The property ranks in ninetieth percentile for guest satisfaction and we want our guest to be a part of the positive side of travel, providing the spaces, revises and functionality that enrich our guests' lives whenever they stay with us. The primary objective of this marketing plan is to increase the amount of business travelers we have in-house during weekdays. Increasing the amount of business travelers should also increase our average weekly occupancy during the week by 10%.
We also plan to increase brand competitive advantage by using Marriott International marketing tools at property level. By developing partnerships with local arts museums and artists, we hope to improve our brand image for style and value while gaining potential customers. Through evening receptions and focused advertising campaigns, we hope to improve brand recognition with the frequent business traveler, those booking reservations for frequent travelers, and leisure travelers. Situation Analysis Market Analysis Our hotel is located in Baton Rouge, LA.
The petrochemical industry is a huge part of the city economy. Baton Rouge is home to the nation's 2nd (and the world's 1 lath) largest refinery - Snowmobile--- located Just north of the state capitol building. Because the petrochemical industry is so capital-intensive, when it expands so does industrial construction. 9. % of the Baton Rouge workforce is in construction. One of Louisianan three Fortune 500 companies - Shaw, Inc. Recently purchased by Chicago Bridge and Iron, - is headquartered in Baton Rouge and the company's focus is construction.
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Baton Rouge is also the location of numerous government agencies including the State Capitol and the office complex associated with it and two major state universities - Louisiana State University and Southern University. Also, Baton Rouge Community College is one of the largest community colleges in Louisiana. The national economy went into a recession and began losing Jobs in January 2008. As a result, Baton Rouge lost 2. 96% of its Job and budgetary shortfalls in the state government led to layoffs in that sector of about 1,300 workers. Baton Rouge recovered steadily from the Job lost at a rate of . 3%. It was projected that the region would add 4,400 Jobs in 2012. This increase in Jobs was mainly related to the construction sector with 3. 4 billion in announced projects. Two areas where layoffs Springtail Suites Baton Rouge Marketing Plan By Diamond may happen are in the state government employment and employment in the insurance area with Blue Cross Blue Shield. As of August 2013, a report released by he Baton Rouge Area Chamber shows that Jobs in the construction and professional business and services sections showed the most increases.
It also shows a decrease in the number of government Jobs by 2,200. There has also been a large influx of movie productions because of the tax breaks that Louisiana has implemented for movie productions companies. Because of Louisiana location to the Gulf of Mexico, hurricane season has a dramatic impact on the area's economy. In 2012, Hurricane Isaac was estimated to have possibly caused up to $2 billion in damages. This figure includes damages to crops, residential and commercial property.
This is to the infinite of construction companies and area hotels with the need for new construction and a place to house workers for both construction companies as well as emergency responders for companies like Enterer and the government agency FEM.. When it comes to tourism in Louisiana, the city of New Orleans is by far the most visited city in the state. Because Baton Rouge is only an hour's drive away, the impact that of tourism in New Orleans directly affect the amount of tourism in Baton Rouge. Baton Rouge and Lafayette tourist traffic historically correlates with New Orleans.
As expected, New Orleans and surrounding areas experienced historic lows n tourism following Hurricane Strain. Since then, the area has seen a slow and steady improvement in tourism. As New Orleans improves, Baton Rouge and Lafayette should also see more traditional leisure tourists. The Competition We have four hotel competitors in our market: Hyatt Place (1. 7 miles away) - A brand of Hyatt Hotels and Resorts. Competes in same upper moderate lifestyle space and delivers newer product with a portfolio that is 100% on strategy. Their marketing selling points are style and innovation.
In 2013 Hyatt Place is number one in guest satisfaction for upscale hotels, awarded by J. D. Power and Associates. Hilton Garden Inn (12 miles away) and Hampton Inn and Suites (two locations, 3. 3 and 6. 2 miles away) - Both brands of Hilton Hotels and Resorts, a hotel group ranked second in the world. In 2012, Springtail Suites and Hilton Garden Inn tied in ranking for guest satisfaction for upscale hotels surveyed by J. D. Power and Associates. HIGH has strong portfolio brand with new product. Hampton Inn and Suites huge distribution and a product that that upper moderate consumers like.
Holiday Inn (2 locations, 2. 1 and 2. 4 miles away) - An GIG brand. GIG is first in world ranking for hotel groups. The Holiday Inn brand is ranked first in the world among brands. Their aggressive pruning, renovation and new positioning have strengthened the brand, allowing them to get back into upper moderate tier consideration set. The Customer In 2012, the top accounts for Springtail Suites Baton Rouge were FEM. (Federal Emergency management Agency), Enterer (an energy company dealing primarily with energy production).
This was as a result of the damages caused by Hurricane Isaac. Many FEM. workers stayed until the early months of 2013. Film production crews made up a considerable portion of the guests at Springtail. The production crew embers are mostly from California. A small percentage of crew members were from the New Orleans area. Employees with nearby offices at Shaw (now Chicago Bridge and Iron), Blue Cross Blue Shield, and Our Lady of Lake Regional Medical center stayed at our note when they were in town on business.
Their stays were either monthly visits on weekdays of 2-4 nights a week or weekly weekday stays of 4 nights per week. A small percentage of weekday stays are from guests who are visiting the nearby medical centers. Our Lady of Lake and baton Rouge General are both within 2 miles of the hotel. January through August weekend guest are visiting family, tending local festivals, conventions, or competitions. Most group stays for sports teams are booked during these months. During the months of August through December, weekend guests are in town for local collegiate football.
The customer base for weekend guests are alumni and fans of Louisiana State University, ranging in age from 21-65. The Property Marriott International, owner of the Springtail Suites brand, provides marketing material for all brands. Decisions are made at the property level as to if these materials will be used. Much of the marketing material provided by Marriott International went unused in 2012. The number of room nights being generated by Enterer and FEM. kept the SABERS at 75% - 90% occupancy most of the 2012.
No marketing plans were deemed necessary. We rode the wave of this influx of guests until mid-2013 when these guests check out of the hotel. No marketing plan was undertaken for the duration of the year. As a result, budgets set for 2013, based on the revenue generated by Hurricane Isaac in 2012, have not been met. Occupancy levels during weekdays average 50%-75%. We have not kept in touch with the groups that have stayed previously and there is no updated information to contact those groups. SABERS underwent a complete renovation January-March 2013.
To reintroduce the new property, in May we hosted an evening reception and invited business contacts for local companies including booking agencies and event planners. Current in-house guests were invited and encouraged to bring coworkers and friends. No specific goals were set to determine the success of the event. SOOT Analysis Strengths Property location and Design - Newly renovated hotel. Renovations were completed in March of 2013. We are conveniently located less than one mile from Interstate 10, visible from the highway and nearby two major hospitals and Shaw, Inc - a Fortune 00 company.
Newly hired, experienced sales coordinator who has extensive knowledge of the Springtail Suites brand. Marriott International, owner of the Springtail Suites brand, third largest hotel chain in the world. Promotional and advertising resources are available through Marriott International reducing advertising expenses for the hotel property. Weaknesses Lack of initiative - Property Management has never deemed it necessary to have a marketing plan. No marketing plan has ever been implemented for this property. Limited advertising and marketing budget.
Opportunities As the United States economy continues to rebound from recession, travel budgets for companies increase producing more prospective customers for our brand. In the Baton Rouge market, new construction projects are increasing the number of business travelers working the area. The number of business professional Jobs and construction Jobs increased tremendously in the past year. Threats The Hyatt Place, J D Power and Associates number one ranked note in guest satisfaction, is less than two miles away from our property and competes in our market.
The government cut the number of employees they have by more than 2,000 his past year. In the past, we have received a large portion of revenue from government employees. GIG brand, Holiday Inn and Holiday in express are gaining notoriety due to recent rebinding and renovations to Holiday Inn properties. The brand was ranked number one in the same market as Springtail Suites. Objectives and Strategies Marketing Objective Target guests are frequent business travelers looking for a hotel with great style at less than full service prices, and believes that space, style and ambiance are very important.
They currently find business travel both stressful and uninspired, often going their sense of self and sense of style in the "sea of sameness" that represents the upper moderate tier business hotel category. These guests are looking for a hotel to be an antidote to the stress of business travel, so they leave better, calmer, and more enriched than when they arrived. Secondary targets are business travelers for small and local business as well as pleasure travelers for weekend events. Increase brand competitive advantage by using Marriott International marketing tools at property level.
Increase the amount of business travelers staying at the hotel during the week. Increase average weekday occupancy percentage to 75%-85%. Increase number of groups in the hotels database. Positioning Statement Space, Style, Value. Only Springtail Suites delivers the space, and the stylish, inspiring spaces that enrich our guests' travel. Marketing Strategies Use Marriott Global source to access tools (Airtight and Market Share tools) to develop marketing and PR initiatives. Target frequent business traveler through advertising in target channels.
Seek local partners in the arts and event planning community to grow group business and engage current guests and potential new guests. Action Plans & Timetable Promotions Plan - 2 Free passes to the Louisiana Arts and Science Museum This promotion would be executed during the summer months (May - August). In order to receive the complimentary passes the guest has to be staying at the hotel at a retail rate (no guest staying on a reservation booked through a third party qualifies) and be a Marriott Rewards Member. Limit 2 free tickets per guest.
Guests with multiple reservations will not receive tickets for each reservation. This promotion will help build a database of guests and encourage them to book their stays through Marriott. Mom or through central reservations. It will also engage business travelers working during the summer. This promotion would be a part of a partnership between our hotel and the Louisiana Arts and Science Museum. The LASS members and employees and could receive discounted rates for employees as compensation for passes. Offering a negotiated rate for LASS members and employees does not have a direct cost associate with it.
Special Events - Bi-weekly Evening Receptions These events would be free to attend and held on Tuesdays at 5:pm from January - April and USGS - t October. There will be tree t odd donated by local nearby restaurants and complimentary drinks. Invitations would be sent to local business with guests who currently lodge at the hotel and to businesses that are prospects for future lodging needs. This includes event planning business, reception and event halls, and local corporations. Invited business are free to invite employees to the event.
This event will give us the opportunity to display our newly renovated hotel (both the lobby area and guest rooms) as well as generate business contacts for our database. More business contacts with local companies and corporations increases our chances of generating more rooms sold on weekdays. These contacts could potentially lead to weekend group bookings for weddings and special events also. We will also use these evening receptions as a way to incorporate Airtight, a Springtail Suites brand signature customer and community event.
During the months of April and May, we will showcase artwork from a local gallery and/or a charter art school during our evening reception. The event successfully promotes Springtail Suites as a space to inspire. E-Mail Plan We will use Marriott International email template to generate professional marketing mails to send to new contacts added to our databases from promotions and special events. These emails will keep our guests and potential guests updated and promotions and special events. Emails should be sent to new contacts within one week of attendance to an evening reception.
No repeat emails for repeat reception attendants. Advertising Plan The Springtail Suite" brand launched a new integrated marketing campaign that speaks to the needs of the "Stylish Suite-seeker" target guest and leverages the "Style. Space. Value. " positioning. The campaign leverages the tagging "Style and space. Beautifully priced. " Much of the advertising for SSH is done at the corporate level. The integrated campaign features in-flight video entertainment, CNN Airport network, online and mobile pre-roll video, social media, airport security experience zones and Marriott International owned channels.
The media strategy is focused on reaching the on-the-go frequent business traveler during impacting Journey moments. The brand also launched new mobile, tablet and website lets showcasing the newest product imagery. We will couple local advertising initiatives with the national initiatives that have begun at the corporate level. To reach our frequent business travelers, or those persons responsible for preparing accommodations for business travelers in our local market, we have to begin running ads in print media forms.
We will place ads in the local Baton Rouge newspaper, The Advocate. We will also begin advertising in a local travel magazine designed to get leisure travelers familiar with the area, Welcome Greater Baton Rouge. There are corporate maintained Springtail Suites profiles on social media outlets Backbone, Twitter, Youth, and Pinsetters. They contain media that complements our brand voice of style, space and value. For more local advertising and to promote brand recognition in our market, a Backbone page will be created.
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