SERAI BEACH & GOLF RESORTMARKETING PLAN

Marketing Plan Objectives

To establish Serai Beach & Golf Resort [SBGR] as the preferred Beach Resort for domestic and Singapore travelers and to ensure that Serai Beach & Golf Resort is well managed, well maintained and in compliance with the operational standards and financial indicators as set out by the owner.

To position Serai Beach & Golf Resort as the ideal and affordable venue for Travel Agents and

Corporate outings in the East Coast.

Serai Beach & Golf Resort is newly refurbished and upgraded and consists of the hotel operations and the golf operations. It now wants to re-capture the Malaysian & Singapore market and beyond. Thus, the objectives of the marketing and promotion of SBGR will be :

Publicize and promote the rebranding of the resort.

Build awareness among the key target markets that the Resort & Golf Course has gone through extensive upgrading and now under a new management.

Build awareness among the FITS & GIT target markets that SBGR is the ideal vacation destination for them and their families.

Promote and market the Resort through various public relations, publicity, events and other mass communication activities.

LONG-TERM GOALS

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The long-term goal of SERAI is to become the best choice in Pahang, Malaysia for meetings and holidays by creating a differentiated experience capitalizing on its unique location that embraces a superb panorama, its 3.5km stretch of sandy beach frontage facing the South China Sea, its modern facilities to meet the discerning traveler’s demand and personal service incorporating the beautiful Malaysian culture.

The plan is to create an environment of pampered luxury that surpasses the standard fare for Malaysian resort. Expanding the exposure via the various marketing activities to introduce the resort to the Singapore market this year-round paradise rediscovered.

Strategic Areas of Focus1. Maximize the return on public and private investments in tourism.2. Drive year-round travel from visitors in our domestic target audience and lengthen their averagestay by encouraging them to be destination-oriented in this state.3. Drive year-round travel and lengthen the average stay from visitors from our primaryinternational markets.4. Provide leadership and support through collaboration with local, regional, national, tribal andprivate-industry tourism entities.

To achieve the financial objectives of:

YEAR 2005 2006 2007 2008 2009Room Night sold 21,900 22,630 23,360 24,090 24,820AOR [%] 60 62 64 66 68ARR [RM] 75 76 78 80 82GOR [RM] 1,642,500 1,719,880 1,822,080 1,927,200 2,035,240

To achieve the following market segmentation of;

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o FIT 55%o GIT 45%

NOTEFIT- Individual traveler either for business or leisure.GIT- Group traveler for seminar or business.

Situational Analysis

Business Climate

The demand for affordable 2 to 3 star is high with a steady annual growth. Affordable, clean and comfortable accommodation will be very much sought after.

Tourism Industry is expected to continue growing and playing a paramount role in stimulating the economic growth.

Competition among hotel chains and individual hotels will continue to be intense.

Pricing will continue to be competitive.

SMMEL will take advantage of the Seri Malaysia Hotel Chain and its promotional efforts.

The Malaka Tourism Action Council is expected to play a major role to revitalized and enhance tourism promotion and development in the state with emphasis on the following areas;

Marketing and promotions. Product development and enhancement. Development of niche market. Encouraging Singaporeans to spend their vacation in Melaka.

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SMMEL is targeted to achieve approximately 5% to 7% revenue growth annually, bearing that there are no further catastrophe such as the recent SARS Virus and the Bird Flu outbreaks.

Tourist arrivals to the State Of Melaka, International and Domestic are as below

Destination Year 2003 Year 2004Johor Bahru 1,225,203 1,765,959

Mersing 181,795 205,652Desaru 229,577 423,443

Source: Jabatan Pelancongan Negri Melaka.

Number of Hotel guest in Melaka for Year 2003 are as below:

Source: Jabatan Pelancongan Negri Melaka.

COMPETITION

The 4 and 5 star hotels in Melaka are increasing their rates to the rightful status. This will leave the mid-range hotels to compete among themselves in their category.

Country of Origin Number of GuestSingapore 103,839Indonesia 14,382Philippines 5,449Thailand 4,963Asia Pacific 158,733Europe 26,518Africa 682The America’s 7,676

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SMMEL will face competition from Straits View Hotel, Surf pacific Hotel, Tropical Inn, Century Plaza Hotel, Compact Hotel, Goodhope Hotel, Merlin Inn Hotel and Hotel Rasa Sayang and Naza Hotel. Their published rates, star ratings, number of rooms and facilities are as follows;

Hotel Name Star Rating

No. Of Rooms

Published Rates

Facilities BusinessMix

Straits View Hotel *** 30 89-150

Swimming poolLoungeCoffee HouseMeeting RoomTelevisionIDD Telephone

GovernmentCorporateAssociationsSpecial EventsBanquetSeminar

Surf Pacific Hotel *** 80 90-188

Coffee HouseGymnasiumTelevisionIDD Telephone

GovernmentCorporateAssociations

Tropical Inn ** 158 150-250

LoungeBeauty SalonLoungeMeeting RoomTelevisionIDD Telephone

GovernmentCorporateSpecial EventsAssociationsSeminarsWeddings

New York Hotel *** 413 105-175

LoungeBusiness CenterCoffee HouseMeeting RoomDisco/Night ClubTelevisionIDD TelephoneDrug StoreSwimming PoolSquash Court

Government CorporateSpecial EventsAssociationsBanquetSeminarsWeddingsExhibitions

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SPA

Merlin Inn ** 125 190-345

Coffee HouseMeeting RoomFitness CenterTelevisionIDD TelephoneSwimming Pool

GovernmentCorporateAssociationsSeminars

Hotel Name Star rating

No. Of Rooms

Published Rates

Facilities Business Mix

Century Plaza Hotel *** 80 79-188

LoungeCoffee HouseMeeting RoomTelevisionIDD Telephone

GovernmentCorporateSpecial EventsWedding

Compact Hotel Johor Bahru *** 109 128-200

Business CenterCoffee HouseMeeting RoomIDD TelephoneInternet FacilitiesTennis CourtTelevision.

GovernmentCorporateAssociationsSeminarsBanquetSpecial Events

Hotel Rasa Sayang * 100 80-120

Coffee HouseMeeting RoomFitness Center/SPATelevisionIDD Telephone

GovernmentCorporateSeminarsBanquet

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Internet Facilities

Naza Hotel *** 148 90-120

Coffee HouseMeeting RoomSwimming PoolIDD TelephoneTelevisionBusiness Center

GovernmentCorporateSeminarsSpecial EventsBanquetWeddings

SERI MALAYSIA MELAKAHOTEL’S PROFILE

NO. OF ROOMS : 28 Standard Twin

29 Standard Queen

42 Family Rooms

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1 handicapped Room

TARIFF RATES : RM 140-00 Family Room

RM 120-00 Standard Room

FACILITIES : Air Conditioned Rooms

Color Television

Coffee & Tea Making Facilities

Hot & Cold Showers

IDD Telephone

70 FREE Car Parking Bays

Mini Fridge in Family Rooms

In-House Video

Standby Generator

SEMINAR ROOMS Dinner 320AND FACILITIES Cocktail 350

U-Shape 200

Class Room 400

Theater 740

LOCATION OF HOTELAND NEARBY FACILITIES

Government DepartmentPutri Specialist Hospital

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SWOT ANALYSIS

Strength

o A chain of eighteen [18] hotels located within peninsular Malaysia.

o Large Banquet hall to cater for seminar, weddings and banqueting.

o Strong image and brand recognition.

o Affiliation Program with marketing agencies will boost hotel sales.

o Affordable pricing will increase room, seminar and banquet sales.

o Situated in a strategic location that is central and convenient.

o Linked with central reservation system.

Weaknesses

o Limited in facilities against the affluence of hotel guest.

o Limited outdoor space to cater for outdoor activities.

o Space constraint to cater for “Family Day Event” demands.

Opportunities

o Affordable rates for rooms and seminars will create market interest and demand.

o Growth of domestic tourism.

o Close proximity to large Singapore market.

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o Appeals to the Muslim market as no alcohol is served and food is all Halal.

o Rates are attractive to government servants and mid- range travelers.

Threats

o Competition from the hotels in the existing market area.

o Hotels with better facilities dropping their rates and competing directly.

o Shortage of skill labor within the market place.

Marketing Plan

MARKET POSITIONING

Hotel Seri Malaysia Melaka will be positioned as a mid-range 2 star hotel, which is a well managed home grown hotel chain of International standard within the Malaysian Domestic Market.

It is the largest hotel chain in the country having its hotels at strategic and ideal locations.

Hotel Seri Malaysia Malaka offers affordable accommodation and seminar rates and caters mainly for the Malaysian Domestic Market.

SMMEL will provide Affordable Accommodation to both domestic and foreign customers with high quality product, excellent service and comfortable and clean accommodation.

MARKET SEGMENTATION

Business Mix

SMMEL target business mix will be mainly domestic market and targeted to be generated from the following source of business.

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Source of Customers %

Business

FIT 30

GIT 40

Leisure

FIT 25

GIT 5

GRAND TOTAL 100

Overall business mix will be 55% FIT and 45% GIT. Breakdown of the business mix are as follows

Government 45 % Corporate 40 % Travel Agent 2% Others 13 %

Total 100%

Market Mix

The target market mix for SMMEL will be a mid-level business and leisure traveler, which will comprise of the following market mix.

Domestic 93.0% Singapore 5.0 % Other Countries 2.0%

Total 100%

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Source of customers based on the market mix proposed are as follows:

o Mid-level business travelers from Malaysia and Singapore.o Government sector, GIT & FIT.o Leisure o Sports and leisure clubs gathering and seminars.o Conference and seminar business both from the public and private sector.o Senior Citizens.o Tour groups from Singapore.

MARKETING STRATEGY and ACTION PLAN

o Pricing

Pricing strategy is maximizing revenue by adhering strictly to the price matrix.

Promotional rates will be utilized but close monitoring of the rates is to be carried out to maximize revenue.

Corporate rates are to be extended to qualified commercial houses on a yearly basis.

To encourage support from travel agent, all travel agents registered under MATTA and NATAS will be offered the travel agent rates of RM90-00 net for standard room and RM110-00 net for family rooms.

Standard minimum selling price for residential and non-residential meeting packages will be aggressively promoted. Rates offered are based on 20 paying guest and full utilization of hotel services and facilities. The rates are inclusive of schedule meals.

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To promote the Minimum Selling Price [MSP] during off peak period [P3] and to restrict rates during the peak periods of [P1 & P2]. This will assists in managing revenue of the SMJHB.

P1 [64 Days] – Eve of public holidays and public holidays that falls on Friday, Saturday and Sunday.

P2 [69 Days] – Eves of public holidays and public holidays that falls on Monday, Tuesday, Wednesday and Thursday.

-- Every Friday and Saturday.

P3 [232 Days] – All other days that are not under P1 or P2.

o Product

To establish and maintain high standards at SMMEL in compliance with the Seri Malaysia Hotel Franchise system and to comply with the 5Cs Concept i.e. Clean, Comfortable, Convenient, Courtesy and Conformity, thus ensuring excellent guest experience.

To ensure high Food and Beverage standards in terms of Quality, Presentation, Menu Planning and Consistency.

To maintain efficient and hospitable service in all operating departments.

To promote packages for FIT [Business or Leisure and GIT [Business and Leisure].

Product mixes are as follows: Millennium seminar packages for Government sector.

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Seminar and training packages for other sector. 2 plus 1 Trade show package. Promotional rate. Activities package [Golfing, nature etc.]. Sightseeing packages.

o Place, Channel and Distribution

To establish distribution channel through intermediaries including travel agency network, travel trade network and also corporate and government sector.

The proposed distribution channels will be as follows: Travel Trade

o Retail agentso Wholesalerso Hotel wholesalerso Internet Travel Portal

Non Travel tradeo Corporate companieso Government Organizationo Clubs and associationso Marketing agencies

o Promotion

To establish and develop a strong position in Melaka and to become the preferred hotel for business travelers and Government officers. SMMEL will also strongly promote its seminar and conference packages.

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To develop and implement an effective sales and advertising strategies focusing on SMMEL affordability, strategic location and ideal venue for meetings and seminars, targeting at local and domestic market as well as penetrating into the Singapore market. The strategies to be employed to achieve this will be via print media, telesales, direct marketing and participating in trade shows.

SMMEL will embark in advertising and sales promotion campaign that is consistent, aggressive, creative and continuous. The advertising and sales promotion will focus on SMMEL market seasonality period as identified earlier as P1, P2, P3.

SMMEL will continue to create growth in the GIT business through Government seminars and corporate business. To continue to create growth in FIT business from the seminar participants.

To reinforce the sales and marketing efforts through the Central Reservation System under:

Reservations Marketing Corporate Direct marketing Travel Agent Marketing

Participation in trade fares such as MATTA fair NATAS fair and Domestic Tourism Exposition and to work closely with Jabatan Pelancongan Negri Melaka, Melaka Tourism Action Council and MTPB to capitalize on domestic tourism promotions programs.

Human Resource Plan

The overall human resource plan for SMMEL is to draw up staff manning guide with organization chart and a comprehensive training programmed to develop employees to be competent and effective in providing customer service and enhancing their job performance.

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Staff manning guide for SMMEL is planned on a low staff to room ratio. This is done in view of multi skilling and limited facilities and services available at SMMEL.

Organization Chart for SMMEL is as per Appendix I. Staff Manning Guide for SMMEL is as per Appendix II.

STAFF DEVELOPMENT

Staff Recruitment

SMMEL main recruitment criteria shall place emphasis on the following criteria:

Appropriate job experience. Minimum qualification relevant to the job. Positive mental attitude. Eye for detail.

In view of the general shortage of skilled hotel employees in Melaka, it will be necessary to recruit rank and file employees with no prior hotel experience and to train them accordingly. Preference shall be given to the employment of Bumiputera staff.

Staff Training

It is crucial to employ more skilled employees whenever possible. SMMEL’s emphasis will be placed on staff training and this will be done on a continuous process.

The Proposed initial training programme for SMMEL are as follows:

Programme Objectives

Job OrientationTo instill corporate culture and understanding of SMMEL objectives

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Aspects of Malaysian Courtesy and Culture

To demonstrate and teach common Malaysian courtesies, greetings and mannerism.

Departmental Operations Training

To enable staff to perform their duties efficiently and effectively in all operating departments especially Front Office, Housekeeping, Maintenance, Food & Beverage and Kitchen.

Computer TrainingTe enable the staff to operate the computer system in departments which are computerized, e.g. Front Office, Reservations, Telephone Billing, F & B Billing and Accounting System.

Job enhancement training will be conducted at SMMEL to further develop the staff to be more efficient and productive. Some of the job enhancement-training programs that will be conducted are:

Programme Objectives

Leadership and supervisory skills.

Leadership roles and human relations skills for supervisors in dealing with subordinates.

Human Resource Development skills.

To enhance the skills pertaining to human resource development of the

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staff.

Executive and supervisory skills.

To enhance executive and supervisors in skills pertaining to training, monitoring and delegation of work to their subordinates.

Motivation. To improve staffs work attitude, morale and productivity.

Effective Communication.

To ensure that the appropriate and the most effective communication methods are utilized.

Train the Trainer. To train departmental heads and sub-departmental heads on training skills.

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Financial Projection

EIGHT-YEAR FINANCIAL PLAN ?????? HSMMEL

2004 2005 2006 2007 2008 2009 2010 2011Room 2,937.600 3,124,800 3,317,760 3,516,480 3,720,960 3,931,200 4,089,600 4,250,880F & B 1,028,160 1,093,680 1,161,216 1,230,768 1,302,336 1,375,920 1,431,360 1,487,808Tel.&Other Revenue 79,315 84,369 89,579 94,944 100,465 106,142 110,419 114,773GOR 4,045,075 4,302,849 4,568,555 4,842,192 5,123,761 5,413,262 5,631,379 5,853,461GOP 1,541,781 1,640,030 1,741,305 1,845,608 1,952,921 2,063,264 2,146,401 2,322,223NOP 733,623 813,828 896,504 981,652 1,069,254 1,159,332 1,227,202 1,387,477

Net Profit 351,809 409,557 469,083 530,390 593,463 658,320 707,186 822,584

FINANCIAL ASSUMPTIONS

Projected Average Occupancy Rate and Average Room Rate for HSMMEL:

Food and Beverage Revenue are 35 % of room revenue. Telephone and other revenue are 2 % of Room and F&B revenue.

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Operating Expenses

Room expenses are 20 % of Room revenue. Food and Beverage expenses are 70% of F&B revenue. Telephone and Other Expenses are 80% of Telephone and Other Income.

Direct Expenses

Admin and General is 9% of total Gross Operating Revenue. Training expenses are 2% of Gross Operating Revenue. Sales and Marketing Expenses are 3% of Gross Operating Revenue. Repair and Maintenance cost are 4% of Gross Operating Revenue. Energy Cost is 8% of Gross Operating Revenue. Insurances are 1% of Gross Operating Revenue.

Indirect Expenses

Franchise fee is 1,500 per room over 5 years. Rental is

RM34, 000.00 per month Year 1. RM35, 000.00 per month year 2. RM37, 000.00 per month year 3. RM39, 000.00 per month year 4. RM41, 000.00 per month year 5.

Royalty is 5% of Gross Operating Revenue. A&P Contribution is 2% of Gross Operating Revenue.

Other Indirect Expenses

YEAR OCCUPANCY %

AVERAGE RATE[RM]

2005 60.0 75.002006 62.0 76.002007 64.0 78.002008 66.0 80.002009 68.0 82.00

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Sinking fund is RM120, 000 per annum. Amortization of initial expenses is RM15, 000 per annum Depreciation is estimated at RM50, 000 per annum

Profit and Loss Statement

Appendix III

Cash flow Statement

Appendix IV

Start Up Capital Requirement

Items RMFranchise Fee @ 1,000 per room for 200 room

150,000.00

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1st Month Rental 34,000.004 month Rental Deposits 136,000.00Equipment Deposit 60,000.00Utility Deposit 60,000.00Advance A&P Contribution 10,000.00

Total 450,000.00Working Capital

Cash, 3 months of direct expenses@RM66,500.00 per month 199,500.00

Total Capital Requirement 649,500.00@ 650,000.00

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