Expanding Hotel Business Market Plan Term Paper

Excerpt from Term Paper :

The hotel seeks to promote its strategic location and incomparable services to boost its sales to the majority of people and tourists visiting Southern California. Its proximity to central Loss Angeles also gives an advantage to the hotel to target the urban dwellers seeking recreation facilities outside the central city.

Marketing programs

Pricing of services and products offered by the Long beach hotel is under management and control of market conditions of demand and supply. Prices are elastic depending on the season of the year. During peak periods, prices for accommodation services range from $100 to $400. These prices aim to meet the demands of a bigger range of people. The prices vary depending on the capability of a customer. Price charge depends on the facilities available in the hotel rooms and other services that a customer may require such as dinner and breakfast. Charges such as $400 per night are inclusive of dinner and breakfast. The market plan is keen on the pricing strategy adopted bearing the impact it may cause to the business. Pricing mechanism considers the rates of charges by competing businesses and formulate a pricing system will create a competitive advantage. Pricing decisions that are strategically or even tactically from a position of strength are highly rewarding (Stapleton & Thomas, 1998).

The distribution channels for Long beach hotel include the use of online channels such as social networks and websites. Online channel of distribution is fast, cheap and covers a wide geographical area. Getting feedback through online channels is also easy. The hotel has a website in which it describes the services and products offered.


Long beach hotel targets to use billboards that offer direction and information about the location of the hotel. Advertising will also make use of monthly magazines and articles especially in the tourism sector. Personal agents will use brochures and posters that give detailed information about the services and products of the hotel. In a bid to expand sales and capture a wide market, television and radio advertisement will assist to create this awareness.

Market research

Market research is prior to promotional and advertising activities to determine the viability of the business in the target market. Market research will collect data pertaining to the taste and preferences of the market, the recreational facilities people prefer and the nature of competition. Research is through quantitative methods in order to cover a wide geographical area. Information for this method relies on the use of questionnaires, secondary sources and observation. The numerical evidence is analyzed to draw conclusions and test hypothesis. The hotel performs research on the external environment and the target markets, and conducts the analysis of the information for marketing of the products (Westwood, 2002). Research will provide key information about the market organization and viability of the hotel business.

Financial forecast

Long beach hotel focuses on penetrating the hotel industry and gains the necessary exposure. $80,000 will serve the purpose of marketing and promoting the image of the business within the next financial period. This huge allocation aims to increase revenues to $10,000,000 and an increase in marginal profits by 4%. Long beach hotel will have to take additional risks in order to meet the requirements of new customers and cover a larger geographical area. In expanding the business, the hotel looks forward to increasing its overall budget to cater for promotional costs in new areas and developing new services that will attract more customers.


Long beach hotel has the potential for growth in the hotel industry because of its many advantages compared to the competitors. Effective implementation of the marketing plan will promote these advantages and raise the general revenues for the business. The strategic location of the hotel captures both tourists and all ages of people looking for adventure in downtown Disney land. The best image portrayed by the hotel and incomparable services will help see the business expand to greater heights. Effective cost control and use of strategic channels of distribution will facilitate the penetration into new markets and attract new customers. Targeting the increasing number of tourists in South California will boosts sales and revenues for the hotel business. The market plan helps to provide direction to activities that aim to promote the image and sales of the business. Regular review of the plan will help to translate the market strategies that are beneficial to the business (Nijssen & Frambach, 2001).


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Stapleton, J & Thomas, J, M. (1998). How to prepare a marketing plan: A guide to reaching the consumer market. Brookfield: Growing publishing limited

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Dibb, S & Simkin, L. (2008). Marketing planning: A workbook for marketing managers.

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