Brookdale Centre Marketing: Aspects of the Strategic Development of Tourism and Hotel Industry - Case Study Example

Brookdale Centre Marketing Case Study By: Professor: Class: University: City: State: Date of submission: Brookdale Centre Marketing Case Study Business Background Brookdale Centre was established by Jonathan Owen in 2001 but opened in 2005. The business aims to provide leisure and entertainment services. It took two years to acquire sufficient from the backers and financial institutions to commence the development process. Owen visualized a future proof leisure village that provides customers needs to guarantee 100% satisfaction through focused employees. The profitable processes of the business involve production and creation of hotel and hospitable environments (Millar & Baloglu, 2011, 307). The operations of Brookdale Centre accounts for selection, training, and supervision of committed and qualified employees required to meet organizational competitive advantage. Currently, the business offers centralized reservation services, advertising, and marketing. In the last few decades, the hospitality and tourism industry has experienced tremendous changes due to increased level of competition, economic deterioration, and continued changes in consumer behavior, tastes, and preferences (Chan, 2010). The aim of this plan is to provide the management of Brookdale Centre with a business plan for various strategic options that will ensure the achievement of the needed competitive advantage. For Brookdale Centre, the appropriate strategic method is marketing through price and promotion. Through analysis of the theoretical aspects of strategic development of tourism and hotel industry, it will be easier to evaluate the working environment for the business, verify the most appropriate strategic option with regard to the planning model of Brookdale Centre. Relevant Strategic Theories Minztberg theory considers strategies as predetermined causes of actions designed for verification of the organizational path. Since strategies have the ability to manage businesses, various strategic theories emerged to guide businesses towards successful direction. In the middle stages of the business, theories can be utilized to recognize the market and environment of the business. Through combination of the product and market options, Ansoff model emerged that identifies business position and growth direction. The market penetration dimension focuses on firm’s operations of the existing products and services in the market while expansion involve business enhancement of the current business abilities especially through modification of the prices and promotion of the existing market boundary (Ackermann & Eden, 2010, 127). Market diversification is the ability of the business extend its products and market capabilities into the required path through introduction of different product or service. Through analysis of Brookdale Centre’s position with regards to such dimensions, it would be easy to determine the current position and capability that offers insights for further expansion of the business. Through the business development, vertical integration could be viewed as a strategic theory guiding the organizations in identifying the possible and available opportunities towards the control and distribution of products and services (Wit & Meyer, 2004, 285). There are three possible integrations available for businesses. In efficient consideration of input acquisition process, organization might experience backward integration through making deals with suppliers or forward integration involving applicable distribution strategies (Grant, 2010, 148). Mintzberg introduced strategies that are predetermined through establishment of the core values and forecasted picture of the future due to rapid changes taking place within business environments. The theory further identified strategic options of coping with dynamism and emergent strategies rather than relying on strategies developed historically. Business entities need to use both deliberate and emergent strategies to determine clearly their opportunities based on their abilities. Research reveal that hospitality and tourism industry need to determine clearly their emerging opportunities considering that the industry runs on the perceptions of the customers. Hence, to determine these opportunities correctly, Brookdale Centre needs to smartly explore the preferences of its customers. Based on the behavioral patterns and industrial verifications, the application of Ansoff and Mintzberg theories need to be placed within the organization. In the practical scenario, Brookdale Centre is a reputable business within the industry that assesses its growth within the market and enjoys reputation through diversification strategies through swimming pool and leisure centre, cinema, crèche, multipurpose sports stadium, entertainment, and travel guiding facilities operating in different industrial sectors (David, 2015, 121). However, the business needs to be cautious on the method used for diversification since there are challenges associated with traditional beliefs and countries. Furthermore, considering that the hospitality industry is widely spread across the geographical areas, it is important to identify separately the opportunities in every market without stiff application of similar strategic models in each market. Development of Business Model for Hospitality and Tourism Business To achieve the required competitive advantage within the business, it is critical to plan and organize the strategic method through application of appropriate strategic means and business development strategies. The major development strategy model is business life cycle theory which identifies development opportunities for the business at each level. There are four major stages involved in the development of business or product: introductory, growth, maturity, and decline. The business needs to follow separate development strategies at every stage for acquisition of profitability towards the operations. With focus on the hospitality industry, within the introductory stage, it is important to focus on expansion of the facilities since attract the customers within the firms depend on the extent of facilities that potential customers get during their leisure time. Moreover, businesses often spent much on resources rather than focusing on profitability in their early stages. The growth stage engages with the profit earning period which requires the business to focus on attracting the customers through aggressive strategies for retaining market penetration successfully. Furthermore, businesses within the industry can differentiate their customer services based on their tastes and preferences. Within the maturity stage, the business needs to focus on sustainability within the market through establishing a good reputation and practicing product, market, and diversification development strategies (Barney, 2014, 106). These are the strategies used by Brookdale Centre to increase its market scope and develop reputation. Business development strategy model has three steps: choice, direction, and selection methods. However, the model requires understanding of the business needs. Within the hospitality, the choice lies within the methods that attract and retain customers over long period. As tourism is increasingly being criticized, most firms focus on corporate social responsibilities. They use Ansoff model in searching for alternative services and market portfolios to extend their operations since the model recognizes business growth and direction. Currently, Brookdale Centre uses direction development through diversification of its business and exercising market development. Some businesses within the industry use expansion method matrix to recognize different methods for expanding the business geographically. This strategy assesses the ability of the business to extend its operations. Under the methods, firms usually use the strategic alliance, acquisitions, and mergers in making agreements with businesses (Wood, 2008, 89). Nonetheless, through development strategy, businesses are able to determine real strategic options for achieving the set objectives. With increased competition within the industry, it is important that firms focus on developing their image through customer groups and protection of industrial needs especially with the changing tastes and preferences of customers (Roberts & Hall, 2001, 152). Since the tastes and preferences of customers change from time to time, business strategies and strategic options need to change accordingly to survive. Recommendation on best strategic Option Since Brookdale Centre aims to be the leading business within tourism and hospitality industry, it can deliberately use the marketing strategy option for the services it renders. The business’ core value focuses on being the pioneer within the industry through innovations and creativity. However, there is need to focus more on rendering the customaries services. Even though these features presented with Brookdale Centre adds value to the quality of services since the customers are loyal to the business, it needs to retain them regardless of the amount charged for the services (Kaulio, 2003, 169). Therefore, the firm should focus on two aspects of marketing: pricing and promotions. Since its establishment, Brookdale has taken various actions including making agreement with various businesses to meet the needs of customers. To develop the market strategy accordingly, the business needs to monitor continuously the changes that occur internally and externally as assist in tracking the emerging issues (Victorino et al., 2005, 562). The hotel and tourism industry continue to command a great proportion in single business commerce. Marketing Mix for Brookdale Centre Marketing within the industry plays important role to assist the management in meeting the needs of the consumers through focusing on their wants and demand. There are different products and services within the industry with numerous customer retention techniques used to increase the effectiveness of services (Richter, 2002, 176). For example, based on the application of Porter’s five forces model, Brookdale Centre can force down the price structure, suppliers limiting business’ profits by charging high, new entrants may reduce business’ market share, and substitutes luring the customers away. Therefore, it is important to develop effective marketing strategy that ensures the achievement of competitive advantage (Elms et al., 2010, 413). The products and services within the industry are very perishable and inseparable in nature; hence, Brookdale Centre needs to give due consideration to the production of unique combination of the marketing mix considered relevant to meet the demand in various times. In formulation of the product blend, the business needs to focus on attention on unique selling point. It needs to develop strategies through controlled test marketing procedure and developing concept and brand itself accordingly. In the marketing mix, place refers to the manner in which the services actually reach the customers which can be understood through effective distribution channel for deliverance of services at the right time for customers’ convenience and availability of services (Mintzberg, Ahlstrand & Lampel, 2009, 242). In UK, many hotels operating within the industry use online services as their sales and distribution channels for delivering high quality services to the customers through proper supply chain management. With the advent of technology, it has played significant role in changing the distribution system within the industry with emergence model, which are internet based. Franchising activities have also emerged that allow online-based reservation networks. Analysis of Pricing Strategies Based on the pricing theory, price can either be cost, demand, and competition. Such price elements assist businesses in setting the financial objective achievable by any business that operates within hotel and tourism industry to realize great share of the market in relation to the rival businesses. For years, Brookdale Centre has used pricing policies of demand and competitive pricing strategies to compete effectively and maintain its customer base (Jamrozy, 2008, 107). If hotels operating around Brookdale Centre were priced high, the Brookdale Centre would apply similar principle. Consequently, if there is an area experiencing decrease in price, then similar concept is applicable by the hotel. Therefore, it needs to make price adjustments accordingly. Within the hotels and tourism industry, the pricing policies are based on the supply and demand situations, which determine increment or decline in prices. For example, the London Olympics that took place in 2012 made hotels in London to slash their prices to fill the rooms on the account of the domestic buyers. With competitive situations, the hotels are forced to employ competitive pricing strategies to be line with the supply and demand norms. Moreover, there is also seasonal fluctuations and increased level of competition, which assist to change and undertake strategic and tactical pricing decisions (Maciocco & Serreli, 2009, 102). In such cases, most of the hotels operating in the UK seem to follow similar ethical norms when pricing the customers, which also play significant in developing customer loyalty. Evaluation of Promotional Mix Promotional mix is integral in the hotel and tourism industry since it involves making the efforts to take the products and services from the business to the customers. Hotels have used several strategies to reach the customers (Masiero,  Yoonjoung Heo & Pan, 2015, 120). As part of the branding element of the promotional mix, Brookdale needs to introduce fusion menu and services, which involve stocking of dishes to enable development of new ideas. The method is effective considering that most hotels used in to revenue in the London Olympics 2012. Another method of promotion for the business is Hotel Inn, which is promoted through different elements of online marketing, and ad campaigns that use internet based channels in reducing stiff level of competition (Blattberg & Allenby, 2010, 184). There is need to evaluate various factors when designing the promotion mix method for the business. The promotional tools that the business needs to employ are advertisement, sales promotion, public relations, and direct marketing. Brookdale Centre gives priority for promotion of its products and services through various promotional methods. Advertisement is a paid form of non-personal communication used in passing an idea about a product or service through selected media channels (Belch & Belch, 2015, 113). The advertisement media used by the business are television, outdoor, press, and internet, and branding. Internet market is the modern method of increasing the scope of the market (Swanson & Everett, 2007, 191). Brookdale Centre focuses on internet marketing to promote its products and services and gather the views of the potential customers. Conclusion It is important that every business follow strategic management theoretical aspect to ensure success in managing their abilities and challenges in a balanced manner. The paper focused on strategic development, which is highly attached to the ethical practices within the modern business environment. However, before application of the strategic theory at early stages of business development, it is important that each business entity plan its strategic development process. The paper applied various theoretical models including Ansoff and Mintzberg theory to ensure sustainable competitive advantage for Brookdale Centre. Based on the strategic analysis of the hotel, it is evident that competition is very stiff which makes it important for the business to focus on enhancing customer loyalty and increase its customer base through various marketing strategies. Through analyzing marketing mix, the appropriate elements to use are price and promotion. References Ackermann, F., & Eden, C. (2010). Strategic options development and analysis. In M. Reynolds & S. Holwell, eds, Systems approaches to managing change A practical guide. Open University: Press/Springer. Barney, J. B. (2014). Gaining and sustaining competitive advantage. Harlow (Gran Bretaña): Pearson Education. Belch, G. E., & Belch, M. A. (2015). Advertising and promotion: An integrated marketing communications perspective. New York, NY: McGraw-Hill. Blattberg, R. C., & Allenby, G. M. (2010). Perspectives on promotion and database marketing: The collected works of Robert C Blattberg. Singapore: World Scientific. Chan, C. S. (2010). The Brookdale Centre case study. Retrieved March 29, 2017, from https://www.academia.edu/24288852/THE_BROOKDALE_CENTRE_A_case_study David, F. R. (2015). Strategic Management: Concepts and Cases: a competitive advantage approach. Boston: Pearson. Elms, H., Brammer, S., Harris, J. D., & Phillips, R. A. (2010). New Directions in Strategic Management and Business Ethics. Business Ethics Quarterly, 20(03), 401-425. Grant, R. M. (2010). Contemporary strategy analysis and cases: Text & cases (7th ed.). Hoboken, NJ: Wiley. Jamrozy, U. (2008). Sustainable tourism development: ingenuity in marketing strategy. Sustainable Tourism III, 4(2), 101-122. Kaulio, M. A. (2003). Initial conditions or process of development? Critical incidents in the early stages of new ventures. R and D Management, 33(2), 165-175. Maciocco, G., & Serreli, S. (2009). Enhancing the city: New perspectives for tourism and leisure. Dordrecht: Springer. Masiero, L., Yoonjoung Heo, C., & Pan, B. (2015). Determining guests’ willingness to pay for hotel room attributes with a discrete choice model. International Journal of Hospitality Management, 49, 117-124. Millar, M., & Baloglu, S. (2011). Hotel Guests' Preferences for Green Guest Room Attributes. Cornell Hospitality Quarterly, 52(3), 302-311. Mintzberg, H., Ahlstrand, B. W., & Lampel, J. (2009). Strategy safari: The complete guide through the wilds of strategic management. Harlow: Financial Times/Prentice Hall. Richter, T. (2002). Marketing mix standardisation in international marketing: An empirical investigation of the degree of marketing programme standardisation in German companies and its internal and external correlates. Frankfurt am Main: Peter Lang. Roberts, L., & Hall, D. R. (2001). Rural tourism and recreation: Principles to practice. Wallingford, Oxon: CABI Pub. Swanson, K. K., & Everett, J. C. (2007). Promotion in the merchandising environment. New York: Fairchild Publications. Victorino, L., Verma, R., Plaschka, G., & Dev, C. (2005). Service innovation and customer choices in the hospitality industry. Managing Service Quality: An International Journal, 15(6), 555-576. Wit, B., & Meyer, R. (2004). Strategy: Process, content, context; an international perspective. Princeton, NJ: Recording for the Blind & Dyslexic. Wood, R. (2008). Into the value zone: Gaining and sustaining competitive advantage. Lanham: University Press of America. Read More