Strategic Marketing Plan on a Destination
The mission of this hotel is to increase its market share in the next three years . Market research has shown that opportunities are available for growth since gaps have been identified in the market that requires to be filled. The top management has the ability to execute the opportunities with their marketing skills and have the capability of managing the strategies stated in the plan
The NoMad Hotel is located in an area with high population which will provide market for the hotel services. Through product improvements and introduction of new foods and services, the hotel will gain a competitive advantage over the rest in the area due to uniqueness of its services.
The strategies are viable and have a lot of economic and profit potential and will start earning income once they have been put into place due to the high demand of the products (Bangs, 1998). There are risks to be associated with the implementation of the plans since a lot of money will be involved and also there is no certainty of capturing all the prospective/ targeted customers.
A strategic marketing plan refers to a document that outlines how a business or an organizational will be marketing its products to consumers so that it can minimize competition from other firms offering similar products (Hill & Jones, 2002).
NoMad Hotel is one of the major leading tourist destination hotels in New York City. The mission of this company in the next three years is to increase its market share by capturing more tourists, to improve its products and provide quality services to its customers so that it can fetch higher profits (Appiah-Adu et al., 2000). It has also a goal of reducing competition from other hotels by providing unique foods, services and activities as Coen (2009) illustrates.
Marketing objectives define what a business or an organization wants to achieve in future. The marketing objectives have been categorized into four using the Ansoff matrix table. These include:
- Market penetration
- Market development
- Product development
Increasing the market share is the first step towards boosting sales and increasing the firm’s profits. To maximize the revenues, the hotel will be seeking to increase the volume of its sales in its current market so that it can command a larger market and see off competition from other hotels in the area (Anderson & Vincze, 2000). New opportunities should therefore be identified in the existing markets by employing various strategies so as to capture a larger number of customers (Luther, 2001). This objective will be achieved by
- Employing new pricing tactics. At this stage the firm will be seeking to capture as many customers as possible and the firm will achieve this by first keeping the prices as low as possible so that it can attract a large number of tourists and increase its market. The prices should be lower than those of competitors while maintaining the quality of the products so that the hotel can attract new customers (Ma, 1999).
- Advertising through agencies, magazines and also through the firms advertising force in the current markets will also assist in increasing the markets because many customers will be made aware of the hotels products and the services offered (Belch & Belch, 2004). The customers turn up in high numbers during the weekends. During the weekdays, the hotel should employ week day offers to customers through offering discounts. Customers can also be offered gifts when they buy packed foods e.g. attaching a beverage to a pizza. This will lure them from the competitors and the hotel will increase its sales in the long run and make more profits.
Market growth and development
After exhausting the existing or the current market, the hotel will seek to find new markets in new geographical areas so as to increase its sales volume and to gain more profits (Dubé & Renaghan, 1999). This can be achieved by:-
- National wide and global advertising so as to reach both the local and foreign tourists and to make them aware of the existence of the hotel and the quality foods and services it offers.
- New distribution plans which will enable the firm to use various distribution channels such as opening new branches in new regions such as Staten Island which is known for attracting a large number of tourists. This will also serve as a way of improving the image of the hotel to the public. This will be important for the future expansion of the hotel.
Product development the firm
The strengths of the hotel are related to the quality of its food products and services. The hotel should therefore seek to maintain and improve the quality of its products so that it can retain its customers and attract new customers. The hotel should closely monitor the customer feelings and tastes about their products so that it can avoid losing touch with them (Kurtz & Clow, 1998).
Product development will be achieved either through introduction of new quality foods such as the Chinese foods, Indian foods and a introduction of new services such as gymnastics, and merry go rounds. This will make the hotel ideal for families and different customers of different ages because the hotel can host adults and children since there will be so much to do in a day. The quality of the existing products such as swimming pools and lodgings need to be maintained and improved through renovations and repair maintenances. The hotel should maintain its high status and good image to the public to ensure it does not lose its customers (Hamper & Sue, 1990).
The hotel should also seek to expand into new products so that it can offer a variety of services to customers and also in new areas. This will be achieved by opening new branches in different regions and also increasing its product lines by offering additional services such as tour guiding (McDonald, 2002). The firm can also contract more product distributers to ensure that its products are offered to a large number of customers.
For objectives to be achieved I assume that
- The firm will be having adequate resources from borrowing and its revenues to be used in implementation of the plans.
- The economic conditions will remain relatively stable and the prices will be less affected by inflation.
- The number of tourists will not decrease so that the hotel does not make losses in the long run due to low tourist turnover.
- The new developments will be taken positively by existing customers and new customers.
The goals of the firm will be directed towards achieving these objectives.
The hotel is currently doing well financially and is able to meet all its operating costs and make normal profits. The goal of the firm is maximize profits and with the new plan the firm will be able to reap more benefits. The firm has been making an average of 30 million dollars annually and the proposed plan could see this rise to over 45 million dollars.