Marketing and Business Plan for Vineyard Hotel, London

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MARKETING AND
BUSINESS FOR THE
SERVICE SECTOR
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Table of Contents
EXECUTIVE SUMMARY............................................................................................................. 3
INTRODUCTION........................................................................................................................4
MISSION AND VISSION.............................................................................................................5
OBJECTIVES.............................................................................................................................. 6
ENVIRONMENTAL ANALYSIS ....................................................................................................7
PESTLE ANALYSIS..................................................................................................................7
SWOT ANALYSIS................................................................................................................... 9
STP (SEGMENTING, TARGETING, AND POSITIONING) .......................................................10
MARKETING MIX (7 P’S OF MARKETING)............................................................................10
BUDGET FOR COSTING........................................................................................................... 12
IMPLEMENTATION................................................................................................................. 13
REFERENCES........................................................................................................................... 14
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EXECUTIVE SUMMARY
This assignment is based on the service sector. As the hospitality sector is among the largest
sector of economies and it is a service sector group so planning for new business idea and
its marketing is to be done in this assignment. To implement the business idea first the
mission, vision and objectives of the hotel are to be determined. These objectives should be
specific, measurable, achievable, and realistic and time bounded. After defining the
objectives hotel’s internal and external environment analysis is to be done where the
internal environment analysis will include the SWOT analysis and STP, the external
environment will include the PESTLE analysis and seven marketing mix of the hotel. Then
the costing and budgetary control measures and strategies will be formulated to know the
capital requirements for achieving the business objectives. These budgets will include the
cost and revenues that are expected to be generated in the future. At last the plan will be
executed and implemented for achieving the targets and missions of the hotel.
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INTRODUCTION
The vineyard hotel will be a sole proprietorship owned hotel which is situated in London.
The valley in which it is situated is surrounded by vineyards. This hotel will be having 8
rooms with each having its respective baths and a Jacuzzi, a spa and a pool open for all
staying in the hotel. There is also a centralized lobby which will include a sitting area and a
reception desk. The management of the hotel will include the hotel staff and the owner. The
windows in each room will offer a very beautiful view of the surrounded vineyards. Each
room is fully furnished and will be offering full facilities and services of the internet and
television. The major reason for opening this hotel is to offer excellent services to the
customers.
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MISSION AND VISSION
Every organization whether it is a hotel or any other kind of business it needs to first define
its vision, mission, and objectives which are possible to execute. For the business idea of the
vineyard, the hotel is to build a small hotel that has 8 rooms with pool, spa, and Jacuzzi.
Mission- The mission of vineyards is to provide excellent hospitality services and the finest
experience to the visitors.
Vision- The vision of vineyards is to create an eight-room hotel which provides all the luxury
services including a spa, pool facility, and a Jacuzzi. The vision also extends to make the
hotel grow positively with the changes in time.
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OBJECTIVES
Like other organizations the vineyard hotel also has its objectives for the upcoming years
will include-
1. To provide excellent customer services to the visitors.
2. To increase the number of visitors every year with the ratio of 5-10% minimum.
3. To develop good financial health of the hotel so that it can sustain itself in the
competition by the year 2020.
The determined objectives of the vineyard hotel are fulfilling all the factors of SMART. The
objective defines are specific and not vague because the ratio to increase customer base
each year is decided. The objectives defined are measurable as the customer base or the
number of visitors is in measurable quantity. The targets defined are achievable and not
extraordinary every year growth of 5% is possible. The goals defined here are the ones that
are practically possible and realistic. The goal defined is time bound as the targets to be
achieved on a yearly basis and to be fulfilled by 2020.
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ENVIRONMENTAL ANALYSIS
PESTLE ANALYSIS
Pestle analysis is a macro-environmental analysis that includes the external factors that
affect the functioning and revenues of the company. The hospitality industry is the UK's fifth
largest industry with a very high contribution in the employment sector and revenues of UK.
Political environment- it includes the political situation of the country since the country is
facing the political instability due to BREXIT and due to the changes in tourism policies the
operations and revenue of vineyard will be affected in a negative sense (Robinson et al.,
2016).
Economical factor- This includes the economic condition of the country its inflation rate, its
interest rates, taxes, etc. is the economy in depression, boom or in the recovery period. The
change in hospitality, luxury or entertainment taxes will be affecting the customer base and
the profitability (Robinson et al., 2016).
Social factor- The culture beliefs, lifestyle, buying behavior affects the perception of the
people. The current trend in the market affects the buying behavior of the consumers. as
there is an increase in the living costs, people prefer to avail low priced products that offer
high value for the money they pay. The trends change with the change in their surroundings,
like the people switching to brands because of their peers, family or friends. Or the quality
standards, the room fares, some people are more price conscious than quality conscious
and vice versa which changes their preferences of choosing a hotel, the security, the
discounting factors, etc. includes the social factor (Robinson et al., 2016).
Technological factor- Technology is the factor that changes rapidly and directly influences
the operations, functioning, revenues of vineyards hotel. The increase in online bookings of
hotels and comparing the prices of several hotels at the same time affects the customer
attraction of the hotel. If the vineyards want to promote its services then it has to use the
medium of digital technology of online applications, social media applications, etc., to gain
customer attraction and to retain the existing customers (Robinson et al., 2016).
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Legal factor- the laws, rules, and regulations of the country regarding the governance and
proper implementation of security and ensuring the rights of the people are included in the
legal factor. The equality law 2010 and the employability laws, consumer protection act,
minimum wage rate in the UK have been increased so all these come under the legal factor
which will affect the functioning of the vineyards (Robinson et al., 2016).
Environmental factor- the environmental factor includes the changes in the environment
which also affects the organizations as the hotel is in outer areas and during the rate of
storms, cyclones have become unpredictable so preparation needs to be done regarding the
same and CSR activities need to be done by vineyard hotel to gain the competitive edge
over the competitors (Robinson et al., 2016).
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SWOT ANALYSIS
STRENGTHS
 The strengths of vineyard hotel
include the world-class facility of spa,
Jacuzzi and pool facility.
 The rooms are very clean and cozy for
a homely experience even in the
outskirts of the city.
 The luxury facilities with high
customer attention and customer
satisfaction as its primary goal are a
strength that differs from its
competitors.
 Provides excellent hospitality services
with high price value to its customers.
 The peace in the environment with an
excellent view of vineyards away from
the city disturbance (Hassanien et al.,
2010).
WEAKNESS
 There are only 8 rooms that can offer
guest services to only 8 clients a day
which is very less to earn a
significantly good amount of the
profits.
 The spa, Jacuzzi and pool facility is
also limited to maximum 15-20 people
at a time which is very less.
 Since the hotel is new the goodwill is
not that strong and also the popularity
of this hotel is also very low, most of
the population doesn’t even know
about this place.
 The customer base is also not that
significant that can attract more
people to the vineyard (Hassanien et
al., 2010).
OPPORTUNITIES
 The opportunities for vineyard can be
extended by increasing its customer
base through online promotions,
offline promotions including social
media promotions, promotions
through various travel and tourism
application, etc.
 The opportunity for expanding its
number of rooms and involving
innovative facilities for example pool,
restaurant, etc. (Hassanien et al.,
2010).
THREAT
 Threats from the competitors that
offer best hotel services with very high
brand value and goodwill.
 Threat from the BREXIT consequences
which may result in a reduction in the
efficiency and revenues of vineyard
hotel (Hassanien et al., 2010).
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STP (SEGMENTING, TARGETING, AND POSITIONING)
Segmenting- segmenting means the division of the population according to the
demographics like gender, age, according to income, tourists, etc. this is done to group
people according to their characteristics. For vineyard segmenting can be done according to
the income of the people, the age group and tourist’s or local people (McCabe, 2010).
Targeting – targeting is just another step after segmenting, this selecting the audience or
group which it wants to target, the vineyard has to target the people that have a medium or
high income and couple that can range in any adult age group and this also includes families,
etc. The target audience will be the people from the universities and weekend gateway
customers (McCabe, 2010).
Positioning- Positioning is a place that the brand has in the eyes of its prospective customers
and how it represents itself in the consumer market, it also means the goodwill that the
company has in the market and at which rank it stands in front of its competitors (McCabe,
2010).
MARKETING MIX (7 Ps OF MARKETING)
The marketing mix of 7 P’s is a strategic tool that is an extension of 4 P’s as the hospitality
industry is the service based industry and it involves intangible products so marketing mix of
7 P's is as follows-
Product – Product offered by vineyard hotel is its hospitality services, services of Spa, Jacuzzi
and swimming pool. In order to attract the prospect of customers proper information about
the core services offered are to be furnished by the hotel (Amofah et al., 2016).
People- people involve the staff at the hotel which is responsible for the proper functioning
of the hotel and to perform all the operations. Proper training, good hospitality services,
and excellent communication skilled staff are required for providing delightful services to
the customers (Amofah et al., 2016).
Place- The place where the hotel is situated and its ambiance are to be represented
perfectly. Place of vineyard hotel is surrounded by various vineyards with a very good
ambiance at the hotel (Amofah et al., 2016).
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Promotion- promotion involves advertising of the best features and services offered by the
hotel vineyard, for example, the facilities of spa, Jacuzzi and swimming pool services. To
increase the visitor's vineyard has to promote its services and offerings on the online
medium as it is easy, most preferred and covers a large audience at the same time (Amofah
et al., 2016).
Price- pricing of the services offered per night per room is to be carefully designed and
should be in the range of the price offered by the competitors. Price should also provide
value for money to the customers. at first in order to penetrate market pricing should be
low (Amofah et al., 2016).
Physical evidence – Physical evidence involve the room as physical evidence, the Jacuzzi,
pool, and the spa. These offerings are tangible auxiliary products that are complementary to
the core services offered by the hotel (Amofah et al., 2016).
Process - The process of performing activities in the background of delivering the core
services is to be highly effective and with efficiency. The activities of the maintenance
department of cleaning the room is involved in the process, the higher the efficiency the
higher the satisfaction (Amofah et al., 2016).
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BUDGET FOR COSTING
Budget planning for starting the hotel is very necessary and the forecasting of future profits
and expenses in advance will provide for the assumptions that will help in collecting funds
for the same, the budget is not always same for every year and so with the changes in
environment new budget is made every time. Budget planning is a very analytical task that
involves high precision and knowledge of prices of cost of every material that is to be used
in the making of a hotel.
The costing mainly will include the labor cost for building up the hotel. The cost of building a
spa, pool, and Jacuzzi requires architectural work and his fees, this building up of hotel will
require the land and this land is to be situated in the vineyards and to practice hospitality
services requires a license, this is also an expenditure (Jones, 2012).
Particulars £
Cost of building 3000
Jacuzzi, Pool 1200
spa 500
labor 500
cash for working capital 300
Miscellaneous expenses 500
Taxes and legal expenses 300
Marketing expenditure, consultancy 400
Total required funding 6700
The budget made for the vineyard expenses in the first year of establishments is very high
and thus from the second year, the costing budget will reduce from the next year. The
expenditure of commencing the business is very high and is only a one-time investment and
need not be repeated in the next year. The revenues the first year will be low afterward and
will include the operations expenses in the higher ration. The second-year cost will include
high salary expenses and miscellaneous expenses.
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