Hospitality Marketing: Rosewood Hotel London Strategy Analysis

This report provides a detailed analysis of the marketing strategies employed by Rosewood Hotel London, a leading hospitality provider in the UK. It begins by discussing core marketing concepts and their application within the hotel, emphasizing customer needs, value, and relationship building. The report assesses the impact of the marketing environment, including internal and external factors such as competitors, suppliers, economic conditions, social trends, and technological advancements. It evaluates the relevance of the consumer market, focusing on consumer behavior, needs, and feedback mechanisms. The rationale for developing different market segments is discussed, highlighting the importance of tailoring services to meet diverse customer needs. Furthermore, the report assesses the importance of the components of the marketing mix (product, price, place, promotion) and analyzes pricing strategies and policies in relation to Rosewood Hotel London. Finally, it evaluates the implementation of the marketing plan for appropriate services, ensuring alignment with market demands and competitive pressures. The report concludes by summarizing the key findings and their implications for Rosewood Hotel London's marketing efforts.

MARKETING IN HOSPITALITY

Table of Contents
INTRODUCTION...........................................................................................................................................2
TASK 1.1.......................................................................................................................................................3
DISCUSS CONCEPTS OF MARKETING FOR ROSEWOOD HOTEL FROM LONDON..........................................3
TASK 1.2.......................................................................................................................................................4
ASSESS IMPACT OF THE MARKETING ENVIRONMENT ON ROSEWOOD HOTEL LONDON........................4
TASK 1.3.......................................................................................................................................................6
EVALUATE THE RELEVANCE OF CONSUMER MARKET IN ROSEWOOD HOTEL LONDON..........................6
TASK 1.4.......................................................................................................................................................7
DISCUSS THE RATIONALE FOR DEVELOPING DIFFERENT MARKET SEGMENTS........................................7
TASK 2.1.......................................................................................................................................................8
ASSESS THE IMPORTANCE OF COMPONENTS OF MARKETING MIX TO THE ROSEWOOD HOTEL
LONDON..................................................................................................................................................8
TASK 2.2.....................................................................................................................................................10
ANALYSE PRICING STRATEGIES AND POLICIES IN RELATION TO ROSEWOOD HOTEL LONDON.............10
TASK 4.4.....................................................................................................................................................11
EVALUATE THE IMPLEMENTATION OF THE MARKETING PLAN FOR APPROPRIATE SERVICES OF
ROSEWOOD HOTEL LONDON................................................................................................................11

CONCLUSION.........................................................................................................................................12
REFERENCES..........................................................................................................................................13

INTRODUCTION
Marketing is the process of promoting a business in such a way that it leads to gain company’s
product or service out to consumers. In today's industries, every hotel and resort needs an
effective marketing to promote their business. Hospitality Marketing is marketing efforts which
are directed towards generating revenue for the industry. It involves the segment of hospitality
industry such as hotels, restaurants, amusement park and resorts. The purpose of this
assignment is to understand the concept of marketing with the impact of marketing
environment. This report will also cover the components of the marketing mix and also assess
the impact of marketing environment. These aspects will be understood via UK based leading
hospitality industry Rosewood Hotel in London. Rosewood is providing best hospitality services
in the UK.

TASK 1.1
DISCUSS CONCEPTS OF MARKETING FOR ROSEWOOD HOTEL FROM
LONDON
The concept of marketing is to examine the needs of a customer and then make decisions
accordingly to satisfy those needs better than other competitive industries. The job of
marketing concept is to achieve the organizational goal through knowing the needs and wants
of target markets and delivers the suitable value to the customer towards the selected target
market (Tomczak, et al. 2018).
Figure 1: Core marketing concept
[Source: Chowdhury, 2014]
Markets: Rosewood Hotel London considers marketing aspect in such a way that marketing
function integrated and company's policies are built.
Products and services: As per marketing concept they also maintain the relationship with
customers and satisfying them for products and services.
Exchange, transactions and relationships: Rosewood Hotel London is building appropriate
relations with customer's feedback and responses towards the product and services.

Needs wants and demands: They satisfying the customer’s needs central to every activity in a
business organization. The Rosewood hotel London researches a lot to meet the need and
expectation of the customers.
Value, satisfaction and quality: It means that hotel provides luxurious services which help in
minimizing the running costs of the hotel with low employment cost which gives the best
quality and satisfaction to customers (Malhotra, et al. 2014).

TASK 1.2
ASSESS IMPACT OF THE MARKETING ENVIRONMENT ON ROSEWOOD
HOTEL LONDON
While developing a company and achieving goal marketing environment must take into
consideration (Dawson and J., 2014). To get the better idea of the marketing environment
Rosewood Hotel London considers major areas of marketing environment as follows:
Figure 2: Nature and Components of Marketing Environment
[Source: Fredrickson, 2018]
 Internal Environment: It involves all the micro factors of organization which affect its
marketing operations. These components can be grouped as:

 Competitors: With little change in basic strategy of competitors in the market, it
affects the industry’s performance as well.
 Marketing Intermediaries: They work as a link between hotel industry and
customers and with the change in the behaviour of intermediaries it can also
change the position of the hotel industry in the market. The travel agencies,
tour operators are considering as marketing intermediaries
 Suppliers: As the changes in supply cost, creditworthiness, warranties of local
suppliers or vendors will also affect the performance of hotel industry.
 Public: It includes groups, media local people, with better relations with
competitors and suppliers public also influence the industry (Fraj, et al. 2015).
 External Environment: It consists of those factors which are external to the business
and on which marketer has very low control. External factors can be subcategorized as :
 The political and regulatory environment: As changes in government
organization enhances the tax rates which affect the performance of Rosewood
hotel. But freedom of the press of UK government also helps in serving the best
quality by the hospitality industry.
 Economic Factors: Economic factors involve an increase in employment
opportunities and capital investment (Jones, et al. 2016). Rosewood Hotel
London has a multiplier effect in generating value in the supply chain, and the
wider UK economy.
 Social Factors: This factor is made of lifestyle, values, culture and beliefs of the
people. The population of the old generation in the UK is increasing which cause
in below average usage of budget hotels.
 Technological Factors: This factor involves the use of an application that allows a
user to locate the best five-star hotels to book their accommodation or check in
by internet (Neuhofer, et al. 2015). Rosewood hotel has the positive impact on
technological factors as it gives all information which is required by customers
through online portals.

 Competition Factors: This means to keep an eye on the market of competing
brands and the maker of substitute products. Rosewood Hotel London can easily
be stable in the market due to offering the best services than the competitors in
the UK.
 Organizational Factors: This factor is related to elements within the industry
which increase the capability and skills of individuals in an organization.
Rosewood Hotel London provides a high quality of service with promotional
activity such as innovative and engaging service with the tradition of British
manor (Yang, et al. 2015).

TASK 1.3
EVALUATE THE RELEVANCE OF CONSUMER MARKET IN ROSEWOOD HOTEL
LONDON
A consumer market is a system in which product and services are purchased according to
consumers own decision (Sung, et al. 2016). Therefore it is needed to deal with consumer
market in case of the hospitality industry. Rosewood hotel London considers the relevance of
consumer market in following ways:
 Rosewood Hotel London recognizes and forecasts the purchase behaviour of a
consumer which helps the industry to understand the reason for the consumption of
their services (Torres, et al. 2015).
 The Hotel become fully aware of every phase of consumption process such as pre-
booking of the hotel, behaviour during availing the services by hotel and review after
consuming services.
 It analyzes the online activity on its website to learn about the need of customers,
revisiting of customers, and feedback from customers through which they can improve
their hotel services.
 They also observe the consumer behaviour while offering services to them (Cantallops,
et al. 2014).
 They poll their clients and visitors and ask questions for customer satisfaction to serve
the best services to customers.
 Rosewood Hotel London also understands the factors such as social, cultural,
psychological which influence the customers by offering the services of a hotel.
 The hotel industry also trained their staff to observe and perform in a better way while
providing services.
 It also offers some specific services to their clients on special occasion, through which
industry get an honest feedback and it also influences consumers positively for future.

TASK 1.4
DISCUSS THE RATIONALE FOR DEVELOPING DIFFERENT MARKET SEGMENTS
Rosewood Hotel London is the best dynamic hotel industry, in order to know the needs of
customers, there must be sub-division of markets (Liu, et al. 2018). For example: To book a
hotel room needs of the family vary from the needs of the businessman. In the case of the
businessman, they need to have phone services, internet connection for the guest. Creating the
suitable position within market segmentation helps the hotel to deliver the benefit of the
product to the customer.
Market segmentation helps Rosewood Hotel London to distribute the services in a market
according to wants and needs of the customers. It involves providing appropriate services that
meet the need of the customers. The hotel believes in making the strategies in the suitable
manner that can cause the customer to respond in a positive way and they also combine the
services and market appeal to fully satisfy the need of the guest in the proper way (Litvin, et al.
2018).
It consists of developing the demographic segmentation by dividing the target market on the
basis of nationality, ethics, region, income which is connected with the wants and needs of the
customers. Rosewood hotel London can also obtain psychographic information which is the
part of market segmentation by which surveys and questions about the interest of the
customers can be requested. The other manner of developing the market segment is by
considering the places while grouping the customers according to state, region and then
operates the unit within the segments (Bowie, et al. 2016).
Development in market segmentation will surely cause newly developed services to meet the
needs of customers in the dynamic world, through feedbacks or other reviewing message
customers can be reached individually.

TASK 2.1
ASSESS THE IMPORTANCE OF COMPONENTS OF MARKETING MIX TO THE
ROSEWOOD HOTEL LONDON
The marketing mix is a merging of factors that influence consumers with marketing efforts and
helps in achieving the overall goal of industry (Khan, et al. 2014). Rosewood Hotel London
ensures marketing mix inflexible enough to consider the future changes in the market. The 4p's
of the marketing mix is as follows which is used by Rosewood hotel London:
Figure 3: Elements of Marketing Mix
[Source: Bhasin, 2017]
 Product: It refers to the combination of goods and services which offers to the target
market. Rosewood hotel London includes the physical attributes offer to guests as well
as other auxiliary services. They focus on top formulation because its succession is

majorly depended upon the product and services that suit the changing needs of the
guests (Dadzie, et al 2017).
 Price: It means the amount of money which is being paid by customers in order to
obtain the product. As hotel industry is affected by seasonality it is important to set the
right price for services to ensure high occupancy rate in the hotel. They use cost-
oriented pricing because it affects the other factors such as quality of the product, the
season of the year, brand name and the value of hotel products and services (Adams, et
al. 2016).
 Place: It usually refers to the location of the industry as well as the distribution of a
channel which is used by them in marketing. Rosewood hotel London is a well-located
hotel and can be easily accessible to guests. Through this factor, they provide easy and
fast services of booking for the hotel and with the continuous development, it has
brought tremendous changes regarding the distribution of hotel products.
 Promotion: When it comes to promotion, Rosewood hotel London chooses the right
channel for encouraging the brand. Through suitable advertisements hotel can be sure
about the services which can be used by the customers (Yang, et al. 2016).

TASK 2.2
ANALYSE PRICING STRATEGIES AND POLICIES IN RELATION TO
ROSEWOOD HOTEL LONDON
In today’s scenario hotel industry needs to have adequate planning for being stable in the
market. Rosewood hotel London prepares unique and appropriate changes according to the
environment because the products cannot be stored. Rosewood hotel London used market-
based segmentation with the element of 4p's of marketing. They complete assessing
competitor's pricing strategy with the aim to provide right price, right guest and right brand.
They also used revenue management systems which detect a deviation in competitive pricing
and market sensitivity, which is helpful in adjusting rates multiple times a day and can optimise
performance and also forecast more accurately (Chen, et al. 2016).
Rosewood hotel London examines the competition and evaluates all elements that affect the
pricing strategy. They determine the profit margin that will be available and also analyse the
change in demand for luxurious services by customers or potential users due to change in price.
The hotel achieves success with correct knowledge of marketing and combines many marketing
factors such as the price, product promotion and distribution. The ultimate goal of the
Rosewood hotel London is focused on the opportunity to serve in the market in such an
appropriate way that it helps in profit making and also becomes easy to stand in the
competitive world (Mohammed, et al. 2015).

TASK 4.4
EVALUATE THE IMPLEMENTATION OF THE MARKETING PLAN FOR
APPROPRIATE SERVICES OF ROSEWOOD HOTEL LONDON
The hospitality industry includes a wide range of services which offers food service and
accommodation and many more. They implement the marketing plan through strategic
planning in following way:
Price strategy: Rosewood hotel London improves competitive positioning through asset
management judicious application of capital in the industry. They follow the cost-based pricing
strategy to cover the costs but make a profit in the process.
Branding: Rosewood hotel London combine branding with service strategy in such a way that
their staff members to interact with customers and look at the services which are offered.
Rosewood hotel London promotes their services based on rates because they serve a variety of
segment to travellers who have different needs and wants. The hotel also uses co-branding as
tie up with branded spa products.
Distribution Channel: The hotel observes the choice of service preferred by customers and also
keep updating other services as well for better performance. They develop a diverse range of
distribution channel as the online and offline mode. In case of online mode booking is done
through the website and social media platforms and in offline mode channel as the partnership
with wholesalers and tour operators, are performed, these channels help the hotel to reach
every individual of the countries.
Capitalization rate: The Rosewood hotel London use capitalization rate to describe the value of
the hotel and it also indicates present value of the assets and stretches the budget to make
guests stay as smooth and enjoyable as possible, whether they are travelling for business or
leisure.

Investment: They make the appropriate budget plan and choose the demographic factor which
has fewer barriers to entry and also encourages new supply in the market which influences
hotel's revenue, cash flow and its value.
Customer acquisition strategy: Rosewood hotel London forecast the demand of the customers
for the effective promotional plan to reach consumers with the right mix of offering the
different channel.
Measure consumer responses: Hotel keeps the balance between volume, growth and
profitability. Through direct reporting channels, in-house reporting, it maximizes revenue,
reduces cost and streamlines the process which is helpful in measuring the responsiveness
across consumers.
Implementation
From the above-discussed points, it states that Rosewood hotel London implement the
marketing plan in such an effective way it starts from pricing strategy, where they frame pricing
method according to the services of industry such as cost-based pricing method which helps
them in promoting their brand in the market. Then they choose appropriate distribution
channel for their services which helps in connecting the hotel with the consumers. After that,
they evaluate the present value of assets through capitalization rate and also find the reasons
for the factors which affect the growth of the industry and then accordingly they frame the
budget plan to perform in a better way for long term. After framing a budget it is important for
the industry to invest in those places or services which helps in enlarging their hotel industry.
And at last when hotel industry invests in some new place or service, they need to acquire more
customers for using their services and according to their responses the hotel forecast the future
obstacles and opportunity in the market.

CONCLUSION
Marketing is the nerve of hospitality industry or any other service industry. Therefore it is
concluded with the assessment that Rosewood hotel London frames their marketing strategy
with developing different market segments. It also discusses the relevance of consumers from
the hotel point of view and offers best services for achieving success in the market. The study
signifies the component and implementation of the marketing mix and implements the
appropriate marketing plan.

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