The manor house country club hotel in Singapore represents of Jenkins’s family own business. Pass decade MHCCH has seen a grade of an activities, establishment, development and value creation unsurpassed, reason been was it was in a great location that tourist would attract .time passed by it became a luxury comfort hotel.
This report is about to analyses the SWOT of the MHCCH and marketing plan to improve the hotel this discussion is further discussed in report.
TO:
Jenkins’s family the owner of manor house country club hotel
FROM:
(MHCCH) marketing consultants
As a marketing consultant of the company my duties are how to face the challenges and opportunities in macro and micro environment, The marketing environment includes social, technological ,economic and political variables (STEP), On the other hand ”some authors arrange the variables in a different order, namely political, economical, social and technological and they are then known as PEST” (Adcock, Halborg , Ross /2001/p,31), identify the company SWOT and evaluate importance of the various factors. When planning identify the right strategic key components such as designation, resources environment influence.
Furthermore investigate the customer needs and demand in hotel industry and improve the business accordingly. Customers are the gold key in a business ‘no customers no business exits’. If company give high quality customer service then can achieve many of the business objectives confronting all competitive hotel industry, which include;
Minimising customer turnover
Attracting new customers
Improving profitability
Improving company image
Improve the quality, value of customer and employee satisfaction. (Lancaster and Reynolds/2004/p.399).
Singapore hotel industry is very competitive in providing accommodation they are fulfilled in many ways in this ongoing environmental industry.
Mainly with this competitive market how to expand the business next 2 years in this rapidly changing environment. Use appropriate methods to achieve a target budget. After research analysis further information on practice of competition, customer behaviour and market segmentation as input to the company development of objectives and specific strategies.
What is market environment?
In an organisation we must understand its environment in order to accomplished changes in market condition and it target successfully, the essence of a successful market strategy.
Market environment must consider micro and macro environment.
Micro environment
This will impact directly on the industry and its activities, also internal aspect will influence the improvement of the market strategy.
The main key components are
Suppliers
Are the people that directly involving with the organisation. Eg : requirement agency , curtain suppliers , interior designers ,, in bar section licker delivers, napkins supplier . These are the people we are looking at and we must mark sure that are satisfied with our hotel service to them to keep them longer.
Distributors
The challenge of the distribution is how to market the hotel. Distributors will evaluate the price and past to the customers by on line , Thomas cook , last minute.com,
Customers
The customers are the key to the sales .in this industry the customers are the people who come on holiday, honeymoon,
Competitors
According to the competition in the market the success and behaviour judged. eg: if there is a 5star hotel close to the MHCCH then what will happened guest will attract that hotel.
What is macro environment?
This involves indirectly to the business .if we carefully monitor the macro environment that will help us to identify opportunities for the threats that way it will solve the problems quicker.
‘In analyzing the macro-environment, it is important to identify the factors that might in turn affect a number of vital variables that are likely to influence the organization’s supply and demand levels and its costs’ (Kotter and Schlesinger, 1991; Johnson and Scholes, 1993).
The main key components:
Economic
This analysis will identify such as changes in person useable income, the interest rate, and unemployment.
Eg: if more population is unemployed and income rate is low we can categorize the price according.
Political
This will identify the changes in the point of the politicians
Eg: export and import policies
Greener policies
Technological
Strictly to use of tools to modify thinks. Technology is very challenging in order to satisfy this rapidly changing environment therefore company should effectively research, plan, and market the right target.
Eg: in MHCC hotel we can modify by new salon equipments, modified t.v , new payment systems. These changes will attract the customers.
Legal
Legal also link to political environment, rules and regulations, court decisions also involves.
Eg: alcohol licensing (this is an advantage) includes time to close and open if you do not do accordingly you will change.
Ban on smoking in public area health and safety.
Minimum wages
Social /cultural
It is all about societies, beliefs, behaviours, values and norms, life styles .(old, young, middle aged life styles)
cultural food ,
Most tourist people like other country cultural, dress code.
Attitude towards global warming
Family structure
Demographic
It is the population growth according the age of the industry
Eg: what location hotel is and population? It is old, young or family oriented. From this information you can provide facilities (segmentation)
Importance of the environmental scanning
Keeping very close eye on what is happening in the generally in market field specially competitors more widely in macro environment
There are 3 main methods of scanning
Ad-hoc scanning – short term
Regular scanning – for example 1 year
Continuous scanning – which if there is an error much check regularly
In related to competitor’s intelligence we need more capacity of data in order to target our market.
Financial reports
Mutual customers and suppliers
Review of competitors goods
Finally former employees
Internal environment
When creating a market strategy we need to consider in involves 5 m’s this guide you how to market the item to the target buyers.5 m’s create a framework for advertising structure.
Marketing audits help an organisation to understand the internal environment.
How does 5m involve in this process:
Money = is the key of any organisation. Money generates a company. Money could be loans. As we can see that MHCC hotel shows that towards tourism the government is planning to spend $4 bill. This is a great advantage.
Man power = employees are the strong key of the company. If they are not satisfied the motivation will decrease. This dissatisfaction can be costly because if the highly trained staff and experienced leave the training cost will be vast.
Machinery = are the equipment in the company. Like MHCC hotel salon new and advance machines. Morden gargets could impress the gust.
Measurement =
How does SWOT involves in decision making
SWOT stands for strength, weakness, opportunities, threats. It is a piece of analysis on one page outlining where we are strong and weak and can excel or are vulnerable in our hotel industry .this example that can help it improve .
MHCCH SWOT analysis
Total strength = 24
Total weakness = 18
Total opportunity = -20
Total = 12
Conclusion
After analysing SWOT and point base system strength =+24, opportunities = -20, weakness = -18, threats= -12. From this fact we can identify that strength and opportunities are high than weakness and threats. Strength achieving its stated objectives, weakness blocks specific objectives. Over all we can consider that MHCCH is up market hotel. From the evidence it shows that it is a luxury hotel. Also MHCCH has the main key factor which is highly trained staff. Building a relationship with the customer is the main fact to encourage and attract guest to the hotel. According to data below it shows that non business guest and family guest are increasing where by corporative guests decreasing, this shows some where weakness has occurred therefore we need to research where went wrong, how? and provide necessary facilities to improve. Finally i would say that MHCC hotel.
(B)
What is marketing strategy?
Marketing strategies choose set of objectives and outline. It shows how to satisfy the customer need in our market. Marketing strategies help to grow, expand your business profitably.
Strategies of strategies
Development of the organisation mission report
Statement of objectives
Situational analysis
Strategy development
Specific planning
Implementation control
Strategies generate at few levels. Corporate strategy involves with the general development of am firm’s business activated, then marketing strategy concentrate on firm’s activities in individuals to it s market. Deliberate strategies are outcome of the company planning. Emergent strategies are generating that time as the outcome of the activities and action of the firm.
What does Ansoff’s Growth Matrix theory suggest?
In 1957 Ansoff’s invent market matrix .he suggest that growth strategy result support on whether to distribute a new product or existing product to the new market. Possible options are:
Marketing penetration
Marketing development
Product development
Diversification
According to the strategy option given
To sell – this option is related to diversification meaning sell the hotel and after selling invests that money on new product. This is very risky step to step in. In the point in MHCC hotel it is very profitable in the market therefore it is not necessary to sell.
Do nothing – this option is related to market penetration. It involves selling more existing product, in the existing market. Well the hotel has improved past decade. what we can consider in order to attract consumers from competitors is increasing promotional activities, increasing sales opportunities
eg: Quick payment methods, buy one drink and other one half price
Expand by investing – this is related to marketing development. Expand the hotel into a new market with existing product eg: segmentation rooms. Swimming pools for children, adult and disable people.
Expand by external – this option is related to product development. Introduce new version into hotel eg: new t.v in bar section, new equipment to salon. This will attract new and existing consumers’.
How to expand the business in 2 years by using 7p’s
Product = 1st year , types of rooms life packages for honeymoon couples, and old people disable people.
2nd year , Introduce swimming pools for adult and children. Update the treatment in salon frequently.
Price =
1st year, monitor the competitors pricing give a best pricing. Every customer is concern the price due to credit crunch.
2nd year, consider organisation’s cost production.
Place = is very important key in a business.
2nd year Location customers would like closer to the attraction places hotels therefore we can start building another MHCC hotel in another location
Promotion = is key of attracting customers there for 1st year we can offer discount like buy one drink get the other one half price likewise.
People =both years constantly auditing personnel performance and behaviour. Improve more staff training.
Physical evidence = it is an important cure for the intangibility of the product, informing the customer about the product. More advertisements.
Process = is the way of how achieve the target.
Michael porter’s theory
Porter’s theory says that profit depend upon the types of strategy in use. He argues that the strategy adopted by a firm is important method for inventing and sustaining a profitable position in a particular market environment.
He identify five competitive forces which determinate the set of competitors in a industry and which jointly determine the income potential of the industry as a whole.
Five force features:
Demanding power of supplier
Main factors are the important of the supplier’s product. eg: if the customer demand rises suppliers demand rise because of the quality control. Supplier’s product has differentiated. Switching cost is high.
Demand power of the consumers
The product quality is important to the customer. If the suppliers switch the price of the goods will increase therefore the customer demand to the same value.
Barriers to entry :
Product differentiation, scale of economics, capital requirements due these fact it is difficult to enter the competitive market.
The threats of alternative products
If another hotel industry produces same type of product fewer prices than MHCC hotel this would affect us as customers will attract alternatives.
Competition in the industry
The level of competitive rivalry within the hotel industry will affect the company profit. The main that affects are pricing competition, advertising battles, and sales promotion campaigns.
What are the generic strategies?
Cost leadership this controls the market being low price in their product
Differentiation when creating a product it should be highly valued by the customer. Customer loyalty which prevent firm from the competitive market.
Focus aiming to sell particularly attractive or suitable segments.
Further more information about STP
STP stands for segmentation, targeting, positioning.
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