marketing plan of hyatt sample

Assignment Code: 9441

Date of Completion: 25th May 2012

Words: 2242

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Contents Introduction ............................................................................................................................................. 1

Current Market Situation: ....................................................................................................................... 2

Marketing Information: ........................................................................................................................... 3

Customer Segments: ............................................................................................................................... 5

Competitor Analysis: .............................................................................................................................. 5

Key Opportunities: .................................................................................................................................. 5

A Promotional Plan : ............................................................................................................................... 6

Objectives and issues : ............................................................................................................................ 6

Marketing Mix Strategy: ......................................................................................................................... 7

Action Programme: ................................................................................................................................. 9

Evaluation and control : .......................................................................................................................... 9

Conclusions and Recommendations: .................................................................................................... 10

References: ........................................................................................................................................... 11



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Introduction

History:

The company was established upon purchase of the Hyatt House, at Los Angeles

International Airport dated 27th September 1957. Owner of the Hyatt were entrepreneurs,

Hyatt Von Dehn and Jack D.Crouch. Later, Von Dehn decided to get out of the hotel

business. His share was sold to the hotel Jay Pritzker. Jay’s younger brother Donald Pritzer,

undertaken the responsbility of hotel operation and acquired motels and hotels. Under

Donald’s leadership, Hyatt Corporation became the greatest growing chain of hotels in the

United States until his death in the year 1972.

Hyatt is a global corporation with broadly recognised, industry. Mission of the hotel is

to provide benchmark services by creating a difference. Hyatt key properties by region

includes North America, Europe/Middle East/Africa, Latin America, Asia Pacific, Southwest

Asia (Hyatt Investor relation,2012).

Fig 1.1: Hyatt location (Source:Hyatt Investor relation, 2012)



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Hyatt Andaz is located in the heart of the city. It was opened in the year 1884, which

is housed in a beautiful redbrick Victorian building. It transforms into 21st century

masterpiece, with 267 modern guest room. Five restaurants and bar within this East London

hotel. Japanese cuisine restaurant is Miyao, seafood available at Catch, brasserie grill menu

in Eastway, and english pub fare in George (Andaz,2012).

Economic Factor, It covers interest rate, infrastructural and financial terms provided by the

government for early setup. 9/11, many people were scared to fly, and to its worse, in the

United States, airplane were cancelled for three days. This had an adverse effect on the hotel

as well.


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Social Factor, Attitudes such as health, environmental consciousness, Hyatt has done this by

preserving the natural environment through Hyatt Earth, Hyatt Community, Family of

Responsible and Caring Employees (F.O.R.C.E.). Hyatt Earth- encourage a culture of

environmental awareness. Hyatt Community- it improves the environment. F.O.R.C.E.

(Family of Responsible and Caring Employees) - This program allows Hyatt to volunteer

worldwide to participate in local.

Technological Factor, with the advancement in the technology hotel industry is also taking a

new pace. Through technological advancement, it has made possible to customers and travel

agent to directly access the Hotel reservation system’s database.

Environmental Factor, It is necessary to study the factors to identify whether equipments

which are supplied can bear up the environmental conditions or not. Guests in the hotel

consume usually 300 litre a day This condition endangers the availability of water for local

people. For this reason, steps should be taken to minimize the wastage of water i.e. install

water meters, causes of high consumption, eliminate leaks, repair defective seals and damage

water pipes.

Legal Factor, The macro legal environment is closely related to the political environment. It

includes court decision such as liability compensation etc. Hyatt cleared all legal policies, as

a result it is running all over world (Pest Analysis of the macro environment, 2007).

Marketing Information:

Marketing managers mainly rely on the management information system (MIS), and these

reports generated for the same is used to create marketing plans. Marketers follow three

sources of information market research, internal information, marketing intelligence. These

information sources can be into two main categories i.e. primary data and secondary data.

Here, Hyatt focusses on the internal component of marketing information. It is very valuable

to management as it gives a wealth of information. Management has three main sources of

internal marketing information which are management staff and employees, guest history and

sales, customer feedback. This kind of marketing information system consumes less time and

money as compare to externally generated marketing information (Diamond and Oppenheim,

2004).



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Fig 1.3: (Source :Sources of Marketing Information, 2007)

Customer feedback: Here, the information is generated by the manager talking with

customers or having service personal check with the guests. Other method which is very

effective is comment card. These cards are placed in the hotel rooms or are given at the time

of check out by the guests. Even it is used in the restaurant, presented at the time of finishing

meal. It seeks their opinion and comments in relation to the operation’s quality (Sources of

Marketing Information, 2007).



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Customer Segments:

Hyatt Andaz has varied customer from corporates-small meetings to leisure guests.

Segmenting-Full service / upper upscale. Marketing Information system is providing a strong

information about the guests likes and dislikes. On these data Hyatt is improving its services

and facilities. Usually corporate travellers tend to stay midweek, whereas leisure guests tend

to stay more at weekends and during holidays. Leisure guests are a lot into price sensitive,

and they make a reservation in advance whereas corporate people generally stay in a hotel

according to their scheduled meetings. Hyatt render diverse facilities such as relaxing and

entertaining facilities for instance, spa, health club, casino, bar, sauna bath, pool side dinner

to leisure guests.corporate guests avail the facility of wi-fi, conference room (Tsiptsis and

Chorianopoulos, 2011)

Competitor Analysis:

As shown in the below fig 1.5, comparing the hotel’s rates and reservation, customer

satisfaction and customer quality of the competitors with the Hyatt Andaz. The main aim of

any company through this analysis is to identify the services being offered by competitors

and their promotional policies (Withrow, 2006).

Sheraton (Sheraton

Heathrow Hotel,

2012)

Claridges

(Claridges, n.d)

Premier Inn

(Premier Inn, n.d)

The Hyatt

andaz

Prices

Comparison

15,724 68,545 6,820.47 $540

Customer

satisfaction

High High High High

Service quality High High Low High

Key Opportunities:

Figure shows the briefing of Hyatt corporation SWOT analysis. Hyatt has significant

competitive strength. Having a world class brand, deep culture and experienced management

team, high quality hotels situated in desirable markets. It is attracting guests because of its

focused services and outstanding facilities. Its globally spread and recognized for family,

leisure and business travellers. Its main weakness is the dilution of brand name and monetary

pressure. Hyatt has to look ahead competing effectively not only through its premium Email : [email protected], Phone: (UK) +44 203 3555 345

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products and services but also by using competitive prices along with special offers. Threats

of the hotel which are major players Hilton family hotel group, Starwood, Claridges, Ritz.

Secondly, it is the development of low cost airlines and low cost travel. There are a lot of

opportunities for the corporation to gain advantage on its competitors.The most prominent

opportunity for the hotel is the potential from the road trips trends. There are an increased

number of road travellers. Hyatt is offering striking discounts to the people who travel by

road (Fine, 2009).

A Promotional Plan :

Successful promotion is a trustworthy process about the solution to the problem. Key factor

here is to be confident enough about the marketing plan and to tell others with enthusiasm.

There is a positive response by the people who shows enthusiasm about products and services

(Williams, 2012)

Objectives and issues :

The main aim of this plan is to achieve an increase in sales by 20% in the coming year. This

plan can be formulated by using SMART acronyms (Specific, Measurable, Attainable,

Relevant and Time Bound).

Specific – Hyatt wanted to accomplish a sale of 20%. which focus on customer i.e. corporates

and leisure guest.

Measurable - targeting 20% of increase in sales



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Attainable – Hyatt Andaz is famous worldwide for its services having five star luxury will

definitely achieve its target.

Relevant - Plan is not only an indistinct statement; it is based on policies to be adopted and

actions to be prepared by everyone in the hotel.

Time Bound – Time is framed from mid 2012 to 2014 (SMART objectives, n.d. ).

Marketing Mix Strategy:

Building up a strong marketing strategy that goes beyond the strategies of the competitors.It

is to assure that they have an exceptional advantage over the other.

Product/service: 10% off on your second week stay or your return visit” and “Free dinner,

bed and breakfast for conference organizer. This will attract the leisure guest to come again

for their second stay and more and more corporate meeting will be held as the organizer has

an advantage.

Price:

Rate in UK Dollars: Fig 1.6: (Source: Andaz, 2012)

Promotional Plan: “10% off on your second week stay or your return visit”. For Leisure

Guest,



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First visit for to Hyatt Andaz, twin charging 340.00 per day. On a second visit, giving a

discount of 10% that comes to around 306.00 per day.This plan will definitely magnetize

clients.

Free dinner, bed and breakfast for conference organizer. For increasing the corporate

meetings or small meetings, as per above fig 1.6, pricing strategy will attract organizer,

which will in turn bring business to the firm. It will result in more occupancy.

Promotion- Internet Campaign, the world wide web which opens a new rank of potential

customer tariff. Website makes it possible to advertise the schemes and discounts to the



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Action Programme:

Fig 1.7: (Source: About hotel hierarchy, when to change and how to change ,2008)

First approval will taken from Board of Directors for implementation of the plan. It will pass

onto the IT department for promotion and other areas i.e. RM, F&B, Entertainment,

engineering, purchase, M&S, Financial and HR. It is to mandatory for every department to be

aware of the promotion plan. Action of the plan will be taken by the marketing department. In

IT department, visualiser will design and work on internet.Finance people will take care of

the discounted rates.As shown in fig 1.7, the process will go from up to bottom. This plan

will be effective from 1st July 2012.

Evaluation and control :

Plan should be properly implemented and circulated within the hotel. Managers must be

given authority. Sustain a friendly relation with corporate organizer. As there is no expenses

in other areas, proper promotion through internet and business magazine would be made to

make regular customer aware. This plan can face a problem if the customers doesn’t stay for

the second week or visit again. Hotel has to bear the expenses of the organizer if he brings a

very small group of people to the hotel.



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Conclusions and Recommendations:

Based on the above promotional plan, it can be concluded that by putting efforts hotel can

increase its sale by some percentage. Upon implementation of the marketing plan, Hyatt

Andaz will gain increased market shares and claim its targeted situational position of market

leader in a luxurious hotel. It will keep its consumer recognition

for innovative and successful services. Apart from leisure guest and corporate people Hyatt

can also avail special packages to students, who visit different places on an educational tour.



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References:

About hotel hierarchy,when to change and how to change. 2008. [Online]. Retrieved from: <http://www.hotelmule.com/forum/viewthread.php?tid=116>. [Accessed on 25 May 2012].

Andaz. 2012. [Online]. Retrieved from: <http://www.andaz.hyatt.com/en/andaz.html>. [Accessed on 25 May 2012].

Claridges Luxury Hotel In Mayfair, 2012. [Online] Available at: <http://www.claridges.co.uk/>. [Accessed on 25 May 2012].

Competitive Strategy of the Global Hyatt Corporation-Tran Kim Thuyen_Kyly . 2011. [Online]. Available at: <http://www.docstoc.com/docs/14859301/Competitive-Strategy-of-the-Global-Hyatt-Corporation--Tran-Kim-Thuyen_-Kyly>. [Accessed on 25 May 2012].

Diamond, W. and Oppenheim, M., 2004. Marketing Information: A Strategic Guide for Business and Finance Libraries: Routledge.

Fine, L., 2009. The SWOT Analysis: Using Your Strength to Overcome Weaknesses, Using Opportunities to Overcome Threats: CreateSpace.

Hyatt Investor relation. 2012. [Online]. Retrieved from: <http://investors.hyatt.com/phoenix.zhtml?c=228969&p=quarterlyearnings>. [Accessed on 20 May 2012].

PESTEL analysis of the macro-environment. 2007. Retrieved from: <http://www.oup.com/uk/orc/bin/9780199296378/01student/additional/page_12.htm>. [Accessed on 23 May 2012].

Premier Inn, n.d. [Online] Available at: <http://www.premierinn.com/en/london-hotels.html>. [Accessed on 25 May 2012].

Robinson, S., 2012. Marketing Techniques for Hotels. Retrieved from: <http://www.ehow.com/info_8091811_marketing-techniques-hotels.html>. [Accessed on 25 May 2012].

Shennu, B., 2012. Pricing and Promotion Strategy. Retrieved from :< http://www.ehow.com/about_6752112_pricing-promotion-strategy.html>. [Accessed on 24 May 2012].

Sheraton Heathrow Hotel, 2012. [Online] Available at: <http://www.sheratonheathrowhotel.com/?PS=EAME_aa_Starwood_NWE-293_Google%20IN_heathrow%20sheraton%20hotel_071411>. [Accessed on 25 May 2012].

SMART objectives. n.d. Retrieved from: <http://www.learnmarketing.net/smart.htm>. [Accessed on 24 May 2012].

Sources of Marketing Information. 2007. Retrieved from: <http://hotelmule.com/forum/viewthread.php?tid=660>. [Accessed on 23rd May 2012].



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Strategic Planning Pt. 3: Expanding Your Business Toolbox. 2011. Retrieved from: <http://ignitestrategicsolutions.com/2011/07/10/strategic-planning-expanding-your-business-toolbox/>. [Accessed on 23 May 2012].

Tsiptsis, K., and Chorianopoulos, A., 2011. Data Mining Techniques in Crm: Inside Customer Segmentation.2:John Wiley & Sons.

Whitehead, L., 2008. How to Create a Promotional Plan. Retrieved from: <http://www.adbase.com/Blog/Marketing-Planning/PromotionalPlan>. [Accessed on 25 May 2012]

Williams, J., 2012. How To Create A Powerful Promotional Plan For Your 50+ Business . Retrieved from: <http://www.startupnation.com/business-articles/3849/1/promotional-business-plan.htm>. [Accessed on 23 May 2012].

Withrow, J., 2006. Competitive Analysis: Understanding the Market Context, [Online] Available at: <http://www.boxesandarrows.com/view/competitive_analysis_understanding_the_market_context>. [Accessed on 24 May 2012].



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marketing plan of hyatt sample

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asia pacific

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