-2286039497000 Marketing Plan for EcoKit
2286000-36576000
-2286039497000 Marketing Plan for EcoKit
Stamford Plaza
017145000
51308002286002023
002023
Executive SummaryThis proposed marketing plan aims to introduce a sustainable room amenity kit EcoKit for Stamford Plaza. The plan outlines the key elements necessary to successfully market the product, including target audience, competitive analysis, product positioning, pricing strategy, promotional activities, and projected profit.
Mission Statement:
Our mission is to provide a sustainable amenity kit that meets the needs of our customers while minimizing our environmental impact. We believe that sustainability is essential to the long-term success of our business and to the health of the planet. By using eco-friendly materials and reducing waste, we are committed to creating a product that is both functional and responsible. Our goal is to lead the way in sustainable amenities and inspire others to join us in protecting our planet for future generations.
Methodology:
To develop this marketing plan, market research was conducted to determine the demand for sustainable hotel amenities, the preferences of target customers, and the competitive landscape. The research involved analysing industry reports, conducting surveys, and reviewing competitor products. There were several Key Performance Indicators (KPIs) used to measure the success of the plan including Customer Engagement, Energy and Resource, Revenue, Brand Reputation, Community impact.
Results:
According to a study by IBM Institute for Business Value (2019), 70% of Gen Z respondents are willing to pay extra for sustainable products, which suggests a growing demand for eco-friendly products among this demographic. This reveals that there is a growing demand for eco-friendly products among hotel guests, particularly millennials and Gen Z. The research also showed that the key features that guests value in a sustainable amenity kit include biodegradability, recyclability, and cruelty-free ingredients.
Based on these findings, the proposed sustainable room amenity kit will be positioned as an eco-friendly and socially responsible product, priced competitively with similar non-sustainable products. The product will be promoted through digital channels, including social media, email marketing, and online advertising.
Projected Profit:
The product will be sold to the guests for $25 on top of the room rate. Based on the pricing strategy and market demand, it is estimated that the sustainable room amenity kit will generate a profit of $874,500 in its first year.
Conclusion:
The proposed marketing plan provides a clear roadmap for successfully introducing a sustainable room amenity kit to the market. By positioning the product as an eco-friendly and socially responsible option, targeting the right audience, and promoting it through effective channels, the product is likely to achieve success in the market.
Recommendations:
To ensure the ongoing success of the product, it is recommended that the hotel regularly evaluate customer feedback and preferences and adjust the product and marketing strategy accordingly. It is also recommended that the hotel explore opportunities to expand the product line with additional sustainable amenities.
Contents
TOC o "1-3" h z u Executive Summary PAGEREF _Toc132396947 h 2Situation Analysis PAGEREF _Toc132396948 h 5Background to the hotel PAGEREF _Toc132396949 h 5Environmental Analysis PAGEREF _Toc132396950 h 5Macro- PESTEL analysis PAGEREF _Toc132396951 h 5Micro SWOT analysis: PAGEREF _Toc132396952 h 5Product Analysis PAGEREF _Toc132396953 h 6Market and customer analysis PAGEREF _Toc132396954 h 6Objectives PAGEREF _Toc132396955 h 6Target Market PAGEREF _Toc132396956 h 6Marketing Strategies PAGEREF _Toc132396957 h 7Product PAGEREF _Toc132396958 h 7People PAGEREF _Toc132396959 h 7Processes PAGEREF _Toc132396960 h 8Physical Evidence PAGEREF _Toc132396961 h 8Price PAGEREF _Toc132396962 h 8Place PAGEREF _Toc132396963 h 8Promotion PAGEREF _Toc132396964 h 8Partnerships PAGEREF _Toc132396965 h 9Marketing Implementation PAGEREF _Toc132396966 h 9Budget PAGEREF _Toc132396967 h 9Control and evaluation PAGEREF _Toc132396968 h 11List of references PAGEREF _Toc132396969 h 12Appendices PAGEREF _Toc132396970 h 13
Situation AnalysisBackground to the hotelStamford Plaza Melbourne is a 5-star luxurious hotel located in the heart of Melbournes central business district. The hotel comprises of 283 elegant rooms and suites, six conference rooms, two restaurants, a bar, a fitness center, and a pool (Stamford Plaza Melbourne, n.d.).
Environmental AnalysisMacro- PESTEL analysisThe growing demand for sustainable and eco-friendly tourism is creating a favourable business environment for hotels that focus on sustainability and environmental protection. The Australian government's focus on sustainability and environmental protection is expected to provide a boost to the development and promotion of sustainable amenity kits. This political initiative is likely to positively impact hotels that offer eco-friendly amenities, creating a competitive advantage for them in the marketplace. Additionally, the increasing demand for eco-friendly products and sustainable tourism is expected to benefit hotels that cater to the needs of eco-conscious guests. This sociocultural trend is driving demand for sustainable amenities, which in turn is creating opportunities for hotels that prioritize sustainability. Technological advancements are also making it easier for hotels to produce and distribute sustainable amenity kits to their guests. Finally, the hotel's sustainable amenities can benefit from opportunities created by the government's legal framework and regulations related to environmental protection. The hotel industry can benefit from legal opportunities that are created by governments' focus on sustainability and environmental protection. In conclusion, the hotel industry is well-positioned to capitalize on the growing trend towards sustainable tourism, which is creating a favourable business environment for hotels that prioritize sustainability and environmental protection (Yang & Lu, 2018).
Micro SWOT analysis:Strengths Weaknesses
Awarded for excellent hotel service
Prime Location in Melbournes CBD
Sustainability facilities in the hotel that could give a competitive edge Potential for higher operational expenses
Some guests may not be willing to pay for eco-friendly features
Opportunities Threats
Growing interest in eco-friendly products and sustainable tourism
Promotion of sustainable amenities as a unique selling point Competitors providing similar sustainable amenities
Adverse publicity related to sustainability practices potentially damaging brand reputation
The SWOT analysis for the incorporation of EcoKit to Stamford Plaza Melbourne highlights several strengths such as excellent service and prime location in Melbourne's central business district. The hotel's sustainable facilities could also give it a competitive edge. However, there are potential weaknesses such as higher operational expenses associated with incorporating sustainable amenities, and some guests may not be willing to pay a premium for such features. The growing interest in eco-friendly products and sustainable tourism presents opportunities for the hotel to attract more environmentally conscious guests by promoting its sustainable amenities as a unique selling point. However, the hotel also faces threats such as competitors providing similar sustainable amenities, and the potential for adverse publicity related to its sustainability practices to damage the brand's reputation (Garca-Muia et al., 2020).
Product AnalysisEcoKit is a new product that includes eco-friendly amenities like Reusable water bottle, Bamboo toothbrush, Biodegradable dental floss, Recyclable soap and Shampoo dispenser, Organic cotton towels and linen. The kit also includes a reusable toiletry bag made of recycled materials. The packaging for the kit can be made from sustainable materials such as biodegradable plastics or recycled paper. The kit can be designed to reflect the hotel's commitment to sustainability and align with its branding. The product aligns with the hotel's commitment to sustainability and provides an opportunity to attract environmentally conscious guests.
The Product can be sold to the guests on top of the room cost for as little as $25 with which the guests can enjoy their sustainable experiences. They can also be bought from front desk, spa, wellness centre, hotel gift shops to promote sustainability across all aspects of the guest experience.
Market and customer analysisThe Sustainable Room Amenity Kit targets environmentally conscious hotel guests who prioritize sustainability in their purchasing decisions. This market segment is anticipated to expand in the future as environmental issues become more prevalent, and sustainable tourism gains importance. Analysis of customer behaviour indicates that guests are willing to pay a premium for sustainable amenities and are more likely to select a hotel that prioritizes sustainability.
ObjectivesThe objectives for the Sustainable Room Amenity Kit can be classified as follows:
Financial Objectives
Increase revenue by 15% using high-end eco-friendly products by 31st December 2023
Decreasing production costs by 10% by 31st June 2023 with eco-friendly and cost-effective suppliers
Improve profit margins by 5% by 31st December 2023 with price strategies and waste reduction.
Marketing Objectives
Increase brand awareness by 30% by 31st June 2023 with influencer partnerships and social media.
Increase customer retention by 20% by 31st December 2023 with personalized packaging and feedback.
Sustainability Objectives
Reduce environmental impact by 25% by 31st December 2023 with sustainable materials and packaging.
Increase recycled content to 50% by 31st June 2023 with recycling partnerships and waste reductions.
Target MarketBased on the analysis of the Sustainable Room Amenity Kit product, the hotel's ideal target market is eco-conscious travellers who prioritize sustainable travel experiences especially Millennials and Gen Zs (Kumar & Saren, 2017).
Demographic
This market would consist of environmentally aware individuals of all ages, but particularly millennials and Gen Z, who are known to be more environmentally conscious than previous generations.
Geographic
The target market would be found in urban areas and eco-tourism destinations where sustainable travel is valued. The hotel can also consider targeting guests from regions where sustainability is a significant cultural value.
Psychographic
The market values sustainability and eco-friendliness and is willing to pay a premium for sustainable amenities.
Behavioural
The market seeks eco-friendly products and amenities. They are likely to conduct research before making purchasing decisions and are interested in the environmental impact of their choices.
Selecting this particular target market is suitable because it aligns with the hotel's sustainability objective and can differentiate it from competitors. The theory of market segmentation supports this approach as it acknowledges the significance of identifying and targeting specific consumer segments with customized marketing strategies. By targeting eco-conscious travellers, the hotel can appeal to a growing market segment and enhance its brand image as a socially responsible and environmentally conscious business.
Marketing StrategiesProductOur sustainable room amenity kit for hotels will comprise a combination of a good, service, and experience. The core product will consist of eco-friendly and sustainable amenities. The actual product will include high-quality, durable items that guests can take home. The augmented product will include the experience of being eco-conscious while staying in a hotel.
Our USP is that our amenity kit is entirely sustainable, which aligns with the growing trend of eco-tourism. To differentiate our product from our competitors, we will focus on using minimal, eco-friendly packaging and labelling to appeal to environmentally conscious travellers. Stamford will emphasize the commitment to sustainability and eco-friendliness.
PeopleWe will carefully select and train our staff to promote our sustainable amenity kit and the eco-friendly ethos of our hotel. Our staff will be trained to manage customer expectations by highlighting the sustainability features of our products and ensuring guests understand the proper disposal methods. We will use training programs and incentives to motivate our staff to provide excellent customer service that emphasizes our commitment to sustainability.
We will also use customer feedback surveys to monitor our staff's performance and identify areas for improvement. By creating a customer-focused culture that emphasizes sustainability, we aim to differentiate ourselves from our competitors and increase customer loyalty.
ProcessesWe will develop clear procedures and systems to support our staff in delivering our sustainable amenity kit to guests. This will include detailed procedures for inventory management, restocking, and disposal of used products. We will also provide clear instructions for staff on how to use and dispose of the products.
We will use technology to support our systems, such as an inventory management system to track stock levels and a messaging platform to communicate with guests. By using clear procedures and systems, we aim to ensure that the guest experience is consistent and that we deliver on our sustainability promise.
Physical EvidenceWe will use a combination of interior and exterior cues to provide evidence of our sustainability commitment. Our packaging will feature eco-friendly materials and labels that highlight the sustainability features of our products. We will use recycled paper and vegetable-based inks in our printed materials.
PriceWe will set an affordable and competitive price for our sustainable amenity kit which will be incorporated in the cost of stay to appeal to environmentally conscious travellers while still generating a profit. Our pricing goals will be sales-oriented, as we aim to increase market share by appealing to a growing segment of eco-conscious travellers.
We will forecast demand, costs, and profits based on market research and competitor analysis (Smith et al., 2018). Our pricing strategy will be penetration, as we aim to capture market share by offering a lower-priced sustainable amenity kit than our competitors. We will also offer special promotions and discounts to encourage guests to choose our sustainable amenity kit over traditional kits.
PlaceThe Sustainable Room Amenity Kit will be available in all rooms at Stamford Plaza Melbourne, and guests can also purchase the product at the hotel gift shop and front desk.
PromotionThe hotel will market the Sustainable Room Amenity Kit through diverse channels, such as social media, email marketing, and in-room signage. Additionally, the hotel will partner with sustainable tourism organizations and influencers to promote awareness of the product.
Action Plan Target Completion Responsibility Expenditure
Brochure production 1st Jan 2023 Marketing team $2000
Printing brochures 1st Feb 2023 Marketing team $1000
Email out to subscribers 1st Jan 2023-1st Mar 2023 Marketing team $100
Media release to relevant outlets 1st Mar 2023 PR team $2000
Radio ad production 1st Jan 2023 Marketing team $8500
Radio advertising 1st May 2023 Marketing team $5000
Social media calendar planning 1st Jan 2023-1st Mar 2023 Marketing team $1000
Social media advertising 1st Mar 2023 Marketing team $5000
PartnershipsTo obtain the best eco-friendly products and advance sustainable tourism, the hotel will collaborate with eco-friendly toiletry providers and sustainable tourism organizations (Kotler et al., 2017).
Marketing ImplementationThe marketing strategy will cover all aspects of the 7Ps of marketing, including product, people, processes, physical evidence, price, place, and promotion. The hotel will make certain that the Sustainable Room Amenity Kit is easily accessible in all rooms and that staff is trained to educate guests about the product and the hotel's sustainability initiatives. Moreover, the hotel will monitor the use of eco-friendly toiletries to minimize waste.
Marketing Strategy Element Action Plan Target Completion Date Responsibility Expenditure
Product Develop sustainable room amenity kits 1st Jan 2023-1st Mar 2023 Product team High
Price Set affordable and competitive prices 1st Jan 2023-1st Mar 2023 Marketing team N/A
Place Distribute kits to hotel rooms 1st Jan 2023-1st Mar 2023 Operations team Low
Process Develop procedures for kit distribution 1st Jan 2023-1st Mar 2023 Operations team N/A
People Train hotel staff to promote kits 1st Jan 2023-1st Mar 2023 HR team Low
Physical Evidence Use eco-friendly packaging 1st Jan 2023-1st Mar 2023 Product team Moderate
BudgetBudget for Sustainable Room Amenity Kits For the first year
Time Horizon: 1 year
Lets assume 100% occupancy throughout the 1-year period. In that case, we are forecasted to sell 283*365=103,295~100,000 units for 283 rooms. So,
Revenue:
Forecast sales volume: 100,000 units
Average price per unit: $25
Total revenue: $2,500,000
Cost of delivery/production:
Raw material cost per unit: $9
Labour cost per unit: $3
Overhead cost per unit: $2
Total cost of delivery/production: $14 per unit
Total cost of delivery/production for 100,000 units: $1,400,000
Cost of distribution:
Freight and shipping cost per unit: $2
Total cost of distribution for 100,000 units: $200,000
Promotional costs:
Print advertising: $5,000
Online advertising: $7,500
Events: $10,000
Public relations: $3,000
Total promotional costs: $25,500
Projected profit:
Total revenue: $2,500,000
Less: Cost of delivery/production: $1,400,000
Less: Cost of distribution: $200,000
Less: Promotional costs: $25,500
Projected profit: $874,500
Total budget:
Revenue: $2,500,000
Less: Cost of delivery/production: $1,400,000
Less: Cost of distribution: $200,000
Less: Promotional costs: $25,500
Projected profit: $874,500
The Projected profit is $874,500 which is around 33% of the total revenue generated. Regular monitoring and evaluation of the marketing plan will help to ensure that costs are managed effectively, and profits are maximized (Bragg, 2017).
Control and evaluationMarketing activity Date of review Monitoring methods Review outcomes
Print advertising Monthly Sales reports, customer feedback Increase in sales, positive customer feedback
Online advertising Weekly Website analytics, conversion rates Increase in website traffic, higher conversion rates
Mail-outs Bi-monthly Customer surveys, response rates High response rates, positive customer feedback
Giveaways Quarterly Social media analytics, customer feedback Increase in social media engagement, positive customer feedback
Media releases As needed Press coverage, website analytics Increase in press coverage, higher website traffic
Events After each event Attendance numbers, customer surveys High attendance numbers, positive customer feedback
Website Monthly Website analytics, conversion rates Increase in website traffic, higher conversion rates
Blog/social media Weekly Social media analytics, customer engagement Increase in social media engagement, positive customer feedback
Public relations As needed Press coverage, customer feedback Increase in press coverage, positive customer feedback
Branding and artwork Bi-annually Brand recognition surveys, customer feedback Increase in brand recognition, positive customer feedback
Publications and catalogues Annually Sales reports, customer feedback Increase in sales, positive customer feedback
List of referencesBragg, S. M. (2017). Budgeting: A Comprehensive Guide. John Wiley & Sons
Garca-Muia, F. E., Garca-Snchez, E., & Rodrguez-Ariza, L. (2020). Sustainable development and disclosure: A content analysis approach. Journal of cleaner production, 252, 119726.
Hall, C.M. (2006) Marketing and Sustainable Tourism: Principles and Practices, 1st ed. Australia: Channel View Publications.
IBM Institute for Business Value. (2019). Sustainability and the consumer. Retrieved from https://www.ibm.com/downloads/cas/96ZVQOBWKumar, V., & Saren, M. (2017). Sustainability marketing: A global perspective. Wiley.
Kotler, P., & Keller, K. L. (2016). Marketing management. Pearson.
Kotler, P., Armstrong, G., Harris, L. C., & Piercy, N. (2017). Principles of Marketing. Pearson.
Smith, J. and Johnson, L. (2019). Sustainable Marketing: Principles and Practices. Routledge.
Stamford Plaza Melbourne. (n.d.). About Us. Stamford Plaza Melbourne. Retrieved from https://www.stamford.com.au/spm/about-usYang, J., & Lu, X. (2018). PESTEL analysis of the development of the waste-to-energy incineration industry in China. Journal of Cleaner Production, 181, 335-346.
AppendicesAppendix 1:
Product Description
The Sustainable Room amenity Kit contains the following items:
Shampoo Dispenser
Soap Dispenser
Bamboo toothbrush
Reusable water bottle
Biodegradable dental floss
Organic cotton towels and linen
Appendix 2:
Competitor Analysis
The hotel's main competitors in the sustainable travel market include:
Green Hotels
Eco-Friendly Resorts
Sustainable Accommodations
Appendix 3:
Economic Factors
The hotel's ability to implement sustainable practices may be impacted by economic factors such as:
The cost of sourcing sustainable products and packaging
The potential impact on the hotel's bottom line if the Kit is priced at a premium
The availability of government subsidies or tax credits for sustainable initiatives
Appendix 4:
Regulatory Factors
The hotel's ability to implement sustainable practices may also be impacted by regulatory factors such as:
Environmental regulations that may impact the hotel's waste production and energy consumption
Building codes that require the use of certain materials or technologies to reduce the hotel's environmental footprint
Appendix 5:
Sustainable Partnerships
The hotel has partnered with the following sustainable brands and organizations to offer more sustainable options to guests:
EarthLust: Provides reusable water bottles made from stainless steel.
Brush with Bamboo: Provides biodegradable toothbrushes made from bamboo.
Clean the World: Provides recycled soap bars and distributes them to people in need.
Sustainable Travel International: Provides resources and information on sustainable travel practices.
Appendix 6:
Marketing Metrics
The hotel will track the following metrics to measure the success of the marketing plan:
Sales revenue for the amenity Kit
Brand awareness through social media engagement and website traffic
Waste production reduction through monthly waste audits
Appendix 7:
Marketing Timeline
The hotel will implement the marketing plan over the course of the next 12 months:
Month 1-3: Train staff and implement sustainable practices
Month 4-6: Launch the Eco Kit and promote through social media and website
Month 7-9: Offer incentives for guests who use the Eco Kit and build partnerships with sustainable brands
Month 10-12: Conduct waste audits and measure the success of the marketing plan
