Marketing plan for Hyatt Hotels Corporation new service offering

Hyatt Marketing Plan

Situational Analysis

Environmental Analysis

Strengths

Weaknesses

Opportunities

Threats

Barrier to Marketing Planning

Marketing Planning

Product

Techniques for New Product Development for the Business Traveler

Marketing Mix

Products

Price

Distribution

Promotion

Ethical Issues

Budget

Implementation

Hyatt Hotels Corporations is a chain of hotels and one of the largest and renowned corporations in the hospitality industry. The corporation has been in the business for several years and has become a brand name amongst high-end hotels. The company is always keen on providing the best hospitality services to its guests. In particular, the company is keen on making the most of the increasing numbers of business travelers across the world. The company aims to provide the business traveler clienteles a 'home away from home' and an office away from their own offices. The product offering presented to the management team of Hyatt Industries in this case is the introduction of proper work office spaces within the rooms. This includes ergonomic chairs and desks, proper lighting, easy access to power outlets, fax and printing machines and of course the already established Wi-Fi. These in-room amenities will offer great convenience to all business travelers as they can easily work from their rooms as these work-conducive amenities are deemed necessary taking into account the nature of their jobs. An evaluation of the company's internal strengths and weaknesses and external opportunities and threats aided in undertaking a basis for this strategic analysis and marketing plan. The plan concentrates on the company's growth strategy, proposing ways in which it can exploit prevailing consumer relationships, and on the growth of new products and services targeted to specific consumers, the 'business travelers'. In addition, the marketing plan considers the barriers to marketing planning and the ethics that ought to be considered in its implementation.

Introduction

Hyatt Hotels Corporation is ranked as the 9th largest international hotel chain in the globe. The group of hotels specializes through being located in strategic interior city locations and offering service, first and foremost, to commercial and business individuals. The business operations of Hyatt Hotels Corporations comprises of several chains. The group of hotels boasts of several renowned brands with the Hyatt Regency Brand being the oldest one in the corporation. The Park Hyatt and Grand Hyatt were introduced recently. In addition, and more important in this case, the Hyatt place is designed as a service which offers luxury and hospitality services to the business traveler (Hyatt Hotel Corporation Website, 2015).

With the advancement in globalization, the hotel industry is constantly experiencing demand and visits from corporate travelers. The business travel market has come to be a lucrative in modern times. According to Alexandria (2015), business travel spending in the United States is anticipated to surpass the $300 billion mark by the end of this year. This marks a significant 5% increase from the previous year. Alexandria (2015) asserts that the coming year's stance expected an increase in economic activity and consumer confidence, with travel spending forecasted to rise by about 6%. Business trips are tipped to rise by three percent to an average of almost 40,000 extra business trips every day. Hyatt Hotels Corporation ought to make the most of this aspect. In order to lure and attract business travelers, it is imperative for the company to provide a home away from home and an office away from the office. The following marketing plan is purposed to present the senior management with a new product or service that is specifically targeted towards this group.

The product package presented in this plan is centered on 'in-room' conveniences. Having already introduced the package of free Wi-Fi to all guests of the hotel, this marketing plan intends on making the Hyatt brand a favored name amongst business travelers across the world. The product package is making the guest rooms within the hotel conducive to office work. In particular, it is recommended that the group of hotels should offer consumers the convenience of working at the comfort of their rooms and not necessarily having to go to the hotel business center to work. Therefore, the product package is the introduction of proper work office spaces within the rooms. This includes ergonomic chairs and desks, proper lighting, easy access to power outlets, fax and printing machines and of course the already established Wi-Fi. These in-room amenities will offer great convenience to all business travelers as they can easily work from their rooms as these work-conducive amenities are deemed necessary taking into account the nature of their jobs.

Situational Analysis

Environmental Analysis

1. Competitive Forces

The level of competition in the hotel industry is very strong not only on a national level but also on a global scale. The competition is about to increase further and become more intense to lure the business travelers. However, it is imperative to note that Hyatt Hotels Corporation has a competitive advantage, as it is one of the few large hotels to offer free Wi-Fi connectivity services to all its guests. The introduction of this product offering will accentuate the existing convenience services offered by the company and boost its chances against its rivals in the marketplace.

2. Economic Forces

Nationally and internationally, several companies in the hotel industry have been keen on being cost effective due to the state of the economy. This has been the case particularly for big hotels as the recession has largely affected the hospitality industry because of reduction in travelling. However, the business travel sector is anticipated to grow in the coming year due to the growth in the economy. This will offer the company a great opportunity to present its product offerings to these new potential in addition to existent clientele. Mass media advertising will have to be boosted by the company through planned investment in order to publicize the new product offerings to its consumer base across the world.

3. Political forces

There are no anticipated political influences, occurrences or events that could adversely affect the operations of the product offering being presented.

4. Technological forces

A major emerging technological trend involves connectivity. This not only implies just having Wi-Fi in the rooms of the clients. It incorporates new technological advances in the way of being able to connect all of the devices such as laptop and phones to the TV screen and also work with them in tandem. This necessitates suitable power ports and high speeds. Another advancement is ergonomics. This is having work spaces that consider the way in which the individuals sit in the working space to achieve the most productivity. For instance, providing seating furniture to reduce possibility of back pains and being able to easily move around the work place.

5. Sociocultural forces

In present day society, consumers have to optimize time for work or relaxation. The trademarks of successful products in the contemporary lie in the aspect of convenience and ease of use. In a nutshell, if the product offering does not save time and is not easy to use, consumers will most probaly overlook it. The working spaces will save time in moving around to the business centers to print or make conference calls. In addition, they will be easy to use as they increase connectivity and ability to relax within the room at the same time. Being in the information age, the free Wi-Fi for the guests and high speeds will only serve as a competitive advantage for the company.

SWOT Analysis

In definition, SWOT analysis is a helpful technique that is used for organizational auditing. This technique is employed to analyze and understand the strong suits of a company and the weaknesses to which it is susceptible. It also identifies the opportunities open to the company and the threats it faces. An organization can use this technique to ascertain whether an aspect is an internal factor and the manner in which it impedes benefits of the company, not only in the present state but also in the prospective future (Warner, 2010).

The following segment encompasses the SWOT Analysis of Hyatt Hotels Corporation.

Strengths

1. Renowned products

Its customers as well as the competitors in the hospitality industry know Hyatt Hotels Corporation for quality, dependability and reliable products and services. Through these quality products, the company has been able to maintain a stable and loyal customer base..

2. Heritage Brand of the company

One of the strengths of Hyatt Hotels Corporation is that it has created a brand name for itself since its institution. Since its establishment, the company is known for its specialization in providing the best hospitality products and services. Clients appreciate the brand and choose the company because of it.

3. Innovative Culture

One of the strengths that the company enjoys is the innovative culture that is preserved within the organization. Hyatt is always keen to implement ground-breaking and novel products in the hotel industry and the it has accrued continued benefits from attaining such creative ideas. For instance, Hyatt is one of the first hotel companies to offer free Wi-Fi to all guests.

Weaknesses

1. Intrinsic Attributes can be copied

The downside of this product offering being presented is that its characteristics can be easily copied by other rival companies. Since these in-room convenience amenities can be perceived in the website of the company, rival companies can easily copy the move made by Hyatt. This in turn marginalizes the competitive advantage attained by the organization.

2. Lack of diversification

Another weakness is that the product line as well as the consumer base do not have extensive diversification. Dependency on prevailing rates of rebooking and reorder rates could bring about complacency, increase the level of competition, or generate a false sense of consumer satisfaction.

Opportunities

1. Increase in business travelers

Hyatt hotels has a great opportunity to take advantage of the increasing numbers of business travelers across the world. With the advancement in globalization, there is an upsurge of corporate and business travelers and the company ought to maximize on it.

2. The growth in the economy

The recession in the global economy has resided and it is slowly growing back to normalcy. This is good news for Hyatt Hotel Corporation as the economy growth boosts the hotel industry.

Threats

1. Strong competition

Hyatt Hotels faces intense competition from other top corporations in the hotel industry. It is important for the company to recognize that its products can be easily substituted and its customers can easily shift to other companies.

2. Being beaten to the punch

As aforementioned, the hotel industry is an intense and competitive industry. Therefore, Hyatt faces the threat that if it does not embrace this plan, a rival company will do so and attain a competitive advantage against the company.

Barrier to Marketing Planning

According to McDonald (1992), the general purpose of marketing planning, and its main emphasis, is the identification and formation of competitive advantage. The following are some of the barriers to marketing planning to Hyatt Hotels Corporation and how the organization can overcome these obstacles. One of the main barriers that could prevent the implementation of this presented plan is the lack of support from line management. The conceivable resistance from the management could take place if they are given the new proposed system in the form of a handbook and then instructed to implement it. The lack of discussion and explanation with other managers of different areas within the company can act as a huge obstacle to the implementation of this plan. In addition, lack of their inclusion can negative reactions like a lack of sufficient time and lack of understanding. Consequently, the organization can experience a lack of compliance. The company cannot move devoid of the support from line managers. These individuals are in fact the most significant parties to implement plans of change and growth, as they are the ones who implement the work itself. They are the real forces to make the plans fruitful through compliant day-to-day work activities (Meldrum, 2015).

The suggested solution in overcoming this barrier is to obtain the support and cooperation of the line managers. One of the ways could be by seeking an a high-level supporter in the company who will enthusiastically endorse the implementation of a system, participate with the line managers, and take into account problems as they materialize when the new system is presented. In addition, the marketing team ought to also make certain that the planning and implementation system of the plan is beneficial to all personnel within the organization. More so, they ought to ascertain that these individuals understand the need for this new plan and its benefits to the organization as a whole (Meldrum, 2015).

Another obstacle lies with the systems and procedures. From time to time, the lack of data and information can act as an obstacle to marketing planning. This is because ultimately, inappropriate and unsuitable systems may largely hinder marketing planning. For example, lack of a market survey causes the marketing team to depend on assumptions to determine the paramount marketing method for the targeted market. Unsuitable systems might delay execution of the marketing plan. The marketing team not authorized to compel resources might have to pursue endorsement for each piece of spending, slowing down effectiveness and timely execution. The marketing team not sanctioned to take decisions devoid of a comprehensive suggestion and discussions would relinquish good prospects that diminish very fast. The solution to this barrier is ensuring that there is effective research in order to obtain sufficient data and information. More so, personnel have to be given authority for decision making in order to ensure there is no dragging in the implementation.

Marketing Planning

Product

Marketing planning is basically a rational categorization and a sequence of activities setting in motion the setting of marketing ideas and the devising of plans for attaining them. Businesses in general get through some sort of management procedure in instituting marketing plans. Business travelers encompasses individuals who barely get the time to sit at home and incessantly undertake business activities and presentations during their trips. This implies that it is important to provide the consumers a sense of a home away from home and an office away from the office. One aspect that is central to this is in-room convenience for the consumers. The product offering presented to the management team of Hyatt Industries in this case is the introduction of proper work office spaces within the rooms. This includes ergonomic chairs and desks, proper lighting, easy access to power outlets, fax and printing machines and of course the already established Wi-Fi.

Techniques for New Product Development for the Business Traveler

This section of the marketing plan outlines the different techniques that will be employed for the product development of the targeted consumer that is the business traveler. One of the techniques is seeking reviews and recommendations from the consumer regarding their specific preferences and predispositions. This technique includes ascertaining what the consumers picture their ideal working space in their guest rooms ought to look like. Guest feedback forms and surveys can be very helpful in this development. Since business travelers are individuals who are busy most of the time, this can be attained by filling such answers as they check out or as direct emails (Kotler and Armstrong, 2004)

Marketing Mix

Products

The new product offering markets not just the creation of a working space for the business traveler guests but also increases the in-room convenience in general. The intangible qualities of this product offering are its capacity to meet or surpass customer expectations dependably. However, the downside to this is that other top hotel companies can be easily copy these attributes.However, being the initial company to implement this increases the competitive advantage of Hyatt.

Price

Hyatt Hotels Corporation provides a high-quality specialty- marketing product personalized to its customers' necessities. The value of this product and service is mirrored in its premium price. However, the company ought to be subtle to the price elasticity of its product and general consumer demand (Kotler, 1997).

Distribution

Hyatt Hotels Corporation will employ direct marketing with respect to this plan. Bearing in mind that the product offering is compacted, transportable, and nonperishable, it can be shipped from a central location direct to the different locations of Hyatt hotels across the world. The fact that the company is able to get this product offering to all of its locations around the world is an asset in retailing its products and services (Kotler, 1997).

Promotion

Taking into consideration that a majority of Hyatt's customers rebook the hotel in most of their business travels, promotional activities ought to lay emphasis on new product offerings through direct-mail promotion and trade periodicals or department publications. Any outstanding promotional funds could be apportioned to personal selling in the way of sales performance gratuities of the present and new products (Kotler, 1997).

Ethical Issues

In a marketing environment that is incessantly changing and developing, there is minimal delineation of permissible and ethical issues at the end that in due course turns out be vague to a marketer. This is owing to the fact that the marketer tends to be more vested in the functional aspect of the ordinary activities of the business. The ethical issues turn to be very significant for any marketer owing to copious selections, while facing intense competition in the prevailing business setting. Taking into account the proposal being presented, the following are some of the possible ethical issues that might affect the plan and also the ways in which to address them.