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Resort All Inclusive is a 3-stars hotel that recently entered the Mediterranean Basin hotel industry. The hotel is strategically located at Mallorca Island. The hotel industry in Mallorca has been characterized by rampant growth over the past decades as a result of increment in the rate of tourism in the region (Buswell, 2009).
Decision to locate the resort at Mallorca was motivated by the need to exploit the tourism resources in the Mediterranean Basin.
According to Buswell (2009), Mallorca is characterized by physical resources that are significant in development of tourism. The main resources include beaches, vegetation and fascinating mountains.
To attract both local and international customers, Resort All Inclusive is committed at ensuring that clients attain a high level of customer satisfaction. To attract and accommodate a large number of customers, the resort has 4 buildings that have a total of 600 rooms.
The rooms are specially designed and furnished to give an appealing ambience. Jenkins and Pigram (2006) are of the opinion that resorts should offer a range of leisure, shopping, transport, recreation, accommodation and entertainment facilities. Inclusion of these components is fundamental in attracting and retaining tourists.
This arises from the fact that customers have diverse tastes and preferences. Firms’ management team should undertake a comprehensive market research in order to develop a comprehensive understanding of customer needs. The research should focus on both the consumer and the competitor.
The resort has incorporated a number of entertainment facilities which include a football courtyard, table tennis, 4 swimming pools, a volleyball court and a mini golf court. Additionally, the resort is also constituted of 3 restaurants, 1 oriental thematic restaurant, 3 bars, a pizzeria, snack bar and a barbecue.
Most businesses derive their success from adhering to the set objectives and principles outlined in their mission statement. The mission statement guides the various activities undertaken by businesses (Kazmi, 2008).
In the course of its operation, the resort is guided by an effective mission that entails providing unique hospitality experience to customers.
The resort intends to achieve this by offering high quality services to customers in addition to promoting a business environment that is fosters a high level of friendship, openness and comfort. To improve its public image, the resort has incorporated the principles of environmental responsibility and sustainability.
Objectives and goals
One of the aspects that the resort’s management team has identified being critical in its quest to attain competitiveness entails creating sufficient market awareness.
Consequently, the resort intends to develop a comprehensive marketing campaign. The campaign is aimed at attaining a number of financial and non-financial objectives as outlined below.
- To provide the resort’s owners with reasonable return on their investment. The firm intends to achieve this by increasing the firm’s sales revenue with a margin of 20% within one year after launching the marketing campaign.
- To continuously increase the resort’s growth in sales revenue during the summer and winter months and attain global market awareness in 3 years.
- To create new revenue opportunities by diversifying its source markets.
- To double the size of customer base within 5 years.
Segmentation, targeting and positioning
According to Jenkins and Pigram (2006) market segmentation is ranked amongst the most important strategic management concepts in marketing.
Segmentation entails dividing the entire market into small and distinct components depending on variables such as buyer characteristics and customer requirements (Havaldar, 2010). Market segmentation is very important in ensuring that a particular firm effectively addresses the target market needs.
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One of the ways through which market segmentation achieves this is by formulate effective marketing strategies. There are various variables that firms can use in the process of segmenting the market.
One category of variables includes demographic variables. Johnson, Scholes and Whittington (2008) define targeting to include the process of assessing the most optimal market segment to select.
Upon determining the segmentation and targeting strategies to be incorporated, it is fundamental for marketing managers to ensure that a clear and appropriate image with regard to the firm and its products or services is developed amongst consumers.
To achieve this, marketing managers are charged with the responsibility of ensuring that effective positioning strategies are incorporated. Johnson, Scholes and Whittington (2008) further define positioning as ‘the process of designing distinctive offerings and images for target markets’ (p. 261).
Over the past decade, Mallorca hotel industry has become very competitive. Intense competition is mainly evident in the 3-star sector. According to Buswell (2009), 55.2% of hotels in Mallorca were 3-star hotels. However, by 2008, the number of 3-star hotels had declined to 52.8%.
This shows that 3-star hotels have lost some ground. One of the factors that have led to decline in the number of 3-star hotels relates to emergence of 5-star hotels which have gained substantial publicity. However, their market share is relatively small (Buswell, 2009)
Considering the above changes in the hotel industry, it is important for the resorts’ management team to institute effective segmentation, targeting and positioning strategies.
To attain competitiveness, Resort All Inclusive has adopted demographic variables in segmenting the market. Segmentation will aid in determination of the most effective methods to incorporate in its marketing campaign. The firm segmented the market on the basis of social class.
The three main social class constructs that will be considered include lifestyle, income and occupation. To increase its profitability, Resort All Inclusive will target tourists, the business community and visiting business travellers in the Island.
The resort will also target high-end consumers who have a relatively high income and have incorporated leisure in their consumption process. To maximize sales revenue, the resort will target both domestic and international tourists.
To appeal to a large number of potential customers within the target customer groups, the resort has developed an effective positioning strategy. The positioning strategy entails differentiating the services provided thus increasing the probability of customers attaining exceptional experiences.
Exceptional value will be attained by incorporating the concept of value addition. The resort intends to position itself as a 3-star plus hotel that is strategically located and committed towards provision of differentiated services that will lead in customers feeling respected, appreciated and valued.
According to O’Quinn, Allen and Semenik (2009), advertising campaigns are fundamental components in firm’s effort to create awareness of their brand.
Resort All Inclusive; “Stay Resort All Inclusive, Go Everywhere”. “Go Chill”, “Go Foodie” and “Go Refresh”.
The firm appreciates the importance of incorporating an effective media plan in the advertising campaign. According to Drewniany and Jewler (2008), hoteliers should undertake an optimal selection of the media to use in the advertising campaign in order to achieve the intended objectives.
The campaign will be conducted through both traditional and emerging advertising mediums. Some of the traditional mediums used include posting the advertising message in travel magazines, business dailies and newspapers.
To appeal to customers, the firm posts the ad message and images on bill boards that are strategically located. The message is also conveyed to customers through television and radio adverts.
The adverts are also posted on the firm’s website and social media such as You Tube and Facebook in order to reach a large number of potential customers.
The media plan used by the firm has been very effective in attracting customers. This arises from the fact that it effectively communicates the unique quality of products and services offered at the hotel. By patronising the hotel, customers are guaranteed maximum satisfaction.
The satisfaction is derived from the wide range of products offered. Different foods and drinks that are prepared by qualified chefs are offered in the 3 restaurants in the resort. Consequently, customers’ tastes and preferences are taken into consideration.
The hotel rooms will be fitted with necessary technologies such as Wi-Fi, and free internet in order to cater the needs of business customers and tourists.
In effort to appeal to a large number of potential customers, Resort All Inclusive has also adopted use of video in its media plan. The firm posts videos and images of the hotel and the products provided on various mediums such as magazines newspapers, it official website, You Tube and Facebook.
Posting images and videos related to Resort All Inclusive products and services such as the sporting facilities, foods and drinks on the internet significantly influences the target customers in their decision making process.
The hotel room image below is one of the images posted on the firm’s website, Facebook and You Tube. This plays a significant role in attracting potential customers by appealing their emotion.
Public relations campaign
In addition to the ad campaign Resort All Inclusive is committed at developing a strong customer relationship. Gregory (2000) asserts that public relation campaigns are fundamental in developing customer relationship.
Considering the fact that the resort is located along the Mallorca Beach, the hotel hosts kite surfing events dubbed ‘Resort All Inclusive, Leisure with a difference”. The event is usually held during the summer and winter seasons.
The event is comprised of various surface water sports which include paragliding, windsurfing, extreme sports, gymnastics and wakeboarding. The event attracts different water sports fans within and without Mallorca. Additionally, the hotel also hosts other sports events such as football, table tennis and tennis.
Some of the celebrities that the events attract include Roger Federer and Rafa Nadal. The celebrities play an important role in endorsing the event. In the process of making their consumption decisions, consumers are influenced by celebrities.
This explains why Resort All Inclusive has appreciated the importance of endorsements of its products and services by renowned celebrities.
The event is very famous that it attracts both domestic and international sports journalists who cover the event. Consequently, the resort has been able to develop sufficient market awareness both domestically and internationally.
Upon introducing new products and services or improving the existing products, Resort All Inclusive conducts press conferences. The press conference is aimed at creating awareness to target customers regarding the new products and the improvement undertaken.
In the press conference, Resort All Inclusive explains the benefits that customers will derive by consuming the new products or services. Both domestic and international journalists are invited in order to create awareness to large number potential customers.
According to Marchand (2000), press conferences are an important element in firm’s promotional and public relations efforts.
To improve its effectiveness in developing a strong customer relationship, the resort also undertakes electronic public relations campaign. To achieve this, the firm has developed a Wiki and a Blog through it interacts with its customers.
These tools provide customers with an opportunity to communicate their opinion regarding the services provided by the firm.
On the other hand, Resort All Inclusive is able to clarify various issues that arise from the market. Consequently, Resort All Inclusive is able to access market sentiments hence undertaking the necessary product and service improvements.
Upon launching an advertising campaign and public relations campaign, the resort’s management team objective is for the campaign to run for one year. It is the objective of Resort All Inclusive management team that one year is sufficient to create the desired level of market awareness.
However, the firm is cognisant of the need to ensure that consumers are constantly informed. Consequently, the firm allocates a substantial amount of money in its budget for the campaign.
In this campaign, the firm has allocated $2 million to cater for the campaign. Despite the cost involved, the advertising campaign is very effective in enhancing the firm’s long term survival (O’Guinnn, 2009).
There is a high probability of Resort All Inclusive succeeding in attaining a substantial market share in the 3-star hotel industry in Mallorca. This arises from the fact that the firm is committed at creating sufficient market awareness.
The advertising and public relations campaign have been very effective in influencing the consumers in their decision making process.
From the analysis conducted, it is evident that Resort All Inclusive hotel is committed at increasing its sales revenue by undertaking a comprehensive advertising and public relations campaign.
The objective of the ad campaign adopted by the resort will enable the firm to continuously develop sufficient level of market awareness amongst the target customer groups.
The firm will derive its success from the effectiveness with which it creates market awareness. By adopting the above advertising campaign, there is likelihood that the resort will attract both domestic and foreign customers.
This arises from the fact that the resort will continuously appeal to its target customer groups hence influencing their purchase decisions. The use of traditional and emerging marketing communication mediums will create awareness to a large number of potential customers.
Consequently, the firm will increase its customer base. The public relations campaigns will improve the effectiveness with which the firm interacts with its customers. The sporting event attracts numerous sports athletes and fans hence improving the resorts publicity.
To determine the effectiveness of the advertising campaign, Resort All Inclusive undertakes continuous review of the campaign. The review aids Resort All Inclusive in the process of making the necessary adjustments hence improving its effectiveness.
Buswell, R. (2009). Mallorca and tourism. History, economy and environment. Mallorca: Channel View Publications.
Drewniany, B. & Jewler, J. (2008). Creative strategy in advertising. New York: Cengage.
Gregory, A. (2000). Planning and managing public relations campaign. New York: Kogan Page.
Havaldar, K. (2010). Business marketing: text and cases. New Delhi: Tata McGraw-Hill.
Jenkins, J. & Pigram, J. (2006). Encyclopaedia of leisure and outdoor recreation. New York: Routledge.
Johnson, G., Scholes, K. & Whittington, R. (2008). Exploring corporate strategy: Text and cases. London: Prentice Hall.
Kazmi, A. (2008). Strategic management and business policy. New Delhi: Tata McGraw Hill Education.
Marchand, D. (2000). Competing with information. New York: John Wiley and Sons.
O’Guinnn, T., Allen, C. & Semenik, R. (2009). Advertising and integrated brand promotion. Mason, OH: Cengage.