Comprehensive Marketing Strategy for a New Hotel Business

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MARKETING PLAN

Table of Contents
EXECUTIVE SUMMARY...........................................................................................................................2
INTRODUCTION.....................................................................................................................................3
MISSION STATEMENT............................................................................................................................3
VISION STATEMENT...............................................................................................................................3
OBJECTIVES............................................................................................................................................3
ENVIRONMENTAL ANALYSIS..................................................................................................................5
PESTLE ANALYSIS...............................................................................................................................5
SWOT ANALYSIS.................................................................................................................................6
STP (SEGMENTATION, TARGETING AND POSITIONING)....................................................................7
MARKETING MIX (7P’S)......................................................................................................................8
BUDGET FOR COSTING......................................................................................................................9
IMPLEMENTATION AND EVALUATION.............................................................................................10
REFERENCES........................................................................................................................................12
1

EXECUTIVE SUMMARY
A marketing plan for a small hotel is developed. The hotel is located near the Roker beach where the
yearly event of the tall ship is going to be organised in the upcoming month of July. By identifying
the business opportunity for the hotel, a plan for the new small hotel with 8 rooms and leisure
services like pool, Jacuzzi and spa is prepared. The prepared marketing plan incorporates all the
essential elements of a marketing plan such as mission, vision, objectives along with the analysis of
the business environment. The environmental analysis is performed by applying the technique of
PESTLE analysis and SWOT analysis. Moreover, the target market is decided with the application of
STP (segmentation, targeting and positioning) tool. The marketing strategy is also developed by
using the 7P’s of marketing along with the preparation of budget, implementation and evaluation
techniques of a marketing plan. This marketing plan would enable the company in achieving its
marketing mission and visions and gaining growth and competitiveness in the market.
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INTRODUCTION
A marketing plan is one of the most important parts of a business plan. The marketing plan enables
to keep the business on course to achieve the set mission and vision of the company with its
products and service lines, financial status and marketing strategies (Westwood, 2013). Here, in this
assignment, a marketing plan is prepared for a new business. The idea of the new business is a small
hotel with 8 rooms with additional accommodations and services like pool, spa and Jacuzzi. The
hotel will be located near the Roker beach as there is a huge opportunity for earning profit through
hospitality services at the location. Moreover, the global event of the tall ship race will be held in the
month of July. There are chances of gathering of a large number of visitors to enjoy the huge range
of activities and entertainment at the event. Therefore, a new business idea of a small hotel with
specific accommodations would be great to gain the attention of the customers at the event. A
marketing plan has been developed to successfully launch the hotel in a competitive market.
MISSION STATEMENT
The mission of the business is to provide a peaceful and relaxing atmosphere to the customers after
the chaotic day at the event by providing leisure services like Jacuzzi, spa and pool and to provide
outstanding recreational experience to the customers.
VISION STATEMENT
The vision of the business is to provide unforgettable recreational experience to the customers with
the extraordinary accommodation and services to the customers. The proper attention is provided to
every customer at the hotel through focusing on building limited but effective rooms and services to
achieve growth and competitiveness in the long-run.
OBJECTIVES
Some short-term and long-term business objectives are developed to create specific and attainable
goals for the business to achieve the desired objectives and growth in the competitive hospitality
industry (Murphy, 2010). The marketing objectives for the hotel are as follow:
Objectives Specific Measurable Attainable Reliable Time-bounded
To captivate
customers
Masterful
marketing of
Through
influencing
It could be
achieved
It would
support
Within one
month
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attention to the
hotel
the hotel at
the event
areas and
nearest
locations
customers to
check out the
hotel and
acquire its
services by
offering
quality
information
through using
differentiate
marketing
strategies like
social media
marketing,
marketing
through
physical
boards across
the event
area
increasing
the sales and
profitability
of the hotel
To increase
sales of the
hotel
To increase
the sales by
20%
Through
comparing
the monthly
sales and
tracking the
fluctuation in
the sales
Through
developing
and
employing
marketing
strategies and
tactics like
segmentation,
targeting and
market mix
elements
It supports
improving
the
profitability
and creates
new ways for
growth and
development
for the
company
Within 1 year
To gain
competitiveness
in the market
To be
recognised as
one of the top
hotel brands
among small
businesses in
the city
Through
analysing
competition
and demand
of the hotel in
the market.
Through
continuously
focusing on
improving
products and
service quality
and gaining
higher
revenue for
the company
It would
open up new
ways to
attain higher
growth in
the market
Within the
next 3 years
4

ENVIRONMENTAL ANALYSIS
For achieving the desired marketing aims and objectives, the primary thing is to assess the current
business environment and its influence on the organisation. The business environment is divided
into two categories; macro environment and microenvironment. The different factors of the macro
environment that may affect the hotel can be analysed by using the PESTLE analysis tool while the
microenvironment factors can be easily assessed and analysed through SWOT analysis.
PESTLE ANALYSIS
This tool enables to analyse all those external factors that have a direct or indirect impact on the
business decisions and operations;
 Political: to attract international tourist is the key target of the hotel. The local and national
government charges a higher tax on the hotels as the hospitality industry is the key source of
generating revenue for the government (Arif and Hossin, 2016). Government policies such as
immigration policies may affect the business of the hotel.
 Economic: the economic factors involve interest rates, exchange rates, rate of economic
growth and inflation rates. Such economic change leaves a significant impact on the
decisions and behaviour of the hotel. There is higher competition in the small hotel sector in
the UK. However, increasing tourism activities are bringing a positive impact on the industry.
 Social: the social behaviour of residents and cultural values also affects the business. The
people of the UK are highly involved in cultural and sports events (Arif and Hossin, 2016). For
instance, the tall ship race and authentic events create a great opportunity for the
hospitality business.
 Technological: the technological developments are widely present within the hospitality
industry from exploration to transportation, accommodation, and entertainment. The hotels
are using advanced technology to provide enhanced services to the customers and improve
the efficiency of the organisation.
 Environmental: the environmental factors have a direct impact on the hotel business. The
uncertain weather condition and natural calamities could badly affect the business (Arif and
Hossin, 2016). The Sunderland city council make appropriate efforts to prevent the
environment from pollution, build a sustainable environment that may also affect the
business of the hotel.
 Legal: the legal factors such as health and safety laws, data protection laws, equality law and
regulations has a great impact on the functioning of the hotel. Compliance with the law and
regulations of the local and international government is essential in the hospitality industry.
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SWOT ANALYSIS
The internal and external factors to the business environment have a direct impact on the
functioning and decisions of the businesses. The micro-environmental factors affect the internal
strengths and weaknesses of the organisation as well as create the external opportunities and
threats to the company (Phillips and Moutinho, 2014). The SWOT analysis tool can be effectively
used to analyse the microenvironment to open a new hotel;
STRENGTHS WEAKNESSES
 Small hotel enables efficient
management and
 Availability of low-cost labour
 higher demand in the industry
 pool, Jacuzzi, spa and other leisure
services
 excellent location
 The staff members should know
different languages to provide better
experience and services to international
customers
 Lack of experience within the hotel
industry
 Unavailability of skilled and trained staff
OPPORTUNITIES THREATS
 Higher government support to small
businesses
 Higher recognition of UK culture and
sports events in the world
 Hotels and other hospitality business has
a great opportunity as the travelling
trend is increasing day by day (Phillips
and Moutinho, 2014)
 The competition from the existing small
hotels as well as five-star hotels.
 Uncertainty in international travel.
 New government policies and
regulations
The aforementioned PESTLE and SWOT analysis have provided information about the different
factors of the business environment as well as also enabled to assess the impact of these
environmental factors on the business functioning of the hotel.
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STP (SEGMENTATION, TARGETING AND POSITIONING)
After analysing the macro and micro business environment, the next thing is to determine the target
market and customers for the hotel so as to develop an effective marketing strategy to attain the set
marketing objectives (Kokemuller, 2018). The STP model can be effectively applied to analyse the
target market and formulate the positioning strategy for the company.
[Source: Hanlon, 2018]
SEGMENTATION:
The potential market segment for the hotel is decided here. The market for the hotel will be
segmented on the basis of the geographic and psychographic segments. The travellers visiting at the
geographic areas across the Sunderland and near the Roker beach are mainly targeted by the hotel.
The segmentation of the products allows tailoring business approach to meet the needs of the
customer group effectively (Kokemuller, 2018). In present, the customers of the hotel are organised
into two segments. Segment one is made up of visitors especially come to attend tall ship race and
segment two is made up of other local and international customers.
TARGETING:
Currently, the most attractive segment is the segment one that is made up of the international
visitors who have come to attend the tall ship race at Roker Beach. This customer group enable to
gain higher profitability in the upcoming month as well as also support in gaining international fame.
POSITIONING:
It relates to the positioning of the product among the targeted customers (Mindtools, 2019). The
positioning of the hotel could be easily done identifying the unique selling proposition of the hotel.
USP of the hotel is its product offering i.e. limited number of rooms with specialised pool, spa and
Jacuzzi services. This would attract visitors looking for cost-effective recreational services. As
compared to the other competitors, the hotel would provide five-star services within the price range
of small hotels.
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MARKETING MIX (7P’S)
After identifying the target market and potential customers for the hotel, it is important to formulate
an effective strategy for marketing the company’s products and services successfully. The tool of
marketing Mix involving seven key elements of marketing could be effectively applied here to
determine the most effective marketing strategy for the company (Anitsal et al., 2012). The 7P’s of
marketing mix of the hotel are discussed below;
 Product: The key products of any hotel are intangible services that benefit the customers
and inseparable from the business. The core value of the company’s product is to provide
attention to the individual customers with good quality leisure services like pool, Jacuzzi and
spa. The product can be customised as per the customer’s preference but within the
standards quality of the hotel.
 Price: pricing of the product at the hotel is a difficult task. The emphasis will be given on
keeping the prices as low as possible while considering the entire costs such as facilities,
management, and overhead cost (Omles, 2014). The pricing is also decided on a seasonal
basis as during the season of low demand pricing will be low and during the peak season, the
prices may be slightly raised to gain higher revenue.
 Promotion: promotions are a crucial part of the services industry as service offerings can be
easily replicated. Therefore, it is important to differentiate the service offerings in the mind
of the customers. The differentiation of the hotel services is very difficult so it is important to
select the best promotional means for the hotel. The promotion for the hotel could be done
through sponsorship, social media, and mass media like a newspaper.
 Place: the location of the hotel plays an important role in deciding success for the business
as the services cannot be transported and stored (Mucai, et al., 2013). The hotel is located
near the Roker beach, where the tall ship race is organised. This has shown that the hotel is
situated at the best location where a large number of customers easy access to the hotel.
The visitors coming to enjoy the race could easily access to the hotel.
 People: in the hotel industry, employees are the key defining factors that are responsible for
the delivery of services. The services are inseparable from the person. Therefore, it is very
important to provide proper training to the staff to ensure the delivery of quality services to
the customers (Mucai, et al., 2013). The staff members are categorised in two parts; back
office staff and front office staff. The back office staffs are responsible to deliver what is
committed by the front office staff. And the front office staff should not commit what
cannot be delivered.
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 Process: the process of delivering services to customers plays a crucial role in determining
customer satisfaction. And customer satisfaction the ultimate goal of the service sector
organisations such as hotels (Omles, 2014). A service blueprint is prepared that detail about
the delivery process of services to each member of the hotel. The process of service delivery
is concerned with the ways in which the staffs interact with the customer.
[Source: Omles, 2014]
 Physical evidence: in the hotel industry, the customers interact with the service providers
within a service environment. In hotels, services are delivered in the physical environment
developed by the hotels. The physical evidence at the hotel involves the social environment
with tangible cues such as keys, toiletry products and food. Tangible experiences are also
provided to the customer along with the services to deliver higher satisfaction and a great
experience to the customers.
The application of the marketing mix has enabled to determine an effective marketing mix strategy
for the hotel that would support the organisation in attaining its business objectives and vision in the
current competitive business environment.
BUDGET FOR COSTING
The budget and costing are an important part of any marketing plan that facilitates the formulation
of an effective marketing strategy in consideration with the financial capacities of the company
(McDonald and Wilson, 2016). A marketing plan is incomplete without a proper budget or
assessment of the cost required to perform different marketing activities. After determining the
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marketing plan, it is important to align the marketing goals and activities with the budget to achieve
them successfully. The marketing budget is based on marketing mediums and plans (Piercy, 2014).
The detailed budget for the marketing plan is presented below:
MARKETING ACTIVITIES COST PROJECTED COST
Local marketing
Newspaper advertisements £2,000
Hoardings and banners £1500 £3,500
Public relations
Sponsorship £15,000
Press releases £3,000 £18,000
Digital media
Instagram £100
Facebook £100
Twitter £50
Websites £100
Mobile application £150 £500
Total £22,000
IMPLEMENTATION AND EVALUATION
The last but most important stage of accomplishing marketing objectives of the company is to
implement and evaluate the marketing plan to ensure that the marketing strategies are effective
translates into the real results (McDonald and Wilson, 2016). In order to successfully implement a
marketing plan, it is important to develop an implementation plan by incorporating the assessment
of the required activities, human resource, time, location and materials. By assessing all these
essential elements prior to the implementation, a developed marketing plan and strategies can be
successfully implemented in the real scenario.
Once the marketing plan is implemented, the next thing is to evaluate the process and outcomes
regularly to identify any errors to make appropriate adjustments to the plan to reach the goal
successfully. The evaluation can be effectively performed by using the techniques of quality control
and quality assurance along with the self-evaluation.
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REFERENCES
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framework: how do retailers communicate information on their sales receipts. Business
Studies Journal, 4(2), pp.77-90.
 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.
 Hanlon, A., 2018. The segmentation, targeting and positioning model. Online available at
https://www.smartinsights.com/digital-marketing-strategy/customer-segmentation-
targeting/segmentation-targeting-and-positioning/ Last accessed on 3rd June 2019.
 Kokemuller, N., 2018. What Is STP Marketing?. Online available at
https://yourbusiness.azcentral.com/stp-marketing-1769.html Last accessed on 3rd June
2019.
 McDonald, M. and Wilson, H., 2016. Marketing Plans: How to prepare them, how to profit
from them. John Wiley & Sons.
 Mindtools, 2019. Segmentation, Targeting and Positioning (STP) Model; What Is the STP
Process in Marketing?. Online available at https://www.mindtools.com/pages/article/stp-
model.htm Last accessed on 3rd June 2019.
 Mucai, G.P., Mbaeh, E.K. and Noor, A.I., 2013. Extended Marketing Mix and Customer's
Satisfaction in Classified Non-Star Hotels in Meru Municipality Kenya. International Review
of Management and Business Research, 2(3), pp.691-696.
 Murphy, D., 2010. Mission, Vision, Goals, Strategies and Tactics; Planning Your Road to
Success. Online available at https://masterful-marketing.com/mission-vision-goals-
strategies-tactics/ Last accessed on 3rd June 2019.
 Omles, S., 2014. 7 p's of service sector marketing. Online available at
https://www.scribd.com/document/243344346/7-p-s-of-service-sector-marketing Last
accessed on 3rd June 2019.
 Phillips, P. and Moutinho, L., 2014. Critical review of strategic planning research in
hospitality and tourism. Annals of Tourism Research, 48, pp.96-120.
 Piercy, N., 2014. Marketing Budgeting (RLE Marketing): A Political and Organisational Model.
Routledge.
 Westwood, J., 2013. How to write a marketing plan. Kogan Page Publishers.
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