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Marketing Plan for Kimpesiki Hotel in Dubai - Case Study Example

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The paper "Marketing Plan for Kimpesiki Hotel in Dubai " is a good example of a marketing case study. Kempinski Hotel Mall of the Emirates is the global third biggest indoor ski resort with one of the globe’s longest indoor ski slopes and the largest covered snow park. Also connected to the largest shopping mall outside North America, this truly exclusive five-star luxury hotel is set to be a destination in itself…
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Extract of sample "Marketing Plan for Kimpesiki Hotel in Dubai"

Name: Tutor: Title: Kimpesiki Hotel in Dubai Institution: Date: Executive summary Kempinski Hotel Mall of the Emirates is the global third biggest indoor ski resort with one of the globe’s longest indoor ski slopes and the largest covered snow park. Also connected to the largest shopping mall outside North America, this truly exclusive five star luxurious hotel is set to be a destination in itself, providing a complete recreation experience with the state of art health club, Ayurveda wellness centre, tennis court and swimming pool. Gusts will be capable to go shopping, skiing, or soak up the winter atmosphere in one of restaurants overlooking the ski slope. All the hotel rooms are exquisitely appointed with a modern décor exuding a residential and warm feeling. The hotel has been experiencing increasing demand and this is predicted to continue for the next coming years as long as quality is maintained. Introduction Kempinski hotel mall of the Emirates is a five star, luxurious hotel attached to the United Arab Emirates indoor ski slope and one of the largest shopping Mall outside North America. Along with Mall of the Emirates shopping centre as well as alpine themed indoor snow resort of Ski Dubai, the hotel has grown to be an attraction in Dubai. Kempinski Hotel Mall of the Emirates is faced by numerous product and marketing challenges as a result of opening of numerous new budget hotels within the walking distance of the property. When the Kempinski Mall of the Emirates was opened in 2006, its adjoining mall was the biggest outside North America, and Ski Dubai was one of the most recognized attractions of Emirates. Currently, the mall together with its interior ski slope remain huge draws, but Kempinki hotel faces novel challenges as the figure of hospitality and retail establishments have sharply increased in the recent years. So far, the hotel has been able to see an increase in footfall regardless of the financial crisis and the launch of Dubai Mall, which is the biggest mall based on entire area. When it was opened, Kempinski hotel was distinct since its connection to a mall, but Dubai Mall currently has its personal hotel too and this concept is successful. Like several hotels in the globe, Kempinski hotel was hit by the financial crisis, but avoided lowering its prices as much as possible during the downturn. The reality that Kempinski is adjacent to a mall has assisted its levels of occupancy during the financial crisis as a huge portion of its visitors are GCC locals, who are large shoppers and have also tended to travel closer to hone during the downturn. Supply side analysis Schewe and Hiam (2000) argue that supply analysis is used to attain and develop the essential knowledge and intelligence to make excellent procurement decisions in an organization. A successful supply side analysis generates a competitive advantage in marketplace through minimizing supply risks and costs. Identification of resource and product requirement has allowed Kempiski to understand the services and products that it offers to its customers and the factors vital to the success of the hotel. The strong financial indicators and positive forecast from the oil and financial sectors point to expanding the number of tourists and business travelers to the region, and the present megaprojects , which entail strengthening of infrastructure of new airports, roads, flight roads and commercial and residential buildings are attestation of the support for this uptrend. The Middle East area’s diversity has allowed Kempinski to develop unique products, which would allow it to expand in terms of intra-regional and inbound travel. In 2010, the hotel attracted around 18,000 guests, which is almost double their opening year figure. Kempinski is one of the most recognizable hotels and connectivity also makes it a preferred accommodation option for corporate segment. As an established property in the greatly competitive market, the hotel enjoys a deeper perceptive of both guest preferences and market dynamics and is in a position to utilize this experience to leverage its exclusive advantages. The hotel has one of the greatest desirable locations, connected to Ski Dubai and one of most trendy malls in Dubai and is only a few meters away from the city’s golf courses and word class beaches. A direct metro connection makes access top conferences facilities in the city convenient and quick and the hotel itself is a common location for corporate events. Kempinski hotel has I the last few years seen a 300 percent increase in Group’s segment which accounts for 15 percent to 20 percent of total occupancy. With regard to recreation section, the GCC continues to stay as a major market for Kempinski, particularly during the festive period and summer holiday. Demand analysis According to Pringle, (1999) demand analysis is the assessment of how much there is for Kempinski product and at what price. It also studies the sales generated by the goods and services to determine the reasons for its failure or success, and how the sales performance of the goods and services can be improved. Discerning guests who are seeking highly rewarding travel experiences is one of the major trends that have come up in the lavishness travel post recessions. Visitors are looking for unique properties that make a greater base from where they are able to any destination, whether exotic and new, or persistently fascinating. The landmark and location status of Kempinski hotel of mall of Emirate’s properties places the hotel in a situation to leverage this trend. The opening up of novel markets such as India, Iran, China, US, Europe and Brazil is set to meet the current demand. India is developed in terms of products, the reason as to why five star hotels apt to enter into upper levels of the hospitality industry with grand opulent resorts and palace properties versus very cotemporary properties. In Indian market, Kempiski gains from marketing alliance with Leela resorts and palaces, both with its brand disclosure within India and to attract the significant expanding Indian outbound travel market. China is an exciting markets both intra- nationally and internationally. As a European brand, Kempinski has established itself in this market as demonstrating sophistication, status and quality which works tremendously well for the hotel in China. Particular markets are highly sensitive to appropriate promotions together with value added offers, ad the hotel have been highly successful in forecasting and meeting demands of the major markets that the hotel presently focus on. The Kempinski hotel mall of the Emirates has also undertaken an important drive to practice greener operations which illustrates its strong dedication towards a highly ecologically sound future for whole hospitality industry. Competitor analysis According to Fleisher, and Bensoussan, B, (2003), competitor analysis in strategic management is the assessment of the weaknesses and strengths of potential and current competitors. Competitor analysis offers both a defensive and offensive strategic context to recognize threats and opportunities. According to theory, the performance of an organization within a market is directly connected to the possession of key skills and assets. Thus, analysis of strong performers in the industry will enable the hotel to identify the reasons behind an effective track record (Aaker, 2002). There is stiff competition from other hotels that offers similar products such as rooms, but the strength of the Kempimski hotel is that it has created unique brands that are able to get a vice within the noisy market of developing products that tailors to customer’s needs. Intercontinental hotels group, Starwort resorts and hotels, and Hilton hotels are already operating over 150 properties in Dubai, and over 40,000 rooms. Additionally, big regional players have developed notable inventories. Rotana hotels presently operate 23 properties with 4405 rooms across the area, whereas Jumeirah runs five properties with over 2200 rooms. The niche products in hotels are on the increase, like the ski chalets in Kempinski hotel mall of Emirates, which caters to a very diverse client in the conventional scope of the five star hotel. As a business and family destination, Kempinski hotel offers its guests with world class and distinctive shopping, entertainment and dining, including more than 450 shops selling impressive labels, multiplex cinema and beverage and food outlets. The 480,000 square meter property contains 15 conference rooms, 395 rooms, a conference floor and a business centre. Every room has a flat screen plasma TV as well as wireless internet facilities. The main selling points of the hotel are the 15 ski chalet style rooms which charges Dh25, 000 per night, provides views of the snow covered ski slopes of the mall and the Arabian Gulf Positioning strategy In marketing, positioning is the process by which Kempinski tries to create an identity or image in the minds of its target market for its brand or product. Positioning is a perception that occurs I the minds of target markets and is an aggregate perception the market has of a certain product, service or company in relation to their observations of competitors in a similar category. It will occur whether or not the hotel’s management is reactive, passive or proactive about the ongoing procedure of evolving a position (Trout, 1999). Kempiski hotel mall of Emirates can position itself in the competitive market by green consumerism and technology to attract a huge customer base. Currently, the hotel has undertaken an important drive of pursuing greener operations which displays its strong dedication towards a highly ecologically future for the hospitality industry. The hotel is undertaking widespread efforts to reduce energy and water consumption and associated operating costs. It has introduced a waste management scheme that has been mover to other Kempinski properties. In addition, the hotel operates a greener policy that is intended at educating existing staff and new recruits to think green whilst executing their everyday tasks across hotel operations. In the last year, Kempinski hotel has taken part in numerous environmentally conscious communal activities, like the do a green thing; a corporate cleanup drive. Elkington and Hailes (1998) notes that green consumerism places Kempinski at a competitive edge because it creates a balance amid the anticipation of consumer behavior and profit motives of the business, within the orbit of environmental protection. It increasingly calls upon looking the whole life cycle of customer’s purchases , since consumers doesn’t merely purchase a product, but also everything else that accompanied its production and everything that will occur in the future as an outcome of the product. According to Kotler and Saunders (2009), the hotel vans use numerous technologies in the scope of its marketing effort. Internet based advertisement can be used to enable the hotel to market its products and reach a broader customer base. Kempinski can also use technology such as Expedia to enhance advertisement and promotion of its products. Expedia which is the global leading travel websites will gather insights of more visitors. . Expedia will enable the hotel to attract more customers because since its launch in 2006, it has been renowned for its superb location and chic style and has carved a profitable niche in Dubai accommodation via a persistent roll out of novel services ad facilities. Demand management Ries, and Trout (2000), notes that since the demand of Kempkiski hotel has been increasing from June 2010, the hotel can manage the increasing demand by improving the quality of its facilities exclusive rooms so as to maintain the present guests and to attract more in the future so as to increase customer satisfaction. The hotel has currently established novel high end suites which ideally compliment the resorts other innovative facilities, ad this has positioned Kempinski hotel mall of Emirates as the recognize choice in luxury accommodation. These elegant suites provide accommodation par excellence, from the modern furnishings and interiors to bespoke facilities as well as personalized service. This entire package equates to the superb experience with all trimmings of fine star luxury. The penthouse suits have been exclusively situated on the upper levels of the hotel. These suites have impressively spacious bedrooms with huge walk in closet and adjoining living area. The hotel has also established presidential suits that have a stylish living rooms and spacious dining rooms. The sophisticated design and tasteful décor creates luxurious ambiance all through the whole presidential suite, which also enjoys the striking panoramic views of ever changing Dubai cityscape. The table below shows the trend that demand is likely to follow for the next 12 months. Month June 2011 July August September October November December January 2012 February March April May Predicted No of customers 10,000 10,200 10,400 10,600 10,800 11,000 11,200 11,400 11,600 11,800 12,000 12,200 According to the observed demand for the hotel, there may be increase of 2,200 customers in the next one year. However, this may be interrupted if the hotel management changes the prices. Conclusion Kempinski hotel mall of the emirates is the most recognized five star hotel in Dubai. The hotel has a large customer base and has attained a competitive edge in the hotel industry by offering greatly rewarding hospitality experience. The hotel has been able to develop unique and stylish products and services and this has enabled its expansion in terms of intraregional and inbound travel. The hotel is highly recognizable because its coactivity to a mall makes it a preferred accommodation choice for the corporate segment. As a n established property within the highly competitive market, the hotel has enjoyed a deeper perceptive of both market dynamics and guest preferences and has been a position to use this experience to leverage its exclusive advantages. Bibliography Fleisher, C, & Bensoussan, B, 2003, Strategic and Competitive Analysis: Methods and Techniques for Analyzing Business Competition, Butterwort- Heinemannl, New Jersey. Aaker, D, 2002, Developing Business Strategies, Wiley & Sons, New York. Trout, J, 1999, Positioning" is a game people play in today’s me-too market place", Industrial Marketing, Vol.54, No.6, pp. 51–55. Ries, A. & Trout,J, 2000, Positioning, The battle for your mind, Warner Books - McGraw-Hill Inc., New York. Pringle, C, 1999, Strategic Profiles, Market Share, and Business Performance. Industrial Management, pp23-28. Elkington , J, & Hailes, J, 1998, The Green Consumers Guide, Gollancz, London. Schewe, D., & Hiam, A, 2000, The Portable MBA in Marketing , John Wiley & Sons, New York. Kotler, P ; & Saunders , J, 2009, "Marketing defined". Principles of marketing , McGraw-Hill Irwin, Boston . Read More
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