303MKT Corporate Marketing Strategy- PESTEL Analysis

Strengths

• It helps to measure the needs and requirements of the passengers in the market.
• It also provides high benefit to the tourism industry.
• The industry expands and explores its business activities globally.

Weaknesses

• Competitive prices and similar services could be a potential and biggest threat to the hotel industry.
• Lack of differentiation is other threat for the relaxing time hotel. Along with this, bureaucracy and several rules and legislation imposed by the government.  It is the biggest the threat to the organization. The firm needs to focus on these threats to beat the competitors in the international market. Pestle analysis is done by the hotel to hit the competitors in the market.

PESTEL analysis 

The pestle analysis includes political, economic, socio-cultural, technological and environmental factors (Cadle, Paul, and Turner, 2010). The pestle analysis has been discussed below.

Political: The rules and legislation implemented by the government on hotel industry affect the growth and success. The organization needs to focus on these factors to increase the popularity as a tourist destination.

Economic: The GDP rate, inflation rate, exchange rate and interest rate affect the profit and revenue of the organization. The relaxing time hotel needs to focus on these factors to make a good image in the global market. 

Socio-cultural: The people culture, values, customs, and religious influence the business activities and operations. Therefore, the firm needs to focus on the needs, expectations, and desires of the passengers.

Technological: Changes in the technology influences the trading operations of relaxing time hotel. The technological factors help to improve the quantity and quality of the services which are provided by the hotel industry.

Environmental: The environmental factors also affect the hotel industry, therefore, environmental awareness is becoming more popular in today’s era.

Internal environment 

The internal and external analysis plays an integral role to beat the competitors in the market. The microenvironment factors affect the performance and efficiency of the hotel. It also helps to overcome the shortcomings of the competitors in the global market. It also helps to increase and enhance the revenue and profit of the hospitality industry. The internal factors include customers, competitors, suppliers, government and employees (Evans, Stonehouse, and Campbell, 2012). The strengths and weaknesses of the external analysis have been discussed below.

Strengths

• The relaxing time hotel is located in a prime and favorable location which is easily reachable and accessible.
• The hotel has obtained a license to serve alcoholic drinks in the organization.  The internal environment helps to increase productivity and efficiency of such hotel.
• It also helps to increase the profit and revenue of the firm.

Weaknesses

• Overpricing of the room rate above the average price level of the parallel room in other competitive hotels in the world.  It is the major weakness of the firm.
• The plans and strategies of the competitors could be a threat to relaxing time hotel.

SWOT analysis 

SWOT analysis stands for strengths, weaknesses, opportunities, and threats. It helps to analyze and identify the plans, strategies, and policies of the competitors. The SWOT analysis has been discussed below (Tranter, 2009).

Strengths

• The relaxing times hotel provides a safe place to the people when they are away from home.
• The hotel also provides a contribution in the local economy. It also helps to attract more tourists in the world.
• It is the place to fulfill the needs and requirements of the clients and tourist.

Weaknesses

• High prices are charged by the relaxing time hotel. Thus, the middle class and lower class people cannot afford the prices to stay in the hotel.
• Further, the hotel also faces a unique structure in the world. Along with this, high level of sales tax is paid by the hotel.
• High competition exists in the market. It also affects the position and goodwill of company in the international market.

Opportunities

• Relaxing times hotel has an opportunity to explore and expand its business globally.
• The peak season often brings international as well as domestic tourism.
• The hotel industry helps to promote and encourage the culture of the country.

Threats

• The local conditions of the country also affect the hotel industry. Sometimes, conflict and disputes also arise among the people.
• Further, immense and high competition is other biggest threat to the company.

Growth strategies 

The growth strategies which help to gain success and growth in near future have been discussed below.

Price strategies: It one of the significant strategies of relaxing times hotel which helps to increase the revenue and profit within the organization. It means the prices must be appropriate according to the income level of the clients. This strategy is used by the hospitality industry to beat the competitors in the market. The hotel should set the suitable prices to stand out against the competitors and to attract more tourists in the world (Dolgui and Proth, 2010).

Promotional strategy: It is the second important strategy of relaxing times hotel. It helps to determine the long-term growth and success of the hospitality industry. Advertisement and promotion are done by the company to enhance and increase the number of tourists and clients in the global market. This strategy also helps to create a strong and dynamic identity of the place as a tourist destination in the international market. Along with this, various tourism campaigns and programs are conducted by the hotel industry to increase and enhance a huge number of clients and tourists in the world (Aaker and McLoughlin, 2009).

Attraction strategy: This strategy helps to capture a large number of customers in the market. It is one of the significant strategies of the marketing objectives. The attraction strategy emphasizes on the advertising activities in order to determine the growth of the relaxing time hotel. Along with this, the company needs to focus on the services to attract more tourists in the market (Swarbrooke and Page, 2012).

Push strategy: This strategy used by the hotel to stimulate and motivate the tourism. It also helps to run the business activities and operations successfully.

Porter strategy: The porter strategy is used by the hotel to beat the competitors in the world. The porter strategy includes cost leadership strategy, differentiation strategy and focus strategy (Manteghi and Zohrabi, 2011). The porter strategies have been discussed below.

• Cost leadership strategy:This strategy helps to provide cost benefits to the company. It also provides competitive benefits to the hotel industry. By using this strategy, the organization is able to set the appropriate prices for the rooms in such industry. Along with this firm can make a strong image in the market.
• Differentiation strategy:The relaxing times hotel uses this strategy to differentiate the prices of the rooms from the competitors in the international market.
• Focus strategy:This strategy is also used by such hotel to beat the competitors and to maximize the profit within the organization.

Marketing objectives 

The marketing objective of Relaxing times hotel is to attract more tourists and clients as well by providing attractive and effective services. Further, the company wants to increase and maximize the revenue and profit in near future with maintaining sustainability within the organization (Brotherton, 2012).  Further, the organization evaluates and identifies the strategies, policies, and plans of the competitors in order to beat the rivalry in the market (Enz, 2009).

Now it is recommended that relaxing times hotel must focus on the growth strategies to accomplish the marketing objectives in the competitive environment (Reid and Bojanic, 2009). In addition, the hotel should also monitor the promotional and advertisement strategies in order to attain long-term mission and vision within the organization. Further, the firm must focus on the intensive growth strategies to reduce the cost of services. Apart from this, the organization should monitor the pricing strategy in order to differentiate the prices of such hotel from the competitors (Hoque, 2013).

Marketing strategies/approaches 

The relaxing times hotel uses various marketing strategies to reach its target market and to attain the marketing objectives (West, Ford and Ibrahim, 2015). The marketing mix strategies are effective and unique strategies in order to overcome the competitors. The strategies have been discussed below.

Segmentation: By using this strategy, relaxing times hotel divides the market into different segments in order to measure and identify the needs, requirements, and desires of the customers and clients as well. The hotel divides the marketing on the basis of demographic, geographic, and psychographic and behavior of the people (Aaker and McLoughlin, 2009). The organization focuses on the gender, lifestyle, social class, age, and lifestyle of the people in order to segment the group of people. The segmentation strategy provides wider opportunities to relaxing times hotel. It provides better growth opportunities to the people. It also helps to maintain an effective and dynamic communication with tourists in the international market. Through market segment, the organization is able to increase and maximize the market share within the organization (Wedel and Kamakura, 2012).

Targeting:  It is an effective and dynamic strategy of relaxing times hotel which focuses on the target market. The targeting is the subset of segmentation and it helps to attain the objectives and goals of such industry (Lockyer, 2013). This strategy focuses on the income level of the target group. The organization gives preferences to the customers in order to reach the target audience in the world. Targeting strategy is also used by the most B2C companies. Under this strategy, the firm focuses on the target customers in order to increase the number of customers in the international market. The target group includes younger people, businessmen, higher class people, and tourists. Further, the company sets the prices to attract middle-class people in the global world. Targeting is the most significant strategy for the hotel industry to increase and enhance the number of guests and tourists in the competitive environment.

Positioning: This approach ensures that whether relaxing times hotel is the best possible market for the people or not. Positioning strategy is implemented by such hotel to attract the more tourists in the international market. It is the excellent strategy to make a good image in the competitive world. The marketing mix is used by the hotel industry in order to provide best services to the customers in the organization (Gregor and Hevner, 2013). Further, positioning refers to a place that a brand occupies in the mind of the customers in the competitive market.  It is the important element of the marketing plan. Further, this strategy helps to make an effective and dynamic position in the global world. This approach makes attractive to the promotional strategy and it also attracts different types of customers in the world. Relaxing times hotel introduce new services by using positioning strategy within the organization. Further, it also improves and enhances the competitive strength in the world. In addition, this strategy also helps to win the customer's loyalty and it also creates a strong goodwill in the market (Grant, 2016).

Now it is recommended that relaxing times hotel should investigate and evaluate the competitor’s target market as well as clients. It should focus on the segmentation and targeting strategies to increase the number of clients in the global world. The firm should collect the list of target customers in order to encourage and promote services of the hotel industry. Apart from this, the firm must evaluate and identify the hobbies, desires, and interests of the customers to improve the segmentation, targeting and positioning strategies. None of the company can attain the goals and objectives without effective and unique segmentation, targeting and positioning strategies. In addition, the firm must focus on the pestle analysis, SWOT analysis, and porter five forces model to enhance and increase the success and growth of the firm. Along with this, relaxing times hotel must focus on the global marketing plan to improve the positioning and targeting approaches. In addition, the organization should conduct marketing campaigns and programs to encourage and develop the STP strategies within the organization. If the company improves and enhances these strategies then the hotel industry can achieve and attain the goals and objectives of the organization.

Conclusion 

On the above aforesaid information, it has been concluded that internal and external analysis plays an integral role in order to reduce and eliminate the key challenges and risks of the market. It also helps to make an effective and unique marketing plan in near future. Further, pestle analysis and SWOT analysis is done by the hotel industry to overcome the competitors in the international market. Apart from this, the report explains the growth strategies to attain the goals and objectives of relaxing times hotel. These strategies also help to attract more tourists in the world. Along with this, segmentation strategies play a crucial role in order to divide the market into the different target groups in the global market. In addition, targeting and positioning strategies help to measure and identify the needs, preferences, and desires of the tourists in the competitive market. Further, it will also help to stand out against the competitors in the world. Relaxing times hotel uses marketing growth strategies in order to accomplish the mission and vision of the firm. Apart from this, some suggestions have been given to improve the segmentation, targeting and positioning strategies in the organization.

References 

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