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Question: STRATEGIC MARKETING PLAN
Abu Dhabi National Hotels is a large tourism, hotel, and transport and catering group, part of which is owned by the Abu Dhabi government. The majority of the Abu Dhabi National Hotel's properties are located in Abu Dhabi; the organization is working hard for expanding their business aggressively across the UAE. In this report, we will study the strategic plan of the Abu Dhabi National Hotels. ADNH was found almost four decades ago as a hotel owner and asset manager and has evolved into a hospitality group that encompasses hotels, destination management services, restaurants and catering and transportation. Strategic marketing is considered as a way through which an organization effectively differentiates itself from its existing competitors by utilizing its strength in a right direction. Adoption of strategic marketing requires high creativity with the marketing mix. The main motive of the organization behind conducting strategic marketing is to maximize its positive differentiation over its competitors in the eyes of its target market. A strategic marketing plan is the combination of geographical and demographic target markets as well as market segmentation also. The strategic plan of the ABNH helps its management in formulating various strategy for the growth of its business in the whole UAE.
Through the use of strategic marketing ADNH develops an effective strategy for expansion of its business all around the UAE. This can be done by the organization by successfully implementing the strategic marketing plan which helps in avoiding all the impulsive business strategy of the organization (Wilson, 2012). Through strategic marketing, Abu Dhabi-based hospitality group is moving ahead with its aggressive expansion strategy while planning ten new hotels and adding more than 800 rooms to its portfolio by the end of 2009. Strategic marketing helps the organization in the effective implementation of its expansion strategy which helps the organization in growing further.
Abu Dhabi National Hotels utilize both the online and offline advertisement methods for fulfilling their goals. The company focuses more on the internationalization method for promoting their brand. The main aim is to propose strategies of marketing that promote the internationalization of the organization in UAE. Internationalization marketing method helps the organization in sustaining and enhancing the amount of exterior market, improving the external and internal competitive level. Marketing process of ADNH can be studied in good manner by studying its 4 Ps of Marketing Mix. Marketing mix components are following:
1. Product Element of ADNH:
Abu Dhabi National Hotels can be classified as a full service hotel. It provide extensive range of services which includes meeting, banquet and wedding facilities, restaurants and lounges, tourism services, food and beverage services, retail facilities, special event services and various other services. ADNH divided its products in three categories which are facilitating, core, and supporting products. Core products include hotel rooms that customers utilize for a fixed period of time. Facilitating products contain services like bars and restaurants, customer services, and online reservation facilities. Supporting products contain additional products and services which are offered to customers for attaining competitive advantage in market. It includes products like free newspapers and magazines, room service, and concierge services etc.
2. Place Element of ADNH
ADNH serves guests operating more than 700,000 rooms in more than 150 territories and countries. Distribution strategy of ADNH is mainly based on internet and information technology in various formats. Firstly, the official website of ADNH serves as an efficient platform for distribution of service as it is supplied with a broad range of capabilities and features providing practical assistance to customers. In addition to it, the distribution strategy of ADNH is also facilitated through convenient mobile applications made available for Android platforms.
3. Price Element of ADNH
ADNH utilize the skimming and premium pricing strategy for their products. In skimming strategy the products offered by the organization at higher price level in comparison to its competitors. The main motive behind choosing the price skimming strategy is to include the desire to associate products or services with high quality and exclusiveness. Premium pricing strategy contains charging high prices for products and services that are perceived to have high quality and high features. ADNH offers five star and four star rooms which helps it to charge its customers at premium levels.
4. Promotion Element of ADNH
ADNH uses more attractive promotion strategies to introduce itself in the market. It advertises itself through sponsorship programs. These programs help the organization to enhance their Goodwill.
The Vision and mission of the ADNH are to be a leading Hotel Apartment Group in the Gulf Region and to deliver the best hotel apartment services to their guests. The vision and mission of the organization are interrelated with each other. In the same manner, strategic marketing and corporate strategy of the organization is related to each other. Strategic marketing supports the organization in the effective implementation of the corporate strategy which further helps the organization in achieving its ultimate goal (West, 2015). Corporate strategy is like any other strategy- it is a plan or series of plans which are formulated to obtain some predetermined objectives. Both marketing and corporate strategy are important to the success of ADNH. They often related with each other as major focus of marketing involves the strategic planning aspects of pricing, developing and distribution of product. Corporate strategy of ADNH focused more on profitability. It involves developing structure for the organization, improving the balance sheet of the organization. Reducing the gearing and debt ratio. However, marketing strategies of the organization involves making plans of promoting and selling services to their customers. Marketing strategies of the organization revolves around the marketing mix which contain Four Ps. Different channels are used by the organization to promote their services among the targeted customers. the management of the organization should properly monitoring the marketing strategy of the organization and should measure whether these are moving along with the corporate strategy of the organization or not. Corporate strategy of the organization guides the marketing activity.