Confidentiality Confidentiality Agreement
The undersigned reader acknowledges that the information provided by _____________ _______________ __ in this marketing plan is confidential; therefore, reader agrees not to disclose it without the express written permission of _______________. It is acknowledged by reader that information to be furnished in this marketing plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to _______________. Upon request, this document is to be immediately returned to _______________. _______________. ___________________ Signature ___________________ Name (typed or printed) ___________________ Date This is a marketing plan. It does not imply an offering of securities.
Table of Contents 1.0
Execut Executive ive Summar Summary y . . .. . . .. . . .. . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . 1
2.0
Situation Situation Analysi Analysis s . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . .. . . .. . . .. . .. . . .. 2.1 Market Market Needs Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2 2.2 The The Mar Marke kett . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2.1 2.2.1 Market Market Demogr Demograph aphic ics s . .. . .. . .. . .. . .. .. . .. .. . .. . .. . .. . .. . .. . 2.2.2 2.2.2 Market Trends Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2.3 2.2.3 Market Market Growth Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2.4 2.2.4 Macroenviro Macroenvironmen nmentt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3 The Compan Company y . .. . .. .. . .. . .. . .. . .. . .. . .. .. . .. . .. . .. . .. . .. .. . .. . 2.3.1 2.3.1 Mission Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3.2 2.3.2 Service Service Offeri Offering ng . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3.3 2.3.3 Positio Positioni ning ng . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3.4 2.3.4 SWOT SWOT Summa Summary ry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3.4.1 2.3.4.1 Strengths Strengths . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3.4.2 2.3.4.2 Weaknesse Weaknesses s . . .. . . .. . . .. . . .. . . .. . . .. . . .. . .. . . .. . . .. 2.3.4.3 Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3.4. 2.3.4.4 4 Threat Threats s . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . . 2.3.5 2.3.5 Historica Historicall Results Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4 Compe Competit tition ion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4.1 2.4.1 Direct Direct Competi Competition tion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4.2 2.4.2 Indir Indirect ect Competi Competitio tion n . .. . .. . .. . .. . .. . .. . .. . .. .. . .. . .. . .. . .. .
3.0
Marketing Marketing Strat Strategy egy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 3.1 Value Value Prop Proposi ositio tion n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 3.2 Critical Critical Issues Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 3.3 3.3 Fina Financ ncia iall Obje Object ctiv ives es . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 3.4 Marketing Marketing Objective Objectives s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 3.5 Target Target Market Market Strate Strategy gy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 3.6 Messag Messagin ing g . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 3.6.1 3.6.1 Branding Branding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
1 2 2 3 4 5 5 6 6 6 6 6 7 7 7 7 8 9 9 11
Table of Contents 6.0
Control Controls s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 6.1 Imple Implemen mentati tation on . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 6.2 Keys Keys to Succes Success s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 6.3 Contin Continge gency ncy Planni Planning ng . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 6.4 Marketing Marketing Organization Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Appendix Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
27
Riverview Hotel 1.0 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 a nd strategic locations within major cities throughout the country. Also synon ymous with the brand are the h igh 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 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 Differentiating the type of business service offered, from tha t of the t he 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 provide the Riverview with an opportunity to leverage its core competencies as regards servicing the business traveller in a luxurious environment.
2.0 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
Riverview Hotel 2.1 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 ou r 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 reliability in supplying them with the support they need, when they need it. The Riverview Hotel operates in a city with a very stro ng sense of community, and we want to stay an integral part of that community.
2.2 The Market The Riverview Hotel is a boutique 5*+ hotel c omprising 35 luxury guest rooms and specializing 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 originating from both international and domestic markets from within the travel trade, automotive and IT s egments. The strategic location of the property is key to its success in these areas due to the proximity of the Exhibition Halls, Overall Motors a nd 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, facilities, both inside the rooms and within the hotel's conference facilities. Our guests feel that they ca n conduct their business from within a less austere atmosphere
Riverview Hotel
Market Analysis (Pie)
Travel IT Industry Automotive
2.2.1 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
Riverview Hotel Table: Market Demographics
Market Demographics Market Segments Travel IT Industry Automotive
-
Characteristic -
Characteristic -
Characteristic -
Characteristic -
2.2.2 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 v arious 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 signifi s ignificant cant 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 cha nging 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 a nd in some cases in excess of projections.
Riverview Hotel 2.2.3 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.
Market Analysis (C.A.G.R)
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
Riverview Hotel
2.3 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.
2.3.1 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 va lue 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.
2.3.2 Service Offering Service: high-quality high-quality facilities accompanied by exemplary personal service, differentiated from competition in line line with the overall brand strategy has proven to be a successful approach generating high levels of repeat business.
Riverview Hotel 2.3.4.1 Strengths • • • • • • • •
Strategy: established differentiation strategy. Structure: flat, decentralized structure. Skills: diverse range of service skills within management and sta ff. Style: strong, participative culture. Staff: specialized specialized and experienced staff that are motivated and highly skilled. 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, reliability, exemplary service and quality.
2.3.4.2 Weaknesses • • • •
Strategy: differentiation 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.
2.3.4.3 Opportunities
Riverview Hotel 2.3.5 Historical Results Marketing activity in previous years, has produced positive results. The areas that have produced the best results have been: •
Service: high-quality high-quality faciliti fa cilities es 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 provides the means to develop relationships 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 significant local events to assist in developing ongoing cooperation, assures repeat business and good working relationships.
Table: Historical Data
Historical Data Variable
2002
2003
2004
Riverview Hotel 2.4 Competition Although no direct competition exists, in terms of the five star s tar plus boutique-style property, other five star hotels and serviced apartments do compete for the same corporate business sectors.
2.4.1 Direct Competition • • • •
older facilities. Hilton, Notown: 5 star city hotel, room rates on par with Riverview, older Marriott, Notown: 5 star city hotel, room rates approximately 10% higher than Riverview, facility 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, facilities, although somewhat less focused on business needs, and incorporate more leisure facilities than we currently provide.
Table: Growth and Share Analysis
Growth and Share Competitor Hilton Marriot Glendale Apts Hyatt Residence Riverview Hotel
Price $105 $115 $105 $120 $105
Growth Rate 6% 8% 6% 5% 8%
Market Share 20% 33% 5% 12% 30%
Riverview Hotel Table: Competitive Analysis
Competitive Analysis Competitor
#1 Hilton
#2 Marriot
#3 Glendale
#4 Hyatt
#5 Ri R iverview
#6 Na N ame me
Product and/or Service Quality Selection Price Other
Hilton 6 5 6 0
Marriot 7 7 6 0
Glendale 4 5 6 0
Hyatt 8 6 6 0
Riverview 9 9 8 0
Name me 0 0 0 0
Hilton
Marriot
Glendale
Hyatt
Riverview
Name me
4 4 7 7 0
5 7 6 6 0
7 6 7 6 0
7 8 9 8 0
8 9 8 9 0
0 0 0 0 0
Added Value Factors Pre and Post Sales Service Experience Expertise Reputation Image Stability Strategic Alliances Other
Hilton 3 7 6 5 6 6 0 0
Marriot 5 8 7 9 9 8 0 0
Glendale 4 6 5 6 4 4 0 0
Hyatt 7 9 8 8 8 9 0 0
Riverview 9 9 9 9 8 9 0 0
Name me 0 0 0 0 0 0 0 0
Other Marketing Activities Established Sales Channels Advertising Post-purchase Support Incentives Loyalty Components Other Total
Hilton 0 0 0 0 0 0 72
Marriot 0 0 0 0 0 0 90
Glendale 0 0 0 0 0 0 70
Hyatt 0 0 0 0 0 0 10 101
Riverview 0 0 0 0 0 0 11 113
Name me 0 0 0 0 0 0 0
Location and Physical Appearance Traffic Appearance Visibility Convenience Factors Other
Riverview Hotel 2.4.2 Indirect Competition Riverview's indirect 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 a ffects Riverview Hotel. Riverview 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.
3.0 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 a s 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 relationships with our customers and suppliers suppliers and to identify the needs of our guests in an effective manner. Continued differentiation 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.
3.1 Value Proposition Riverview Hotel offers the best, most personalized service for the corporate trav eler. We include business essentials in every room, such as a nice n ice 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.
Riverview Hotel 3.3 Financial Objectives • • • •
Increase Increase overal overalll room room revenue revenue by 10% 10% on the the past past year. year. Accomplis Accomplish h growth growth within within the the given given budge budgett of $250, $250,000. 000. Increase Increase corporate corporate contracte contracted d rates to reflec reflectt the return return of confidenc confidence e in the corporate corporate travel market. Keep payroll payroll expens expenses es down and reduce reduce the level level of overtim overtime e within within the workforce. workforce.
3.4 Marketing Objectives • • • •
To continue continue to communic communicate ate our strategi strategic c objectives objectives to our our target target markets effecti effectively. vely. To provide provide a positive positive hotel hotel exper experienc ience e to all all our guests. guests. To accompli accomplish sh our growth growth targets targets withi within n the given given time time and budge budget. t. Expand our markets markets and identify identify new new markets markets for our our product product and services. services.
3.5 Target Market Strategy Our primary targets continue to be professional visitors to the region region from the following following industries, where annual corporate contracts can be entered into: • • •
Tra Travel tr trade; IT industry; Autom omot otiive.
Local firms will be targeted for day use of conference co nference facilities, facilities, room nights for visiting executives and long stay professional guests.
Riverview Hotel Table: Target Market Market Messaging Messaging
Target Market Messaging Market Segments Travel IT Indu Indust stry ry Automotive
Messaging Most Luxurious Small Hotel Busi Busine ness ss Amm Amment entitie ities s and and Prox Proxiimity mity to IT Indus ndustr try y Best Business Ammentities
3.7 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 Bes Bestt Busin Busines ess s facil facilit itie ies s Pers Person onal aliz ized ed Servi Service ces s Luxu Luxuri riou ous s Ameni Ameniti ties es
Strategy Pyramid Strategy
Best Business Facilities
Free wireless access
Riverview Hotel 4.0 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.
4.1 Product Marketing Product: high quality facilities accompanied by exemplary personal service, differentiated from competition quality quality with the overall brand strategy has proven to be a successful approach generating high levels of repeat business.
4.2 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: • • • •
Corpo Corpora rate te sin singl gle e - $95. $95.00 00;; Corpo Corpora rate te dou doubl ble e - $125 $125.0 .00; 0; Corpor Corporate ate doubl double e delu deluxe xe - $ 175.0 175.00; 0; Corporate Corporate suite suite - $225.0 $225.00 0 (maximu (maximum m occupancy occupancy 2 persons) persons)..
Conference room rates are net of tax and service, quoted per day use with tea and coffee
Riverview Hotel 4.3.1 Advertising The following table shows o ur primary advertising milestones.
Table: Advertising Milestones
Milestones Advertising Contract media space Ad agency liasonon print ad material Dispatch/monitor campaign results Total Advertising Budget
Start Date 1/1/2005 1/1/2005 5/1/2005
End Date 4/1/2005 3/28/2005 8/1/2005
Budget $20,000 $11,000 $2,000 $33,000
Manager Geoff Geoff Sally
Department Marketing Marketing Marketing
4.3.2 Public Relations The following table shows our primary PR milestones.
Table: PR Milestones
Milestones PR Public relations functions to schedule Evaluate sponsorship requests Establish list of sponsorship events/companies Total PR Budget
4.3.3 Direct Marketing
Start Date 2/1/2005 3/1/2005
End Date 3/1/2005 4/1/2005
Budget $0 $0
Manager Anne Anne
Department PR PR
4/1/2005
6/1/2005
$6,000
Anne
PR
$6,000
Riverview Hotel 4.4 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. 2. 3.
New home home page page desig design n and and navi navigat gation ion Onli Online ne rese reserv rvat atio ions ns capab capabil ilit ity y Pri Printab ntable le broc brochu hure re
4.4.1 Website Goals Our website needs to be able to do the th e following: 1. 2. 3.
Convey our messagi messaging ng of high quality, quality, luxury luxury business business accomm accommodati odations ons Be indexe indexed d on major travel websites websites so that people people find find us Be able able to take take reservati reservations ons online online and and make changes changes to reservati reservations ons online online
4.4.2 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.
Riverview Hotel Table: Pay-per-click Pay-per-cl ick ROAS
Pay-Per-Click ROAS Network
Monthly Cost $3,000 $2,000 $500 5500
Google Yahoo! Other Total
Clicks 600 300 100 1000
Leads Generated 75 40 30 145
Orders 10 5 3 18
Monthly Revenue $5,000 $4,000 $1,500 10500
ROAS 16 1 67% 20 200% 300% 22 222%
Cost-perclick $5.00 $6.67 $5.00 $5.56
Cost-perlead $40.00 $50.00 $16.67 $35.56
Table: Website Milestones
Milestones W eb Development Homepage Re-design Printable Brochures Online reservations Total W eb Development Budget
Start Date 1/1/2005 1/1/2005 1/1/2005
End Date 1/15/2005 1/15/2005 1/15/2005
Budget $1,000 $2,000 $6,000 $9,000
Manager Shelly Shelly Shelly
Department Marketing Marketing Marketing
4.5 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. professionalism. We seek to differentiate differentiate our product and services in the following areas: • • • •
Personal Personal recogni recognition tion of our our frequent frequent travel travelers ers who return time and again. again. Luxurious Luxurious rooms rooms that offer a sense of doing doing busine business ss from 'home.' 'home.' Staff Staff that that have a strong strong custom customerer-ser servic vice e ethic. ethic. Busines Business s facili facilitie ties s second second to none none in town town..
Riverview Hotel Table: Milestones
Milestones Advertising Contract media space Ad agency liasonon print ad material Dispatch/monitor campaign results Total Advertising Budget PR Public relations functions to schedule Evaluate sponsorship requests Establish list of sponsorship events/companies Total PR Budget Direct Marketing Direct mail lists to purchase/prepare Ad agency liason on direct mail material Total Direct Marketing Budget W eb Development Homepage Re-design Printable Brochures Online reservations Total W eb Development Budget Other Name me Name me Name me Other Total Other Budget Totals
Start Date 1/1/2005 1/1/2005 5/1/2005
End Date 4/1/2005 3/28/2005 8/1/2005
Manager Geoff Geoff Sally
Department Marketing Marketing Marketing
End Date 3/1/2005 4/1/2005
Budget $20,000 $11,000 $2,000 $33,000 Budget $0 $0
Start Date 2/1/2005 3/1/2005
Manager Anne Anne
Department PR PR
4/1/2005
6/1/2005
$6,000
Anne
PR
Start Date 2/1/2005
End Date 3/1/2005
$6,000 Budget $6,000
Manager Sally
Department Marketing
3/1/2004
3/1/2005
$7,000
Sally
Marketing
Start Date 1/1/2005 1/1/2005 1/1/2005
End Date 1/15/2005 1/15/2005 1/15/2005
Manager Shelly Shelly Shelly
Department Marketing Marketing Marketing
Start Date 1/1/2006 1/1/2006 1/1/2006 1/1/2006
End Date 1/15/2006 1/15/2006 1/15/2006 1/15/2006
Manager ABC ABC ABC ABC
Department Department Department Department Department
$13,000 Budget $1,000 $2,000 $6,000 $9,000 Budget $0 $0 $0 $0 $0 $61,000
4.7 Sales Plan Our sales plan hinges upon our sales strategy, sales process and, prospecting plan. As long as
Riverview Hotel 4.7.2 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 co mpanies 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. dislikes. We also need to cultivate good relationships relationships with the person at the company who makes travel arrangements.
Table: Sales Account Account Plan
Sales Account Plan Target Accounts Company A Company B Company C Exis Existi ting ng Key Key Acco Accoun unts ts Company 1 Company 2 Other Total
History disappointed w/ current referral from Jack request on 12/15
Status proposal made designing proposal drafting response
Annual Sales Potential
Ke Key Account Manager
Hist Histor ory y 3 years 5 annual conferences -
Stat Status us Stable check next month -
Annu Annual al Sale Sales s Pote Potent ntia iall Key Key Acco Accoun untt Mana Manage ger r $40,000 Sally
$20,000
Geoff
$15,000
Geoff
$10,000
Sally
$60,000 $0 $145,000
Geoff -
Riverview Hotel 5.1 Break-even Analysis Table: Fixed Costs
Fixed Costs Cost Rent or Lease Professional Services Payroll Interest Payments Utilities & Telephone Non-discretionary marketing expenses Other Total Fixed Costs
$0 $1,000 $10,000 $2,000 $5,000 $0 $0 $18,000
Table: Break-even Analysis
Break-even Analysis Monthly Units Break-even Monthly Revenue Brea reak-ev -even
145 $19,929
Assumptions: Average Per-Unit Revenue Average Per-U r-Unit Variable Cost Estimated Monthly Fixed Cost
$137.14 $13.28 $18,000
Break-even Analysis $10,000 $5,000
Riverview Hotel 5.2 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.
Table: Sales Forecast
Sales Forecast FY 2006
FY 2007
FY 2008
Unit Sales Corporate Single Corporate Double Corporate Deluxe Corporate Suite Total Unit Sales
1,925 3,665 2,695 268 8,553
2,118 4,032 2,965 294 9,409
2,118 4,032 2,965 294 9,408
Unit Prices Corporate Single Corporate Double Corporate Deluxe Corporate Suite
FY 2006 $95.00 $125.00 $175.00 $225.00
FY 2007 $95.00 $125.00 $175.00 $225.00
FY 2008 $99.00 $135.00 $195.00 $240.00
Sales Corporate Single Corporate Double Corporate Deluxe Corporate Suite Total Sales
$182,875 $458,125 $471,625 $60,300 $1,172,925
$2 $ 201,210 $504,000 $518,875 $66,150 $1,290,235
$2 $ 209,633 $544,253 $578,175 $70,560 $1,402,620
Direct Unit Costs Corporate Single Corporate Double Corporate Deluxe Corporate Suite
FY 2006 $7.86 $13.92 $17.50 $0.84
FY 2007 $11.00 $13.50 $18.50 $0.00
FY 2008 $11.00 $13.50 $18.50 $0.00
Riverview Hotel
Sales Monthly $140,000 $120,000 $100,000
Corporate Single
$80,000
Corporate Double $60,000
Corporate Deluxe Corporate Suite
$40,000 $20,000 $0 Apr Apr May May Jun Jun
Jul Jul Aug Sep Sep Oct Nov Dec Dec Jan Jan Feb Feb Mar Mar
5.3 Expense Forecast Marketing expenses are projected to be approximately 8.5% of overall annual revenue. The breakdown of expenditures is as follows:
Riverview Hotel
Monthly Expense Budget $6,000 $5,000 $4,000
Print Advertising Internet Advertising
$3,000
Public Relations $2,000
Other
$1,000 $0 Apr Apr May May Jun Jun
Jul Jul Aug Sep Sep Oct Oct Nov Dec Dec Jan Jan Feb Feb Mar Mar
5.4 Linking Expenses to Strategy and Tactics Our marketing expense is structured to reflect the corporate strategy differentiation. differentiation. Quarterly travel trade publications and interim monthly press ads communicate our message to key corporate clients in one of our most significant significant target markets. Monthly Internet advertising expenses include banner ads, and strategic links with ca r hire, airline and destination
Riverview Hotel
Sales vs. Expenses Monthly $140,000 $120,000 $100,000 $80,000
Sales $60,000
Expenses
$40,000 $20,000 $0 Apr May May Jun Jun
Jul Jul Aug Aug Sep Sep Oct Oct Nov Nov Dec Jan Jan Feb Feb Mar Mar
5.5 Contribution Margin Contribution margins should increase due to: • •
Different Differentiati iation/foc on/focus us strategy strategy increases increases abili ability ty to speciali specialize. ze. Maintenance Maintenance of expense expenses s within within specifi specified ed level levels. s.
Riverview Hotel
Contribution Margin Monthly $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 Apr May May Jun Jun
Jul Jul Aug Sep Sep Oct Oct Nov Dec Dec Jan Jan Feb Feb Mar Mar
6.0 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.
Riverview Hotel 6.2 Keys to Success • • • • •
Continue Continue to develop develop ongoin ongoing g relations relationships hips with with frequent frequent and and new guests. guests. Continue Continue to develop develop and impl implement ement a strong strong communica communications tions plan plan in both both national national and international markets. Leverage Leverage our streng strength th in the the local local market market as a member member of the community community by by supporting local events. Identify Identify new new markets markets for our services services such such as Universi University-bas ty-based ed target target groups. groups. Continue Continue ongoing ongoing staff training training and and skill devel developme opment nt to ensure the highest highest standard standards s of service.
6.3 Contingency Planning Contingency plans have been made for the following following unexpected developments: • •
A slower slower recovery recovery from the recession recession than than public public opinion: opinion: this has been been reflected reflected in in the moderate increase in levels of corporate business expected. The entry into into the market of a competiti competitively vely align aligned ed hotel: hotel: different differentiati iation on 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.
6.4 Marketing Organization Our marketing director, Geoff Watkins, leads our PR and marketing team of four in all advertising, promotional and public relations relations related activities. Geoff works closely with the
Appendix Appendix Table: Sales Forecast
Sales Forecast Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
180 280 260 10 730
175 260 240 5 680
175 375 250 45 845
160 300 225 15 700
150 280 200 5 635
175 375 250 75 875
175 360 220 60 815
125 280 225 15 645
100 200 175 3 478
160 300 225 15 700
175 375 200 5 755
175 280 225 15 695
Unit Prices Corporate Single Corporate Double Corporate Deluxe Corporate Suite
Apr $95.00 $125.00 $175.00 $225.00
May $95.00 $125.00 $175.00 $225.00
Jun $95.00 $125.00 $175.00 $225.00
Jul $95.00 $125.00 $175.00 $225.00
Aug $95.00 $125.00 $175.00 $225.00
Sep $95.00 $125.00 $175.00 $225.00
Oct $95.00 $125.00 $175.00 $225.00
Nov $95.00 $125.00 $175.00 $225.00
Dec $95.00 $125.00 $175.00 $225.00
Jan $95.00 $125.00 $175.00 $225.00
Feb $95.00 $125.00 $175.00 $225.00
Mar $95.00 $125.00 $175.00 $225.00
Sales Corporate Single Corporate Double Corporate Deluxe Corporate Suite Total Sales
$17,100 $35,000 $45,500 $2,250 $99,850
$16,625 $32,500 $42,000 $1,125 $92,250
$16,625 $46,875 $43,750 $10,125 $ 117,375
$15,200 $37,500 $39,375 $3,375 $95,450
$14,250 $35,000 $35,000 $1,125 $85,375
$16,625 $46,875 $43,750 $16,875 $ 124,125
$16,625 $45,000 $38,500 $13,500 $1 $ 113,625
$11,875 $35,000 $39,375 $3,375 $89,625
$9,500 $25,000 $30,625 $675 $65,800
$15,200 $37,500 $39,375 $3,375 $95,450
$16,625 $46,875 $35,000 $1,125 $99,625
$16,625 $35,000 $39,375 $3,375 $94,375
Apr $9.50 $12.50 $17.50 $22.50
May $9.50 $12.50 $17.50 $0.00
Jun $0.50 $12.50 $17.50 $0.00
Jul $9.50 $12.50 $17.50 $0.00
Aug $9.50 $12.50 $17.50 $0.00
Sep $0.50 $12.50 $17.50 $0.00
Oct $9.50 $12.50 $17.50 $0.00
Nov $9.50 $21.50 $17.50 $0.00
Dec $9.50 $12.50 $17.50 $0.00
Jan $9.50 $21.50 $17.50 $0.00
Feb $9.50 $12.50 $17.50 $0.00
Mar $9.50 $12.50 $17.50 $0.00
$1,710 $3,500 $4,550 $225 $9,985
$1,663 $3,250 $4,200 $0 $9,113
$88 $4,688 $4,375 $0 $9,150
$1,520 $3,750 $3,938 $0 $9,208
$1,425 $3,500 $3,500 $0 $8,425
$88 $4,688 $4,375 $0 $9,150
$1,663 $4,500 $3,850 $0 $10,013
$1,188 $6,020 $3,938 $0 $11,145
$950 $2,500 $3,063 $0 $6,513
$1,520 $6,450 $3,938 $0 $11,908
$1,663 $4,688 $3,500 $0 $9,850
$1,663 $3,500 $3,938 $0 $9,100
Unit Sales Corporate Single Corporate Double Corporate Deluxe Corporate Suite Total Unit Sales
Direct Unit Costs Corporate Single Corporate Double Corporate Deluxe Corporate Suite Direct Cost of Sales Corporate Single Corporate Double Corporate Deluxe Corporate Suite Subtotal Direct Cost of Sales
0% 0% 0% 0%
0.00% 0.00% 0.00% 0.00%
Appendix Appendix Table: Ma rketing Expense Budget
Marketing Expense Budget Print Advertising Internet Advertising Public Relations Other Total Sales and Marketing Expenses Percent of Sales
Apr $2,000 $1,750 $500 $1,750 ---------------------
May $400 $1,750 $500 $1,750 ---------------------
Jun $400 $1,750 $500 $1,750 ---------------------
Jul $2,000 $1,750 $500 $1,750 -------------------
Aug $300 $1,750 $500 $1,750 ---------------------
Sep $300 $1,750 $500 $1,750 ---------------------
Oct $2,000 $1,750 $500 $1,750 ---------------------
Nov $300 $1,750 $500 $1,750 ---------------------
Dec $300 $1,750 $500 $1,750 --------------------
Jan $2,000 $1,750 $500 $1,750 ---------------------
Feb $300 $1,750 $500 $1,750 ---------------------
Mar $300 $1,750 $500 $1,750 ---------------------
$6,000
$4,400
$4,400
$6,000
$4,300
$4,300
$6,000
$4,300
$4,300
$6,000
$4,300
$4,300
6.01%
4.77%
3.75%
6.29%
5.04%
3.46%
5.28%
4.80%
6.53%
6.29%
4.32%
4.56%
Appendix Appendix Table: Contributi on Margin
Contribution Margin Sales Direct Cost of Sales Other Costs of Sales Total Cost of Sales Gross Margin Gross Margin % Marketing Expense Budget Print Advertising Internet Advertising Public Relations Other Total Sales and Marketing Expenses Percent of Sales Contribution Margin Contribution Margin / Sales
Apr $99,850 $9,985 $0 ------------------$9,985
May $92,250 $9,113 $0 ------------------$9,113
Jun $117,375 $9,150 $0 ------------------$9,150
Jul $95,450 $9,208 $0 ------------------$9,208
Aug $85,375 $8,425 $0 ------------------$8,425
Sep $124,125 $9,150 $0 ------------------$9,150
Oct $113,625 $10,013 $0 ------------------$10,013
Nov $89,625 $11,145 $0 ------------------$11,145
Dec $65,800 $6,513 $0 ------------------$6,513
Jan $95,450 $11,908 $0 ------------------$11,908
Feb $99,625 $9,850 $0 ------------------$9,850
$89,865 90.00%
$83,138 90.12%
$1 $ 108,225 92.20%
$86,243 90.35%
$76,950 90.13%
$1 $ 114,975 92.63%
$1 $ 103,613 91.19%
$78,480 87.56%
$59,288 90.10%
$83,543 87.52%
$89,775 90.11%
Apr $2,000 $1,750 $500 $1,750 ------------------$6,000 6.01%
May $400 $1,750 $500 $1,750 ------------------$4,400 4.77%
Jun $400 $1,750 $500 $1,750 ------------------$4,400 3.75%
Jul $2,000 $1,750 $500 $1,750 ------------------$6,000 6.29%
Aug $300 $1,750 $500 $1,750 ------------------$4,300 5.04%
Sep $300 $1,750 $500 $1,750 ------------------$4,300 3.46%
Oct $2,000 $1,750 $500 $1,750 ------------------$6,000 5.28%
Nov $300 $1,750 $500 $1,750 ------------------$4,300 4.80%
Dec $300 $1,750 $500 $1,750 ------------------$4,300 6.53%
Jan $2,000 $1,750 $500 $1,750 ------------------$6,000 6.29%
Feb $300 $1,750 $500 $1,750 ------------------$4,300 4.32%
$83,865 83.99%
$78,738 85.35%
$103,825 88.46%
$80,243 84.07%
$72,650 85.10%
$110,675 89.16%
$97,613 85.91%
$74,180 82.77%
$54,988 83.57%
$77,543 81.24%
$85,475 85.80%
Mar $94,375 $9,100 $0 ------------------$9,100 $85,275 90.36% Mar $300 $1,750 $500 $1,750 ------------------$4,300 4.56% $80,975 85.80%
