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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
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2.0
Situation Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.1
Market Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.2
The Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.2.1 Market Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.2.2 Market Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.2.3 Market Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.2.4 Macroenvironment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.3
The Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.3.1 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.3.2 Service Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.3.3 Positioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.3.4 SWOT Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.3.4.1 Strengths . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.3.4.2 Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.3.4.3 Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.3.4.4 Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.3.5 Historical Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.4
Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.4.1 Direct Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.4.2 Indirect Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
2
2
3
4
5
5
6
6
6
6
6
7
7
7
7
8
9
9
11
3.0
Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.1
Value Proposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.2
Critical Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.3
Financial Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.4
Marketing Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.5
Target Market Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.6
Messaging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.6.1 Branding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.7
Strategy Pyramids . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
11
11
12
12
12
12
12
13
4.0
Marketing Mix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.1
Product Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.2
Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.3
Promotion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.3.1 Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.3.2 Public Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.3.3 Direct Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.4
Web Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.4.1 Website Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.4.2 Website Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.4.3 Development Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.5
Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.6
Implementation Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.7
Sales Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.7.1 Sales Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.7.2 Sales Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.7.3 Prospecting Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
14
14
14
15
15
15
16
16
16
16
17
17
18
18
19
19
5.0
Financials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.1
Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.2
Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.3
Expense Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.4
Linking Expenses to Strategy and Tactics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.5
Contribution Margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19
20
21
22
23
24
Table of Contents
6.0
Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.1
Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.2
Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.3
Contingency Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.4
Marketing Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25
25
26
26
26
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 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.
Page 1
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 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.
Growth
7%
8%
10%
8.38%
2005
2006
2007
2008
2009
1,000
1,200
1,500
3,700
1,071
1,296
1,643
4,010
1,147
1,400
1,799
4,346
1,228
1,512
1,970
4,710
1,315
1,633
2,157
5,105
CAGR
7.09%
8.01%
9.51%
8.38%
Page 2
Riverview Hotel
Travel
IT Industry
Automotive
Page 3
Riverview Hotel
Table: Market Demographics
Market Demographics
Market Segments
Travel
IT Industry
Automotive
Characteristic
-
Characteristic
-
Characteristic
-
Characteristic
-
2,000
1,500
Travel
IT Industry
1,000
Automotive
500
0
2005
2006
2007
2008
2009
Page 4
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.
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
Travel
IT Industry
Automotive
2.2.4 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 underperforming 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.
Page 5
Riverview Hotel
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 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.
2.3.3 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.
Page 6
Riverview Hotel
2.3.4.1 Strengths
2.3.4.2 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.
2.3.4.3 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.
2.3.4.4 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.
Page 7
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 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.
Table: Historical Data
Historical Data
Variable
Industry Revenue
Company Market Share
Company Revenue
Industry Variable Costs
Company Variable Costs
Industry Gross Contribution
Margin
Company Gross Contribution
Margin
Marketing Expenses
Company Net Contribution Margin
2002
$100,000,000
2%
$2,000,000
$70,000,000
$1,500,000
2003
$110,000,000
2%
$2,200,000
$80,000,000
$1,700,000
2004
$115,000,000
3%
$3,450,000
$80,000,000
$2,700,000
$30,000,000
$30,000,000
$35,000,000
$500,000
$500,000
$750,000
$300,000
$200,000
$350,000
$150,000
$650,000
$100,000
Page 8
Riverview Hotel
2.4 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.
Price
$105
$115
$105
$120
$105
Growth Rate
6%
8%
6%
5%
8%
Market Share
20%
33%
5%
12%
30%
$110.00
$550.00
6.50%
32.50%
20.00%
100.00%
Page 9
Riverview Hotel
Table: Competitive Analysis
Competitive Analysis
Competitor
#1
Hilton
#2
Marriot
#3
Glendale
#4
Hyatt
#5
Riverview
#6
Name me
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
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
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
101
Riverview
0
0
0
0
0
0
113
Name me
0
0
0
0
0
0
0
9%
8%
Hilton
7%
Marriot
6%
Glendale Apts
Hyatt Residence
5%
Riverview Hotel
4%
86
88
90
92
94
96
98
100
102
Page 10
Riverview Hotel
2.4.2 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.
Page 11
Riverview Hotel
3.3 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.
3.6 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.
3.6.1 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.
Page 12
Riverview Hotel
Table: Target Market Messaging
Target Market Messaging
Market Segments
Travel
IT Industry
Automotive
Messaging
Most Luxurious Small Hotel
Business Ammentities and Proximity to IT Industry
Best Business Ammentities
Strategy Pyramid
Strategy
Personalized Service
Luxurious Amenities
Page 13
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.
4.2 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:
Corporate
Corporate
Corporate
Corporate
single - $95.00;
double - $125.00;
double deluxe - $ 175.00;
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:
4.3 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.
Page 14
Riverview Hotel
4.3.1 Advertising
The following table shows our 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
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
Start Date
2/1/2005
End Date
3/1/2005
3/1/2004
3/1/2005
Budget
$6,000
Manager
Sally
Department
Marketing
$7,000
Sally
Marketing
$13,000
Page 15
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.
Page 16
Riverview Hotel
Table: Pay-per-click 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
167%
200%
300%
222%
Cost-perclick
$5.00
$6.67
$5.00
$5.56
Cost-perlead
$40.00
$50.00
$16.67
$35.56
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. 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.
Page 17
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
Web Development
Homepage Re-design
Printable Brochures
Online reservations
Total Web 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
Manager
Shelly
Shelly
Shelly
Department
Marketing
Marketing
Marketing
Manager
ABC
ABC
ABC
ABC
Department
Department
Department
Department
Department
Start Date
1/1/2005
1/1/2005
1/1/2005
End Date
1/15/2005
1/15/2005
1/15/2005
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
$13,000
Budget
$1,000
$2,000
$6,000
$9,000
Budget
$0
$0
$0
$0
$0
$61,000
Page 18
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 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.
History
disappointed
w/ current
referral from
Jack
request on
12/15
Status
proposal
made
designing
proposal
drafting
response
History
3 years
5 annual
conferences
-
Status
Stable
check next
month
-
$20,000
Geoff
$15,000
Geoff
$10,000
Sally
$60,000
Geoff
$0
$145,000
5.0 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.
Page 19
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
145
$19,929
Assumptions:
Average Per-Unit Revenue
Average Per-Unit Variable Cost
Estimated Monthly Fixed Cost
$137.14
$13.28
$18,000
Break-even Analysis
$10,000
$5,000
$0
($5,000)
($10,000)
($15,000)
($20,000)
0
40
80
120
160
200
Page 20
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
$201,210
$504,000
$518,875
$66,150
$1,290,235
$209,633
$544,253
$578,175
$70,560
$1,402,620
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
$15,138
$51,033
$47,163
$225
$113,558
$23,298
$54,432
$54,853
$0
$132,583
$23,293
$54,425
$54,853
$0
$132,570
Page 21
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 May Jun
FY 2006
$10,600
$21,000
$6,000
$21,000
-----------$58,600
5.00%
FY 2007
$11,600
$23,100
$6,600
$23,100
-----------$64,400
4.99%
FY 2008
$12,826
$25,410
$7,260
$25,410
-----------$70,906
5.06%
Page 22
Riverview Hotel
Print Advertising
Internet Advertising
$3,000
Public Relations
$2,000
Other
$1,000
$0
Apr May Jun
Page 23
Riverview Hotel
Sales
$60,000
Expenses
$40,000
$20,000
$0
Apr May Jun
FY 2006
$1,172,925
$113,558
$0
-----------$113,558
FY 2007
$1,290,235
$132,583
$0
-----------$132,583
FY 2008
$1,402,620
$132,570
$0
-----------$132,570
Gross Margin
Gross Margin %
$1,059,368
90.32%
$1,157,653
89.72%
$1,270,050
90.55%
FY 2006
$10,600
$21,000
$6,000
$21,000
-----------$58,600
5.00%
FY 2007
$11,600
$23,100
$6,600
$23,100
-----------$64,400
4.99%
FY 2008
$12,826
$25,410
$7,260
$25,410
-----------$70,906
5.06%
$1,000,768
85.32%
$1,093,253
84.73%
$1,199,144
85.49%
Sales
Direct Cost of Sales
Other Costs of Sales
Page 24
Riverview Hotel
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.
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.
6.1 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.
Page 25
Riverview Hotel
6.2 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.
Page 26
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
$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
0%
0%
0%
0%
0.00%
0.00%
0.00%
0.00%
Page 27
Appendix
Appendix Table: Marketing 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%
Page 28
Appendix
Appendix Table: Contribution 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
Mar
$94,375
$9,100
$0
-----------$9,100
$89,865
90.00%
$83,138
90.12%
$108,225
92.20%
$86,243
90.35%
$76,950
90.13%
$114,975
92.63%
$103,613
91.19%
$78,480
87.56%
$59,288
90.10%
$83,543
87.52%
$89,775
90.11%
$85,275
90.36%
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%
Mar
$300
$1,750
$500
$1,750
-----------$4,300
4.56%
$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%
$80,975
85.80%
Page 29