Strategic Marketing Plan for Marina Bay Sands Hotel

Strategic Marketing Plan for Marina Bay Sands Hotel Advertising We will write a custom report sample on Strategic Marketing Plan for Marina Bay Sands Hotel specifically for you for only $16.05 $11/page Learn More Executive Summary This report analyses and presents the â€Å"Strategic Marketing Plan† for â€Å"Marina Bay Sands† Hotel. This is a five-star inn located in Singapore, which has excellent leisure facilities, fashionable architecture, and offers first-rate MICE services to clients. The report highlights the overall company history in terms of hotel description, its location, services offered, its clients, owners, and basic formation. The company’s market share and revenue is analyzed, with the significant effect of global economic crunch noted. This has affected the market capitalization over time from 2007 value of $49 billion; $140.00 per share to nearly $3 billion in 2008. There is a brief description of organizational structure and working systems within Marina, this include s the statement of the mission of the organization. Concurrently, PESTLE analysis describes the exterior influences on the industry. An analysis of each factor is evident thus demonstrating the current position of the organization. Market analysis shows that Marina enjoys a strategic location in Singapore, South East Asia with a large customer base. Competition is not as stiff as only one rival, GMB exist in the region. There is an analysis of the four P’s in relation to the business. Noticeably, a SWOT analysis indicates that the organization has more potency and opportunities than the limitations and threats. An outline of recommendations for future methodologies and approaches to marketing is evident in the final part of the report on the firm. Introduction Strategic Marketing Plan This is a vital concept in all business organizations as it forms the root for successful service launch and market performance. Macdonald (2008, p 25) argues that marketing planning helps busin esses to scrutinize and direct the range of interior and peripheral influences on its competency to accomplish lucrative sales, and goals.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More According to him, planning of the marketing undertakings with inclusion of all the business activities is necessary for potential growth and service to customers. This novel approach enables corporate to gain profit, which is the universal yardstick for gauging efficiency while also satisfying customer desires. Marketing strategies in any business outline become the working targets in the marketing unit (Macdonald 2008, p 26). Williams Leech (2004, P 64) indicates that marketing plan is a representation of outcome of strategy development, setting objectives, and shaping the P’s. That though there may be variances in the structure, the plan mostly consists of the management summary, market situation, â€Å"SWOT and PESTLE† analysis, and marketing objectives. With globalization, the increased interests in hospitality sector require organizations that have sound marketing plans if they are to realize profitability and provide adequate services to the beneficiaries. General Company Background Hotel Description This is Asias fabulous trade and holiday destination, has about 2,500 accommodation and suites, â€Å"state-of-the-art† caucus and exposition amenities, theaters, first-rate casino, leisure and top shopping or dining within Singapore. It is a unification of three deluxe hotels coupled by gorgeous sky patio and Sands SkyPark. Established by the famous gaming corporation, â€Å"Las Vegas Sands,† Marina provides console and bliss for all clients. It offers excellent gaming, noble-concept bars; trendy clubs and delicious meals. In a featured article, Ballinger (2010) observes that it also embodies of three high rise storey commissioned in 2010, wi th 1-hectare crown Sky Park eliciting 360-degree appearance to Nation’s skyline and showing marvelously sculptured precincts, cafeterias and a swimming puddle. The Market Share and Revenue There are estimations that over 90% of the greater â€Å"Las Vegas Sands† is under the ownership of inside members, the current CEO with an approximate of 65%. According to Cohen (2010), MBS has recorded over double in net revenue, say US$485.9 M up from US$216.4 M in subsequent quarter with only 65 days functionality upon its April pliable commissioning.Advertising We will write a custom report sample on Strategic Marketing Plan for Marina Bay Sands Hotel specifically for you for only $16.05 $11/page Learn More Income prior to interest, levy, depreciation, and paying off rose up to US$241.6M whereas EBITDA margin escalating to 49.7% from 43.7%. Global fiscal slump has currently affected the marketplace capitalization over time from 2007 value of $49 billion ; $140.00 per share to nearly $3 billion in 2008. It has over time experienced financial crunches, with Sheldon persistently intervening to correct the anomalies. There has however never been a presentable long-term fiscal performance analysis since the hotel came into full fledge operation just i8n recent times. As indicated by Cohen (2010), the hotel performance over short period of operation, is progressive and has added additional upscale value to the Singapore’s hospitality market index and rating. Sheldon Adelson indicates in the â€Å"LVS annual report† (2010) that MBS hotel increases trade and leisure in Singapore and the greater South Asia. He further indicates that the hotel has realized approximately $1 billion attuned property EBITDA in the initial one year of business, which is a tremendous and historical record. Employees and Business Structure The â€Å"Las Vegas Sands Corp.† is involved in the tenure and supervision of this hotel. It has other in tegrated vacation conveniences spread worldwide. As indicated in the â€Å"LVS annual report† (2010, p 21) the company directly employs about 34,000 workers apart from temporarily hired ones on need-based concept. Mutual bargaining treaties do not exist for the Marina hotel employees. In this report, the corporation again indicates that the employees are gratis to engage in labor unions and this shall not affect its fiscal outputs. The business is under ownership of many, with Adelson Sheldon having almost the largest allocate in capital. Several workers help in running business. The hotel is a constituent of the larger â€Å"Las Vegas Corp† and is managed at peak by a sitting executive committee chairing all the LVS initiatives. Regional management in Singapore is responsible for routing the company’s mission and policies in the hotel.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Apart from rest of implementing employees like culinary staff, there exist peak, central level, and line managers with a variety of departments coordinated by the overall manager for hotel’s efficiency. The HR indicates in an interview featured in â€Å"The Pulse, Issue7† (2009, p 3) that MBS hotel has dedication to mentoring and training its employees. That there is broad leadership and unit definite training and instruction in existing organization levels. There is again commitment to edifying a culture of general reverence and support to enhance teamwork. Mission and Vision Statement and/or corporate values In the pulse (2009, p 2), president of MBS redefines the companies mission and vision. The vision is â€Å"We create once- in- a- lifetime encounters every day.† The mission â€Å"We are devoted to turning MBS the globe’s most outstanding destination for leisure, shopping, and business.† From these, we see a resolute hospitality empire with g reat dedication to service delivery and satisfaction. The above values symbolize the hotel’s culture and core fundamental principles that guide service provision to all clients. Olsen Zhao (p 4) in reporting â€Å"Travel and Tourism Intelligence’s† 2001 study states that corporate values are the founding stones for branding; an aspect becoming increasingly vital by generating higher market share. This permits hotels to indict premium rates, issue superior investor proceeds, and launch customer loyalty. Kumar (2010) also recognize that without sound corporate values, businesses in the hospitality industry are unable to set magnetic product or service brands thus cause failure in efficiency and profitability. The PESTLE analysis This refers to a methodology given application by organizations in the study of their exterior macro environment. This acronym stands for â€Å"Political, Economic, Social, Technological, Legal, and Environmental† (Doyle 2008). The re is scanning and identification of risks or environmental changes, monitoring for recognition of trends, and preparation for mitigation. As indicated in â€Å"The Pulse, Issue7† (2009) the hotel is set in a magnificent outlook, providing a dream hospitality destination for the great South Asia. As indicated in â€Å"LVS annual report† (2010), Adelson views Singapore’s exceptional transport system and immediacy to South Asian population as a business advantage. This couples with the hotel’s iconic architecture, supreme entertainment amenities, and strategic setting next to Singapore’s CBD. These factors will in future help in establishment of sustainable client base. The high rate of globalization increases demand for vacation services. As Cohen (2010) indicates, MBS has recorded over double in net returns since its April commissioning. Increasing technological advancements has enhanced online reservations, client communication, and e-finance serv ices thus uplifting hotel trade. It is evident that technology will increase the company’s performances even in the future, given daily advancements and employment of qualified technical staff. The worldwide recession grossly affected the company, lowering its marketplace share and revenue with a higher percentage. Sheldon Adelson however intervened through increasing his shares and loaning the hotel. The annual report (2010, p 9) indicates that Singapore unlike many Asian hospitality and casino markets is not dominated by junket activity. The regulations here require prospecting junket operators to pass a background audit and have license. There are comprehensive licensing necessities and frameworks, which cushion hotel operations and favor their profitability. The legitimate organism thus favors the company. Current Competitor Analysis Competition amongst resorts in the South Asia is high, especially in Singapore where other hotels apart from MBS include RWS, and Macau. RWS is 100% property of the Genting Singapore, located in Sentosa Island, and is a prime family tourist destination connected to Singapore via vehicle and pedestrian bridge. Both companies provide similar services, with RWS having the advantage of an Island location in the Sentosa. Most importantly, MBS hotel has only one competitor in Singapore. As cited in the LVS annual report (2010, p 10) hospitality activities like betting is observed through state-sanctioned licenses awarded to only two operators, of which MBS is one. There is thus restricted competition in betting. Sentosa as a major competitor in the area only began its functioning in January 2010 with six hotels, about 1800 rooms, â€Å"Universal Studios theme park,† Marine Park, and few others. MBS being one of the LVS hospitality enjoys extensive market exposure than its competitors. Genting chairperson, Lim Kok expected an annual turnout of 13 million clients in the first period of work. Other facilities in Sentosa i nclude Maritime Experiential Museum, conventions or exhibitions conveniences, restaurants, and trade shop. It contains approximately 470 betting tables, 500 electronic gaming tables, and 1200 slots. These are far less considering the diverse services existing at the MBS hotel. Their capital base is also limited unlike MBS, which is not purely under singular ownership thus draws large capital from varied sources. The leading shareholder here is the Adelson, who happens to be the Chair and treasurer of MBS. The competitor has recently not introduced any new services. The plush facilities including swimming pool and first-rate services offered under the three-storey roof empire places MBS hotel far ahead of its rival. Current Market Analysis The hotel faces only one competitor RWS in Singapore. Early this year, the â€Å"Chief Operating Officer† Mike Leven indicates that there is growing demand in the hotel facilities, with 80% occupancy. Entry of the MBS into the nation’ s betting sector doubled at about US$6B during 2010. The US$5.5 billion MBS received 11 million clients, having been operational for about one year. Other cited future markets as stated by chairperson Adelson include Spain and India. As stated in the 2010 annual report, advertisement is through both mass and print media, and internet. The hotel marketing department participates in unswerving marketing as permitted in diverse geographic locations; these may be through top slot and chart games markets. According to this report, the hotel enjoys the Singapore market, which has advanced fiscal and transportation network in the S. E Asia locality. This is a place for both trade and vacation. There are further indications that the STB had 11.6 million international guests in 2010, an elevation of 20% unlike 2009 (LVS annual report 2010, p 9). The total mean duration of visit by tourists in Singapore as estimated by STB was 3.9 in 2010. This obvious market enables the hotel to benefit as p resently, the entire betting market has equal contributions from VIP and crowd gaming portions. Additionally, inputs from slot equipment and mass betting segment enhance early escalation of market. Major gaming patrons are from Singapore, Indonesia, and Malaysia. There is nonetheless, expectations of further market extensions into novel feeder markets considering the geographic placement. Cohen (2010) reports that most customers approve the first-rate services offered in this hotel. Current Marketing Mix Marketing involves the matching of an enterprise’s roles and competencies with the client’s desires to attain satisfaction on the two sides (Bowie Buttle 2004). Marketing mix embodies an array of manageable, strategic marketing concepts that a company may blend to realize the response it longs for in the targeted market. It comprises of an entirety of what an organization can do to manipulate demand for its services or products (Wood Brotherton 2008). As indicated by Reid Bojanic (2010), the set collate into the four P’s of â€Å"Product, Place, Price, and Promotion.† They further indicate that organizations are keen to manipulate these variables to develop a strategy for service or product used to found a marketing program. The hotel presents a range of services to visitors on site; the conspicuous ones include meetings and conferencing conveniences, incentives, and exhibitions (MICE). Within it, one may enjoy first-rate casino, leisure, theatre sessions, and shopping expeditions. There are fantastic views from the SkyPark space; this is home to globe’s longest swimming pool, restaurants, and twilight clubs. It offers flexible and exclusive conventions in the area. Several corporate, international, theatrics events, and state functions occur in Marina. Concierge desks services include some of the currently operational services at the expo and convention hub. This enables delegates to buy parking tickets at cheaper amounts unlike other MICE facilities. Promotion as indicated in the LVS annual report (2010, p 10) is through lots of media channels. TV, radio broadcasting, internet, newsprint, magazines, and billboards include some of the commonly used advertisement channels. There is use of direct marketing in various geographic locations, aimed at definite market segments, embodying the â€Å"premium slot and table games markets.† The hotel’s sales unit frequently organizes cocktail events as part client campaign (The pulse 2009, p 4). Targets include voyage agents, corporate regulars, and forum exhibition organizers. The location of Marina is strategic within the great South Asia. Singapore’s good transport network and financial stability is a business merit (Pulse 2009). There are transport systems from the airport designated for visitors destined to Marina. The hotel’s marvelous structural design, excellent leisure facilities, and tactical location help to attract client s. Marina has nightly charges from $237.22 to $1,166.10. There are however, varied charges depending on the type of services offered, rates try to align with those set by STB and fluctuate variably between tourist low and high peaks. The seasons affect demand for these services and gaming charges are set for dissimilar segments but not for junkets. SWOT analysis SWOTs refer to the inferences for establishing strategic marketing schemes. Organizations maximize on strong points and available opportunities within their reach and minimize their weaknesses and outdoor threats (Reid Bojanic 2010). Major strengths of Marina are its capital base so that it minimally relies on external funding, and its iconic architecture that attracts large pool of customers. It has strategic setting in Singapore, which is a vastly industrial state with great tourist attraction capacity. From the pulse (2009), it is evident that Marina hires services of qualified professionals and human resources capable o f driving its objectives to success. The Skypark provides great view of the Singapore from top. This provides an inimitable tourist attraction, which is only in Marina. The restriction of junket gaming by Singapore government makes Marina casinos to be the only outstanding betting destination apart from GMB in the SE Asia. Marina enjoys an established brand and image emerging from the mother company, â€Å"Las Vegas Corp.,† which has long developed many hospitality centers globally. Weaknesses may include constant fluctuations in trade due to varying tourism seasons. The MICE services help in reducing losses as corporate hold functions regularly throughout the year. The MICE and casino services significantly reduce overreliance on a single target group. Marina casino enjoys market opportunities due to litigation of betting by Singapore. The huge annual tourist turnout in the country and its strategic location in the South East Asia provides adequate customer base for the hote l. Threats include competition from GMB, which is also a plush hospitality center located in Sentosa Island. The casino faces competition from the backdoor betting junkets that operate illegally despite government’s stringent regulations on gaming. The current global economic slump is a major threat to the company. This may not favor quality services and expansion into novel markets. Future Marketing Strategy (Objectives/ Activities) The hotel should concentrate on varied segments in the population. There can be an espousal of different service rating mechanism for home and foreign visitors to encourage both. Thi9s will ensure service utilization by almost all segments of population, thus increasing client base and returns. Maximization of cash flow from operating assets can result through organic returns upscale and working effectiveness. Collaboration with organizations, especially tour travel bodies will help in future to attract more customers and satisfy their needs. Thi s will again expand capacity and increase competitive strength. Careful rate fixing will help the hotel to reduce loss of its customers to the competitors like GMB in the future. The company should strive to extend to new feeder markets all over the continent and establish itself as a world’s foremost hospitality service provider in five years time. This is achievable through active and noble means of capital outsourcing from IPO’s, bonds, and engaging in sustainable loaning systems. List of References Ballinger, L. (2010), Dont go off the VERY deep end Infinity pool 55 STOREYS above ground opens in Singapore in dazzling new  £4bn resort. Web. Bowie, D. Buttle, F. (2004), Hospitality Marketing: An introduction, Oxford, Elsevier Butterworth-Heinemann. Cohen, M. (2010), Singapore Casinos an Uncertain Bet. Web. Doyle, P. (2008), Value-Based Marketing: Marketing Strategies for Corporate Growth and Shareholder Value, Chichester, West Sussex, John Wiley and Sons. Kumar. ( 2010), Mktg of Hospitality Tourism Serv. New Delhi, Tata McGraw-Hill Education. Las Vegas Sands Corp. (2010). Annual Report; Marina Bay Sands Singapore April 2010. Web. Macdonald, M. (2008), Malcolm McDonald on Marketing Planning: UnderstandingMarketing Plans and Strategy, Philadelphia, PA, Kogan Page Publishers. Olsen, M. Zhao, J. (2008), Handbook of Hospitality Strategic Management, Massachusetts, MA, Butterworth-Heinemann. Reid, R Bojanic, D (2010), Hospitality marketing management, 5th edition, Hoboken NJ, USA Wiley Sons. The Pulse, (2009), Bigger and Bolder. Issue N. 7. Web. Williams, KS Leech, C. (2004). Creating a Customer Focus CMIOLP, Massachusetts, MA, Butterworth-Heinemann. Wood, R. Brotherton, B. (2008). The Sage handbook of hospitality management, California, CA, SAGE Publications Ltd.