Novotel opened its first Hotel in the year 1967 in Lille Lesquin France. Novotel which operates in the hospitality Industry has been classified as an upscale Hotel brand belonging to the Accor Hotel Group. Novotel has since its inception opened more than 409 Hotels and has its presence in more than 60 Countries across the world. The Hotel has grown tremendously because of its innovations in providing modern, comfortable, restaurants, accommodation, relaxing and working rooms. Novotel is the world’s largest hotel Chain outside North America. Its main services are in luxury hotels and Resorts and have over thirty thousand employees working for it in various destinations worldwide. The Hotel has two main brands which are Mercure and Pullman brands (Dam,2011).
The Hotel aims at becoming a pace setter in the global Hospitality industry by offering a unique experience to its employees, Guests and partners though groundbreaking services. The Hotel also aims at shaking up the Global Hotel Industry and extending its services beyond the regions in which it operates. The Hotel also aims at increasing it brand reputation in all market segments, establish its presence in new Geographic locations and continue with its innovation journey. The Hotel also has a vision of strengthening its market presence in destinations with high potential and come up with new services and offers for their guests to keep appealing to them (Ma, 2007).
Improve, protect and maintain Novotel as the largest Hotel Chain outside North America and as a major brand in the Global Hospitality Industry.
Intensify the Hotels effort to offer service and products that are in line with the needs of its varied customers
Explore the Hospitality market for products and services currently in demand by different guest classes
Direct and Manage the Hotels Business in various destinations across the globe as it continues to grow and expand
Establish a strong momentum in growing the Hospitality market.
Continue being socially responsible through compliance with various laws and maintenance of social and ethical behavior in its dealing with clients.
Maintain its market standing by improving its market share, coming up with a wide range of products and services and improving its Consumer satisfaction.
Continue to improve its profits, margins trough management of inventories and provision of excellent products
Achieve a growth rate of at least 10% per year
Upholds innovation in its various branches through offering new products, adoption of technology and better approaches
To be among the top Hotels in the Hospitality industry in terms of market share and the number of markers served.
The Hotel is centrally locates which increases its accessibility
The huge resource base which makes it easy for the Hotel to market itself as a leading Hotel in New South Wales that offers a wide range of products to its customers.
The Hotel as a big presence not only in Australia but several other parts of the world which makes the brand easy to differentiate from other hotels by the consumers
The hotel has highly trained Catering and Hospitality personnel from its top to bottom level
The Hotel has also invested heavily in market research in order to identify current markets trends in the hospitality industry.
The Hotel has many amenities such as a pool, gym facility, in door heated parking garage, safety deposit boxes, dry cleaners, whirl pool, hair dryer in every room
It is among the best yet most affordable hotels in NSW
The cost of offering accommodation is soaring on a very high rate due to the increased demand hence making it relatively difficult for the middle class to afford the services of the hotel.
Absence of a proper marketing department to market the Hotel in new markets segments within NSW is a setback to the Hotel’s marketing attempts locally and globally.
Lack of life guards or hotlines for help at the pool and whirlpool areas
Confusing hallways to the gym and pool for newest quests due to lack of proper directions or signs on the hotel walls or within the Hotel
Competition from other established Hotels in NSW such as Bourke Riverside Motel and Meriton serviced apartments
There is also the treat from other internationally recognized hotels such as Homeinns Hotel Group and Best Western Hotels and Resort
There is great opportunity for the Hotel to focus on other markets segments within NSW as the demand for Hotel services is expected to continue growing rapidly.
The Hotel can also differentiate its products by offering additional products and services not currently offered by other industrial players.
Apart from guest’s accommodation services, the hotel can also offer other services such as Birthday catering services and Birthday Hotel Parties
The Hotel also has large meeting rooms that can be used for conferences or weddings.
Because of its central location, the Hotel is open to many business opportunities as well as tourist recommendations.
Porters is named after Michael Porter who invented te strategic tool used in analyzing critical forces that affect the level of competition in an industry. The model is widely used in businesses to evaluate the kevel of attractiveness and competitiveness in industries. The model can be applied in any industry or market. Managers of the of the Hotel can make strategic decisions based on this analysis as part of the attempts to improve profitability and competitiveness .This is a Five Forces analysis of Novotel NSW. Novotel Group is top brand in the in the Hospitality Sector with a global Presence (Srinivasan,2014).
The bargaining power of customers tends to be more in situation where there are many suppliers and in a situation where the level of competition is relatively high. For this reason the bargaining power of consumers may differ from places to places depend on the level of demand and supply. In NSW there are a couple of Hotels offering similar services to those offered by Novotel. Among the Hotels in NSW include Junction Hotel, De Russie Boutique Hotel Orange, Quest Nowra and Best Western Bluegum Motel (Segal & Faulkner,2008).
The bargaining power of suppliers in the Hotel Industry in NSW is quite low. Hotels such as Novotel belong to the service industry which can be classified as requiring a lot of manpower in order to run their operation effectively. This makes the Hotel staff as their main supplier because they are responsible for the day to day provision of services to the various clients of the hotel. These staffs are paid in terms of monthly salaries and bonuses and have a right to bargain for an increment of their basic salaries (Hales & Williams,2007).
The Hotel Industry in NSW is dominated by a number of Hotels including Junction Hotel, De Russie Boutique Hotel Orange, Quest Nowra and Best Western Bluegum Motel among other International Hotels operating in the area. The industry also requires huge amount of capital and fort this reason, it might not be an easy task for new entrants wishing to venture into the Hotel Industry because they require huge amounts of capital for constructions and building an image for their new hotels against the already established brands in the market. For this reason the treats of new entrants in this industry is relatively low (Hotel report guide to UK branded hotels: Current trends and future prospects for the industry, 2007).
In the recent years the Hospitality has continued to face serious threats especially from bed and breakfast and cottage which are increasing at an alarming rate. Examples of such threats in NSW include ELM Cottage, Crystal Creek Meadows and Grace Cottages. Cottages and Breakfast and Bed are increasingly becoming popular with many consumes because of the fact that they offer almost similar services at affordable prices. B & B and Cottages are also becoming more because of the fact that they do not require much capital to establish and maintain. The treat of substitute in this sector is therefore considerably high because of these new developments (Zarrella & Zarrella, 2011).
The level of rivalry among competitors can also have an impact on businesses I terms of their pricing. The more the number of competitors in an industry, the strong the level of rivalry is in that Industry. The main competitors in the NSW Hotel Industry have a sizeable market share in the market. These plus other smaller brands such as B&B and Cottages pose a great threat to Novotel. The level of differentiation among these players is quite low and therefore the level of competition is relatively high. Customers can change hotels at any time without incurring any costs and for this reason the degree of rivalry is quite high (Scott, 2013).
To have its operations in all segments of NSW by the end of 2018
To increase the brand awareness of the Novotel in NSW and other regions in Australia
To increase the number of quest admissions from effective marketing by 10% by the end of 2018
To increase the market share of Novotel in NSW by 4% in 12 months
To increase the brand popularity of Samsung and Samsung galaxy series in the market
To offer improved hotel experience for all its clients irrespective of their social status
To grow and expand operations within time and budget constraints
To expand its market and identify newer markets to improve the Hotels market presence
To effectively continue to communicate strategic objectives to existing and new markets
To continue offering added value and differentiated services from its competitors.
To increase the number of guests visiting the Hotel by 3.4 percent by the end of the year 2018
As identified in the report there are several Hotels in NSW. The lever of competition generated by these hotels is quite stiff. As part of trying to stand out amid this stiff competition Hotels have resulted to innovative strategies to avoid being edged out of the market by both new entrants and existing competitors as well as improve their revenues (Marich,2013).Basically a marketing strategy is aimed at providing the direction and guidance to achieve marketing objectives of a firm. Through the analysis of a marketing strategy, an organization can be able to identify its main competitors to facilitate offering of appropriate marketing mix for competitive purposes and in order to achieve the marketing objectives of a firm. Marketing strategies are therefore important for Novotel to help it to achieve its marketing objectives and enhance its overall competitiveness in the industry.
Market development is a strategy that that is widely used by businesses across the world to improve their business prospects. Market developed is a marketing strategy that is focused on identification and development of new markers for organization’s current products .It is mainly targeted at new customers within the targeted segments in a bid to expand the customer base through attraction of new Customers (Wesley & Barczak,2010). The strategy is most applicable when only minor modifications for the existing products are needed to appeal to new customers segments. The Hotel has an option of either targeting new markets in NSW or targeting of new areas within their existing markets. Apart from targeting new markets within NSW the Hotel can do this by conducting a PEST analysis or apply the use of CAGE Distance framework to identify existing threats and opportunities in these markets in order to facilitate appropriate decision making. The Hotel can also use Marketing Mix to understand how to reposition its services against those of other competitors in the NSW Hotel industry (Smith & Hiam,2008). Apart from this market segmentation can also be used by the Hotel. Through the use of this strategy the Hotel can target different people in their existing existing markets or newer markets differentiated by age, geographical profiles and age. The Hotel can also achieve this by improving its online presence for the purposes of visiting quests, who are likely to consider an hotel with a large online presence.
Market penetration is s strategy that is focused selling of an organization products or services into an existing market in order to improve the market share of the organization. Market penetrations also measure the actual adoption of a brand in comparison with the theoretical market for that particular brand product or service .It also includes all activities geared towards improving the overall market share of a brand, product or service.
The Hotel can also use marketing penetration strategy to improve its business prospects. The Hotel can increase its market penetration through a number of approaches. Among the most widely used marketing penetration strategies is the use of price adjustments the Hotel can adopt the use of this approach by lowering its prices below the rates offered by its competitors to attract new customers and successfully venture into markets where its operations did not exist before. Additionally this can also be achieved through product and service improvements. By improving its services, the company can successfully into markets segments where its services were not existent before (Marich,2013).This include eating up into segments previously occupied by competitors .The Hotel can also achieve this by increasing its promotion activities such as use of online advertisements through its website, use of mass media advertisements use of road shows to create more awareness about the brand and increase its Customer base. Apart from this the Hotel can also adopt the use of a new marketing strategy in order to encourage more people to choose their brand over the competitors. Promotions can also be effectively to penetrate new markets. Promotions such as offering free accommodation to loyal customers or those who stay within the hotel for more than three days can develop the interest of new market segments into adopting the brand. The Hotel can also choose to buy an already established hotel brand in market segments where its presence is not largely felt. By so doing, the Hotel can successfully introduce its service in such markets with ease.
Diversification is a strategy that is mostly used by business enteritis to enter newer markets or industries in which they are not currently. The strategy involves selling new products or services to already existing clients (Baines & Fill, 2014).The Hotel can achieve this by extending its services and offering additional services or improving the already existing services or venturing into related products or services. It can also achieve this through improving the quality of its servicers including its customer care and reception services. By the use of this strategy the Hotel will be able to improve its market presence in NSW.
Market Development is the chosen strategy for the Hotels marketing activities. The strategy can bring about a number of advantages for the Hotel. Among this is the economic advantages that market penetration can bring if it is carried out in an appropriate manner. An approach such as lowering prices can bring cost advantages by increasing the number of clients visiting the hotel. The implication of this is that the low prices will increase the number of guests hence increasing the profits margins for the Hotel. The strategy will also enable the Hotel to combat its Competitors in the NWS Market .In the same way adopting low price in its operations will make it mandatory for the competitors to adopt alternative strategies. As a result of this the Hotel will harvest big from the new development and will either put its competitors on the defense end or at the edge of being edged out of the market (Heaney & Rebolini, 2017).
A product can either be a tangible good or an intangible service that is use to satisfy certain consumer wants. It is important to differentiate the product offered from that which is already in the market. The uniqueness of a product against those that re being offered by competitors is what makes a product more appealing to the consumers and contributes to its successful marketing. The products offered by the Hotel will largely determine its ability to develop new markets. The Hotel must therefore ensure that it has the right products with high demand in those new markets. This must therefore be followed by extensive market research in order to identify how they can effectively penetrate new markets. Failure to consider the product and its ability to appeal to the target market can mean that the strategy might not be effective. The Hotel must therefore consider what is wanted by the prospective clients from the Hotel’s services, the usage of the service by the by the consumer, the features that must be present in the service or products as well as how it is differentiated from those that are offered by their competitors. The products offered by the company will therefore have an impact on the ability of the Hotel to develop new markets (Marich,2013).
The price of a good or service is the amount that a consumer sacrifices in order to enjoy a particular product. Price is very a significant component of the marketing mix. Considering of prices of goods and service is also very in the marketing plan as it is the number one determinant of an organization profitability survival. The demand of goods and services is largely determined by the prices attached to them. After products to be used in venturing into the newer markets have been determined the next strategy involves making decisions on the prices to be charged. The pricing decisions made can have a huge impact on ability of the Hotel to venture into new markets .Depending on the prices adopted by the hotel the marketing strategy adopted will be successful or unsuccessful (Oliver & Chartered Institute of Public Relations,2010).The price will also determine the amount of demand, supply and profit margins for the Hotel. Adjustment of the price will therefore have a big impact on the adopted marketing strategy as well as the overall demand and supply of the hotel’s products. The Hotel may need to position its brand differently in terms of its price. The pricing strategy adopted by the hotel will help in shaping how the targeted consumers perceive the Hotel’s products as they compare them to those offered competitors. The Hotel will therefore need to consider the pricing strategy adopted by the competitors so that it can set its prices accordingly to avoid a situation where the cost of the new strategy outweighs the benefits. The Hotel will therefore need to determine whether a price decrease will contribute in increasing the hotel’s market share and whether its intended pricing strategy will keep u with the prices of the competitors.
Place is very important part in the product mix definition. The product or service must be positioned in a position that is accessible to potential buyers or consumers .This means that there must be a prior understanding of the target market. The Hotel will therefore need to consider the right places that can be accessible by its target markets. The choice of place will therefore have an impact on the marketing strategy adopted (Heaney & Rebolini,2017).
Promotion
After the product, price and place have been determined; the next step involves promoting the product. Promotion is concerned with dissemination of information about a product and differentiating it from those offered by other competitors. Promotion involves elements such as social media marketing, advertising, public relations, and other types of marketing (Baines & Fill, 2014). Promotion is a very import component of marketing as it its role in boosting the recognition of the Hotel brand. Advertising includes methods of communication such as commercials, internet advertisements and Television of advertisements. On the other hand, press releases are types of communications that are not paid for such as seminars, press releases, sponsorship deals and exhibitions. These too are very important in determining the success of the of the adopted strategy
The first step in implementing the marking plan for the hotel will be setting the right expectation. The setting of expectations will build the momentum for the implementation of the marketing plan. Building of the right foundation of the marketing efforts might take time and efforts. However once this foundation has been laid the Hotel will begin seeing the much needed momentum in its marketing endeavors. Setting expectation is therefore important in that it will help each member of the hotel to understand the marketing strategy of the Hotel ( Lamb, Hair & McDaniel, 2012).
After expectations of the plan have been set, the next step will involve identification of the marketing implementation team. This will involve a thorough analysis within the organization to determine who will be important in the implementation efforts. The members of the implementation team can be chosen from the Hotels marketing or Customer service departments or partnering with outsourced vendors. The choice will depend on the understanding of what the implementation requires. This step will also involve determination of other tools, resources, education and materials needed to start the process. Apart from identification of those resources, they will also be gathered in this stage (Shankar & Carpenter, 2012).
After the marketing team has been identified the next step will be communicating the strategy to the group to ensure that the clearly understand the goals of the plan. This communication will involve clarification of the role of each member of the marketing team and what is needed from them to make the undertaking a success. This will however not only be communicated to the implementation team but also, the rest of the company will be given an overview of the Hotel’s efforts in order to make everyone within the organization feel to be part of the undertaking.
For the purposes of managing the efforts of the team it will be important to break up the project into smaller tasks and establish deadlines so that the whole process can be manageable. This might require the use of project management software for ease in assigning tasks and set deadlines for individual members of the implementation team and facilitate having each member on the same page (Keillor,2007).
This will involve setting a dash board for managing success to measure the efforts of the group. What will be measured will be determined by the set goals and the marketing strategy; however these will be tied to the overall business objectives for the Hotel.
Monitoring will be necessary in order to gauge the overall marketing efforts. The Monitoring for the plan will be done on a weekly basis to identify what is working and what is not working. Monitoring will also involve meeting with the implementation team regularly to go over the progress of the implementation. This will help the team to understand the overall progress and what needs to be done to achieve the goals of the plan.
This will be the last step. After monitoring has been done, it will now be time to let the team members know that actually the marketing efforts undertaken by the team are having a positive impact. This will be an effective strategy to boost the morale of the Hotel’s workforce (Tybout, Calder & Kellogg Graduate School of Management, 2010).
The following budget estimates represents of the cost of implementing the marketing plan for Novotel.
|
Budget item |
Year 1 |
Year 2 |
Year 3 |
|
Demand generation and enabling sales |
340,000 |
324,788 |
78,005 |
|
Traditional media advertising |
392,688 |
312,000 |
212,000 |
|
Digital strategies and advertising |
278,000 |
270,789 |
112,000 |
|
Events |
145,785 |
140,000 |
78.900 |
|
Product marketing |
289.006 |
256,789 |
|
|
Operation and marketing strategy |
230.888 |
221,568 |
186,700 |
|
field marketing |
188,900 |
133,458 |
102,987 |
|
Total |
$1,865267 |
$1,659,392 |
$770,592 |
Reference List
Srinivasan, R. (2014). Case studies in marketing. Place of publication not identified: Prentice-Hall Of India.
Tybout, A. M., Calder, B. J., & J.L. Kellogg Graduate School of Management. (2010). Kellogg on marketing. Hoboken, N.J: Wiley.
Lamb, C. W., Hair, J. F., & McDaniel, C. D. (2012). Essentials of marketing. Mason, Ohio: South-Western Cengage Learning.
Dam, C. . (2011). Placement report: Hotel Novotel and Ibis Auckland Ellerslie. Breda: NHTV Breda University of Applied Sciences.
Ma, R. (2007). China hotel directory. Hong Kong: China Economic Review Publishing.
Segal-Horn, S., & Faulkner, D. (2008). International strategy. London: Thomson Learning.
Hales, D., & Williams, D. (2007). Wow! That’s what I call service!. Penryn, Cornwall: Ecademy Press.
Hotel report guide to UK branded hotels: Current trends and future prospects for the industry. (2007). Crawley, West Sussex: William Reed Business Media.
Shankar, V., & Carpenter, G. S. (2012). Handbook of marketing strategy. Cheltenham, UK: Edward Elgar Pub.
Baines, P., & Fill, C. (2014). Marketing. Oxford : Oxford University Press,
Smith, C., & Hiam, A. (2008). Marketing for dummies. Chichester: John Wiley & Sons
Scott, D. M. (2013). The new rules of marketing & PR: How to use social media, online video, mobile applications, blogs, news releases, and viral marketing to reach buyers directly.
Ramesh, K. S. (2007). Marketing and branding: The Indian scenario. New Delhi: Dorling Kindersley (India.
Zarrella, D., & Zarrella, A. (2011). The Facebook marketing book. Beijing: O’Reilly.
Keillor, B. D. (2007). Marketing in the 21st century. Westport, Conn: Praeger.
Wesley, D. T. A., & Barczak, G. (2010). Innovation and marketing in the video game industry: Avoiding the performance trap. Farnham, Surrey, England: Gower.
Marich, R. (2013). Marketing to moviegoers: A handbook of strategies and tactics. Carbondale: Southern Illinois University Press
Oliver, S., & Chartered Institute of Public Relations. (2010). Public relations strategy. London: Kogan Page/CIPR.
Heaney, K., & Rebolini, A. (2017). Public relations. New York : Grand Central Publishing
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