Introduction
The role of project management in a firm is critical. Project management serves as the guide for successful products and services. In the hospitality industry, for instance, project management is highly used. Moreover, project management is needed to ensure that hotels will create effective strategies. The process in which project management is manifested varies among firms. Hotels have several issues and require different project modes. In addition, hotels have to sustain competitiveness and sustain their surge in the market.
Meredith and Mantle (2006) noted that the existence of businesses has resulted in the creation of planning systems. Huge firms have been known to adopt successful planning schemes. Strategic planning has become a primary fixture in the operations of companies. Most hotels maintain these systems when launching new projects. Hotels also use planning before implementing strategic changes and future perspectives. Poor planning has often led to failures and losses. These are major predicaments that hotels need to prevent.
Company Background
Hyatt Regency Islandia will change its name and will soon be unveiled as Hyatt Regency Mission Bay Spa and Marina. This strategy was implemented after the building was renovated. The $65 million reconstruction is geared towards establishing Hyatt’s reputation as the primary accommodation firm in the area. The main additions to the hotel include an eco-friendly spa and a world-class health club. The firm recognizes the strong demand for such establishments and this is the best time to penetrate the market.
The hotel executives consider the move as a major push in the firm’s competitiveness. This investment shows Hyatt’s dedication to improving its service to the clients. In addition, Hyatt tries to underline the natural beauty of San Diego. Shifting to such a business will make Hyatt more attractive to visitors. Aside from the new amenities, Hyatt will upgrade its current structures. Customers will be treated to a better seaside restaurant and great rooms. Hyatt also considers this strategy as an opportunity to host some events in the city.
Problem Definition
Hyatt is on the verge of completing its San Diego hotel makeover. Part of the enhancement includes a change in name. Although there are several issues that can be linked to such a strategy, the most pressing relates to marketing. Granted that Hyatt is a strong hotel brand, the other names attached to it make the hotel a different product. The venture will be a huge challenge to the marketing team. These individuals are in charge of maintaining their controlled market and moving further to other markets. Creating sound marketing initiatives will be an important part of the entire hotel plan.
Justifications
Marketing issues will be prominent because the hotel will change its name. This strategic decision can potentially affect the current market that Hyatt has. Its share in the competitive hospitality industry will be affected by this move. Making a strong marketing statement is an important component of the hotel’s plans. By moving to square one, Hyatt needs to overcome other established hotels to become part of the mainstream.
Reputation is vital in the hospitality industry. There are several hotels that have succeeded because of established names. The new Hyatt hotel comes in a new brand. This means that Hyatt has to start from scratch before reaching the apex of its brand. Hyatt also needs to extend its operational initiatives and provide better customer service. Like other new products, there is a possibility of a bust. But since Hyatt is known for its quality, its San Diego hotel just needs to sustain that reputation.
Return on investment is a primary concern for the owners of the hotel. Although there are financial targets, such estimates are often difficult to justify. The existence of a marketing plan will allow the hotel to forecast future clients. The headcount of these visitors is a gauge for determining the value of the investment. Market research is a possible initial step taken to ascertain project profitability. The next process involves the creation of a comprehensive marketing plan. Having a marketing plan will allow Hyatt to get in touch with one of the most important components of its business: the customers.
Feasible Course of Action
Combining the different aspects associated with marketing is vital to the company. The development of a marketing mix entails strategies that are designed to ensure consistency in the quality of performance (Culliton, 1948). The first aspect that has to be considered is the price of the product. Pricing is critical because Hyatt introduces new products in the market. Hyatt needs to make the prices of its services a prime attraction. The reputation of the firm becomes more established by providing value to consumer money.
Promotional activities have to continue using all the options available. Television is an effective media and providing print advertisements is highly recommended. Most important, the company has to focus its promotional initiatives on the extensive use of the Internet. Aside from being cost-effective, the strategy has worked for most firms in the industry. Using the Internet to serve as Sales Avenue will further boost the income of the company. These promotional activities have to underline the enhancements that were made for its loyal clients and future customers.
The view of the amenities provided by the hotel is important in marketing. The location needs to be perfect and the amenities have to be conspicuous. The combination of aesthetic view and prominent location will make the hotel an enticing getaway. Considering all the aspects will enable the marketing crew to draw the actual picture and determine the areas classified as possible risks and uncertainties. Indeed, these are basic aspects that have to be present in the entire plan. The success of the plan depends on several attributes that include flexibility, accuracy, and timeliness.
Other Alternatives
Market positioning refers to the perceptions developed in the minds of the target market. It involves the creation of the image of the brand for the entire firm (Trout and Rivkin, 1996). Positioning is purely procedural and relies on the completion of stages before making further improvements. Hyatt has to define its target market. Likely customers include foreign and local visitors. The company needs to analyze the perception of the consumers on other products focusing on the attributes promoted by its new products. The marketing planners can commission a survey to determine the pulse of the market.
Selecting target consumers is manifested after the entire market has been segmented. The new Hyatt hotel is attractive to individuals who are health conscious. In terms of age, Hyatt can cater to the needs of clients in all age brackets. San Diego has a diverse cultural base. Hence targeting ethnicity is a hard strategy. Aside from these aspects, there are other methods in which targeting is implemented. Hyatt can use the income of residents in the city as a basis for its marketing plan. Given the range of services provided by the hotel, buyer power is a good basis for promotions.
In terms of cost, this is more economic compare with the previous option. Target markets are specific hence limited in terms of spending. Moreover, the focus of the marketing initiatives is centered on possible clients. But this strategy will likely provide fewer rewards. The financial returns from this method are defined but limited. Market positioning is costly and time-consuming. But it provides immediate results. In addition, its impact on the reputation of the new Hyatt hotel is long-term.
Proposed Marketing Strategy
In most firms, a marketing audit is considered a vital component of marketing processes. It is the initial stage in undertaking managerial initiatives in marketing. The focal point of the marketing audit is its design which ultimately determines the process in performing such a method. Brownlie (1993) stated that a marketing audit is a systematic and comprehensive approach that evaluates the marketing initiatives of the company. This is manifested to identify possible problems in Hyatt personnel and marketing activities. The information gained from this activity contributes to molding the marketing plan.
The success of the marketing initiatives of Hyatt is documented in its annual report. Among the marketing activities, the advertisement has been seen to have made huge improvements. The enhancements made by Hyatt can potentially attract various clients. The target of the advertisement was to build a reputation that represents the quality service provide by Hyatt. The advertisement needs to be geared towards expansion possibilities. In addition, the continuous upgrade in amenities needs to be emphasized.
Effective branding has been an important part of marketing activities. It is important that the consumers easily recognize enhancements made by Hyatt in its new hotel. It has been observed that most competitors are designing their marketing initiatives after product development. Likewise, the company has taken bold steps in introducing new services in the market. The marketing plan needs to outline the short-term goals of the hotel and move towards achieving its long-term aspirations.
Aside from the marketing plan, there are other aspects that Hyatt needs to recognize. For instance, the improvement of employees has to be a priority. Hyatt’s internal resources are responsible for the formation of a distinct competitive advantage. Human resources are one of the internal resources that companies have. Barney (1991) explained that the interaction contributes to the promotion of competitive advantage. Human resources that create value, rare, inimitable, and non-substitutable are vital components in sustaining competitive advantage. Training the hotel personnel will allow Hyatt to remain true to its marketing plans.
In addition, corporate social responsibility (CSR) needs to be implemented. CSR is derived from the focus provided by firms in contributing to the overall welfare of society. This is usually done by channeling to individuals the benefits enjoyed by firms. Moreover, CSR also details the necessity for Hyatt to develop and maintain a relationship with stakeholders. Aside from good corporate governance, this is observed through quality performance (Van de Ven, 2006). The most important outcome from this initiative is that the reputation of Hyatt improves immensely.
Implementation Plan
The project is primarily the function of the marketing department. There are four phases involved with this project. The conception part pertains to the brainstorming of ideas by the marketing group. After the options have been planned, the team needs to develop concrete measures. The development phase also includes the identification of resources and cost analysis. It also involves the different tasks assigned to each person.
In the implementation process, the head of the marketing group leads the system. The head is tasked to ensure that all other personnel is performing effectively. The implementation also involves the recording of results. The initial outcome of the project is crucial. Moreover, implementation also includes the risks that were identified. This will allow the marketing team to make the necessary adjustments and changes in future marketing initiatives (Table 1).
Project Evaluation
Hyatt can use several methods to evaluate the impact of the marketing plan. Perhaps the most important consideration in this process is the assessment of the marketing plan that needs to be approached systematically. This means that the evaluation requires planning and identification of inputs that will be used. The conduct of the assessment needs to be determined. Dates have to be underlined so that the entire process will not be stalled. The evaluators have to be oriented with the process and the tools that will be used in the evaluation.
Another vital evaluation tool is market research. This is more accurate and can determine various aspects that the company desires to know. In particular, market research determines the response of the customers to the marketing initiatives of the company. This is usually done through a survey where company personnel will ask customers about their views. The central question of the survey highlights the capacity of the advertising methods manifested by the company to influence the decision of the respondents. This will be supported by several queries on aspects that affect the perception of the customers on the main question.
Aside from the discussed mechanisms, there are other methods that the company can use to push through its evaluation. Technicalities are paramount and so are the minor details that need to be a part of the evaluation. The success or failure of the marketing plan will be hinted at in the results of the evaluation. Such a process is provided with high importance because any clue in relation to the effects of the marketing plan will be valued as the implementation progress.
Appendices
Table 1: Milestones and Events.
Table 2: Course of Action and Alternatives.
The criteria identified for the course of action include the following: Cost-effectiveness (CE); beneficial (B); timeliness (T); usability (U); and measurability (M). The scores indicate the ranking of the three identified courses of action. 1 represents the highest rank while 3 represents the lowest rank.
References
Barney, J. (1991). Journal of Management. “Firm Resources and Sustained Competitive Advantage.”
Brownlie, D. (1993). Marketing Intelligence and Planning. “The marketing audit: A metrology and explanation.”
Culliton, J. (1948). The Management of Marketing Cost. Boston: Harvard University – Graduate School of Business Administration.
Meredith, J. R., & Mantel, S. J., Jr. (2006). Project management: A managerial approach (6th ed.). New York: John Wiley & Sons.
Trout, J. and Rivkin, S. (1996). The New Positioning: The Latest on the World’s Number 1 Business Strategy. New York: McGraw Hill.
Van de Ven, B. (2006). The Journal of Corporate Citizen. “Strategic and Moral Motivation for Corporate Social Responsibility.”