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Riverview hotel marking planning

Executive Summary

The Riverview Hotel, Notown USA, is representative of the five star brand within the 'Exclusive
Business Hotels of the World' group. All Riverview Hotels are boutique properties, offering
between 25 and 35 exclusive rooms.
The Riverview properties are 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 Riverview Hotel, Notown has 35 exclusive rooms and is targeting corporate guests with a two
to three night stay requirement. Target business segments include the IT sector, due to the
proximity of the property to Silicone Hill, USA; the automotive industry in order to capitalize on
the strategic location of the hotel in relation to the Overall Motors Plant and HQ in Notown and
travel trade guests attending National and International Travel Fares at the Notown Exhibition
Halls.
Differentiating the type of business service offered, from that of the competition, will assist not
only in building the Riverview brand as a whole, but will attract frequent business travelers, who
require a higher level of personal service and recognition than they can receive at competitive five
star properties in Notown. This will provide the Riverview with an opportunity to leverage its core
competencies as regards servicing the business traveller in a luxurious environment.

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Situation Analysis

The 'Exclusive Business Hotels of the World' group is the ninth largest International Hotel chain in
the world, with over 320 wholly owned and managed properties. The group specializes in
occupying strategic, inner city locations and serving primarily corporate clients.
The properties range from three to five star plus categories, and include the following brands:
River Inns (3*), River Post Houses (4*), and Riverview Hotels (5*+). The group has a high
instance of repeat business across all its brands, particularly the Riverview Hotels properties,
which account for 68% of total revenue across the group.
The Riverview Hotel, Notown, is dependent on annually contracted clients from the travel trade,
automotive and IT sectors with guaranteed room nights per year. This area of business accounts
for 70% of the property's revenue.
The current market is somewhat depressed, due to the economic downturn and restrictions being
made on corporate travel within the U.S. This threat to the critical corporate sector could be
considered as short to medium term, as indications of a return to business travel are observed.
Riverview Hotel, Notown, must continue to focus on delivering an exemplary business service, at
affordable rates, in order to develop the customer relationship beyond one stay.
Competitive room rates have been cut dramatically in order to attract contract clients over the next
10-12 month period. The Riverview Hotel's survival in the current environment, will be dependent
on repeat corporate contract business and customer loyalty to the brand. The brand must therefore
continue to deliver on its promise and values.

Market Needs

The Riverview Hotel offers 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 provide our guest with a luxurious,
relaxed environment within which to conduct their business.
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 Riverview Hotel operates in a city with a very strong sense of community, and we want to
stay an integral part of that community.

The Market

The Riverview Hotel is a boutique 5*+ hotel comprising 35 luxury guest rooms and specializing
in servicing business and corporate clients. It serves the business community, and visiting business
traveller, in the city of Notown USA.
Our key clients are contracted corporate clients originating from both international and domestic
markets from within the travel trade, automotive and IT segments. The strategic location of the
property is key to its success in these areas due to the proximity of the Exhibition Halls, Overall
Motors and Silicone Hill, USA.
Key to our business success is the level of customer loyalty and repeat business we receive on an
annual basis. We offer our guests the most up-to-date technical business facilities, both inside the
rooms and within the hotel's conference facilities.
Our guests 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 key in developing the relationship beyond an initial stay and
evidences our added value in relation to competitive properties in the vicinity.
§
 §
Market Analysis
200 200 200 200 200
5 6 7 8 9
Potential Gro CA
Customers wth GR
Travel 7% 1,0 1,0 1,1 1,2 1,3 7.09
00 71 47 28 15 %
IT Industry 8% 1,2 1,2 1,4 1,5 1,6 8.01
00 96 00 12 33 %
Automotive 10% 1,5 1,6 1,7 1,9 2,1 9.51
00 43 99 70 57 %
Total 8.38 3,7 4,0 4,3 4,7 5,1 8.38
% 00 10 46 10 05 %

Market Demographics

Market Geographics: Notown, USA is a suburb of Seattle, Washington, with a population of

150,000.
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 college.
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 supports the brand principles of the Riverview Hotel, which has had a presence in the
city for 15 years, and is well supported by local business requirements for rooms, conference
facilities and catering business functions.
Based on research carried out in 2001, more than 68% of the population had some awareness of
the Riverview Hotel. Awareness levels were highest amongst small- to medium-sized businesses
with 20 or more employees, who had utilized the hotel's facilities either for visiting business
guests, or for their own functions.
§
Market Demographics

Market - Character Character Character Character

Segments istic istic istic istic
Travel - - - - -
IT Industry - - - - -
Automotive - - - - -

Market Trends

Market trends can be categorized as follows: Corporate Travel Policies, Local Business Trends,
and 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 city. Although the level of corporate room business appears to be increasing again, it has had a
significant affect on last year's result and consequent projections 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: The city cancelled three major trade events over the past three months, and
exhibitions held at the halls had attendance figures much lower than expected. All booked events
for the upcoming 12 month period however, including the Motor Show and the Northwest Tech
Exhibition, have pre-booked attendance figures in line with expectations and in some cases in
excess of projections.
§

Market
Growth

The growth
rate of the
target markets
has been
steady over
the past five
years. The
travel trade
sector has grown at an average of 7.1%, the automotive sector at an average of 9.5% and the IT
industry at 8%.
Recent world events have 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 re-stabilized, growth
is anticipated to continue at a steady pace in line with the expansions in the region's IT activities,
the annual program of travel trade events taking place and the launch of a new overall motors
model this year.
§

Macroenvironment

The external, environmental issues that affect the 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.

The Company

The Riverview Hotel, Notown USA, is representative of the five star brand within the 'Exclusive
Business Hotels of the World' group. All Riverview Hotels are boutique properties, offering
between 25 and 35 exclusive rooms.

Mission

The Riverview Hotel is 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.

Service Offering

Service: high-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.

Positioning

The Riverview Hotel is positioned as a five star plus, business traveler's hotel, strategically located
and offering a high level of personal service. Our focus is 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.

SWOT Summary

The following analysis highlights the internal strengths and weaknesses of our organization and
the opportunities and threats facing the company in our external environment. We must work to
improve our areas of weakness.
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.

Strengths

 Strategy:established differentiation strategy.

 Structure:flat, decentralized structure.
 Skills:diverse range of service skills within management and staff.
 Style:strong, participative culture.
 Staff:specialized and experienced staff that are 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 within the local market and corporate and travel trade
markets for reliability, exemplary service and quality.

Weaknesses

 Strategy:differentiation strategy needs to be more clearly communicated externally,

within local and national markets.
 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 renovation and upgrade as regards technical equipment,
such as high speed Internet access and laptop links.

Opportunities

 Market:returning growth after a period of slump.

 Competitors:no direct competition exists at present, in terms of the five 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 offering lower daily rates.
 Economy:recovery from slight recession may take time.

Historical Results

Marketing activity in previous years, has produced positive results. The areas that have produced
the best results have been:
 Service:high-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: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: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:primary focus has been on mass communication via print ads in trade
publications and on the Internet, direct mail campaigns to existing and prospective 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.
§
Historical Data

Variable 2002 2003 2004

Industry Revenue $100,000 $110,000, $115,000,
,000 000 000
Company Market Share 2% 2% 3%
Company Revenue $2,000,0 $2,200,0 $3,450,0
00 00 00
Industry Variable Costs $70,000, $80,000, $80,000,
000 000 000
Company Variable Costs $1,500,0 $1,700,0 $2,700,0
00 00 00
Industry Gross $30,000, $30,000, $35,000,
Contribution Margin 000 000 000
Company Gross $500,000 $500,000 $750,000
Contribution Margin
Marketing Expenses $300,000 $350,000 $650,000
Company Net $200,000 $150,000 $100,000
Contribution Margin

Competition

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

Direct Competition

 Hilton, Notown:5 star city hotel, room rates on par with Riverview, older facilities.
 Marriott, Notown:5 star city hotel, room rates approximately 10% higher than Riverview,
facility only four years old.
 Glendale Apartments, Notown:5 star furnished apartments, daily rates vary between
Riverview's double deluxe and suite rates.
 Hyatt Residence, Notown:5 star furnished apartments, daily rates 15% higher than
Riverview's double deluxe rates.
These properties offer similar facilities, although somewhat less focused on business needs, and
incorporate more leisure facilities than we currently provide.
§
 §
Growth and Share

Competitor Price Growth Market

Rate Share
Hilton $105 6% 20%
Marriot $115 8% 33%
Glendale $105 6% 5%
Apts
Hyatt $120 5% 12%
Residence
Riverview $105 8% 30%
Hotel

Average $110. 6.50% 20.00%

00
Total $550. 32.50% 100.00%
00
§
Competitive Analysis

#1 #2 #3 #4 #5 #6
Competitor Hilt Marr Glend Hy Rivervi Name
on iot ale att ew me

Product and/or Service Hilt Marr Glend Hy Rivervi Name

on iot ale att ew me
Quality 6 7 4 8 9 0
Selection 5 7 5 6 9 0
Price 6 6 6 6 8 0
Other 0 0 0 0 0 0

Location and Physical Hilt Marr Glend Hy Rivervi Name

Appearance on iot ale att ew me
Traffic 4 5 7 7 8 0
Appearance 4 7 6 8 9 0
Visibility 7 6 7 9 8 0
Convenience Factors 7 6 6 8 9 0
Other 0 0 0 0 0 0

Added Value Factors Hilt Marr Glend Hy Rivervi Name

on iot ale att ew me
Pre and Post Sales 3 5 4 7 9 0
Service
Experience 7 8 6 9 9 0
Expertise 6 7 5 8 9 0
Reputation 5 9 6 8 9 0
Image 6 9 4 8 8 0
Stability 6 8 4 9 9 0
Strategic Alliances 0 0 0 0 0 0
Other 0 0 0 0 0 0

Other Marketing Hilt Marr Glend Hy Rivervi Name

Activities on iot ale att ew me
Established Sales 0 0 0 0 0 0
Channels
Advertising 0 0 0 0 0 0
Post-purchase Support 0 0 0 0 0 0
Incentives 0 0 0 0 0 0
Loyalty Components 0 0 0 0 0 0
Other 0 0 0 0 0 0
Total 72 90 70 101 113 0

Indirect Competition

Riverview's 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 Riverview Hotel.
Riverview has to keep abreast of all new distance meeting technology, and continue to reinforce
with clients that there is no better way to do business then face to face.

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Marketing Strategy

Our marketing strategy's objective is to communicate the unique set of services that we offer to
discerning 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.

Value Proposition

Riverview Hotel offers the best, most personalized service for the corporate traveler. We 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 many strengths 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 particular service
and our strong position within the community with both customers and suppliers.
Critical issues for the Riverview include:
 Continuing to differentiate from our competition and offering added value to our guests.
 Retaining our current levels of repeat business and developing further customer loyalty in
a competitive market.
 Attract new market sectors such as the Notown University-based business sector.
 Continue to be perceived as a supportive member of the Notown community.

Financial Objectives

 Increase overall room revenue by 10% on the past year.

 Accomplish growth within the given budget of $250,000.
 Increase corporate contracted rates to reflect the return of confidence in the corporate
travel market.
 Keep payroll expenses down and reduce the level of overtime within the workforce.

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.
 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:
1 Travel trade;
2 IT industry;
3 Automotive.
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 Riverview Hotel to make sure that the hotel is kept up to the
highest level in order to keep the high quality branding that Riverview 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 Riverview Hotel, Notown USA, is representative of the five star brand within the 'Exclusive
Business Hotels of the World' group. All Riverview Hotels are boutique properties, offering
between 25 and 35 exclusive rooms.
The Riverview properties are 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.

§
Target Market Messaging

Market Messaging
Segments
Travel Most Luxurious Small Hotel
IT Industry Business Ammentities and
Proximity to IT Industry
Automotive Best Business Ammentities

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:
4 The Best Business facilities
5 Personalized Services
6 Luxurious Amenities

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Marketing Mix
Place: product and service information are sold to the guest via personal selling, direct marketing,
advertising and the Internet. Delivery channels include travel agents and international reservations
systems.

Product Marketing

Product: high quality facilities accompanied by exemplary personal service, differentiated from
competition quality with the overall brand strategy has proven to be a successful approach
generating high levels of repeat business.

Pricing

Pricing strategy has been consistent with the differentiation objective, to provide added value for a
reasonable rate as opposed to discounting and de valuing our products and services.
Room rates quoted are net of tax and service, are per night, per room with continental breakfast
included:
 Corporate single - $95.00;
 Corporate double - $125.00;
 Corporate double deluxe - $ 175.00;
 Corporate suite - $225.00 (maximum occupancy 2 persons).
Conference room rates are net of tax and service, quoted per day use with tea and coffee breaks (2)
included:
The Riverview Boardroom - $260.00;
The Riverview Conference Hall - $320.00;
The Riverview Ballroom - $875.00.

Promotion

Promotion: primary focus will remain on mass communication via print ads in trade publications
and on the Internet. Direct mail campaigns to existing and prospective clients will increase as a
cost effective means of targeted campaigning.
Personal selling in the local market will remain an important element of the mix in order to
continue to build long-term relationships within the local community and generate high levels of
corporate activity.
Public relations activities will continue to play an important role in the marketing mix, presenting
the hotel as a supportive member of the community and participating in significant local events.

Advertising

The following table shows our primary advertising milestones.

§
Milestones

Advertising Start End Budg Mana Depart

Date Date et ger ment
Contract media space 1/1/20 4/1/20 $20,0 Geoff Marketi
05 05 00 ng
Ad agency liasonon print 1/1/20 3/28/2 $11,0 Geoff Marketi
ad material 05 005 00 ng
Dispatch/monitor 5/1/20 8/1/20 $2,00 Sally Marketi
campaign results 05 05 0 ng
Total Advertising Budget $33,0
00

Public Relations

The following table shows our primary PR milestones.

§
Milestones

PR Start End Bud Mana Depart

Date Date get ger ment
Public relations functions to 2/1/20 3/1/20 $0 Anne PR
schedule 05 05
Evaluate sponsorship requests 3/1/20 4/1/20 $0 Anne PR
05 05
Establish list of sponsorship 4/1/20 6/1/20 $6,0 Anne PR
events/companies 05 05 00
Total PR Budget $6,0
00

Direct Marketing

Our direct marketing will be handled by our PR agency. We will buy select targeted list of
corporate companies and send them information about Riverview Hotel. We know that we are no
experts in direct marketing so it will be important that our PR agency handles every aspect of
direct marketing for us.
§
Milestones

Direct Marketing Start End Budg Mana Depart

Date Date et ger ment
Direct mail lists to 2/1/20 3/1/20 $6,00 Sally Marketi
purchase/prepare 05 05 0 ng
Ad agency liason on direct 3/1/20 3/1/20 $7,00 Sally Marketi
mail material 04 05 0 ng
Total Direct Marketing $13,0
Budget 00

Web Plan

Our website is already up and running, but needs to be revamped to give it an updated look and
feel, as well as to add secure interactivity. The content is good -- it just need a little refresher.
We need:
1 New home page design and navigation
2 Online reservations capability
3 Printable brochure

Website Goals

Our website needs to be able to do the following:

 4 Convey our messaging of high quality, luxury business accommodations
5 Be indexed on major travel websites so that people find us
6 Be able to take reservations online and make changes to reservations online

Website Marketing Strategy

Our main website marketing strategy hinges upon making sure all major travel sites such as
Expedia.com, Orbitz.com, and Hotels.com list our hotel when customers search for hotels in our
area.

Development Requirements

To attain the level of interactivity we want in our redesign, we need to increase the features
allowed (security for reservations and credit-card processing, daily back-ups, and real-time
database linking) and service-level of our hosting service. This will slightly increase our monthly
hosting fee.
Sally has contracted with a database developer to update our reservations system to be compatible
with the online reservation requirements. The new website will be ready to launch in April.
§
Pay-Per-Click ROAS

Netw Monthly Clic Leads Ord Monthly RO Cost-per- Cost-per-

ork Cost ks Generated ers Revenue AS click lead
Googl $3,000 600 75 10 $5,000 167 $5.00 $40.00
e %
Yaho $2,000 300 40 5 $4,000 200 $6.67 $50.00
o! %
Other $500 100 30 3 $1,500 300 $5.00 $16.67
%
Total 5500 100 145 18 10500 222 $5.56 $35.56
0 %
§
Milestones

Web Development Start End Bud Mana Depart

Date Date get ger ment
Homepage Re-design 1/1/20 1/15/2 $1,0 Shelly Marketi
05 005 00 ng
Printable Brochures 1/1/20 1/15/2 $2,0 Shelly Marketi
05 005 00 ng
Online reservations 1/1/20 1/15/2 $6,0 Shelly Marketi
05 005 00 ng
Total Web $9,0
Development Budget 00

Service

Our hotel provides guests with an alternative to the impersonal, large five star properties in the
city. Strategically located, our property enables our guests to be at the heart of the business
community and yet in an environment of calm and professionalism. We seek to differentiate our
product and services in the following areas:
 Personal recognition of our frequent travelers who return time and again.
  Luxurious rooms that offer a sense of doing business from 'home.'
 Staff that have a strong customer-service ethic.
 Business facilities second to none in town.

Implementation Schedule

New marketing campaign efforts will be focused from January through April, aimed at the launch
of the redesigned website in April. We will continue to track the results of this campaign for the
remainder of the year.
§
Milestones

Advertising Start End Budg Mana Depart

Date Date et ger ment
Contract media space 1/1/20 4/1/20 $20,0 Geoff Marketi
05 05 00 ng
Ad agency liasonon print ad 1/1/20 3/28/2 $11,0 Geoff Marketi
material 05 005 00 ng
Dispatch/monitor campaign 5/1/20 8/1/20 $2,00 Sally Marketi
results 05 05 0 ng
Total Advertising Budget $33,0
00
PR Start End Budg Mana Depart
Date Date et ger ment
Public relations functions to 2/1/20 3/1/20 $0 Anne PR
schedule 05 05
Evaluate sponsorship requests 3/1/20 4/1/20 $0 Anne PR
05 05
Establish list of sponsorship 4/1/20 6/1/20 $6,00 Anne PR
events/companies 05 05 0
Total PR Budget $6,00
0
Direct Marketing Start End Budg Mana Depart
Date Date et ger ment
Direct mail lists to 2/1/20 3/1/20 $6,00 Sally Marketi
purchase/prepare 05 05 0 ng
Ad agency liason on direct mail 3/1/20 3/1/20 $7,00 Sally Marketi
material 04 05 0 ng
Total Direct Marketing Budget $13,0
00
Web Development Start End Budg Mana Depart
Date Date et ger ment
Homepage Re-design 1/1/20 1/15/2 $1,00 Shelly Marketi
05 005 0 ng
Printable Brochures 1/1/20 1/15/2 $2,00 Shelly Marketi
05 005 0 ng
Online reservations 1/1/20 1/15/2 $6,00 Shelly Marketi
05 005 0 ng
Total Web Development Budget $9,00
0
Other Start End Budg Mana Depart
Date Date et ger ment
Name me 1/1/20 1/15/2 $0 ABC Depart
06 006 ment
Name me 1/1/20 1/15/2 $0 ABC Depart
06 006 ment
Name me 1/1/20 1/15/2 $0 ABC Depart
06 006 ment
Other 1/1/20 1/15/2 $0 ABC Depart
06 006 ment
Total Other Budget $0
Totals $61,0
00

Sales Plan

Our sales plan hinges upon our sales strategy, sales process and, prospecting plan. As long as we
follow the plans laid below we should be in good shape.

Sales Strategy

Riverview Hotel's sales strategy hinges upon repeat visits by key corporate accounts. We need to
develop a relationship with the companies listed in our Sales Account Plan, as well as actively
generate new accounts by soliciting first time corporate visitors.
It will be important to remain competitive on price, as well as amenities. The corporate accounting
department wants to make sure they limit the amount of money spent per night per employee on a
business trip, but the business traveler will be able to express preference. If the price is right, and
the business traveler knows that they will have all amenities they need while at the Riverview
Hotel, we will be assured of keeping and attracting key accounts.

Sales Process

We will be sure to mail out corporate packets every 6 months to our key accounts, as well as any
new accounts we acquire. The packets will have information about corporate pricing and
discounts, as well as information about rooms and amenities for the companies to share with
business travelers.
The biggest piece of our sales process will depend on personal relationships. We will need to make
every business traveler feel like we remember them and we know their likes and dislikes. We also
need to cultivate good relationships with the person at the company who makes travel
arrangements.

§
Sales Account Plan

Target Accounts History Status Annual Sales Key Account

Potential Manager
Company A disappointed w/ proposal $20,000 Geoff
current made
Company B referral from designing $15,000 Geoff
Jack proposal
Company C request on 12/15 drafting $10,000 Sally
response

Existing Key History Status Annual Sales Key Account

Accounts Potential Manager
Company 1 3 years Stable $40,000 Sally
Company 2 5 annual check next $60,000 Geoff
 conferences month
Other - - $0 -
Total $145,000

Prospecting Plan

Whenever a new customers stays at our hotel we need to be able to determine whether it is for
leisure or business. If it is for business -- we need to make sure to get the customers business name
and address so that we can send a corporate packet to the company letting them know about
corporate pricing and special business amenities.

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http://www.mplans.com/hotel_marketing_plan/marketing_mix_fc.php#ixzz18AkqSkyT§

Financials

Our annual marketing budget is $100,000. Sales are anticipated to achieve revenue of $1,172,925.
Our marketing expenses will equate to approximately 8.5% of the overall revenue.

Break-even Analysis

§
Fixed Costs

Cost
Rent or Lease $0
Professional Services $1,00
0
Payroll $10,0
00
Interest Payments $2,00
0
Utilities & Telephone $5,00
0
Non-discretionary $0
marketing expenses
Other $0
Total Fixed Costs $18,0
00
§
Break-even Analysis

Monthly Units Break- 145

even
Monthly Revenue $19,9
Break-even 29
Assumptions:
Average Per-Unit $137.
Revenue 14
Average Per-Unit $13.2
Variable Cost 8
Estimated Monthly $18,0
Fixed Cost 00

Sales Forecast

Room revenue for this year is based 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.
§

§
Sales Forecast
FY FY FY
2006 2007 2008
Unit Sales
Corporate Single 1,925 2,118 2,118
Corporate Double 3,665 4,032 4,032
Corporate Deluxe 2,695 2,965 2,965
Corporate Suite 268 294 294
Total Unit Sales 8,553 9,409 9,408

Unit Prices FY FY FY
2006 2007 2008
Corporate Single $95.00 $95.00 $99.00
Corporate Double $125.00 $125.00 $135.00
Corporate Deluxe $175.00 $175.00 $195.00
Corporate Suite $225.00 $225.00 $240.00

Sales
Corporate Single $182,87 $201,21 $209,63
5 0 3
Corporate Double $458,12 $504,00 $544,25
5 0 3
Corporate Deluxe $471,62 $518,87 $578,17
5 5 5
Corporate Suite $60,300 $66,150 $70,560
Total Sales $1,172, $1,290, $1,402,
925 235 620

Direct Unit Costs FY FY FY

2006 2007 2008
Corporate Single $7.86 $11.00 $11.00
Corporate Double $13.92 $13.50 $13.50
Corporate Deluxe $17.50 $18.50 $18.50
Corporate Suite $0.84 $0.00 $0.00

Direct Cost of Sales

Corporate Single $15,138 $23,298 $23,293
Corporate Double $51,033 $54,432 $54,425
Corporate Deluxe $47,163 $54,853 $54,853
Corporate Suite $225 $0 $0
Subtotal Direct Cost $113,55 $132,58 $132,57
of Sales 8 3 0
Expense Forecast

Marketing expenses are projected to be approximately 8.5% of overall annual revenue. The
breakdown of expenditures is as follows:
§

§
Marketing Expense Budget
FY FY FY
2006 2007 2008
Print Advertising $10,60 $11,60 $12,82
0 0 6
Internet Advertising $21,00 $23,10 $25,41
0 0 0
Public Relations $6,000 $6,600 $7,260
Other $21,00 $23,10 $25,41
0 0 0
-------- -------- --------
---- ---- ----
Total Sales and $58,60 $64,40 $70,90
Marketing Expenses 0 0 6
Percent of Sales 5.00% 4.99% 5.06%

Linking
Expenses to
Strategy and
Tactics

Our marketing expense is structured to reflect the corporate strategy differentiation. Quarterly
travel trade publications and interim monthly press ads communicate our message to key
corporate clients in one of our most significant target markets. Monthly Internet advertising
expenses include banner ads, and strategic links with car hire, airline and destination management
companies' websites to drive business to the hotel. Direct mail activity builds our targeted
customer database, not only in terms of improving the quality of the data we currently hold, but on
increasing the size of the database with prospective customer information. Public relations
expenses cover PR events, participation at local functions and sponsorship funds. Overall, the
percentage of total revenue required to support the marketing expense is considered a moderate
amount.
§

Contribution
Margin

Contribution
margins
should
increase due
to:
  Differentiation/focus strategy increases ability to specialize.
 Maintenance of expenses within specified levels.
 Increased efficiency in capacity utilization.
 Economies of scale due to increased purchasing efficiencies.
§

§
Contribution Margin
FY FY FY
2006 2007 2008
Sales $1,172, $1,290, $1,402,
925 235 620
Direct Cost of Sales $113,55 $132,58 $132,57
8 3 0
Other Costs of Sales $0 $0 $0
--------- --------- ---------
--- --- ---
Total Cost of Sales $113,55 $132,58 $132,57
8 3 0

Gross Margin $1,059, $1,157, $1,270,

368 653 050
Gross Margin % 90.32% 89.72% 90.55%

Marketing Expense FY FY FY
Budget 2006 2007 2008
Print Advertising $10,600 $11,600 $12,826
Internet Advertising $21,000 $23,100 $25,410
Public Relations $6,000 $6,600 $7,260
Other $21,000 $23,100 $25,410
--------- --------- ---------
--- --- ---
Total Sales and $58,600 $64,400 $70,906
Marketing Expenses
Percent of Sales 5.00% 4.99% 5.06%

Contribution Margin $1,000, $1,093, $1,199,

768 253 144
Contribution Margin / 85.32% 84.73% 85.49%
Sales

Read more: http://www.mplans.com/hotel_marketing_plan/financials_fc.php#ixzz18Aky1Pbi§

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.

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, Geoff Watkins, leads our PR and marketing team of four in all advertising,
promotional and public relations related activities. Geoff works closely with the members of the
team, to implement and monitor the effectiveness of the marketing plan and evaluate results.
§

Read more: http://www.mplans.com/hotel_marketing_plan/controls_fc.php#ixzz18AlPDmdw§