chapter 3...objectives. 4.discuss how to design business portfolios and growth strategies. hmgt 2405...

HMGT 2405 Hospitality Marketing

1

Marketing for Hospitality and Tourism

CHAPTER

Seventh Edition

ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu

Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.

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The Role of Marketing in Strategic Planning

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Learning Objectives

1. Explain company-wide strategic planning.2. Explain the four planning activities of corporate

strategic planning.3. Understand the processes involved in defining a

company's mission and setting goals and objectives.

4. Discuss how to design business portfolios and growth strategies.


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• Full Service Lodging– Marriott Hotels & Resorts– JW Marriott Hotels & Resorts– Renaissance Hotels & Resorts

• Marriott Conference Centers– Ritz-Carlton– BVLGARI Hotels & Resorts– Renaissance ClubSport Hotel &

Fitness• Select Service Lodging

– Courtyard by Marriott– Fairfield Inn by Marriott– SpringHill Suites by Marriott

• Extended Stay Lodging– Residence Inn by Marriott– TownePlace Suites by Marriott– Marriott ExecuStay– Marriott Executive Apartments

• Timeshare– Marriott Vacation Club International

(MVCI)– Horizons by Marriott Vacation Club– Marriott Grand Residence Club– The Ritz-Carlton Club

• Full service lodging– Hilton Hotels– Doubletree– Embassy Suites– Conrad Hotels– The Waldorf-Astoria

Collection– Hilton Garden Inn– Hampton Inn– Homewood Suites by Hilton

• Select service lodging– Hilton Garden Inn– Denizen Hotels

• Limited service lodging– Hampton Inn & Suites

• Extended stay suites– Homewood Suites by Hilton– Home2 Suites by Hilton

• Timeshare– Hilton Grand Vacations

Company



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Company-wide Strategic Planning

• Managing business as an investment portfolio.

• Assessing the future profit potential for each business segment.

• Developing a game plan to achieve long-term objectives.



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Characteristics of a High-Performance Business

Stakeholders

Resources

Processes

Organization


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Strategic Planning Process

Defining a corporate mission

statement

Establishing strategic

business units (SBUs)

Assigning resources to

each SBU

Developing growth

strategies



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Defining the Corporate Mission

• Mission: present-based statements designed to convey a sense of why the company exists to the company and the external community.

– What is our business?– Who is the customer?– What do customers value?– What should our business be?


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The Vision of the Walt Disney Company is “To make people happy”

The Mission of the Walt Disney Company is to be one of the world’s leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world.

(Walt Disney Archives, 2012)



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Mission Statement

"We will ensure a stress-free car rental experience by providing superior services that cater to

our customers' individual needs… always conveying the

'We Try Harder' spirit with knowledge, caring and a passion

for excellence."

vs.


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SWOT Analysis

Strengths Weaknesses

Opportunities Threats

Internal Environmental Analysis

External Environmental Analysis



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Chipotle SWOT AnalysisCompany maintains ownership over all restaurants.

Expanding into markets with a diversified tastes

Strong supplier relationships with organic producers.

Rising labor costs

Extremely strong financials Seasonality of sales

Minimal expenses accrued for Marketing.

Strong customer loyalty

Commitment to providing healthy menu items

Growing health trends among consumers

Growth of organic foodIngredients

Rising food prices

Technological advances forordering food

Ease of entry into the market

Sustainable restaurant design isincreasingly popular

Impact of economic downturnfrom recovering economy

Diversification of food concepts Changes in consumer tastes andpreferences

S W

O T


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Resources Allocation -Boston Consulting Group (BCG) Matrix

Relative market share

Market growth

rate

Low

Hig

h

LowHigh

Star Question mark

Cash cow Dog

Build

Hold Divest

Harvest



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Resources Allocation: BCG Matrix

• Question marks (high growth + low market share)• To increase market share

• Stars (high growth + high market share)• To preserve market share• Heavy investment required to finance rapid growth

• Cash cows (low growth + high market share)• To increase short-term cash flow

• Dogs (low growth + low market share)• To sell/liquidate

• Ideal flow is anti-clockwise from question marks to stars to cash cows


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Sales Mix Analysis Mix

Number Sold

Item

Con

trib

utio

n M

argi

n ($

)Star Question mark

Cash cow Dog



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Business Growth Strategies

1. IntensiveGrowth Strategy

3. Diversification GrowthStrategy

2. IntegrativeGrowthStrategy


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Integrative Growth Strategy

Manufacturer

Consumer

Wholesaler

Retailer Retailer RetailerRetailerRetailerRetailerRetailerRetailerRetailerRetailer

RetailerRetailerRetailerRetailerRetailerRetailerRetailerRetailer



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Integrative Growth Strategy

• Horizontal integration: acquiring competitors

• Vertical integration–Backward integration: acquiring a

supplier–Forward integration: acquiring

distribution outlets

chapter 3...objectives. 4.discuss how to design business portfolios and growth strategies. hmgt 2405...

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