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The business plan shows how feasible a new hotel can benefit the hotel market and customer satisfaction via strategy, research, and execution of promotion. The hotel will be placed within Weston-Super-Mare due to the amount of visitors it receives every year, and creating a deal with the local theatres, allowing those who are staying at the hotel will receive discount on theatre tickets, which could consist of up to 50% discount. This is to give a serious competitive advantage over the competition, to develop further to retain consumers, and will benefit by getting known, and will eventually increase profitability.
"A 5 per cent increase in customer retention could result in increased profitability of between 25 - 95 per cent" (Reicheld, 1996). This is about having a focus strategy on consumers, once developed, then other developments and strategies, would occur to strengthen the business further. Critically review the hotel industry, apply strategies, to research and listen to consumer's needs and wants. This would have a specific focus on retaining consumers, and providing a strategy of overcoming predicted challenges and to develop realistic financial assumptions and financial plans.
The business is to be a new medium size hotel of modern services and facilities. The design of the hotel is to have 60 rooms, reception, waiting lounge, one restaurant, two function rooms, two state of the art conference rooms, one bar, and an indoor swimming pool with a gym. The other side of the business is also having links with the local theatres and as a promotion, those of which stay with us can get tickets to see different shows at half price.
The hotel industry is worth just over $30 billion within the UK and has been on the up since 2003.
Majority of the people who stay within the hotels is domestic tourists. According to Data Monitor (2007) "The UK hotels and motels industry generated total revenues of $34. 1 in 2007, this representing a compound annual growth rate (CAGR) of 5. 7% for the period spanning 2003-2007". Under the market research conducted 54% of the people asked would stay at a hotel with the offer of 50% per cent discount on theatre tickets, , this shows there is a market and a need for this kind of business as being innovating and new. Two types of research will be conducted.
A qualitative and quantitative approach. This will build a foundation and gain an in-depth study of consumer's needs and wants for the business. According to Gummesson (2000) "an organisation acts in the reality and consists of people". This suggests when gaining a study of consumer's needs and wants the business needs to see that people are not just statistics but also they are the ones whose information, can help change the operation of the business in real-time. The two forms of research is Interviews and questionnaires.
Research helps to give a variable, and variety of sources to analyse, helping the decision process. "Research is the systematic and objective process of gathering, recording and analysing data for aid in making business decisions" (Zekmund, 1991). "It is essential to have a clear understanding of the philosophical basis for the research strategy selected and this helps to provide the researcher with clarification, focus and consistency of research design.... this will be dependent on the research design and the types of evidence we collect" (Hines, 2000).
Questionnaires and interviews are effective because "Studies depended on interviews and questionnaires for their data ..... Using questionnaires and interviews obtained statements about opinions and feelings..... Interview behaviour is a form of social interaction and should be analysed accordingly. Verbal data has been made the keystone of contemporary social science" (Foddy, 1996) Interviews and questionnaires are highly relevant because it will help identify, if the business will be viable and this type of research is non-expensive.
"Small firms can benefit from low cost qualitative market research techniques to determine achievable advantageous marketing strategies" (Goodman, 1999). Confidentiality of data is important; ensuring persons taking part are aware of what the project is. "Researchers have a moral obligation to maintain the confidentiality of the data. In this respect the anonymity of the respondent is crucial and should be respected, by the researchers prior to the collection of the data" (McKenna, 2006).
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