Discuss About The Marketing Communicate Hospitality Industry.
Novotel was established in the year 1967 and presently is characterized as a midscale hotel chain. The company was first introduced in France and it is a part of the Accor Group. Presently Novotel operates in 58 countries and holds more than 400 properties. The key to this success story of Novotel is its innovation centric strategic decision making structure. The innovation and creativity can be regarded as the most important components of the brand DNA of Novotel. For instance back in the 60’s Novotel was the first hotel that introduced bedrooms with an attached bathroom and a color television (Accorhotels.group, 2018). Over time its innovative nature flourished and during the 80’s it introduced the concept of breakfast buffet and during the 90’s it further introduced contemporary art in the bedrooms. This zeal of innovativeness of the organization has helped it to achieve the present growth path. The report will briefly elaborate and develop a marketing campaign for Novotel Hotel in Auckland airport. In order to do so, a basic analysis of the market and the target audience is necessary to be performed. The market analysis will be done with the help of secondary data and numerous effective and efficient tools. On the basis of the results of the analysis the integrated marketing communication strategies for the campaign will be designed. As a marketing manager of the organization it is quite easy to develop a proper understanding about the key customer base of the hotel and what satisfies customers the most. Hence the integrated communication strategies of the hotel will be designed in accord so that the campaign endorsed become successful (Accorhotels.group, 2018). Furthermore, the report will also take into account designing a prototype of the brochure which is expected to enhance the effectiveness of the campaign. A budget will be presented where the costs will be considered in real terms and finally the evaluation and control procedures will also be specified. Finally in the conclusion section plausible concluding remarks are provided.
The Novotel, Auckland Airport is located just outside the international departure of the Auckland airport. The hotel sports fully soundproof windows which provides the customers with peaceful inner environment and ambient natural light. As it has been stated earlier that the key strategy of Novotel is to stay innovative. In this hotel the clients are served with the breakfast, lunch and dinner in a perfect time so that they can catch the flight at ease. On an added notion, the “living wall” of the greenery of the bar is a perfect place where the customers wait for takeoff (Accorhotels.group, 2018). The Novotel Auckland Airport has several luxurious rooms and provides wide choice of boardrooms and conference halls where events could be organized.
Hence it can be observed that Novotel hotel is a part of the Accord Group it was established in France in the year 1967 and is still operating profitably across the world. The company has expanded significantly throughout the past few years and is expected to grow further in near future. This overall success of the hotel chain also induces the success of Novotel Auckland Airport. It is an important fact that is needed to be mentioned in this context that apart from being very innovative and creative, during 2007 a new management team took over the operations of the hotel. They stated that throughout the previous 10 years the hotel chain has not innovated anything relevant and hence is becoming a common brand losing its differentiation (Accorhotels.group, 2018). As a result a new project has been launched which was expected to re-energize the brand Novotel and the program mainly focused on re-innovating. This project is named as “Nextup 2015”.
In addition to this program of re-innovating and rejuvenating the brand image of Novotel the Novotel Auckland Airport has designed a marketing campaign which is aimed at attracting significantly large number of customers and also increasing the brand awareness of the hotel. The name of the campaign is,
This campaign will last for 90 days, it is planned that if everything goes well the organization will start the campaign from the 1st of May and it will end on the 30th of July. Throughout this period the campaign will aim at increasing the brand awareness and attracting more customers towards the hotel. The experts consulted have also stated that this may also help to retain the existing customers as well.
The main goal of this particular marketing campaign of Novotel will be to focus over the targeted customer groups more specifically. This is because the chance of turning a non-targeted into a potential buyer is quite less while the targeted customers are more likely to purchase the products and services offered by the hotel. The campaign will endorse innovative and creative contents which will present the company information in such a way that attracts the customers and increases the probability that a person will visit the hotel repeatedly.
Situational analysis can be regarded as the collection of tools used by the managers for analyzing the external and internal environment before an organization (Šeric et al., 2015). This in turn enables the managers to develop a proper understanding about the capabilities of the organization, its customers and the business environment through which it becomes easier to design effective strategies. In this section the external as well as internal environment before Novotel Auckland Airport will be analyzed which will help to determine the business environment faced by the organization and how it can design the integrated communication strategies which will contribute significantly in the success of the marketing campaign.
The external environment analysis is a strategic tool that simultaneously identifies the external factors and some of the internal factors which can affect the business operations of the Novotel Hotel. In other words, it is quite evident that organizations do not operate in vacuum they are also surrounded by certain environmental factors that poses significant impact over their business operations (Šeri? et al., 2014). In this context PESTEL analysis will be used to evaluate the external environment of Novotel Auckland Airport.
PESTEL is a strategic management tool which is used to evaluate the external environmental factors before an organization where the external environment encompasses on six factors which are political, environmental, social, technological, economic and legal.
The political environment of New Zealand has been dominated by the left aligned labor party and the National Party since the Labor Party established the government in 1935. This Labor Party has acted significantly for enacting a number of legislations regarding the society and economy (). It try to ensure an overall social safety and implementing a public works program on a large scale. Moreover, the minimum basic wage is set by the party along with 40-hour work per week and the existence of necessary unionism since the first 14 years of its governance (Gibbs et al., 2015).
The National Party took control of the government in the year 1949 and adopted a few welfare measures as coined by the Labor Party. In the year 1984 the Labor Party again came into power and implemented a number of market oriented reforms. Presently the country is being led by the national Party and the political environment of the country as it can be observed remained significantly stable since ages. Hence, it can be stated that the political environment of the country is in favor of the business activities of Novotel Hotel (Strauss, 2016). The principles and legislations enacted by the respective governments of the country have in turn enhanced the working environment of the country. The workers are benefitted and well treated within the organizations which in turn increases their productivity as a result of which the overall productivity of the organization increases (Van Huyssteen et al., 2015).
The Gross Domestic Product or GDP is considered as one of the most important indicators of the health of the economy. GDP is nothing but the monetary value of all the goods and services produced within the country in a specific time period. The GDP of New Zealand has always been at a stable position. As per the recent statistics the GDP of the country in the year 2017 is 186.4 billion US dollars. In the context of historical data as well, it has been observed that the GDP in 2010 was around 142.48 billion US dollar which was also found to be increased in comparison to the previous year (Yoo and Gretzel, 2016). From the year 2004 to 2008, GDP kept on increasing and only decreased in 2009.
However, it regained its previous situation in the year 2010. Hence as the GDP indicates it can be stated that the economy of the country is in a good shape and health which is good for the Novotel Hotel. In the context of unemployment rate and the rate of inflation it can be stated that both of these are at a stable position. The rate of interest prevailing within New Zealand is also in a moderate condition (De Pelsmacker et al., 2018). Therefore, the increased consumer spending because of higher GDP and due to the moderate rate of interest it can be expected that there will be more of the foreign investors who will be willing to invest in the country. This in turn will be beneficial for Novotel Auckland Airport as more visitors mean more potential clients and the increasing purchasing power of people will enable them to avail the services of the hotel more frequently.
The key social feature of the country is that the people living here are very hard working and maintains a proper work-life balance. This as a result turns the country in a very good place for living. The residents of the country do not spend their precious time at the workplace rather they also spend time with their family (Clarke et al., 2016). The population of the country is not that much inclined towards the high end lifestyle rather they believe in simple living. Hence it can be said that the lifestyle of the people of New Zealand may seem to be not in favor of the hotel but the marketing campaign can influence them to avail the services and products offered by the hotel.
In the recent era of globalization and advancement New Zealand has depicted significant development in its technological aspects. The recently developed technologies are environment friendly as well as efficient to equip the employees whenever needed. Henceforth, the Novotel Hotel Auckland Airport should always try to environment friendly technologies which will in turn promote the corporate social responsibility of the organization (Hager, 2014). This is because the population of the country is well concerned about the environmental factors and the impact of different factors over the environment. Hence, the hotel should focus on dealing with the technological aspects in a more effective and efficient manner so that the sentiments of the people are not hurt as well as the productivity of the organization is not hampered (Geange et al., 2017). The present situation depicts that the organization is maintain the technological standards and also contributes towards maintaining the environmental sustainability. Through this it has developed a better impression among the people around the world.
There are certain environmental factors that contribute towards the growth of the business organizations. The first and foremost among them is the growing environmental awareness among the people regarding the security of energy and preservation of non-renewable resources. However, in the context of the hotel industry non-renewable energy or exhaustible resources are not used significantly (Schermerhorn et al., 2014). The environmental toxicity, waste disposal system can be taken into consideration in this context. However, Novotel Auckland certainly ensures the best possible way to dispose the waste, a proper drainage system and the adoption of the best possible technology so as to reduce its impact over the environment. Hence, the environmental factors would not be able to affect the organization adversely (Kelsey, 2015).
There are a number of legal frameworks which have been implemented by the government of New Zealand. There are laws enacted to maintain the sanctity of the tax system, business operation standards, protecting human rights, ensuring the safety of the employees and many more (Mandic et al., 2015). It is mandatory for the business organizations operating in the country to follow the legal framework else they will become subject to legal jurisdiction. Novotel Hotel strictly follows and maintains the laws and the guidelines provided by the government of the concerned country.
In order to evaluate the internal environment of the Novotel VRIO framework can be used through which the factors like value, rarity, imitability and organization are evaluated.
Value
Value refers to the efficient and optimal use of the existing resource and capabilities so as to gain additional opportunities in order to mitigate the future threats. Novotel Auckland Airport mainly operates on the basis of its existing brands which helps it to generate increased value offerings to its customers so that the customers receive luxury, comfort, design and premium quality (Leung and Baloglu, 2015).
Rarity
The rarity of the resources or the services possessed by an organization also contributes on increasing the competitive advantage of the organization. The business model of Novotel is based on working as a chain of luxury hotels and it provides the customers with luxury accommodation at an affordable price (Finne and Grönroos, 2017). This is some kind of a rare service which is currently not being provided by the other organizations in New Zealand.
Imitability
The imitability parameter refers to the fact that how easy it is for an organization in the market to copy the resources and services of the organization. However, the business model of Novotel is completely based on providing value to the customers with innovative and quality services (Saenko et al., 2016). At the same time the company also connects with the customers over the internet, it enables the customers to book and reserve online. It will certainly be difficult for an organization to imitate these because it would be costly.
Organization
This specific parameter focuses on evaluating the potential capability of the organization to exploit the available resources. Novotel stresses on continuous improvement of the skillset of its workforce through training and development programs (Pismennaya, 2016). This in turn enables the organization to equip the workforce with the necessary skillsets so that they can generate innovative services and provide sophisticated products and services to the customers.
In order to determine the most suitable population which is needed to be targeted the STP tool can be used. STP actually stands for segmentation, targeting and positioning strategy of an organization.
In this stage the organization segregates the market in different segments and finds the most suitable segment which will be targeted. In the case of Novotel Auckland Airport, demographic and psychographic segmentation will be used. The entire relevant population of New Zealand can be divided into three segments which are 18 to 35, 35 to 55, 55 and above. In this context the age group ranging from 35 to 55 will be most relevant for Novotel as most of the people in this age group are working and earn regularly (Porcu et al., 2017). A proportion of the age group 18 to 35 will also be considered as well. It is expected that the people who have a regular income are more likely to spend on luxury goods and services.
As per the psychographic segmentation the population can again be divided into different parts on the basis of their lifestyle. It involves identifying the people with same type of choice and preferences. Targeting these people with similar tastes and preferences will make it easier for the organization to address a large number of people at one go.
After the identification of different segments it is quite evident that different segments will be targeted. In this context the people within age group 18 to 35 and 35 to 55 will mainly be targeted. Further the hotel will try to identify the people with similar lifestyle choices through observing their behavior over the internet. Metropolitan and capital cities will also be targeted as here the majority of the market of Novotel will be found among the professionals and cultured travelers (Hossain et al., 2017).
In terms of positioning it can be stated that the organization will position itself in the high price high quality segment. However, in comparison to the other similar organization operating in the same segment it will maintain a relatively low price. This is the strategy of the organization to cope with the market threats in the extensively competitive marketplace (Buhalis and Mamalakis, 2015).
|
Social Media |
– |
|
Website Campaigning |
$40,000 |
|
Organizing Promotional Events |
$25,000 |
|
Print Media Advertising |
$15,000 |
|
Billboards |
$3000 |
|
Television Advertising |
$5000 |
Integrated marketing communication can be defined as the activity that recognizes the value of a comprehensive plan that in turn examines the strategic roles that are played by different disciplines of communication such as advertising, sales promotion, personal selling and public relations (Ivanova et al., 20). The IMC strategy of the Novotel Hotel Auckland Airport can be stated as follows,
The hotel will a media mix strategy which will be as follows,
Through these processes the hotel establishes an effective communication within its stakeholders. The customers will become well aware about the goals and objectives of the campaign and they will also get informed about the key operations of the organization and the facility it is going to provide.
Primarily it is expected that the selected media mix will address a major portion of the target market. Hence the media mix will primarily mitigate the interests of the people within the age group of 18 to 55 (Semerádová and Vávrová, 2016).
The campaign will mainly be performed in the following cities,
The campaign will stress more on the reach factor rather than frequency. That is it will aim at reaching more audiences at a single point of time so that awareness can be raised significantly. Novotel is planning to establish itself with a completely new image and is looking forward to reach a broader customer base so as to gain an enhanced brand awareness (Wakefield and Blodgett, 2016).
The theme of the campaign will be oriented towards marketing activities. That is it will be so designed that it can effectively influence the marketing activities of Novotel Hotel Auckland Airport. This will be done with the expectation that it will assist the hotel in establishing itself as a renowned brand in that location and attract the attention of a significantly large base of customers (Felix et al., 2017).
The campaign will spread the message that Novotel Auckland Airport is the best option for staying as it is situated near the airport which is convenient for the professional travelers (Yildiz, 2015). Moreover, in the context of tourists they can enjoy their luxurious stay at the hotel with exotic foods and enjoy the picturesque natural beauty of the locality from the hotel room.
|
Project Milestone |
|||
|
Parameters |
Duration |
Start |
Finish |
|
Situational Analysis |
5 days |
Tue 5/1/18 |
Mon 5/7/18 |
|
External Environment Analysis |
15 days |
Mon 5/7/18 |
Fri 5/25/18 |
|
Internal Environment Analysis |
15 days |
Fri 5/25/18 |
Thu 6/14/18 |
|
Target Market Analysis |
10 days |
Thu 6/14/18 |
Wed 6/27/18 |
|
Budgeting |
10 days |
Wed 6/27/18 |
Tue 7/10/18 |
|
Implementing IMC Strategy |
5 days |
Tue 7/10/18 |
Mon 7/16/18 |
|
Modelling Prototypes |
10 days |
Mon 7/16/18 |
Fri 7/27/18 |
|
Implementation Plan |
12 days |
Fri 7/27/18 |
Mon 8/13/18 |
|
Evaluation and Control |
8 days |
Mon 8/13/18 |
Wed 8/22/18 |
|
Total Duration |
90 Days |
As Novotel Hotel is dealing within the service industry and it is not a new entrant in the market conducting pre-testing activities will not be that much challenging for the organization. These pre-testing activities will be undertaken to evaluate the marketing within Auckland and the overall performance of the campaign which can be compared and improved furthermore (Li et al., 2015).
While carrying out the campaign incentives will be provided on the newspaper through coupons (Davey et al., 2017). Later on it will be measured how many coupons have been redeemed and that will determine the success of the campaign to some extent.
The hotel will ask the publishers and the number of copies that are sold which will determine the efficiency of the campaign.
Exclusive promotional code will be attached with each of the magazines which in turn will determine the effectiveness of each medium.
In order to evaluate the performance of social media Novotel Auckland Airport can review and check the number of followers they have in each of the social networking sites (Thaichon and Quach, 2016). The conversations, discussions can also be collected to perform a sentiment analysis of the customers.
Through measuring the performance of digital media with the help of tracking activities a few performance indicators can be obtained. These indicators may include customer satisfaction, brand recall, purchase intention and perceived attitude (Hsiao and Ma, 2017).
This activity will monitor the review provided by the customer through intermediary sites.
The tracking studies undertaken post-testing will be used to assess the usefulness of digital media distributions.
Through the assessment of the reviews provided by the customers and the cost
Conclusion
On a concluding note it can be stated that the IMC strategy as designed by Novotel Auckland Airport is quite effective and it can be expected that the implementation of this strategy would bring prosperity to the business operations of the organization. Primarily the market situations has been analyzed and a few tools have been used to identify the current market forces. This in turn has helped Novotel to determine its key strengths and the way through which it would be able to mitigate the market threats. Afterwards the business organization has decided to develop and launch a marketing campaign which will aim it increasing the business revenue through raising the awareness among the customers. It has been observed in the situational analysis that the political and economic factors of the country are in favor of the business which reflects that these will support further business expansion. On the other hand, the report has completely elaborated the campaign strategies, campaign aims and objectives and the time duration of the campaign. A brief budget of the campaign has also been provided with the report. It can be expected that the effort which have been put forward for designing the campaign will certainly usher the business of Novotel Auckland Airport towards prosperity.
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