Situational Analysis and Marketing Strategies for Veriu Broadway Hotel

This report provides a comprehensive situational analysis of the marketing challenges faced by the Veriu Broadway Hotel in Sydney. It delves into the role of situational analysis in marketing planning, examining crucial external factors such as demographics, economic conditions (including rising income, inflation, and recession), competition, sociocultural environment (including baby boomers, Generation X, Y, and Z), political and legal factors, and the impact of technology. The analysis highlights how these factors influence the hotel's marketing strategies and provides recommendations for adaptation and improvement. The report emphasizes the importance of understanding the macro-environment to mitigate risks and capitalize on opportunities, ensuring the hotel's success in a dynamic market. It concludes by reiterating the significance of a well-executed situational analysis for effective marketing planning in the hospitality industry.

Contemporary Hotel
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Role of Situational analysis in Marketing Planning....................................................................1
Demographics.............................................................................................................................1
Economic conditions...................................................................................................................2
Competition.................................................................................................................................2
Society and Culture.....................................................................................................................2
Political and Legal.......................................................................................................................3
Technology..................................................................................................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Situational analysis is a tool which is very commonly used by companies to identify
various important factors and then make decisions related to their marketing plan. In this report
marketing issues faced by Veriu Broadway hotel of Sydney because of improper analysis of
external factor shave been taken into consideration. Situational analysis is basic step of every
marketing planning process and this is stage which is very crucial for strong foundation of
marketing strategies of company. This report will deal with how can Veriu Broadway will
analyse various economic factors present in their external environment(Ivanova, Ivanov and
Magnini, 2016).
MAIN BODY
Role of Situational analysis in Marketing Planning
External environment of business is becoming more complex with changing scenario. It
is becoming more crucial for companies to analyse their environment beforehand so that they are
able to minimize risks and make use of opportunities prevailing in external this macro
environment. In concerned with Veriu Broadway hotel, they re part of hospitality industry and
there are many uncontrollable factors which affect them. Analysis of such factors, is important
for working and also contingency planning(Ivanova, Ivanov and Magnini, 2016). Negative
effects of such problems cannot be controlled but can be mitigated with careful anticipation and
planing.
Demographics
There has been a change in family structure in Australia and there has been increase in
number of women who are also working to support their family. People are preferring home
entertainment there has been complete change in purchasing patterns. Increase in cultural
diversity also increases opportunities and helps in recognizing social & economic response of
obligation, rights and needs of country's diverse population. Veriu Broadway deals in hospitality
sector they must take care of this changing trends among people and then according to that
decide their marketing strategies(Gibbs, MacDonald and MacKay, 2015). There is social
harmony in cultural groups of society and this diversity offers expansion and market diversity to
companies.

Economic conditions
Economic conditions of Australia and Sydney have basically three major factors like
rising income which means disposable income of people is increasing because of Dual income
families this will have a overall positive impact on hotel as people will be willing to spend more
and raise their standard of living, Inflation is also a economic condition which will affect
Broadway hotel in a way that their no matter what will be their cost customers will not pay more.
Marketers of this company must realize this and examine perceived value along with price. Third
economic factor will be Recession, in this situation Marketing strategy has to be to
improvements in existing products and same time planning is needed to launch new ones,
company must focus on expansion of customer services and promotion of product value should
be done. If all these strategies will be adopted by marketer then period of recession will not be
able to affect Veriu Broadway hotel in a negative way.
Competition
Competitive environment is a external factor of company which must be analysed by
marketers they posses no control over this factor, so there are certain facts which must be
considered by Veriu Broadway hotel in analysis of this dimension of macro environment. First is
analysis of Industry its size, evolution stage, characteristics of demand and structure of existing
segments which influence company's ability to survive, perish or prosper(Dursun and Caber,
2016). Another factor is competition which is influenced by certain dimensions of market in
which hotel is operating. Global competition and international competition must be used as a
strategy. In global competition company adopts in providing similar service throughout world
and in international competition modified services have to be provided Veriu Broadway hotel.
Third factor of competitive environment is competitor present in market , to deal with them hotel
will have to plan strategic development and then define how they will be behaving in original
culture & world stage.
Society and Culture
Sociocultural environment is a difficult factor of external environment which needs to be
analysed by marketers as this deals with values, attitudes and lifestyle of people which is very
unpredictable and is a dynamic factor(Cezar and Ögüt, 2016). To make this analysis easy people

have been divided into certain categories and then further strategies are made. Following are
some of classifications :
Baby boomers : They are those born after second world war, before 1960. impact of Baby
boomers in Australia and Sydney is very substantial. They have shifts in their cultural norms,
this has major impact on service industry. As there will be increased need of customization,
immediacy and value.
Generation X: This generation is first of children who are Latchkey. They try to deal with
facts and are comparatively more materialistic. They have high level of education, high
aspirations but certainly very low expectations.
Generation Y: This generation is defined as born to shop, they are quality conscious and
driving educational industry.
Generation Z: This is regarded as silent generation, as this is very difficult to forecast but
then also it has been forecasted that this generation will be optimistic compared to other
categories. This feature can be used by marketers in case they are targeting this generation.
All the above mentioned categories have to be considered by Veriu Broadway hotel when
they are planning their marketing strategies as these categories affect belief and culture of people
and their purchasing habits. They have to decide their target generation and according to it future
actions must be decided.
Political and Legal
Every business is regulated by government of their country, which are made with
consideration of factors such as interests of people of society, innovations in new technology and
consumers. Each aspect of a marketing mix plan has to be in adherence to restrictions and laws
of country(Bruni Cassia and Magno, 2017). In case of Veriu Broadway hotel also, Marketing
department will have to understand these laws and restrictions and in accordance with that only
move ahead in framing of their strategies. As, failure to compliance of such laws may lead to
serious consequences being faced by Hotel. Each aspect of Marketing mix needs to be subjected
to restrictions and laws. In Australia, privacy issues of company are covered under Privacy Act
1998, prices under Price Surveillance Act 1983, interests of consumers are protected under
Consumer Guarantee Act 1993. Recent changes in rate of Tax will lead to raise in gas prices

which may have impact on Tourism and this ultimately will increase cost for companies in
hospitality industry.
Technology
New technology acts as an effective weapon to deal with recession or inflation prevailing
in a country. One of biggest opportunity for marketers is tremendous growth of internet and other
mobile & media related devices
(Bilgihan and Bujisic, 2015). They all help marketers in better communicating with their
prospective buyers, distance, time and cost are no long a barrier for them because of such
advancements of technology. In respect of Veriu Broadway hotel also marketers can use this
growing technology in getting a competitive edge and increasing effectiveness of their strategies
in attracting more customers.
CONCLUSION
This report is based on analysis of factors which are present in macro environment of
business and their effect on company operating in service and hospitality industry. Situational
analysis is a tool being used by companies to monitor and analyse overall impact of macro
environmental factor which have an impact on companies. These are used to forecast threats &
weaknesses which can affect company. Veriu Broadway hotel is one of top picks hotels of
Sydney they have a position in market but they must do a careful analysis of all factors and then
according to that future planning of marketing strategies must be done.

REFERENCES
Books and Journals
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Cezar, A. and Ögüt, H., 2016. Analyzing conversion rates in online hotel booking: The role of
customer reviews, recommendations and rank order in search listings. International
Journal of Contemporary Hospitality Management. 28(2).pp.286-304.
Dursun, A. and Caber, M., 2016. Using data mining techniques for profiling profitable hotel
customers: An application of RFM analysis. Tourism management perspectives .18.
pp.153-160.
Gibbs, C., MacDonald, F. and MacKay, K., 2015. Social media usage in hotel human resources:
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Ivanova, M., Ivanov, S. and Magnini, V.P. eds., 2016. The Routledge handbook of hotel chain
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