Grand Hyatt Singapore

10 Scotts Road, Singapore, Republic of Singapore 228211 Tel: +65 6738 1234 Fax: +65 6732 1696 Email: singapore.grand@hyatt.com
Maps & Directions

HOTEL OVERVIEW

Retreat to an oasis of tranquillity for business and leisure travellers, and enjoy the comforts of home at Grand Hyatt Singapore. Our Singapore 5 star hotel is strategically located at the start of Orchard Road in Singapore, in the centre of the city's commercial and entertainment district, just a 30-minute drive from Singapore'sChangi Airport. Unwind in one of 662 luxury rooms and suites, featuring swimming pool, garden or city views. Considered one of the best hotels in Singapore, Grand Hyatt Singapore's spacious guestrooms and suites are fitted with every modern convenience required for a comfortable stay, such as generous work desks, luxurious beds and elegant baths. Embark on a culinary adventure at several of the finest restaurants and bars at our Singapore Orchard Road hotel. From contemporary Western and Asian cuisine atmezza9, popular local delights at StraitsKitchen or the poolside Oasis to hearty Italian fare at Pete's Place or cocktails at 10 SCOTTS, you will be spoilt for choice by the wide selection available. Guests can also treat themselves at the glassenclosed martini bar, and party all night long at BRIX Nightclub on Orchard Road. Relax and fully rejuvenate at Damai, our award-winning spa and fitness centre. The in-house fitness centre features all of the latest equipment to help guests keep up with their fitness regime. If they prefer, they can enjoy a leisurely dip in the outdoor swimming pool surrounded by lush greenery. For sheer indulgence, guests can treat themselves to one of the signature indulgent body treatments or traditional massages and be pampered into a state of lingering bliss by skilled spa therapists. A reputable business & convention hotel in Singapore, Grand Hyatt Singapore offers extensive business services and event space complemented by an all-encompassing venue - The Gallery for exclusive meetings or spectacular social gatherings. Whether visiting Singapore for business, pleasure or a little of both, the Grand Hyatt Singapore hotel has everything needed for a truly memorable stay. Rooms & Amenities 662 Spacious Rooms & Suites Grand Club Rooms & Lounge Luxury Hotel Amenities iPod Docking Station available upon request Guest Services Hotel Business Centre Hotel Shops Singapore City Tours

Wireless High-Speed Internet in Public Areas Dining & Entertainment International Cuisine:mezza9 Local Cuisine:StraitsKitchen Italian Cuisine: Pete's Place Lounge/Bar/Poolside Dining: 10 SCOTTS / martini bar BRIX / Oasis Activities Damai Spa, Singapore Free Form Swimming Pool Tennis Courts Singapore Golf Courses Local Attractions Orchard Road Night Safari Universal Studios Singapore Sentosa Island Meetings & Events

The Gallery Venue Exhibition & Conference Centre Grand Ballroom for 700 guests

Area Operations & Marketing Analyst Hyatt Hotels & Resorts

Public Company; 10,001+ employees; H; Hospitality industry

1987 2003 (16 years) Singapore

Coordinated New Hotels Projects & Opening - Spearheaded Annual Business Plan - Facilitated Monthly Financial & Operations Review - Revenue Management: Turned around negative trends within 100 days - Spearheaded new global benchmark for energy efficiency at Hyatt Singapore - Special Projects & Problem Solving

Marketing for the Grand Hyatt Singapore Hotel

Posted: Jun 14, 2011 |Comments: 0 | Views: 121 | Ads by Google

100 Hotels in Singapore Book a hotel in Singapore online. Good availability and great rates! www.booking.com Customer Service Training Customizable training materials to teach customer service workshops.CorporateTrainingMaterials.com SWOT Analysis Diagrams Easy SWOT Analysis Diagrams See Examples. Free Download! www.SmartDraw.com Grammar & Spelling Check The Ultimate Proofreading & Text Evaluation Tool. Try it Free Now! www.Grammarly.com Task 1: Marketing As indicated by Kotler and Armstrong (2010, p23), the concept of marketing implies the process of conducting marketing researches, satisfying customers' needs by selling quality services and products to them and promoting the products and services through advertisement. In any business marketing is very essential as in helps in making sure that a great number of people get to know about the products and services offered by that business. Notably, the concept of marketing provides a strategy that underlies techniques

and tactics used in the process of selling, provides a strategy to be used in business communication, and helps in business development. Through marketing companies, organizations, and businesses are able to build strong customer relations and at the same time have value in their customers. On this basis therefore, the aspect of marketing is used in order to identify, satisfy, and keep a customer in order to increase the profitability of an organization. In this case, as a manager of the Grand Hyatt Hotel I would ensure that guests are fully satisfied in order to keep. Additionally, by building a strong relationship with customers I would make sure that the Hotel is being advertised. In order to remain competitive, as a manager of this hotel I would ensure that the products and services that re offered to customers are of high quality and there is a strong relationship between the hotel management and the customers. The marketing environment of the Grand Hyatt Hotel has no much impact since the Hotel is well equipped with technology and finances. On this case, the concept of marketing environment denotes the political, economic, social, and technological factors that affect the performance of a business. In this essence, Grand Hyatt Hotel is economically stable as it has a large number of people from the whole world hence increasing its profitability (Hague 2002, p43). Additionally, Singapore is a stable country politically and hence this hotel is not affected by political problems. As can be learned from the case study, this hotel utilizes modern technology in the pursuit of satisfying their customers. Lastly, the case study has vividly outlined that this hotel has a strategy of building customer relations as a way of making them satisfied. On this basis, many people have come to like this place and in return the hotel benefits. All these aspects show that Grand Hyatt Hotel is not majorly affected by external forces. Ads by Google

Consumer markets imply products or services that are produced for the general consumer. In Hotel situation, the concept of consumer market is very relevant as it enables customers to get what they want in that hotel. In this case, consumer market in hotels implies the aspect of transportation, foods, and beverages among other. It should be noted that one product does not interest all people in the society and it is of great importance if a hotel would come up with different types of foods and beverages in order to satisfy all customers (Hague 2002, p43). In the case of the Grand Hyatt Hotel, there are different rooms for different purposes and hence customers' needs will be cared for adequately. Additionally, most people who visit hotels are mostly interested in eating foods from their countries or the most famous foods. In this case therefore, by offering all kinds of foods in a hotel most people will be satisfied. The concept of market segmentation denotes dividing the market into groups of individuals with similar interests, needs, and wants. There are different reasons why companies and organizations engage in market segmentation which include; increase in profits, matching

customers' needs, and retaining customers. On this basis, increase in profit is one rationale of market segmentation. Basically, a company will get a lot of profits if customers are grouped into their interests, wants, and needs since the level of customer satisfaction will be very high. Secondly, customer needs are different and hence creating different offers for each segment makes customers to be more satisfied. In this case, customers are provided with a better solution when different services and products are offered in different segments (Hsu & Powers 2002, p22). Additionally, businesses always would like to deliver business messages to their target customers and hence this would be made very easy if there is market segmentation. The concept of retaining more customers is another rationale for market segmentation. On this basis, customers may grow old, change jobs, form families, or even change their purchasing patterns and hence by providing products and services that appeal customers at different levels in their lives; the business will be in a position to retain many customers. Task 2: Marketing mix The theory of marketing mix as indicated by Kotler et al (2010, p12), is mostly referred to as the four Ps which implies that a business in order to excel it has to have these elements. On this basis, the four Ps include; product, price, place, and promotion. Product can be either tangible object or intangible service that is produced or offered by an organization. In hotel and tourism industries, intangible services are mostly the products offered to customers. It should be noted that in any organization there must be the product that is offered which may be general or specific. In referring to the Grand Hyatt Hotel, services like; Grand Club rooms, dinning rooms, foods, beverages, and physical fitness facilities. In this case, this hotel provides services of high quality in order to attract as many customers as possible and get high profits in return. The second element of marketing mix is place which stands for the location of a business where products produced by a business can be purchased. It is of great importance to consider the concept of place when starting or running a business as it determines a lot in matters relating to profitability of that business. Notably, place may be used to denote any physical store or virtual stores of the internet as it serves as a place where products are being offered and purchased. Additionally, place is referred to as the distribution channel in marketing as it helps customers to have a place to purchase products. TheGrand Hyatt Hotel is located in a very good place that is strategic and hence it is able to attract as many customers as possible (Luther 2011, p40). As indicated in the case study, the Grand Hyatt Hotel is strategically located at the start of Orchard Road and hence it is very easy for customers to locate it. On this basis, the Grand Hyatt Hotel is able to use the concept of place in order to improve its profitability as it is located at the center of the world well-known commercial, entertainment, and retail center of the country.

HISTORY OF HYATT CORPORATION

Celebrating more than 50 years of history, Hyatt Hotels Corporations well-established reputation as an industry innovator provides a wealth of inspiration as the company looks forward to its next era of creative hospitality. Known around the world for its brands Hyatt Regency , Grand Hyatt , Park Hyatt , Hyatt Place , Hyatt Summerfield Suitesand Andaz the entire collection of Hyatt hotels and resorts weaves together authentic service with leading technology to offer its guests unique restaurants, luxury accommodations and distinctive spas. With its new initiatives and design elements continuing to evolve, the next half-century of Hyatt innovation will continue to provide its guests a world of uncommon travel experiences. Hyatt Hotels & Resorts opened its first property, a small motor hotel at the Los Angeles International Airport, in 1957 and its portfolio quickly grew to include several other modest hotels along the West Coast and in Chicago over the next ten years. In 1967,Hyatt opened its first major John Portman designed hotel, Hyatt Regency Atlanta , in Georgia, which featured a space-age design with a dramatic, 21-story atrium lobby. The revolutionary architecture spawned scores of atrium lobbies around

the world, effectively changing the course of the lodging industry and reshaping the Hyatt brand as an innovative and significant global hospitality leader . By 1969, 13 Hyatt hotels were in operation throughout the United States. That same year, the company launched Hyatt Regency Hong Kong , establishing Hyatt International Corporation . Over the next ten years, the companys portfolio of hotels began to expand and diversify rapidly, and in 1980 the company introduced the Grand Hyatt and Park Hyatt brands, and also solidified its entry into the luxury resort market with the opening of Hyatt Regency Maui Resort & Spa in Hawaii. Today, Hyatt successfully distinguishes itself within the competitive hospitality marketplace with six different brands, each designed to deliver experiences attuned to the lifestyles, attitudes, values, and aspirations of the guests for whom it is designed. The 2007-launched Andaz brand is sophistication made simple delivered with a genuine warmth; Hyatt Regency enables productivity and revitalization within a responsive, convenient and contemporary environment; Park Hyatt , a discreet and refined collection located in fashionable cities around the world, epitomizes modern luxury; Grand Hyatt properties are some of the most architecturally dramatic hotels in the world, offering stunning design and a myriad of innovative food and beverage concepts; Hyatt Place is designed for the 24/7 lifestyle of todays multi-tasking business traveler, and Hyatt Summerfield Suites , a reinvention of the all-suites, extended-stay hotel, features timely amenities and inviting, residential design. As a unified portfolio, Hyatts properties share core values across the Hyatt brand: exceptional guest service, upscale amenities, popular food and beverage programs, and innovative interior designs that incorporate local art and style. Currently offering travelers a choice of more than 365 hotels and resorts in over 45 countries, Hyatt Hotels Corporation continues to build on its commitment to clients, staff, partners and the environment as it grows its dynamic vision for the future of hospitality.

COMPANY HISTORY
Our History Hyatt was founded by Jay Pritzker in 1957 when he purchased the Hyatt House motel adjacent to the Los Angeles International Airport. Over the following decade, Jay Pritzker and his brother Donald Pritzker, working together with other Pritzker family business interests, grew the company into a North American management and hotel ownership company, which became a public company in 1962. In 1968, Hyatt International was formed and subsequently became a separate public company. Hyatt Corporation and Hyatt International Corporation were taken private by the Pritzker family business interests in 1979 and 1982, respectively. On December 31, 2004, substantially all of the hospitality assets owned by Pritzker family business interests, including Hyatt Corporation and Hyatt International Corporation, were consolidated under a single entity, now named Hyatt Hotels Corporation.

ABOUT HYATT
We are a global hospitality company with widely recognized, industry leading brands and a tradition of innovation developed over our more than fifty-year history. Our mission is to provide authentic hospitality by making a difference in the lives of the people we touch every day. We focus on this mission in pursuit of our goal of becoming the most preferred brand in each segment that we serve for our associates, guests, and owners. We support our mission and goal by adhering to a set of core values that characterizes our culture. We manage, franchise, own and develop Hyatt branded hotels, resorts and residential and vacation ownership properties around the world. As of September 30, 2011, the Company's worldwide portfolio consisted of 478 properties.

AWARDS 2010
OUR BRANDS
Hyatt Hotels Corporation

Ranked #8 in Diversity Elite 2010: Best Companies, Best Practices Hispanic Business Magazine

Hyatt Hotels & Resorts

Best Hotel Chain in Asia - DestinAsian Readers' Choice Awards 2010 Best International Hotel Management Group of China - 2010 China Hotel Starlight Awards Top 100 IDEAL Employer for Undergraduate and MBA Students - Universum USA Gold Honor, Best Hotel Chain 2010 Leading Edge Award Executive Travel Magazine Gold Honor, Best Hotel for Meetings 2010 Leading Edge Award Executive Travel Magazine Silver Honor, Best Hotel for Meetings 2010 Leading Edge Award Executive Travel Magazine

Winner, "Meetings and Conventions Innovation" (Hyatt Meeting Promise) 2010 Business Traveler Innovation Awards (NBTA) and The Wall Street Journal Best Integration Process of Young Graduates in a Hotel Group Hospitality Awards 2010

Park Hyatt

Healthy Living at Park Hyatt - "Best Breakfast" category - Wallpaper* Design Awards 2010 Top Hotel Brands 13th Annual Business Travel Awards Travel + Leisure Best Hotel Chain in the World - 2010 Best in Business Travel Awards - Business Traveler Magazine Hotel Chain with Best Overall Customer Service - 2010 Best in Business Travel Awards - Business Traveler Magazine Ranked #3 Best Domestic Hotel Chain - 2010 GT Tested Reader Survery - Global Traveler Ranked #9 Best Hotel Chain in Asia - 2010 GT Tested Reader Survey - Global Traveler

Andaz

Best Innovating Concept in the Fullservice Category Hospitality Awards 2010 Ranked #1 Best lifestyle Hotel - 2010 GT Tested Reader Survey - Global Traveler

Grand Hyatt

Top Hotel Brands 13th Annual Business Travel Awards Travel + Leisure Best Hotel Brand in the World - 2010 Business Traveller China Readers' Survey Awards - Business Traveller China Ranked #1 Best Hotel Club Floor - Grand Hyatt Club - 2010 GT tested Reader Survey - Global Traveler Ranked #8 Best Hotel Chain in Asia - 2010 GT Tested Reader Survey - Global Traveler Ranked #9 Best Hotel Chain in latin America - 2010 GT Tested Reader Survey - Global Traveler

Gold Passport

Ranked #1, Asia's Best Hotel Loyalty Programmes - Asia Money Magazine Travel Poll 2010 Silver Honor, Best Frequent-Guest Program 2010 Leading Edge Award Executive Travel Magazine COLLOQUY Loyalty Award, Travel/Hospitality category -- COLLOQUY Magazine Best Hotel Brand in the World 2010 Business Traveller China Readers' Survey Awards Business Traveller China Best Hotel Elite Program for The Americas 2010 Frequent Traveler Awards Best Hotel Elite Program for the Middle East/Asia/Oceania 2010 Frequent Traveler Awards Loyalty Leadership Award 2010 Frequent Traveler Awards Ranked #5 Best Hotel Rewards Program in the World - 2010 GT Tested Reader Survey - Global Traveler

Hyatt Vacation Club

Gold Honor, Best Destination/Fractional Home Ownership/Timeshare 2010 Leading Edge Award Executive Trave

Situation Analysis
The 'Exclusive Business Hotels of the World' group is the ninth largest International Hotel chain in the world, with over 320 wholly owned and managed properties. The group specializes in occupying strategic, inner city locations and serving primarily corporate clients. The properties range from three to five star plus categories, and include the following brands: River Inns (3*), River Post Houses (4*), and Riverview Hotels (5*+). The group has a high instance of repeat business across all its brands, particularly the Riverview Hotels properties, which account for 68% of total revenue across the group. The Riverview Hotel, Notown, is dependent on annually contracted clients from the travel trade, automotive and IT sectors with guaranteed room nights per year. This area of business accounts for 70% of the property's revenue.

The current market is somewhat depressed, due to the economic downturn and restrictions being made on corporate travel within the U.S. This threat to the critical corporate sector could be considered as short to medium term, as indications of a return to business travel are observed. Riverview Hotel, Notown, must continue to focus on delivering an exemplary business service, at affordable rates, in order to develop the customer relationship beyond one stay. Competitive room rates have been cut dramatically in order to attract contract clients over the next 1012 month period. The Riverview Hotel's survival in the current environment, will be dependent on repeat corporate contract business and customer loyalty to the brand. The brand must therefore continue to deliver on its promise and values.

Market Needs
The Riverview Hotel offers value and benefits to our clients, over and above the standard of our facilities and affordable rates. We seek to provide our guests with an exemplary personal service, and level of recognition that they have come to rely upon. We provide our guest with a luxurious, relaxed environment within which to conduct their business. An environment which they cannot find at our larger, more impersonal competitors. Our guests need to know that they can develop a relationship with the hotel that will ensure efficiency, value for their money and reliability in supplying them with the support they need, when they need it. The Riverview Hotel operates in a city with a very strong sense of community, and we want to stay an integral part of that community.

The Market
The Riverview Hotel is a boutique 5*+ hotel comprising 35 luxury guest rooms and specializing in servicing business and corporate clients. It serves the business community, and visiting business traveller, in the city of Notown USA. Our key clients are contracted corporate clients originating from both international and domestic markets from within the travel trade, automotive and IT segments. The strategic location of the property is key to its success in these areas due to the proximity of the Exhibition Halls, Overall Motors and Silicone Hill, USA. Key to our business success is the level of customer loyalty and repeat business we receive on an annual basis. We offer our guests the most up-to-date technical business facilities, both inside the rooms and within the hotel's conference facilities. Our guests feel that they can conduct their business from within a less austere atmosphere than can be experienced in our competitive properties, where there is less personal recognition. They appreciate being called by name when they arrive, and having staff remember their specific requirements, time and again. This is key in developing the relationship beyond an initial stay and evidences our added value in relation to competitive properties in the vicinity.

Market Analysis 2005 Potential Customers Travel IT Industry Automotive Total Growth 7% 8% 10% 8.38% 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 2006 2007 2008 2009 CAGR 7.09% 8.01% 9.51% 8.38%

Market Demographics
Market Geographics: Notown, USA is a suburb of Seattle, Washington, with a population of 150,000. Market Demographics: The community is made up predominantly of households having two to four children, either at home or away from home, with at least one parent/guardian having attended college. Market Psychographics: There is a strong 'small business' ethic in the community, and many family-run enterprises have been prospering for generations. There is also a strong sense of community and a high level of awareness as regards to caring for the environment. Market Behaviors: Businesses in the area choose to support one another wherever possible, be remaining loyal to long standing relationships with customers and suppliers. This acts as a means of investing in, and supporting the community structure, rather than shifting alliances to large 'newcomer' suppliers, despite the potential cost savings involved. This attitude supports the brand principles of the Riverview Hotel, which has had a presence in the city for 15 years, and is well supported by local business requirements for rooms, conference facilities and catering business functions. Based on research carried out in 2001, more than 68% of the population had some awareness of the Riverview Hotel. Awareness levels were highest amongst small- to medium-sized businesses with 20 or more employees, who had utilized the hotel's facilities either for visiting business guests, or for their own functions.

Market Demographics

Market Segments Travel IT Industry Automotive

- Characteristic Characteristic Characteristic Characteristic -

Market Trends
Market trends can be categorized as follows: Corporate Travel Policies, Local Business Trends, and Economic Cut Backs. Corporate Travel Policies: As a result of various security issues, as regards travelling in both domestic and international markets, there has been a significant drop in corporate guests visiting the city. Although the level of corporate room business appears to be increasing again, it has had a significant affect on last year's result and consequent projections for the future. Local Business Trends: There has been a period of low activity in the area of conferencing and business catering with local companies electing to conduct meetings and seminars on their own premises in order to cost cut. This is changing however as group bookings, incoming visitors and day use of conference facilities is on the increase. Economic Cut Backs: The city cancelled three major trade events over the past three months, and exhibitions held at the halls had attendance figures much lower than expected. All booked events for the upcoming 12 month period however, including the Motor Show and the Northwest Tech Exhibition, have pre-booked attendance figures in line with expectations and in some cases in excess of projections.

Market Growth
The growth rate of the target markets has been steady over the past five years. The travel trade sector has grown at an average of 7.1%, the automotive sector at an average of 9.5% and the IT industry at 8%. Recent world events have caused a reduction in the growth rate, but current trends indicate a return to projected growth figures within the next three to six months. Once re-stabilized, growth is anticipated to continue at a steady pace in line with the expansions in the region's IT activities, the annual program of travel trade events taking place and the launch of a new overall motors model this year.

Macroenvironment
The external, environmental issues that affect the Riverview Hotel are:

Political: a stable environment where little affects our ability to generate revenue. Economic: the recent recession has seen many smaller business-oriented hotel chains go into liquidation, as they do not possess the infrastructure to support under-performing properties as the larger chains do. Although recovery is beginning, it may take some time before corporate travel policy restrictions are fully lifted and business travel returns to the same levels of the past three years. Social: the trend towards cost effective business travel leads hotel guests to seek more value for money, which is where our added value differentiation strategy comes into play. Technological: the installation of 'on board' room reservations systems on certain aircraft, will require a systems integration with the hotel group's own central reservation system. This will require a high level of investment.

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

Mission
The Riverview Hotel is dedicated to providing its guests with the highest quality of service and standards. We seek to deliver on our promise of value and quality above all else. We value our place in the community and will work to develop those relationships and to respect and protect our environment. We will continue to strive to create value for both owners and shareholders whilst honoring our brand values and encouraging our personnel to develop themselves in an environment of trust, loyalty and encouragement.

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

Positioning
The Riverview Hotel is positioned as a five star plus, business traveler's hotel, strategically located and offering a high level of personal service. Our focus is on offering our guests added value and differentiating ourselves in our levels of personal service. We provide a quality hotel experience where guests are valued, respected and their business is truly appreciated.

SWOT Summary
The following analysis highlights the internal strengths and weaknesses of our organization and the opportunities and threats facing the company in our external environment. We must work to improve our areas of weakness. Organizational strengths must be leveraged in order to capitalize on external opportunities as they arise, and contingency plans formulated in order to deal with threats presented by the environment.

Strengths

Strategy: established differentiation strategy. Structure: flat, decentralized structure. Skills: diverse range of service skills within management and staff. Style: strong, participative culture. Staff: specialized and experienced staff that are motivated and highly skilled. A well trained team who are proud of their hotel and respect and promote the brand values. Shared Values: clear and well communicated. Brand Strength: brand values well represented engendering brand loyalty amongst existing and new guests. Reputation: a strong reputation within the local market and corporate and travel trade markets for reliability, exemplary service and quality.

Weaknesses

Strategy: differentiation strategy needs to be more clearly communicated externally, within local and national markets. Systems: formal systems result from the detail oriented work and environment. Interdepartmental communications could be improved. Staff: seasonal turnover requires ongoing training and orientation of new staff. Facilities: certain rooms require renovation and upgrade as regards technical equipment, such as high speed Internet access and laptop links.

Opportunities

Market: returning growth after a period of slump. Competitors: no direct competition exists at present, in terms of the five star 'boutique business property' niche. Suppliers: strong, long-term relationships established with suppliers. Guest Dependency: repeat corporate business based on personal service and quality, in a small but luxurious environment.

Threats

Market Entry: potential for a competitive, global brand to enter the market with a similar product. Substitutes: fully furnished and serviced business apartments offering lower daily rates. Economy: recovery from slight recession may take time.

Historical Results

Marketing activity in previous years, has produced positive results. The areas that have produced the best results have been:

Service: high-quality facilities accompanied by exemplary personal service, differentiated from competition, in line with the overall brand strategy has proven to be a successful approach generating high levels of repeat business. Price: pricing strategy has been consistent with the differentiation objective, to provide added value for a reasonable rate as opposed to discounting and devaluing our products and services. Place: service information is provided to the guest via personal selling, direct marketing, advertising and the Internet. Delivery channels include travel agents and international reservations systems. Promotion: primary focus has been on mass communication via print ads in trade publications and on the Internet, direct mail campaigns to existing and prospective clients and personal selling in the local market. Personal selling provides the means to develop relationships within the local community and generate high levels of corporate activity through the business community. Public relations plays an important role in the marketing mix, presenting the hotel as a supportive member of the community and participating in significant local events to assist in developing ongoing cooperation, assures repeat business and good working relationships.

Historical Data

Variable 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

2003

2004 $115,000,000 3% $3,450,000 $80,000,000 $2,700,000 $35,000,000 $750,000 $650,000 $100,000

$100,000,000 $110,000,000 2% $2,000,000 $70,000,000 $1,500,000 $30,000,000 $500,000 $300,000 $200,000 2% $2,200,000 $80,000,000 $1,700,000 $30,000,000 $500,000 $350,000 $150,000

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

Direct Competition

Hilton, Notown: 5 star city hotel, room rates on par with Riverview, older facilities. Marriott, Notown: 5 star city hotel, room rates approximately 10% higher than Riverview, facility only four years old. Glendale Apartments, Notown: 5 star furnished apartments, daily rates vary between Riverview's double deluxe and suite rates. Hyatt Residence, Notown: 5 star furnished apartments, daily rates 15% higher than Riverview's double deluxe rates.

These properties offer similar facilities, although somewhat less focused on business needs, and incorporate more leisure facilities than we currently provide.

Growth and Share

Competitor 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%

Average Total Competitive Analysis

$110.00 $550.00

6.50% 32.50%

20.00% 100.00%

#1 Competitor Hilton

#2

#3

#4

#5

#6 Name me

Marriot Glendale

Hyatt Riverview

Product and/or Service Quality Selection Price Other

Hilton 6 5 6 0

Marriot Glendale 7 7 6 0 4 5 6 0

Hyatt Riverview 8 6 6 0 9 9 8 0

Name me 0 0 0 0

Location and Physical Appearance Traffic Appearance

Hilton 4 4

Marriot Glendale 5 7 7 6

Hyatt Riverview 7 8 8 9

Name me 0 0

Visibility Convenience Factors Other

7 7 0

6 6 0

7 6 0

9 8 0

8 9 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 Glendale 5 8 7 9 9 8 0 0 4 6 5 6 4 4 0 0

Hyatt Riverview 7 9 8 8 8 9 0 0 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 Glendale 0 0 0 0 0 0 90 0 0 0 0 0 0 70

Hyatt Riverview 0 0 0 0 0 0 101 0 0 0 0 0 0 113

Name me 0 0 0 0 0 0 0

Indirect Competition
Riverview's indirect competition is "distance" meetings in the corporate world. The more companies decide to conduct meeting over the phone, using web conferencing technology, and video phone technology, the less business people travel and the more it affects Riverview Hotel. Riverview has to keep abreast of all new distance meeting technology, and continue to reinforce with clients that there is no better way to do business then face to face.

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