Marketing Positioning - Kempinski Hotel

Preopening Strategy Plan Template

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3
3.1

MARKETING POSITIONING

STRATEGIC FOCUS

Briefly describe
Examples:

To open the hotel in 2011

Delivering at least the required profit level;

Delivering a level of personal service and product which is excellent, innovative and
customer driven.

To positioned the hotel as a luxury 5* hotel in an excellent location

To understand our strengths and weaknesses and the business environment we operate
in and to expand our market and identify new markets

To accomplish an ADR of XX and a forecasted occupancy of XX% for the period

ended

To attain the 20xx budget of Rooms revenue: XXX and F&B Revenues of XXX

To accomplish a score of 75% in 20xx on the LQA quality control versus both
Kempinski and LHW standards.

To accomplish a score of GSS (Guest Satisfaction of) 84% fully satisfied by the end of
20xx

3.2

MACRO ENVIRONMENTAL ANALYSIS:

Briefly describe

Full Name (region):

Area Size

Population

Head of the zone

Borders

Dialling Code

Border Points

Road Networks

Time & Measures

Airports

Climate

Currency

Postal services

Courier Services

Government Office Hours

Internet Services

Please complete:
Indicator/Year

2013

2014

2015

2016

Nominal GDP
GDP Growth (%)
Real GDP
CPI (%)
Trade Balance
Current Account
Foreign exchange reserves
(USD million)
Source: Ministry of Finance and National Economy XXXX

Economic Indicators graph

The model will underlies econometric forecast relying on historical relationships between
economic variables. These variables include gross domestic product (GDP) per capita, room
rates, employment rates and other economical factors.
Economy overview:
GDP

xx% (2009 est.)

GDP - per capita:

Purchasing power parity

GDP - composition by sector:

Agriculture: %
industry: %
services: % (2009 est.)

Investment (gross fixed):

xx% of GDP (2009 est.)

Household income or consumption by % share:

lowest %:
highest %

Inflation rate (consumer prices):

Labour force:
Labour force - by occupation:
Unemployment rate:
Agriculture - products:
Industries:

3.3

MARKET FORCES

Briefly describe future economic activities and how they will affect the hotel occupancy rate
anticipate the economic trends and find solutions to maximise occupancy rate.
Arrival trends

County: the number of inbound tourism arrivals into the country and domestic tourism
within the country. Include airline capacities. Focus on changes both negative and
positive, i.e., new flights to the city or re-routings, etc.
City: the tourism arrival figures for the specific city (inbound and domestic)

Geographical Origin

Identify the major geographical origin of the hotels anticipated guests, and ensure that
it is relevant to the context of the market.

Supply and Demand

The room inventory supply and occupancy levels of hotels in the market with specific
focus on the direct competitor set. It is important to agree what the competitor set will be
for the hotel and this should already been articulated in the positioning statement (in the
Executive Overview or in the Positioning Statement)

room inventory

room supply

room demand

industry occupancy

Collect tourist board hotel industry statistics; include the most reliable, relevant data in
the workbook.

Worksheet: the tourism and hotel industry market trends table provides a summary
displaying the demand and supply trends in the city for hotels or direct competition and
all other hotels that compete with your hotel indirectly.

Seasonality

Year the low, shoulder and high seasons

Special Dates

Create a listing of critical / important dated including public holidays, holidays, trade
shows, etc.

Day of week/ Week-end

Identify if the market has any particular trends that support a variation in day of week
demand for hotel accommodation.

The business market mix will be different from the weekday to weekend. The
corporate business will support most of the weekday business (up to 80% of total mix)
while the leisure segment will dominate the weekend business (up to 60% of total mix).

We anticipate that the corporate segment will drop down to 25-28% of total guest mix
in the weekend.

Example of Graph:

Geographical Origin of Business

3.4

MARKET MIX

Briefly describe the market mix, which will specify the customer segments that the hotel will
focus on. This can include the following:

Business FIT

Business groups

Airline crew

Leisure FIT

Leisure groups

Specify the marketing objectives and its corresponding strategies by market segments

measurable and time bound

specific and result oriented

challenging but achievable

The immediate pricing will be based on a Preopening promotional rate; this will need
to be balanced with the corporate accounts

Examples:

Create the two tier rack rates for the first six months and then for the full opening
which occurs just prior to the high season. These rates booked by phone for Rack paying
FIT. The main revenue stream will be the FIT Rooms Revenue Segment, mainly based on
GCC & Russian business. This high value segment affects all other areas of the operation
such as (F&B outlets, room service and laundry). For this reason, a direct sales approach
toward this clientele is required. It is important to note that this segment is highly
profitable due to its impact on ARR and REVPAR.

The secondary areas of the room revenue are the corporate segment and the meetings
Segment. These also bring about approx. 30-35% of rooms revenue. This is done to
maintain and then further develop these segments

Pegged the corporate segment to gain a maximum number of accounts for 2010 and
2011 based on the size of the property

Local and International RFPs will be completed for the first year as soon as possible,
local ones including added value or a discount until the full opening. Local bookings will
be by phone whereas International bookings will be made through GDS channels

MICE rates will be aligned with the main competitors XXX and XXX to ensure the
highest chance for 2010, once the property positioned on the market, a revision of these

will be done based on the location of the hotel versus these competitors, the channel will
be through ISO RFPs email and fax requests. In addition, banqueting should become the
profit driver of F&B with excellent revenues thanks to citywide conventions.

Wholesale distribution directed towards GCC leisure business, a review of the

potential of lower budget business have to be done as well as possible agreements with
Russian agencies if locally represented or affiliated to Kempinski

On the Airlines business will focus towards the 120 non-renovated rooms, which will
not be refurbished before 2010 The British Airways contract will not be renewed, and
therefore another airline partner needs to be contracted. Alternatives need to look at

Pure internet rates (ex. Early booker), promotions and seasonal offers will develop to
be appealing during the soft opening period. Internet marketing, including key words,
destination tools and search engines as well as reference tools will be used to market the
home page

The hotel has signed up accordingly with to the various road shows, and will
aggressively contact all the key accounts for new contracts

To be developed is outside catering in the XXX region, highly profitable and an

excellent opportunity to display the Kempinski brand in the local and international
community. These areas must be marketed separately and have the means and standards
to grow the overall revenues and profit. The restaurants will be positioned as XXX and
two concepts will be developed. With sufficient market exposure, correct pricing, product
quality and service they will become profit-generating outlets.

3.5

COMPETITIVE MARKET COMPARISON OF PERFORMANCE

Define the hotel competition; it is highly probable that you compete with very different hotels /
furnished apartments for various customers segments. It is important to understand the mix of
hotels the various customers segments choose among when making accommodation decisions. It
may be possible that your hotel compete with hotels in different cities especially in the case of
MICE business.

Competitive Set

Direct: includes the 2 to 5 hotels that the hotel competes with

Indirect: defined as all other hotels that the hotel competes with for at least one
customer segment
Complete the competitor analysis table with the following factors:

State new hotel development projects entering the market in the coming years and
possible closure of competitor hotels
Rooms available

Latest figures 2015

2013
Ritz-Carlton

% Occ

Average Rate

% Occ

Average Rate

%
%
%
%
%
%
%

2014
Ritz-Carlton

%
%
%
%
%
%
%

2015 YTD Aug

Ritz-Carlton

% Occ
%
%
%
%
%
%
%

Average Rate

Breakdown of figures
5*****
Hotel

Month

July

Year

2013

The RitzCarlton

3rd
Qtr

August
2014

2015

2013

2014

2015

2013

2014

2015

Occupancy %
Average
Room Rate

Hotel xxx

Occupancy %
Average
Room Rate

Hotel xxx

Occupancy %
Average
Room Rate

Hotel Name
Location
Distance To City Centre; km
Distance To Exhibition Centre
Distance To Airport; km
Category
Last Renovation
Number of Rooms
Nr. of Suites, Studios, Apartments
Ballroom
Function Rooms
Largest Function Room
W-LAN
Business Centre
Restaurants
Caf/Bar
FMS

Ritz
Carlton
*****

xxx xxx xxx xxx xxx

***** ***** ***** ***** *****

Hotel Name

Ritz
Carlton
*****

xxx xxx xxx xxx xxx

***** ***** ***** ***** *****

RATE

3.6

COMPETITIVE SWOT ANALYSIS

Identify each of your direct competitors strengths, weaknesses, opportunities and threats. Specify
which particular market segments this would relate. You should provide a ready assessment of
the relative strength and competitive advantage (or otherwise) the hotel will have.
Strengths

Weaknesses

Opportunities

Threats

3.7

INTERNAL SWOT

Briefly describe of the strengths and weaknesses of your hotel for the various customer segments
based on their needs and wants from a hotel in your city. It is easier to form tactics and actions
for the customer segments when we know our strengths and weaknesses vis--vis our
competition.
Customer decision-making factors should include:

Location

Facilities / product

Service quality

Price / value

Loyalty programme

Repeat guest

Reputation / market awareness

Reservation network

Distribution access

What are the hotels unique selling points that create competitive advantages over the
hotel competition:

USP Product feature: based on product features associated with the product, ranging
from what it does to the quality of your support services.

USP Association: communicated by association with a well-known personality.

factors of the hotel unique amongst its competitor set : distinctive grand ballroom
designed by Mr. X with 5m ceiling, cedar wood walls and abundant natural daylight with
seating for 100 guests

Points of differentiation relating to the destination where the hotel is located when
competing against other destinations for the same market especially MICE destinations:
located at a historical landmark.

Describe critical issues/key factors, which have or will have a material impact on the
hotel operations and / or its financial results. These should be defined in short, medium
and long term where appropriate (the hotel location may be an issue at present but in 5
years time the area will have developed and the location could well be a major plus point.

3.8

PRICING

Briefly describe
Examples:

Identify the thought process that justifies the rate and pricing structure of the hotel and
the channel management requirements of the hotel. This must include an assessment of
internet distribution and the relationship between identified customer segments and their
anticipated channels of distribution.

A Preopening rate has been defined from XX valid from XX to XX. It will be promote
in all categories.

During the next 6 months period in 2010, we will be offering a special introductory
25% discount to the Corporate FIT and Corporate Groups in order to provide more
opportunities for the corporations to experience the hotel. This, in turn, will help the
future business because of the word of mouth advertising effect.

Beginning the calendar year 2010, the maximum discount will be reduced to 20%

For the corporate negotiated companies, two room categories will be offer the lead in
standard room and Superior room, other rooms will be sold at published corporate rate

All RFPs for the corporate client have been process with the International Sales
offices and have been loaded in the systems accordingly. During the soft-opening period,
a 30% discount is offer to the applicable corporate rates.

3.9

Describe the Room Discount Policy

ROOM INVENTORY PRICING ANALYSIS

By room types available:

Standard Rooms

Superior Room

Deluxe Room

Deluxe View

Junior Suite

Deluxe Junior

Presidential Suites

Individual feature suites

5*****H
otel

Percent of
Occupancy

Average Room
Rate

REVPAR

Rooms Sold

Rooms
Revenue

The Ritz- 2013 2014 2015 2013 2014 2015 2013 2014 201 2013 2014 201 2013 2014 201
5
5
5
Carlton
*****
XXX
*****

Categories:
Hotels