Executive summary
The Royal life hotel has been proposed with a unique vision and mission statement, and it is also reflected in different marketing goals and objectives. The Royal Life Hotel is a boutique hotel that combines elements of art and science and attracts customers. Due to its unique culture and offerings, the company has gained success and a competitive advantage over others small hotels. However, the strategic analysis tool has helped the company identify several strengths, weaknesses, opportunities, and threats. Based on these insights, the company can come up with the best marketing and distribution strategy. The appropriate product that can attract customers to this boutique hotel is the swimming pool, as it is quite pertinent in the summer season. Furthermore, the online travel agent is the best distribution strategy for the company to increase the exposure. Advertising and personal selling are included in the promotional mix of the Royal life hotel. Through effective marketing strategy and execution, the management can ensure a sustainable competitive advantage in the competitive hotel industry.
Introduction of Royal life hotel
The hotel industry is growing around the globe. Organizations are integrated with some new hotel industry trends to make the difference and come up with something unique for customers. The most important thing is to make the hotel the first choice for travelers. The Royal life hotel is a boutique hotel, which has been triggered by the combination of science and art to enhance the attraction of travelers. For Instance, the Royal life hotel makes three basic room segments. These segments are queen, double queen, and king. These rooms are equipped with one glass and a prominent small workstation. The culinary experience is good, as the company likes to streamline local and seasonal ingredients to make high-quality foods. Dishes are crafted carefully, and it attracts customers. The hotel also offers an archive lounge that offers art, intimacy, and the well-crafted cocktail before the meal. There are two event spaces in this hotel. Thus, the hotel management is inspired by science and artwork, and it is quite reflected in offerings. The proposal of the Royal Life hotel is triggered by some exceptional technological advancement. The purpose is to implement new technological tools in hotel (Kiradjian, 2018)
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Vision
“The vision of the Royal life hotel is to become a pioneer of the unique lifestyle of boutique hotels and a home to all visitors.”
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Mission
“The mission of the company is to expand its social responsibilities through integrating with art and science in the next five to ten years. The Royal life hotel is not only the space to rest and meet, as it is to become the hub of traditional, urban, science and art culture.”
Marketing Goals and Objectives
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Goals
There are several marketing goals and objectives, which are to be depicted to all key stakeholders. The first goal is to depict the positive reputation of the company in the whole marketing process. The goal of the marketing team is to streamline the mixture of art and science to portray the unique culture of the company.
The second marketing goal of this hotel is to meet the expectations of people. For Instance, the goal is to streamline those offerings that are missing in the market so far.
The third marketing goal is to grab a new range of customers to increase sales
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Objectives
The objective of the marketing is to integrate with modern marketing channels to streamline the message effectively.
Another marketing objective is to increase customer satisfaction when offering different services. The quality of service and effective customer engagement are sources to increase satisfaction
The third marketing objective is to increase the customer’s lifetime value. The hotel management intends to make important business decisions by aligning the customer’s lifetime value. The Royal life hotel wants to know how much spending or investment is required to acquire the customer.
SWOT Analysis of Royal life hotel
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Strengths
The location of the hotel is a big strength, as it is the prominent point for visitors to meet with people, eat, and rest. The company also has high standards regarding customer satisfaction, and it makes the customer loyal. The combination of science and art creates a unique culture, and it seems the biggest strength of the company. It has become the main attraction factor in the competitive hotel industry. The clear-cut business strategy is also a big strength of this proposed hotel. Variety in services or offering is also a big strength. (Jobs, 2016)
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Weakness
There is a low occupancy in winter, and it has become the main weakness of this hotel. Moreover, the cost of the hotel or price is high as compared to other hotels. Therefore, many customers have converted. Not every individual depicts an interest in art and science. It is quite boring for those who love sports.
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Opportunities
The management can promote its facilities or offer to inbound tourists. The global expansion has become a great opportunity. The company contains good revenue streams that can facilitate global expansion. Another opportunity is to run special weekend events to enhance the better positioning.
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Threats
The rising cost of five-star services is a big threat for this hotel. Customers may prefer different low-cost alternatives, and it can hit the revenue and profitability. New arrivals in the hotel industry, which are also equipped with technology, are big threats. The art and science culture is immitigable, and it always creates the alarming situation.
Analysis of the Closest Competitor
The Ivy Boutique Hotel, Kinzie Hotel, Kimpton Hotel Monaco and the Godfrey Hotel are some prominent competitors of Royal life hotel. Interestingly, these competitors are also targeting both local and international customers. These hotels are trying to build a unique culture, which focuses on art, science and other aspects of life. However, comparatively, regarding quality and offering, the cost is low. It can be said that these are low-cost options for customers. Royal Life Hotel is quite aware of the possible imitation, as the imitation capability of these competitors is high.
Specified Target Market (Targeted Demographic)
The target market or customer of this hotel is Millennial. In the United States of America, they usually make up 20% of the international tourism. Based on the intentions and interests of these people, the hotel management demonstrates its focus on design and marketing efforts. It is a specified targeted demographic for the company, and all marketing activities or initiatives are revolving around it (Eng, 2016).
Type of Product to Use to Attract People to the Organization
There are several strategic options for the company that can be implemented or executed effectively. However, immediately, the company needs a swimming pool as a key product or service to attract people. Interestingly, this product or service is quite pertinent in the summer season. The swimming pool can be the first thing in the minds of customers when making buying decisions. Well-designed pool with several accessories will be the product that will be used to attract people to the Royal life hotel (Bestwestern.com, 2017)
Distribution Channels that will be used
The best distribution strategy for this company is to find the best online travel agent. Orbitz.com, Hotels.com, Booking.com, Expedia, and Priceline.com are some key online travel agents. Interestingly, the Royal life hotel has its website. However, customer traffic can be increased by aligning with these online travel agents. This distribution channel seems lucrative. Online travel agents create extra exposure, as they can target an immense range of people using mobile phones.
Promotion-Mix Elements and Rationale
Advertising, publicity, sales promotions, direct marketing, and personal selling are different elements of the promotion mix. Advertising is a promotion of new ideas, products, and services on different media channels. It is a kind of mass communication to position better in the minds of customers. In sales promotions, the hotel can conduct different events, seasonal discounts, exchange offers and free services. Personal selling is a face-to-face communication to increase sales. Interview, seminars, donations, speeches, and columns are prominent tools in the public relation element. Appropriate promotional elements were personal selling and advertising, as it is an effective promotional mix for this hotel. For Instance, using modern media channels for advertisement is cheaper and workable. People can be targeted when using digital or social media channels. The advertising process can be converted into personal selling. To meet this purpose, it is necessary to use the right matrices and utilize adequate technology. The marketing process needs these sources to make a better promotional strategy. (Landman, 2018).
Historical Information about the Location
The location of the hotel will be Ontario St Chicago. Historically, it is a hub of hotels, apartments, and corporate offices. The location has assisted many hotels to create or provide amenities. It was developed from the ground two decades ago and is now surrounded by some big buildings.
Pitfalls of Deterrents
The location is too rushed. It seems tough for a visitor to walk out and get fresh air. The noise of traffic is a big problem, which may take customers away from this location and find other alternatives.
Three “Fun” Facts about the Organization
The first fun fact is the indoor pool, as visitors may play different games in the pool and have fun during the stay. The second funniest is the Yoga in the morning. It is also a fitness activity, and with a little fun, visitors can take good care of their health. The bowling alley is the third fun in the organization, as visitors may try different tricks and have a good time.
Reference
Bestwestern.com. (2017, January 10). A Modern New Hotel for Hip Travelers. Retrieved from https://www.bestwestern.com/en_US/hotels/discover-best-western/brands/GLo.html
Eng, D. (2016, April 4). What Do Millennials Want? Hotels Have Some Ideas. Retrieved from https://www.nytimes.com/2016/04/10/travel/millennials-hotels.html
Jobs, S. (2016, November 2). Do You Know Your Hotel Industry? SWOT Analysis of the Hotel Industry. Retrieved from https://www.soegjobs.com/2016/11/02/swot-analysis-hotel-industry/
Kiradjian, F. (2018, February 6). Where Is Boutique Headed? Four Trends Shaping the Industry. Retrieved from https://www.forbes.com/sites/forbeslacouncil/2018/02/06/where-is-boutique-headed-four-trends-shaping-the-industry/
Landman, P. (2018, March 6). 5 Common Mistakes in Hotel Revenue Management. Retrieved from https://www.xotels.com/en/revenue-management/5-common-mistakes-in-hotel-revenue-management
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