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Hotel

Aro

Marke
ting
plan
Executive summary:

Aro Palace hotel 5*, is one of the five hotels owned by Aro Palace
group.

Having a history for more than 70 years, being opened back in 1939,
the hotel is the only one having 5 * in Brasov.
In 1963,
he was
consumer
consumer
extended by behaviour
behaviour
constructing a
target
target
new building market [
market [ 4P
4P vision
vision &
&
(PRODUCT
(PRODUCT mission
and in 2005, PRICE
PRICE
mission
statement
statement
PLACE
PLACE
he was raised PROMOTIO
PROMOTIO
N
N)]
)] marketi
to a 5 *
ng
standard. The planning
hotel has a process
S trength
S trength
privileged segmentation
segmentation O
W eakness
W eakness
pportunity
O pportunity
+ targeting
+ targeting T hreats
position, T hreats
analysis
analysis
being situated
EXTERNAL
EXTERNAL
in the old city ENVIRONMEN
ENVIRONMEN
T
T
of Brasov.
The
hotel offers 312 double rooms, singles, apartments, studios, 1 presidential
apartment, 1 room for people with handicap, 6 restaurants, 4 conference
rooms, 1 spa, all of which being equipped with the latest features.

Our marketing planning process will be made upon the diagram as


shown.

First of all, we are looking to find out the hotels target market, the
consumer behavior, and its vision & mission statement; we will also make a
SWOT analysis followed by external environment.

Relation to corporate goals:

Our mission as a 5 * hotel is to constantly show our preoccupation for


ensuring high quality standards to our customers, trying to constantly
exceed their expectations. As for our vision, we have short terms goals and
also long terms goals.

We are constantly ensuring high quality standards by trying to adapt


ourselves to present time trends. For example, we can implement as room
facilities Plasma TV, high WI FI internet connection, small attentions in the
room like favorite wine bottle, personalized cards like welcome to our hotel
Mr. & Miss. Smith etcetera.

Regarding our visions, we have short term achievable goals for the
upcoming year, and also long term goals, which can be achievable in 3 to 5
years.

Short terms goals (upcoming years):

Improve customer loyalty


Increase our brand awareness
Extend our reach of communication to 90 % of target customers for
each advertising campaign
Gain as much as possible new customers in the chosen market
segment per quarter
Achieve a high level of customer satisfaction among 95 % of target
customers.
Increase market share in the chosen market segment by 5% this
year
Reduce marketing costs by 10% over next 6 months

Long term goals (3 to 5 years):

- We must establish specific and measurable long term goals that


express desired level of sales, market share, brand variables, ROI
etc., over a general time frame and geographic sales market:
Become the number one brand in our market by year 5
Acquire 30 % of our competitors costumers by year 4
Reduce cost per general acquisitions by year 4
Increase profit margin by 25 % by year 3
Secure partnership with all major distributors

Situation analysis and trend forecasting


The six external environments that are affecting hospitality business
are: the economic factor, social factor, competitive, political and legal,
technology and ecological factors. Next, we take each factor one by one and
explain them.

ECONOMIC factors

Include the inflation, when the increase in the price of goods and
services affects the business itself and the economy as a hole. Since our
country despite of being part of EU still uses local currency, the exchange
rate between local currency and EURO can be considered as an economic
factor.

The income per capita in our country dramatically dropped in the past
2 years, so this can be considered a very important factor which cannot be
overlooked. Unemployment is reaching new records day by day, big
multinational companies have to move their businesses elsewhere (see
Nokia, they moved to Asia)

Finally, global recession still has a great impact on local businesses,


including hospitality environment too.

SOCIAL factors

The family is the most important factor. Depending on who is taking


the decision in the family, their option in choosing the location may differ.
Children usually choose location where kids corners are available or they
have entertainment, while Families without children might have a different
option.
Families nowadays prefer shorter vacations, preferably in their own
area due to economic factors. We can see all of the factors go side by side;
they are connected in one way or another.

Another factor is the education. High level educated persons tend to


congregate in different places than non-educated individuals. In some cases,
if we are talking about a multicultural environment, language and religion is
decisive. People living longer, diversity, family morals and tradition are all
factors which are having a big impact on hospitality environment.

COMPETITION
The competitive factor for a hotel can come from existing hotels, new
hotels and hotels planned to be constructed in the future. Hotel Restaurants
are in direct rivalry with other dining facility which are offering probably more
divers menu items. Thematic restaurants are a big challenge for every hotel-
restaurant.

The competition (the competitive set) might have a better selling and
marketing strategy, implementing new ideas or innovations. Financial power
and good revenue management capabilities of the competitor are things that
can affect our business.

A correct and detailed SWOT analysis will help us to encounter our


problems and always to be one step ahead against competition.

POLITICAL and LEGAL factors

Changing laws and legislation, the bureaucracy for obtaining different


types of licenses, are all falling under political and legal factor.

New rules for safety and security regarding employees come with
investing in new training seminars, which means extra expenses.

TECHNOLOGY

We live in a century when everything changes quickly; new technology


appears on the market daily. So, its critical to invest in new technology and
products: POS, Micros systems, intelligent key cards, CCTV etc.

ECOLOGICAL factors

Companies tend to go eco, or green and for this reason they must be
sure that they comply with government regulations.

Energy saving equipment, Recycling, Reusing and Reducing are the 3


R's in the waste management programs.
For example, people appreciate a hospitality establishment where the
concern for conservation to the surrounding environment is taken seriously.

SWOT analysis for Aro Palace Hotel Brasov

Our STRENGHTS are:

From positioning point of view we are located in the ultra-central part


of the town, the so called old town. We are located at a major cross-road
between Transylvania and the rest of Romanian provinces. Every major
tourist attraction is within 5 minutes. (E.g. the Citadel, the Black Church and
the Old Town-Hall).

Currently we are the only hotel in Brasov rated as a 5 star hotel, with
the old wing which is only 4 stars. With a huge parking lot we overcome any
other hotel in the city.

Our hotel can offer a wide range of lodging options (Aro Palace Lux -5
star, Aro Palace Business -4 stars, Capitol -3 stars, Postavarul -2 stars and
Aro Palace Sport -1 star).The total number of rooms is over 1300, which
makes us the largest chain hotel in Brasov.

Other strengths are the 3 restaurants, which won in the past several
awards in culinary contests. Some of these awards are: - the Lady Chef
award in Dubai, (2009), 2 gold medals and one silver medal at the
Internazionali dItalia Marina di Carrara, in Italy (2007)

We also offer 24 h room service for the guests, as well as Wi-Fi in the
rooms.

The Spa, 2 pools (interior and exterior) and a huge Gym is always a
plus for our demanding customers. We must mention also our conference
rooms, with total seating capacity of 950.

Finally, we are proud of the hotels new wing, which was recently
renovated in 2005.
WEAKNESSES

As every hotel establishment, we have weak points too.

Despite of the renovation, the building is quite old. It was built in 1939,
so every year we must seriously check the infrastructure of the
establishment.

Take in consideration the size of the hotel, the costs and expenses are
enormous (furniture, fixtures, staff payroll and utilities).

Lack of training seminars as well as high turnover off the staff consist a
big ongoing issue. Other weakness is the room rate, which is higher than
most of our competitors have.

Concierge service and concierge floor are practically inexistent

Our major problem consists in not having gambling facility (casino) due
to heavy bureaucracy and finally, bad on-line comments from complaining
customers can and is affecting our business.

Some solutions to overcome high turnover are implementing training courses


for employees.

OPPORTUNITIES

As shown above, our hotel is the largest in Brasov.

We can organize social and cultural events, such as: weddings,


conferences, smaller conventions, team-buildings. On request, our hotel can
cater to hospitals, kindergartens and nursing homes.

As the construction of Brasov International Airport is scheduled to start


soon, our hotel is preparing to seize most of the air-line related contracts.

The possibility to accommodate sports team, wealthy people, business


travelers and entertainment celebrities represent an ongoing opportunities
throughout the year. Opening some souvenir shops and other revenue
centers sounds like a good idea.
THREATS

First threats come within the company. The thefts of employees as well
as guest thefts represent a huge loss for the company. (Things taken as
souvenir, money)

We have economic threats too such as, inflation and global recession.

Other hotels which are our competitive set, represents a permanent


threat (especially new hotels with new ideas of attracting customers) and
having a lower room rates

One of the major threads is Mystery Shoppers from other 4 star hotels.

By Investing in sales and marketing staff and training them, we can


easily keep our customers and start gaining new ones

SWOT analysis for Ambient Hotel Brasov

-Our main competitor-

STRENGHTS

The Ambient Hotel is located in the city center, near the main road
which takes us to the Citadel.

The hotel has 4 stars, rooms rated as 4 and 3 stars (single, double
comfort, double-deluxe, double executive and duplex rooms), and totaling
67.

Wi-Fi and the breakfast are included in the room-price


Often the hotel offers room-rate discount for returning guests. Prices
are lower compared to other 4 star hotels in the area.

The hotel was built in the early 1990s, with 2 restaurants and a
conference center.

Excellent customer care program is implemented by young


management; turnover of staff is relatively low.

This hotel also has great cooperation with all well-known regional
travel agencies, shuttle to and from the airport, great hotel to crash if
traveling in business purposes. (Wi-Fi, fax and printer, limited concierge
service, in-room safe)

WEAKNESSES

The limited number of rooms is really a disadvantage, large groups or


convention participants must choose another facility.

Parking space is quite limited and is extra-charge. Room-service is not


around the clock, this service is available between 7am-10pm (loosing great
amount of revenue)

The only profitable target market is the business travelers reference


group.

There is also mid-range restaurant on-site, but at reasonable prices on


menu. Bar area and the front office are the only functional areas which are
open 24h a day.

Cleanliness must be improved, English speaking personnel need to be


hired taking in consideration that the hotel focuses on a specific target
market.

Large banquets, catering to different companies is not possible due to


construction of the main kitchen.

OPPORTUNITIES

They should think on focusing ONLY on business travelers


There is a must in upgrading all their rooms to 4 stars as well
extending room service to 24 hours. Spa and wellness center would be a
good idea.

THREAHTS

One of the threads can consist of other 4 stars hotels which are
focusing on the same market segment. In the future they might lose
business on favor of hotels planned to be built near the Brasov International
Airport.

CONCLUSION

If we are to compare The Aro Palace Hotel and The Ambient Hotel
we can observe that the only target market they are fighting for is the
business travelers group.

The Sales and Marketing Directors of both companies must focus on


improving all negative aspects (weaknesses) by communicating more often
with all the departments managers and trying to resolve all the problems.
Direct Feedbacks from customers and negative on-line comments can be a
good source of inspiration in finding out what are the things which need to be
improved.

Consumer analysis:
Based on the S.W.O.T analysis our segment market is:

- Business travelers from London, white Caucasian, aged 30 to 50,


average income per year (50.000 80.000 $),
managers/C.E.O/contractors with a high level of education
(University/M.B.A); coming to Brasov to do business with other
companies. They are looking for the best hotel in the area with very
high service standards.
- Leisure travelers are the second segment. They are coming from
Romania. They are white Caucasian, families with children, aged
between 35-55 and an average income of 10.000 to 15.000 $ per year,
level of education - high-school finished. They are coming to visit
tourist attractions (Black Church, Town hall, Citadel etc.) And they are
looking for a hotel that offers special deals and discounts.
- Sport teams from Romania. Male/Female football players, handball
players, volley ball players aged between 18 30 white Caucasian.
Lodging paid by the club. Looking for a hotel big enough to
accommodate the team and staff and with high standards.
- Events are the fourth segment market of our hotel. These events are
as it follows: weddings, ceremonies, baptize conferences and meetings
as well as team buildings. People of all ages, different religions with a
high level of income per year looking a place to organize special events
and a high level of service and an excellent money/value ratio.
- The last segment market is the Entertainment Market. Its based on
movie makers, music bands and artists of all kinds. They come from
abroad, different ages and level of education. Income per year varies.
They are looking for exceptional service and the best accommodation.

Target market:

Business travelers need the following : Newspapers (Daily Telegraph ,


Sunday Times, The Sun); Internet access, preferably free wireless broadband
access; Table and chairs for performing office work; Free local calls; Free long
distance calling over the Internet; Room service that can provide hot food or
coffee at a specified time; Quick turnaround dry cleaning, pressing, shoe
shine; Barber shop with the ability to provide last minute services for
business travelers; Massage services; Gym services that have accessible
treadmills, weights, and aerobic classes; Concierge desk with staff who know
how to get things done and make credible recommendations; Restaurants
that have business traveler tables where business travelers can meet each
other when they are dining alone; Limousine reservations; Drivers; Security
arrangements; Tour guides; Convention arrangements

Leisure travelers need the following: Newspapers (Libertatea, Jurnalul


National, Gandul); Internet access , TV Cable in the room; Playground for
children; Theme nights/parties ( Greek Night , Italian Night, Movie Night );
Map in the room with all the touristic attractions nearby; Rental Services
( car ; bike ); Tour guides for visiting major touristic attractions; Wellness
Center ( Spa; Gym ; Pool ; Massage ); 24h Room service; Gambling Area;
Restaurant with great menu variety and also kids menu;

Marketing strategies and tactics:

In order to implement our marketing strategies and tactics, we must


take into consideration the four Ps of the traditional marketing mix. Those
are Price, Place, Product and Promotion.

Pricing:

The Aro Palace is focusing on mixt pricing strategies. These ones fall
into 4 categories:

Financial performance objectives we must reach every month a selling


target.

The second financial strategy is the volume. The more we sell the more
is better for the company. We are trying to reach 100% occupancy. Also we
look to our competitors and set the price accordingly.

Image is also very important as first impression always counts. People


buy from people they like.

Place:

The distribution channel shows us how we get our product from the
hotel to the costumers. Different distribution channels are as following: travel
and ticketing agent offices which can be located in hotel lobby too. Tour
wholesalers and operators can help us to maximize occupancy throughout
the year. Meeting planners connect us to the major companies from the
area, so we must always keep in touch with them. Hotel representatives are
highly trained personnel as they represent our image and they are promoting
our hotel in the best way they can. We hope to do better with travel bureau
in the future since we had some communication issues in the past.
Product:

Focusing on the hotel itself as a product, it is a well-known brand. The


brand life cycle is at the maturity level, since the hotel is on the market since
1939. We really dont need the market introduction or focus group.

Promotion:

Last of the 4 Ps is the promotion.

Good promotion gets our name out in the market by internet


advertising, and by holding monthly press releases. We also advertise on
national TV and Radio programs.

Our major travelling companies are: Thomas Cook, Olympic holidays,


TUI (Germany)

Its important for the PR to have a good relation with all the media, as
they can keep us connected with potential clientele.