Advertisement Action Plan ( Channel,Segment, Budget ) Year 3 Marketing Advertisement objectives • Increasing 50% in direct booking withina period of 12 months. • Build brand awareness and reputation by increasing website visitors to 15000by end of year 3.• To increase market share to 20% by end of year 3.
Market SegmentAs our hotel is located in the city centerwith many office buildings, our main target segment is business guests, as theyhave more spending power and are less price sensitive. However during theweekends we will foucs on leisure guests such as families. Marketing BudgetIn the Second year of operations, weincreased our advertisment budget and advertisment in all catagories, we receivedpositive feed back all year round regarding our strong marketing image, marketpresence as well as our special offers and easy accessibility to hotelinformation. This year we will spend 3% more on each category to continue theperformance. Marketing Strategy The Internet is most important marketingdistribution channel in hospitality industry. Internet marketing can help hotelgenerate siginificant revenues. We believe that a complete, return oninvestment centric Internet marketing strategy is the perfect tool in thiscompetitive environment. Besides building a convenient and helpful hotelwebsites below listed are other marketing strategies.
Building strong TripAdvisor profile TripAdvisor is the largest travel review site in the world, this is a greatplatform for customers to find our hotel online among competitors, leavesuggestions, and give recommendations to other travelers. Attracting locals Starting off by attracting locals tobecoming our regular F&B customers with discounts and special promotionssuch as nightly happy hours. Making our hotel not soley relying on tourist.
Locals can also serve as a word of mouth advertisment and recommending ourhotel to others. Loyalty Programloyalty program to rewards regular customerswith discounts, freebies, and promotional incentives. It’s an efficient way toget repeat guests. Business travelers often visit the same city many timeduring a particualr time frame. A loyalty program can encourage them to stay atour hotel every time they visit the city. Perks such as discount on firstbooking or awarding points for every stay and recommendations will be offeredfor members. Refurbishment, Facilities and Services During Year 1 and 2 we put a lot ofimportance on refurbishment and facilities, as we believe that it is our mainsource to increase revenue. We signed a cleaning service contract for allfacilities all year round to keep up with the quality service and product wepromised to offer.
During these two years we received feedback that we have awide rang of facilities and services. This proves that investing budget inRefurbishment, Facilities and services has a positive impact. We would like toincrease our guest satisfaction average percentage to 90% in year 3 as comparedto 75% in year 2 as guest satisfaction has an influence on ADR. We will startrefurbishment during low season in quarter 1 so that by high season, everythingwill be new and high quality. We will also introduce new facilities such aslobby bar and executive lounge as we have many business guests. By meetings allthe needs of our guests and providing quality facilities we believe our guestswill be satisfied and their guest perceived value would be higher which willgive us the opportunity to increase our ADR contributing to the revenue. Debts and Reimbursement Our remaining Bank loan in Year 2 is18,980,446 SFr and the cash we have is 942,563 SFr.
We are expecting a 3percent increase in profit in year 3. Major renovations are not expected duringthis year of operations, therefore most of our cash in hand will be used to payloans. This can help us to reduce our expenses in paying loan interests and leaveus with more capital and benefits the hotel by achieving maximum profitabilitylevel.