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.

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 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.

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.

2.2 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 Analysis
to the proximity of the Exhibition Halls, Overall Motors
Market
2005
and Silicone Hill, USA.
2006
2007
Key to our business success is the level of customer
2008loyalty and repeat business we receive on an
annual basis. We offer our guests the most up-to-date
2009 technical business facilities, both inside the
Potential Customers
rooms and within the hotel's conference facilities.
Growth

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.
Table: Market Analysis

CAGR

Travel
7%
1.000
1.071
1.147
1.228
1.315
IT Industry
8%
1.200
1.296
1.400
1.512
1.633
Automotive
10%
1.500
1.643
1.799
1.970
2.157

7,09%

8,01%

9,51%

Total
8,38%
3.700
4.010
4.346
4.710
5.105

8,38%

Market Analysis (Pie)

ffd8ffe000104a4649460001020100c800c80000ffe2ffff4943435f50524f46494c450001020001919
64b434d53020000006d
6e74725247422058595a2007d80
ffd8ffe000104a4649460001020100c800c8
0090011000e00290010
616373704d53465400000000465
343004c4c2033000000 0000ffe2ffff4943435f50524f46494c4500010 0000000000000000000000f6d50
00100000000d32b4b4f 2000191964b434d53020000006d6e747252 444100000000000000000000000
0000000000000000000 47422058595a2007d800090011000e00290 000000000000000000000000000
0000000000000000000 010616373704d5346540000000046534300 00000016637072740000018c000
4c4c2033000000000000000000000000000
0004877747074000001 0f6d5000100000000d32b4b4f44410000000 d4000000144b303136000001e80
00000714b3031370000 00000000000000000000000000000000000 025c0000000c4b3033310000026
80000000c4b30303700 00000000000000000000000000000000000 000274000000b0646d6e6400000
32400000068646d6464 0000000000000000016637072740000018c 0000038c0000008364657363000
004100000009b4b3032 0000004877747074000001d4000000144b3 310000025c0000000c4b3032350
00004ac0000000c4b30 03136000001e8000000714b303137000002 3330000004b80000000c7258595
a000004c40000001467 5c0000000c4b303331000002680000000c4 58595a000004d80000001462585
95a000004ec00000014 b30303700000274000000b0646d6e640000 725452430000050000000016675
4524300000500000000 032400000068646d64640000038c0000008 166254524300000500000000164
1324230000005180000 364657363000004100000009b4b30323100 c6344b3037300000cb4c0000000
a423241300000cb5800 00025c0000000c4b303235000004ac00000 00c6344b3037310001918c00000
00c4b303330000004b80000000c7258595a
00a7465787400000000 000004c4000000146758595a000004d8000 436f70797269676874202863292
0456173746d616e204b 000146258595a000004ec00000014725452 6f64616b20436f6d70616e792c20
323030382c20616c6c2 43000005000000001667545243000005000 072696768747320726573657276
65642e0058595a2000Tr 00000166254524300000500000000164132 avel

4230000005180000c6344b3037300000cb4 ffd8ffe000104a4649460001020100c800c80000f
fe2ffff4943435f50524f46494c450
c0000000a423241300000cb580000c6344b 00102000191964b434d53020000006d6e74725
247422058595a2007d800090011
000e00290010616373704d5346540000000046
5343004c4c20330000000000000 3037310001918c0000000a7465787400000 000000000000000f6d5000100000000d32b4b4f
444100000000000000000000000 000436f7079726967687420286329204561 00000000000000000000000000000000000000
000000000000000000000000000 73746d616e204b6f64616b20436f6d70616e 00000016637072740000018c00000048777470
74000001d4000000144b3031360
00001e8000000714b3031370000025c0000000
c4b303331000002680000000c4b 792c20323030382c20616c6c20726967687 30303700000274000000b0646d6e6400000324
00000068646d64640000038c000 4732072657365727665642e0058595a2000 0008364657363000004100000009b4b3032310
000025c0000000c4b3032350000
04ac0000000c4b303330000004b80000000c72
58595a000004c4000000146758595a000004d8000000146258595a000004ec0000001472545243000005000000001667545243000005000
000001662545243000005000000001641324230000005180000c6344b3037300000cb4c0000000a423241300000cb580000c6344b303731
0001918c0000000a7465787400000000436f707972696768742028632920456173746d616e204b6f64616b20436f6d70616e792c20323030
382c20616c6c207269676874732072657365727665642e0058595a2000IT Industry
ffd8ffe000104a4649460001020100c800c80000ffe2ffff4943435f50524f46494c45000102000191964b434d53020000006d6e747252474220
58595a2007d800090011000e00290010616373704d53465400000000465343004c4c20330000000000000000000000000000f6d50001000
00000d32b4b4f44410000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
16637072740000018c0000004877747074000001d4000000144b303136000001e8000000714b3031370000025c0000000c4b30333100000
2680000000c4b30303700000274000000b0646d6e640000032400000068646d64640000038c0000008364657363000004100000009b4b30
32310000025c0000000c4b303235000004ac0000000c4b303330000004b80000000c7258595a000004c4000000146758595a000004d8000
000146258595a000004ec000000147254524300000500000000166754524300000500000000166254524300000500000000164132423000
0005180000c6344b3037300000cb4c0000000a423241300000cb580000c6344b3037310001918c0000000a7465787400000000436f707972
696768742028632920456173746d616e204b6f64616b20436f6d70616e792c20323030382c20616c6c207269676874732072657365727665
642e0058595a2000Automotive

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 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 familyrun 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.

ffd8ffe0
00104a4
6494600
0102010
0c800c8
0000ffe2f
fff494343
5f50524f
46494c4
5000102 Business
0001919
64b434d
5302000 regards
0006d6e significant drop
7472524 business
result and
7422058
595a200
Local Business Trends: There has been a period of low activity in the area 7d80009 of conferencing
and business catering with local companies electing to conduct meetings and 0011000 seminars on
their own premises in order to cost cut. This is changing however as group e002900 bookings,
incoming visitors and day use of conference facilities is on the increase.
1061637
3704d53 past three
Economic Cut Backs: The city cancelled three major trade events over the
months, and exhibitions held at the halls had attendance figures much lower 4654000 than
0000046 including
expected. All booked events for the upcoming 12 month period however,
the Motor Show and the Northwest Tech Exhibition, have pre-booked
5343004 attendance
figures in line with expectations and in some cases in excess of projections. c4c2033
0000000
0000000
Market Analysis (Trends)
0000000
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6d50001
2500,0
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0d32b4b
2000,0
4f444100
0000000
1500,0
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ffd8ffe000104a4649460001020100c800c80000ffe2ffff4943435f50524f46494c45000102000000000
0191964b434d53020000006d6e74725247422058595a2007d800090011000e00290010616
0000000
373704d53465400000000465343004c4c20330000000000000000000000000000f6d500010
1000,0
0000000d32b4b4f44410000000000000000000000000000000000000000000000000000000
0000000
00000000000000000000000000000000000000016637072740000018c0000004877747074
000001d4000000144b303136000001e8000000714b3031370000025c0000000c4b30333100000000
500,0
00002680000000c4b30303700000274000000b0646d6e640000032400000068646d646400
0000000
00038c0000008364657363000004100000009b4b3032310000025c0000000c4b303235000
004ac0000000c4b303330000004b80000000c7258595a000004c4000000146758595a00000000000
04d8000000146258595a000004ec000000147254524300000500000000166754524300000
,0
5000000001662545243000005000000001641324230000005180000c6344b3037300000cb0000000
4c0000000a423241300000cb580000c6344b3037310001918c0000000a7465787400000000000000
0436f707972696768742028632920456173746d616e204b6f64616b20436f6d70616e792c20
0000000
323030382c20616c6c207269676874732072657365727665642e0058595a2000
Travel IT Industry
Automotive
0000000
0000000
0166370
7274000
0018c00
0000487
7747074
000001d
4000000
144b303
1360000
01e8000
000714b
3031370
000025c
0000000
c4b3033
3100000
Market Demographics
Market Segments
Characteristic
Characteristic
Characteristic
Characteristic
Table: Market Demographics
Travel
2.2.2 Market Trends
IT Industry
Market trends can be categorized as follows: Corporate Travel
- Policies, Local
Trends, and Economic Cut Backs.
Corporate Travel Policies: As a result of various security issues,
as
travelling in both domestic and international
markets,
there
has
been
a
Automotive
in corporate guests visiting the city. Although the level of corporate
room
appears to be increasing again, it has had a significant affect- on last year's
consequent projections for the future.
-

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)

2.2.4 Macroenvironment
The external,
ffd8ffe000104a4649460001020100c800c80000ffe2ffff4943435f50 environmental
issues that
524f46494c45000102000191964b434d53020000006d6e74725247 affect the
Riverview Hotel 422058595a2007d800090011000e00290010616373704d5346540 are:
a

0000000465343004c4c20330000000000000000000000000000f6d

Political: a stable
5000100000000d32b4b4f444100000000000000000000000000000 environment
where little affects our 00000000000000000000000000000000000000000000000000000 ability to
generate revenue.
g

00000000000016637072740000018c0000004877747074000001d
Economic: the recent 4000000144b303136000001e8000000714b3031370000025c0000 recession has
000c4b303331000002680000000c4b30303700000274000000b06 business-oriented
seen many smaller
46d6e640000032400000068646d64640000038c00000083646573 liquidation, as
hotel chains go into
63000004100000009b4b3032310000025c0000000c4b303235000 the infrastructure
they do not possess
004ac0000000c4b303330000004b80000000c7258595a000004c40 performing
to support underproperties as the larger 00000146758595a000004d8000000146258595a000004ec000000 chains do.
Although recovery is
14725452430000050000000016675452430000050000000016625 beginning, it may
take some time before 45243000005000000001641324230000005180000c6344b303730 corporate travel
policy restrictions are 0000cb4c0000000a423241300000cb580000c6344b303731000191 fully lifted and
business travel returns
8c0000000a7465787400000000436f707972696768742028632920 to the same
levels of the past three
y
years.
456173746d616e204b6f64616b20436f6d70616e792c2032303038
2c20616c6c207269676874732072657365727665642e0058595a20 towards cost
Social: the trend
00
effective business
travel leads hotel
guests to seek more value for money, which is where our added value differentiation strategy comes into play.
g
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.

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 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.

2.3.2 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.

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.

2.3.4 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.

2.3.4.1 Strengths
2
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.
p
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.

2.3.4.2 Weaknesses
2
Strategy: differentiation strategy needs to be more clearly communicated externally, within local and national
m
markets.
Systems: formal systems result from the detail oriented work and environment. Interdepartmental
communications could be improved.
c
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
2
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.
n
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
2
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.

2.3.5 Historical Results

Marketing activity in previous years, has produced positive results. The areas that have produced
tthe 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.
b
Price: pricing strategy has been consistent with the differentiation objective, to provide added value for a
rreasonable 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
IInternet. 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
Historical Data
relationships.
Variable

Table: Historical Data

Industry Revenue

2002
2003
2004

$100.000.000
$110.000.000
$115.000.000
Company Market Share
2%
2%
3%
Company Revenue
$2.000.000
$2.200.000
$3.450.000
Industry Variable Costs
$70.000.000
$80.000.000
$80.000.000
Company Variable Costs
$1.500.000
$1.700.000
$2.700.000
Industry Gross Contribution Margin
$30.000.000
$30.000.000
$35.000.000
Company Gross Contribution Margin
$500.000
$500.000
$750.000
Marketing Expenses
$300.000
$350.000
$650.000
Company Net Contribution Margin
$200.000
$150.000
$100.000

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.

2.4.1 Direct Competition

2
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.
y
Glendale Apartments, Notown: 5 star furnished apartments, daily rates vary between Riverview's double
deluxe and suite rates.
d
Hyatt Residence, Notown: 5 star furnished apartments, daily rates 15% higher than Riverview's double
deluxe rates.
Growth and Share
Competitor

These properties offer similar facilities,

although somewhat less focused on business needs, and
Price
incorporate more leisure facilities Growth
than we
currently provide.
Rate
Market Share
Hilton
$105
Table: Growth and Share Analysis
6%
20%
Marriot
$115
8%
33%
Glendale Apts
$105
Competitive Analysis
6%
#1
5%
#2
Hyatt Residence
#3
$120
#4
5%
#5
12%
#6
RiverviewCompetitor
Hotel
$105
Hilton
8%
Marriot
30%
Glendale
Average
Hyatt
$110,00
Riverview
6,50%
Name me
20,00%and/or Service
Product
Total
Hilton
$550,00
Marriot
32,50%
Glendale
100,00%
Hyatt
Riverview
Name me
Quality
6
7
4
8
9
0
Selection
5
7
5
6
9
0
Price
6
6
6
6
8
0
Other
0
0
0
0
0
0

Hilton
Marriot
Glendale
Hyatt
Riverview
Name me

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00104a4
6494600
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Traffic
0c800c8
4
5
Riverview Hotel
0000ffe2f
7
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7
8
5f50524f
Table: Competitive Analysis
0
46494c4
Appearance
4
5000102
7
Competitor by Growth and Share
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6
8
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5302000
0
Visibility
0006d6e
7
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9
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%
8
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0
Convenience Factors
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7
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6
6
%
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0
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Other
7
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0
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6
0
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Added Value Factors
%
Hilton
0000000
Marriot
0000000f
Glendale
Hyatt
6d50001
5
Riverview
0000000
Name me
%
Pre and Post Sales Service
0d32b4b
3
4f444100
5
4
0000000
4
7
0000000
9
%
0000000
0
Experience
0000000
7
0000000
8
86 88 90 92 94 96 98 100102
6
0000000
ffd8ffe000104a4649460001020100c800c80000ffe2ffff4943435f50524f46494c45000102000191964
9
b434d53020000006d6e74725247422058595a2007d800090011000e00290010616373704d5346540
0000000
9
0000000465343004c4c20330000000000000000000000000000f6d5000100000000d32b4b4f444100
Hilton Marriot
0
0000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000
Expertise
Glendale Apts
00000000000016637072740000018c0000004877747074000001d4000000144b303136000001e800
0000000
6
0000714b3031370000025c0000000c4b303331000002680000000c4b30303700000274000000b064
7
Hyatt Residence 6d6e640000032400000068646d64640000038c0000008364657363000004100000009b4b30323100
0000000
5
Riverview Hotel 00025c0000000c4b303235000004ac0000000c4b303330000004b80000000c7258595a000004c4000
0000000
8
000146758595a000004d8000000146258595a000004ec00000014725452430000050000000016675
9
45243000005000000001662545243000005000000001641324230000005180000c6344b303730000
0000000
0
0cb4c0000000a423241300000cb580000c6344b3037310001918c0000000a7465787400000000436f
0000000
Reputation
707972696768742028632920456173746d616e204b6f64616b20436f6d70616e792c20323030382c2
0616c6c207269676874732072657365727665642e0058595a2000
5
0166370
9
7274000
6
8
0018c00
9
0000487
0
Image
7747074
6
000001d
9
4
4000000
8
144b303
8
0
1360000
Stability
01e8000
6
000714b
8
4
3031370
9
000025c
9
0
0000000
Strategic Alliances
c4b3033
0
0
3100000

0
0
0
Other

2.4.2 Indirect

Competition
Other Marketing Activities

0
0
0
0
0
0

Riverview's indirect competition is "distance" meetings in theHilton

corporate world. The more companies
Marriot technology, and video phone
decide to conduct meeting over the phone, using web conferencing
Glendale
technology, the less business people travel and the more it
affects Riverview Hotel. Riverview has to
Hyatt
keep abreast of all new distance meeting technology, andRiverview
continue to reinforce with clients that there is
no better way to do business then face to face.
Name me
Established Sales Channels

3.0 Marketing Strategy

0
0
0

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 as 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 with our customers and suppliers and to identify the needs of our guests in an effective
manner. Continued 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 traveler. We include
business essentials in every room, such as a nice 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.

3.2 Critical Issues

We have many strengths including our differentiation strategy, our flat structure and highly skilled and
well trained staff. Our weaknesses involve the need to communicate our strategy more clearly in the
external environment, our high staff turnover and training requirements due to seasonal fluctuations.
Although there is a low to medium threat of a competitive brand entering the market, there are also
opportunities as regards the high level of dependency of our guests for our particular service and our
strong position within the community with both customers and suppliers.
Critical issues for the Riverview include:
C
C
Continuing
to differentiate from our competition and offering added value to our guests.
Retaining our current levels of repeat business and developing further customer loyalty in a competitive
m
market.
Attract new market sectors such as the Notown University-based business sector.
A
Continue to be perceived as a supportive member of the Notown community.

3.3
3

Financial Objectives

I
Increase
overall room revenue by 10% on the past year.
Accomplish growth within the given budget of $250,000.
A
IIncrease 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.

3.4
3

Marketing Objectives

T continue to communicate our strategic objectives to our target markets effectively.

To
To provide a positive hotel experience to all our guests.
T
To accomplish our growth targets within the given time and budget.
T
Expand our markets and identify new markets for our product and services.

3.5 Target Market Strategy

Our primary targets continue to be professional visitors to the region from the following industries,
where annual corporate contracts can be entered into:
w
T
Travel
trade;
IIT industry;
Automotive.
Local firms will be targeted for day use of conference facilities, room nights for visiting executives
and long stay professional guests.

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.

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

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:
W
T
The
Best Business facilities
Personalized Services
P
Luxurious Amenities
Strategy Pyramid

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 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
i
included:
Corporate single ffd8ffe000104a4649460001020100c800c80000ffe2ffff4943435f50524f46494c4500010
$
$95.00;
2000191964b434d53020000006d6e74725247422058595a2007d800090011000e00290 Corporate double 010616373704d53465400000000465343004c4c2033000000000000000000000000000 $125.00;
$
0f6d5000100000000d32b4b4f4441000000000000000000000000000000000000000000
Corporate double
000000000000000000000000000000000000000000000000000016637072740000018c
deluxe $ 175.00;
0000004877747074000001d4000000144b303136000001e8000000714b303137000002
5c0000000c4b303331000002680000000c4b30303700000274000000b0646d6e640000 Corporate suite $225.00 032400000068646d64640000038c0000008364657363000004100000009b4b30323100 (maximum occupancy
2
00025c0000000c4b303235000004ac0000000c4b303330000004b80000000c7258595a0 persons).
00004c4000000146758595a000004d8000000146258595a000004ec000000147254524
3000005000000001667545243000005000000001662545243000005000000001641324 Conference room
230000005180000c6344b3037300000cb4c0000000a423241300000cb580000c6344b30 rates are net of tax
37310001918c0000000a7465787400000000436f7079726967687420286329204561737 and service, quoted
46d616e204b6f64616b20436f6d70616e792c20323030382c20616c6c207269676874732 per day use with tea
072657365727665642e0058595a2000
and coffee breaks (2)
i
included:
The Riverview Boardroom - $260.00;
The Riverview Conference Hall - $320.00;
The Riverview Ballroom - $875.00.

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.

Riverview Hotel
4.3.1 Advertising
Milestones The following table shows our primary advertising 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 1/5/2005
End Date 1/4/2005 28/3/2005 1/8/2005
Table: Advertising Milestones
Budget $20.000 $11.000 $2.000 $33.000
Manager Geoff Geoff Sally
Department Marketing Marketing Marketing

4.3.2 Public
Relations
Milestones
PR Start Date End Date Budget Manager Department Public relations functions to schedule 1/2/2005 1/3/2005 $0 Anne PR Evaluate
sponsorship requests 1/3/2005 1/4/2005 $0 Anne PR Establish list of sponsorship $6.000
1/4/2005 1/6/2005 Anne PRevents/companies

Total table
PR Budget
$6.000
The following
shows
our primary PR milestones.

4.3.3 Direct Marketing

Table: PR Our
Milestones
direct marketing will be handled by our PR agency. We will buy select targeted list of corporate

companies and send them information about Riverview Hotel. We know that we are no experts in
direct marketing so it will be important that our PR agency handles every aspect of direct marketing
for us.
Table: Direct Marketing Milestones

Total Direct Marketing Budget $13.000

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.New home page design and navigation
2.Online reservations capability
3.Printable brochure
Milestones

Direct Marketing Direct mail lists to purchase/prepare Ad agency liason on direct mail material
Start Date 1/2/2005 1/3/2004
End Date 1/3/2005 1/3/2005
Budget $6.000 $7.000
Manager Sally Sally
Department Marketing Marketing

4.4.1 Website Goals

Our website needs to be able to do the following:
1.Convey our messaging of high quality, luxury business accommodations
2.Be indexed on major travel websites so that people find us
3.Be able to take reservations online and make changes to reservations 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.

4.4.3 Development Requirements

To attain the level of interactivity we want in our redesign, we need to increase the features allowed
(security for reservations and credit-card processing, daily back-ups, and real-time database linking)
and service-level of our hosting service. This will slightly increase our monthly hosting fee.
Sally has contracted with a database developer to update our reservations system to be compatible
with the online reservation requirements. The new website will be ready to launch in April.
Table: Pay-per-click ROAS

Table: Website Milestones

Pay-Per-Click ROAS
Network Google Yahoo! Other Total
Monthly Cost $3.000 $2.000 $500 5500
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-per?click $5,00 $6,67 $5,00 $5,56
Cost-per?lead $40,00 $50,00 $16,67 $35,56

Milestones
Web Development Homepage Re-design Printable Brochures Online reservations Total Web Development Budget
Start Date 1/1/2005 1/1/2005 1/1/2005
Milestones
End Date 15/1/2005 15/1/2005 15/1/2005
Advertising
Budget $1.000 $2.000 $6.000 $9.000
Start Date
Manager Shelly Shelly Shelly
End Date
Department Marketing Marketing Marketing
Budget
Manager
Department
Contract media space
1/1/2005
1/4/2005
$20.000
Geoff
Marketing
Ad agency liasonon print ad material
1/1/2005
28/3/2005
$11.000
Geoff
Marketing
Dispatch/monitor campaign results
1/5/2005
1/8/2005
$2.000
Sally
Marketing
Total Advertising Budget

$33.000

PR

Start Date
End Date

Budget

Riverview Hotel

Manager
Department
Public relations functions to schedule
1/2/2005
4.5 Service
1/3/2005
$0
Our hotel provides guests with an alternative to the impersonal, large
five star properties in the city.
Anne
PR of the business community and
Strategically located, our property enables our guests to be at the heart
Evaluate sponsorship requests
yet in an environment of calm and
professionalism. We seek to differentiate our product and services in
1/3/2005
tthe following areas:
1/4/2005
$0
Personal recognition of our frequent travelers who return time and again. Anne
P
PR
Luxurious rooms that offer a sense of doing business from 'home.'
L
Establish list of sponsorship events/companies
Staff that have a strong customer-service ethic.
S
1/4/2005
Business facilities second to none in town.
1/6/2005
$6.000
Anne
4.6 Implementation Schedule
PR
Total PR Budget

New marketing campaign efforts will be focused from January through April, aimed at the launch of the
redesigned website in April. We will continue to track the results of this campaign for the remainder of
the year.
$6.000
Table: Milestones

Direct Marketing

Start Date

Budget

End Date

Manager
Department
Direct mail lists to purchase/prepare
1/2/2005
1/3/2005
$6.000
Sally
Marketing
Ad agency liason on direct mail material
1/3/2004
1/3/2005
$7.000
Sally
Marketing
Total Direct Marketing Budget

$13.000

Web Development
Start Date
Budget

End Date
Manager
Department

Homepage Re-design
1/1/2005
$1.000

15/1/2005
Shelly
Marketing

Printable Brochures
1/1/2005
$2.000

15/1/2005
Shelly
Marketing

Online reservations
1/1/2005
$6.000

15/1/2005
Shelly
Marketing

Total Web Development Budget

$9.000

Other

Start Date
End Date

Budget

Manager
Department
Name me

4.7 Sales Plan

1/1/2006
15/1/2006

$0

ABC

Our sales plan hinges upon our sales strategy, sales process and,
prospecting plan. As long as we
Department
follow the plans laid below we should
be in good shape.
Name me
1/1/2006

15/1/2006

$0

ABC
Department

4.7.1 Sales Strategy

Name me

1/1/2006

Riverview Hotel's sales strategy hinges upon repeat visits by key

corporate accounts. We need to
15/1/2006
develop a relationship with the companies
listed in our Sales Account Plan, as well as actively generate
$0
ABC
new accounts by soliciting first time corporate visitors.
Department

Other

It will be important to remain competitive on price,

as well as amenities. The corporate accounting
1/1/2006
department wants to make sure they limit the amount of money
spent per night per employee on a
15/1/2006
$0
business trip, but the business traveler
will be able to express preference. If the price is right, and
ABC
the business traveler knows that they will have all amenities they need
while at the Riverview Hotel,
Department
we will be assured of keeping and
attracting
key accounts.
Total
Other Budget

$0

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
Totals
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.
$61.000
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.

Table: Sales Account Plan

Sales Account Plan

Target Accounts Company A Company B Company C
History disappointed w/ current referral from Jack request on 12/15
Status proposal made designing proposal drafting response
Annual Sales Potential $20.000 $15.000 $10.000
Key Account Manager Geoff Geoff Sally
Existing Key Accounts Company 1 Company 2 Other Total
History 3 years 5 annual conferences Status Stable check next month Annual Sales Potential $40.000 $60.000 $0 $145.000
Key Account Manager Sally Geoff -

4.7.3 Prospecting Plan

Whenever a new customers stays at our hotel we need to be able to determine whether it is for leisure or
business. If it is for business -- we need to make sure to get the customers business name and address so that
we can send a corporate packet to the company letting them know about corporate pricing and special
business amenities.

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.

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 F
$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 Break-even
145 $19.929
Assumptions: Average Per-Unit Revenue Average Per-Unit Variable Cost Estimated Monthly Fixed Cost
$137,14 $13,28 $18.000

Riverview Hotel
Sales Forecast
FY 2006
FY 2007
Break-even
Analysis
FY 2008
Unit Sales
ffd8ffe000104a4649460001020100c800c80000ffe2ffff4943435f50524f464
94c45000102000191964b434d53020000006d6e74725247422058595a200
7d800090011000e00290010616373704d53465400000000465343004c4c2
Corporate Single
0330000000000000000000000000000f6d5000100000000d32b4b4f444100
1.925
000000000000000000000000000000000000000000000000000000000000
2.118
0000000000000000000000000000000016637072740000018c0000004877
2.118
Corporate Double
747074000001d4000000144b303136000001e8000000714b303137000002
3.665
5c0000000c4b303331000002680000000c4b30303700000274000000b064
4.032
6d6e640000032400000068646d64640000038c0000008364657363000004
4.032
Corporate Deluxe
100000009b4b3032310000025c0000000c4b303235000004ac0000000c4b
2.695
303330000004b80000000c7258595a000004c4000000146758595a000004
2.965
2.965
d8000000146258595a000004ec0000001472545243000005000000001667
Corporate Suite
545243000005000000001662545243000005000000001641324230000005
268
180000c6344b3037300000cb4c0000000a423241300000cb580000c6344b
294
294
3037310001918c0000000a7465787400000000436f707972696768742028
Total Unit Sales
632920456173746d616e204b6f64616b20436f6d70616e792c20323030382
8.553
c20616c6c207269676874732072657365727665642e0058595a2000
9.409
Unit Prices

Monthly
break-even point
9.408
FY 2006

FY 2007
Break-even point
= where line intersects with 0

5.2 Sales Forecast

FY 2008

Corporate Single

$95,00

Room revenue for this year is based on an$95,00

average growth rate of 10%. This is based on the number of
$99,00
pre-contracted corporate
rooms,
and
an
anticipated
return to business levels projected.
Corporate Double
Table: Sales Forecast

Corporate Deluxe

$175,00
$175,00
$195,00

Corporate Suite

$225,00
$225,00
$240,00

Sales

Corporate Single

$182.875
$201.210
$209.633

Corporate Double

Corporate Deluxe

Corporate Suite

Total Sales

$125,00
$125,00
$135,00

$458.125
$504.000
$544.253
$471.625
$518.875
$578.175
$60.300
$66.150
$70.560

$1.172.925
$1.290.235
$1.402.620

Direct Unit Costs

Corporate Single

Corporate Double

FY 2006
FY 2007
FY 2008
$7,86
$11,00
$11,00

$13,50
$13,50
Corporate Deluxe

Corporate Suite

$17,50
$18,50
$18,50
$0,84

$0,00
Riverview
Hotel
$0,00

Direct Cost of Sales

Sales Monthly

5.3
Expense
Forecast

ffd8ffe000104a4649460001020100c800c80000ffe2ffff4943435f50524f46494c450001020
Corporate Single
00191964b434d53020000006d6e74725247422058595a2007d800090011000e002900106
$15.138
$23.298
16373704d53465400000000465343004c4c20330000000000000000000000000000f6d50
$23.293
00100000000d32b4b4f44410000000000000000000000000000000000000000000000000
Corporate Double
00000000000000000000000000000000000000000000016637072740000018c000000487
$51.033
$54.432
7747074000001d4000000144b303136000001e8000000714b3031370000025c0000000c4
$54.425
b303331000002680000000c4b30303700000274000000b0646d6e6400000324000000686
Corporate Deluxe
46d64640000038c0000008364657363000004100000009b4b3032310000025c0000000c4
$47.163
$54.853
b303235000004ac0000000c4b303330000004b80000000c7258595a000004c4000000146
$54.853
758595a000004d8000000146258595a000004ec000000147254524300000500000000166
Corporate Suite
$225
7545243000005000000001662545243000005000000001641324230000005180000c6344
$0
b3037300000cb4c0000000a423241300000cb580000c6344b3037310001918c0000000a7
$0
465787400000000436f707972696768742028632920456173746d616e204b6f64616b2043
Subtotal Direct Cost of Sales
$113.558
6f6d70616e792c20323030382c20616c6c207269676874732072657365727665642e00585
$132.583
95a2000
$132.570

Marketing expenses are projected to be approximately 8.5% of overall annual revenue. The breakdown
of expenditures is as follows:
Marketing Expense Budget
FY 2006
FY 2007

Table: Marketing Expense Budget

Print Advertising
$10.600
$11.600

$6000,0 $5000,0 $4000,0 $3000,0 $2000,0

$1000,0 $,0

Monthly Expense Budget

Internet Advertising
$21.000
$23.100
Public Relations
$6.000
$6.600
Other

Print Advertising Internet Advertising

$21.000
$23.100

Public Relations Other

FY 2008

$12.826

$25.410

$7.260

$25.410

-----------?
-----------?
-----------?
Total Sales and Marketing Expenses
$58.600
$64.400
ffd8ffe000104a4649460001020100c800c80000ffe2ffff4943435f50
$70.906
524f46494c45000102000191964b434d53020000006d6e74725247
Percent of Sales
5,00%
422058595a2007d800090011000e00290010616373704d5346540
4,99%
0000000465343004c4c20330000000000000000000000000000f6d
5,06%

5000100000000d32b4b4f44410000000000000000000000000000
00000000000000000000000000000000000000000000000000000
000000000000016637072740000018c0000004877747074000001
d4000000144b303136000001e8000000714b3031370000025c000
0000c4b303331000002680000000c4b30303700000274000000b0
646d6e640000032400000068646d64640000038c0000008364657
363000004100000009b4b3032310000025c0000000c4b30323500
0004ac0000000c4b303330000004b80000000c7258595a000004c
4000000146758595a000004d8000000146258595a000004ec0000
00147254524300000500000000166754524300000500000000166
2545243000005000000001641324230000005180000c6344b3037
300000cb4c0000000a423241300000cb580000c6344b303731000
1918c0000000a7465787400000000436f707972696768742028632
920456173746d616e204b6f64616b20436f6d70616e792c2032303
0382c20616c6c207269676874732072657365727665642e005859
5a2000

5.4 Linking Expenses to

Strategy and Tactics

Our marketing expense is structured to reflect the corporate strategy differentiation. Quarterly travel
trade publications and interim monthly press ads communicate our message to key corporate clients in
one of our most significant target markets. Monthly Internet advertising expenses include banner ads,
and strategic links with car hire, airline and destination management companies' websites to drive
business to the hotel. Direct mail activity builds our targeted customer database, not only in terms of
improving the quality of the data we currently hold, but on increasing the size of the database with
prospective customer information. Public relations expenses cover PR events, participation at local
functions and sponsorship funds. Overall, the percentage of total revenue required to support the
marketing expense is considered a moderate amount.

Sales vs. Expenses Monthly

5.5 Contribution Margin
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Contribution margins should increase due to:
C
D
Differentiation/focus
strategy increases ability to specialize.
Maintenance of expenses within specified levels.
M
IIncreased efficiency in capacity utilization.
Economies of scale due to increased purchasing efficiencies.

Riverview Hotel
Table: Contribution Margin
Contribution Margin
FY 2006 FY 2007 FY 2008
Sales $1.172.925 $1.290.235 $1.402.620
Direct Cost of Sales $113.558 $132.583 $132.570 Other Costs of Sales $0 $0 $0
Total Cost of Sales $113.558 $132.583 $132.570
Gross Margin $1.059.368 $1.157.653 $1.270.050 Gross Margin % 90,32% 89,72% 90,55%
Marketing Expense Budget FY 2006 FY 2007 FY 2008 Print Advertising $10.600 $11.600 $12.826 Internet Advertising $21.000 $23.100 $25.410
Public Relations $6.000 $6.600 $7.260 Other $21.000 $23.100 $25.410
Total Sales and Marketing Expenses $58.600 $64.400 $70.906 Percent of Sales 5,00% 4,99% 5,06%
Contribution Margin $1.000.768 $1.093.253 $1.199.144 Contribution Margin / Sales 85,32% 84,73% 85,49%

Contribution Margin Monthly

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.
ffd8ffe000104a4649460001020100c800c80000ffe2ffff4943435f5052

4f46494c45000102000191964b434d53020000006d6e74725247422

Our marketing 058595a2007d800090011000e00290010616373704d534654000000 team will

ensure that
00465343004c4c20330000000000000000000000000000f6d5000100 the plan is
implemented 000000d32b4b4f44410000000000000000000000000000000000000 to the best of
their ability
0000000000000000000000000000000000000000000000000000000 and with the
highest levels
0016637072740000018c0000004877747074000001d4000000144b3 of efficiency
and accuracy.

03136000001e8000000714b3031370000025c0000000c4b30333100
0002680000000c4b30303700000274000000b0646d6e64000003240
0000068646d64640000038c0000008364657363000004100000009b
4b3032310000025c0000000c4b303235000004ac0000000c4b30333
0000004b80000000c7258595a000004c4000000146758595a000004
d8000000146258595a000004ec00000014725452430000050000000
0166754524300000500000000166254524300000500000000164132
4230000005180000c6344b3037300000cb4c0000000a42324130000
0cb580000c6344b3037310001918c0000000a746578740000000043
6f707972696768742028632920456173746d616e204b6f64616b2043
6f6d70616e792c20323030382c20616c6c2072696768747320726573
65727665642e0058595a2000

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.

6.2
6

Keys to Success

C
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.
C
Leverage our strength in the local market as a member of the community by supporting local events.
L
IIdentify 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.

6.3 Contingency Planning

Contingency plans have been made for the following unexpected developments:
C
A slower recovery from the recession than public opinion: this has been reflected in the moderate increase in
llevels of corporate business expected.
The entry into the market of a competitively aligned hotel: differentiation 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 PRSales
andForecast
marketing team of four in all advertising,
???
promotional and public relations related activities. Geoff works???
closely with the members of the team,
????
to implement and monitor the effectiveness of the marketing
plan
and evaluate results.
????
???
???
???
???
???
???
???
???
Unit Sales

Corporate Single
0%
180
175
175
160
150
175
175
125
100
160
175
175
Corporate Double
0%
280
260
375
300
280
375

200
300
375
280
Corporate Deluxe
0%
260
240
250
225
200
250
220
Appendix Table: Sales Forecast
225
175
225
200
225
Page 25 Corporate Suite
0%
10
5
45
15
5
75
60
15
3
15
5
15
Total Unit Sales

Appendix

730
680
845
700
635
875
815
645
478
700
755
695
Unit Prices
???
???
????
????
???
???
???
???
???
???
???
???
Corporate Single
$95,00
$95,00
$95,00
$95,00
$95,00
$95,00
$95,00
$95,00
$95,00
$95,00
$95,00
$95,00
Corporate Double
$125,00
Marketing Expense
Budget
$125,00
???
$125,00
???
$125,00
????
$125,00
????
$125,00
???
$125,00
???
$125,00
???
$125,00
???
$125,00
???
$125,00
???
???$125,00
Corporate Deluxe
???
Print Advertising
$2.000
$175,00
$400
$175,00
$400
$175,00
$2.000
$175,00
$300
$175,00
$300
$175,00
$2.000
$175,00
$300
$175,00
$300
$175,00
$2.000
$175,00
$300
$175,00
$300
$175,00
Internet
Advertising
Corporate Suite $1.750
$1.750
$1.750
$225,00
$1.750
$225,00
$1.750
$225,00
$1.750
$225,00
$1.750
$225,00

$1.750
$225,00
$1.750
$225,00
$1.750
$225,00
Public Relations
$225,00
$500
$225,00
$500
$500
$500
$500
$500
$500
$500
$500
Appendix Table: Marketing Expense
Budget
$500
$500
$500
Other
$1.750
Page 26
$1.750
$1.750
$1.750
$1.750
$1.750
$1.750
$1.750
$1.750
$1.750
$1.750
$1.750

Appendix

-----------?
-----------?
-----------?
-----------?
-----------?
-----------?
-----------?
-----------?
-----------?
-----------?
-----------?
-----------?
Total Sales and Marketing Expenses
$6.000
$4.400
$4.400
$6.000
$4.300
$4.300
$6.000
$4.300
$4.300
$6.000
$4.300
$4.300
Contribution Margin
Percent of Sales
???
6,01%
???
4,77%
????
3,75%
????
6,29%
???
5,04%
???
3,46%
???
5,28%
???
4,80%
???
6,53%
???
6,29%
???
4,32%
???
4,56%
Sales
$99.850
$92.250
$117.375
$95.450
$85.375
$124.125
$113.625
$89.625
$65.800
$95.450
$99.625
$94.375
Direct Cost of Sales
$9.985
$9.113
$9.150
$9.208
$8.425
$9.150
$10.013
$11.145
$6.513
$11.908
$9.850
$9.100
Other Costs of Sales
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
-----------?
-----------?
-----------?
-----------?
-----------?

-----------?
-----------?
-----------?
-----------?
-----------?
Total Cost of Sales
$9.985
$9.113
$9.150
$9.208
$8.425
$9.150
Appendix Table: Contribution $10.013
Margin
$11.145
$6.513
$11.908
$9.850
Page 27 Gross Margin$9.100
$89.865
$83.138
$108.225
$86.243
$76.950
$114.975
$103.613
$78.480
$59.288
$83.543
$89.775
$85.275
Gross Margin %
90,00%
90,12%
92,20%
90,35%
90,13%
92,63%
91,19%
87,56%
90,10%
87,52%
90,11%
90,36%
Marketing Expense Budget
???
???
????
????
???
???
???
???
???
???
???
???
Print Advertising
$2.000
$400
$400
$2.000
$300
$300
$2.000
$300
$300
$2.000
$300
$300
Internet Advertising
$1.750
$1.750
$1.750
$1.750
$1.750
$1.750
$1.750
$1.750
$1.750
$1.750
$1.750
$1.750
Public Relations
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
Other
$1.750
$1.750
$1.750
$1.750
$1.750
$1.750
$1.750
$1.750
$1.750
$1.750
$1.750
$1.750

Appendix

1.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2.0 Situation Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2.1 Market Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2.2 The Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2.2.1 Market Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.2.2 Market Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.2.3 Market Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.2.4 Macroenvironment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.3 The Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2.3.1 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2.3.2 Service Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2.3.3 Positioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2.3.4 SWOT Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2.3.4. Strengths . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.3.4. Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.3.4. Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.3.4. Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.3.5 Historical Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2.4 Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.4.1 Direct Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.4.2 Indirect Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
3.0 Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
3.1 Value Proposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
3.2 Critical Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
3.3 Financial Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
3.4 Marketing Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
3.5 Target Market Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
3.6 Messaging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
3.6.1 Branding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
3.7 Strategy Pyramids . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
4.0 Marketing Mix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
4.1 Product Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
4.2 Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
4.3 Promotion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
4.3.1 Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
4.3.2 Public Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
4.3.3 Direct Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
4.4 Web Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
4.4.1 Website Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
4.4.2 Website Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
4.4.3 Development Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
4.5 Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
4.6 Implementation Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
4.7 Sales Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
4.7.1 Sales Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
4.7.2 Sales Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
4.7.3 Prospecting Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
5.0 Financials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
5.1 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
5.2 Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
5.3 Expense Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
5.4 Linking Expenses to Strategy and Tactics . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
5.5 Contribution Margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
6.0 Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
6.1 Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

6.2 Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

6.3 Contingency Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
6.4 Marketing Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

April 2005
ffd8ffe000104a46494600010201005e005e0000ffe2ffff
4943435f50524f46494c45000102000191964b434d5302
0000006d6e74725247422058595a2007d800090011000
e00290010616373704d53465400000000465343004c4c
20330000000000000000000000000000f6d5000100000
000d32b4b4f4441000000000000000000000000000000
00000000000000000000000000000000000000000000
0000000000000000000016637072740000018c0000004
877747074000001d4000000144b303136000001e80000
This sample marketing plan 00714b3031370000025c0000000c4b303331000002680 has been made available
to users of Marketing Plan 000000c4b30303700000274000000b0646d6e64000003 Pro, marketing planning
software published by Palo 2400000068646d64640000038c0000008364657363000 Alto Software. Names,
004100000009b4b3032310000025c0000000c4b303235
locations and numbers may
have been changed, and
000004ac0000000c4b303330000004b80000000c72585
substantial portions of text
may have been omitted
95a000004c4000000146758595a000004d80000001462
from the original plan to
preserve confidentiality
58595a000004ec0000001472545243000005000000001
and proprietary information.
66754524300000500000000166254524300000500000
0001641324230000005180000c6344b3037300000cb4c
You are welcome to use this
plan as a starting
0000000a423241300000cb580000c6344b30373100019
point to create your own,
18c0000000a7465787400000000436f70797269676874 but you do not have
permission to reproduce,
2028632920456173746d616e204b6f64616b20436f6d70publish, distribute or
even copy this plan as it
616e792c20323030382c20616c6c20726967687473207 exists here.
2657365727665642e0058595a2000
Requests for reprints,
academic use, and
other dissemination of this sample plan should be emailed to the marketing department of Palo Alto
Software at marketing@paloalto.com. For product information visit our Website: www.paloalto.com or
call: 1-800-229-7526.
Copyright Palo Alto Software, Inc., 1998-2006

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.