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Assignment On
Tourism and Hospitality Management

Submitted to,
Miss Nusrat Jahan Lecturer and course instructor Department of Tourism and Hospitality Management Faculty of Business Studies University of Dhaka

Submitted by,

Mizanur Rahman ID No. 009

Department of Tourism and Hospitality Management Faculty of Business Studies University of Dhaka Date: July 02, 2011 Department of Tourism and Hospitality Management Faculty of Business Studies University of Dhaka

Topic
Marketing Plan For Tourism Business
The Aristocrat Riverview Hotel

Letter of Transmittal

July 02, 2011 Miss Nusrat Jahan Lecture Department of Tourism and Hospitality Management Faculty of Business Studies University of Dhaka.

Subject: Submitting the term paper on Marketing Plan of a hotel.

Dear Madam, With due respect, I am very glad to submit you the term paper on Tourism and Hospitality Management that you assigned to prepare. In this term paper I have made the marketing plan of a new Hotel according to your direction. I have worked my best to make the term paper a good one within given time with necessary notes, remarks, and references. I would be gratified if this term paper serves its purpose. I hope that this term paper will meet your requirement. I would be glad to furnish any further clarification in this regard, if needed. Sincerely yours, Mizanur Rahman ID no. 009 Department of Tourism and Hospitality Management Faculty of Business Studies University of Dhaka.

Acknowledgement
I would like to state my appreciation to all who helped me to complete this term paper. I am deeply grateful to my course instructor, Miss Nusrat Jahan, Lecturer, Department of Tourism and Hospitality Management, Faculty of Business Studies, University of Dhaka, whose helpful suggestions and encouragement helped me in preparing this term paper.

My fellow classmates supported me in every possible way. I would like to thank them for all their support.

Table of Contents

SL NO.
1 2 3 4 5 6

Contents

Page no.

Executive summery Mission Situation analysis Market need The market Market Demographics

1 1 2 3 3 4

Market Trends

Market Growth

Environmental impact on market

10

Marketing Mix

11

SWOT

ANALYSIS

11

12

COMPETITION

13

13

MARKETING

PLANS AND STRATEGIES

14

14

FINANCIALS ISSUES

18

15

Break-even analysis

17

EXECUTIVE SUMMARY
The Aristocrat Riverview Hotel is the representative of The Aristocrats Properties ltd. It will be located near the Padma River in Rajshahi. The Aristocrat properties ltd is renowned for their convenient and strategic locations within major cities throughout the country. Also synonymous with the brand are the high level of personal service guests receive, and the extensive range of comprehensive business facilities available in luxurious settings. The Aristocrat Riverview Hotel Rajshahi will be composed of 35 exclusive rooms and will target corporate guests with a two to three night stay requirement. Target business segments include the IT sector, and corporate sector of different country. Differentiating the type of business service offered, from that of the competition, will assist not only in building the Aristocrat brand as a whole, but will attract frequent business travelers, who require a higher level of personal service and recognition than they can receive from other.

MISSION
The Aristocrat Riverview Hotel will be dedicated to providing its guests with the highest quality of service and standards. We seek to deliver on our promise of value and quality above all else. We value our place in the community and will work to develop those relationships and to respect and protect our environment. We will continue to strive to create value for both owners and shareholders whilst honoring our brand values and encouraging our personnel to develop themselves in an environment of trust, loyalty and encouragement.

SITUATION ANALYSIS

The Aristocrat properties ltd is one of the largest groups in Bangladesh. The group owned about many important properties in the country and manages them. Now it is moving its capital to the hotel properties, and begins with The Aristocrat Riverview Hotel in Rajshahi. The Aristocrat Riverview Hotel will be dependent on annually contracted clients from the travel trade, investors with guaranteed room nights per year. The current market is somewhat depressed, due to the economic downturn and restrictions being made on corporate travel within the other part of the country. There are other important reasons for not growing the development. Among them, the GAS problem and transportation problem is the important two. But as the government promise to provide the gas in Rajshahi, the investors is coming and investing in different sector. Competitive room rates are much more compared with the service they provide. The Aristocrat Riverview Hotel is projected to be manageable and convenient in price with the service.

Market Needs

The Aristocrat Riverview Hotel will offer value and benefits to our clients, over and above the standard of our facilities and affordable rates. We seek to provide our guests with an exemplary personal service, and level of recognition that they have come to rely upon. We will provide our guest with a luxurious, relaxed environment within which to conduct their business. We wish to provide an environment which they cannot find at our larger, more impersonal competitors. Our guests need to know that they can develop a relationship with the hotel that will ensure efficiency, value for their money and reliability in supplying them with the support they need, when they need it. The Aristocrat Riverview Hotel will operate in a city with a very strong sense of community, and we want to stay an integral part of that community.

The Market

The Aristocrat Riverview Hotel is a boutique 3*+ hotel comprising 35 luxury guest rooms and specializing in servicing business and corporate clients. It will serve the business community, and visiting business traveller, in the Rajshahi city, Bangladesh. Our key clients will contract corporate clients originating from both international and domestic markets from within the travel trade, automotive and IT segments, RMG investors and investors of textile sectors. The strategic location of the property is the key to its success in these areas due to the proximity of availability of gas and transport system. Key to our business success is the level of customer loyalty and repeat business we are expected to receive on an annual basis. We will offer our guests the most up-to-date technical business facilities, both inside the rooms and within the hotel's conference facilities. Our guests will feel that they can conduct their business from within a less austere atmosphere than can be experienced in our competitive properties, where there is less personal recognition. They appreciate being called by name when they arrive, and having staff remember their specific requirements, time and again. This is the key in developing the relationship beyond an initial stay and evidences our added value in relation to competitive properties in the vicinity.

Market Demographics

Market Geographic: Rajshahi is one of the most potential are in Bangladesh for investment with a population of 1 million. Market Demographics: The community is made up predominantly of households having two to four children, either at home or away from home, with at least one parent/guardian having attended

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college. Most of the families lead a comfortable lifestyle which is important for investment.

Market Psychographics: There is a strong 'small business' ethic in the community, and many family-run enterprises have been prospering for generations. There is also a strong sense of community and a high level of awareness as regards to caring for the environment. Market Behaviors: Businesses in the area choose to support one another wherever possible, be remaining loyal to long standing relationships with customers and suppliers. This acts as a means of investing in, and supporting the community structure, rather than shifting alliances to large 'newcomer' suppliers, despite the potential cost savings involved. This attitude will supports the brand principles of The Aristocrat Riverview Hotel, which is going to start in the community, and will be supported by local business requirements for rooms, conference facilities and catering business functions.

Market Trends

Market trends can be categorized as follows: Corporate Travel Policies, Local Business Trends, and Economic Cut Backs.

Corporate Travel Policies: Corporate Travel Policies: Local Business Trends: Local Business Trends: Economic Cut Backs: Economic Cut Backs:

Corporate Travel Policies: As a result of various security issues, as regards travelling in both domestic and international markets, there has been a significant drop in corporate guests visiting the

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city. Although the level of corporate hotel business appears to be increasing, it is expected that the hotel will impose a significant effect on the market for the future.

Local Business Trends: There has been a period of low activity in the area of conferencing and business catering with local companies electing to conduct meetings and seminars on their own premises in order to cost cut. This is changing however as group bookings, incoming visitors and day use of conference facilities is on the increase. Economic Cut Backs: Many types of exhibition start happening in the city. Corporate personnel from all over the world In March 2010, a team from japan visited the city with the help of LGED department. They are willing to expand the facilities of the city by investing here. That is the potential for the hotel.

Market Growth

The growth rate of the target markets is being speedy with the development of different facilities like gas, transportation and communication. The travel trade sector is also growing with the other sector. People from other area are coming here for enjoying the seasonal fruit mango, and site seeing. In last few years the market was slow for political instability and lack of transportation and other facilities. That caused a reduction in the growth rate, but current trends indicate a return to projected growth figures within the next three to six months. Once restabilized, growth is anticipated to continue at a steady pace in line with the expansions in the region investment.

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Environmental impact on market

Microenvironment The external, environmental issues that may affect The Aristocrat Riverview Hotel are:

Political: a stable environment where little affects our ability to generate revenue. Economic: the recent recession has seen many smaller business-oriented hotel chains go into liquidation, as they do not possess the infrastructure to support under-performing properties as the larger chains do. Although recovery is beginning, it may take some time before corporate travel policy restrictions are fully lifted and business travel returns to the same levels of the past three years. Social: the trend towards cost effective business travel leads hotel guests to seek more value for money, which is where our added value differentiation strategy comes into play. Technological: the installation of on board' room reservations systems on certain aircraft will require a systems integration with the hotel group's own central reservation system. This will require a high level of investment.

Marketing Mix

Marketing mix for the hotel will include the 7Ps of marketing mix.

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These are,

Product The hotel high-

(services)

will provide quality facilities accompanied by exemplary personal service, differentiated from competition; in line with the overall brand strategy has proven to be a successful approach generating high levels of repeat business. Price The pricing strategy has been consistent with the differentiation objective, to provide added value for a reasonable rate as opposed to discounting and devaluing our products and services. Place Hotels service information is provided to the guest via personal selling, direct marketing, advertising and the Internet. Delivery channels include travel agents and international reservations systems. Promotion The primary focus has been on mass communication via print ads in trade publications and on the Internet, direct mail campaigns to existing and prospective

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clients and personal selling in the local market. Personal selling provides the means to develop relationships within the local community and generate high levels of corporate activity through the business community. Public relations plays an important role in the marketing mix, presenting the hotel as a supportive member of the community and participating in significant local events to assist in developing ongoing cooperation, assures repeat business and good working relationships.

People People refer to the customers, employees, management and everybody else involved in a company. It is essential for everyone to realize that the reputation of the brand that a company involved with is in the people's hands. The Aristocrat Riverview Hotel Recruits the high quality staff and trains them appropriately in the delivery of their service which is essential. Consumers make judgments and deliver perceptions of the service based on the employees they interact with. Staffs have the appropriate interpersonal skills, aptitude and service knowledge to provide the service that consumers are paying for. Process It refers to the methods and process of providing a service and is hence essential to have a thorough knowledge on whether the services are helpful to the customers, if they are provided in time, if the customers are informed in hand about the services and many such things. The Aristocrat Riverview Hotel will arrange many training program for providing proper knowledge of process.

Physical evidence It refers to the experience of using a product or service. When a service goes out to the customer, it is essential that company helps him see what he is buying or not. The Aristocrat Riverview hotel will give special attention for physical evidence.

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SWOT

ANALYSIS

The following analysis highlights the internal strengths and weaknesses of our organization and the opportunities and threats facing the company in our external environment. Organizational strengths must be leveraged in order to capitalize on external opportunities as they arise, and contingency plans formulated in order to deal with threats presented by the environment. These are given below,

Strengths Strategy: hotels differentiation strategy.

Structure: flat, decentralized structure.

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Skills: diverse range of service skills within management and staff. Style: strong, participative culture. Staff: specialized and experienced staff that is motivated and highly skilled. A well trained team who are proud of their hotel and respect and promote the brand values. Shared Values: clear and well communicated. Brand Strength: brand values well represented engendering brand loyalty amongst existing and new guests. Reputation: a strong reputation in Bangladesh and world.

Weaknesses Strategy: differentiation strategy is based on the whole market of Bangladesh. It should focus on the local market.

Systems: formal systems result from the detail oriented work and environment. Interdepartmental communications could be improved. Staff: seasonal turnover requires ongoing training and orientation of new staff. Facilities: certain rooms require more space and more facilities that are not planned.

Opportunities Market: returning growth after a period of slump.

Competitors: no direct competition exists at present, in terms of the three star 'boutique business property' niche. Suppliers: strong, long-term relationships established with suppliers. Guest Dependency: repeat corporate business based on personal service and quality, in a small but luxurious environment.

Threats

Market Entry: potential for a competitive, global brand to enter the market with a similar product. Substitutes: fully furnished and serviced business apartments will offer lower daily rates.

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Economy: recovery from slight recession may take time. Competitors: growing hotels in market.

COMPETITION
Although no direct competition exists, in terms of the three stars plus boutique-style property, other hotels and serviced apartments do compete for the same corporate business sectors.

Direct Competition

Hotel Dalas: most old and famous hotel in city. Offer moderate level of services. Hotel Mukta Itl: situated near the bus terminal and station.

Dolphin hotel: another famous hotel in city, offer low price services.

These properties offer similar facilities, although somewhat less focused on business needs, and incorporate more leisure facilities than we currently provide. Indirect Competition The Aristocrat Riverview Hotels indirect competition is "distance" meetings in the corporate world. The more companies decide to conduct meeting over the phone, using web conferencing technology, and video phone technology, the less business people travel and the more it affects The Aristocrat Riverview Hotel.

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MARKETING PLANS AND STRATEGIES

Our marketing strategy's objective will be the unique set of services that we will offer to discern hotel guests. We attempt to direct the focus of our guests to the issues of quality and value for the money as opposed to simply the bottom line costs associated with their stay. Our marketing strategy will allow us to communicate our brand values, develop close working relationships with our customers and suppliers and to identify the needs of our guests in an effective manner. Continued differentiation and growth are two goals we have set for ourselves. Growth will take place by targeting new areas of business within both local and national communities.

Positioning The Aristocrat Riverview Hotel will positioned as a 3 star plus, business traveler's hotel, strategically located and offering a high level of personal service. Our focus will be on offering our guests added value and differentiating ourselves in our levels of personal service. We provide a quality hotel experience where guests are valued, respected and their business is truly appreciated. Value Proposition The Aristocrat Riverview Hotel will offer the best, most personalized service for the corporate traveler. We will include business essentials in every room, such as a nice desk, internet connection, wireless access, and provide easy to access meeting rooms with all audio-visual and technology needs as well as catering for longer meetings. Critical Issues We have much strength including our differentiation strategy, our flat structure and highly skilled and well trained staff. Our weaknesses involve the need to communicate our strategy more clearly in the external environment, our high staff turnover and training requirements due to seasonal fluctuations. Although there is a low to medium threat of a competitive brand entering the market, there are also opportunities as regards the high level of dependency of our guests for our

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particular service and our strong position within the community with both customers and suppliers. Marketing Objectives To continue to communicate our strategic objectives to our target markets effectively. To provide a positive hotel experience to all our guests. To accomplish our growth targets within the given time and budget. To expand our markets and identify new markets for our product and services.

Target Market Strategy Our primary targets continue to be professional visitors to the region from the following industries, where annual corporate contracts can be entered into: Travel trade; IT industry;

RMG investors

Planners and Developers from abroad. Local firms will be targeted for day use of conference facilities, room nights for visiting executives and long stay professional guests. Messaging It is critical to the success of the The Aristocrat Riverview Hotel to make sure that the hotel is kept up to the highest level in order to keep the high quality branding that The Aristocrat Riverview Hotel properties are known for. Our messaging will reflect this high standard that we want to be associated with. We need to print brochures with high quality photographs as well as on high quality paper. It will be important to spend a little bit extra on marketing materials to ensure that they keep our "high quality" message in front of our customers. Branding The Aristocrat Riverview Hotel is representative of the three star brands within the 'Exclusive Business Hotels of the World' group. All Riverview Hotels are boutique properties, offering between 25 and 35 exclusive rooms. The Aristocrat Riverview Hotel is renowned for their convenient and strategic locations within major cities throughout the country. Also synonymous with the brand are the high

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level of personal service guests receive, and the extensive range of comprehensive business facilities available in luxurious settings. Strategy Pyramids Our marketing strategy is to focus customers' attention on the high quality of the services we offer. Within this strategy are three main points aimed at different market segments. We will provide: The Best Business facilities Personalized Services Luxurious Amenities

FINANCIALS ISSUES

Our annual marketing budget is tk.10, 00,000. Sales are anticipated to achieve revenue of tk.1,17,29,250. Our marketing expenses will equate to approximately 8.5% of the overall revenue. Break-even Analysis 1,00,000 50000 0 (50000) (100000) (150000) (200000)

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Our financial estimation will be,

Fixed Costs Tk Cost Rent or Lease Professional Services Payroll Interest Payments Utilities & Telephone Non-discretionary marketing expenses Other Total Fixed Costs Break-even Analysis tk Monthly Units Break-even Monthly Revenue Break-even 1450 199290 0 10000 100000 20000 50000 0 0 180000

Assumptions: Average Per-Unit Revenue Average Per-Unit Variable Cost Estimated Monthly Fixed Cost 1370.140 130.280 18000

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Sales Forecast Room revenue for open year will be on an average growth rate of 10%. This is based on the number of pre-contracted corporate rooms, and an anticipated return to business levels projected. tk 1400000 1200000 1000000 800000 600000 400000 200000 0

Unit Sales

FY 11(projected)

Corporate Single

2,118

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Corporate Double Corporate Deluxe Corporate Suite Total Unit Sales Unit Prices

4,032 2,965 294 9,408 FY 11(projected)

tk Corporate Single Corporate Double Corporate Deluxe Corporate Suite 990.00 1350.00 1950.00 2400.00

Sales

FY 11(projected Tk

Corporate Single Corporate Double Corporate Deluxe Corporate Suite Total Sales

2096330 5442530 5781750 705600 14026200

Besides these, we will forecast the contribution margin.

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CONTROLS
Our marketing plan is structured to enable us to achieve the strategic goals we have set for ourselves, in terms of increasing overall revenue as a result of differentiating our products and services from the competition. Our marketing team will ensure that the plan is implemented to the best of their ability and with the highest levels of efficiency and accuracy. Implementation All figures will be monitored on an ongoing basis in relation to projections versus actuals, and the ongoing plan will be altered or manipulated as necessary in order to react to and, wherever possible, anticipate external changes to the environment. Annual results will be evaluated at the Region General Manager's meeting where the structure of the plan for the approaching year will also be established. Keys to Success Continue to develop ongoing relationships with frequent and new guests. Continue to develop and implement a strong communications plan in both national and international markets. Leverage our strength in the local market as a member of the community by supporting local events. Identify new markets for our services such as University-based target groups. Continue ongoing staff training and skill development to ensure the highest standards of service.

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Contingency Planning Contingency plans have been made for the following unexpected developments: A slower recovery from the recession than public opinion: this has been reflected in the moderate increase in levels of corporate business expected. The entry into the market of a competitively aligned hotel: differentiation would continue to be the strategic approach with the development of added value and benefits to leverage long standing relationships and repeat business based on familiarity and personal attention to detail. Marketing Organization Our marketing director will leads our PR and marketing team of four in all advertising, promotional and public relations related activities. MD will work closely with the members of the team, to implement and monitor the effectiveness of the marketing plan and evaluate results.

CONCLUSION
The Aristocrat Riverview Hotel is expected to launce with a target to capture the market. As the city is being developed, the investors are showing their interest, that is blessed for the hospitality industry, and the The Aristocrat Riverview Hotel will include the new dimension in the market and will help the city develop its present situation. It is expected that the hotel will also get its profit from the market. So we are entering the market in short time.

Reference

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Travel and Tourism Management by Douglas Foster Book on hospitality management, provided by teacher www.google.com www.wikipedia.com www.ask.com www.banglapedia.com www.scribd.com E-book on Hospitality management Class lecture, provided by teacher