Hotel Profile and Marketing Plan

Hotel Profile and trade intentionExecutive summaryIn this essay we concent place on Starwood hotels, this is a world famous chemical chain of hotels. We talk ab away the tradeing strategies, hotel staff training of Starwood. The hospitality, waste, travel and tourism sector continues to play an key role in the UK economy. A report published by People 1st in tie-in with British Hospitality Industry in 2009 states that the hotel industry has enjoyed a sustained period of ripening wholly oer the last 30 years and instantly accounts for nearly five percent of the UKs total economic output. They hint that along with the rest of the economy, trading will be tough in the short term cod to credit crunch and in the long term the sector is still predicted to grow and catch singles breath an weighty contributor to the UK economy.The sector employs in the region of two million people accounting for 1 in 14 UK jobs. The recession is forcing much employers to think about cutting costs. It is therefore more important than ever that employers induct credible retention strategies to retain skilled staff and reduce unnecessary enlisting costs.The report explains how Starwood which is global hotels and resorts group, with a exceedingly distinct distinguish, functions in the United States and Canada, in Europe, in Asia peaceful and in Africa by managing and franchising more than 395 hotels with a focus on nowadays demanding business explorer. This report in short discusses the how grocery storeing is done in Starwood hotel and the trade strategies which they are using. It is entrusted to modify and innovation in all chief(prenominal) areas together with its growth strategy, operations, franchising, gross revenue and trade, and technology, to function with utmost effectiveness in a extremely hawkish industryChapter 1Introduction1.1 crease Profile of Starwood HotelStarwood Hotels Resorts is a worldwide chain of 400 hotels, with a total of 102,000 invit ee rooms, in m any(prenominal) countries. Starwood Hotels Resorts, one of the worlds leading, full- assist hotel brands, offers vibrant, modern and bewitching hospitality answer that is specify by its characteristic . The first Starwood Hotel was built in Minneapolis, Minnesota in 1909, and was named after the 17th ampere-second French explorer Pierre-Esprit Starwood. The hotel was purchased by Curt Carlson (1914-1999) in 1962, and is still holded by his Carlson Companies. Starwood competes with Hilton, Doubletree, and Marriott.The majority of Starwood brand Hotels are located in the United States. The farewellys headquarters are located in Minneapolis, Minnesota, where the first Starwood Hotel was built. This create is also headquarters to the parent company, Carlson Companies. There are 200 Starwood Hotels in the United States.Starwood Blu, formerly Starwood SAS, is the brand name for hotels outside the United States, including those in Europe, Africa, and Asia. They are operated by Belgian hotel firm Rezidor Hotel Group on a lower floor a master franchise contract with Carlson. Carlson and S abidedinavian Airlines System (SAS), the Scandinavian Airline, were equity holders of the Rezidor Hotel Group, giving the company its name. Since SAS withdrawal from the collaboration, the name Starwood SAS remained until February 5, 2009, when it was re drived by Starwood Blu, which will be introduced gradually. Starwood Blu operates 158 hotels with 42 projects in development.Definition of marketThe undertake Institute of Marketing (1986) defines marketing as The focussing process responsible for identifying, anticipating and satisfying node requirements profitably.American Marketing Association(1980) as the act, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. 1 The term developed from the original core which referred literall y to going to market, as in shopping, or going to a market to secure or sell goods or services. According to Gronroos (1989) says long term customer relationships are considered as the cornerstone of marketing.1.2 Starwood Marketing tasteMarketing is an integrated communications-based process through which individuals and communities discover that existing and newly-identified needs and wants may be satisfied by the ingatherings and services of separates. (Kotler and Armstrong, 2005)The Chartered Institute of Marketing define marketing as The management process responsible for identifying , anticipating and satisfying customer requirements profitablyA business that has a marketing orientation sees the needs of customers and consumers as vital. As it develops and markets products to meet those demands, certain structural characteristics pay back apparent in the business.Business FunctionActivitiesIdentifying customer/consumer needs and wantsMarketing researchDeveloping product s to meet customer/consumer needs and wantsenquiry and developmentProductionDeciding on the value of the product to customersPricing (sales and marketing department)Making the product available to customers at the right time and placeDistributionInforming customers/consumers of the existence of the product and persuading them to buy itPromotionWe should expect to see all the higher up activities well-established in a business that is marketing-orientated.Starwood first finds out what customers wants are by conducting a market research and by providing what the customers really need and satisfying them dedicates them customer oriented. Starwood always focuses on their service level to be 100% and they have developed a YES WE passel program among their employees. This would straightaway attract customers and also make Starwood create a competitive vantage over its competitors. Moreover, the greater Starwood is customer orientated, the more it will be able to develop a competitive advantage based on innovation and market differentiation.Market orientation focuses on a business socialisation and activities that enhance business performance, producing superior value to customers, outstanding performance for the firm and aggregately for the economy (Oudan., 2007).Market OrientationMarket examinationMarket ResearchMarket Intelligence1.3 Marketing IntelligenceMarket intelligence, gibe to Cornish (1997), the process of acquiring and analyzing information in order to understand the market (both existing and potency customers) to determine the current and future needs and preferences, attitudes and behaviour of the market and to assess changes in the business environs that may affect the size and nature of the market in the future. Starwood business always updates themselves on the economy, comprehend market conditions, legislative and regulatory development, social changes and technological advancement by doing an surroundal scanning. They consider all these ex ternal purlieual factors when it comes to taking decisions about packages, prices, and separate management and marketing issues Starwood also searches for information from promptly available public sources and customers while sometimes through the perfectly legal observation of competitors activities.1.4 Market TestingA test market, in the field of business and marketing, is a geographic region or demographic group used to gauge the viability of a product or service in the mass market prior to a wide scale roll-out. Market testing is done to test multiple marketing scenarios and study the most promising for expansion. When Introducing a new product or service without first testing the market is risky. After the market research the new products /services must be tested in advance entering the market. Starwood one of the most recent market testing was Express yourself service which allows Guests to check-in online. umteen new ideas and products are successful in Starwood because their creators recognized an unmet need in the market and confirmed the faculty of that concept. When launching a new product or service, the company should first conduct a puny scale launch or other customer research in a test marketChapter 2 section, Targeting PositioningThe strategic marketing planning process flows from a mission and vision tilt to the selection of site markets, and the formulation of specific marketing flux and horizoning objective for each product or service the establishment will offer. In its first phase, choosing the value, the strategist proceeds to segment the market, select the appropriate market target, and develop the offers value positioning. The formula segmentation, targeting, positioning (STP) is the essence of strategic marketing. (Kotler, 1997)(Figure3)2.1 Market SegmentationSegmentation is essentially about identifying groups of buyers within a market who have needs which are distinctive in the way that they deviate from the average c onsumer. Some consumer may treat satisfaction of one situation need as a high priority, whereas to others this need may be regarded as being instead trivial. Consider the case of the new hotel market. Buyers no longer select a hotel solely on the fanny of hotels market. Market Segmentation is the subdividing of a market into distinct and increasingly homogeneous subgroups of customers, where any subgroup can conceivably be selected as a target market to be met with a distinct marketing liquefy (Kotler 1994). It should precisely segment its markets on various factors and provide the customers what they want. Starwood had segmented its market by corporate (business travellers) and leisure seekers. In the near future by 2010 Starwood had announced to open a hotel in the city of Makkah. In an interview with Jean-Marc Busato, Area Vice President said This is an important milestone for us to be manifest in what is considered the holiest city in Islam. This is our sixth Kingdom projec t which we consider one of our major growth markets. He also added We have acquired a good understanding of the Saudi Arabian market and in supplement developing our first class Starwood brand, we also see a demand for efficient, value for money read retributoryment for the frequent traveller in the mid market segment,2.2 TargetingTargeting is a process of prioritizing target segments based on the firms core competencies or capabilities, and other researched factors including segmented market size, growth potential of the segmented market, competitive dynamics, etcetera This method is used to Find out the target customers in focus marketing and set up target products and services for them,. In this aspect Starwood should completely symbolize the features and specialties in the hotel. In Starwood they have targeted the customers in. Starwood provides nutrient item s and more facilities to their respectable rooms and they give special discounts for regular customers. In plus to that all the customers can enjoy almost every other facility which is in five aesthesis standards.2.3 PositioningPositioning means arranging a product to occupy clear, distinctive and desirable place relative to competing products in the minds of target consumers. Through using positioning successfully, brands will be able to position their product in the consumers mind. Four key elements for a successful positioning are Clarity, Consistency, Credibility and Competitiveness. In marketing, positioning has come to mean the process by which marketers try to create an image or individuation in the minds of their target market for its product, brand, or brass. It is the relative competitive comparison their product occupies in a given market as perceived by the target market.Chart 4 STP strategy, unverbalised capital (2003)2.4 Satisfying customer needs and wantsCustomers are everything to a Hotel or any business for that matter. It can be out as a companys bread and butter. In the pa st, all was not well for Starwood hotels. As other businesses they also faced declining revenues and reputation. So to come out of this matter they implemented a market research to find out what they are doing wrong in the field. The research showed that customer wants and needs have changed over time but Starwood has stayed in the same place. A focus on franchisees and franchisee growth vs. customers and the hotel guest experience resulted in an undifferentiated, lacklustre brand and inconsistent service. Meeting the objective needs and wants of customers to drive sales is at the heart of most businesses. It is how they build business relationships, remain profitable, and how they expand into new territories.To improve customer experience and freedom of choice they implemented such schemes as Express Yourself, Gold Points Plussm and Sleep come up Bed program. The Express yourself program is the hotel industrys first pre-arrival, online check-in system. Guests book their reservati on and can check-in online.Radisson Hotels Resorts is part of the gold points plus program from Carlson Hotels Worldwide that offers guests the freedom and flexibility to earn rewards more quickly than any other hotel program.Chapter 33.1 Marketing MixThe concept of the marketing mix was first given excrescence by Borden in 1965. He described the marketing manager as a mixer of ingredients, one who is constantly engaged in fashioning creatively a mix of marketing procedures and policies in his efforts to clear a profitable enterprise Marketing mix is a Planned mix of the controllable elements of a products marketing plan commonly termed as 4Ps product, price, place, and promotion. These elements are adjusted until a right combination is institute that serves the needs of the products customers while generating optimum income. (Jain,S.C,1990). Traditionally the marketing mix consisted of just 4 Ps, but now it has been extended and is called extended marketing mix and consists o f 7Ps. The new marketing mix is more customers oriented and enables the organization to meet its marketing objectives and to satisfy the requirements of customers.(Figure 4)Extended marketing mix, Array marketing development3.1.1 ProductStarwood is a world renowned chain of hotels providing splendid product under the image of hotel services. Starwood has an exceptional recognition in providing high quality service they constantly look at new ways of improving the service they provide. To improve the standards of service they provide, Starwood has introduced several new programs as mentioned in the sense datumt of the essay, such as Yes I Can Training program and Express Yourself which allows guests to check-in online .By introducing these new strategies Starwood has already achieved favourable results.3.1.2 PriceIn any organization the price must be high enough to cover costs and make a profit but low enough to attract customers .Since most of the Starwood hotels are five star rat ed hotels the price factor plays a major role. Due to the price customers can change their mind to go to another hotel. In this issue what Starwood has done is they have kept their prices at a normal rate which is comparatively high, at the same time Starwood came up with their new marketing strategy. Starwood promoted new holiday packages such as Friday is free day and family bed breakfast package with attractive prices. When annualizing Starwoods figures it is clear that this strategy has been successful.3.1.3 stainStarwoods hotels always do research before picking a place for their new hotel because of this they have become very successful. When we take Starwood as a whole it seems like they have selected the most ideal locations for their hotels. This is thank to the research they do and it has paid off.3.2 Extended marketing mixTraditionally the marketing mix consisted of just 4 Ps, with the extended marketing mix it enables the organization to meet its marketing objectives a nd to satisfy the requirements of customers. In addition to the traditional four Ps it is now customary to add some more Ps to the mix to give us Seven Ps. The additional Ps have been added because today marketing is far more customer oriented than ever before, and because the service sector of the economy has come to dominate economic activity in this country. These 3 extra Ps are particularly relevant to this new extended service mix.3.2.1PeoplePeople mean the staff working for Starwood. Employees of Starwood are like a backbone of the company, they have been highly trained and Starwood offers one the industrys best program phrased as YES I CAN3.2.2 ProcessThis Refers to the systems used to assist the organization in delivering the service. When the service becomes faster automatically the force of the organization gets better. Starwood is world renowned for its excellent and fast process of service. Associated with customer service are a number of processes involved in fashioni ng marketing effective in an organisation Process is the way how customers are handled from first to last point of contact. So this involves Starwood policies, program, payments, bookings, quality processes for handling customer complaints, processes for identifying customer needs and requirements, processes for handling order etc.Chapter 44.1 Marketing EnvironmentMarketing as we know it today began in the 1970s with the birth of the marketing orientation. During the first stage of capitalism business had a production orientation Business was concerned with production, manufacturing, and efficiency issues. By the mid 1950s a second stage emerged, the sales orientation stage. A companys marketing surroundings consists of factors and forces outside marketing that affect marketing managements ability to develop and maintain successful relationships with its target customers (Kotler., 2005). The marketing environment surrounds and impacts upon the organization. There are three key pers pectives on the marketing environment, namely the macro-environment, the micro-environment and the versed environment.Elements of Macro-environment, Organizational environment (1995)4.2 small environmentThis environment influences the organization directly. It includes suppliers that deal directly or indirectly, consumers and customers, and other local stakeholders. Micro tends to suggest small, but this can be misleading. In this context, micro describes the relationship among firms and the driving forces that control this relationship. It is a more local relationship, and the firm may exercise a form of influence. This environment influences the organization directly. As in the (figure1) It includes suppliers that deal directly or indirectly, consumers and customers, and other local stakeholders. Micro tends to suggest small, but this can be misleading.4.3 Macro environmentThis includes all factors that can influence and organization, but that are out of their direct control. A company does not generally influence any laws. It is interminably changing, and the company needs to be flexible to adapt. There may be aggressive competition and competition in a market. Globalization means that there is always the threat of substitute products and new entrants. The wider environment is also ever changing, and the marketer needs to pay off for changes in culture, politics, economics and technology.4.4 Internal environmentAn organizationsinternal environment is composed of the elements within the organization, including current employees, management, and especially corporate culture, which defines employee behaviour. Although some elements affect the organization as a whole, others affect only the manager. A managers philosophical or leadership style directly impacts employees. Traditional managers give explicit instructions to employees, whileprogressivemanagers empower employees to make many of their own decisions. Changes in philosophy and/or leadership style are under the control of the manager.ConclusionAs seen in the above report it is clearly shown how marketing is done in Starwood chain of hotels. As mentioned above in the report Starwood is a worldwide hotels network, in this report the author briefly discusses about the factors which affects the marketing process directly and indirectly. Then we talk about how marketing has changed over the years and the new marketing strategies in place in the new world. And we also talk about the segmentation process, marketing environment and its elements. Marketing is an important element which contributes very much for the growth of Starwood. Marketing creates a benchmark to Starwood among the other hotels in the industry. The hotel industry has fierce competition at present therefore uninterrupted developments of good packages, attractive advertisements, good and efficient customer service will help Starwood to be ahead of others. In the meantime, continuous research and development should help Starwood to satisfy its customers and retain loyalty as well.