- Executive Summary
- Task 1 Environmental Appraisal Analysis for the company in the UK market
- External Environment
- Internal Environment
- SWOT Analysis
- PESTEL Analysis
- Task 2 Two New Target Markets for the firm
- Target Market 1: Business Customers
- a.) Target Markets
- b.) Consumer Profiling
- c.) Positioning
- Target Market 2: Government Bodies
- a.) Target Markets
- b.) Consumer Profile
- c.) Positioning
Every company faces the influences of the environmental factors at one or the other stages of its development and this environment generally have both a positive as well as a negative impact on the operations of a company.
The external environment often includes those factors which are present outside the organization and have a tendency to influence the internal operations of a firm. The external factors could prove to be a boon as well as a bane for a firm. The opportunities for a company could be a great economic turnover or boom in the market or the introduction of an innovative technological revolution. The internal environment often includes factors that are already present within the company and are entirely inevitable. The company could avoid or even change its external environment, but the factors that are present in the company has a greater influence on the decision-making process as well as the working strategies of a company.
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If a company succeeds in developing an efficient marketing plan, then there are possibilities that it may create an enhanced roadmap that could be followed to get unlimited customers and dramatically improve the brand identity of the firm in front of the current and potential customers (O'Ceallaigh, 2016).
In the following report, great efforts have been put together to develop a three-year marketing plan for One Fine Stay, a London- based Hospitality company. The firm was founded in the year 2009 with an idea of providing service to the owners of distinctive and up-market homeowners to let out their homes for the guests while they are unoccupied. The recent researches unveil that the company owns more than 2,500 private homes in its collection and has also become an active member of the British Hospitality Association. Apart from its homeland, the firm also operates in Los Angeles, New York, Paris, and Rome. This innovative idea has allowed the company to utilize the empty yet beautiful, well-appointed and truly inviting homes, to provide an entirely new experience to the tourist and visitors in such foreign lands. The report has been precisely divided into three segments, each dealing with three independent tasks. The first task analyzes the Environmental Appraisal factors and methodologies for the considered company (Barrie, 2015). In the second task, there has been a suggestion of the two potential target markets for the company and in the last task the Marketing Mix for each of the market is suggested.
Task 1 Environmental Appraisal Analysis for the company in the UK market
Every company faces the influences of the environmental factors at one or the other stages of its development and this environment generally has both a positive as well as a negative impact on the operations of a company. There is a general list of the characteristics of the environment that has an effect on the way companies interact with their consumers (May, 2010). An Environment possesses the following traits:
• It is complex and requires tedious efforts and great understanding.
• The environment is dynamic and due to this, the internal operations must be aligned to yield proper and lucrative results.
• The surroundings are multi-faceted and it becomes the ultimate responsibility of the marketers to understand the market trends from all the directions and perceptions.
• The environment has a far-reaching impact on the ways a company performs and delivers services in the markets. These impacts could not be ignored by the executives and it becomes crucial for them to implement strategies that could tackle these environmental impacts on the internal environment of the companies.
The opportunities for a company could be a great economic turnover or boom in the market or the introduction of an innovative technological revolution. A new market with a demographic shift could also be considered as an opportunity for a company. The opportunities when turn sour could also pose a great threat to the company.
The strengths of a company are the inherent capacity, which an organization can use to have an edge over the other competitors of the same genre in the market. These strengths may include an outstanding reputation and Brand Identity in front of the customers and shareholders in the market. The experienced and skilled employees of a company could also act as a major asset for the firm that could be used to attract a huge customer base in the market. Another strength of a company could be its relations and the level of communication with the customers, suppliers and other shareholders (CIMA Team, 2013). These factors also determine how strong relations could be developed and maintained. The weaknesses of a company could be its inherent limitations or constraints that have a tendency to develop strategic disadvantages for the firm. The weaknesses could include the demotivated staff with low level of morale. The due projects and lack of resources could also be regarded as one of the weak points for a firm (Aspan, 2016).
• The idea of providing lavishing homes to tourists gives them the experience to live like a local in the comfort of a home.
• The new concept is appealing to a huge customer base even more than the normal hospitality and tourism industry.
• The startup is with limited resources and once the resources exhaust the company will face great economic turmoil.
• Hiring employees for this new concept is a tedious task as the new personnel need to be dynamic and quite young.
• The concept’s success heavily relies on the availability of beautiful and comfortable homes and this is not an easy task.
• This whole new category of accommodation could attract new investors in the markets (Myers, 2012).
• The owners of the homes could change their perceptions with time.
• The investors may change their minds due to the entry of new concepts in the market and then the company might face an economic downturn as the resources need to be entirely established again.
The PESTEL analysis of One Fine Stay is:
Political Factors • The increasing international trade agreements will allow the firm to expand its business rapidly in other foreign lands.
• The evolving Public Health facilities could pose a threat and even create new opportunities.
• Trade and Safety regulations.
• New employment laws promote rapid expansion of the company.
Economic Factors • Slow but stable growth rates of the country’s economy.
• Inflation rates impact a company’s sales and profits.
• The unemployment rates of a country.
• The business trends and cycles of a country.
Social Factors • The customer demographics including age, sex, income level, perceptions, etc.
• The widening wealth gap between the social classes.
• Increasing cultural diversity at the workplace gives numerous opportunities of growth.
Technological Factors • Increasing Business automation.
• Increasing usage of internet and social media platform accessibility.
• Increasing sales through mobile devices.
Environmental Factors • The increasing trend of corporate environmental programs.
• The Climate change impact.
• Increasing emphasis on sustainable business strategies.
Legal Factors • Fluctuations in legal minimum wage levels.
• Legal complications and rules and regulations of a country.
• Current and future legislation.
• Tax systems and regulations.
Task 2 Two New Target Markets for the firm
The company considered here demands unique houses with beautiful locations for expanding its business. In order to fulfill this demand, it may require customers other than from leisure customers. At present, the concept being new is able to target only the high-class people of the society who are ready to spend a good amount of money to have an entirely new experience of spending holidays in homes with beautiful interiors.
Target Market 1: Business Customers
Business customers are quite specific in their choices of stay and they even require their stay to be a perfect one in order to make their business trip successful. The specific choices of this target market make them the most desirable choice for the company as the new concept is going to use a product with an exotic ambiance and a peaceful environment. The business customers also have a tendency to choose the staying place as the ones that have a good maintenance level over the others and the customers do not have to worry about the cleanliness issues and room service facilities (Team, 2016).
As the location is selected for this new concept includes the apartments and abandoned homes as its prime product and service, hence such homes have an ample amount of areas that could be used by the business professionals to conduct business meetings at the national and international level(Thomsen, 2016).
a.) Target Markets
b.) Consumer Profiling
Age: Maximum visitors are falling under the age group of 25- 50 years while some are falling under the age group of 50- 65 years.
Average Visitors Stay: The business travelers generally stay for 4-5 days or maximum up to a week.
Ethnicity: The UK cities are mostly visited by Europeans, Asians, Africans, Australians and Americans in the decreasing order.
Annual Income per year: To have a good business trip in the UK, a person should have an annual income of around $40,000- $50,000.
Sexual category: Most of the travelers at the global level include 60% of males and 40% of females. The difference between the two genders is due to more men business travelers as compared to its counterparts.
Participation: As UK cities are beautiful, hence most of the tourists dine for lunch and dinner in exotic restaurants, visit markets for shopping, indulge in water sports, enjoy the nightlife of the cities in nightclubs and the business people particularly visit various corporate offices for opportunities
In order to have a strong market position, one fine stay could select areas and apartments which are situated in the areas that are entirely surrounded by corporate offices of the company. Such areas should also have reachable restaurants where people could easily enjoy their meals.
Target Market 2: Government Bodies
This target market is chosen because already the company is providing services to its leisure customers and the same services without a much change could be given to government delegates as they require the similar premium set of services.
a.) Target Markets
One Fine Stay could choose any city to start its work as almost all the prime cities of the UK have one or the other Government Body who deliberately needs such concept for their meetings and other government proceedings (Luk, 2012).
b.) Consumer Profile
Average Visitor Days: The average visiting days for Government executives are generally of short span mainly for 2-3 days.
Sexual Category: The visit of tourists depending upon the gender nearly remains the same in all the countries across the world. The domestic and international government executives both comprise around 60-65% of males and the rest females.
Lifestyle: This innovative idea is able to capture the minds of such people for whom the quality of accommodation services is of great significance. Hence, the target customers should have a great affinity for quality rather than the price of the services.
Income: In order to avail such services, one needs to earn well because as these concepts need a lot of resources so ultimately they seem to be a bit overpriced. In order to experience such an innovative idea of meetings and conferences, a government executive must earn a handsome salary (Team, 2012).
Ethnicity: The ethnicity in government works does not matter a lot. The UK has a good term with almost all the countries across the globe and almost all types of delegates visit the country at some point of the year