HTM 2121Tourism and Hospitality Marketing

Marketing Plan for Souvenir Shop at Hotel X

Seminar 008 Group DYung Ka Chung Kathryn 1101363d

Kenton Dennis Mcelhone Wu 11500860dWong Pok Yan 11346396dChan On Ying 11323372dWong Yee Ki 11121746d

Situation

• To set up a Souvenir/Gift shop at Hotel X and

to create a marketing plan for it for the next

12 months.

Objectives and Goals

• To create and share the local Hong Kong culture

and Hotel X through its services and products to

all business and family travellers.

• To strengthen the relationship between hotel X

and its guests through the unique services and

products offered.

• To an extent create and increase the revenue of

Hotel X.

Macro-Environment Analysis

1. Demographic Environment in Hong Kong

•Majority of visitors in 2011: 15.9%

business, 60% leisure travellers.

•Increase in visitors ratings for hotels and

the value of shopping.

2. Social Cultural Environment in Hong Kong

•Various languages, ethnicities.

•Popular culture of Hong Kong are staying

up to date with trends.

– Materialized lifestyle

– Bright colours and images in specific

locations for promotion.

– Producing and retailing trendy and a variety

of products.

3. Technological Trends in Hong Kong

•Purpose: To increase the revenue by

investing in technology to increase products

and brands popularity.

•Benefit by increasing the accessibility of

purchasing products.

•Challenge in investment/short term costs.

4. Economic Environment in Hong Kong

•6% inflation in Jan, 2012; decreased by 2% since

June of 2011.

•GDP increase 5.8% in 2010.

•Increase in spending; shopping (42%) and hotel

bills (36%)

Micro-Environment Analysis1. Competitors•2 kinds of competitorsA.Product competition

– Offer such products as room, bathroom amenities, utensils, body products, apparel and accessories, chocolates, coffee, cookies, etc.

– Products are similar, create an image of there own hotel i.e. premium culture.

CompetitorsB. Product from category competition

– Numerous High tariff A hotels and shopping malls in Hong Kong

– Not directly sell similar products, but they may attract customers to spend and purchase products.

– Due to changing trends, they may purchase from shopping mall like hotels.

2. Target Customers

Business Travellers

Leisure Travellers

Major guests of high tariff A hotels

38% 36%

Hotel X guests 36% 51%

Activities in HK - Purchasing souvenirs

No. 6 No. 19

Disposable income of guests

$8,000 HKD $7,500 HKD

3. Suppliers

•The major supplier – Hotel X and its wholesalers

-> because we are promoting Hotel X’s culture

•Other suppliers - Bamboo Garden, Greens park

-> for unique and trendy products.

4. Intermediaries

•Travel agents, magazines, specific tourism and

hospitality websites.

Products

Products

Products

Dim Sum shaped music box

Eco-friendly paper speakers

Products

Products

Products

SPECIAL Products

Bamboo Charcoal Products

Pot Plants

Pricing

1. Cost-plus pricing approach

Unit cost = Variable Cost + Fixed cost / Unit Sales

- For Touch products and existing Hotel X products

Eg. aromatherapy, spa amenities, coffee capsules

Reasons

- simplest pricing approach

- can make use of existing pricing by Hotel ICON as pricing

reference

Pricing

Cost-plus pricing approach

Mark up price = Unit cost/ (1-desired return on sale)

- For non-existing Hotel X products

Eg. pot plants, paper speakers, Dragon Beard Candy

Reasons

- with the use of suppliers quotations as references

- ensure gaining of desired return on sale

Places

1. Physical Shop – Lobby AreaAdvantages- Highest traffic of people- Easily attract customers to

enter and browse the shop - Create employee-customer

relationship - Add value by reducing

intangibility of products- Create memorable

customer experience

Places

2. Online Shop

Advantages

- Take advantage of tech savvy

customers

- Ease in transaction

- Convenience

- Generate revenue that could

cover the expenses of setting up a

website & earn profit

Promotion- In-house Promotion

Indoor billboards

Advertisement in elevators

Promotion- In-house Promotion

Discount Coupons

- During check-in

- After each purchase

In-room promotions

Promotion- To the public

Media Advertising

Using billboards and banners

Using the Internet

Implementation Milestone

Marketing Budget – Sales Forecasts

1. Divided the monthly

sales into 7 categories

2. Calculate mean selling

price for each category

3. Estimate the sales

volume based on

seasonality

Feb 12 Mar 12

Touch units soldSale price @unitTotal

35$200$7,000

20$200$4,000

Sight units soldSale price @unitTotal

35$112$3,920

20$112$2,240

Scent units soldSale price @ unitTotal

35$240$8,400

20$240$4,800

Sound units soldSale price @unitTotal

35$100$3,500

20$100$2,000

Taste units soldSale price @ unitTotal

120$55$6,600

50$55$2,750

Taste – High End units soldSale price @ unitTotal

50$800$40,000

20$800$16,000

Special units soldSales price @ unitTotal

35$93$3,255

20$93$1,860

Monthly Totals: $72,675 $33,650

Marketing Budget – Expenses

-Marketing expenses are divided into 3 parts:1. Promotion2. Product Development3. Research

PromotionDigital Poster 6,189Billboard 12,379Booklet 12,379Website design 6,189Public Advertisment 6,189Commission for travel agent 12,379Coupons 6,189

Total Promotion Expenses 61,892.5

ProductProduct development 61,892.5

ResearchResearch fee 9,283.9

Total marketing expenses 133,068.9 Precentage

Precent of Sales 22%

Marketing Control

• Net Income and Net loss will be a big factor

in deciding whether there is a success.

• Use of a break-even analysis.

• Feedback from customers, staff, and

intermediaries.

Thank you for watching!