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Marketing plan on hotel industry

This marketing plan is mainly focused on the Hotel Industry by INN Group of company been located in Zurich at Switzerland, named The Hotel 3c (Comfort, Convenient, Complement). Basically it’s been re-located in the place Golden Arch Hotel; indeed it’s been totally re-modeled, restructured from the earlier one. Significantly, with new investors (INN groups) than McDonald’s, World Class Catering Restaurants, “Gold Card” discount rates, Easy & Effective Reservations, International Luxury chains, Excellent Guest room appearances, Energetic Employees and more facilities.[1]

The Selected target personas, (Business travelers, Tourists & airline Crews) who brings very realistic growth to hotel 3c. In accordance with INN Group investors, this hotel will bring more profits and increase the occupancy average by 80%. In that way, their entire customer will be satisfied. Although the Hotel 3c brings more facilities such as conferences, Banquet facilities, Fitness & Sport facilities, Bars, Sophisticated restaurants, top class night club casinos like that. Offering specialized services to guests, trendy clubs, low cost no frills hotel & guest houses will be added benefits. Current time positioning in Zurich, especially near airport area are fast growing hotel business, this will promote the hotel 3c business also double.

The Hotel 3c has the four major objectives such Goal, Target, Strategy and Priority based, which provides 100% customer satisfaction, net growth occupancy rates, strong operating system and strengthening customers hope. It’s been projected investment of 30 million CHF, with 40% Equity remaining 60% of mortgage for 5% of interest rates and budgeted to hire more than 250 fulltime Employees. The Inn group of companies will monitor each and every movement in terms of marketing, service, offerings to pick and stable the trend.

Since Inn group have different excellent teams in terms marketing, purchasing that gives more stability to the brand name as well as growth. By having licensed trade professionals and ‘hands-on’ experienced professionals, Inn-Group, has the latest accounting systems, to give a clear understanding of what is happening within your business. In accounting, we would know the up to date performance analysis, immediate changes, outstanding payment information will give more confidence to the business. [2]

II. Situation Analysis and Strategy:

Always people desire to stay Comfort, Hygienic and crucially with low pay in whichever hotel they like to stay, that’s the Nature. Although when we looked up in Golden Arch Hotel Case, there are some welcoming comments and also some suggested, complained comments are feed backed by the people. Let me review these three personas and analyze it.

Name : John Allert,

Occupation: Former CEO. Interbrand, Australia.

Age: 48 Indoor Activities: French Game Show, Music’s

Outdoor Activities: Travelling, Business Meeting

Insight: I can describe as “once in a lifetime” experience with Golden Arch in a memorable mnemonic – John Allert

Finding: “Clean, processed, bland and reliable. Well, except for the internet and phone. And the electronic check-in, pre-booked online...” [3]

Information: Well-designed new Golden Arch Hotel group of McDonald’s could be famous between Zurich near Area.

Fact: Is it consistent to bring hospitality services Unique and Compelling?

Another interesting Persona from UK, who is a Tourist and Travel Writer and had been so many countries and enjoyable experience are. [4]

Name : Mark Williams,

Occupation: Travel Writer, Portchester, UK

Age: 51 Indoor Activities: Researching new places to visit

Outdoor Activities: Castles and Palaces, Archeology,

Museum Visits, Trains, Architecture

Insight: Well Design, Comfort and New Trend for McDonalds..

Finding: Food slightly different than UK

Information: “What you get here is pretty much what you would get anywhere.”

Fact: Different Experience than any other hotel.

Name : Zolanda,

Occupation: Airline Crew, A.A, U.S.A

Age: 32 Indoor Activities: Gardening, Cooking

Outdoor Activities: Shopping, Travelling

Insight: Brand Name and High Class..

Finding: Convenience in terms of distance that near to the Airport

Information: Lack of privacy issue makes us discomfort.

Fact: Curious to visit frequently unless if resolved some issues.

While analyzing these three personas (Business Travelers, Tourists, Airline Crews), thoughtfully I could say the Business Travelers are the most valuable customers potentially for Golden Arch Hotel. Indeed, McDonald’s was diversifying their core businesses by opening two four-star hotels simultaneously in Zurich and Lully, Switzerland in 2001. Prof. Stefan Michel illustrated his comments and found three major factors about this hotel is, “The economic downturn after September 11th, The word “arch” in German speaking countries sounds very much like a vulgar word for a certain body part, and most obviously, the problematic shower stalls.”[5]

Nevertheless, Golden Arch Hotel had been offered their customers more finest benefits such as, A simple Check-in and check-out by credit card, Shuttle Bus services, Internet facilities, Attractive lobby, high-speed Internet access, a child-care center, soundproof walls, adjustable beds with the instantly recognizable "M" as a bedhead. Normally, Business travelers were aimed to attract during the week and families were in the weekend. [6] Also been provided meeting conference hall, Birthday party arrangements and Wedding celebrations etc.., which are the main reason that people curious to visit Golden Arch. It might been the bad luck for McDonald to survive their trend into Lodging source because of economic downturn, although their worthless strategies like maintained two hotels at the mean time. As stated by Tuner, “A golden arch shape bed on the headboards is an interesting illustration of the use of a brand as mechanism for theming”. [7]

"The entire feeling was one of oddity and discomfort" says Prof. Stefan Michel by Frankly. [8] Despite of all these perspectives, Golden Arch Hotel had efficient customers but they could not keep their desires as they like. Within two and half years these two hotels had been closed are foray. Eventually Business people are the frequent visitors that given a great profit and occupancy rate consensually.

POSITIONING MAP:

This positioning Map is based on the current situations in Zurich- Europe Hotel Industry. The Hotel Park-INN (Ex. Golden Arch) group of McDonald’s is showed here to differentiate from Golden Arch. Based on the Hogg Robinson Group (HRG) recent survey announced that Zurich is the fourth Expensive cities in Europe and also has 7% average rate growth. [9]

By analyzing the positioning Map the crucial point is that people love to accommodate in Zurich airport hotels because of the short span to airport, nearest business offices (Zurich Insurance, World Trade center, General Motors Europe, Textile & Mode center) and also their real satisfaction. The major direct and In-direct competitors for Golden Arch are being challenged into their marketing strategy until this time. Current survey report listed the top ten Hotels in Zurich based on different criteria. [10]

These major hotels are being offered by several benefits by free or additional surcharge to make the customers restraint. The Hotel Radisson Blu groups of Hotels are in the top rated by most of the people and Park Inn too. Indeed, Hotel investors are always being competitive within their surroundings.

Business Strategy:

Obviously most of the Zurich hotels are targeting the three major customers such Business Professionals, Tourists and Airline Crews. Meanwhile, the offers and services can be exemplified by various attempts. According to the current market level, firstly I need to focus on major discrepancy that people had in Zurich hotels surroundings. Zurich Tourism found that the Bed Shortage and Cultural Tourism issues in most of the hotels recently. Meanwhile there are several hotels has been opened by various investors. “In the next two years, Zurich will get around 870 new hotel rooms with the opening of major international brands, plus some more small hotels and further expansions and renovations,” says Aurelia Carlen. Although to avoid those issues, Renaissance Zurich Tower Hotel has been pre-planned to built 300 rooms hotel, 25 Hours Hotel by Arabella Hospitality Group.

In spite of that the Global crisis created sudden changes into the occupancy rates. “In Zurich’s 3-star hotels hovered at 75%, while occupancy at 4-star and 5-star hotels was 65% and that created the needy for more new hotels” – Tourism Agency. “ business traveler clientele at 70% of hotel nights during the weeks but the cultural side is developing and forecast to grow further, as Zurich becomes more known for city trips because of its excellent cultural institutions.” – says Karlen [11]

Is it the Right Time?

Research stated recently that European marketing trend has an excellent growth and increased 25.3% in revenue/annum overall. Indeed, the occupancy rates are also increased by 13.1% in February 2011. [12] So this is a time to grow up faster in terms of Revenue, Profit with world class Quality.

Strategies:

Marketing discrepancies can be solved by analyzing the current level of situations. In that way Zurich has a very minimal issues and it could be accommodated easily. Let me elaborate my important strategies to build a new Hotel in Zurich.., “Excellent offers in season time bookings, reducing surcharges, high qualified guest rooms, increasing demand in online bookings, increasing occupancy rates, differentiating cultural Images, increasing business capital by more investors, Best hospitality service and comfort are the major key strategies”. Nevertheless, the customer 360 degree feedback report is needed to be researched. Inviting customer suggestions and feedback will boost the satisfaction between them. According to various people view, since there are some discomforts are accomplished by the Europe Hotel Industry [13].Apart from these three personas I could able to follow consultants who are sponsoring business conferences, seminars for the students or concerns, so they would be frequent visitors in particular. Also the customers, who stay regular trip, will be having a “Gold card” which gives a great discount for them.

To build and maintain a hotel is not a mediocre challenge. Nonetheless, Golden arch had major conflicts in economy growth and less occupancy rate. Indeed, there are few strategies are need to be built again another hotel to implement a profitable environment for us. In my own way, Golden Arch Hotel will be renamed as “3c” (Comfort, Convenience, and Complement)

. In that way people could recognize it from German’s unlike word “Arch”. The Hotel 3c’s strategy views are shown in Exhibit 1detaily.

III. Marketing Mix:

Another important analysis will enlighten into Marketing Mix using the 4P’s (Product, Price, Promotion and Place) and influence the customer thoughts [14]. Based on Mr. James Culliton comments 4P’s described as a “mixer of Ingredients” In 1948 [15]. I would say that the 4P’s are the major key points to our marketing plan based on the current situations. Let us look out this for our brand the Hotel “3c”

PRODUCT:

An intangible service based product in the hotel industry, the brand “3c” provides Comfort, Convenience and Complement to their customers and investors. In-terms of Luxury, Leisure and Business could accomplish your entire needs at one time in one place. Impressively it’s located in very nearest area to the Zurich Airport also with Economic lodging rates; customer service is a curious excitement to visit us. The brand “3c”Hotels offers major primary services inside the hotels and also supplementary services by outside of the hotel such as Online check in/out, Airport shuttle bus, visiting tourism places by 3c’s own bus with low fares, Taxi arrangements and so on. Based on my major Persona’s (Business Professionals, Tourists, and Airline Crews) recommendations 3c’s exclusive arrangements to attract all the personas in a different way. The following features and benefits that 3c’s going to offer for each persona are,

Business Professionals:

The major customer that “3c” going to have is the Business people. Indeed, they will have 100% comfort with safe and secure in all desires including privacy, comfort and convenience. Some of the features that 3c offers,

Wireless internet with less sub-charges

Attractive marbles and Bed rooms

Easy communication with local business offices for free.

Special discount rates for regular business professionals.

Departure status from Zurich airport

Tourists:

For tourists 3c will have the season rate discounts in booking and also cultural decorations for them delightfully. Some of the following special merits by 3c.

Less rate shuttle bus to visit for famous tourism places

Special tourist guides providing by 3c

Traditional party/occasion arrangements

Children game cubes

Airline Crews:

According to Robert A. Gilbert research the Taxes, Ground Transportation, Safety and Security, Accounting, and Contracting are the major sources between airline-hotel Industry. [16] Nevertheless,

The Brand 3c will accomplish their expectations and also will be provided special room allocations,

Luxury comfort, fun and entertain games, fitness centers, yoga and meditation facilities, special offers for regular contract airline groups, and special beauty parlors.

PRICE:

In case of Price, in most of the Star Hotels are being offered by an excellent services included with different overheads specially in 3c offered by different level categories like Credit card tax rates, Food rates, Service rates (Internet, Telephone, tourist shuttle bus), Allocation charges and so on. These all expenses will be included by various overheads due to high level services, even though that is normal in everywhere. The Hotel CitizenM Hotel Owner Michael Levie says “We looked at every process to see where we could streamline,” although he was reducing most of the cost by hotel construction and employee retentions.[17] Some of the following Prices are obtained here for the Hotel “3c” (Refer Exhibit 2)

High level of services with less overhead expenses.

Low sub-charges

Limited discount rates in special occasions.

Exhibit 2: The Hotel 3c’s pricing mix

PLACE:

All the hotels which are located in Zurich, listed in top ratings mainly on the distance and locations basics. In that way, the Hotel 3c (Ex. Golden Arch) been located to nearest airport and other important locations that is one of the positive plus for 3c. Also it can be promoted by providing various arrangements that are elaborated in Exhibit 3.

Exhibit 3: The Hotel 3c’s Place Strategy

PROMOTIONS:

The main important thing in marketing is how we are going to achieve the target by promotional activities? As far as we knows that the Hotel 3c’s basic goal and target to achieve the Customer Expectation 100%, So let us go with 6M approach.

Mission

To understand & achieve the customer expectations significantly focused on regular customers by providing "Gold Card" with great discount rate and to increase the Occupancy rate by more than 70 % by the end of this year 2011.

Means

Bed net Occupancy Rates are increased by 54.4% and also net room Occupancy rates are increased by 66.6% in 2010[18]

Message

Business travelers are the major focus by Hotel 3c. Because of their regular visits they should get "Gold Card" discount rates. Meanwhile Tourists and Families will be motivated by seasonal offerings. Concurrently, Airline Crews get contract based "Gold Card" Opportunities. "Be Comfort"

Moment

"To approach Business professional’s on travelling and request Feedback survey report to Tourists and Families on Relaxing"

Media

By advertising in Internet zone (Google search Engine) people come to know from all around the world. In that way, they will come to know the "Facilities, Reservations, "Gold Card" Discount systems, Star ratings etc."

Measurement

By surveying net bed & room Occupancy rates in Zurich area, Yearly revenue, Count of customer visits and Profit percentage.

After analyzing all the strategies and marketing mix for the Hotel 3c, this could lead to realize how

would be financially possible by the investors and shareholders perceptional view! Nevertheless, it emphasizes the modern facilities, based on customer dream thoughts. Not only the personas, indeed, the professors and students could utilize their peaceful environment here in 3c.

IV.FINANCIAL PLAN:

Despite all these costs and profit analysis, the Hotel 3c included in the highlighted area (Refer Exhibit 4). Nonetheless, the food & beverage are going to be undertaken by contracting catering facilities in top class people. But the Gold Card discount rates will be accumulated into expenses due to hotel improvement from the base. According to these financial analyses, the major risk is “High value investment”. So the shareholder value needs to be increased by each term of improvements from start to end. And another one is “Unbranded food retention”. Because of the catering contract some people wouldn’t desire food service by contract and other may prefer branded restaurants such McDonalds, Domino’s, KFC and so on. Finally, The Retail expenses (Credit card commission, Contract service charges) might be changed depending on concern work with 3c, that could influence to increase the expenses from the operating profit.

When comparing with Golden Arch, the Re-modeled hotel 3c will be given more enthusiastic improvements in each step considering the high value investment. However, this could lead for the new millennium people and marketing trend for the Hotel 3c with better customer satisfaction and curiousness between them.

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