Proposed Marketing Plan for Chacha Inn - Assignment Example

Running Header: Marketing Plan Student’s Name: Lecturer’s Name: Course: Date Submitted: Table of Contents Table of Contents 2 Executive Summary 4 Introduction 5 Chacha Inn Descritpion 5 Situational analysis 6 Dominant economic characteristics 7 Forces of change 7 Hotel’s resources 8 The value chain analysis 8 Capabilities 8 Core competencies 9 Financial condition 9 Current strategies and objectives 10 External environment analysis 10 Political/legal force 10 Economic force 11 Social force 11 Technological forces 11 Environmental force 12 Opportunities/Issue Analysis 12 Strengths 12 Weaknesses 13 Opportunities 13 Threats 13 Objectives 14 Product 14 Price 14 Place 14 Promotion 15 Strategy 15 The Product Life Cycle 15 BCG matrix method 16 Ansoff analysis 17 Brand Positioning Map and Branding Strategy 18 Marketing metrics 20 Conclusion 20 References 21 Executive Summary The key features of this report are the proposed marketing plan for Chacha Inn. Chacha Inn is a garden retreat in Mount Abu, India, that specializes in a variety of hospitality products and services for its varied customers. This report addresses the issues of drop in customer numbers at the hotel due to the global economic downfall. It is important in helping the hotel to incorporate new marketing methods that it can use to ensure that it retains its customers. The methods proposed in the report are based on research. The background of the hotel is also explained in detail so that proper marketing strategies can be understood with the hotel in mind. The hotel is fully described and a product lifecycle analysis is provided. This report also contains a set of marketing strategies that are based on the corporate mission and objectives of the hotel. This report also addresses the needs of the market and why a marketing plan is necessary. The market plan will contain the strategies that are to be used by the hotel to ensure that it meets its corporate objectives and retains its clients even with the economic hardships. A framework of marketing metrics is provided for the strategies and ways of measuring success of the strategies as well as those of controlling outcomes so as to achieve the desired results are given. The report also provides a developed BCG matrix that gives product position in relation to competition. The report also provides an Ansoff analysis. The report also analyses brand-positioning strategy while developing 4 strategies that will increase its market share. Introduction The global economic crisis has seen many industries and sectors of the economy affected. The hospitality sector is one of the industries that have been greatly affected by this global financial crisis. There has been increased demand for excellent marketing and promotion of services or products as a way of attracting and increasing more consumers. Increased marketing also assist a firm to increase its market share and differentiate it from other competitors. Chacha Inn is one of the businesses within hospitality industry which is very competitive. Therefore, there is need to undertake a comprehensive marketing to ensure it does not lose its customers among the upcoming hotels. Hospitality industry is getting a lot of new entrants hence increased competition. This calls for strategic marketing for hotels such as Chacha Inn in order for them to retain their market share. Chacha Inn Descritpion Chacha Inn is one hotel in the hospitality sector that has been affected by the global recession. It is located in Mount-Abu, exactly 750 kilometers away from Delhi and Mumbai. Mount Abu is commonly referred to as the Pearl of Western India. This is because it is surrounded by beautiful and quiet nature. The hotel stands on over 2 acres of land which is characterized by a beautiful green landscape. The scenery has lotus ponds, parks for children and captivating waterfalls. Many clients are really comfortable and enjoy the luxury associated with the hotel. The Chacha museum which has been operating since 1955 provides a great shopping spot for the clients while they are at the hotel. There are beautiful pathways and a green attractive landscape at the garden retreat. The waterfalls at the gardens attract clients for outdoor relaxation experiences for many hours due to the hypnotizing effects. There is a lot of entertainment that comes from the singers, puppet shows and music shows thus ensuring that the clients have the best time and stay at the hotel. The hotel has well constructed parks for children to play and relax. There is also a rocky garden for trekking. There are numerous other services in Chacha Inn which range from 24 hour room service, laundry services, travel assistance, guided trekking and banquet preparation for 500 guests among others. There is exclusive parking at the hotel and numerous indoor games. All major credit cards are accepted as a means of payment. The bar and restaurant at the hotel are also open on a 24 hour basis Situational analysis In 1955, Chacha Inn started its operations as a museum whereby it had a show room as well as a guest shop for guests who visited the museum. Chacha Inn has a mission statement that states that hotel must meet customers’ needs and wants in order to keep royal customers while attracting more others throughout the globe. Chacha Inn has a corporate objective of expanding to new markets locally and internationally. It has short-term objectives that range from having numerous customers each day, and improve the services and profits of the hotel. The hotel offers various products and services that ranges from rocky and green gardens, children parks, and buffet for corporates and individuals, and waterfalls as argued by Chacha Inn (2011). The hotel has a lot of rooms for guests as well as the price tags for various products. This provides guests with happy moments during weddings, business meetings as well as during holidays. It is through those products and services that enables hotel achieve its set goals. As a result of increasing competition within the hospitality industry, the hotel has adjusted its product portfolio so as to reflect the new priorities making it more competitive. Dominant economic characteristics They are several aspects that identify Chacha’s Inn dominant economic characteristics. Such include number of competitors in the market, extent of competitive rivalry, size of market and presence of entry and exit barriers. Other aspects include pace of change in technology influencing decisions by customers, industry profitability, and capacity utilization. Forces of change The impact of porter’s forces has resulted to increased interest and in particular those that have significant effects on business competitive advantage. As illustrated by analysis of Porter’s force analysis, the external factors that influence an industry also influence nature of competition within any business environment. These forces also determine the internal forces that have impacts on the competition. It is therefore important for the business to understand the market forces and dynamics of the industry so as to analyze those forces. These are some of the forces that drive competition within the industry including threat of new entrants into the market and rivalry among those already existing businesses. Some of the other forces that lead to competition within the industry according to porter include threat of new substitutes, buyer’s power, and bargaining power of suppliers. These forces according to Porter determine the intensity of competition within the market. Hotel’s resources Other hotels within the hospitality industry pose a great competition threat to Chacha Inn Hotel. New market entrants from China and Middle East are becoming a major threat. Such include Taj Krishna Hotel in Mumbai and Hotel Leela palace according to WREC (2010). Change of prices of essential commodities such as fuel and food pose a great threat to the hotel as argued by Baker (2002). Chacha Inn has various resources that range from physical to human resources. In terms of human resources, Chacha Inn has over 1,200 employed staff while in terms of physical resources, Chacha Inn has various facilities and buildings that enable it accommodate its guests and provide its services. The value chain analysis According to value chain analysis, they are two main hotel activities that include primary and support activities. At Chacha Inn, value chain analysis is utilized in determining global strategies that can place the business at a better position in terms of competitive advantage. Chacha Inn has to set strategies that outdo other foreign hotels operations. In an effort to recover and maintain a sustainable competitive advantage, Chacha Inn has several issues across the value chain that requires to be put into consideration. Some of them include urbanization, poverty, and growth of population among others. Capabilities Chacha Inn has several capabilities that include institutional and structural factors. These have made the hotel to shape the strategic response in order to maintain itself within the market challenges. This is through ensuring that human resource department of the hotel employs only capable individuals who can meet the current services offer requirements. Only skilled employees with sufficient capabilities to serve customers are employed. However, more skills are impacted on employers through continued learning and training according to Fisher et el (2006). Core competencies It is through some core competencies that hotel has been able to gain market leadership and advantage. Brand management is one such core competence that makes Chacha Inn thrive in the market. Chach Inn brand is a global brand known in many parts of the world. Supply chain management is another core competence that makes Chacha Inn thrives in the competitive market. Chacha Inn has a steady products supply of its food, beverages, as well as booking rooms making its operations efficiency. This greatly attracts the customers due to its effective logistic system which has been outsource as an effort to improve its productivity. Financial condition Some of the financial conditions at Chacha Inn comprises of cash flows, balance shhet, income statement, and statement of retained earnings that makes the Hotel operate its finances efficiently as illustrated by Lustig and Corcaran (2005). Introduction of brands at Chacha Inn has led stabilization of hotel financial hotel. This has made Chacha among the best hotels in Mumbai due to its well respected and famous brands. This has significantly increased its profits making it financially stable. The increased services and products such as wedding events and corporate meetings and seminars have greatly increased revenues hence increased operating income as subsequently profits for the hotel. Current strategies and objectives Chacha Inn has current strategies and objectives that are meant to increase operating efficiency. Some of the strategies include optimizing their capital investment so as to transfer technology efficiently. More marketing is being undertaken rigorously in gain competitive advantage as illustrated by Lustig and Corcaran (2005). More strategies towards maintaining current customers and new ones are also in place. Such include enhancing efficiency in terms of service delivery. The hotel is focusing on forming strategies towards becoming more competitive in comparison to other hotels within the region. Other objectives will be towards profit making processes. External environment analysis Political/legal force Chacha Inn has greatly attracted political interests from the Indian government in an effort to protect it and reducing the reducing economic barriers that are likely to hinder its development and success. This is mainly attributed to the high amount of income that the hotel generates for those countries. Increasing interests by various government to increase and improve hospitality industry in their countries have greatly favored Chacha Inn. Therefore, political pressures have positively had an influence on the hotel. However, legal influences have greatly affected the operations at Chacha Inn. Such legal aspects include consumer protection law, taxations, environmental management, and competition law among others as argued by Linda (1993). In an effort to overcome some of legal barriers, the hotel collaborates with some local suppliers that assist in coping with increasing legal demands or needs as a way of ensuring national integration. Economic force In the countries where Chacha Inn has dominated, its economic impact can be felt due to high amount of revenues it generates to those countries. Chacha Inn is less interfered by economic uprisings due to the fact that it has already established and stabilized financially. However, there are still some economic threats including losing money to unstable capital markets and other sectors of finance leading to a decline in profits and sales. Economic recessions are also a threat as more consumers try to reduce their spending as argued by Chacha Inn (2011). Social force Chacha Inn is such leading hotels that promote social development within the society. It directly employs people within the society it is located. The hotel is greatly influenced by the society lifestyle whereby a society that has put social activities as their part of life greatly contributes towards hotel development. Gender and age are also some of the social factors that influences the number of visitors within the hotels. Nevertheless, Indian religious faith greatly affect the operations of the hotel due to some believes where some do not have a feeling of some form of entertainment such as swimming in public as illustrated by Kishel (1992). Technological forces Advancements in technology globally have enabled Chacha Inn to improve its technology in terms of service delivery. Changes in internet technology have enabled Chacha Inn to change and automate some of its operations such as bookings. The hotel has developed online bookings in the internet. This provides a better chance to its customers who are able to check and book for their accommodations and other things at their place of convenience. Improved technology necessitates delivery of high quality services while satisfying customer needs satisfactorily. It is through advancement in technology that hotel is capable of maintaining its customers as illustrated by Lustig and Corcaran (2005). Environmental force There has been increasing pressure by various governments and world at large on the need to protect environment. This greatly affects the development of facilities such as green and rocky gardens, set of more buildings that meets environmental standards among others. Use of some fuels such as firewood is greatly prohibited in some areas due to destruction of forests. The hotels are supposed to establish their businesses in such a way that does not interfere with the environment as argued by Development Capital Management (2008). Heavy fines are usually imposed on those hotels that defy environmental regulations. Opportunities/Issue Analysis Strengths Chacha Inn has developed a strong brand over years that has increased its reputation making it good value for money according to its consumers. Over the years, the hotel has significantly developed and expanded globally. This has greatly increased its fame throughout the world. Chacha Inn also has an opportunity to expand globally in the recent years hence strengthening its capability to reach as many people as possible. Its increased use of information and technology has also improved its operations putting it at a better position in comparison to its competitors in terms of service delivery efficiency according to Kotler and Nancy (2006). IT has also enabled it increase its procurement and supply processes. The hotel also undertakes regularly market research in order to determine some of its products/services that require improvements. Focused human resource management strategy is also another strength that enables Chacha Inn to surive competition. Training and development of its employees is another key aspect that enables Chacha have improved services delivery system. Weaknesses Language barrier is one of the weakness that Chacha Inn experiences. This is so especially when different people from varying cultures and language backgrounds around the world visit the hotel. In some instances, there lacks staff who can understand some of the languages hence poor communication. Some of the upcoming hotels are setting a higher pace that the Chacha Inn has not set hence likely competition. Political forces are sometimes unavoidable is some countries due to uprisings especially in Middle East hence interfering with its operations. Opportunities Well-established services and hotel environments and landscape provides it with a good opportunity of being preferred by many consumers. Information technology has also provided hotel with a better chance of increasing and enhancing its services to its clients. The availability of affordable products increases the chance of exploiting market by Hotel whereby required raw materials like food are easily obtained. The incorporation of local Indian culture of people within the hotel region makes it easy for local community to accept and embrace it within the region it is located hence its increasing fame as illustrated by Kotler and Nancy (2006). Threats Increasing new entrants into the market is greatly threatening Chacha Hotel. Existing hotels are as well coming up with new strategies as well hence becoming a major threat to the Chacha Inn. Changes in global economy is also becoming a great threat to the hotels as the number of customers are reducing hence threatening its business. some of the activities like terrorism also greatly threatens. Objectives Product Some of the products that Chacha Inn offers include quality food, entertainment, better scenery, leisure activities, and better accommodation facilities. Other products that are offered includes online booking through the hotel website which is warranted and reliable as argued by Kotler and Nancy (2006). Price Chacha Inn has a good package in terms of price where it also offers some discount packages. This attracts large number of consumers who look for such good offers. In most instances, most of the products/services offered by the hotel are very good in terms of value for money. This gives the hotel a better position in terms of competitive advantage. Place Chacha Inn is situated between two major towns in India that including Delhi and Mumbai. This provides the hotel with a good distributing system of getting its supplies from the towns. This is also a better area where customers are able to access the hotel without much problems. This is mainly due to good network in terms of infrastructure that allows consumers to get to the hotels easily. Chacha Inn has good channels where it tries to get exposed to its potential customers. This is through offering exclusive rights. Promotion Promotion plays key roles in ensuring consumers’ are greatly attracted towards the hotel. Chacha Inn undertakes a comprehensive promotion of its services and products in India and around the globe. This promotion is mainly undertaken in media and websites as well as publications including magazines. Strategy The hotel has a strategy of ensuring that customers get value for their money. This is through offering good services and products. This enables the hotel to gain the confidence for its customers. Customers are also able to do a best selection of quality rooms, food and other services relevant to their needs and provision of the most convenient leisure experience. Chacha inn also attracts its customers by offering unbeatable prices and exciting surprises which builds loyalty between the hotel and its customers. The Product Life Cycle Product life cycle has 3 main stages which is characterized by revenue which is generated by the products. Chacha Inn is at its maturity stage where it is able to generate a lot of sales from hospitality services or products it offers. Its sales have grown significantly over the time to such an extent that its sales now generate significant amount of incomes. This is the stage whereby the brand awareness for Chacha is very strong with less expenditures on advertisings are not high. It is at this point that Chacha is putting a lot of efforts in trying to convert non-customers to customers. This stages has seen Chacha reduce its price in response to competition increase as an effort to avoid price war. This stage has seen Chacha Inn develop and improve its promotion ads that are competitive. Figure 1 product life cycle BCG matrix method There are 4 strategic business units (SBU) that include Stars, Cash Cows, Question Marks, and Dogs. Chacha Inn is currently growing at a faster rate where it is about to mature in hospitality industry (Subroto 2005). Its growth rate is currently increasing significantly with time mainly due to the services it offers and its already established brand. Chacha Inn is at Stars level in comparison to other hotels within India. This is because it is generating a lot of money from the revenues. Its growth rate is very fast. However, in case the growth rate declines, it is likely to become a cash cow. Chacha Inn has good market share as compared to other hotels in India. According to BCG matrix, dogs means there is low market share and low growth rate. However, Chacha Inn has already moved from that stage. In terms of question marks, this means the business is growing very fast although the market share is small with less generation of cash. Figure 2 The BCG Matrix Ansoff analysis Ansoff Growth matrix is a market/product matrix that assist businesses decide their market growth strategy and products (Subroto 2005). According to Ansoff Growth Matrix suggests that a business tries to grow depending on whether its market exist or its new or whether the products are new or exist. Chacha Inn provides existing products and it is already existing in the market. therefore, it requires to focus more on the market penetration. This is a growth strategy whereby business focus on selling existing services/products into existing markets (Thompson & Strickland 2003). Chacha Inn will achieve several objectives in its efforts to gain market penetration. Such 3 main objectives include: Increase or maintaining market share of its current products/services through combination of promotion, pricing strategies, among other aspects Secure domination of growth markets Restructure a mature market. This is through kicking out its competitors Figure 3 Ansoff Analysis Brand Positioning Map and Branding Strategy The brand market map is mainly to assist in identifying “gaps in the market”, this is generally where customer needs are not being met or satisfied (Thompson & Strickland 2003). Some of the important aspects include efficient delivery of services, good reception, availability of several services and products. Figure 4 Brand Positioning Map Chacha Inn has a very strong brand due to excellent services it offers to its consumers as well as variety of products. The major aspects associated with the brand include better and wide range of services offered by the hotel. The objectives of the brand are to attract more customers while retaining already existing ones. More promotion will be undertaken as an effort to increase brand awareness (Thompson & Strickland 2003). Strategies towards achieving objectives Increased promotion among the potential clients Increased quality of services within the hotel Undertaking extensive marketing campaigns to increase the fame of hotel Increase/introduce a number of new products and services special from other hotels Set the prices of its services and products to ensure they are competitive Every business is analysed by the factors that affect its functions and these factors are attributed for the success or failure of the business. In light of this, certain techniques are considered to contribute to improved competition in the market. These include customer orientation and coordinated marketing and profitability. In market penetration, Chacha inn focuses on its market and the products its offers to the public. It also has good information on competitors and customers’ needs. Chacha inn also has a Museum which offers a one stop shop for all consumer needs and this improves reliability to its customers. Marketing metrics The success of the strategies will be determined by monitoring the number of guest visiting the hotel at a specific period after implementation of the strategies. A consumer research will also be undertaken to determine some of the areas that need to be improved within the hotel. The research will also determine whether consumers are becoming more satisfied. It will also determine whether the services and brand has increased in the society and among the potential consumers. Conclusion In conclusion, Chacha Inn has got to where it is today because of the technology that it has used in its operations. Its management has also proven to be effective and to deal with problems as they arise. The hotel can however improve on a few areas such as the prices so that it can continue to retain loyal customers. Extensive promotion and marketing is required as a way of increasing market share in the competitive hospitality market. improvement of services/product should also be improved as a strategy of attracting more consumers. References Baker, S & Karen, W, 2002, The Responsive Public Library: How to Develop and Market a Winning Collection, Libraries Unlimited, Englewood. Birkmeyer, C & Sally, B 2005, Marketing your library. Towson, Library Video Network. Chacha Inn 2011, Amenities and Facilities, viewed on 31 August 2011 Chacha Inn 2011, Chacha Garden Retreat, viewed on 31 August 2011 Fisher, PH, Marseille, MP & Ellen, GM, 2006, Blueprint for Your Library Marketing Plan: A Guide to Help You Survive And Thrive, Chicago, American Library Association. Jinnett, J & Linda, P 1993, Target Marketing, Michigan, Upstart Publishing Co. Kishel, G & Patricia, K 1992, Build Your Own Network Sales Business, New York, John Wiley & Sons, Inc. 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