Assignment - Project
The ARENA Hotel has 185 rooms in a magnificent scenic location within 10 minutes of the CBD. The current core niche market is the Monday - Friday business sector with 100% of the current year sales being single occupancy. A recent downturn in the economy, coupled with a dramatic reduction in business and consumer spending, has resulted in a 38% drop of the hotel's occupancy rate within two months for the current year.
In addition to the worsening national economic situation, a recent series of rolling airline air-line strikes caused the cancellation of 2 large conventions, each with 400 delegates. The organizations were not prepared to risk disruption to the travelling plans of the convention delegates, the majority of whom were from overseas. These conventions have not been rebooked with the hotel and instead are being rescheduled by the organisers, somewhere in Asia.
Part A:
Brainstorm contingency plans that management can implement in order to counteract the fall in revenue and occupancy rates, as well as attract new niche markets to the business.
Do this activity as if you were in an executive meeting and all ideas were being written on a whiteboard for consideration. In this sort of situation there is broad scope for discussion of unconventional ideas and solutions. Be creative and develop a list of ideas that could assist the marketing team to address these external pressures on the viability of the business.
The marketing company you have been dealing with is impressed with your initial research. They have not dealt with Hospitality a lot, so now they would also like you to establish the external factors that impinge on the new venture of the function centre offerings. They are unsure about the size of the local market and the strength of the industry. You mentioned to them that some other establishments are being built or are upgrading and this information needs to be collated to assist with the overall plan.
Your task: Write a brief report on external business information, including the following:
1. An analysis of the size of the local market and growth
- A SWOT analysis
- A description of the labour market background of the region
2. An analysis of the competition and their product offerings, including any
- constraints placed on the market
- All legal implications for the new development
Part B:
The marketing company contracted to develop the marketing plan has not been able to complete the Project on time as they received a large national contract. You, as the F&B Manager, were involved in the initial process of research, so your owners have asked you to finalise the plan.
Your task: Write the marketing plan, outlining the following key points:
- How the new function facilities will be marketed?
- How the marketing materials will be developed?
- The responsibilities of the stakeholders
- Available budget
- Timelines
- A feedback loop and final approval process for all stakeholders involved.
- The evaluation process and amendment processes after implementation.
The marketing plan should be presented as a standalone document reflecting the business. Consider that marketing plans may be needed as support for financial assistance applications with banks, or other business related matters. Also remember that they portray the professionalism of the organisation.
Part C:
The marketing company hired for ARENA Restaurant and Bar has requested that you, the F&B Manager at the property, become involved in the marketing plan for functions. The new marketing plan is to be used to extend market share in this lucrative segment. Your business is now able to offer more functions because a large room adjacent to the restaurant, with excellent views over the park, has become available.
Your task: As part of the research, the company wants you to collate and write down the following internal business information:
1. A description of the main business activities, clientele and business values and how they impact on the proposed marketing plan
2. A description of previous marketing activities, highlighting their advantages, disadvantages and overall effect on the business
3. A SWOT analysis of the business concerning functions and how the facilities, equipment and products affect potential outcomes
4. A description of any hindrances, service or product shortcomings that you are aware of, providing suggestions on how to address the issues
Part D:
In the original marketing plan, the weekend market was seen as a potential niche market for weddings, conventions and inbound tours. The current marketing plan has failed to deliver the expected weekend revenue. Using the attached financial data, prepare a marketing plan to address the current shortfall in occupancy and function revenue on weekends. The city where your 175 room ARENA Hotel is located is your choice.
Your task:
1. You will need to do a thorough external market analysis of this chosen location.
2. The marketing plan with clear communication on all priorities, responsibilities, timelines and budgets.
The marketing plan is to include in-depth analysis of the following aspects:
The internal business environment:
- Current core activities, customer base, business values and business direction
- Effectiveness of current and past marketing
- Performance information from all areas of the business to identify strengths, weaknesses, opportunities, threats and critical success factors
- Underperforming products and services with reasons for underperformance
The external business environment:
- Expected market growth or decline with associated risk factors
- Projected changes in the labour force, population and economic Activity
- Comparative market information which may include best practice information, benchmarking and competitor information
- Industry and customer trends, emerging issues and developments which may be:
- Economic, ecological, environmental, government activities, social and cultural, demographic, technological or industrial
- Legal, ethical and environmental constraints of the market and potential business impacts
Marketing strategies:
- Specific opportunities based on internal and external market analysis
- Marketing strategies that are consistent with direction, values and business plans of the organisation
Part E:
Given that all the ARENA Hotels weekend market was seen as a potential niche market for weddings, conventions and inbound tours. The current marketing plan has failed to deliver the expected weekend revenue. The city or town where your 185 room ARENA Hotel is located is your Choice. Use the attached financial data to produce a marketing report that evaluates the current situation.
Your task:
On the basis of this evaluation,
1. Propose marketing activities that could address the shortfalls in occupancy and function revenue on weekends.
2. Evaluate these suggestions and formulate how they can efficiently and cost effectively be implemented into the marketing plan.