Park Plaza County Hall London - Essay Example

Park Plaza County Hall London Introduction Hotel business in the recent past has become one of the most resilient indriving the economy of United Kingdom. In the last few years, the hotel market in UK has been seen to respond well to the prevailing conditions of the economy as well as to the changing nature of behavior of the consumers. Despite the fall in the disposable income in the UK, hotels continue to adequately do well for the customer demands remain the same. To keep this sector growing the different hotels in UK have adopted cost-conscious mechanisms as well as becoming more attentive to services offered to the customers. This has resulted to a rise in the level of customer satisfaction. Different scholars of the world have described the state of the UK hospitality market as ‘fast-changing’. This means that the particular hotels in this industry have to race to keep up with the pace. The fast changing nature of this industry has further been attributed to the technological advancements of the world. The different hotels have to therefore direct more of their resources and time to the emerging technology-based techniques and communication platforms such as social media to remain appealing to the evolving demographics of the world. Newer market segments continues to emerge in the hospitality industry in UK what has perpetrated the changes experienced in the market where most customers today are going for fast, better and more personalized services. London continues to be viewed as the ‘growth engine’ of the hotel sector in UK following the high number of hotel businesses located in the city. Hotel business in London is appealing following the fact that London it is a major tourist destination. Throughout the year, London experiences influx of visitors from all parts of the world. This has resulted in a boom in the hotel business in the city. The main objective of this market report is to evaluate the market operations of Park Plaza County Hall London hotel through use of specific market analysis tools; PESTEL analysis and market mix-7Ps and how the market operations impact the hotel business of Park Plaza County Hall London hotel. Executive Summary This market report was commissioned to specifically examine the role and contributions of marketing to the success of a business by looking into the operations of Park Plaza County Hall London hotel in the UK hospitality industry. It further offers specific recommendations that can adequately be integrated by the business to enhance its performance within this industry. Market analysis According to Baines and Page (2010, p. 15), market analysis is the critical evaluation of the special dynamics of a market as well as the evaluation of what makes a market more attractive within an industry. Through use of market analysis techniques, the researchers are able to develop or establish the strength, threats, opportunities and even weaknesses of a business in the market. Further, the researcher are able to establish the size of the market in which the company operates in, the trends of the market, profitability of the market as well as the company’s growth rate (Brassington and Pettitt, 2007, p. 67-75). According to Aaaker and McLoughlin (2010, p. 22), a market is normally analyzed from the following dimensions; market profitability, market trends, market growth rate, cost structure of the company, key success factors, key performance index, market size and distribution channels. Through market analysis, it is possible to identify some if not all factors that have a direct impact on the business of a company (Dibb et.al, 2012, p. 13). This is very important for a company and not only result in growth and expansion of the company but also may result in the company becoming a leader in the industry (Bruhn, 2009, p. 34). Through a market analysis, a company further assesses its space in the market. This helps the company stay focused in what it does and particularly its goals, mission and vision (Houlden, 1996, p. 24). A company is able to also establish whether it has experienced growth in its operations and further assess the fast growing segments of the market where it can capitalize on to achieve a competitive edge in the market. A comprehensive market analysis is achieved through the use of different market analysis tools such as PESTEL, SWOT analysis and the Porter’s Five Model (Armstrong, 2012, p. 30). Company’s Overview Owned by the Park Plaza Hotel Limited who is a major franchisor and a major operator in the whole of Europe, United States, Middle East and even Africa, Park Plaza County Hall London is one of the most spectacular hotels in London and the whole of England. It is situated at the heart of the city-London. This hotel has been perceived as a major destination to most first time visitors in London and especially tourists (Scurlock, 2008, p. 3). Park Plaza County Hall London hotel is not just an ordinary hotel but a 4-star hotel with two major restaurants as integral parts of the hotel. Previously, the hotel has been ranked number 124 out of 1050 in England and its services rated to a 4.5 out of the 5. It is significantly a modern hotel and offers modernized services. In the year 2011, Park Plaza County Hall London was named ‘Best Family Friendly Hotel’ and has won the Hotel Excellence Award in the years 2011and 2014. Environmental Scanning-PESTEL Analysis PESTEL analysis encompasses political, economic, social, technological, environmental and legal factors (Dibb et. al, 2012, p. 41). Each of these factors has quite a significant influence on the operations of a company in an industry. Therefore, the company has to keep on analyzing these factors to stay relevant in the market and industry. Park Plaza County Hall London hotel operates in a quite competitive industry. Political factors As a result of the fact that Park Plaza County Hall London is situated in London which is the capital of England, it is significantly affected by the political climate of England and the whole of UK. Such factors include the acts of legislations; tax and labor law and the political stability. The UK government has kept on amending the laws in relation to trade in UK as a way of promoting fairer competing grounds and to ensure that the different companies operating in UK are legal and do so in dignified manner. Amongst all other laws, the operations of Park Plaza County Hall London hotel are directly affected by the UK labor laws as well as the tax laws. According to the UK labor laws, workers of any kind have a right to a minimum wage salary of 6.50 dollars and the employees must be of a substantial age; not less than 21 years old. Park Plaza County Hall London has ensured a significant remuneration for its employees. It is a policy of the Park Plaza Hotel Limited to only hire qualified employees who have undergone thorough training in reputable hospitality institution of the world. They must also be over 21 years old. On the other hand, the UK tax laws require that the companies operating in UK remits a tax to the government of UK. As far as the issue of tax goes, Park Plaza County Hall London hotel does remit its tax returns to the government of UK annually. Economical factors The economic factors are always of a major concern to a company since they have a direct impact on the operations of the company. Some of the economic factors that impact the hospitality industry include the tax rates, economic recession, inflation and deflation, Gross domestic Product (GDP) per capita, disposable income and household income. Such factors have a direct impact on the business of Park Plaza County Hall London hotel; costs in relation to purchase of raw materials, profits realized at the end of every year as well as the prices to be tagged on the respective food products and services rendered. Even with inflation of the price of goods and services in UK, Park Plaza County Hall London has maintained stable prices for the hospitality services rendered. Further, the stability of the prices in this hotel has been influenced by the stability of the tax rate system in the UK and the continued dominance of the UK economy in the world Economy. In the year 2014, the UK economy grew by 3.2 percent making it the fastest growing amongst the European nations. Social Factors The world today faces a variety of social changes that have greatly been influenced by the use of social media in communication. The social factors are perceived to have an impact on the buying behavior of the customers. Therefore, businesses have to stay familiar with the different social factors. In regard to hotel industry in UK, social factors that influence the performance of Park Plaza County Hall London include the social standards, interests and hobbies as well as the community attitude. The social standards are perceived to be very closely related to the buying attitude of the customer since they are the norms and values held by the community where business markets its products and services (Baines and Page, 2010, p. 25). Social factors such as age, religion, gender and culture are perceived to be social standards and do vary with ethnicity, race and even the way of life of the different people of the world. Park Plaza County Hall London has paid a close attention to the issue of social standards and apart from having a significantly friendly and a diversified work force; Park Plaza County Hall London hotel has continued to market itself in the major foreign markets of the world. In the hospitality industry, besides purchasing a product or a service out of necessity, it has been found that customers often purchase the services or the products that they feel they serve their value of entertainment. Park Plaza County Hall London has kept its ‘eyes-open’ on what the clients and customers are running for in the market. The hotel is equipped with modern guest rooms, conference rooms that have access to natural day light during the day, a fitness center, executive lounge and a bar plus a restaurant. Technological factors Technological advancements have brought a lot of significance to the hospitality industry in UK. To the Park Plaza County Hall London, technology has not only been a source of great opportunities ranging from better online advertisement to issues of improved security. Firstly, Park Plaza County Hall London has managed to remain competitive in the hospitality industry by use of social media platforms; Facebook, Twitter, Instagram amongst others in advertising. Secondly, Park Plaza County Hall London has continued to use t internet to deliver service to its clients. Clients book room spaces via the internet just from anywhere in the world. The hotel has also provided free Wi-Fi in all floors of the hotel building. Today, different customers and clients enjoy free internet use when in the hotel. Thirdly, through the use of technology, Park Plaza County Hall London has beefed up its security protocols. CCTV cameras have been installed in all floors of the hotel under twenty four hour surveillance. This has seen this hotel continue to receive a big number of visitors since security goes hand in hand with the hospitality business. Also, in the hotel, the electronic form of payment system is applicable. Environmental factors With the continued pressure on companies of the world to focus more on environmental factors and to operate in a manner that benefits the society and embraces value for money, Park Plaza County Hall London has worked towards becoming a green leader in the hospitality industry. It was recently ranked in the silver level in green leadership in the year 2014. Park Plaza County Hall London has also set up adequate greening policies guiding the operations of employees. In this regard, Park Plaza County Hall London strictly performs green procurement. This means that it assesses how its suppliers have adhered to the greening policies of the world before adequately buying from them. Further, Park Plaza County Hall London sells offs it plastic bottles to the local dealers who in turn recycle them for use. Legal/legislative factors In all parts of the world, the law requires that a company or a business operates within the legal statutes in the different nations of the world. Before commencing the operations, the business or the company has to be issued with a legal permit or a certificate of incorporation. Also, the UK laws require a company to have an adequate code of ethics. Being a major player in the UK hospitality industry, Park Plaza County Hall London is legally registered and conducts its duties in adherence to the laws of UK and strictly follows its code of ethics as par the organizational policies. Further, the government of UK through government agencies closely monitors the operations of the UK based hotels and not only ranks but awards the performance of the hotels in respect to what they do and adherence to the government policies and initiatives. Park Plaza County Hall London was ranked at silver level in green leadership in the year 2014. Market mix- 7ps Market mix is a vital business tool that has been used by the different businesses and companies of the world to analyze their strength, weaknesses, opportunities and even threats in terms of the place, product, price, promotion, process, physical evidence and people (Kottler, 2003, p. 74). Place The physical location of a business determines how the business will market itself. In the hospitality industry, hotels are normally situated in places where they are accessible and can easily be spotted by the customers. Park Plaza County Hall London is located near River Thames where one has a beautiful view of London City when in the hotel. Also, within a five-minute walk to the England’s most famous attraction sites; the London eye, House of Parliament, National theatre, Westiminster Abbey, the Big Ben, South Bank Centre and London Aquarium. Further, Park Plaza County Hall London is situated within a walking distance to the London Waterloo station. This provides such an excellent connection to the London’s main airports such as Luton, Gatwick and Heathrow. Its location also makes it possible for the clients and the customers to access the London city shopping districts. Product The package that a business sells to the customers often determines its growth in the market and expansion in terms of the market share. If the product or a service offered is not appealing to the customers then the business is as good as dead. Park Plaza County Hall is known all over the world for its specialization in treatment of the young children like VIPs where it offers them a substantial package of fun, the spacious modern and comfortable rooms with big Plasma TV screens, microwaves, substantial closets and work desks. Inside the rooms, the guests have an access to free Wi-Fi as well as excellent room service 24 hours. The hotel also has a spacious car park and a means through which the disabled can access the hotel building. Further, indoor and outdoor pools are available. In different sections of the hotel building, there are laundry rooms where free self-laundry services are available and also a health club where the guests have access to a steam room, sauna and special treatment such as massage. On the other hand, the hotel offers an Italian Cuisine that has been outspoken for its magnificent taste. Price The special comfort and treatment especially in the hotel business comes hand in hand with the price factor. Normally, the pricing of the various products and services is done according to the market and the nature of service to be rendered. The company therefore assesses what people can or are willing to spend on the different services and products. In terms of price, Park Plaza County Hall hotel offers fair and reasonable prices which are basically based on the averaged rates. Promotion For a business to grow, adequate promotion and advertisement strategies must be in place. Park Plaza County Hall hotel has used internet as one of its major advertisements strategies. Park Plaza County Hall hotel also has a functional website where the hotel has provided detailed information of products and variety of services it offers. Also, the hotel has a Facebook account and a twitter handle. Further the hotel has incorporated other advertisement techniques such as magazines, bill boards and commercial advertisements. Process The ‘process’ element in this regard will stand for the procedures, protocols and the activities of delivering the service to the different guests in Park Plaza County Hall hotel. In Park Plaza County Hall hotel, guests have a 24 hour access to room service orchestrated by very friendly staff members who are bilingual. The guests and clients are also able to place orders or book for the room spaces electronically. This has further ensured that the services are delivered to the client or guest within the shortest time possible and in the most decent manner. Physical evidence The environment in which a service is rendered is rendered has a big influence on the satisfaction of the consumer. Park Plaza County Hall hotel has a magnificent design that has incorporated spacious and modern guest rooms, pools, dining halls, swimming pools, spas, laundry services amongst others. The hotel is fully equipped for both leisure and business. The hotel also has very friendly staff members who deliver high class services to the respective guests and clients. While in the hotel, the guests have access to the electronic systems of payment. There is no need of carrying cash around. People The Park Plaza County Hall hotel’s staff members are able to handle guests and clients from different parts of the world following their ability to speak multiple languages. This workforce comprises of hardworking, talented and skilled individuals who have been working hard towards ensuring best stay of the customers in the hotel. Having been trained from reputable hospitality institutions of the world, these staff members conduct themselves in an ethical and professional manner. The management of the hotel on the other hand is committed towards ensuring that the best service is offered to the customers and works closely with the employees in ensuring that the customer’s needs are adequately met. Conclusion and recommendation So far, the Park Plaza County Hall hotel’s workforce, service specialization, place, promotional and advertising strategies seems to be working for the hotel evident by its continued excellence in England and in the entire UK hospitality industry. The hotel won the certificate of excellence in 2011 and 2014 and was ranked as 126 out of 1050 hotels in London the year 2014. This has made this hotel continue enjoying a substantial share of the UK market and continue being amongst the best of its kind there are in the world. But then, why is Park Plaza County Hall hotel still number 126 out of 1050? Where does the management of the hotel go wrong? From the market analysis, it is evident that Park Plaza County Hall hotel is a high class hotel hence targets high level income earners in the market. Further, the hotel has targeted major business men and women of the world as well as the rich individuals seeking leisure. The hotel also only specializes in the Italian Cuisine. According to Fifield (1994, p. 56), by targeting only a certain group of the market sometimes a company or a business limits its scope and may end up not growing in terms of the market share. Hotel Park Plaza County Hall may be making good profits by targeting the high income earners in the market but may even make more profits if it targets more individuals in the market. By doing this, it does not mean that the company has to revise its current prices on services rendered but may integrate other strategies that may help it expand its scope of the market. In this regard, the hotel should first think of categorizing the services rendered as being first-class, second-class or even lower-class services. This will expand the company’s target of the market and help expand its sales. Further, the hotel should think of considering how to integrate other popular cuisines such as the Mexican cuisine, Spanish cuisine, Brazilian cuisine, African cuisine and even Chinese and Japanese cuisines. Bibliography Aaker, D. A., McLoughlin, D. 2010. Strategic Market Management – Global Perspectives. West Sussex: John Wiley & Sons Ltd. Armstrong G., Kotler P., Harker M. and Brennan R. 2012. Marketing: An Introduction (2nd Edition), Pearson. Baines P., Fill C. and Page K. 2010. Marketing (2nd Edition), Oxford University Press. Brassington F. & Pettitt S. 2007. Essentials of Marketing (2ndEdition) Prentice Hall. Bruhn, M. 2009. Marketing – Grundlagen für Studium und Praxis. Wiesbaden: Gabler. Dibb S.,Simkin L., Pride W. and Ferrell O. 2012. Marketing: Concepts & Strategies (6th Edition), CENAGE Learning. Fifield, P. 1994. Marketing Strategy, Butterworth-Heinemann Ltd., Oxford. Houlden, B. 1996. Understanding Company Strategy (2nd ed.). Oxford: Blackwell Business. Kotler, P. 2003. Marketing Management (11th ed.). Prentice Hall International Editions. Scurlock, Gareth. 2008. Park Plaza County Hall, Waterloo London SEI. The Times. London. Read More