Marketing Plan for Rainbow Hotels: Strategies, Analysis, and Budget

This report offers a comprehensive marketing plan designed for Rainbow Hotels, a five-star establishment located in Rotorua, New Zealand. It begins with an executive summary and a table of contents, followed by an introduction outlining the report's purpose: to analyze the market and develop effective marketing strategies. The report undertakes a detailed situational analysis, employing Porter's Five Forces, PESTLE, and SWOT analyses to evaluate the competitive landscape, political, economic, social, technological, environmental, and legal factors, along with the hotel's internal strengths, weaknesses, opportunities, and threats. It then focuses on market segmentation, target market identification, and market positioning. The report establishes SMART marketing objectives and outlines specific strategies based on the seven Ps of the marketing mix, including place, price, promotion, people, process, physical environment, and product. Finally, the report concludes with budget considerations for the implementation of the proposed sales and marketing plan, providing a framework for the hotel's administration to assess its feasibility and cost-effectiveness.

Running head: MARKETING PLAN FOR RAINBOW HOTELS
MARKETING PLAN FOR RAINBOW HOTELS
Name of the Student
Name of the University
Author Note

1MARKETING PLAN FOR RAINBOW HOTELS
Executive Summary
This report is based on the analysis of a sales and marketing of Rainbow hotel from the point of
view of a Hotel Sales & Marketing Consultant. This is a five star hotel located in Rotorua.
Rotorua is a city located in New Zealand.
The various aspects of the business based on PESTLE Analysis, Porter’s Five Forces Model and
SWOT Analysis are discussed in detail in this report. The marketing mixes with respect to the
seven Ps of marketing are mentioned.
The report is concluded with the budget of the implementation of the sales and marketing plan
provided. This will help the administration to decide about the feasibility and cost-effectiveness
of the plan that is being implemented.

2MARKETING PLAN FOR RAINBOW HOTELS
Table of Contents
Introduction......................................................................................................................................3
Detailed marketing plan for Rainbow Hotels..................................................................................3
Situational analysis of the market using Porter’s Five Forces, PESTLE, SWOT.......................3
Market segmentation, target market and market positioning......................................................6
Objectives of marketing...............................................................................................................7
Strategies of marketing mix.........................................................................................................7
Budget, Implementation and Control........................................................................................10
Conclusion.....................................................................................................................................10
References......................................................................................................................................12

3MARKETING PLAN FOR RAINBOW HOTELS
Introduction
The report is based on the formation of a sales and marketing plan Rainbow Hotel located
in Rotorua. Rotorua is a city located beside the Lake Rotorua, which is situated in area of Bay of
Plenty Region in the North Island of New Zealand. The hotel Rainbow is located in this city and
it is a five star hotel.
The ranking given to the hotels is different in different parts of the world. The star ratings
are given to the hotels based on the amenities, service level, price, location and cleanliness. A
five-star hotel possesses all the facilities that can be provided to the guests. The staffs show
outstanding levels of service and care provided to the customers. The maintenance, cleanliness
and hospitality provided to the guests in a five star hotel are of high standard. The guests have
access to golf courses, gym and fitness centre, pool, and tennis court and luxury spa services
(Amini et al., 2012).
In this analysis, a detailed marketing plan will be designed for Rainbow Hotel in the city
of Rotorua. The purpose of this report is to examine the market in this area with the help of
different strategies. Further, the target market segment will be decided based on which the
marketing strategies of the hotel will be formed. The ultimate objective is to sell the marketing
plan to Rainbow Hotel.
Detailed marketing plan for Rainbow Hotels
Situational analysis of the market using Porter’s Five Forces, PESTLE, SWOT
Porter’s Five Forces model is used to detect the profitability of the business in the
industry and its effectiveness. The five forces of Porter’s model are as follows,

4MARKETING PLAN FOR RAINBOW HOTELS
1) Competitive Rivalry – This step refers to the number of rivals that the
organization has in the market. Rainbow hotel has many competitors in Rotorua.
There are large numbers of five star hotels who provide high quality services to
the guests.
2) Supplier power – The suppliers of the business or in this case Rainbow Hotel have
an impact on its business and profits.
3) Buyer power – The power of the buyers or the guests of the hotel to choose from
between alternatives affects the profits of the hotel.
4) Threats of substitution – The customers or guests of Rainbow hotel have the
facility to choose from options, as there many other hotels available in this area.
5) Threat related to New Entry – The position if an organization can be affected by
the entry of new player in the same industry. Rainbow hotel will face this threat as
Rotorua is booming tourist destination and many new hotels are coming into play
(Eva et al., 2014).
PESTEL analysis is the examination of the area where the business is set up is done
(Gobble, 2012). This is a part of the situational analysis of a business.
POLITICAL
LEGAL
ECONOMIC
ENVIRONMENTAL SOCIAL
TECHNOLOGICAL
PESTEL

5MARKETING PLAN FOR RAINBOW HOTELS
Political factors – The political factors in Rotorua mainly relates to the inequality of
distribution of wealth in this area. The people of this city suffer from unequal distribution of
income.
Economical factors – The economy of New Zealand is competitive and is export-driven
largely. The World Bank as the most convenient place to start a business certifies New Zealand.
This factor will prove to be helpful for the Rainbow hotel business.
Social factors – The social conditions in New Zealand is a mix of the Maori culture and
the Western culture. The city of Rotorua is mainly dominated by the Maori culture. The tourism
industry is facing a boom in this area and this is profitable for the Rainbow hotel business (Zekiri
& Nedelea, 2012).
Technological factors – The city of Rotorua is technologically sound. The citizens of this
area use many new and innovative technologies.
Environmental factors – The natural environment of Rotorua city is beautiful and
attractive. The people in this city believe in providing great hospitality to the tourists. This place
is famous for many hot springs, mud pools and many more attraction that is natural.
Legal factors – The legal condition in New Zealand is independent and protected. The
legal system is ranked higher than countries like UK and Canada. This condition is favorable for
the business setup of Rainbow hotel (Hanssens et al., 2014).
The next step in situational analysis or market overview is the SWOT Analysis of the
business. SWOT refers to the Strengths, Weaknesses, Opportunities and Threats related to the
business (Clardy, 2013). The steps of this analysis are explained as follows,

6MARKETING PLAN FOR RAINBOW HOTELS
Strengths – The strengths of the Rainbow hotels is that the city of Rotorua is a beautiful
place with a lot natural beauty. The citizens of this area believe in the spirit of Manaakitanga or
hospitality. There are many natural hot springs, mud pools and natural geysers. This is an
advantage for the business of Rainbow hotel because tourism is linked with hotels and hospitality
and this will lead to a boom for the business.
Weaknesses – The weakness of this business is the presence of many competitors in the
market. There are many other five star hotels in this city catering to the guests with high levels of
service, hospitality, amenities and facilities.
Opportunities – Rainbow hotel has many opportunities in this area. The hotel can
increase its level of service, provide membership plans for the loyal guests, and design a website
in such a way so that it provides all the relevant information about the hotel and its facilities.
Threats – The threats to Rainbow hotel are the other five star hotels in this city. Some of
these are Peppers on the Point Lake Rotorua, Regal Palms Resort, and Black Swan Lakeside
Boutique Hotel. These hotels offer world-class international services to the guests from all over
the world. Rainbow hotel has to raise their standards to the international level to compete with
these properties (Huang & Sarigöllü, 2014).
The three types analysis done in the above section gives a brief overview of the market of
Rotorua city. The suitability of the area with the business is explained in detail.
Market segmentation, target market and market positioning
Segmentation of market is the process by which the market is divided into segments or
groups based on the requirements of the potential customers. In this case, the target market for
Rainbow hotel is mainly the tourism industry. The city of Rotorua is gifted with natural beauty

7MARKETING PLAN FOR RAINBOW HOTELS
and cultural diversity. This feature helps in attracting tourists from all over the world, who in
turn will increase the business of the hotel (Khan, 2014).
Objectives of marketing
SMART objectives of marketing is a short form for the five characteristics, which are S-
Specific, M- Measurable, A- Achievable, R- Relevant, T- Time sensitive (Yüksel, 2012).
The specific goals of the marketing activity of Rainbow hotel are mainly to increase its
business area. This helps the organization to achieve its goals and increase the profit levels. The
goals of this marketing activity are measurable in terms of profit generation for the hotel. The
goals are achievable for the business because it has the capability to increase its profit percentage
by increasing the levels of service. The objectives of this marketing campaign is relevant with
respect to the area where the business is setup, the reason being that the city is a hub of natural
beauty and attracts a lot of tourists. The objectives of this marketing activity are time sensitive
because the hotel needs to overcome its competition to create its own favorable position in the
market (Talpau, 2014).
Strategies of marketing mix
The strategies of marketing mix are linked to the Ansoff Matrix, which addresses
different perspectives of promotional activities for a product, like,
 Market development for existing products that refers to the process of analysis of
the position of a brand or product in the market and accordingly try to develop the
market position.
 Diversification is a risky step for an existing product, however it is also necessary
for the expansion of business (Day, 2013).

8MARKETING PLAN FOR RAINBOW HOTELS
 Market penetration is a step necessary for a new product that is about to enter the
market. This ensures that the new player can create its unique position in the
market.
 Product development is a necessary step in the placement of the product in the
market. The product has to be developed in such a way that it has its unique
qualities (De Mooij, 2013).
The marketing mix for Rainbow hotel based on the seven Ps of marketing mix (Ciriković,
2014),
 Place –
Observations - The place where the business of Rainbow hotel is setup is
favorable, the reason being that Rotorua is a tourist spot and this will help in
generating business for the hotel.
Recommendation and aim of the strategy - Designing attractive packages for the
tourists will attract a lot of tourists to the hotel (Singh, 2012).
 Price –
Observations - The tariffs of the hotel services should be decided in such a way so
that it is able to compete with the other players in the market. The offerings of the
hotel need to be competitive in nature.
Recommendation and aim of the strategy – The competitive pricing of the tariffs
will attract more guests thereby increasing business
 Promotion –

9MARKETING PLAN FOR RAINBOW HOTELS
Observation - Promotional strategies of the hotel include the creation of an
attractive website for the hotel so that the tourists can get all relevant information
about the hotel, the offers, the packages, the tariffs beforehand.
Recommendation and aim of the strategy - The promotional activities include
digital marketing through social media vehicles.
 People –
Observation - The staff of the hotel should be chosen carefully, so that they fulfill
all the requirements related to the hospitality and excellent services provided to
the guests.
Recommendation and aim of the strategy- The recruitment of suitable staff for the
hotel will ensure high quality of service and this in turn will increase the footfalls
of guests.
 Process –
Observation - This part of the marketing mix is directly linked to the service
industry.
Recommendation and aim of the strategy - The hotel industry is a part of the
services industry. The service consumed by the guests and the process of
consumption is important.
 Physical environment –
Observation - This involves the ambience of the hotel, which is being marketed.
The facilities, amenities and services provided to the guests needs to be up to the
mark and it should be enhanced to the international level (Lilien & Grewal, 2012).

10MARKETING PLAN FOR RAINBOW HOTELS
Recommendations and aim of the strategy – This will ensure that the guests tend
to choose Rainbow hotel when compared to its competitors.
 Product –
Observation - This is the most important and integral part of the marketing mix of
the product. The product in this case is the Rainbow hotel.
Recommendations and aim of the strategy - The quality of services, ambience,
value for money provided to the guests and the loyalty of the guests that is
achieved by the hotel is taken into consideration in this step of the marketing mix
of the hotel. This helps the hotel in increasing its revenues thereby generating
profits (Same & Larimo, 2012).
Budget, Implementation and Control
The sales and marketing plan of the hotel needs a considerable amount of money to be
allocated by the hotel administration. This involves the costs related to promotion of the services,
recruitment of trained staff for the hotel and increasing facilities for the hotel.

11MARKETING PLAN FOR RAINBOW HOTELS
Action Cost Implement Control
DESIGNING
ATTRACTIVE
PACKAGES
5 Million Dollars Marketing and
designing department
Within a year
TARIFFS 100 Dollars Marketing department 6 months
DIGITAL
MARKETING
2 Million Dollars Marketing department Within a month
RECRUITMENT 5 Million Dollars Human resource
manager
4 months
Conclusion
The report can be concluded by saying that the sales and marketing plan designed for
Rainbow hotel is feasible in terms of cost and availability of resources. The overview of the
market is provided. This gives an idea about the area in which the business is being set up. This
analysis helps the management to understand the requirements of the business. This provides the
idea of the areas where improvement is required in the business processes and operations.
The marketing mix of the business is also discussed which relates all the aspects of the
business with respect to the area where the business has its operations. The sales and marketing
plan gives a detailed analysis of the business and the external factors affecting the business. The
target market of the business is discussed in the report. The budget of the sales and marketing
plan is also provided, so that the management is able to decide about the feasibility of the plans
and strategies.

12MARKETING PLAN FOR RAINBOW HOTELS
References
Amini, A., Darani, M., Afshani, M., & Amini, Z. (2012). Effectiveness of marketing strategies
and corporate image on brand equity as a sustainable competitive
advantage. Interdisciplinary Journal of Contemporary Research in Business, 4(2), 192-
205.
Ciriković, E. C. (2014). Marketing mix in Tourism. International Journal of Interdisciplinary
Research SIPARUNTON, 1(4).
Clardy, A. (2013). Strengths vs. Strong Position: Rethinking the Nature of SWOT
Analysis. Modern Management Science & Engineering, 1(1), 100.
Day, G. S. (2013, May). Closing the marketing capabilities gap. American Marketing
Association.
De Mooij, M. (2013). Global marketing and advertising: Understanding cultural paradoxes.
Sage Publications.
Eva, M., Hindle, K., Paul, D., Rollaston, C., & Tudor, D. (2014). Business analysis. BCS.
Gobble, M. M. (2012). Innovation and strategy. Research-Technology Management, 55(3), 63-
67.
Hanssens, D. M., Pauwels, K. H., Srinivasan, S., Vanhuele, M., & Yildirim, G. (2014).
Consumer attitude metrics for guiding marketing mix decisions. Marketing
Science, 33(4), 534-550.

13MARKETING PLAN FOR RAINBOW HOTELS
Huang, R., & Sarigöllü, E. (2014). How brand awareness relates to market outcome, brand
equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-
132). Springer New York.
Khan, M. T. (2014). The concept of'marketing mix'and its elements (a conceptual review
paper). International journal of information, business and management, 6(2), 95.
Lilien, G. L., & Grewal, R. (Eds.). (2012). Handbook on business to business marketing. Edward
Elgar Publishing.
Same, S., & Larimo, J. (2012, May). Marketing theory: Experience marketing and experiential
marketing. In 7th International Scientific Conference “Business and Management (pp.
10-11).
Singh, M. (2012). Marketing mix of 4P’s for competitive advantage. Journal of Business and
Management, 3(6), 40-45.
Talpau, A. (2014). The marketing mix in the online environment. Bulletin of the Transilvania
University of Brasov. Economic Sciences. Series V, 7(2), 53.
Yüksel, İ. (2012). An integrated approach with group decision-making for strategy selection in
SWOT Analysis. International Journal of Academic Research in Business and Social
Sciences, 2(11), 134.
Zekiri, J., & Nedelea, A. (2012). Strategies for achieving competitive advantage. The USV
Annals of Economics and Public Administration, 11(2), 63-73.

14MARKETING PLAN FOR RAINBOW HOTELS