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MBA Marketing Management

Marketing Assignment
M&S Motels Corporation
LAARABI SIHAME

CONTENTS

Table des matires


INTRODUCTION....................................................................................................... 4
COMPETETIVE PRODUCTS and USP:.......................................................................5
M&S MOTELS CORPORATION.................................................................................. 8
MARKETING ANALYSIS............................................................................................ 9
The marketing toolkit:......................................................................................... 9
The product/ service:........................................................................................... 9
Place:................................................................................................................ 10
Price:................................................................................................................. 10
Promotion:......................................................................................................... 10
ENVIRONMENT ANALYSIS:..................................................................................... 12
Macro Environment Factors:.............................................................................. 12
Micro Environmental Factors:............................................................................ 13
SWOT ANALYSIS.................................................................................................... 14
Strength:........................................................................................................... 14
Weakness :........................................................................................................ 14
Opportunities:................................................................................................... 15
Threats:............................................................................................................. 15
Suggestions:...................................................................................................... 15
INDUSTRY ATTRACTIVENESS ANALYSIS (5FORCES)...............................................16
Competitive Rivalry:.......................................................................................... 16
Bargaining Power of Suppliers:..........................................................................16
Bargaining Power of Customers:.......................................................................16
Threat of New Entrants:.................................................................................... 16
Threats of Substitute Products/Services:...........................................................17
PROJECTIONS AND COCLUSION............................................................................ 18
Sales Forecast:.................................................................................................. 18
Competitiveness and growth:............................................................................18
REFERENCES........................................................................................................ 19

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ABSTRACT
This paper is a marketing project that is going to talk about M&S
Motels Corporation, starting from the competitive products in the
market, marketing analysis, environmental analysis, SWOT, and the
five forces analysis, to the conclusion, describing and explaining what
distinguish this product/service from the other services, and what
makes it unique in Morocco

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INTRODUCTION
The word Tourism is defined as The temporary short-term
movement of people to destinations outside the places where they normally
live and work, and activities during their stay at these destinations; it
includes movement for all purposes, as well as day visits or excursions.
(Holloway, 1987, p.2 and 3)

It also can be analyzed considering some of the published


descriptions and definitions, which Tourism has a connotation of
leisure travel and tends to be synonymous with holidays (vacations).
This is also reflected in dictionaries, which commonly refer to tourism as
travel for pleasure. business usage, the language of those who earn their
living from serving tourists; most of them see tourism in terms of the
products they sell and the markets they serve. (Medlik, 2003, p.vii)

Morocco is one of the rare Arab countries that dont have oil and
gas resources; Moroccos economy is mainly based on agriculture and
industry. Indeed, these two sectors cannot constantly provide the
Moroccan government with needed and expected incomes; besides,
they are unable to solve Moroccos crucial social and economic
problems such as unemployment and poverty. The countrys strategic
geographical situation and unique natural assets encourage the whole
society to see tourism as the future economic sector that society can
rely on. Consequently, the government sacrifices a great budget and
energy to develop tourism.
The society is making much effort on strengthening the touristic
side of Morocco by working on a new strategic activity of vision 2020
that it aims to get Morocco into the worlds top twenty destinations
and a model of sustainability in the Mediterranean destinations.
Since Morocco is working on a step forward in tourism, motels
would surely be needed in a country that is willing to receive a big
number

of

international

and

domestic

tourists,

M&S

motels

Corporation, decided to build a number of motels in different areas

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around the country, so that travelers, will find a place to stay in


anytime anywhere they in need of one.

COMPETETIVE PRODUCTS and USP:

Relais Ras El Maa Motel

1. Motel relais Ras El Maa :


It is a three star motel, situated in Ifrane city, actually its considered
more as a hotel than a motel, has forty-one rooms including four suits,
the dcor is likely to be a Moroccan classic style, and all rooms are
equipped with hot water, flat screen TV, heating and wifi. Moroccan
salon, laundry service, mosque, lounge, and free parking.
Most of the visitors like it because its not far from downtown, good
reception, not so expensive, calm and clean even though it doesnt
have a restaurant.

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2. Rif Motel:

Rif Motel

It is 4km away from the center of Ouezzane city, allow its visitors to
rest under a green area characterized by the beauty of the landscape
and the serenity of the countryside. The Motel has a Rif infrastructure,
[] twelve rooms that have windows on either the pool or the
surrounding hills, 4 air conditioned apartments for large families or
groups who prefer to have the opportunity to cook and have the
comfort of a home, a caf-restaurant offering drinks and Moroccan
dishes from organic products of high quality and at reasonable
prices; a swimming pool; Prolonged outdoor terrace with a space of
500 m2 around the pool, a spacious parking that can accommodate
several cars and even coaches.
The visitors are not all satisfied with this motel, but most of them found
it simple, calm, since its encountered with green areas, along with the
tasty Moroccan dishes.

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Riad Soleil Bleu B&B, (Boulmane Dades)

3. Riad Bleu Ciel Bed & Breakfast ( Boulmane Dades):


5 km away from Boulmane mosque, it has a restaurant, outdoor
pool, gym, free transfer service from the station, among other benefits,
there is a lounge bar, a snack bar / deli, and coffee / tea in the lobby.
Reception is open 24 hours, and the total number of rooms, 17, is
provided with free wifi.

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M&S MOTELS CORPORATION


M&S is a Moroccan company that builds motels, and decided to make
motels in all Moroccan cities, starting with touristic one. The target
customers are families, couples, and friends, local and foreign visitors.
The motel will be designed as follows:
The outside of building will be with white and red painting, with the
big letters of the name of the motel on top of building.
The look of the motel from the above have the shape of an S
Big elevator for five floors, each one has eight spacious rooms, well

equipped and designed


Restaurant in the wide yard serving Moroccan and international food
The gym and the covered pool are very well equipped
The mechanic garage is right next to the motel
The parking can have more than fifty big cars
Cameras in the reception, restaurant, and in the parking for more

security
A playroom will be there too for kids, well chosen games for the
safety of children

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MARKETING ANALYSIS
The marketing toolkit:
The product/ service:
Every day, thousands of people travel, either for business, paying a
visit to someone or just for the pleasure of traveling and discovering
new areas in their country; but sometimes it happens to be a very long
way to get their destination, thats why M&S motels Corporation is
planning to build motels in Morocco for the good of travelers, to get a
rest from driving, and enjoying the luxury service in our motels.
There are many features that make M&S special:
All visitors will have a free car check/ repair, in case damage
happened to the car while traveling, noticed or not, our
mechanic experts will take care of it for free.
All rooms are well arranged and equipped with superior quality
carpets and luxurious furniture and fittings; and provided with
wifi, smart TVs, hot water, air conditioner, and wide windows
for a beautiful view.
There will be no suites or VIP rooms, so customers will be
having the same service quality.
People who will work in the motel will be chosen carefully
according to their high experience
A big covered pool, so visitors will have the ability to swim
even if the weathers not so good
A gym for customers who like to stay in shape in holidays
Our motel will take care of laundry
The motel have its own restaurant, offers international food,
and the breakfast is for free, also in Ramadan days, there will

be reductions in breakfast meals


Pets are allowed
Free parking
Security cameras 24/24 h
A playroom for kids to have fun
M&S will be the name of the motels
And it will be the first company in Morocco that makes motels
that fits the definition of the word

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Place:

Since most of people who come to motels are drivers/travelers, M&S


motels will be situated mainly near to roadways, surrounded with wide
forest, for a beautiful view
A big board well lightened will be in front of the motel with its name on
it so it can be seen.
The first M&S motel will be in one of the Moroccan touristic cities, like:
Casablanca, Marrakech, or Agadir. Then start openings in other large
and small cities beginning with ones who have a high rank of either
local or foreign tourists.
Competitors usually write the name on the motel itself, but M&S is
having it on both, the motel and the big board.

Price:

Motels didnt really exist in Morocco before M&S Motels Corporation


decided to build them, so the strategy of pricing that the company is
going to use, is simply starting with low prices to get the customers
attention, then increase them
Compared to competitors, the prices will be lower, since M&S will be
offering many reductions, and free services.

Promotion:

The promotion of the motels will be wide, beginning with big boards
with a picture of the motel and its name M&S, the phone number
of its according to the city where it is situated, so each city will have
its own phone number, and the website of the company

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Another way to promote for M&S is in TV commercials, no longer


than a short publicity of 20 seconds, a celebrity model will express
their satisfaction about M&S showing the high quality, the luxurious
dcor, the good service that M&S offers, and the addresses where
motels are situated will be at the end of the commercial.
Creating a website for M&S is a very important step in promoting,
since itll have more details about the motels, and so that people
can reserve online.
Visitors will also have the ability to contact with M&S and ask them
about anything they want through our Facebook page that should
be very responsive and helpful.
The best time to start the promotion is in autumn; its the time
when people start thinking about traveling and visiting new places,
especially for local guests. The promotion will still be going until the
end of summer.

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ENVIRONMENT ANALYSIS:
Macro Environment Factors:
Demographic forces: The product/ Service, M&S is offering is
mainly directed to people who like traveling, either tourists or
local guests; that makes the market segment wide.
Small families, couples, friends, or even people who prefer to
enjoy life alone, will find M&S motels very comfortable and
relaxing to stay in.
Economic factors: Compared with hotels or Riads, M&S
motels prices are very suitable, in addition to the free
services the motel is offering, no doubt that customers will be
very happy with it.
Social and Cultural forces: it is possible that Morocco is
substituting motels by Riads, but they are actually expensive,
thats why motels should be in Morocco. M&S motels will solve
the equation by offering a mixture between all what is
Moroccan and international, so that all visitors, either local or
tourists will feel comfortable while being in M&S Motels.
Natural/Physical forces: the spots where M&s Motels will be
situated are mostly surrounded with green spaces, different
kind of trees, and beautiful gardens full of diverse flowers and
herbs.
The M&S motels will also have a specialist in agriculture to
make sure of the gardens and natures are not affected by any
kind of pollution.

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Micro Environmental Factors:


The Suppliers:
Suppliers can affect profit and reputation, thats why it is a
must to maintain a good relationship with them. M&S
suppliers are few, since it pays more attention to labor and
experienced trained labor.
The other suppliers of M&S are: Iking furniture, eco-nat
beauty for cosmetic products, ONE coffee.
The fewer the suppliers are, in the hotels industry, the more
power the owners have on their hotel/motel.
Customers:
M&S offers a variety of services such as, the covered pool,
the gym, the international cuisine, and more facilities for
general public; therefore, M&S target customers would be
families, friends, couples, and individuals looking for weekend
break, tourism, business travel, or even travelers who want to
get a rest and go by next day.
Competitors:
M&S motels have many factors that make it difficult to
competitors to enter the market and compete without beating
M&S prices and special services, like the car check and repair
by professionals that is offered for free to any costumer with
a car, the gym, the covered pool, the luxury furniture, and the
special restaurant that makes all international foods
Media Publics:
M&S Motels is the main source of information for public to
access, since it allows them to have an idea about motels,
prices, services, addresses, and phone numbers of motels. It
also gives them the ability to comment or ask about any
information needed, and the staff will be happy to answer the
comments and answers.

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SWOT ANALYSIS
Strength:
As its been mentioned many times before, motels will
be existing in Morocco for the first time, and this is an
advantage for M&S Motels Corporation
M&S Motels are offering a very good service based on
hiring highly experienced people, who will take care of
the customers and make sure they feel completely
happy about the service
The prices M&S have are very suitable, plus the services
that are offered for free, like the cars check/ repair, the
laundry service, and parking
The factors that make M&S Motels special, and a good
place to enjoy are many, amongst them: the high quality
of service, the fact that motels will be in Morocco for the
first time, the access to gym and the covered pool, the
beautiful view of the landscape around it , large family
style rooms
The existence of international restaurant
Weakness:

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Things that can be improved in M&S Motels are:


Add more rooms for VIP
Build other motels near the beaches
Have special babysitters so that parents enjoy more
Things M&S should avoid are:
Increasing prices to become very expensive
Over offering free services
Losing the customers trust

Opportunities:
The large space around M&S motels, that allows it to
expand more, and add more attractive leisure items like
playgrounds, and other sports field
The possibility to add more rooms
Customers have the ability to comment about the motel
using the website of M&S Motels Corporation, and
changes might happen according to the comments

Threats:
M&S Motels might face several threats:
If new motels will be built, there

will

be

more

competitiveness
If customers dont like the increase of prices
The competitiveness between M&S motels and Moroccan
Riads

Suggestions:
To improve the quality of M&S Motels, the light should be shed
on the weakness and threats that might be an obstacle in the
successful of the project.
When new motels are built, the way M&S promotes to
the Motels will have to do better to attract

customers
The prices should increase slightly and only during

summer
The free services will be offered only to the first 100

visitors
VIP rooms and suites should be added
Customers should pay for membership to get access to
the gym and the pool

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more

INDUSTRY ATTRACTIVENESS ANALYSIS (5FORCES)


Competitive Rivalry:
As it been mentioned before, M&S Motels Corporation is the
first company to build motels in Morocco, which means that
there are no competitors when it comes to motels, but there
are Riads that can be considered as competitors since they are
much known in Morocco.
What distinguish between M&S motels and Riads is that Riads
pay more attention to traditions, and all what is Moroccan,
when M&S motels care more about being international, and
adaptable
Bargaining Power of Suppliers:
[]hotels are not significantly subject to the bargaining
power of their suppliers and suffer low levels of indirect
pressure on their competitiveness from this source David S.Y
Cheng. However, the only supplier that can exercise power
over M&S Motels Corporation or any other company would be
experienced trained personnel and labor.
Bargaining Power of Customers:
Customers or buyers have a very powerful ability to control
pricing, as well as the industrys margin, according to their
needs for a higher quality products and services.
In the case of M&S motels, customers can use their bargaining
power only if the prices increased, since the owners of M&S
motels will always make sure that the quality of services and
restoration is high, and make all efforts for the comfort of the
customers
Threat of New Entrants:
The motels industry is essentially influenced by tourism and
travel, and for M&S, it has the possibility to enter the industry
starting by opening one motel in one of the big and known
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cities of Morocco, as Casablanca, Marrakech, or Agadir; then


analyze how it will work.
Competitors will not find it easy to join the motels industry,
since as soon as M&S will analyze the growth and profit of the
first motel, other M&S motels will start opening in other cities,
focusing on the ones which have important percentages of
local and general tourists.
Threats of Substitute Products/Services:

Substitute products can be existing or potential products and


services which are able to perform the same function.
Substitute products can reduce costs, and/or provide better
quality performance and better value which very often the
result of technological innovation Michael Porter (1980)
In Morocco, what can substitute M&S motels apart from Hotels
are Riads, because tourists tend to go more to Riads since they
still represent the traditional Moroccan touch. However, prices
are high compared to M&S, which makes M&S the threat of
substitute to Riads

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PROJECTIONS AND COCLUSION


Sales Forecast:
Prices are expected to rise on average over the next months as the
business can command higher prices from customers, and the free
services are changeable according to the number of customers and
between the opening period and normal days
The pricing will start between 299DH to 399DH per night, to an average of
between 449DH to 549 DH
Sales are projected to rise towards full capacity (40 rooms x 365 nights per
year = 14,600 room nights) but not reach more than 80% of this number.
This is due to the fact that it is in the best interest of the motel to not
discount rooms so highly that they are all used at all times. Off-peak times
will be slower, but the motel will maintain its premium-level pricing for the
most part through this method.
Competitiveness and growth:
According to the analysis of the Porters Five Forces and SWOT, there
should be strategic framework to overcome the weaknesses and
minimize the threats of the external factors while promoting and
augmenting the strengths and taking advantage of the opportunities in
the external environment.
More efforts should be done to strengthen and empower M&S Motels,
because it have to be special and distinguished from hotels and Riads
that are the main competitors in the Hotel/Motel industry of Morocco.

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