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Introduction
The Hospitality Industry is a widely exploited industry and is made up of a large number of players. All these players are in competition for the same customers meaning that to succeed; players in this industry have to come up with marketing strategies that will ensure they have a competitive advantage over their rivals, for example in terms of technology, quality services and quality products (Sloan, Legrand & Chen 10).
Competition in this industry comes from already established players and new entrants into the market. As a result of this, existing players constantly engage in refurbishment, re-launches and modernisation of their facilities to ensure they remain on top.
According to a survey carried out by the British hospitality Association in 2007, close to three billion Euros were spent on the refurbishment, re-launching and modernisation of hospitality facilities in the industry (Woods para. 2). This goes to show how important this kind of investment is to players, as it ensures they remain competitive in the industry and also able to effectively cater for the needs of their customers and potential customers.
Consumers contribute in major way to institutions success as they determine the level of sales such institutions make, whether they are selling goods or services. Therefore it is important that business establishments in the hospitality industry invest in the sales and marketing of their products to consumers while at the same time engaging in the right marketing strategies to ensure that their message is reaching consumers as expected.
This paper aims at assessing the sales and marketing strategies employed by various revenue generating departments at the Crowne Plaza Parramatta in Australia, as well as other profit generating activities the hotel engages in that makes it more marketable in the hospitality industry. I will also come up with weaknesses in their strategies and come up with recommendations that will enable the hotel to become even more successful, and have a competitive advantage compared to its rivals in the industry.
The Crowne Plaza Parramatta
This hotel is located in Parramatta and is mostly known as a venue for events ranging from official functions such as seminars and conferences to less formal functions such as weddings and other celebration events. The fact that the hotel can transform its venues to suit the occasion at hand and offer quality services for these events makes it a destination of choice for most of its customers and this has largely contributed to the success it has been able to achieve so far. The hotel also offers restaurant and bar facilities for its customers, as well as accommodation for those wishing to stay over (Crowne Plaza Parramatta para. 1-3).
The hotel is easily accessible to its customers as it is located in Parramattas Central Business District and is close to major business establishments making it a viable location for both leisure and business customers. It also has a business centre equipped with the most modern communication technology equipment meaning that those intending to carry out business transactions with people from different locations can do so during their stay without any problems.
Other facilities include a gymnasium, swimming pool, laundry facilities, and facilities for the disabled, as well as baby sitting services to ensure a fulfilling and comfortable stay. Its a hundred and ninety six rooms are also well equipped with modern equipment at the disposal of the customer, and these rooms are customized to the needs of various customers making the money spent on them dependent on the kind of room one books. Accommodation booking can be done online, by phone or in person and is thus convenient for all customers willing to stay at the hotel.
Sales and Marketing Strategies Utilised by Various Revenue Generating Departments in the Crowne Plaza Parramatta
It is important to make a clear distinction between sales and marketing to avoid confusion at a later stage. Sales involves those activities that a firm engages in to generate revenue, while marketing is more consumers oriented as it focuses on fulfilling the needs of the consumer, while at the same time benefiting the firm. Marketing involves carrying out different activities that will provide existing and potential consumers with information that will enable them to make informed decisions regarding the consumption of particular goods and services. In the hospitality industry, the correct market mix involves both goods and services since the industry offers its customers with both tangible and intangible commodities (Reid & Bojanic 14).
Crowne Plaza Parramatta engages in the following sales and marketing strategies:
Online Sales and Marketing Strategies
Crowne Plaza Parramatta engages in online marketing for its various products and services. The accommodation department for example has advertised the various types of rooms the hotel offers to its customers on the hotels website, such as the presidential suite, the deluxe room, the superior room as well as the standard room. To provide the customers and potential customers with relevant information, there is additional information concerning the main features of the room which offer guidance to customers wishing to stay at the hotel. Besides the company website, the hotel also markets itself in other major hospitality industry websites. The restaurant and bar departments as well as the meetings department also advertise their services on the company website.
Incentives
The hotel offers various kinds of incentives to its customers so as to establish customer loyalty and create a market niche for itself. For example, the hotel has various programs or group levels where members of such groups or programs receive certain incentives such as reduced prices, complementary gifts, hotel newsletters and emails informing them of available offers when they are in place. One of these groups is the Priority Club Rewards Programme whose members benefit from some of the above mentioned benefits among others (Sandison para. 3). Being a member of such clubs enables one to enjoy benefits that non members do not enjoy.
As a marketing strategy this ensures that customers remain loyal to the hotel. These incentives are enjoyed across all departments of the hotel, including the bar and restaurant, fitness centre, accommodation department among others.
Events Marketing
In order for the hotel to increase its customer base, it engages in vigorous events marketing campaigns from time to time, targeting specific groups of people. For example in 2007, the hotel carried out an events marketing campaign targeting the business travellers community across Europe, and among those participating in the campaign were a group of the hotels business leaders who educated the business travellers on different business strategies that would enable them perform better as business people. The company worked in conjunction with other stakeholders such as the media and as such the hotel was able to market itself and create publicity for itself and the products and services it offers.
Public Relations
Crowne Plaza Parramatta uses public relations as a sales and marketing strategy. This helps to strengthen the relations between the company and the public but more so its customers. The hotel uses public relations when announcing major company events and information such as the hotels profitability, expansion plans and corporate social responsibility engagements among other hotel activities. Such information when passed to the public generates positive feedback meaning that the company gains their trust and is also placed in a better position when it comes to attracting new customers.
Public relations statements are normally released either in writing, as videos or as press interviews and they normally generate a lot of reactions from the public. With the internet fast taking over the advertising arena, many companies come up with press release functions in their websites enabling internet users to access such press releases (Sandison para. 2-4).
Sales Promotions
Sales promotions refers to those short term activities that a firm engages in, in a bid to generate more revenues by making more sales (Hsu & Powers 296). The hotel engages in various sales promotion campaigns for its products and services in the different profit making departments, among them being the accommodation department which makes offers to those staying in the hotel meaning that they pay less for their stay.
This helps the hotel to attract more customers in the short term and thus increase the departments revenues. The restaurant and bar department offers discounts on some of its products thereby increasing the level of consumption of this department thereby increasing the level of sales for the department. The hotel also carries out sweepstakes contests where members of the public are allowed to participate and those who win are given free meals, free accommodation and the like. Sales promotion allows the company or firm to lower the price of its products and services while at the same time increasing their value in the eyes of the consumers.
Recommendations
Even though the hotel engages in the above mentioned sales and marketing strategies from time to time, more still needs to be done in order to ensure continued success and improved profitability and performance. The hotel should therefore do the following:
Continued Refurbishment
Crowne Plaza Parramatta is known for its wonderful event halls and it should therefore ensure that these rooms are continuously refurbished and modernized in line with the needs of the customers (Hsu & Powers 6). Since the hotel offers both business and celebration facilities for informal gatherings, it should ensure that these facilities are in top condition so as to encourage repeat use of the facilities by customers.
Marketing and Advertising
The hotel management should come up with marketing strategies that will ensure the continued in flow of customers during all seasons. The hospitality industry is in most cases faced with problems of peak and off peak seasons, meaning that during certain times of the year, they have more customers than they can accommodate and at other times the number of bookings is low (Middleton, Fyall, Morgan & Ranchhod 369).
Crowne Plaza Parramattas management should thus advertise on different media platforms such as the internet, television, print and broadcast media to ensure that the customers and potential customers are constantly reminded of the services the hotel offers. The advertising and marketing strategies should be picked with the target market in mind so as to ensure that they reach the right people in the intended way (Bowie & Buttle 4-5). For example, catalogues can be used for business people to show the conferencing facilities and details regarding accompanying services whereas the television may be used for the advertisement of other services and facilities such as wedding facilities.
Quality Service Provision
Service provision in the hospitality industry is very important as in most cases it determines the level of customer satisfaction achieved. When high levels of customer satisfaction are achieved, they will automatically keep coming back to the facility. To provide quality services, highly qualified staff members are a pre requisite meaning that the recruitment of such staff members should involve a thorough process.
This goes for both the workers working within the establishment and those engaging in the sales and marketing activities for the hotel in question. The recruitment of such staff members should be flawless, right from the selection criteria to the interviewing, hiring and training (Greenberg, Weinstein & Sweeney 10-15). The manager in charge of the sales and marketing department in the hotel should also provide quality leadership and direction for the sales force and should thus be competent and posses required leadership qualities (Darmon 3). This will ensure the efficient and effective running of the sales force as well as the operations of the sales and marketing department.
Conclusion
Engaging in the recommended sales and marketing strategies will prove beneficial for Crowne Plaza Parramatta Hotel as it will help consolidate its position in the hospitality industry and in effect achieve consumer satisfaction which translates into consumer loyalty. With a stable consumer base, the hotel will be able to achieve its set performance goals by increasing revenues generated and its general profitability.
Works Cited
Bowie, David. & Buttle, Francis. Hospitality Marketing: An Introduction. Massachusetts: Elsevier Butterworth- Heinemann, 2004.
Crowne Plaza Parramatta. Home . 2010. Web.
Darmon, Rene. Leading the Sales Force: A Dynamic Management Process. England: Cambridge University Press, 2007.
Greenberg, Herb. Weinstein, Harold. & Sweeney, Patrick. How to Hire and Develop your Next Top Performer: The Five Qualities that Make Salespeople Great. New York: McGraw Hill Publishers, 2001. Print.
Hsu, Cathy. & Powers, Thomas. Marketing Hospitality. New York: John Wiley and Sons Inc, 2002. Print.
Middleton, Victor. Fyall, Alan. Morgan, Michael. & Ranchhod, Ashok. Marketing in Travel and Tourism. 4th ed. Massachusetts: Butterworth-Heinemann Publishers, 2009.
Woods, Susan. UK Hotel Industry Boom . 2007. Web.
Reid, Robert. & Bojanic, David. Hospitality Marketing Management. 5th ed. New Jersey: John Wiley and Sons, 2009. Print.
Sandison, Nikki. Crowne Plaza Turns to Events Marketing . 2007. Web.
Sloan, Philip. Legrand, Willy. & Chen, Joseph. Sustainability in the Hospitality Industry. Oxford: Butterworth-Heinemann, 2009.
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