-1Marketing Plan for Rex Hotel 1.

INTRODUCTION Rex hotel is a luxury hotel heritage was originally opened as a French garage. For over 80 years, the building was upgraded into an international 5-star hotel in 2008. With its traditional charm, wide range of international standard services and 289 well furnished rooms. The luxury new innovation design to preserve the historic integrity of Rex hotel while introducing sophisticated post modern architecture. Rex hotel is really venue for international VIPs and entrepreneur. 2. SITUATION ANALYSIS 2.1. Executive Summary Rex hotel is a member of Saigontourist Holding Company, a state owner company. It located in heart of Hochiminh City. The Rex is one of a few 5-star hotels managed by local company in Vietnam. In 2011, Rex is grade in 3rd in MICE and business hotel in Hochiminh City, as a result of marketing strategy focusing on MICE and business market segment from 2006. Target business segment include government entity, FDI and local company and non-profit and education organization. While Vietnams government is attracting FDI (Foreign Direct Investment) and meeting, trade fair will be organized more frequently in recent year. The Unique Sales Point of Rex is a 5-star hotel historic Vietnamese Style in Hochiminh, which have all best choice for MICE: Brand-name, heart location, easy accessible, well facilities, good service and traditional Vietnamese style. These factors contribute our plan to maintain 3rd position of MICE & business hotel in Hochiminh by increasing 10% - 15% revenue of MICE in 2012. 2.2. Situation Analysis The Rex hotel is member of Unit: 1000 USD 2011 % 15.30 18.31 23.98 22.47 19.94 100.00 Amount % 6.411 5.849 7.241 6.846 6.175 32.522 19.71 17.98 22.26 21.05 18.99 100.00 , a choice

Description Rex Majestic Sheraton Caravelle NewWorld Total

2008 Amount 3.075 3.162 5.489 5.127 4.758 21.611 % 14.23 14.63 25.40 23.72 22.02 100.00

2009 Amount 3.518 3.429 6.345 5.843 5.175 24.310 % 14.47 14.11 26.10 24.04 21.29 100.00

2010 Amount 4.384 5.248 6.872 6.438 5.713 28.655

-22.3. Market Needs

Major markets of MICE are large corporation, local and foreign company, association, event organizer or government and non-government sector. Specially, MICE customers they are belong to high position in social with high demand on service quality, using wide range of services in house and neighbor location. MICE market is not clearly seasonally market and MICE service usually booked in 3-6 months before event opening. So hotel could However, MICE demand hotel locate in central location (usually in big city / famous city)

So they major And MICE are one of best way to combine all of our services, facilities with high ROI. When government has any meeting / conference in Hochiminh City, Rex Hotel is always the 1st choice of them because we are stated-owner company with convenient location, good facilities and service, especially in security issue. We provide a luxury, relaxed environment with Vietnamese style for those who want to explore culture of Vietnam. 2.4. 2.5. The Market Market Trend

MICE market in period of 2006 2011 is increase According to Tourism Association of Hochiminh City and our S&M Department foresee is MICE market will increase rapidly for the next 5 years. 2.6. Macro-environment

3. THE REX HOTEL 2.1. Mission 2.2. Service Offering 2.3. SWOT summary 2.3.1. Strength - Located in heart of Hochiminh City - Conference hall with 2.000 seats - 3rd MICE hotel in Hochiminh City - Well trained staffs - Good relationship with Government - Famous brand in Vietnam as Your Vietnam home 2.3.2. Weakness

-3- Renovation from old one so hotel facilities are not so well - Cost management not so well give bad impact to competitive and ROI - Ability to change is less than competitor 2.3.3. Opportunities - Return growth after slow down - Positive impact from Brand Development of Saigontourist Holding Company - FDI attraction program from Vietnam and Hochiminh City Committee. - SECC (Saigon Exhibition & Convention Center) belongs to Saigontourist Holding Company 2.3.4. Threats - Economic are turning down - Competition environment increase by attending of Nikko Hotel Saigon (5 star) in 2012. 2.4. Historical Results Description Total Turnover MICE & business % Total turnover 2008 36.321 3.075 8.47% 2009 40.128 3.518 8.77% Unit: 1000 USD 2010 2011 44.550 4.384 9.84% 63.897 6.411 10.03%

2.5. Competition analysis Direct competitor In central location of Hochiminh City, we have list out 5 hotels have got strategy focus on MICE services. - Hotel Majestic Saigon: 5-star hotel, - Sheraton Saigon Hotel: 5-star hotel, 470 rooms - Caravelle Saigon Hotel: 5-star hotel, 355 rooms - NewWorld Saigon Hotel: 5-star hotel, 533 rooms - Legend Saigon Hotel: 5-star hotel, 283 rooms A Competition Analysis which are handled by our Sales and Marketing Department. And methodology is collecting information from competitor and give out customer survey on these factors: Rex Majestic Sheraton Caravelle NewWorld Legend Cost Location and access Quality of F&B Technical requirement The size of conference

-4Configuration of rooms Total ranking 4. MARKETING PROGRAM 3.1. Objective 3.1.1. Financial Objective - Increase 10% of revenue in MICE service - accomplish goal with marketing budget of 10.000 USD 3.1.2. Marketing Objective - Short term: Maintain 3nd position and get closer to 2nd ones - Long term: be the 1st MICE hotel in Hochiminh City 3.1.3. Target Market Objective Strategy to Focus on Domestic market - Location: Ho Chi Minh and Ha Noi - Type of Business: + Non-profit organization + Government entity + FDI and local company + Education organization - Type of Service: + Conference and meeting + Short training program + Event - Volume: 3.2. Marketing Strategy 3.2.1. Product - Conference: well conference facilities: audio and visual equipment, tables, chair, decoration. - F&B: special menu with Vietnamese cuisines - Event: incorporate with professional event organizer - Package: design menu 3.2.2. Pricing - Price strategy behind the leader: keep price 2%-4% lower the 2nd (Caravelle Hotel) - Flexible price in case of low occupancy by get free of services, gift voucher and other than price decrease. 3.2.3. Promotion 3.2.3.1. Advertising - Keep doing advertising on business magazines, travel magazines and MICE - Bill board in SECC - Tourism fair

-53.2.3.2. Direct marketing Direct marketing handle by our Sales and Marketing Department - Keep in touch and take care of existing customer. - Collect / buy customer list in target segment, then send information for marketing. 3.2.3.3. Third party marketing, managing referrals - Do marketing by doing well every single event and take advantage of the worth of mouth from customer and intended guest. - Keep reference from Google, Yahoo. - Member of MICE Association in Vietnam and Asia. 3.2.3.4. Promotional Package Incorporate with event organizer, travel agent, and shopping mall nearby to design promotional package for MICE with sightseeing and shopping voucher. 3.2.4. Place - Direct sales by Sales and Marketing Department - Sales through Tour Agent, Event Organizer

5. IMPLEMENTATION SCHEDULE 5.1. Advertising 5.1.1. Advertising No. Items 1 2 3 4 The Saigon Times Weekly The Heritage Quarterly The Vietnam Economy Weekly Bill board in SECC

Star month 01/12 01/12 01/12 01/12

End Manager month 12/12 Mr Dat 12/12 Mr Dat 12/12 Mr Dat 12/12 Mr Dat

Department S&M S&M S&M S&M

5.1.2. Direct marketing No. Items 1 2 3 4 Customer Care Program Collecting list of potential customers Preparing letter, brochure Sending MICE package program to potential customer

Star End Manager month month 01/12 12/12 Mr Duc 06/11 08/11 Mr Quan 08/11 09/11 09/11 09/12 Mr Dat Mr Quan

Department S&M S&M S&M S&M

-65.1.3. Third party marketing No. Items Star month 1 Updating promotion 01/12 package, facilities to website weekly 2 Keeping referral from 01/12 Google, Yahoo 3 Membership of MICE 01/12 Association in Asia and Vietnam 5.1.4. Promotion Package No. Items 1 Updating promotion package, facilities to website weekly Keeping referral from Google, Yahoo Membership of MICE Association in Asia and Vietnam

End Manager month 12/12 Mr Dat

Department S&M

12/12 12/12

Mr Dat Mr Dat

S&M S&M

Star End Manager month month 01/12 12/12 Mr Dat

Department S&M

2 3

01/12 01/12

12/12 12/12

Mr Dat Mr Dat

S&M S&M

5.2.

Budget 5.2.1. Advertising Star date

End date

Budget

Manager

Department

5.2.2. Direct marketing 5.2.3. Third party marketing

5.2.4. Promotion Package 5.3. Sales Plan

-75.4. Result measurements

5.5. Requirements for success - GDP of Vietnams in 2012 grow not less than 5% - Global economic not return in crisis again - General manager agree with marketing budget of 10.000USD 6. CONCLUSION

-8REFERNCE 1. Adele Ladkin, Conference tourism MICE market and business tourism, pp. 60