SALES & MARKETING PLAN (For 2011 – 2012)
THE IMAGERY HOTEL,
XYZ CITY, INDIA
The presented sales and marketing plan has been worked upon while covering the theoretical knowledge gained during the duration of module. The sales and marketing plan covers only the rooms division strategy due to word count limitation (Revenue aspects such as Food & Beverage outlets, other revenue etc are not being discussed). Glossary at the end of appendices features the key industry specific terms used in the plan.
The Imagery hotel is an established luxury hotel located in the XYZ city of India. The hotel is part of a renowned chain of hotel. The hotel has been an industry leader in ...view middle of the document...
Current Product Offerings
The Imagery hotel is a well known 95 rooms small high end hotelthat not only provides accommodation facilities to its guests but also a host of other services such as food and beverage (One Chinese Specialty restaurant, one coffee shop and one bar), spa, healthclub, pool, massage etc. 65% of the revenue share is contributed by the room division sales. All the rooms in the hotel have recently been refurbished and the technologies have been upgraded to ensure a better guest satisfaction on the product front.
The Physical Product – Ansoff’s product growth matrix in appendix 2 indicates the hotel to increase the market penetration. While considering the GE portfolio matrix (As appended in Appendix 2), we should hold our position by holding onto the current share and margins. In order to defend our share, following strategies can be applied:
• Maintaining the customer value
• Maintaining the market communication
• Continuous product improvement
The Brand – The brand of The Imagery Hotel is well established and gives a high end luxury perception in the market. The parent chain of The Imagery Hotel uses House Branding strategy.
Business Market, trends and expected future
City XYZ, located on the eastern coast, is a tier 2 city of India. It is a major centre for IT support, Defense, Shipping, Logistics, Exports and heavy engineering industries with a large sea port. The city also serves as a major transit point for the smaller industrial locations and set ups around the area and is about to witness a flurry in hotel development with one additional 5 star hotel aiming to open by the 2nd quarter of 2011 and another two big hotel projects to be operational by mid of 2012.
Taking in account the past data, domestic feeder markets to the city are Chennai, Mumbai, Delhi, Hyderabad and Kolkata. Internationally, Russia, Spain, Italy and China, are the major feeder markets. The recent economic meltdown affected all these countries and thus the business in the sectors like IT support, Logistics and Shipping was affected. However, the hotels managed to sustain due to an increase in the visitors working on the long term government projects. This however, decreased the hotel ARRs due to lower entitlement of these visitors (As declared by the government). Imagery hotel believes that since hotel accommodation service is highly perishable with a shelf life of just one day, it needs to be sold at the highest possible rate for the day, thus it chose to accept the lower rated government businesses in order to accommodate for the lost chunk from higher paying sectors such as IT support, Shipping etc and attained market leadership in the city.
Appendix 3 refers to the past performance of the city hotels and industry trends. The city occupancies have dropped by 15% over the period of last one year due to economic instability. In order to sustain, hotels were forced to reduce their prices and thus ARRs decreased...