like; Finance, front office, Human Resource Management, Food Director, Sales and
Logistics. All of these departments have assigned with different responsibilities and tasks. Food
Director includes restaurant manager and kitchen manager, who manage the tasks and
responsibilities of waiters, cashier, food runners, chef and executive chef. Under this
organizational structure, the lower authority is reporting higher authority regarding their jobs and
related issues.
By increasing the cooperation and communication with individual department, Pier One Hotel is
continuously improving the organization culture of hotel (Mok, Sparks, & Kadampully, 2013).
All the levels of management at Pier One Hotel are working according to its code of conduct and
effective policies. These departments are managed by adopting an effective management
information system such as MIS and ERP. These systems are assisting Pier One Hotel to manage
all the business processes and activities, which can help the hotel in enticing millennial travellers
towards its hospitality services. All the information is flowed by the use of effective technology.
The organization structure of Pier One Hotel is given below;

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Figure 4: Organizational Structure
By considering the above organizational structure, this hotel can analyze the information need of
organization and make decision regarding its marketing processes (Kandampully, Zhang, and
Bilgihan, 2015). Under this organizational structure, all management levels of Pier One Hotel
ensure that it is able to meet positive service encounter in case of millennial travellers.

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Segmentation and Targeting
Determining segmentation and target markets is an important part under marketing plan
formulation process. Market segmentation is the process, through which an organization aims a
particular market segment after looking at some specific variables and characteristics such as
behavioral, demographic, geographic and psychographic characteristics (Luttrell, 2016). Pier
One Hotel is offering quality and luxurious hospitality services to Australian and international
travellers. In the Australia, tourist arrival is increasing with a significant growth rate and the
country is expecting to receive more than 1$ million travellers. By looking at the internal records
of the hotel, it can be stated that currently, there are two types of travellers such as business
travellers and leisure travellers who are coming in. In Sydney, the arrival of business travellers
has been increasing by approximately 6% every year (National Visitor Survey, 2017). Most of
the targeted audiences are travelling for leisure and fun activities. At Pier One Hotel, These
customers are looking for getting luxury and premium hospitality services at Affordable prices.
These travellers are targeted on the basis of behavioral, demographic and psychographic
characteristics. Apart from business and leisure travellers, now the organization is targeting
millennial customers towards its hospitality services. Different characteristics of targeted
travellers are stated below;
Behavioral Characteristics
Under the process market segmentation, this organization is targeting the people by considering
their similar behavioral characteristics. Pier One Hotel categorizes the guests as per the events
and occasions. The business professionals need to organize meeting with their clients so it is
providing the conference room for meetings and business events. In addition to this, it offers its
suites and halls for wedding and small function purposes (Pavlou, & Stewart, 2015).
Demographic Characteristics
Demographic segmentation is one of the most important bases for determining the appropriate
customer segment. For Pier One Hotel, leisure and business travellers are the major customers.
The organization is emphasizing on the guests, who are travelling to Sydney for leisure and
business purposes (Xu, & Gursoy, 2015). The suites and rooms of this hotels offers various
facilities and amenities like; free internet and Wi-Fi facilities, lobby facilities for these guests

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that are from different income and age group. As far as age group is concerned, 15 to 44 years
old people are the largest age group of travellers to Sydney. The organization is making efforts to
fulfill their leisure needs.
Psychographic Characteristics
Under this segmentation, Pier One Hotel is categorizing the people by considering their
personality traits, behavior, attitudes, values and lifestyles. After determining these
characteristics, this hotel is developing its hospitality services to fulfill the needs of guests
(World Economic Forum, 2015). It is making efforts to find out new and unique food menus.
The lifestyle and needs of customers are changing towards hospitality services. They want to
avail the services according to their needs and wants. They need free internet services,
comfortable room spaces, advanced facilities etc. Considering this fact, Pier One Hotel is making
its services more advanced and fulfilling the needs of targeted audiences.
Millennial Travellers
In future the organization should expand its target market by targeting the arrival of millennial
travellers to Sydney. Generally, the group of millennial travellers includes the young adults, who
are born after 1980s. After collecting the market information regarding the segment, it can be
analyzed that millennial travellers are driving the hotel and hospitality sector with swing and full
force (Steenkamp, 2017). This segment is influencing the hotels across the world to implement
new and effective ways. They are working to meet the needs and demands of these travellers. As
this generation is continuously growing and getting matured so Pier One Hotel need to fulfill
their emerging needs and conditions to effectively advertise to them (Childs, 2018). To target
millennial travellers, this hotel requires adopting some technology innovation and other changes,
so that it can meet their expectations and provide value for their money. After looking at the
revenue management software and cost acquisition, it can be stated that business travellers are
the most profitable segment for the Pier One Hotel. The reason behind this is that these guests
can bring most of its revenues at least resources.
Thus, by targeting the customers, who are sophisticated, self-defined and individualistic and the
people, who are willing to pay more money for their stay while on business trip, Pier One Hotel
will be able to generate more revenues and profits in the country (Sargeant, & Jay, 2014). To

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attract millennial customers, the company will adopt and implement effective marketing
strategies and tactics.
Objectives and Goals
Goals of Pier One Hotel include the targets like enhance the brand presence in international
markets and capture international business opportunities in hotel and hospitality industry. In
addition to this, the hotel aims to attract millennial guests towards its hotel and hospitality
services. For attaining these goals, organization will function with its team effectively and
implement effective strategies accordingly.
Objectives
To develop this marketing plan, Pier One Hotel will establish marketing objectives for its hotel
and hospitality services. The primary objectives of the organization are stated below;
 To increase the number of millennial guests by 20% in next timeframe of 12 months in
Pier One Hotel.
 To increase the gross sales of rooms by 25% in the timeframe of next three years
 To enhance the hotel’s brand through advertising and promotional techniques
 To bring innovations in hospitality services, so that it can enhance the profitability and
sales volume
 To increase the hotel’s market share by significant percentage.
 To provide the 100 percentage customer satisfaction and provide full value for their
money (Newsroom, 2016)
The above mentioned objectives of Pier One Hotel can be evaluated by the use of dimensions of
SMART framework, which is stated below;
Specific
The marketing objective of Pier One Hotel are really specific and clear, because it will upgrade
its services with higher technology innovations and fulfill the needs of new target market, i.e.
millennial travellers. It will focus on travellers, who love to spend money on their
accommodation. The organization has established a specific objective that it will make efforts to
increase the number of millennial travellers by 20%. To increase the sales volume and

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profitability, it will adopt different social networking sites such as Instagram, Facebook, Youtube
etc. It will assist the organization in making the customers more aware (Zhechev, 2016).
Measurable
In the above written objectives, there are various objectives, which can be measured by the
organization. The effectiveness of objectives can be measured by considering the number of
millennial travellers’ arrival at hotel and their average length of stay at Pier One Hotel. To
increase the number of customers and room sales, it will ensure the higher level of guest
satisfaction (Pentescu, 2016).
Attainable
For Pier One Hotel, there is nothing that cannot be achieved by this hotel. It will make various
efforts and implement effective strategies, so that it can attain the objectives easily. It will try to
improve the accommodation experience of millennial guests by making some technological
innovation in its services. It will train its staff to deal with the millennial travellers. In this way,
the objectives of Pier One Hotel are attainable, if it will implement effective tactics under
marketing plan (Solomon, 2014).
Results Oriented
The objectives of this company are tied with the goals and result-oriented, which will lead the
organization to attain profitability and enhance the performance of this hotel and overall position
in international hospitality industry. It will maintain the higher standards of services for
providing higher level of millennial guest satisfaction.
Time-bound
For meeting these objectives, the Pier One hotel will establish a timeframe of 12 months, under
which it will focus on the activities and strategies for generating a large guest base of millennial
travellers towards its hospitality services.
Overview of Marketing Strategies to Achieve your Objective
To attain the above mentioned goals and objectives, the Pier One Hotel will adopt some specific
strategies and tactics. Under this marketing plan, the organization is targeting millennial

HOTEL MARKETING 22
travellers. These are the travellers, who want their accommodations to be efficient and well-
designed. It should be like their highly technological world, which they stay in with their
smartphones (Srivastava, & Maitra, 2016). To meet their needs and wants, organization will
develop various strategies, which are given below;
Strategies and Tactics
Brand positioning strategy
For attracting the customers from Australian market, especially millennial, considering as they
have higher spending rate, it is significant that Pier One Hotel should advertise the brand name
effectively by using different positioning strategies (Schuckert, Liu, & Law, 2015). For instance,
the organization is using value brand positioning that assists in determining how guests respond
to advertisements and other promotional techniques can be adopted through different heuristics
like; brand loyalty, reliability on emotions and norms etc.
Market Research Strategy
Pier One Hotel should spend the expenses and time into marketing of its services to millennial
customers. For this, it is significant that the organization should understand the spending pattern
and culture of the customers. Moreover, it is important to evaluate that why the millennial
travellers should travel to Sydney and choose to accommodate in this hotel (Cunill, 2017). By
implementing market research strategy, the organization should conduct research about the
trends and changes in the hospitality industry. This strategy will assist the organization offering
the services effectively.
Marketing Mix Elements
Product
Pier One Hotel is a service organization and offering hotel and hospitality services to different
target customers. Pier One Hotel is offering accommodation and restaurant services to its
customers or guests. It offers space for meetings, conferences and special events. To serve the
millennial travellers, it should make technology innovation in service offerings. It should provide
them personalized and meaningful hotel experience (Sheth & Sisodia, 2015).
Price

HOTEL MARKETING 23
The hospitality services at Pier One Hotel are very affordable for each group society class. The
firm has categorized its services in different packages, so that it can be afforded by the people
from each income class. For millennial traveller, it can offer different packages with higher
prices because they are ready to spend money on their stay (Leung, Bai, & Stahura, 2015).
Place
By expanding its target market, Pier One Hotel needs to expand its global presence. It is one of
the most popular hotels in Australia. To target the millennial travellers, it should enhance its
distribution channels. To approach millennial travellers, it will use both direct and indirect
channels of distribution. It can expand its business in some neighboring nations such as Pacific
Region and New Zealand. As these people are tech savvy, so it should enhance the technologies
to make reservation and online payment at hotel (Newsroom, 2016).
Promotion
Pier One Hotel should focus on promoting its services among millennial customers. Millennial
travellers are tech savvy, so the company should conduct an online marketing campaign. It will
give the organization opportunity for position its brand among targeted customers. As per a
survey, 95% of the internet users are between the age of 25 years and 35 years and they are using
internet and social networking sites every day. In addition to this, it can promote its hospitality
services through newspaper, social media sites, magazines etc. These advertising and
promotional activities will enhance the organization’s efforts to get most profitable customers
from this new target market (Assaf, Josiassen, Mattila, & Cvelbar, 2015).
Action Plan
Marketing of services for millennial customers is very profitable for the organization. This is the
target segments, which covers a huge part of total population. After preparing this marketing
plan, Pier One Hotel will implement this plan by developing an action plan. This action plan will
include all the processes and activities along with used resources and time duration (Westwood,
2016). Under each and every strategy of Pier One Hotel, it will establish the activities with their
priorities and specific resources will be allocated for every strategy.
The action plan for Pier One Hotel is stated below;

HOTEL MARKETING 24
Strategy Activity Priority Resources Timing
Product
Strategy
 Development
of services
and effective
hospitality
service
delivery
 Use of
updated and
innovative
technology at
hotel rooms
 There should
be availability
of hospitality
services on
internet and
website.
1  Financial
resources for
service
development
such as hiring
cost and
training cost
of hotel staff
 Human
resources for
effective
service
delivery
1-3-2018 to 1-4-
2018
Pricing Strategy  Set an
appropriate
pricing for
each income
group of
millennial
customers
 Provide
discounts to
regular
business and
millennial
travellers
 Most of the
millennial
travellers are
ready to pay
the money for
their
relaxation.
1  Financial
Resources
 Research and
development
for analysing
the market
trends and
changing
needs of
customers
1-4-2018 to 1-5-
2018
Distribution  It will use
non-traditional
channels of
distribution
such as;
3  Suppliers
 Third party
websites
 Online travel
agencies
1-5-2018 to 1-8-
2018

HOTEL MARKETING 25
internet, online
booking
services,
mobile
application.
 The major
focus of
organization
should be on
offering
booking
services
through their
smartphones.
 Tangible and
intangible
resources
 IT personnel
(Ryan, 2016)
Advertising and
Promotion
 Online
Marketing
 Print media
 Social media
 E-mail
Marketing
2  Marketing
personnel
 Internet
resources
1-8-2018 to 1-
11-2018
Sales strategies  Development
of loyalty
programs
 Direct sales
through
wholesalers,
online travel
agents and
third party
websites
2  Finance
 Human
Resources
 Travel agents
1-11-2018 to 1-
2-2019
The above action plan states that Pier One Hotel should use effective strategies by including
different activities under specific timeframe. Under product strategy, the organization needs to
enhance its hospitality services by involving new techniques. The organization understands that
millennial guests are tech savvy and they grew up with the internet and mobile phones. Most of
them make research for their travel plans and hotel booking through their mobile devices. 85% of
these customers own their smartphone and connect on social media sites. Under product/service
strategy, Pier One Hotel should improve its hospitality services and provide updated
technologies to enhance the accommodation experience of millennial customers. Under pricing
strategy, Pier One Hotel will ensure that they provide the service value to millennial travellers
for their money.

HOTEL MARKETING 26
As discussed above, millennial customers are actively using updated technologies and
smartphones, so that organization should enable them to book their room through smartphone
applications (Sargeant, & Jay, 2014). For this, this hotel will use its IT resources and third party
resources. After establishing services, Pier One Hotel will focus on promoting and advertising its
services among millennial customers. Under this, the major emphasis of organization will be on
social media networking sites and internet, as millennial travellers are actively engaged to use
these sites. In addition to this, Pier One Hotel will focus on implementing effective sales
strategies, so that it attract and retain millennial customers towards its hospitality services in
Sydney. By the execution of loyalty programs, it will be able to attract this targeted segment. In
this way, this action plan will assist Pier One Hotel in attaining its objective of increasing
number of millennial travellers by 20%.
Key Performance Indicators
There are various ley performance indicators, which can be used by Pier One Hotel to evaluate
the effectiveness of marketing plan. For this hotel, the key performance indicators are such as;
number of guests, average length of stay at hotel, sales revenues, occupancy rate, revenue per
available room and labor cost ratio. By considering these KPIs, this hotel can analyze whether its
marketing plan is working. It can look at the increased number of millennial travellers at Pier
One Hotel. For monthly evaluation, it will consider the average length of stay for a month that
will assist in understanding the effectiveness of new marketing plan (Presbury, 2008).
Conclusion
Marketing is a strategic tool, which each and every company implements in order to develop and
emphasize on several marketing processes of the firm. It offers an opportunity to implement new
and innovative ideas related needs of business to be established. From the above report, it can be
concluded that Pier One Hotel is using effective marketing strategies for attracting its targeted
customers like; business travellers, leisure travellers and millennial travellers. The report
prepares a marketing plan for the company after analyzing its external and internal environment.
The organization is a well-established hotel in Sydney and offering luxurious and quality

HOTEL MARKETING 27
hospitality services to its potential guests. The report defines different marketing and strategies
aspects regarding Pier One Hotel. Moreover, the organization can implement this plan by using
action plan and evaluate this using Key Performance Indicators.

HOTEL MARKETING 28
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