Marketing Management - Case Study Example

Marketing Management Table of Contents Introduction 3 Macro Environment 5 Micro Environment 6 Internal Environment 8 SWOT Analysis 8 8 Porter’s FiveForces Model 10 Ansoff’s Matrix 12 Marketing Mix 13 Conclusion & Recommendation 15 References 16 Introduction A business venture requires several factors in order to become successful in both short and long run. The Jenkins family has conjured up comparatively successful family business with their brand offering of ‘The Manor House Country Club Hotel’ (MHCCH). The hotel and its owners are facing a difficult scenario which requires them to innovate and reinvigorate their marketing plan. The location of their hotel is in Singapore, which as a business destination has numerous benefits which is required to be tapped in order to get the Jenkins family run hotel business back on track. Singapore has over the years been ranked as one of the best locations for undertaking any business venture. The economic environment of Singapore is based on trade. They have been considered as one of world’s strongest trade nations. The other factors like good governance and stability, foreign investment friendly trade policy, high-skilled as well as multilingual workforce along with strong education system, low-crime rates, competent authorities, global connectivity and admirable infrastructure are a number of key components which has enabled Singapore to be recognised as one of the most sought after business destination. The country hosts around 7000 foreign business organisations. The geographical location and transport facility, global connectivity is also significant areas of the business environment. Liberalisation of economy, government-linked companies and integration in among the 10 ASEAN countries as a free trade area (AFTA) are its business environment related key factors in recent years (Dr. Unger, 2008). The hotel industry of Singapore is considered as extremely competitive and also provides consumers a wide assortment of offerings to choose from. Recognition as travel destination especially business travel makes the country’s hotel business environment a very profitable one. Singapore has more than 190 cities and over 4600 flights and this makes it very easy for business travellers. Singapore is located at the crossroad of the world, has grown into a major centre for trade, tourism and communications due to its strategic position. There is a rapid economic development in Singapore since independence and today it has the second highest per capita GDP in Southeast Asia (The Asian Association of convention and visitors bureaus, n.d.). The various carnivals and occasions like Chinese New Year, Christmas holiday and other festivals draw lots of crowd from all over the world (Traverdir, n.d.). Macro Environment The macro environment comprises of the significant external as well as uncontrollable factors which is required to be assessed in decision making. These factors include demographics, economic, social, political, technological and also natural factors. The various other factors include government regulations as well as the competitors, fluctuations in the interest rates. Political Factors: These factors which can play a major role include the political climate of a country which can affect tourists and visitors from visiting any country and can hit the hotel industry. Any government rules and regulation changes can also play a factor. Economic Factors: Economic factors mainly include tax change, rates of interest, exchange rates, inflation and economic growth. Economic factor can impact hotel industry as it is a very cost competitive industry and any downturn in economy can make for serious amount of loss for the owners which needs to be considered. Social Factors: If there is a change in social trends it affects on the willingness and availability of individuals to work. Social forces include changing demography and education. The social strength of Singapore demonstrates educational system which produces a good educated workforce and this attracts foreign direct investment. A good educated employee in hotel industries is able to provide well disciplined services to the customers. Technological Factors: With the help of better technology many big industries have improved their quality and services. Technology can help in providing better service to the consumers which can make a major difference in improving customer loyalty and repeat business for a hotel. Environmental Factors: Basically environmental factor includes changes in climate and weather. The change in temperature affects farming and insurance including tourism. A pleasant climatic condition in Singapore is a positive factor for any hotel business in order to attract visitors. The legal factor also plays a vital role as any hotel business needs to abide by local government rules and regulations. Micro Environment The factors of micro environment include: Customers: The survival of an organisation depends on the basis of fulfilling the needs of the customers. To run the business, it is very important to provide better service and good working skills and if there are no such activities performed, it results in failed business strategy. Hotel industries should always keep a close contact with their customers and provide comforts and facilities according to their needs. Suppliers: The suppliers are the one who should provide high quality service at a reasonable price. They should also have the flexibility to understand the demand of the firm. In hotel industries suppliers should observe the wants of his clients and should have ability to provide full satisfaction. Competitors: Singapore hotel industry is also very competitive. In order to stay competitive this factor has to be recognised and marketing plan has to be prepared accordingly (Learnmarketing, n.d.). Internal Environment The internal environment of the hotel has gone through a change. Therefore the new ambitious owner requires calling up a comprehensive effort from all the employees and also the entire management in order to make a positive change. The organisational culture and the mission of the organisation which has enabled them to attain success have to be kept up for alleviating present difficulty. SWOT Analysis SWOT implies Strengths, Weaknesses, Opportunities and Threats. SWOT analysis is used to identify the strength, weakness, opportunities and threats of the external environment. The SWOT analysis is used for developing many different internal and external factors. It is being used to develop a strategic plan and for solving the problems. By analysing the strengths and weaknesses, the capabilities of an organisation can be examined. Strengths: In Singapore, tourism industry is well established. It has museums, shopping malls and historic buildings containing more than 400 public parks, rainforests and various forests. There are many entertainments activities for kids like zoo, water theme park and a night safari. As it is a part of Asia it is considered to be safe and friendly for the visitors. It is also a key business traveller’s destination. Weaknesses: The economic downturn which has hit the global economy is a relatively weak factor for a business organisation for its consideration. Opportunities: There are more than 7,000 multinational companies in Singapore along with the government support for businesses makes its business environment very dynamic. The hotel can look to make opportunities from the business traveller section as it has seen a lesser number of guests comparatively to the other visitors. Threats: The change in main owner and his ambitious demeanour can create instability. A need is there to recognise the best possible option to move ahead, as there are a significant number of positive attributes present in the existing business. The threat of competitors also exists. Porter’s Five Forces Model (Prof. Lima, 2006). The Singapore hotel industry is highly competitive and the internal rivalry is huge due to the potential tourism progression in Singapore market. Through the government imitative there has been an increase in the revenue generation from the Singapore hotel industry has been promoting tourism programs that has attracted many people from the world towards Singapore and helped in growth of the business. This is an opportunity that the MHCCH should cash in by developing promotional strategy that will help in generating business. Since the government has been an indirect and direct means of help to the industry there is every possible way of new entrance from the domestic or international company developing new hotel to extract the benefits from the Singapore market. For this MHCCH should concentrate on the brand value and image to build loyal consumers and attract more consumers. As the level of threat of entrance will not be minimised it is better to develop the brand value in the international market. In this industry, the price and service plays an important role. The substitute’s threat can come from these two factors. Not only there is huge competition among the big hotels but there is competition from smaller hotels too. MHCCH should focus upon the service quality and enhance the level of service and cuisine. That will act as a value added advantage for the hotel. The concentration level and the greater level of differentiation among suppliers will increase the level of bargaining with the suppliers that will provide benefit to MHCCH. The hotel needs to concentrate in this category to achieve the maximum benefit and that will increase the level of profitability. The bargaining power of the buyer will be there but up to certain extent. Especially in the service segment it will be more. The hotel should provide different category of services and offerings in order to please all types of consumers. The level of satisfaction of consumers will build a strong loyal client base that will be helpful in developing more business in future. Ansoff’s Matrix (Georgetwon University, n.d.). The market for the hotel industry in Singapore is growing. It is in the growth stage and there is more opportunity to grow along the industry and economy. It is the best position for the MHCCH and Singapore Hotel to develop new product and offerings that will help in attracting more consumers. The differential product and service offerings will make the consumers get attracted towards the package and the hotels can earn more margins in current market position. This will not only attract new consumers but also help in targeting the existing market segment people. As the competition is more and if the business gets affected, the pricing policy can be used as a tool to penetrate the existing market segment. This will at least bring in business that will help the hotel to attain break-even points. Marketing Mix Product The product is very important in this hospitality industry. The consumers must be satisfied with the product offerings which will be helpful in building a brand image as well as loyal consumers. The offering should be differentiated from others that will generate the attractiveness. Price Price should be according to the overall industry standards. There is competition and to manage that the MHCCH and Singapore hotel should have different pricing policy, different products and service offering. Depending upon this the price level should be developed. Promotion The hospitality industry requires constructive promotional strategy to develop the brand image. It is not only with the advertisement and personal dealings with brokers and agents, the MHCCH should also promote through diverse programs like cultural, events, fashion shows and many more. Process The process of delivering the products and services is vital as everything depends upon this. As there is direct contact with the consumers, the process needs to be developed in a way that will delight and satisfy the consumer. The quality should be improved by MHCCH which will help in increasing the satisfaction level of consumers. Conclusion & Recommendation The hotel in order to get out of the difficult scenario should concentrate on the development market and move with the flow of the market as it is growing. The hotel needs to develop the products and services according to the target market segment. This will increase the profitability of the firm and help to grow in the future. With the application of strategy and efficient management it is possible to achieve the desired objectives. The techniques that has been discussed needs to be followed for effective results. References Dr. Unger, K., 2008. The Singapore Business Environment. Entersingaporebusiness. [Online] Available at: http://www.entersingaporebusiness.info/ [Accessed November 20, 2010]. STT Georgetwon University, No Date. Growth Opportunities Matrix. Webhelp. [Online] Available at: http://faculty.msb.edu/homak/homahelpsite/webhelp/Growth_Opportunities_Matrix.htm [Accessed November 20, 2010]. STT Learnmarketing, No Date. Micro Environmental Factors. Micro Environment. [Online] Available at: http://www.learnmarketing.net/microenvironment.htm [Accessed November 20, 2010]. STT Oxford University Press, 2007. PESTEL Analysis of the Macro-Environment. Additional. [Online] Available at: http://www.oup.com/uk/orc/bin/9780199296378/01student/additional/page_12.htm [Accessed November 20, 2010]. ST T Prof. Lima, T., 2006. Michael Porter’s “Five Forces” Model. College of Business and Economics. [Online] Available at: http://www.cbe.csueastbay.edu/~alima/courses/3551/murdercleaners/fiveforcesporter.htm [Accessed November 20, 2010]. STT The Asian Association of Convention and Visitors Bureaus, No Date. Singapore Exhibition and Convention Bureau. Members. [Online] Available at: http://www.aacvb.org/members/SECB.html [Accessed November 20, 2010]. STT Traverdir, No Date. Destination Singapore - A Fine City for All the Right Reasons. Articles. [Online] Available at: http://www.traveldir.org/articles/asia/singapore/destination_singapore_a_fine_city_for_all_the_right_reasons.html [Accessed November 20, 2010]. STT Read More