Tourism and Hospitality Marketing: Four Seasons Hotel Marketing Plan

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This report provides a comprehensive marketing plan for the Four Seasons Hotel in Sydney. It begins with an executive summary outlining the hotel's objectives, target market (corporate and business travelers), and competitive landscape within the flourishing Australian hospitality industry. The report analyzes the hotel's mission, vision, and corporate objectives, followed by a detailed marketing review that includes industry overview, target market analysis, the 4Ps of the marketing mix (Product, Price, Place, Promotion), and a SWOT analysis. Porter's Five Forces model is also applied to assess the competitive environment. The report then proposes new marketing and financial objectives, explores strategic alternatives using Ansoff's Growth Strategies Matrix, and justifies the chosen strategy. Finally, it includes an implementation plan with key marketing actions, timelines, and budget considerations, along with a bibliography and appendices.
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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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1TOURISM AND HOSPITALITY MARKETING
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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