Marketing Strategy and Plan for Royal Hotel: Assessment Report

This report presents a comprehensive marketing strategy and plan for the Royal Hotel, focusing on the renewal of a contract. It begins with an internal and external analysis, including PESTLE and industry analysis, to assess the hotel's current market position and identify opportunities and threats. Competitive analysis using Porter's Five Forces evaluates the competitive landscape, while strategic capability analysis examines the hotel's strengths. A TOWS analysis is employed to develop strategic recommendations. The report highlights key findings, such as the impact of currency fluctuations and technological advancements. The report includes a detailed analysis of the hotel's performance over the past three years, evaluating the implemented strategies and providing justifications for all business recommendations for the hotel to move forward. It uses theoretical models from the course and supports arguments with credible academic resources.

Marketing Strategy and Plan
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Contents
Internal/Environmental Analysis.....................................................................................................2
Industry analysis..........................................................................................................................2
PESTLE analysis.....................................................................................................................2
Competitive analysis....................................................................................................................4
Porter’s five forces...................................................................................................................4
Strategic capability analysis........................................................................................................5
TOWS Analysis...........................................................................................................................6
References........................................................................................................................................9

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Internal/Environmental Analysis
In the Strategic management, the company conduct the internal as well as the external analysis as
this supports the organisation to analyse the opportunities and threats in the market where they
are performing the operations.
Industry analysis
PESTLE analysis
PESTLE analysis is an external environment framework that is used by the company for the
scanning the external influence from different factors (Percy, 2016). The analysis for the Royal
Hotel has been undertaken to evaluate potential strengths and weakness that the company has in
their market.
Development Implication
Political  Australian politics shows the
stability consist taxation
policy, regulations, and rules.
 Government has announces
Tourism 2020 strategy for
enhancing the tourist.
 Change in the price occurs due to
change in tax and regulations.
 The increase in number of tourist leads
to rise in revenue for Royal Hotel
(Wong & Pearce, 2017).
Economic  The decrease in the
depreciation in Australian
dollar
 This decrease in dollar leads to rise in
the number of tourist.
 Annual tourism increase in Australia
business credit leads to improve in

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 Tourism industry grew 3.6%
from the last year.
Royal Hotel.
Social Cultural diversity The multicultural supports to attract more
overseas labour and traveller within
country
Technological Technology up-gradation  The up-gradation of the technology
delivers the delight experience to
customers.
 Royal hotel makes use of the mobile
tab for information, room latest
machine, and many others.
Legal License for the services, Hukka,
Alcohol
 Royal Hotel needs to take the license
for the services that include serving
the Hukka, operating numerous
services and many others.
Environment Responsibility towards the
environment
 The Royal hotel protects the natural
environment by taking the different
initiatives that include solar energy,
protection towards the environment
(Bonilla Priego, Najera & Font, 2011).
Key points

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 The economic currency fluctuation is promoting the tourist to visit the place.
 The rise in technology supports the services provided by Hotel in terms of offering
delight experiences.
 Cultural diversity of the country improves the number of visitors within the country.
Competitive analysis
Porter’s five forces
Porter’s five forces help the business to evaluate and analyse their competitive environment so
that the business can take the right steps (Porter, 2008).
Porter’s five forces Level Comments
Competitive rivalry High There is presence of different hotels within the
industry that offers the services at low prices with add-
on services.
The major competitors of the hotel include Park Hyatt
Sydney, and many others.
Bargaining power of
buyers
High Customers in the Australian market are present within
diverse needs due to which they might easily shift to
the Hotel who offers them better services.
The buying behaviour of the customers makes them to
check the positive and negative reviews that influence
their purchase decision in the market (Porter, 2008).
Bargaining power of
suppliers
Medium The suppliers that are required include the employees.
The high turnover of the employees affects the

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working.
The travel commission and agents also ask for the high
amount.
Threats of New
entrants
Low The threat of new entrants is low because it has been
found that new business requires huge investment.
Further, the establishment of the hotel in competitive
market leads to the risk factor for company (Okumus,
Altinay & Chathoth, 2010).
Threat of substitutes High The emergence of the AirBnb has major impact on
hotel as well as the hospitality industry.
The people like to offer thee AirBnb because they
want to explore the culture of the tourist place.
Key points:
 The rise in the changing preferences of the customers that influence their buying decision
 Presence of Airbnb in the market is strong competitor
 Labour market affects the supply of employees
Strategic capability analysis
The strategic capability analysis shows the ability of the company to compete with the other
customers and competitors present in the market (Ivanova & Ivanov, 2015).
Financial Hotel is able to manage the financial cost and revenue in the effective
manner. Financial analysis is done effectively as there expert is capable

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enough.
Human resource Royal Hotel has experience and skilled human resource that helps them to
interact with customers.
Physical Royal Hotel has heritage physical evidence with the improved
infrastructure (Wong & Pearce, 2017).
General
Organisation
Royal hotel has the capability to manage the operations in the effective
manner that includes the internal as well as external management.
Knowledge and
learning
Training and development activities are conducted that contribute in
enhancing the knowledge and learning of the personnel than their
competitors.
Key points
 Royal hotel has numerous capabilities that help them to compete with their competitors.
 The capabilities and skills of employees help them to form new place in the market.
TOWS Analysis
TOWS analysis is a variant of the business tool that is SWOT analysis. SWOT analysis is
strategic planning that helps in evaluating strengths, weaknesses, opportunities, and threats
(Ivanova & Ivanov, 2015).
Strengths (S) Weakness (W)
 Royal Hotel is just a 2-minute
walk from Randwick shopping
center, 3 min drive from Coogee
 Hotel is available from
1926 due to which it has

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beach, old rooms
 Short distance of 12 min away
from Sydney CBD and Bondi
Beach
 Limited parking
 Improved services including WiFi
and an onsite restaurant with a
courtyard (Booking, 2019)
 Lack of leisure
activities, conference
and meeting rooms
 Lunch and dinner, serving
Australian pub-style meals
 Lack of promotional
activities

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Opportunities (O)
 Rise in attention for
tourist who seek for
beaches
 Increase in the
potential for
corporate business
and demand
 Increase in the online
marketing activities
 Improvement in the
facilities with the help
of technology
SO : Strategies
(S1, S2, S3, O4) More investment in
promoting and advertisement
(S1, S2, O1, O2) Introducing the new
loyalty programs for the tourist who
likely to visit beaches
(S4, O3) Lunch and dinning serving
Australia can be improved with
online marketing strategies
WO: Strategies
(W2, O3) Informing the
customers about the parking
facility available with
customers
(W1, W2, O1, O2) Planning
for the renovation
considering the demand of
customers
(W4, O4) Using the advance
technology for promoting
the products
Threats (T) ST: Strategies WT: Strategies
 Increase in the
competition among
the same sector
 Fluctuations in the
demand of customers
(S1, S2, T1) Refurbishment is
required to form the competitive
advantage
(W1, W4, T1) Enhancing
the rebranding to deal with
competition
(W3, T2) Promotion of the
business activities should be
done to avoid the fluctuation
in demand

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Key points
 The rise in the investment for promotion as it helps the hotel in attracting the tourist.
 Planning for the renovation considering the demand of customers
 Effective communication about the services

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References
Bonilla Priego, M. J., Najera, J. J., & Font, X. (2011). Environmental management decision-
making in certified hotels. Journal of Sustainable Tourism, 19(3), 361-381.
Booking. (2019). Royal Hotel. Retrieved from: https://www.booking.com/hotel/au/royal.html
Ivanova, M., & Ivanov, S. (2015). The nature of hotel chains: An integrative
framework. International Journal of Hospitality & Tourism Administration, 16(2), 122-
142.
Okumus, F., Altinay, L., & Chathoth, P. (2010). Strategic management for hospitality and
tourism. Oxford, UK: Butterworth-Heinmann.
Percy, L. (2016). Strategic advertising management.UK: Oxford University Press.
Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard business
review, 86(1), 25-40.
Porter, M. E. (2008). On competition. Harvard Business Press.
Wong, L. & Pearce, M. (2017). Royal Hotel: Why is it Australia's most common pub name?.
Retrieved from: https://www.abc.net.au/news/2017-10-26/royal-hotels-why-are-so-many-
pubs-named-curious-central-west/9068572