Hotel Profile and Marketing Plan

Hotel Profile and grocery storeing PlanExecutive summaryIn this essay we concentrate on Starwood hotels, this is a world famous chain of hotels. We talk about the grocerying strategies, hotel staff training of Starwood. The hospitality, leisure, travel and tourism sector continues to play an important role in the UK economy. A constitution published by People 1st in association with British Hospitality Industry in 2009 states that the hotel industry has enjoyed a sustained period of egress over the last 30 years and now accounts for nearly louver percent of the UKs total economic output. They suggest that a gigantic with the rest of the economy, trading lead be tough in the short term due to credit crunch but in the long term the sector is still predicted to bring on and remain an important 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 more than employers to think about cutting c osts. It is therefore more important than ever that employers have credible retention strategies to retain skilled staff and reduce unneeded recruitment costs.The report explains how Starwood which is global hotels and resorts group, with a highly distinct brand, functions in the United States and Canada, in Europe, in Asia Pacific and in Africa by managing and franchising more than 395 hotels with a focus on nowadays demanding commerce explorer. This report briefly discusses the how marketplaceing is make in Starwood hotel and the merchandising strategies which they argon using. It is entrusted to modify and innovation in alone main areas together with its growth strategy, operations, franchising, sales and marketing, and technology, to function with utmost effectiveness in a extremely competitive industryChapter 1Introduction1.1 resultion line Profile of Starwood HotelStarwood Hotels Resorts is a cosmopolitan chain of 400 hotels, with a total of 102,000 guest rooms, in man y countries. Starwood Hotels Resorts, one of the worlds leading, full- emolument hotel brands, offers vibrant, modern and attractive hospitality assistance that is defined by its characteristic . The archetypical Starwood Hotel was built in Minneapolis, Minnesota in 1909, and was named after the 17th century French explorer Pierre-Esprit Starwood. The hotel was purchased by discourteous Carlson (1914-1999) in 1962, and is still owned by his Carlson Companies. Starwood competes with Hilton, Doubletree, and Marriott.The majority of Starwood Branded Hotels are located in the United States. The companys headquarters are located in Minneapolis, Minnesota, where the eldest Starwood Hotel was built. This building 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 Bel gian hotel firm Rezidor Hotel Group under a master franchise contract with Carlson. Carlson and Scandinavian Airlines System (SAS), the Scandinavian Airline, were equity holders of the Rezidor Hotel Group, self-aggrandizing the company its name. Since SAS withdrawal from the collaboration, the name Starwood SAS remained until February 5, 2009, when it was replaced by Starwood Blu, which volition be introduced gradually. Starwood Blu operates 158 hotels with 42 projects in development.Definition of tradeThe Chartered Institute of Marketing (1986) defines marketing as The management process responsible for identifying, anticipating and avengeing node requirements profitably.American Marketing Association(1980) as the activity, entrap 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 master copy meaning which referred literally to g oing to market, as in shopping, or going to a market to buy or sell approximates or services. According to Gronroos (1989) says long term customer relationships are consumeed as the cornerstone of marketing.1.2 Starwood Marketing OrientationMarketing is an integrated communications-based process through which individuals and communities discover that alive and youthfully-identified call for and wants may be satisfied by the products and services of differents. (Kotler and Armstrong, 2005)The Chartered Institute of Marketing define marketing as The management process responsible for identifying , anticipating and satisfying customer requirements profitablyA stage 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 become apparent in the business.Business FunctionActivitiesIdentifying customer/consumer needs and wantsMarketing researchDevelopi ng products to meet customer/consumer needs and wants search and development harvestionDeciding 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 above 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 makes them customer oriented. Starwood always focuses on their service level to be 100% and they have developed a YES WE CAN programme among their employees. This would directly attract customers and also make Starwood create a competitive advantage over its competitors. Moreover, the greater Starwood is customer orientated, the more it lead be able to develop a competitive ad vantage based on innovation and market differentiation.Market orientation focuses on a business culture 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 TestingMarket ResearchMarket Intelligence1.3 Marketing IntelligenceMarket intelligence, according to Cornish (1997), the process of acquiring and analyzing information in order to understand the market (both existing and potential customers) to determine the current and future needs and preferences, attitudes and behaviour of the market and to assess changes in the business environment that may scratch the size and character of the market in the future. Starwood business always updates themselves on the economy, labour market conditions, legislative and regulatory development, social changes and technological advancement by doing an environmental scanning. They consider all these exter nal environmental factors when it comes to taking decisions about packages, prices, and other management and marketing issues Starwood also searches for information from readily 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 cuticle roll-out. Market testing is done to test multiple marketing scenarios and select 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 moldiness be tested onward entering the market. Starwood one of the most late(a) market testing was Express yourself service which allows Guests to check in online.Many new ideas and products are successful in Starwood because thei r creators recognized an unmet need in the market and corroborate the capability of that concept. When launching a new product or service, the company should first conduct a small scale launch or other customer research in a test marketChapter 2Segmentation, Targeting PositioningThe strategic marketing planning process flows from a mission and visual sense statement to the selection of target markets, and the formulation of specific marketing miscellanea and positioning objective for each product or service the organization 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 (s.t.p.) 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 de viate from the medium consumer. Some consumer may treat satisfaction of one particular need as a high priority, whereas to others this need may be regarded as be quite trivial. Consider the case of the new hotel market. Buyers no longer select a hotel solely on the basis 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 ripple (Kotler 1994). It should precisely segment its markets on various factors and provide the customers what they want. Starwood had segmental 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 present in what is considered the holiest city in Islam. This is our sixt h Kingdom project which we consider one of our major growth markets. He also added We have acquired a good understanding of the Saudi Arabian market and besides developing our first class Starwood brand, we also see a demand for efficient, value for gold accommodation 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, and so forth 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 food item s and more facilities to their proficient rooms and they give special discounts for regular customers. In addition to that all the customers can enjoy almost e really other facility which is in basketball team star 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 with(predicate) 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 identity in the minds of their target market for its product, brand, or organization. It is the relative competitive comparison their product occupies in a given market as perceived by the target market.Chart 4 STP strategy, Hard 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 an d butter. In the past, 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 use 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 acquire 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 Number Bed program. The Express yourself program is the hotel industrys first pre-arrival, online check-in system. Guests book the ir reservation 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 jumbleThe concept of the marketing mix was first given prominence by Borden in 1965. He described the marketing manager as a social of ingredients, one who is forever and a day engaged in fashioning creatively a mix of marketing procedures and policies in his efforts to produce 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 junto is found 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 across-the-board and is called extended marke ting mix and consists of 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 famed chain of hotels providing excellent 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 start 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 rated 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 PlaceStarwoods 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 high-flown locations for their hotels. This is thanks 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 ma rketing objectives and 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 efficiency 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 process es involved in making marketing effective in an institution 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 environment 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 a re three key perspectives on the marketing environment, namely the macro-environment, the micro-environment and the internal environment.Elements of Macro-environment, Organizational environment (1995)4.2 Micro environmentThis environment influences the organization directly. It includes suppliers that deal directly or indirectly, consumers and customers, and other local anesthetic stakeholders. Micro tends to suggest small, but this can be misleading. In this context, micro describes the relationship between firms and the driving forces that control this relationship. It is a more local relationship, and the firm may exercise a degree 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 continuously changing, and the company needs to be flexible to adapt. There may be aggressive ambition and rivalry 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. outcomeAs 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 continuous 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 d evelopment should help Starwood to satisfy its customers and retain loyalty as well.