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Course/Cohort: ADBS 4/10 Module: Marketing Management Code: MKGP3001V1KK13 Assignment: Practical Assignment (Group project) Project outline: Each group shall select a firm of their choice to conduct a marketing analysis of the company, and identify at least 3 strategic marketing issues that the company currently faces. The group is to investigate on the problems and recommend solutions. In the report, students should clearly communicate to the senior management of the company their objectives, findings, analysis and recommendations.
Their suggested solutions must be original. Title: M Hotel Singapore Marketing Analysis Student name (s): 1. Chia Sian Jin, Calvin (S7833656J) 2. Shue Baozhu (S8527920C) 3. Tan Geok Kuan, Angeline (S7832602F) 4. Tay Soo Lyn, Jaclyn (S8116273E) 5. Teresa Tham Hui Zhen (S8317355F) 6. Zhang Hui Juan (S8337256G) Date of submission: 12 July 2011 Lecturer: Dr Shawn Wong (Number of words not including Cover page and Executive Summary: 1974) M Hotel Singapore Marketing Analysis
Executive Summary The M Hotel is part of the Millennium & Copthorne Hotels PLC, which operates hotels under four main brands – Grand Millennium (five star properties), Millennium (four star deluxe and five star properties), Copthorne (midscale properties) and Kingsgate (principally located in New Zealand with properties in all major cities). In order for M Hotel to keep up with our competitors in the market and our counterparts around the world, it must take an active approach to develop suitable marketing strategies to continue building long term relationship with our customers and creating value for our partners.
This report outlines the Market Department’s to identify three strategic marketing issues that the hotel faces and to implement innovations to address them. According to a recent report by the Singapore Tourism Board (Nurhidayati, 2011), the International Visitor Arrivals reached 3. 12 million (+15. 7%) in Q1 2011. Gazetted hotel revenue for Q1 2011 was estimated at S$478 million (+9. 8%). This is a significant rebound from the global economic backdrop in 2009. It is therefore, important for M Hotel to gain traction on the market share and position ourselves strategically to maintain our footprint in the hotel industry.
Group Members: Calvin Chia Sian Jin, Shue Baozhu, Angeline Tan Geok Kuan, Jaclyn Tay Soo Lyn, Teresa Tham Hui Zhen, Zhang Hui Juan Page 1 of 17 M Hotel Singapore Marketing Analysis Table of Contents i. ii 1. 2. Executive Summary …………………………………………………………………………………………………. 1 Table of Contents ……………………………………………………………………………………………………. 2 Brief Corporate Profile ……………………………………………………………………………………………… Strategic Marketing Issues ………………………………………………………………………………………… 4 2. 2 2. 2 2. 3 3. Issue 1: Drop in Occupancy Rates during Weekends ……………………………………………. 4 Issue 2: Competition from other Business Hotels ………………………………………………….. 4 Issue 3: Decline in Corporate Functions and Wedding Banquets Bookings ………………. 4 Environmental Analysis …………………………………………………………………………………………….. 5 3. 1 3. 2 3. Competition ……………………………………………………………………………………………………. 5 Industry and/or Market …………………………………………………………………………………….. 5 SWOT (Table) ………………………………………………………………………………………………… 6 4. Proposed Marketing Objectives …………………………………………………………………………………. 7 4. 1 4. 2 Primary Objective ……………………………………………………………………………………………. Secondary Objective ………………………………………………………………………………………… 7 5. Marketing Mix Strategies ………………………………………………………………………………………….. 8 5. 1 5. 2 5. 3 5. 4 Product ………………………………………………………………………………………………………….. 8 Price ……………………………………………………………………………………………………………… Place …………………………………………………………………………………………………………… 10 Promotion …………………………………………………………………………………………………….. 10 6. Marketing Plan ………………………………………………………………………………………………………. 11 6. 1 6. 2 6. 3 6. 4 Product ………………………………………………………………………………………………………… 1 Price ……………………………………………………………………………………………………………. 11 Place …………………………………………………………………………………………………………… 12 Promotion ………………………………………………………………….. ………………………………… 13 7. 8. 9. 10. Budgets (Table) …………………………………………………………………………………………………….. 4 Evaluation and Control …………………………………………………………………………………………… 15 Conclusion …………………………………………………………………………………………………………… 16 Reference List ………………………………………………………………………………………………………. 17 Group Members: Calvin Chia Sian Jin, Shue Baozhu, Angeline Tan Geok Kuan, Jaclyn Tay Soo Lyn, Teresa Tham Hui Zhen, Zhang Hui Juan Page 2 of 17 M Hotel Singapore Marketing Analysis M Hotel Singapore 1.
Brief Corporate Profile Millennium & Copthorne Hotels PLC, a dynamic, global hotel company, which owns, asset manages and/or operates over 100 hotels worldwide. In Singapore, the group consists of Copthorne King’s Hotel, Grand Copthorne Waterfront Hotel, Orchard Hotel, Studio M Hotel and M Hotel. M Hotel is a four-star traveler’s business hotel strategically located in the heart of the central financial district (CBD) and close to the festivities of the city including Marina and Orchard Road. It offers impeccable facilities and standards of service to international business and leisure travelers and has been awarded he Best Deluxe Hotel by Hospitality Asia 2009 – 2011, Singapore Series. Group Members: Calvin Chia Sian Jin, Shue Baozhu, Angeline Tan Geok Kuan, Jaclyn Tay Soo Lyn, Teresa Tham Hui Zhen, Zhang Hui Juan Page 3 of 17 M Hotel Singapore Marketing Analysis 2. 2. 1 Strategic Marketing Issues Issue 1: Drop in Occupancy Rates during Weekends M Hotel has always been known as a business hotel more than a vacation hotel due to its strategic location in the CBD, which explains the drop in occupancy rates during weekends as highlighted by the Reservations department.
We need to have a proper mix in our branding so we can also attract local families who are looking for a “staycation” during weekends and for travelers who are here on vacation. 2. 2 Issue 2: Competition from other Business Hotels Since the first major events such as IMF, Youth Olympic and Formula One, Singapore is becoming more popular globally for corporate events. With that, we also witnessed a significant increase in the number of new hotels, creating fierce competition in the business hotel market. 2. 3 Issue 3: Decline in Corporate Functions and Wedding Banquets Bookings
With increased competition, we also witnessed a 5. 2% decline year-on-year in corporate event and wedding banquet bookings accordingly to the statistics provided by the Sales and Marketing department. We need to innovate new ways to communicate our strategic objectives to our target markets effectively, in line with the Millennium & Copthorne Hotels’ guidelines and vision. Group Members: Calvin Chia Sian Jin, Shue Baozhu, Angeline Tan Geok Kuan, Jaclyn Tay Soo Lyn, Teresa Tham Hui Zhen, Zhang Hui Juan Page 4 of 17 M Hotel Singapore Marketing Analysis 3. 3. 1 Environmental Analysis Competition
There are many 4-star hotels less than 10 minutes away, offering similar prices and services, i. e. Amara Hotel, Raffles the Plaza, Peninsula hotel, Pan-Pacific, Marina Mandarin and Mandarin Oriental, etc. There is also an increase in the number of uniquely designed boutique hotels offering very competitive services and prices such as The Scarlet, Hotel Re! and Hotel 1929. 3. 2 Industry and/or Market From 2008 to 2009, hotels in Singapore are generally feeling the pinch of recession with occupancy down and room rates falling with the decrease in visitor arrivals due to the economic downturn and restrictions being made on corporate travels.
However, as we embark into 2010 and 2011, indications of a return to business travel are observed as we see the strengthening of business and consumer sentiments across Singapore. According to the chief economist of the International Air Transport Association (IATA), “Business travel demand is holding up better than price-sensitive leisure travel in a sign of business confidence and a recovery in world trade. ” (Hepher and Gopalakrishnan, 2011) Group Members: Calvin Chia Sian Jin, Shue Baozhu, Angeline Tan Geok Kuan, Jaclyn Tay Soo Lyn, Teresa Tham Hui Zhen, Zhang Hui Juan
Page 5 of 17 M Hotel Singapore Marketing Analysis 3. 3 SWOT (Table) Group Members: Calvin Chia Sian Jin, Shue Baozhu, Angeline Tan Geok Kuan, Jaclyn Tay Soo Lyn, Teresa Tham Hui Zhen, Zhang Hui Juan Page 6 of 17 M Hotel Singapore Marketing Analysis 4. 4. 1 ? Proposed Marketing Objectives Primary Objective To increase the occupancy rates over the weekend and to increase the corporate contracted rates to reflect the return of confidence in the corporate travel market. ? Increase overall room revenue, conference rooms and wedding banquets bookings by 10% year-on-year average. . 2 ? Secondary Objective To continue to communicate our strategic objectives to our target markets effectively, in line with the Millennium & Copthorne Hotels’ guidelines and objectives. ? To provide a positive hotel experience to all our guests and aim to be the best traveler’s hotel in the area. Group Members: Calvin Chia Sian Jin, Shue Baozhu, Angeline Tan Geok Kuan, Jaclyn Tay Soo Lyn, Teresa Tham Hui Zhen, Zhang Hui Juan Page 7 of 17 M Hotel Singapore Marketing Analysis 5. 5. 1 ?
Marketing Mix Strategies Product M Hotel has 413 guestrooms designed with a comfortable rest area and practical workstation complete with modern technological amenities. It also has 40 furnished office suites complete with a discerning selection of modern facilities which include: ? Modern meeting rooms with teleconference facilities and complete secretarial support ? Comprehensive and flexible virtual offices with individual mail boxes ? Wired and wireless broadband Internet access / Digital telephone sets ? The Product Mix table below shows the range and types of services that M Hotel provides.
We will be looking into how we can enhance our products to target a specific market to increase our weekend bookings. Source: Concept adapted from Kotler, P and Keller, K L (2009). Chp. 12, Setting Product Strategy. [Powerpoint slides] Group Members: Calvin Chia Sian Jin, Shue Baozhu, Angeline Tan Geok Kuan, Jaclyn Tay Soo Lyn, Teresa Tham Hui Zhen, Zhang Hui Juan Page 8 of 17 M Hotel Singapore Marketing Analysis 5. 2 Price Pricing strategy has been implemented in line with the objectives to achieve overall sales increase.
This is only a guide and the prices may vary with more services incorporated. Group Members: Calvin Chia Sian Jin, Shue Baozhu, Angeline Tan Geok Kuan, Jaclyn Tay Soo Lyn, Teresa Tham Hui Zhen, Zhang Hui Juan Page 9 of 17 M Hotel Singapore Marketing Analysis 5. 3 Place Apart from walk-in customers, we must create awareness for our products and services by different mediums in order to distinguish ourselves among our competition. The following ideas were discussed and proposed: ? Travel and wedding websites. ? Travel agencies and international reservations systems. Travel magazines. ? Social Media websites. 5. 4 ? Promotion Marketing department has decided to participate in more trade shows and wedding fairs to create visibility. ? As proposed by Corporate Sales department, we can also increase our weekend traffic by organizing more private events i. e. luxury goods sales, book fair, bazaar and even enrichment classes for children during weekends. Group Members: Calvin Chia Sian Jin, Shue Baozhu, Angeline Tan Geok Kuan, Jaclyn Tay Soo Lyn, Teresa Tham Hui Zhen, Zhang Hui Juan Page 10 of 17 M Hotel Singapore Marketing Analysis 6. 6. Action Plan Product To address the issue on low weekend occupancy, we can take a Market Specialization approach to target family since “staycation” is gaining popularity among Singaporeans. By making the hotel more children friendly during weekends, families will consider our hotel as a short getaway over the weekend away from the bustling distractions along Orchard Road. Source: Concept adapted from Kotler, P and Keller, KL (2009; Figure 8. 4, p. 269) 6. 2 Price As a 4-star hotel, we cannot lower our rates to benchmark against the boutique hotels or the lower range lodges.
However, we can create more value by offering better deals so customers would feel that they are getting better returns. ? Complimentary breakfast and car park for guests staying two nights and above. ? Free internet service throughout the guest’s stay. ? Offer free car park for dining guests spending above SGD100. Group Members: Calvin Chia Sian Jin, Shue Baozhu, Angeline Tan Geok Kuan, Jaclyn Tay Soo Lyn, Teresa Tham Hui Zhen, Zhang Hui Juan Page 11 of 17 M Hotel Singapore Marketing Analysis 6. 3 ?
Place In this current technology era, the internet becomes unarguably the next best place to showcase our services in order to position ourselves above our competition. We have to ensure our information is always updated in the hotel website along with other related service websites such as AsiaRooms. com, Agoda. com, chm-hotels. com and Asiatravel. com. Our IT department has also been tasked to do the following: ? To create and maintain a fan page for Facebook. ? To be indexed on wedding websites such as Singaporebrides. com so we can create more visibility by outlining the services we provide. Marketing Department will also be contacting the following hotel, travel and in-flight magazines to advertise our services for the next two years. ? Hotel Asia Pacific ? DestinAsian ? In-flight magazines for SIA (SilverKris), SilkAir (Silk Winds), Jetstar Asia (Jetaway) and Tiger Airways (Tiger Tales). Group Members: Calvin Chia Sian Jin, Shue Baozhu, Angeline Tan Geok Kuan, Jaclyn Tay Soo Lyn, Teresa Tham Hui Zhen, Zhang Hui Juan Page 12 of 17 M Hotel Singapore Marketing Analysis 6. 4 ? Promotion Customer Contact – Whenever a new customer stays at our hotel we need to be able to determine if the stay is for leisure or business.
Especially for business, we need to retain the customers’ business contact so that we can send a corporate package to their company informing them about our corporate pricing and business amenities. ? Brochures – Our marketing team will come up with two different types of brochures specifically a theme for business and the other for corporate events and wedding banquets. ? Business – Direct mails will be sent to existing and prospective clients (all the major companies/banks around the CDB area) as part of targeted advertising. Wedding – Our sales and marketing team will be liaising with major bridal shops, wedding planners to discuss the possibilities of including our hotel package as part of the whole wedding package, making it a “One-Stop” venue for couples who prefer hassle free arrangements. ? Participation in trade shows and wedding fairs: ? ITB Asia – The Trade Show for the Asian Travel Market at Suntec Exhibition & Convention Centre from 19 to 21 Oct 2011. ? Food and Hotel Asia 2012 at the Singapore Expo from 17 to 20 Apr 2012. ? Bridal Road Show at Suntec Exhibition & Convention Centre from 10 to 12 June 2011. Wedding Couture & Banquet 2011 at Marina Square Level 2 from 14 to 17 July 2011. Group Members: Calvin Chia Sian Jin, Shue Baozhu, Angeline Tan Geok Kuan, Jaclyn Tay Soo Lyn, Teresa Tham Hui Zhen, Zhang Hui Juan Page 13 of 17 M Hotel Singapore Marketing Analysis 7. Budgets (Table) Most companies tend to under spend on their marketing budgets, not realizing the importance of advertising and developing the brand of the business. Marketing is also not simply what we spend on advertising but should also include how we intend to develop the brand of our hotel.
All these elements cost money, which is why a well thought out budget is essential to keep an eye on our costs. The marketing team has come up with the budget table below in line with our tailored marketing plan aimed at fulfilling our hotel’s goals. Implementation Market Specialisation: Free bed and breakfast for children Include children’s menu in Cafe 2000 Promote children party booking via internet Product Sales: Complimentary breakfast and car park for guests staying two nights and above Free internet service throughout the guest’s stay Offer free car park for dining guests spending above SGD100 Featuring in websites: Indexed on www.
SingaporeBrides. com Featuring in magazines: Hotel Asia Pacific DestinAsian SIA (SilverKris) SilkAir (Silk Winds) Jetstar Asia (Jetaway) Tiger Airways (Tiger Tales) Brochures design: (500 copies each) Corporate events and Wedding banquets Business Travellers Participation in trade shows and wedding fairs: ITB Asia – The Trade Show for the Asian Travel Market Food and Hotel Asia 2012 Bridal Road Show at Suntec Exhibition & Convention Centre Wedding Couture & Banquet 2011 Total Cost *Business Cost is the unaccounted cost bore by the company. *True Cost is the actual cost required for advertising and promotion purpose. Business Cost* $75 per room – True Cost** Remarks $2,000 – One-time IT Project $40 per guest $30 per room $5 per car $450 Annually $3,500 $2,000 $2,000 $2,000 $2,000 $2,000 Bi-annual Bi-annual Bi-annual Bi-annual Bi-annual Bi-annual $1,000 $1,000 $12,500 $8,500 $9,500 $11,500 One-time One-time One-time One-time $59,950 Group Members: Calvin Chia Sian Jin, Shue Baozhu, Angeline Tan Geok Kuan, Jaclyn Tay Soo Lyn, Teresa Tham Hui Zhen, Zhang Hui Juan
Page 14 of 17 M Hotel Singapore Marketing Analysis 8. ? Evaluation and Control The Director of Sales, General Manager and the Marketing Team will host a meeting on 20 August 2011 to discuss the ideas and development for the marketing plan for 2012/13. ? The above implementations are expected to commence in September 2011. The ongoing plan will be monitored and altered as and when necessary in order to achieve our objectives.
A review will be done by the end of December 2011 to check if we are achieving our targets as planned or if we should implement a contingency plan. The annual result review will be done in December 2011 where we will also discuss the plans for the following year. ? Sales and Expenses Forecast will be provided by the Finance department in a separate report. Group Members: Calvin Chia Sian Jin, Shue Baozhu, Angeline Tan Geok Kuan, Jaclyn Tay Soo Lyn, Teresa Tham Hui Zhen, Zhang Hui Juan Page 15 of 17