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Haymarket Hotel Marketing Plan - Case Study Example

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The paper "Haymarket Hotel Marketing Plan" is an outstanding example of a marketing case study. The Haymarket Hotel London is among the most strategic and influential hotels in the UK tourism and hospitality industry. In this case, the venture has expanded its market influence and as well as control through a consumer diversification strategy…
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Extract of sample "Haymarket Hotel Marketing Plan"

Haymarket Hotel-Marketing Plan Report Name: Haymarket Hotel-Marketing Plan Report Course: Tutor: Institution: Date: Table of Contents Table of Contents 2 1.0 Introduction 4 2.0 New Target Market 4 2.1 Selection Rationale 5 2.2 Characteristics 6 3.0 Objectives 6 3.1 Increase Market Competitiveness and Sustainability 6 3.2 Increase Customer Satisfaction 7 3.3 Increase Organisational Revenue Gains 7 4.0 Porters Five Forces Model 7 4.1 Buyers bargaining power 7 4.2 Suppliers Bargaining Power 8 4.3 Competition Threat 9 4.4 New Entrants’ threats 9 4.5 Substitution Threat 10 5.0 Strategies of the Marketing Mix 10 5.1 Product 10 5.2 Price 11 5.3 Place 12 5.4 Promotion 13 5.5 People 15 6.0 Evaluation Measures 15 6.1 Benchmarking 16 6.2 Blue Ocean 17 7.0 Growth Strategy 18 8.0 Conclusion 18 References 19 1.0 Introduction The Haymarket Hotel London is among the most strategic and influential hotels in the UK tourism and hospitality industry. In this case, the venture has expanded its market influence and as well as control through a consumer diversification strategy. However, a strategic evaluation of the organisation illustrated that the venture ad additional market opportunities to focus and venture into invariably new markets. In this regard, an evaluation of the organisational operations and strategic positioning in the UK, the organisation can expand through the diversification approach. In this case, this implies that the venture should develop new products in the industry to serve a new consumer segment (Batiz-Lazo and Wood, 2003, p.205). This report develops a strategic marketing plan through which the Haymarket Hotel can develop and grow its operations through expanding onto the corporate organisations consumer segment. In this case, the report offers an evaluation of the consumer segment characteristics as well as the marketing strategy marketing mix elements. Finally, the marketing plan offers a strategic analysis of the approaches through which the proposed marketing plan success and performance rates would be evaluated both in the short and long run periods. In this regard, the report integrates an analysis of the organisational operations and requirements with existing marketing theories and models. 2.0 New Target Market In order to develop a relevant and market specific marketing plan, the report developed an analysis of the target customer segment analysis. In this regard, the analysis evaluated the target market characteristics, its industry growth trend as well as its future trends and development expectations. 2.1 Selection Rationale The corporate customer segment represents the institutional customers. In this regard, unlike the traditional Haymarket Hotel customer segments that were individual members, the new target consumer base targets organisations. In this regard, these will include, but not limited to domestic and multinational organisations. The selection of this consumer segment is based on the understanding of the growing global trends as well as the UK market development. On one hand, the global market operations environment is changing with the increasing technology adoption and globalization. As such, Rangan and Sengul (2009, p.1498) stated that this concept has increased the overall global movements as well as the emergence of multinational organisations and the ease of movements. In this case, an evaluation of the aviation industry registers that over 40% of their passengers are often on business related trips in and out of the EU market. In particular, an evaluation of the UK market and especially London illustrate that it serves as a business hub and gateway into the EU market. In this regard, technology developments, a growing consumer base, and favourable policies have increased business ventures attraction in the UK market. Therefore, the Haymarket Hotel seeks to tap into this market base, whose evaluation illustrates that it is currently at its growth stage. Therefore, the inflow of corporate customers into the UK market is expected to rise in the future, making it a viable consumer target market venture. 2.2 Characteristics In addition, a characteristics evaluation of the target consumer base characteristics indicate that among the most demanded facilities and services include quality accommodation for organisational staff as well as seminar, conference and meeting halls for the respective business and other corporate functions holding. Finally, as part of a CSR program application, such a consumer base is expected to demand for leisure activities such as sporting facilities among others. However, an evaluation of the current situation of the Haymarket Hotel Illustrates that the organisation has a wide variety of the required facilities such as its conference halls and quality accommodation. Moreover, the strategic organisation allocation, at the heart of the London city and its ease of accessibility creates and added advantage with this consumer segment as travel to and from the hotel to business missions would be comfortable and guaranteed for the target consumers. Therefore, this analysis illustrates that a focus on the corporate consumer segment by the hotel is justified and a viable alternative in the long term period. 3.0 Objectives The marketing plan has three key objectives that it intends to deliver to the venture and the consumers in both the short and the long run period 3.1 Increase Market Competitiveness and Sustainability The strategic goal of the marketing plan is to develop a sustainable competitive base for the Haymarket Hotel in the UK hospitality industry. In this regard, the process involves the creation of a new niche market where the hotel would develop a dominance, to reduce the eminent hotels supply saturation in the UK market. In this case, the achievement of this objective will be evaluated through a strategic positioning evaluation of the venture within three years of the plan execution. 3.2 Increase Customer Satisfaction The second strategic objective of the plan is to increase customer satisfaction. In this regard, with the rising global business interactions organisations will seek to acquire services that meet their exceptional needs, distinct from the traditional market. As such, the attainment of this objective will be evaluated and measured through customer reviews and ratings on the supplied services and products significance and accuracy in meeting their needs. 3.3 Increase Organisational Revenue Gains As a profit organisation, the strategic goal of the venture is to develop and adopt marketing strategies that increase the rate of returns. Therefore, the marketing pan execution seeks to increase the venture rate of returns in the long run period. The objective attainment will be evaluated and measured through a cost benefit analysis where the financial costs of executing it will be evaluated against the acquired financial gains. 4.0 Porters Five Forces Model The development of a successful marketing plan is based on the integration between the developed plan and the industry conditions. Therefore, in order to ensure that the marketing plan strategies and approaches are in congruence with the industry systems and standards, the report developed an industry analysis through a porter’s five force evaluation model. 4.1 Buyers bargaining power The buyers bargaining power is low. In this regard, an evaluation of the UK hotel industry illustrates that the industry has numerous individual consumers with low profit margin contributions. As such, the actions of a single consumer, such as leaving the organisation cannot impact on the overall pricing and operational systems. However, this trend is expected to change in the future. In this regard, the rise of consumer rights groups and reference group’s impact is bound to increase the buyers bargaining power in the future. In this case, the corporate consumer base, offers an example of the consolidated new face of the consumer base in the UK hotel industry. Therefore, as Harrison (2003, p.142) stated, the industry stakeholders should develop strategies and approaches through which to establish sustainable competitive edges compared to competitors, as a means of increasing their value chain quality in the future. Therefore, this analysis establishes that focusing on the corporate consumer target group would offer the venture the required competitive edge in the future. 4.2 Suppliers Bargaining Power The suppliers bargaining power in the UK hotel industry is low. In this regard, the suppliers in the industry are especially the labour and the real estate organisations. On one hand, the labour supply implicates on the quality and cost of acquiring labour for the industry. In this case, the high labour base in the industry, as a result of the 2008 global financial crisis unemployment’s increases the available labour quality while reducing on the overall acquisition costs (Great Britain, 2009, P.27). On the other hand, the real estate industry in the UK market, which is essentially highly competitive, offers low switching costs for the industry stakeholders, thus allowing for opportunities for low price negotiations. Therefore, this justifies the proposed entry into the corporate consumer segment, where a low supply base would guarantee high prices and increased profit margins. 4.3 Competition Threat The levels of market competition are high. In this case, the UK hotel industry is saturated with hotels, especially the high end hotels such as the Serena, Hilton among others (Aggett, 2007, p.172). In this regard, the competition for the high end consumers is high and thus organisations should develop a unique selling point, as a differentiation tool. In this regard, organisations venturing into this market and willing to develop a competitive edge in the future should differentiate their strategies. One such approach through which the Haymarket Hotel could differentiate its operations from the stiff industry competition is by venturing into the new corporate consumer segment niche, and thus serves as a leader in serving this market niche. 4.4 New Entrants’ threats The new entrant threat level is low. In this case, this is because of the unique dynamics and market, operational features that characterise the hotel industry as well as other service delivery industries. In this regard, unlike the goods industry where the quality of the final products influences the decision making process, the hotel industry consumer decision making process is influenced by their perception. As such, Kaufmann and Panni (2013, p.329) stated that consumer service delivery rates of satisfaction is highly dependent on the consumers service quality and delivery process perception. Therefore, although different consumers could be offered the same service, their satisfaction would be different based on their diverse perception. Therefore, an evaluation of the hotel industry illustrates that a brand name, recognition and consumer reviews play a major role in influencing new consumer decision making model. Thus, due to the lack of these features by the new entrants, their venture into the market to pose a strategic threat to the Haymarket Hotel London is significantly reduced. In this regard, the existing organisations in the UK hotel industry have already established a market brand image and dully positioned them in the market, and thus new entrants pose no challenge in both the short and long run periods. However, in the long run period the entrants could as well develop a market reputation and goodwill asset base to challenge the Haymarket Hotel and its peers (Smith and Ros, 2010, p.217). Therefore, in order to mitigate this potential challenge, the ventures should develop a strategic approach through which to venture into niche markets, where the new entrants’ entry and success potential would be reduced. Thus, this justifies the proposed entry into the corporate consumer segment. 4.5 Substitution Threat The threat of substitution in the UK hotel industry is high. In this regard, the changing consumer needs, as well as technology developments provide for the provision of alternative services such as camping among others. In this case the informal ad more socially oriented ventures are expected to take over the UK hotel industry in the future (Quek, 2011, p.152). Therefore, in order to counter this expected future change, the venture should focus on the emerging corporate consumer segment and as such provide unique services. 5.0 Strategies of the Marketing Mix 5.1 Product The corporate target consumer market will be supplied with accommodation and meeting and conference services. In this case, the core product in the organisational package will be provision of business conference services, supported by other services such as quality accommodation and transport pick up services form and to the airport as well as nearest bus parks (Ramesh, 2008, p.8). In this regard, through the adoption of this unique approach, the venture will ensure that the supplied products and service are differentiated from those offered by its competitors, which only major in providing conference and seminar halls. In addition, as a means to increase the product value, the organisation will develop alliances with other third party in the business consultancy industry. As such, this partnership will ensure that in the event that the customers hold their events in the partners’ facilities other services such as catering and transportation to and from such meetings could be developed for increased convenience. The proposed development would be a value addition aspect in that it will promote the organisational target consumer base. In this case, the business consultancy partners serve as a key referral basis for their clients and the clients would most likely rely on their recommendation for accommodation and catering service providers, increases chances for the corporate consumer segment penetration, 5.2 Price Price is described as the value and cost at which a consumer acquires a product, whether a good or service in the market. In this case, the development of price equilibrium in the market is based on an evaluation of the product cost of production against the anticipated market profit margins and profitability levels expected (Czinkota, 2007, p.20). The determination and establishment of a right price in the market are beneficial for both the organisation and the consumers. On one hand, for the consumers acquire a value for their money, which is a critical buying decision making evaluation tool promoting long term product sales. On the other hand, a proper pricing strategy allows for organisations expenses cover as well as generate revenue. In the Haymarket Hotel, a right pricing strategy allows the venture to generate profits, in the highly UK hotel industry as well as increasing its consumer base satisfaction and future expansion potential. Due to the challenging nature of the target consumer base acquisition, the venture will apply the penetration pricing strategy. In this case, the start-up market entry prices will be low, but the rates will be sequentially reviewed and increased on an annual basis, based on market penetration rates. Currently, a majority of the organisations is recovering from the 2008 global financial crisis. As such, the organisational spending rates are low and costs are a major purchase decision influencing factor. Therefore, by offering low prices, the hotel will attract a large number of organisations. However, in the future, the organisations will develop a loyalty towards the hotel services, as it grows its brand reputation in the niche market. As such, the organisations, with a quality services guarantee will be willing to increase their expenditure on the hotel services. In turn, this will sequentially increase in the long run period, increasing not only the profit margins, but also the client base for the venture. 5.3 Place The concept of place in marketing outlines the process and approach through which an organisation reaches out to its consumer base. In this case, as a service industry, the venture has only a single alternative that is the direct service delivery approach to its consumers. In this regard, the Haymarket Hotel will deliver the services directly to its clients without the inclusion or involvement of a third party. The adoption of this approach will deliver numerous advantages to the organisational operations and success. On one hand, he process will ensure the development of relationships between the organisation and the consumer base. As Codita (2011, p.91) noted, service delivery quality perception is influenced by the level and extent of relationships developed between the consumer and the service delivery venture. Therefore, by developing close relationships with the corporate target consumer base, the venture will promote and increases chances for satisfaction with its provided services. On the other hand, the approach is crucial under its market entry stage. In this case, a direct involvement provides an added indirect opportunity for developing the brand reputation and recognition in the market. In this regard, this will allow the hotel gain a favourable brand image in the market, allowing for enhanced penetration and an increased consumer market share in the long run period. However, the implementation of the direct service delivery is bound to experience the challenge of increased operational costs. As such, for every direct involvement and service provision to the target consumers, a cost benefit analysis should be developed to ensure that the organisational gains, both financial and non-financial exceed the provision cost and expenses. 5.4 Promotion Promoting as a marketing mix involves the process through which organisations develop a market awareness and understanding with their consumers. In this case, the promotional process involves the avenue by which the organisation creates an understanding of its offered products as a means of creating the industry knowledge base. A promotional process develops an opportunity through which market ventures create a market advantage over others as an alternative unique selling point establishment (Richter, 2012, p.144). The key audience for the Haymarket Hotel is the corporate organisations. Therefore, all the developed promotional materials and contents will be geared towards reaching out and influencing this group. In particular, the promotional practices will target the executive management in such organisations, as they are directly involved in the determination of employee and staff accommodation and trip expenses. In this regard, in order to influence this group, the key promotional message will be under the tag line for value for money where the organisations will acquire quality services at reduced spending costs. This is expected to resonate well with the current global organisations trend and the process of reducing spending on organisational noncore operations. The Haymarket Hotel promotion will apply two strategy promotional tools, namely advertising and CSR programs respectively. On one hand, it will develop mainstream advertisements that will be channelled through the online platform, especially through a liaison with the search engine providers. In this case, the advertisements will serve as pop-up messages for searches related with seminar and conference halls accommodation and catering services in the UK market. Therefore, this will serve to influence the managers’ decision making process through information on the venture provision at the initial information search stages in such events hosting decision making process. In addition, the hotel will apply the CSR program’s sponsorship marketing approach. In this case, it will seek to actively participate in CSR programs hosted and sponsored by the multinational and domestic corporate organisations. As such, involvement in these programs will create interactions between it and the potential consumers providing an opportunity for a brad and rust building, the key ingredients in the development of sustainable market competitiveness in the service and especially the hospitality industry. 5.5 People In order to deliver any product in the market organisations require human resource. As such, the people concept in the marketing mix describes the HR involved in the production and deliver on a product. Based on this understanding, the Haymarket Hotel requires qualified and expert service provider to develop its conference and seminar hall interior designs according to the specific individual client needs, as well as provide accommodation and catering services as expected (Burrow and Bosiljevac, 2009, p.144). In order to acquire and retain such a qualified and experienced workforce, the hotel will use a competitive recruitment process, where its recruitment vacancy announcements will be placed online and on its website to allow for international talents pool probability. In addition, besides the online interviews execution, the venture will adopt a work assignment selection approach. As such, potential candidates for the various vacancies will be selected based on their actual performance on the respective tasks for a one week period, rather than based on their interview presentations. Finally, the hotel will retain its work force through creating a high employee value proposition that includes above the industry financial rewards as well as other non financial rewards including paid up vacations and team building trips for the employees. 6.0 Evaluation Measures In order to ensure and guarantee the success of any strategic plan, including a marketing plan, it is imperative to develop an evaluation mechanism. In this case, an evaluation mechanism serves as the criteria through which an organisational action plan success is measured and evaluated. As such, each of the marketing plan objectives is evaluated and measured against the pre-determined parameters. In this case, in order to ensure that the marketing mix elements application and strategies used are successful, the marketing plan develops a framework based on which the different elements of success would be evaluated. However, due to the realization that different success elements such as the financial and non-financial as well as the short term and long term benefits required different measures, the report applied different evaluation measures to cater for such variances. 6.1 Benchmarking One of the strategic evaluation measures applied in the marketing plan success evaluation is the benchmarking strategy. Bogetoft (2012, p.17) described the benchmarking strategy as the process through which an organisation evaluates and compares its performance with its peers and the best performers in an industry. In this regard, a comparison with the best performers in the industry enables an organisational establish its weaknesses, a value used to develop alternative corrective strategies for future improvements. However, the strategy application has a limitation in the nature and extent to which organisations, although serving in the same industry could be similar. As such, the variances in the environmental conditions between the industries makes such an inter industry strategies and performance evaluation exclusive. For the Haymarket Hotel, it will apply the benchmarking approach to evaluate its target customer’s satisfaction rates. As indicated in the objective analysis, a key deliverable value is increasing the target customers’ satisfaction. Therefore, in order to evaluate the extent to which the hotel exceeds its peers in satisfying its customers, a benchmarking approach will be applied. In this case, customers’ reviews and survey by external parties will be adopted. If the analysis establishes that the organisational customer satisfaction rates exceed those of its competitors, the proposed marketing plan strategies and approaches will be retained. On the other hand, if the satisfaction rates are low, an evaluation of the causes, based on the consumer reviews will be conducted and subsequently relevant, correct strategies and decisions executed to increase its strategic satisfaction position in the future. 6.2 Blue Ocean An alternative evaluation strategy for application is the blue ocean strategy. Kim and Mauborgne (2015, p.22) described the strategy as the process through which an organization evaluates its strategic performance based on pre-determined internal goals. Under this evaluation process, each organisational strategic plan develops its annual target goals and a framework through which to achieve them. As such, at the end of each strategic year, analysis and comparison are developed between the actual performance and the forecasted targets. In its execution, the evaluation strategy seeks to mitigate the demerits of the benchmarking strategy by ensuring that organisational functions apply a continuous improvement process, rather than compare with others in the industry, especially when the function is the market and industry leader, and none exists to compare with. For the Haymarket Hotel plan, the valuation tool will be applied in measuring the financial gains as listed under the objectives. In this case, the venture will develop annual financial targets listing the optimum costs of production, the quantity of sales as well as the forecasted profit margins. As such, the annual actual performance and financial gains evaluation against the forecasted values would enable the venture to evaluate areas of weakness in its marketing plan. The process will enhance the development of a SWOT analysis of the system, a strategic base for the development of long term sustainable competitiveness strategies in the execution of the marketing plan. 7.0 Growth Strategy The Ansolf model offers the various growth strategy alternatives that an organisation can adopt in its market targeting process. In this regard, an evaluation of the model with respect to the Haymarket Hotel illustrates that the most ideal approach is through the diversification approach (Marlin, Lamont and Geiger, 2004, p.364). This model selection is based on a critical understanding of the growing nature of the targeted corporate consumer segment. As such the segment is bound to change its preference and service quality perception in the long run period. Therefore, in order to ensure a sustainable development, the organisation should ensure that it develops new products on a regular basis as well as focus on emerging new markets to optimize its gains in the UK hotel industry. 8.0 Conclusion In summary, this marketing plan report offers an evaluation of the process through which the Haymarket Hotel will venture into the corporate consumer segment in the future. The analysis argues that a penetrative pricing approach coupled with a direct delivery process and a product diversification base would enhance its success. In addition, the plan recommends the use f CSR functions and search engine optimization, promotional strategies as well as the recruitment of qualified staff as additional success elements. Finally, it concludes that its customer satisfaction, sustainability development and financial gains increment objectives will be evaluated through both the benchmarking and blue-ocean strategies respectively. References Aggett, M. 2007, "What has influenced growth in the UK's boutique hotel sector?", International Journal of Contemporary Hospitality Management, vol. 19, no. 2, pp. 169-177. Batiz-Lazo, B. & Wood, D. 2003, "Strategy, competition and diversification in European and Mexican banking", The International Journal of Bank Marketing, vol. 21, no. 4, pp. 202-216. Bogetoft, P., 2012, Performance benchmarking: Measuring and managing performance, Springer, New York. Burrow, J., & Bosiljevac, J., 2009, Marketing, South-Western Cengage Learning, Mason, OH. Codita, R., 2011, Contingency factors of marketing-mix standardization: German consumer goods companies in Central and Eastern Europe, Gabler, Wiesbaden. Czinkota, M. R., 2007, International marketing, Thompson, United States. Great Britain, 2009, Economic and fiscal strategy report and financial statement and Budget report: April 2009, Stationery Office, London. Harrison, J.S. 2003, "Strategic analysis for the hospitality industry", Cornell Hotel and Restaurant Administration Quarterly, vol. 44, no. 2, pp. 139-152. Kaufmann, H. R., & Panni, M. F. A. K., 2013, Customer-centric marketing strategies: Tools for building organizational performance, Business Science Reference, Hershey, PA. Kim, W. C., & Mauborgne, R., 2015, Blue ocean strategy: How to create uncontested market space and make the competition irrelevant, Harvard Busieness School, Boston, Massachusetts Marlin, D., Lamont, B.T. & Geiger, S.W. 2004, "Diversification Strategy and Top Management Team Fit", Journal of Managerial Issues, vol. 16, no. 3, pp. 361-381. Quek, M. 2011, "Comparative historical analysis of four UK hotel companies, 1979-2004", International Journal of Contemporary Hospitality Management, vol. 23, no. 2, pp. 147-173. Ramesh, K. S., 2008, Conceptual issues in consumer behaviour: The Indian context, Pearson Education, Delhi. Rangan, S. & Sengul, M. 2009, "Information technology and transnational integration: Theory and evidence on the evolution of the modern multinational enterprise", Journal of International Business Studies, vol. 40, no. 9, pp. 1496-1514. Richter, T., 2012, International marketing mix management: Theoretical framework, contingency factors and empirical findings from world-markets, Logos, Berlin. Smith, E. & Ros, B.K. 2010, "What industry wants: employers' preferences for training", Education & Training, vol. 52, no. 3, pp. 214-225. Read More
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