Shangri-La Hotel and Resort Marketing Plan
Name
Institution
Table of Contents
TOC o “1-3” h z u 1.Introduction PAGEREF _Toc44514676 h 32.PESTLE Analysis PAGEREF _Toc44514677 h 32.1.Political factors PAGEREF _Toc44514678 h 32.2.Economic Factors. PAGEREF _Toc44514679 h 42.3.Social Factors. PAGEREF _Toc44514680 h 42.4.Technological Factors. PAGEREF _Toc44514681 h 42.5.Ecological Factors. PAGEREF _Toc44514682 h 52.6.Legal Factors. PAGEREF _Toc44514683 h 53.SWOT Analysis PAGEREF _Toc44514684 h 54.Marketing Objectives PAGEREF _Toc44514685 h 64.1.Improve Sales. PAGEREF _Toc44514686 h 74.2.Reduce Costs. PAGEREF _Toc44514687 h 75.Marketing Strategy PAGEREF _Toc44514688 h 85.1.Ansoff Matrix Theory PAGEREF _Toc44514689 h 85.2.Porters Generic Competitive Strategies PAGEREF _Toc44514690 h 106.Marketing Programs PAGEREF _Toc44514691 h 116.1.Promotion PAGEREF _Toc44514692 h 116.2.Product PAGEREF _Toc44514693 h 116.3.Pricing PAGEREF _Toc44514694 h 117.Conclusion PAGEREF _Toc44514695 h 12References PAGEREF _Toc44514696 h 13
Shangri-La Hotel and Resort Marketing Plan
IntroductionShangri-La Hotels and Resorts is a luxurious hotel chain that offers various services such as a business center for conferences and business services such as meeting rooms and secretarial services. It majors in the provision of services and hospitality and targets families and travelers. It was established in 1971 in Hong kong. According to the company’s financial report 2019, the hotel made a profit of $ 152.5 million (Annual Report 2019- Shangri- La Asia Group, 2019). The performance of the hotel is based on its marketing plan that allows an increase in consumer base leading to more sales. A marketing plan describes the activities of a company involving awareness of products, intending to convert the target consumers into customers. It requires analysis of the external environment of a company using PESTLE, SWOT analysis, and consideration of the marketing objectives and strategies to develop the action that leads to the achievement of goals. A marketing plan helps in the promotion of services and products to meet the requirements and needs of the target market.
PESTLE AnalysisPestle analysis is a tool used by companies to track the external environment to identify the effects that the environment would have on its operations (Kolios & Read, 2013). Shangri-La Company is operating in the United Kingdom. The pestle analysis covers the political, economic, social, technological, environmental, and legal factors affecting the business.
Political factorsPolitical stability in Hong Kong and Singapore provide a conducive environment for continuity of business operations. The hospitality industry depends on the movement of people who visit the hotel for accommodation and food products. The political stability and existing peace enhance the mobility of people. Also, BREXIT rules led to the growth of new markets, which increased competition in the industry. Shangri La company had to find new ways to have a competitive advantage.
Economic Factors.
There have been unfavorable global interest rates affecting various countries and in the UK. The high rates have led to a lack of capital for expansion purposes, hence stagnating the company development. On the other hand, the UK has experienced decreasing inflation rates, which has stabilized prices, thus attracting more consumers to the business. This is because they can forecast prices in the future.
Social Factors.
Purchasing power parity in the UK because of the differentiated disposable income is a challenge for the hotel. The number of sales cannot be easily forecasted as customers visiting the hotel change overtime. The changing consumer preferences also affect the hotel; thus, the company has to change services and environment based on consumer changes.
Technological Factors.
With technological advancement, social networking has increased in the hospitality industry. Consumers are highly applying social media; hence the company changes its marketing to using social networks (Verma & Verma, 2017). Also, the emergence of big data has led the hotel to develop systems that enhance customer service.
Ecological Factors.
The environmental regulations in Asia, including control of pollution act that controls air, noise, and water pollution, as well as controlling waste management and emissions, impact the company’s operations. The regulations have facilitated the provision of a friendly and clean hotel environment, which encourages more consumers. Besides, healthy food supplies provided in Singapore ensures food safety measures for consumers.
Legal Factors.
The presence of global International trade laws has enabled Shangri-La hotel to market globally and also serve customers from all over the world. This has increased its consumer base. The health and safety laws address the protection of employees and consumers, which companies have to adhere to before operating. Shangri- La protects its consumers by providing safe and healthy products and ensures the environment is safe for work.
SWOT AnalysisSWOT analysis is the evaluation of the strengths, weaknesses, threats, and opportunities of a firm. It examines competition and the impacts it is likely to bring to the firm (Gurel, 2017).
STRENGTHS WEAKNESSES
Shangri- La has a well-established brand (Bhasin, 2019)
Provision of quality service due to well-trained employees and the presence of conference and meeting rooms for businesses. The high cost of maintenance of the hotel, to keep it up to standards and in training its employees to provide quality services.
The hotel is expanding to many other parts of the world hence incurring more infrastructure costs in developing the chain.
OPPORTUNITIES THREATS
Technological Expansion will increase the hotel’s operations.
Increasing customer relations due to digital advancement can improve the performance of the company.
Shangri-La Hotel has a high recognition of several awards achieved(Annual Report 2019- Shangri- La Asia Group, 2019. The increased competition in the hospitality industry, such as Hyatt Hotels and Hilton worldwide, threatens the hotel’s existence(Hing et al., 1998).
The existence of unfavorable increasing global interest rates affects the firm (Negro et al., 2018).
Shangri-La Hotel and Resort can use its strength of established brand and quality service to attract more consumers into the company. Also, with the opportunities, the hotel increases its use of technological tools to improve its customer relations and ensure loyalty is achieved. These strengths and opportunities can be used to reduce the impact of the threats by attracting more consumers using its brand hence having an added advantage over competitors. Close monitoring of the costs of the hotel would reduce the high maintenance standards of the company. The hotel can achieve this by ensuring a low cost and high profits.
Marketing ObjectivesStrategic marketing is based on the development of plans that meet specific marketing objectives of a company (Lam et al., 2015). On the other hand, the marketing objectives are based on the capabilities of a firm. It integrates the internal environment, the strengths, and weaknesses, with the external environment, the opportunities, and threats.
Improve Sales.
The first Shangri- La Hotel marketing objective is to increase sales by a minimum of 6% by December 2021. The goal fits with SMART criteria since it is specific by mentioning the sales factor to be improved. It is also measurable as it indicates the actual value of sales increase. It is also achievable based on the strengths of the hotel. The recognized brand name and the services the hotel is offering can easily attract consumers to get services from the hotel. With well developed and objective marketing, the goal is realistic for the firm and also specific on time to achieve it.
To increase sales, the hotel needs to segment its consumers to provide successful goods and services for each of the segments (Karakaya et al., 2011). Also, applying the right promotion tools and prices will reach a large target market, and more consumers will be attracted, consequently increasing sales, which leads to the accomplishment of objectives. Also, providing products and services that are satisfactory to the consumers ensures that they become loyal to the brand, which then increases the sales made as they keep purchasing from the company.
Reduce Costs.
The second objective is to reduce the cost of the company by a minimum of 5% by July 2021. High costs suppress the strengths of the company as competitors can easily offer services at lower prices than that of Shangri- La Hotel. The objective is specific and can be measured within a specified period. Operating at a high cost is a risk for the hotel as competitors can take advantage to ensure lower costs hence providing affordable prices, thus attracting more customers. The objective is attainable considering the expenses used in training, which can be reduced by ensuring employees are retained.
The hotel can also achieve cost reduction by taking advantage of the opportunities they have. These include using digital platforms for marketing, which reduces the cost of transport to various places and also reaches a broad consumer base. Besides, with the high recognition attained through received awards, the marketing team can use it to increase the conversion rate by convincing consumers on the quality and perceived satisfaction. Also, considering the decision making processes of the hotel, innovations, and new product development, as well as the service quality strategies, will help reduce cost by implementing essential activities first.
Marketing StrategyA market strategy specifies the target market of a firm and the marketing mix variables that should be put together to satisfy the needs of a customer segment (Jain, 1999). Shangri- La Hotel and Resort could achieve its marketing objectives through the Ansoff matrix, porters competitive advantage and Segmentation, targeting, and positioning strategies.
Ansoff Matrix TheoryThe Ansoff matrix is a technique used for planning and decision making on the growth of products or market extension (Hussain et al., 2013). It applies four market growth strategies, including market penetration, development, product development, and diversification.
2295525347345PRODUCTS
0PRODUCTS
1247775104775Existing
0Existing
4324349104775New
00New
147956139065Existing
0Existing
1181100276224Market Penetration
-Premium Pricing strategy encourages new consumers
0Market Penetration
-Premium Pricing strategy encourages new consumers
3400425276225Product Development
Product Development
288607597790
-564991169704MARKETS
00MARKETS
933450432753
3267075170815Diversification
-Moved to New markets outside Singapore.
-Provide New services for businesses
0Diversification
-Moved to New markets outside Singapore.
-Provide New services for businesses
1095375342265Market Development
Market Development
114618131128New
00New
Market Penetration strategy can be applied through the implementation of product portfolios that encourage consumers to purchase the product. This may be package pricing and discount on a quantity of purchase. Product development can be achieved by getting feedback from consumers on ways to increase satisfaction. Market development allows entering into new markets through the analysis of market demand. Lastly, diversification is introducing new products to new markets. Diversifying to new markets would increase the target market, hence increasing sales. The Ansoff strategy would work to achieve the 6% increase in sales by December 2021.
Porters Generic Competitive StrategiesWith the increase of competition in the hospitality industry, Shangri- La hotel needs to either differentiate its products and services or have a low cost of production. In the SWOT analysis, one of the threats of the company is high competition; hence the company requires an added advantage over the competitors. This is possible through the porter’s generic competitive strategy.
2371725-285750Competitive Advantage
00Competitive Advantage
4010025133350Differentiation
0Differentiation
2171700133350Lower Cost
Lower Cost
36766501936741809750193675
533401118745Broad Target
0Broad Target
21717009525Cost Leadership
Cost Leadership
39433509525Differentiation
Differentiation
-485775335280Competitive Scope
00Competitive Scope
2171700819785Cost Focus
Cost Focus
6381751086485Narrow Target
00Narrow Target
1809749708025
3943350273050Differentiation Focus
0Differentiation Focus
Cost leadership involves leading in terms of cost in the industry while charging the industry average prices for services (Islami et al., 2020). Even when the competitors are charging the same prices, the firm will have an advantage through having more profits due to low costs. Cost leadership can be achieved through ow cost base and efficient logistics.
Differentiation is possible through the application of technological and innovative products and services, delivering high-quality products and services, and communicating the benefits of the products and services to consumers through effective sales and marketing. Reduced costs reflect on the prices hence attracting consumers. It serves to achieve both marketing objectives and the reduction of the threats and weaknesses experienced in the market.
Marketing Programs PromotionThe marketing strategies will ensure that the marketing objectives are achieved efficiently. However, the achievement also needs to entail a program to reach the goals (Odoom, 2016). First, the company should broaden its advertising methods to apply digital techniques to achieve a broad target market. The advertising will encompass the use of websites, social media, search operation engines, media influencers, and email marketing. These techniques ensure that the hotel has made its target customers aware of their services and also increase the conversion rate.
ProductThe hotel should provide satisfactory products for each market segment by allowing feedback from consumers and listening to complaints made to the firm. The first program can be incorporated by designing the platforms in a way that allows the consumers to communicate to the firm by giving their opinions and views within the market segment. When the product is satisfactory, sales are likely to increase as consumers keep repurchasing the products and services. Product development, according to the requirements of consumers, increases satisfaction.
PricingAdjustments in the pricing of the products and services is a strategy to increase sales. The approach may involve programs such as the use of quantity discounts for specific services provided and rewards for loyal customers. The hospitality companies offer quantity discounts where customers purchase services for several days hence attracting the quantity discount. Also, since there are customers who are loyal to the firm, the marketing strategy may involve providing rewards for customers visiting the business at a specified time. This technique encourages consumers to purchase more hence leading to more sales, which facilitates the accomplishment of the 6% sales increase.
ConclusionShangri-La Hotel and Resort is a firm in the hospitality company offering services such as conferences and meeting rooms, as well as accommodation facilities. The firm is growing due to the external and internal factors in the environment in which it exists. In the Pestle analysis, the firm is supported by the political and technological condition that allows it to innovate and develop. It faces competition in the market; however, it can apply the strengths of having a recognized brand to gain an advantage over competitors. Also, taking advantage of the technological opportunities to suppress the weaknesses and threats leads to higher performance. The marketing objective of the firm focuses on increasing sales and reducing costs by the end of 2021. These goals can be achieved through the application of the porter’s competitive and Ansoff theories. Also, marketing programs on promotion, products, and pricing will work best in achieving the desired goals of the hotel.
ReferencesAnnual Report 2019- Shangri- La Asia Group. (2019). [Ebook]. Retrieved 1 July 2020, from.
Bhasin, H. (2019). Marketing mix of Shangri-la Hotels and Resorts. Marketing 91. Retrieved 1 July 2020, from.
GÜREL, E. (2017). SWOT ANALYSIS: A THEORETICAL REVIEW. Journal Of International Social Research, 10(51), 994-1006. https://doi.org/10.17719/jisr.2017.1832
Hashim, K., & Fadhil, N. (2017). Engaging with Customer Using Social Media Platform: A Case Study of Malaysia Hotels. Procedia Computer Science, 124, 4-11. https://doi.org/10.1016/j.procs.2017.12.123
Hing, N., McCabe, V., Lewis, P., & Leiper, N. (1998). Hospitality trends in the Asia‐Pacific: a discussion of five key sectors. International Journal Of Contemporary Hospitality Management, 10(7), 264-271. https://doi.org/10.1108/09596119810240852Hussain, S., Latif, A., Jamshed, J., & Rizwan, A. (2013). ANSOFF Matrix, Environment, and Growth- An Interactive Triangle. Management And Administrative Sciences Review, 2(2), 196-206. Retrieved 1 July 2020, from.
Islami, X., Mustafa, N., & Topuzovska Latkovikj, M. (2020). Linking Porter’s generic strategies to firm performance. Future Business Journal, 6(1). https://doi.org/10.1186/s43093-020-0009-1Jain, S. (1999). International marketing management. Digital Pub. Co.
Karakaya, Ç., Badur, B., & Aytekin, C. (2011). Analyzing the Effectiveness of Marketing Strategies in the Presence of Word of Mouth: Agent-Based Modeling Approach. Journal Of Marketing Research And Case Studies, 1-17. https://doi.org/10.5171/2011.421059Kolios, A., & Read, G. (2013). A Political, Economic, Social, Technology, Legal and Environmental (PESTLE) Approach for Risk Identification of the Tidal Industry in the United Kingdom. Energies, 6(10), 5023-5045. https://doi.org/10.3390/en6105023Lam, C., Ho, G., & Law, R. (2015). How can Asian hotel companies remain internationally competitive?. International Journal Of Contemporary Hospitality Management, 27(5), 827-852. https://doi.org/10.1108/ijchm-05-2013-0226Negro, M., Tambalotti, A., Giannone, D., & Giannoni, M. (2018). Global trends in interest rates. Vox. Retrieved 1 July 2020, from.
Odoom, R. (2016). Brand marketing programs and consumer loyalty – evidence from mobile phone users in an emerging market. Journal Of Product & Brand Management, 25(7), 651-662. https://doi.org/10.1108/jpbm-04-2016-1141Verma, D., & Verma, D. (2017). Social Media a Promotional Tool: Hotel Industry. JOURNAL OF ADVANCES IN HUMANITIES, 5(1), 221-223. https://doi.org/10.24297/jah.v5i1.6159
