Hope Street Hotel Marketing Strategy: A Comprehensive Report

Desklib provides past papers and solved assignments. This marketing report analyzes Hope Street Hotel's strategies.

Marketing Essentials

Table of Contents
LO3..................................................................................................................................................1
Develop and evaluate a basic marketing plan..................................................................................1
Executive Summary.....................................................................................................................1
Overview of Hope Street Hotel...................................................................................................1
Situational Analysis.....................................................................................................................2
Marketing Objectives...................................................................................................................4
Strategies......................................................................................................................................5
Segmentation, targeting, positioning (STP).................................................................................5
Marketing mix.............................................................................................................................6
Implementation plan....................................................................................................................7
References........................................................................................................................................8

LO3
Develop and evaluate a basic marketing plan
Executive Summary
The present report has provided an understanding of marketing activities with a specified
procedure of market plan. The background of Hope street hotel is explored in this report to
identify whether the new gym services at hotel attract the customer needs or not. Internal
potential of the hotel is analysed with the help of SWOT analysis while external analysis is done
through PESTEL that suggest the Hope street hotel is potential to acquire competitive position in
the market, however it requires to implement some necessary changes in its current policies and
systems to gain high growth advantage (Wearne and Morrison, 2013). Besides marketing mix
strategy of the hotel is recommended to enable it to enhance its brand value and recognition in
the hospitality industry. The entire marketing plan is intended to make Hope street hotel capable
of beating the tough competition in the market and attract large number of audience towards it.
Overview of Hope Street Hotel
Hope street hotel is in the epicentre of Liverpool's Georgian neighbourhood. It is an independent
and leading 4-star hotel in Liverpool that offer excellent and professional hospitality services.
The hotel has around 89 rooms in which urbane style is followed that offer fresh and natural
organic experience to the customers (Hope Street Hotel, 2019). Hope street hotel emphasise on
the availability of friendly environment and thoughtful services along with delicious food to
satisfy the customers in the UK. Customers are nowadays very much conscious about their
health, and therefore, the hotel is planning to open a gym at the hotel so that luxurious and
healthy needs of customers can be fulfilled. There is wide scope of success and growth to the
hotel with the availability of gym at its hotel, as the past records and feedback of customers has
suggested the organisation to provide such services. Also, youth is more attracted towards such
services that help the hotel to enhance its brand recognition at a wide scale.
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Situational Analysis
Internal Analysis: This analysis helps the Hope Street Hotel to identify its current potential to
meet out the strategic objective. Internal analysis can be done with the help of SWOT analysis.
SWOT analysis supports the organisation in identifying its strength, weaknesses, opportunities,
and threats.
SWOT analysis
Strength
 Non-substitutable products as the Hope
Street Hotel is constructed and
organised as per historical trend.
 customers will never stop travelling and
eating, and therefore, it belongs to a
growth-oriented industry
 high opportunities for growth in the
overseas market (CHRISTIAN, 2015)
 Labour intensive approach of Hope
Street Hotel enables it to exploit
overseas market with excellent and
qualified employees
 It is highly adaptable, and therefore
various changes in the hospitality sector
can be easily acceptable
Weaknesses
 It highly depends on travellers and
therefore changes in the purchasing
power or political environment of
country impacts the sales of Hope
Street Hotel
 The profitability and sales of the Hope
Street Hotel largely depends on seasons
and festivals
 Lack of efficient and talented
employees may not establish a good
relationship with the customers
 There are low barriers to new entrants
in the hospitality sector of the UK, and
therefore, it impacts the profit margin
of Hope Street Hotel (Madsen, 2016)
Opportunities
 Increasing population and their desire
to travel may boost the productivity and
Threats
 Recruitment and retainment of skilled
staff are tough for Hope Street Hotel as
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profitability of Hope Street Hotel.
 Adding value to the products and
services at Hope Street Hotel ensure the
availability of quality food and
hospitality services. It supports the
organisation in attracting more
customers from different market
segments
 Hope Street Hotel is more concerning
health and climate in the UK; hence it
may attract more customers towards its’
healthy and hygienic approaches.
 Increasing globalisation has resulted in
an increase of international tourists and
therefore provide growth opportunities
to the Hope Street Hotel
 Quality and healthy catering services of
Hope Street Hotel
employees generally get training and
experience and leave the hotel for a
better future. Hence impacts the
services of the hotel
 Increased climate threat may reduce the
long distance travelling and therefore
affect the customer base of Hope Street
Hotel
 An ageing population may affect the
requirement of fresh and energetic
labours for Hope Street Hotel (Arif and
Hossin, 2016)
 Increasing terrorism and political
instability in the country affects the
sales and profitability of Hope Street
Hotel
External Analysis
Instead of internal analysis, Hope Street Hotel is required to identify the external factors
prevailing in the country that may impact the business operations of the hotel. To analyse the
impact of external factors, PESTEL analysis is done as follows:
Hope Street Hotel is required to continuously monitor the political environment of the UK as it
is unpredictable and may highly influence its business activities. For example, the Digital
Economy Act, 2010 was enacted to prevent illegal activities regarding file sharing and
infringement of copyrights. Hence, according to this act Hope Street Hotel will be held
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responsible for the execution of illegal activities by its customers due to the availability of free
internet and wifi. Therefore, the hotel must be cautious toward such services. The economic
factors in the UK include changes in the borrowing rate, inflation rates, exchange rates, etc. For
example, economic environment of UK has impacted the money spending activities of citizens
positively and therefore they spent more money in travelling and hospitality products and
services which results in high sales and productivity of Hope Street Hotel (Adamkasi, 2017).
However, high VAT charges on hospitality services reduce the profit margin of the organisation.
Social factors in the UK largely impact the hospitality services of Hope Street Hotel. Hence, the
organisation has to consider the different needs of people based on diversified culture, religion,
and beliefs. For example, the London Olympics games have increased the customers of Hope
Street Hotel; however, it has to consider socio-cultural factors regarding it (Akkanen, 2017).
Hospitality sector is highly influenced with the technological advancement in the country. Safe
and secured technology is preferred by most of the customers. Travellers visit to the hotel in the
hope of luxury and technology friendly environment. Therefore, the management of Hope Street
hotel is required to utilise the technology beyond the standards to grab the customers against its
rivals.
The hospitality industry is directly impacted by the changing environmental factors. For
example, bad weather conditions, flood, storms, etc. may cause a negative impact on the business
sales of Hope Street hotel, and therefore, it must use appropriate measures to avoid it (Adamkasi,
2017). Compliance of legal factors is essential for smooth operation of Hope Street hotel. Legal
regulations include health and safety laws, employment laws, discrimination laws, etc. Hence,
compliance of these laws satisfies the customers as well as other stakeholders of the hotel and
ensures them safe and secure hospitality services.
Marketing Objectives
 To make the brand of Hope Street hotel valuable and recognisable
 Grow the digital presence of hotel
 To make attractive and unique websites
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 To promote the hotel through online travel agencies
 Retain existing customers and attract large number of audience with quality services
Strategies
 By improving distribution channel and supply chain of the hotel
 Setting up of professional and technical team dedicated towards digital presence of Hope
Street hotel and website development
 Contractual agreements with travel agencies and distributors
 Better relationship with travellers through regular interaction with social media
 Innovative and creative marketing tactics to attract customers towards the hospitality
services of Hope Street hotel
Segmentation, targeting, positioning (STP)
This model is widely beneficial for the Hope Street hotel to attract and retain a large number of
customers. This model emphasises on systematic procedural steps to position the hotel in the
competitive business environment with the effective strategy of introducing the gym there. The
first step is market segmentation in which Hope Street hotel is required to identify the impact of
customer behaviour, regional benefits, demographic factors, etc. on the setting up of the gym and
accordingly segment its market (AVANTI JOGLEKAR, 2019). Also, the selection of
distribution channel is also essential which can be based on contracts with travel agents that
promote the hospitality services of Hope Street hotel along with the facility of the gym there. It
supports the hotel to reach its target customers effectively.
The next step is to target the customers that must be based on the past records that which
segment is more profitable for Hope Street hotel and which segment utilises low resources and
bring the high-profit margin to it. Also, target customers can also be identified according to
customer feedback, and opinions. The target customers of the hotel must include the young age
people as they are generally very healthy and physique conscious. Such target customers may
offer more profit and competitive position to the hotel in the hospitality industry.
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The third step is positioning the brand of the Hope Street hotel in the best possible way to gain
high recognition and success (Pyo, 2015). The positioning strategy can be referred to as an
implementation step through which the Hope Street hotel targets its customers by creating an
ideal image of the hotel in the eyes of guests. Position strategy of the hotel must be based on the
provision of personalised services and quality experience to the customers at the gym. The
positioning strategy will make the Hope Street hotel best choice for its customers to visit and
enjoy the ambience, luxury services and food there.
Marketing mix
Product: Hope Street hotel must consider customer expectations and needs while providing gym
products and services to them. In addition, the hotel can also provide recreational
Price: The pricing strategy is required to be effectively done; otherwise. Hope Street hotel
cannot retain its customers for a long time. The pricing strategy of the hotel services and gym
services must be based on competitive prices so that customers can avail high-quality hospitality
services at affordable prices in comparison to its competitors. In addition, the pricing may vary
according to the seasons and festivals also (Marketing mix, 2019).
Place: In the hospitality sector, the accessibility of the products and services can be done when
customers visit the Hope Street hotel. Hence, the place where the gym will be set up must be
attractive and offer excellent services. The ambience of the gym must be convincing and
supported by a professional team that provide appropriate guidance to the customers.
Promotions: For the Hope Street hotel, direct advertisement and marketing tactics is helpful and
effective. The hotel can use brochures, hotel websites, hotel pens and pencils, billboards,
television commercials, social media, etc. for the promotion of new services at the Hope Street
hotel.
People: Employees are the best representative of Hope street hotel that directly deals with
travellers and tourists. There must be skilled and efficient people that are dedicated to serving the
customers. Hospitality sector requires efficient and well-mannered staff members that can
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manage the customer complaints and offer the best services to the customers (Bowie et al.,
2016).
Physical Evidence: The physical evidence of the gym must be attractive and equipped with
essential tools and equipment. Also, the physical environment of the hotel must be calm and
energised to offer better hospitality experience to the customers.
Implementation plan
This is an execution phase of marketing plan which involves the implementation of step by step
process to attain the set marketing objectives. The promotion of the new services at Hope street
hotel is required to be done with the help of advertisement campaigns, printing of brochures,
posting of pictures, and videos on social media, and television advertisement (Pereira, 2017).
However, the entire promotional activities require market research to identify the real-time
supply and demand in the market. Promotional Budget is estimated at £ 90,000 which includes:
Particulars Amount (in £)
Market research 15,000
Advertisement campaigns 25,000
Brochures 10,000
Social media advertisement 20,000
Television advertisement 20,000
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References
Books & journals
 Akkanen, J., 2017. Key Factors for Entering the Hotel Design Market in the UK.
 Arif, T.M.H. and Hossin, M.Z., 2016. A comparative analysis of internal and external
environments between Hotel Hyatt, UK and Hotel The Cox Today, Cox’s Bazar,
Bangladesh. IOSR Journal of Humanities and Social Science, 21(6), pp.13-22.
 Bowie, D., Buttle, F., Brookes, M. and Mariussen, A., 2016. Hospitality marketing.
Routledge.
 Madsen, D.Ø., 2016. SWOT Analysis: A Management Fashion Perspective. International
Journal of Business Research, 16(1), pp.39-56.
 Pereira, E., 2017. An evaluation of marketing strategies in 5-star boutique hotels: A case
study, Dylan hotel (Doctoral dissertation, Dublin Business School).
 Pyo, S., 2015. Integrating tourist market segmentation, targeting, and positioning using
association rules. Information Technology & Tourism, 15(3), pp.253-281.
 Wearne, N. and Morrison, A., 2013. Hospitality marketing. Routledge.
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Online
 Adamkasi, 2017 [Online] [Assessed through] <https://freepestelanalysis.com/pestel-
analysis-of-hotel-industry/>, [Assessed on 10th April, 2019]
 AVANTI JOGLEKAR, 2019 [Online] [Assessed through]
https://blog.letitrain.com/hospitality-solutions-blog/the-stp-model-for-your-hotel-
segmenting-targeting-and-positioning>, [Assessed on 10th April, 2019]
 CHRISTIAN, 2015 [Online] [Assessed through] <http://www.aalep.eu/swot-analysis-
hotels-and-restaurants-sector>, [Assessed on 10th April, 2019]
 Hope Street Hotel, 2019 [Online] [Assessed through] <
https://www.hopestreethotel.co.uk/?
gclid=CjwKCAjwhbHlBRAMEiwAoDA344XNpU4o0Yy9VZ_KahtDpuhKvmBMq6Ug
4VOnFXGIiIhQx0lErzVGuBoCWoMQAvD_BwE>, [Assessed on 10th April, 2019]
 Marketing mix, 2019 [Online] [Assessed through] < https://setupmyhotel.com/train-my-
hotel-staff/sales-and-marketing/285-marketing-mix.html>, [Assessed on 10th April, 2019]
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