Introduction Pearl Continental Hotel Peshawar Marketing Essay

Overlooking the well-known Peshawar golf course plus the historic Bala Hisar Fort, Pearl Continental Hotel Peshawar is located two kilometers away from the airport. Simple yet charming, it offers an exciting mix of fine dining, matchless services and comprehensive business facilities, surpassing the guests, Expectations from the popular Pearl Continental Hotel brand

History

Pearl continental chain in Pakistan is owned by the Hashwani group under the hold company Pakistan Services Ltd (PSL) and Hashwani Hotels ltd correspondingly. The Pearl chain was acquired by the group in 1985 at a time when the representation of the hotel was failing due to service inefficiencies at this time the name of the hotel was changed from Hotel Intercontinental to pearl continental, moreover several efforts were made to raise its image. These included new furnishings and fresh landscaping of the hotel foundation as well as advancement of food and service through training of appropriate human resources.

Vision/Mission

We are committed to dynamic growth and services excellence built upon your heritage of traditional hospitality. We strive consistently meet and surpass guests, employees and other stake holder’s expectation. We feel pride in making efforts to position Pakistan in the forefront of the international arena.

Our core values

Growth and development

Competences and contribution as the only basis for job security.

Promotion from within

Learning environment and opportunities

Provision of world-class education and training

Aligning people with latest technological trends

Recognition and Growth

Achievement orientation

Performance based evaluation

Appreciation and incentives

Setting ever rising standards of performance

Innovations

Listening two way interaction

Participation and encouragement

Motivation

Enterprise

Initiative

Trust

Cooperation

Support

Teamwork

Sense of ownership

Empowerment

Integrity

Dignity

Respect

candidness

Group of companies

Owing to the vision of its founder Mr. Sadruddin Hashwani, (Hashoo Group of Companies) is a finest player in hospitality industry in Pakistan in view of the fact that its inception in 1972. It has offered its valued guests warm welcome, flawless service plus supreme facilities promising a unforgettable experience.

Strategically situated at prime locations the hotels outfit to the business and leisure time needs of local and international market. So the Group’s commitment to excellence, consideration to details and personalized services ensures a loyal guest directory.

The task to manage the hospitality interests of the Group led to the formation of two companies:

Hashwani hotels limited (HHL)

Marriot hotel Islamabad

Marriot hotel Karachi

Zaver Marriott hotel Gwader

Pakistan Services limited (PSL)

Pearl continental hotel Peshawar

Pearl continental hotal Rawalpindi

Pearl continental hotel Karachi

Pearl continental hotal Lahore

Pearl continental hotel Bhurban

Pearl continental hotel muzaffarabad

Goals and objectives

Customers services

Pearl continental hotel the largest chain of hotel in Pakistan maintains the standard of excellence for which it’s famed worldwide. At the hotels the art and science of hospitality are applied in perfection to offer the most luxurious ambience and a wealth of services to the guests who are as precious as Pearls.

Training

Investment in people and human resource development is an ongoing process in the Hashoo group. New management concept and intensive training programs are incorporated at all level of supervisory at managerial positions. Hashoo looks forward to imparting systematic and scientific knowledge of the operation of both tourism and hospitality business.

Profitability

In order to maximize profit through souring new business, different marketing arrangements are being made which include joint ventures and exclusive marketing arrangements.

Growth profile

The outstanding growth can be achieved with excellent services, improvement in décor and facilities, variety of cuisine, expansion/addition of banquet halls, increase in airline catering business, and permission to serve food at marriage parties.

Traditional parties

Pearl continental hotel is synonymous with a tradition of personal services, efficiency, convenience and guest satisfaction. Repeat customer’s business due to their exquisite cuisine and courteous services which give full value for money, is one of the most valuable assets

Health and safety Environment

PSL is committed with constantly strive for higher standards for health, safety and environment for their employees, and guests. The hotel is very mindful to the occupational safety and health issues and to cement their “environment friendly philopshy.

Enterprising

PSL is eager to expand its activities in all major locations of the country and abroad and to play a pivotal role in the development of tourism in Pakistan which can only be achieved through sustained support of the government, financial institutions, and of course our valued share holders

P-3: Conduct a SWOT and PESTLE audit of a given organization

Political

Political factors contribute highly towards the business of any organization. Therefore the political issues have great influence on business of any particular organization. The instability of the country and increases taxes are ruin the industry of every business. It include hotel industry as well, from last five years every business facing difficulties in serving, the deteriorating law and order situation in the country and continued large number of taxes, hotel industry is dependent on tourist, if the country is not in security so how tourist will visit Pakistan, and also there is no proper infrastructure for beauty of province that foreigners come Pakistan and stay in hotels, the fall in foreigners tourist when on 11 September when blasting in PC Peshawar.

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Economical factor

Almost all the political meetings, concerts, seminars, marriage party are held in PC, Pearl continental hotel Peshawar has captured most of the higher class customers due to their strong economical power. PC is stronger than their competitors because they providing gym, sauna bath, swimming pool, restaurant etc which give them edge on other Hotels, PC were close Bar B Q 2 years before but now again they open it for their demand of customers, the purchasing power of peoples were increased while instability make them inferior, but from last some months the condition of Peshawar is somehow fine, Which will lead the businesses in good position.

Social factor

Socially Pearl continental hotel is more preferred hotel chain to visit by its customers, as the Pearl continental hotel is based on Pakistani culture and traditional so its famous among the peoples and also famous worldwide by rich culture, as the prices of PC is high so Peshawar peoples would not come to PC for foods, so actually they are targeting good income peoples and high standard families for the staying, PC create a good image among customers and focusing on quality foods and services to their customers

Technological

All major credit are acceptable round the clock, Pearl continental hotel have latest technology for cooking and modern cooking recopies, from everyday utilities, to carpets, and antiques, our shopping area provides all, PC have entering electrical doors, and they have camera fix system, the rooms having own cards which can access through password, and every room have own fridge which have cool fruits there.

Legal

PC is five star hotel which is legalized properly recognized, and paid a lots tax to the country in every province, and they also hire employees from the every province which is also good for society, they are paying a large quantity tax to the country, which can help the country in progress and they are highly recognized and standardized their services by ISO 9001.

Environmental

Pearl continental hotel do not do anything regarding the climate changes, and environmental changes.

SWOT Analysis of PC

Strength

From the questionnaire and observation and personal experience that had done it the main responses of customers about the main strengths of PC are:

Those choose good area on road

One of the most important strength is that PC is in the hotel market from last 36 years

It also maintains quality in good quality food restaurants

Quality services in the mind of customers

Energetic staff and qualify staff

External clients are economically rich, PIA and cell phone companies

Foreigners are attracted towards only PC in the District

Embassies ambassadors also stay in five star PC hotel

international tourist are attracted to PC, because of 2 kilometers destination from airport

Worldwide famous and high hotel chain in Pakistan

Luxurious and comfortable rooms in the province

All the facilities regarding, health, safety, security, picking and drop etc

High tradition food with great hospitality

History of hospitality

They provide tradition wise in province

After launching hotel in Dubai it become international five star hotel chain

The key strength of PC is its voice mail card locking system for ideal security.

Weakness

PC being an old hotel in history bares a difficult weakness since old customers does not have a preference to visit the same hotel over & over.

They desire to experience somewhat new.

The famous saying “OLD IS GOLD” turns out to be the strength of this hotel as it diverts the attention of its customers back to the luxuries provided to customers.

The extra weakness of PC lies in its telephone system which is again an old system.

As Sheraton enjoys the great benefit of having latest technology that is it Tele-communication

Instability in Peshawar

Rich peoples of Peshawar most of them are conservative so did not want to perform wedding ceremony in PC.

Opportunity

A kind of monopoly in province

The only five star hotel in the province

No specific competitors

Seminars are yet again a great opportunity for PC as worldwide seminars are being in custody in the city or else in PC Banquet halls which once more help PC to show its quality services as well as in this way people across the world come to the city and reserve rooms for themselves

Parities wedding along with other extra circular activities are opportunity to help PC distinguish its name.

If IELTS test are shift from Islamabad to Peshawar so it will be the biggest opportunity for them, they will take IELTS test in PC.

If the condition of Peshawar is stable for foreign come to Peshawar for investment, so they will stay at PC.

Threats

Threads from different terrorist group

Law along with order situation can also be a threat like strikes. If law along with order not uphold throughout the country people around the world would stay away from Pakistan and if people won’t come in that case there will be no tourist so who will rent out the rooms.

As if stuff doesn’t work with customer at PC like if they negotiate for a room and PC is unable to fulfill their fulfillment then they can always walk across the road and just blow.

P-4: Apply any one Strategic positioning technique (Value Chain) to the analysis of given organization

Strategic Positioning:

Strategic Positioning according to me is the purposeful positioning of a brand in order to foster the MINDSET that you want inside the heads of your audience. This can have a direct impact on the prices you are able to charge as well as the overall level of authority your readers grant you on your subject. Obviously, you probably want them to like you and like what you have to say. But, when we start taking this into the realm of business, it doesn’t always translate into income. Strategic positioning is the way you position your company, business model and offerings by analyzing your marketplace, rapidly changing environment, futuristic trends, competition, consumers and leveraging it to your advantage.

Value Chain:

Value chain analysis is seen as the wealth of new opportunities for companies that capture right customers, design a customer-responsive supply chain, create a flexible and cost effective supply chain and employ the right technologies to enable their business model Supply chain management is being increasingly looked upon as a source of sustainable competitive advantage by cutting costs intelligently, without in any way reducing value for the customers.

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The study of Value chain analysis is also helpful for me in understanding, what are the various technological systems used, sources of raw material, inventory management methods, warehousing management techniques, the current scenario of supply chain practices carried out by various fast food companies and how efficient are they in following their standards and how does it helps to economy of the country. It also helps me in understanding the current opportunities in Supply chain sector and requirements of professionals in companies and helps me in developing the required skills and abilities required to be the part of Value chain analysis in a reputed organization.

Value chain analysis in PC:

The main three considerations in any supply chain management are:

Managing Product

Information flow

Funds flow

Managing product :

Raw material: Chicken, vegetables, cheese, etc

Raw material suppliers: Reliance and More (vegetables), Chicken (Venky’s)

Distribution channel (logistics partners) : PC has no any logistics partner as all the distribution of materials are done by individual suppliers and PC head office also has its own distribution channel all over Pakistan.

Information flow :

Communication channels: PC uses email and telecommunication channel for communicating with PC head office and suppliers like Reliance, More, and Venky’s.

Funds flow :

Funds Flows i.e. the money payment to suppliers and other debtors are done through a bank account. Each and every PC outlet has its own bank account and the payment of each outlet is done by Head office (Karachi) through this bank account on a monthly bases.

Drivers of Value chain management in PC:

Facilities : (Production/storage):

As PC follow a centralized system for all its raw material or ingredients are stored and produced at the individual PC stores. The storage of some items is done for monthly bases and few for weakly bases.

Responsive V/S Efficiency:

PC follows the Efficiency method of distribution of materials in all over Pakistan. With help of this distribution method it is able to reduce the time involved in movement of goods from one channel to other channel member and then reaching the customer, able to reduce the carriage cost and holding cost involved in responsive method of distribution.

Inventory : (Raw Material, Work In Process, Finished goods)

Raw material like chicken, vegetables, etc are supplied from the local market of Pune like Reliance, More, Venky’s, etc all these are maintained on weakly bases and work in process items and finished goods are maintained on daily bases and are stored in PC outlet only.

Sourcing : (Outsourcing)

PC has not outsourced any of its processes to any other company; all the operations and processes are managed by PC Head Office (Pakistan) Karachi and other by individual PC outlet itself.

Inventory Cycle:

Type of review followed by PC:

PC follows a periodic review method for all its process like inventory maintenance except the ingredients supplied by PC Karachi which is maintained on monthly bases. Periodic review involves:

Monitoring at periodic intervals

Quantity set as the amount consumed during this interval.

Time between the orders is fixed.

CONCLUSION:

In overall study of Value chain analysis, it has been observed that PC in all over Pakistan follows a similar pattern of Supply chain that enables it to reduce time involved to reach end customers and reduce expenses in supply chain. Eventually it is able to reach and fulfill its end customers needs and wants at a reasonable or customer acceptable rates all over Pakistan.

In short I can say the Value chain analysis of PC has a positive impact on profit maximization by considering following points:

PC (HQ) Karachi supplies ingredients to all its outlet by its own transportation network all over Pakistan

PC has no logistics partners they are self sufficient and efficient to all logistic operation involved in reaching the customers.

PC follows a periodic review system to keep track on all its inventory and market demand.

P-5: Demonstrate ability to think strategically

Strategic thinking as a development of learning and you turn thoughts into reality by developing one’s ability in team work, problem solving, as well as critical thinking. One should see it as a tool to help a business or else organization tackle change, sketch for and make transitions, and foresee new possibilities moreover opportunities. Strategic decision maker ought to be flexible, be a powerful decision maker on their own, and manage good relation ships in the company of co-workers. For example, when groups with similar wellbeing create strategic alliances, they are much more liable to achieve their goals and so on followers may also be sympathetic insiders. A good aspirant should be aware of these concepts, a sympathetic senior bureaucrat in the right organization who understands a project can also grant the most help out. Finding such a person and encouragement that relationship shows plan.

A clear defining of the goals as well as objectives of the movement; classification of opponents; shipping out a SWOT analysis; imagining and in performance scenarios; identifying primary in addition to secondary targets; identifying allies; deciding what possessions are required (salaries, expenses, other); devising strategy; drawing up an action program.

Strategic thinking and SWOT Analysis: It is easier to create better and more valuable choices after identifying strengths, weaknesses, opportunities, moreover threats. A SWOT analysis can be practical to a situation, a suggestion, an individual, or an organization and is critical for good decision-making.

Strategic thinking and Organization: Organization, Observation, Views (the environmental view, the marketplace view, the project view, and also the measurement view), Driving forces, and ideal position. The candidate’s ability to define his/her ideal spot in clear, strategic terms is plus.

P-6: Prepare and strategic plan for given organization

Strategy developing process

Strategy plus strategic planning should include taking a positive approach that evaluates all activities based on how well the activity moves the business toward its core goals. Strategy is itself a direction of an organization which achieves advantages for the organization throughout it resources within a challenging environment to meet the needs of the market and to fulfill the expectations of their stake holders and the market as well.

Strategy is along term short term and intermediate terms. And for achieving the goals but it’s clear that when organization is focusing on their future so the usage of it could be along term. It’s clear that strategy is future oriented. Strategic management process that comprises three phase: strategic planning and diagnosis, formulation, and implementation. Strategic management is an ongoing process to develop and alter future oriented strategies that let an organization to achieve its objectives, bearing in mind its capabilities, restriction, and the environment in which it activate.

Strategic planning and diagnosis

The first step of our developing of strategic of any firm company should engage itself in strategic planning. Because plan is the first step to make a decision and to bring the future in present what ever firms want to achieve it in future can estimate it through planning. And planning is the first step for achievement of strategic there fore planning indicates to organization direction or path for achieving its goals and objectives. This then leads to strategy development covering the following issues discussed in more detail below:

Vision

It’s described and shows that future intended position of a firm. And it shows that what firm want to achieve and it is primary objective of Strategy Bridge.

Mission

Show the purpose and existence reason of firm and forward looking visionary goal that help and guide the pursuit of future opportunities.

Core value

It shows core beliefs are view points that are shared among the stake holders of an organization. It drives from firm culture and its top priorities.

Objectives

Its another specific step that organization and it is process of planning of that organization made what firm want to achieve and objective of firm should be specific measurable, achievable, and realistic and timed.

Goals

It’s a statement which indicates what organization wants to achieve in future and it a high level accomplishment the different between goals and objective that goals is for long terms while objective are for short term.

The second step or process of strategy organization analysis performing situation and study the market and their current position in the market and all the environment factors which could be internal analysis of firm and external. Specifically, strategies are plans for accomplishment objectives and goals. The center goal is the most important long term target planned for the firms and objectives are short term steps in moving the business on the way to that destination. All activities or tactics should hold up an objective and all objectives should support the goal. This step of strategic planning insures that actions for which the business spends its resources all contribute to goal as well as objective but strategic planning involves much more than this so in this stage business identifies and evaluates existing mission strategic objectives strategies along with plus strength and weakness of organization which is analysis and examines and organization own performance and capabilities.

Furthermore, external

The internal analysis of firm can identify by strength weakness of firm and BCG matrix model while the environment analysis assesses the macroeconomic economic growth interest rate and currency movement which are identify through PEST analysis and Michael five factors. Similarly clarifies other critical issues in this regard organization make plan and set its future goal and for achieving it set a strategies.

Formulation

To define for the organization how can best complete and to define where and how the organization will compete furthermore ensure that changes in strategy are linked to changes in the planning and execution process. Clarify the boundaries of permissible change. Similarly, define where to compete differentiators how to compete make a strategy map financial model and strategic change agenda. This stage has three aspects of strategy involve. Make strategy for corporate level business level and functional level strategy.

Implementation

It is an exaction step being paid it done step is and this is very significant step because strategy fails due to not appropriately implemented. This sounds easy or else obvious but in practice can be extremely difficult. When implementing the strategy, it is obviously advantageous to stay aware remaining flexible to changes in the surroundings. Engaging people at an expressive level with the strategy is essential to make sure that the strategies succeed.

Strategy Evolution

The finishing stage in strategic management is strategy evaluation along with control. All strategies are focus to future oriented for the reason that internal and external forces are regularly changing. Here the strategy assessment furthermore control process organization verify whether the chosen strategy is achieving the organization purpose. The primary strategy evaluation and control activities are; reviewing internal along with external forces that are the bases for present strategies measuring performance moreover if any deviations seem it taking corrective actions. The process of strategy evaluation includes of three activities:

Review the basic forces on which strategy was formulated and examine that does there is any change in those forces.

compare the actual performance with budget performance (standard performance)

Take corrective action according to requirements or correction of deviations:

Strategy at different levels of business strategies exist at several levels in any organization raging from the overall business through individual working in it.

P-7: Evaluate possible alternative strategies (Deliberate and Emergent Strategies)

Emergent strategies arise from a number of ad hoc choices, perhaps made lower down the hierarchy, which they may not initially be recognized as being of strategic importance.

Emergent strategies develop out of patterns of behaviors in contrast, to planned or deliberate strategies which are imposed from above the hierarchy.

(Source Business strategy course book page 138)

Intended strategies are those aspects of plans which are actually realized are called deliberate strategies. While emergent strategies are those which develop out of pattern of behaviors. The task of strategic management is to control and shape these emergent strategies as they develop.

PC’s management had explicitly planed market diversification strategy in order to increase their market share and profits by introducing new products along with some other facilities but due to recent terrorists attack, inflation, and poor security conditions of Pakistan have made their customers reluctant to visit hotels and restaurants which ultimately struck PC plan so before choosing strategy for PC we should evaluate their strategy.

Suitability

The strategy of market expansion is not suitable for PC at this stage in other words; it does not satisfy the goals of PC and cannot maintain their competitive advantages because of the poor security condition of Pakistan.

Feasibility

Their strategy cannot be implemented in inflation and in this unstable situation because this strategy requires huge investments and in this type of situation customers will not want to visit hotels and restaurants.

Acceptability to stakeholder

In current situation they will not meet their stakeholders’ expectations i.e. high return on investments, growth, high cash flow and market capitalization.

Therefore PC should select any other strategy for those emerging patterns. Ansoff growth vector matrix can help PC in choosing the best alternative strategy for the current situation. Ansoff matrix can be seen below:

ANSOFF MATRIX

EXISTING PRODUCTS

NEW PRODUCTS

EXISTING MARKETS

MARKET PENETRATION

Leading market share

Strong presence in European market

PRODUCT DEVELOPMENT

Specific location oriented packages

Low cost packages

NEW MARKETS

MARKET DEVELOPMENT

Concentrating on Russia, India and China

Could make their presence in road transportation

DIVERSIFICATION

(Source: Adapted from Ansoff (1988) as cited in Johnson et al. (2005)

The strategies along with their advantages and disadvantages are discussed below:

Market penetration strategy: –

In this strategy PC can increase their sales by sitting competitive prices, advertising and sales promotion in their current market.

ADVANTAGES: –

PC can secure dominance of growth markets.

It will help them in driving out their competitors.

DISADVANTAGES: –

Current uncertainties can affect this strategy because keeping all eggs in one box is not without risks.

Setting lower prices, sales promotion can lower their profit for a time being.

Product development strategy

It is the launch of new products (innovation) to existing market. It will give the following advantages to PC:

ADVANTAGES: –

It will force their competitors to innovate.

New comers will not stand up against PC for competition.

DISADVANTAGES: –

The drawbacks include the expense and risks.

Diversification strategy

Diversification occurs when an organization decides to make new products for new markets. Some are related diversification and some are unrelated diversification. So PC can do related diversification like they can open a wedding hall which also provides food items in weddings.

ADVATAGE: -It offers greater prospects for their growth

DISADVANTAGE: -It is high risk strategy as well, having many characteristics of new business start ups.

P-8: Select an appropriate future strategy for a given organization

Future strategy: “defines the future course of actions, including those that specify resources required in future and how to achieve an overall objective in the future

(Source: Glossary of course book (strategies) page 309)

New strategy for PC

The strategy should be according to the current condition of Pearl Continental Hotel, the strategy is about the Buffet of Pearl Continental Hotel that how they can improve their sales through this strategy, and how they achieve their goals by this particular strategy, so following steps are making this strategy complete whether its gain profitable for PC or not. Every organization does marketing mix for the successful marketing operation.

Products

This includes the physical product or service that your company is offering to the customers, where Pearl continental hotel provide foods to their customers in the form of buffet, where customers can enjoy the different varieties of foods in large quantity, and they can choose among varieties of foods for the evening time, Pearl continental hotel should in the control of services that what are we serving to the customers, are we serving effective foods to them or not. The food should be tasty and delicious, foods names are, chowmein, fried rice, egg rice, fry chicken, chicken Qoarma, chicken palao, French fries, yellow rice, while in the category of BAR.B.Q, roast chicken, small meat, seekh kabab, Reeta, chicken boti, different cooking of small meat, and Sweet corner should be awesome, different sort