Marketing In The Hospitality Industry - Research Paper Example

The Riverview Hotel Marketing Report Student Name: Student ID: Institution: Date of Submission: Executive Summary The Riverview Hotel is a representative of a five star product brand, established within an exclusive business investment. This is identified to be among a group of hotels under the brand umbrella. The hotel business operations and activities are boutique properties, offering between 20 and 40 exclusive rooms. The Riverview properties are famous for the expedient and strategic location of its business within major cities throughout the county. In addition, the established facility services is identical with the brand, with distinguishing features associated with higher direct customer handling personalized services, compared to a range of other complete business facilities accessible in a deluxe settings. The Riverview Hotel at New York has over 35 executive rooms and is targeting the corporate customer market with a two to three night stay prerequisite. The targeted market division includes IT sector, this is brought about due to location of the premise within Silicone Hill in USA. The firm is located in the midst of an automotive industry, allocation that was chosen mainly to capitalize on the strategic market location and position of this hotel business considering the location of the Motors Plant main offices in New York Exhibition Halls. The hotel provides its customers with an alternative which achieves the impersonal, large five star accommodations among other facilities in the city. The firm is well located enabling its clients to be at the heart of business community and yet presents a calm environment for professionals. This strategy seeks to differentiate our product and services in areas such as Personal recognition to frequent clients’ travelers who return for the hotel services again Presents luxurious rooms offering a sense of doing business from home The firm has staff that has a strong sense to customer-service ethics Table of Contents Executive Summary 2 Table of Contents 3 1.0 Introduction 5 2.0 Situation Analysis 6 2.1 Market Needs 7 2.2 Riverview Hotel’s Market 7 2.3 Market Demographics 9 2.4 Market Behaviors 9 3.0 Market Trends 10 3.1 Business Trends 10 3.2 Corporate Travel Policies 10 3.3 Market Growth 11 12 4.0 The Company 12 4.1 The Riverview Hotel Mission 12 4.2 Financials 13 4.3 Linking Expenditure to strategy and Tactics 13 4.4 Business Services in offer 13 4.5 Market Positioning 13 5.0 SWOT Analysis 14 6.0 Market Competition 17 6.1 Indirect Competition 17 6.2 Marketing Strategy 18 6.3 Market Value Proportion 18 6.4 Target Market 19 6.5 Branding 19 7.0 Riverview Hotel Marketing Mix 19 7.1 Product Marketing 20 7.2 Pricing 20 7.3 Promotion 21 7.4 Sale Plan 21 7.5 Sales Strategy 22 7.6 Market Controls 22 8.0 Conclusion 23 9.0 Bibliography 24 1.0 Introduction The Riverview Hotel management develops a marketing plan with an objective of building a strong market share over the New York, a market that is full of rivalry considering that there is a free entry of substitute products. Similarly the firm is faced with increased competition from main rivals being Hilton Hotel and Marriott (Nykiel, 2010). Riverview marketing team has identified personalized service to the business customers as its main strategy to win over customers. This business strategy of differentiating in order to strategically identify business products from other providers supplying within this market, aims at supporting increased business operations not only in developing the Riverview brand in general, but also attracting frequent business travelers, who require a n improved level of direct client service and respect a different aspect considering services offered by other providers in the market. This will proffer increased guests to the Riverview creating an opportunity to control its core competencies are regards servicing business traveler in luxurious environment. 2.0 Situation Analysis In the global history, the hotel is placed ninth among international Hotel chain in the world, the business is reported to have over 320 entirely owned and managed properties. The group specializes in inhabit strategic, within the city location and targeting to serve mainly the corporate clients. With its property facilities varying from three to five star or even above categories including River Inns a three star, River Post Houses a four star Hotel and The Riverview Hotels a five star business facility among these exclusive Riverview brand Riverview Hotel properties in particular accounts for over 60% of total revenue across the group (Forsyth, 2009). The Riverview Hotel, New York, is relies on the yearly contracted customers from the travel corporate, the automotive and IT industry with guaranteed room nights every year. This area of business is estimated to account for 70% plus of the property’s revenue. At the moment the market is somewhat depressed, due to the financial downturn and limitations being made on commercial travel within USA (Riverview Hotel. (2011). this threat exposes critical corporations being made on the corporate sector can be considered a short or medium term, indications of return to big business travel are practical. Riverview Hotel, New York, has to continually redirect on distributes excellent business service sold at a reasonable charge in order to develop good customer relationship beyond one night stay. The rooms at this firm are offered as per the market rates, this is done considering increased cut dramatically in order to increase level of contract clients within an estimated time for instance in the next 10 – 12 month time. The Riverview Hotel’s endurance in the present environment remains dependant on repeat agreement with their client’s loyalty to the firm’s product. The brand must therefore carry on their deities in fulfilling promises in upholding business values (Kerin, 2010). 2.1 Market Needs The Riverview Hotel proffers value and profits to the business client, beyond the desired standard of the business facility in a fair charges. The business seeks to offer guests adequate support needed, at the time they need it. The Riverview Hotel functions within metropolis possessing a very rigid base in regard to the business surroundings, the business management team plans remains an integral strategy in creating increased awareness within these community (Algoe, 2011). 2.2 Riverview Hotel’s Market This business is a five star boutique hotel that comprises over 30 comfortable guest accommodation and directs its focus on servicing business owners and corporate customers. It provides business community and vesting merchandised trader who often do travel, within the metropolis of New York in USA. Over the years, the marketing team has been known to be developing links with customers aimed at attracting loyalty (Forsyth, 2009). This has been reported to a key element promoting repeated trend in business customers visiting Riverview Hotel facilities on an annual basis. The businesses offer their customers or guests’ modern technological business amenities, both on either inside facility or within the hotel’s convention amenities. Riverview Hotel’s guest feel that they conduct their activities from inside a less austere ambiance compared to what can be experienced in other up growing aggressive suppliers, who offer less personalized service to their customers (Kerin, 2010). A big majority of the firms clients appreciate when referred to by use of their names while arriving, the staff involved at reception have learned to remember their specific names, this strategy serves to crate customer loyalty as they feel appreciated. The Riverview Hotel’s management has noticed that this is critical in developing connection beyond the initial intended stay and confirmation on the business added value through client’s relations in earning group an improved measure as the premised is presumed the best in regard to competitive properties within the vicinity. Source: Forsyth (2009) 2.3 Market Demographics The firm is placed in a USA suburb of Seattle, New York with an estimated population of over 150,000. The larger part of this society consists of families having two to about five children, who are may be either at home or away from their parents or guardian having attended collage (Algoe, 2011). There is a strong ethic population, with many of the families in charge of the business enterprises are reported to be prospering from a varied business generations. There is a sturdy sense of this society possessing a higher intensity of awareness regarding care for the environment (Forsyth, 2009). 2.4 Market Behaviors Businesses within this area prefer to collude with one another in support and remaining faithful to the standing long relationships with their customers and suppliers. An effort that has boosted increased productivity over the years (Westwood, 2002). Over the years, this has acted as a way of investing in this society, re-structuring rather than irregular alliances with large market entrant suppliers creates increased potential cost effective measures. This has been of critical importance as the attitude in support of the brand values this business, understanding the past performance may be of great significance. Considering the presence of this firm in the region has been a successful over 10 years. This has build a good name for the business creating increased support from the local business necessities for accommodation, conference amenities and catering among other business functions. This research report reveals that more than 68% of the population was awareness of the Riverview Hotel services. The awareness intensity among the population was reported to be highest on the result taken among small-to medium-sized business where over 20 employees, who had utilized the hotel’s premise amenities either for vocational business guests or other interested customers (Algoe, 2011). 3.0 Market Trends 3.1 Business Trends The firm witnessed low period activities annual seminars which too affected the catering services. The local companies preferred carrying out meetings and seminars at their own property in order to cut on business operational costs (Westwood, 2002). Currently, this is changing considering recent improvement as group bookings, visitors and day use of conference facilities has been observed to grow gradually and the same effect is expected to increase even further over the coming periods. 3.2 Corporate Travel Policies Since there various security issues in regard to traveling, this is reported in consideration of domestic and the global markets, a decrease in corporate guests visiting the city. However, this might be difficult to understand considering level of company room business is reported to have regained, marking a significant compared to the previous period’s results and consequent projections for future periods (Nykiel, 2010). 3.3 Market Growth Based on the research reports, the business expansion rate within this targeted is reported to have steadily improved over the last five years. The traveling businessmen and professional cleants segment has grown at an estimated average of about 7.1%. For instance, the research reports revealed that automotive division reveals an average of 11% whiles the IT industry was reported to have improved by 10% (Riverview Hotel report, 2011). In the previous five years, the financial crisis during this period caused a reduced growth rate. However, there are results indicating that current trends are reported to return to the anticipated growth rate that was previously witnessed within the last three years starting 2009. Once the regional market has re-stabilized, it is anticipated that a growth is expected to prevail, creating at an improved pace over the coming five years particularly the IT and travel industry within the target market (Westwood, 2002). The recent recession so many smaller business oriented hotel chains lost their financial powers as majority of them were liquidated as they did not posse the required communications in support of under-performing assets as their superior chains had all possible machineries in place. Although a steady recovery is underway, it may take time for the firm to fully recover. This is evident considering corporate policy restrictions before the travel business returns to its normalcy as witnessed before the crisis struck a few years ago. On social aspects, intervention seeks to effectively plan on cost effective business travelers which lead hotel visitors to seek more value for the monitory reward achieved rather than the cost invested in booking the accommodation rooms. The firms plan to add value by differentiation applied in their services as a clear strategy comes into play. This requires a high level investment, considering that this business requires higher technical installation of ‘on board’ room reservations systems on certain aircraft needs system integration with hotel groups on control reservation system. 4.0 The Company The Riverview Hotel, based in New York USA is a representative group’s of the five star brand developed under a reputable image based on the quality of its personalized service. The facility over the years has built a well established premise with accommodation rooms between 20 – 40 exclusive rooms. 4.1 The Riverview Hotel Mission The business is dedicated in providing its guests with exemplary quality of service of all standards. The Riverview Hotel business seeks to deliver the firms promise of value and quality above other immediate service suppliers in this market (Riverview hotel report, 2011). The firm values its place in the society and is ever evolving in all aspects of its strategies to develop good relationships as well respect and serve the social responsibility through protection of the surrounding environment. The Riverview Hotel management among other stakeholders, continue to strive in creating value for both owners and shareholders whist honoring our brand values and encouraging the Riverview Hotel’s personnel by rising themselves within surroundings that are brought about by trust, loyalty and support to each other. 4.2 Financials The Riverview Hotel annual marketing budget is estimated to run up to $ 120, 000. Sales are anticipated to achieve revenue estimated to total up to $ 1,180,000. The business marketing expenses will equate to approximate rate of 8.5% of the overall revenue figure. The expenses forecast, is estimated to approximately 8.5% of the overall annual revenue (Riverview Report, 2011). 4.3 Linking Expenditure to strategy and Tactics The Riverview Hotel marketing expense is structured to reflect corporate strategy differentiation. The firm makes use of the quarterly travel trade publications and interim monthly press advertising to communicate firms’ message to potential customers of the corporate, which are the most target markets. The direct customer mailing services builds the business targeted customers information. 4.4 Business Services in offer The Riverview Hotel proffer high service amenities which is convoyed by high-quality personal service, which differentiates the firm earning the business the competitive advantage required while balling out with other brands, a strategy that has proven to be of great success in generating high level of repeat business (Forsyth, 2009). 4.5 Market Positioning The hotel is positioned strategically as a five star and beyond to all business travel’s facilities. It is strategically located offering high level of personal service (Westwood, 2002). The Riverview Hotel focus is placed offering our guests added value and differentiating its business operational services through levels of personal service. The business facility and workforce provides a quality hotel experience where guests are valued, respected while the business remains highly and truly valued. 5.0 SWOT Analysis The analysis depicts the internal strengths and weakness of Riverview Hotel and possible opportunities as they arise and consequently this plan is created in dealing with threats as they are presented within the premise environment (Algoe, 2011). This can either be external or internal. Strength Weakness 1. Strategy – the business has a well established differentiation strategy, through personalized services to each of their customers. 2. Business structure- Riverview Hotel has a flat, decentralized structure which best suits easy delegation and inclusive decision making, through inclusion of junior staff ideas (Algoe, 2011). 3. Skills - Riverview Hotel has a workforce, who posses diverse collection of service skills within management and staff. 4. Staff - Riverview Hotel business, have a motivated and highly skilled workforce, who are proud of their hotel. They are respectful and ever willing to promote the brand values in their business service. 5. Brand - Riverview Hotel enjoys the brand values as well represented brand loyalty amongst existing and new guests. 6. The firm enjoys a good reputation within and out of the neighborhood market and corporate traveling business being part of the frequent customers’ reliability. 1. Strategy – identification through brands is marketing strategy which needs be clearly and communicated to both external and internal local markets. 2. Systems – official systems resulting from detailed oriented work and environment in the international communications could further be improved. 3. Staff – Seasonal turnover requires on going coaching, while new staff introduced to how the firm activities are done. 4. Amenities – some of rooms within the premise are in bad condition, requiring renovation and upgrading in regard to technical equipment, for instance installation of internet based services. Opportunities Threats 1. Market – an ever improving growth immediately after time of crisis 2. Market Competitors – the firm enjoys a versed majority of market share having limited rivals in the industry. 3. Guest dependency – The firm has loyal customers who keep the business a better competitive advantage offering comfortable accommodation. Suppliers – the business has developed strong and long-term relationships Suppliers. 4. Economy – Riverview Hotel is located in a region that enjoys a growing economy, with most of its target customers having adequate disposable income. Making the business strategically located in attracting more traveling business personnel as guests. 1. Market Entry – the location of this business crease equal opportunities for any business investments prompting increased competition, by new entrants. 2. Substitutes – other service providers provides a fully furnished and business apartments and offer lower daily rates when compared Riverview Hotel’s. Source: Riverview Hotel , 2011 6.0 Market Competition Although Riverview Hotel faces no direct competition, in regard to business boutiques-style possessions other five star accommodation apartment compete for substitute corporate business segment, aimed at boosting their market share over their rivals (Algoe, 2011). The main market rivals include: Hilton hotel located in New York, it is also a five star hotel with room rates at par with Riverview, older facilities with a great reputation, Marriott is another five star city hotel which offers substitute services at an estimated 10% higher than Riverview the facility has less than ten years of service since it was first introduced in these business (Algoe, S. (2011). These are the main rivals in the market among other two namely Hyatt residence and Glendale Apartments. All these facilities offer similar facility services. However, there are cases of reduced focus on business requirements while including more of leisure services than what is currently provide at the firm (Forsyth, 2009). 6.1 Indirect Competition Riverview Hotel indirect competition is identified in the distance meeting s in the business world (Algoe, 2011). The more businesses come to a decision into conducting or adopting an internet based conference among other modernized technologies or even use of web conferencing. Increased adoption of technological facilities by majority of businesses threatens to the possibility Riverview Hotel. The marketing team is face with a challenge in convincing many businesses to consider reinforcing through selling of the idea to customers that business is better done than on a face-to-face model other than all this others (Levinson, 2007). 6.2 Marketing Strategy Riverview Hotel marketing strategy’s objective aims at communicating the unique set of services that the business facilities offer to differentiate hotel guests. Riverview Hotel workforce especially the management attempts to direct their focus to its guests in regard to issues of quality and value for money (Pride, 2008). This contrary to the cost associated with their stay. This market strategy is presented in a manner to communicate our brand values through developing close working relationships with the hotel’s customers and supplies. The marketing team at Riverview Hotel, attempts to identify the needs for the facilities guests. In achieving these goals, the continuous and effective differentiation and growth which happens through wining over new market mostly the corporate firms under the covered region ( Riverview Hotel , 2011). 6.3 Market Value Proportion Riverview Hotel facilities offer the best and most personalized services to their corporate traveler. In their business services business essentials are included in every room. There services such as internet connection, provision of improved access to seminar and reservation rooms with both audio-visual and skill for handling longer meetings (Riverview Hotel , 2011). 6.4 Target Market Riverview Hotel target market is primary directed on the professional visitors to the region from the following industries, where annual corporate contracts can be entered into: 1. Traveling business personalities and professional 2. IT industry 3. Automotive individuals The local firms are Riverview Hotel business aims to win over daily users of the convention amenities, day long accommodation, and corporate senior manager on long term professional duty. 6.5 Branding The hotel premise is famous of its convenient and strategic locations within the major cities throughout the country. The Riverview Hotel is synonymous with the brand that upholds an improved personalized service to their visitors’ extensive range of compressive business facilities available in a luxurious set up (Armstrong, 2009). 7.0 Riverview Hotel Marketing Mix Riverview Hotel facility offers product service information, which is sold to the guest through use of personal selling, direct marketing, advertising and internet service. The delivery channels include travel agents and international reservation systems. 7.1 Product Marketing Riverview Hotel offers a high quality facilities accompanied by excellent personal service, differentiated from competitors quality with the overall brand strategy proved to deliver great success in making high levels and frequent business meetings (Riverview Hotel , 2011). 7.2 Pricing Pricing plan has always been applied in product differentiation objectively to earn proven value for a rational rate as in contrast to discount and devaluing offers adopted at Riverview Hotel’s products and services (Pride, 2008). The room charges quoted is net of tax and service. The rates are charged per night on every room and the charges include continental breakfast, these rooms include: Corporate single charged $90 Corporate double charged $125 The corporate double deluxe $175 The corporate suite, which is occupied by a maximum of 2 persons, the firm charges $225 The firm charges conference room rates that are net of tax and service, the rates are charged on a daily use including tea and coffee breaks (Riverview Hotel , 2011). The price summary include Riverview boardroom rates at $ 260 per day Riverview Conference facility charges $320 per day Riverview Ballroom charge of $ 875 per day 7.3 Promotion Riverview Hotel primary focus is confidently remained on a mass communication via printed advertisements in trade publications and through the internet (Nykiel, 2010). The marketing team developed strategies to direct mail campaigns to existing, a clear prospective way of clients increase cost effective thus improving campaigns on the desired market achievement. This is realized through direct sell of their products while upholding vital element of the merge in order to carry on in building a long term relations within the local the public and generate high levels of corporate activity. The public relations activities play an essential developing a marketing mix and presenting business premises in a manner that is deemed supportive to surroundings, while generate high levels of corporate activity (Pride, 2008). 7.4 Sale Plan Riverview Hotel sales plan is a turning point upon which the firms selling strategies will define the process and prospecting plan on whether the business investment will be profitable or remain unprofitable. As a long as sales team follow the plans. The hotel has already running website, however it needs some upgrading to give it new look and feel protected interactivity. The content delivered is great and requires a little review. Possibly creation of new home page and designing navigation, the page has to introduce additional advantages to the target customers for instance, online reservations capability and printable brochures (Riverview Hotel , 2011). 7.5 Sales Strategy Riverview Hotel’s management has designed sales strategy which advocates for customer repeat visit by mainly the top corporate firms are targeted in this slot. Riverview Hotel management has established connection with corporate firms identified during the research, in strategically planning for future activities in boosting organization productivity through generating new accounts by first time corporate visitors (Reid, 2009). It is important that the business identify suitable strategies which may distinguish the business services from the rest of market players to equally maintain a competitive advantage. Determining if the price is right, the business traveler often will know that what is required on them considering all services they need at the premise to fully support successful business activities. 7.6 Market Controls Riverview Hotel marketing plan is structured in a manner that enables the management achieves the strategic objectives in terms of increasing revenue as a result of differentiating the firms’ service from the competition (Nykiel, 2010). This market has its challenges. However, the marketing team in place has to ensure a clear elaborate plan is in place to guide on target market achievement by measuring performance at highest levels of efficiency and accuracy. In implementing the suggested marketing strategies, all this figures can be evaluated by judging from past performance in comparison of the present and future projections when compared with the actual and ongoing plan will be altered or manipulated as necessary in order to react to any possible plan in the following years. 8.0 Conclusion Overall, the Riverview hotel marketing strategy seeks to win over a repeated visit by several critical corporate accounts. The firm has to develop increased relationship with the companies operating within the location of the hotel premise. It remains important that the firm maintains competitive price alongside with amenities offered when compared to the immediate complexities in the market. The hotel’s biggest piece of sales strategy depends on personal relationships. The business workforce, especially the management is keen on making every business traveler vesting the hotel feel like is remembered in addition know they like and what they dislike. The business management is ready to cultivate good relationships with department responsible in making traveling arrangements for their company. 9.0 Bibliography Algoe, S. (2011, January ). Holidays and Cellbrations. Retrieved November 20th, 2011, from top ten hotels at Riyadh: http://saraalgoe.hubpages.com/hub/Hilton-Hotels Forsyth, P 2009 Marketing: A Guide to the Fundamental, John Wiley & Sons, New York. Gary Armstrong, M. H 2009 Marketing: An Introduction, Financial Times Prentice Hall, London. Levinson, J, C 2007 Startup Guide to Guerrilla Marketing: A Simple Battle Plan for First-Time Marketer, Entrepreneur Press, London. Nykiel, R. A 2010 Marketing In The Hospitality Industry, Educational Inst of the Amer Hotel, New York. Kerin, R 2010 Marketing: The Core, McGraw-Hill Companies,Inc, New York . Sharon, L and Lechter, G 2009 Three Feet from Gold: Turn Your Obstacles Into Opportunities, Sterling Publishing Company, Inc , London. Westwood, J 2002 The marketing plan: a step-by-step guide, Kogan Page Publishers, London. William M. Pride, O. C 2008 Foundations of Marketing,Cengage Learning, London. Riverview Hotel. (2011, January). The Riverview Hotel Marketing . Retrieved on November 20th, 2011, from: < http://www.booking.com/hotel/gb/the-riverview.en.html?aid=311984;label=the-riverview> Read More