Hotel and Motel Marketing Plan

Marketing Vision
The Drowzey Hotel is Somnigstad's premier luxury hotel and seeks nothing less than to
transport visitors to a high-end cosmopolitan hotel setting, unlike anything that can be
found in Somnigstad or elsewhere in the state. Luxury, aesthetics, and customer service
(our customers are royalty here) are the hallmarks of the Drowzey Hotel.

Goals

Personal Goals (for CEO):

Speak or take part in a panel at American Hotel and Lodging Association

conference in 2012
Be asked to speak at more than 10 events in 2012

Business Goals:

Total annual revenue to exceed $10 million in 2011 and $11.5 million in 2012
Average $ per customer transaction to exceed $1,800 in 2012
Exceed 20,000 leads in 2011

Strategic Goals:

To obtain a 99% "highly satisfactory" or higher rating on customer surveys

To achieve Forbes five-star rating by 2012

Tactical Goals:

Hire new blog editor in 2010

Hire new PR agency in 2010
Target 10,000 individuals per year with direct mail
Hold 3 focus groups in 2010, 6 in 2011, 10 in 2012

Purpose

This marketing plan will be the blueprint of Drowzey Hotel's establishment as a five-
star hotel that goes beyond meeting customer expectations. Even with the highest
customer service and amenities, Forbes will only grant a five-star rating after a number of
years of consistent service. The Drowzey Hotel will devote itself to this consistency as
well as finding new ways to surprise visitors with its hospitality in order to create
experiences that are worth much more than its wealthy clientele pay for them. The
Drowzey Hotel believes that luxury must be a bit pleasantly unpredictable to be truly
rewarding.

Picture

A visitor to the Drowzey Hotel expects a beautiful, high-end boutique hotel from the
images they have seen online and what they have read about it. However, they are
impressed from the beginning by the attentiveness of staff, including their almost
constant question of "Is there anything else I can do to make your stay better?"

At first, the visitor has no answer to this question, but as he or she comes up with ideas
they discover that the staff find a way to attend to them, even when they seem to be
difficult tasks. Beyond this high level of customer service, the visitor finds a delightful
gift in their room each evening of the stay. Finally, without even asking for it, the
concierge offers to make reservations for the visitor and their colleagues at the restaurant
he or she had previously found to be booked up. Guests leave the Drowzey Hotel with the
notion that the staff and management wield some kind of magic.

Gap Dashboard

The Gap Dashboard reflects the company's goals and CEO's personal goals which can be
measured quantitatively. Once a month, the Gap Dashboard will be updated and reviewed
in a marketing meeting between the CEO and Marketing Manager, along with details on
gaps between the numbers. The two will examine both shortfalls and successes beyond
plans in order to look at whether goals should be escalated.

Gap Dashboard
Year 1 Year 2 Year 3
Personal
Speaking engagement requests 5 8 10
Other 0 0 0

Business
Revenue $7,907,041 $10,175,183 $11,509,551
$ Per Customer Transaction $1,252 $1,693 $1,863
Leads 15,917 21,550 22,628

Tactical
Individuals targeted by direct mail 10,000 10,000 10,000
Focus Groups 3 6 10

Strategic
Customer satisfaction level at highly satisfactory 90% 96% 99%
Forbes Star Rating 4 4 5

Ideal Customer
Whether visiting Somnigstad for business or pleasure, some travelers are not satisfied
with the predictability of chain hotels or the quaint charm (and unpredictability) of inns
and bed and breakfasts. This ideal customer earns and has earned a great deal of money in
his or her life and can afford the best any city has to offer. When traveling, this customer
feels it is important to have new experiences which demonstrate the status he or she has
achieved in life. Furthermore, if this customer misses such an experience he will judge
that he has lost something, even if no one else knows.

The type of lodging this customer desires is extremely comfortable, aesthetically

beautiful, and features services which go above and beyond a four star hotel's offering.
Room service, a full bathtub, fitness center, and Internet access are all prerequisites for
this traveler. Their hotel of choice needs to offer a surprising level of luxury.

Market Description

The target market for the Drowzey Hotel share most of the following characteristics:

Ages 35 to 60
Visiting Somnigstad from a large American city or Europe
Professional career, income over $100,000 or net worth over $1 million
Believe that experiences are as valuable as, if not more valuable than, material
things
Feel entitled to luxurious experiences due to their success and hard work
Guard their free time jealously

Remarkable Difference
The Drowzey Hotel demonstrates its difference by finding ways to surprise their visitors
with the hotel's luxury. The hotel will go beyond the normal amenities common to a five-
star hotel designation by indulging the whims of visitors through their concierge service
and room service, and by anticipating the needs of visitors. The core message of the
Drowzey Hotel is "Luxury that will surprise you."

Differentiators

The Drowzey Hotel is differentiated from other high-end hotels of Somnigstad through
its focus on luxury, rather than Southern charm. However, this differentiation can be
imitated over time. To keep a competitive advantage, the Drowzey Hotel focuses on an
ever-evolving suite of services. These include:

Room service which includes an extensive menu as well as products of all types
that can be bought in Somnigstad or ordered
Concierge service which can offer exclusive experiences to visitors or indulge
their whims on short notice
 Surprise gifts each day of the stay tailored to an individual's interests, such as
food items, candy, or books

Core Strategy
The core strategy of Drowzey Hotel's marketing is to project both its opulence and
unwavering dedication to its mission or surprising visitors with its luxury. Internally, staff
will be drilled with this mission so that they understand that excellent service is the
highest art and not a lowly pursuit. Staff will be directed to seek out new ways to surprise
and excite visitors. Staff training, covered within the marketing training section, will help
staff understand this concept, although new hires will be chosen with an eye towards
creativity as well as work ethic.

Measurable results that will show that the business is achieving its goal will include
customer ratings and customer reviews, press and industry reviews of the hotel, and the
hotel's ability to maintain its level of pricing even in difficult economic climates.

Core Branding Elements

Drowzey Hotel has cultivated and will continue to cultivate a brand image associated
with dark, rich colors, punctuated by the dazzling brilliance of gold, lights, and mirrors.
On its website and in marketing materials, these colors will be a rich purple and rich gold.

The company has used and will continue to use a professional photographer to capture
images of the hotel, its rooms and willing visitors (or actors) taking advantage of its
services.

The core message of "luxury that will surprise you" also serves as the tagline on all
marketing materials and printed materials. This tagline must be added to new business
cards as they are printed.

Product/Service Innovation
The Drowzey Hotel seeks to convert individuals up the pyramid by offering them
services along the way.

Suspects (those who the Drowzey Hotel targets as they fit the target market well) will be
offered a guided virtual tour of the hotel by a live hotel employee.

Prospects (those who visit the Drowzey Hotel website or call or email to express interest)
will, when appropriate, be offered smaller rooms at the lower end of the price spectrum
so that they feel a lesser commitment when they come to stay.

Customers (those who have visited the hotel once) will be offered package deals for
multiple night stays, such as one night free after a three night stay.
Premium customers (those who have stayed at the hotel more than once) will be offered
access to the penthouse suite, an option that cannot be purchased by those who have only
stayed at the hotel once.

Champions (those who have stayed at the hotel more than twice) will be invited for a free
weekend if they take part in a focus group session to discuss the hotel.

Beyond the room offerings, a wide range of additional services and amenities will be
offered, some with extra charge and some free with room rental. These include:

In-room dining
Concierge service
Complimentary gourmet continental breakfast and coffee
Fitness center
Indoor lap pool
Valet parking
Bag service
Business center (with reservation and additional fee)
Wireless internet (free throughout the hotel)
Restaurant and lounge
Board and meeting rooms (with reservation and additional fee)

All of these services and amenities are available to all visitors at the Drowzey Hotel.

Price Rationale

The rooms offered include the following:

Queen ($200-$400/night)
King ($250-$450)
Deluxe King ($300-$500)
Extra Deluxe King ($350-$550)
Emperor ($400-$500)
One Bedroom Suite ($500-$700)
Presidential Suite ($600-$800)
Hospitality Suite ($700-$900)
Penthouse Suite ($900-$1100)

The price ranges reflect the difference between peak and off-peak times of the year and
week. This pricing model is similar to most hotels. The pricing is at the top for lodging
options in Somnigstad, but this is consistent with the fact that the Drowzey Hotel offers
rooms to those who want something they cannot find anywhere else in Somnigstad.

Marketing Materials
Drowzey Hotel uses a professional photographer and design firm to produce the
following materials:

Website
Email newsletters
Direct mail - postcards and letters
Newspaper and magazine ads
Virtual tour presentation
Marketing kit for corporate business development

The marketing kit will be customized towards pleasure travelers and business travelers by
having separate sets of images, lists of services, case studies, and testimonials.

The virtual tour will also be customized towards pleasure or business travel based on the
interest of the prospect. The virtual tour will be scripted, although it will include room for
interaction between the prospect and the tour guide as well as time for questions to be
answered.

Web Plan
The Drowzey Hotel website is designed to offer an intimate look into the hotel and to
guide visitors towards two potential next steps:

To set an appointment for a virtual tour (for corporate or private prospects)

To reserve rooms at the hotel (for private prospects)

To these ends, the website is designed to answer all of the key questions which visitors
would have about the rates, services, location, etc. of the hotel so that they are
comfortable (and enticed) to visit.

The website reservation system is designed to make reservations a simple and quick
process. A confirmation email and personalized thank you note will be sent to everyone
who makes an online reservation, along with an offer to speak directly to a customer
service rep at the Drowzey Hotel should they have any questions or specific requests for
their stay. The goal of this procedure is to show the prospect the individualized care taken
by the Drowzey Hotel with every customer. Furthermore, it is an attempt to cut down on
the number of customers who cancel their reservation before visiting the hotel.

Social Media Plan

A company blog (called "Surprising Luxury") will include the content from the periodic
email newsletter about the meaning of luxury and hospitality, going beyond specific
stories about the Drowzey Hotel to include ideas from all over the world and history. The
editor responsible for this blog will seek out other content providers online which cover
luxury services and luxury hotels. These sites will be asked to either syndicate
the Drowzey Hotel blog or link to it in order to advertise its presence on the Web. The
goal of the company blog will be to establish a reputation for the hotel's management as
experts on luxury service. In addition to the posts which are sent out in the email
newsletter, the blog will be updated every other day with some information relevant to
the topic.

Lead Generation Plan

Lead generation will be through a number of means including:

National magazine and newspaper advertising

Online pay-per-click advertising around "hotel Somnigstad" and related keywords
Customer referral program
Professional referral discount offers
Direct mail campaign to target market of high net-worth individuals in U.S. cities
(5,000 individuals will be targeted with mailings, varying between postcards and
letters, once a month for 6 months before switching to a new set of 5,000 names)

The leads generated will be tracked in a professional hotel Customer Relationship

Management program which can export information for mail merge purposes and import
information from Internet entries. The program will track basic contact information, the
source of the lead, the date of the lead, and any information from the online inquiry form,
if used. The CRM system will also have fields for customer service including notes about
additional services requested and provided, likes and dislikes of the customer, other
personal information gleaned from conversation or observation.

Advertising

Media Tracking Kits Requested

Contact Total
Advertising Medium Contact # Distribution Cost/Ad
Name CPM
333-444-
Luxury Travel magazine O. Dyssius TBA TBA TBA
5555
Travel and Leisure 541-541-
L. Gulliver TBA TBA TBA
magazine 5411
666-666-
NY Times Travel section M. Polo TBA TBA TBA
6667
123-456-
Online pay-per-click U. Herz TBA TBA TBA
7890
Referrals

Drowzey Hotel strategy will lend itself well to referral marketing. To specifically request
referrals from customers, the Drowzey Hotel will offer to send visitors introductory
discount offers by email or postal mail to any number of contacts provided by the visitor.
This offer will be sent by email to past customers two days after their visit. By entering a
list of email addresses or by providing mailing addresses, the hotel staff will send on
these discounts noting who they are coming from. This will be a way for customers to
advertise the fact that they have used the hotel and to share it with business and personal
contacts, hopefully building those relationships in the process.

Professional referrals will be sought from Fortune 500 businesses with offices in
Somnigstad, the Somnigstad and state tourism boards, convention centers and meeting
halls. These referrals will be sought through personal contact with these businesses by
Drowzey Hotel business development staff and through mailing of the marketing kit and
referral offer. Repeated touches with the specific contacts at these businesses will be
continued through postcard and letter mailings, each making specific reference to the
referral discount offer and the additional value which Drowzey Hotel can offer their
clientele, visitors and employees.

Lead Conversion Plan

Prospects (those who have expressed interest in the Drowzey Hotel through some means
but have not yet visited the hotel) will be cultivated through the following means:

Offered a virtual tour of the hotel at a convenient time for the prospect. The tour
will focus on the beauty of the hotel, the high level of service offered, and the
business and/or tourist attractions in Somnigstad and the surrounding area. An
introductory offer will be given at the end of the tour.
Directed to the website for detailed information on room rates, making
reservations, policies, services, etc.
Email newsletter - send once a month with information on Somnigstad events and
tourism, new services at the hotel, a column on the meaning of luxury, and the
introductory offers/virtual tour offer.
Those who have taken advantage of the virtual tour will also be sent a mailed
introductory discount offer every other month.

Service Experience
Customer loyalty is won systematically at the Drowzey Hotel by careful attention to
assuring the quality of all services and to going beyond those basics to offer a customized
surprise for each customer. Loyal customers will be treated to free stays when they attend
a focus group for the purpose of learning more about them, leveraging their excitement to
further excite newer customers, and to develop ideas to improve the hotel and its services.
Loyalty Product/Service Offerings

Loyal clients (called "champions") will be offered a free two-night stay from time to time
if the individual agrees to take part in a three-hour focus group along with two to three
first-time customers. This focus group will feature a gourmet lunch and will include a
moderated discussion of questions about what the hotel is doing right, what customers
like about the hotel, and where it can improve. The point of these focus groups are to
engage champions, who can be expected to have highly favorable opinions of the
Drowzey Hotel, to share their excitement with first-timers who have the potential to
become champions themselves.

These focus groups will be held three times in the next year, six times in the second year
and ten times in the third year. First-time customers who take part (75% of the group)
will be offered the free lunch and another complimentary service (such as limousine
service, tickets to a show, etc.) for taking part. These focus groups will occur during dates
which are already booked by the champion, who will be given a refund for two nights of
the stay if they take part. First-time customers who are at the hotel at that time will be
enlisted to take part.

WOW Process

Quality assurance is paramount to the success of the Drowzey Hotel. The following
processes and practices are part of the quality assurance system:

Customers are to be asked if anything can make their stay better every time they
speak with a staff member. Signs at reception declare that if an employee fails to
ask the customer this question and to take steps to help them that they should call
manager for help and a complimentary service.
Employees who are reported by customers to have failed to provide some needed
help more than once will be put on probation and given a one month period to
rectify the problem. It is not expected that this will happen and if it does, it is
expected that the employee will be fired or quit on their own in most cases.
Employees that are favorably mentioned specifically in customer reviews more
than three times in a quarter will be rewarded with an additional quarterly bonus
equal to 10% of their salary for that period.
The customer will be requested to fill out a customer feedback survey upon
check-out. The form is a short, five question survey which the customer can
complete while waiting at check-out. There will be a follow-up 2 days after
check-out to discuss any issues or to receive clarification on answers, if needed.
All staff members will be provided with written guidelines pertaining to the
cleanliness and preparation of all rooms and spaces, all interactions with
customers, and all services provided. These guidelines will be revisited regularly
and updates to the guide produced when necessary.

Going beyond quality assurance to offer a true WOW to customers requires encouraging
all staff to think beyond the written guidelines and to seek to understand the needs of
customers more deeply. The hotel's concierges will be directed to find a specific way to
surprise each client during their visit. The concierge staff will ask key questions
about each customer's interests during the initial check-in process and using past
information collected in the CRM database. The most creative and best reviewed
surprises will lead to additional bonuses for concierge staff, based on the discretion of the
customer service manager. An example would be to set up a horseback riding lesson for
the daughter of a customer after overhearing her interest in going on a horse-drawn
carriage ride.

Marketing Calendar
The marketing calendar includes both ongoing marketing activities which will become a
routine (represented by the "marketing themes" of each month shown on the monthly
schedule) and one-time development activities over the next year shown on the
Milestones table.

The marketing manager works with an outside advertising firm, PPC firm, PR agency,
blog editor, and other service providers as needed to implement all marketing activities.
The marketing manager will spend at least one hour a day on the marketing "theme" of
the month to ensure that these major systems are reviewed every year.

The marketing manager will also track marketing results on a weekly basis to judge key
metrics against actual outcomes. Gaps will be shown in an Excel spreadsheet which pulls
the actual results from the database.

Monthly
Months Marketing Theme
1 Customer referral program
2 Focus group program
3 Blog and email newsletters
4 Surprise ideas and system
5 Marketing kit
6 Website
7 Business development and referrals
8 Customer feedback and ratings
9 Marketing training
10 Surprise ideas and system
11 Virtual tour
12 Annual review and goal setting
Milestones

Advertising Start Date End Date Budget Manager Implemented by

Marketing
New print ad design 2/1/2010 2/28/2010 $2,000 Ad firm
Mgr
Marketing
Start running new print ads 3/15/2010 4/15/2010 $0 Ad firm
Mgr
Marketing
Pay-per-click campaign revision 1/15/2010 1/31/2010 $1,000 PPC company
Mgr
Total Advertising Budget $3,000
PR Start Date End Date Budget Manager Implemented by
Marketing
Hire new PR agency 2/1/2010 3/31/2010 $0 Marketing Mgr
Mgr
Marketing
Renew press contact list 4/15/2010 4/30/2010 $2,000 PR agency
Mgr
Total PR Budget $2,000
Direct Marketing Start Date End Date Budget Manager Implemented by
Marketing
Design postcard mailing template 3/15/2010 3/31/2010 $2,000 Ad firm
Mgr
Marketing
Design letter mailing template 4/15/2010 4/30/2010 $2,000 Ad firm
Mgr
Total Direct Marketing Budget $4,000
Web Development Start Date End Date Budget Manager Implemented by
Marketing
Hire blog editor 5/1/2010 5/31/2010 $1,000 Marketing Mgr
Mgr
Marketing
Begin regular blog posts 6/15/2010 6/15/2010 $0 Blog Editor
Mgr
Marketing
Virtual tour update and redesign 2/1/2010 2/28/2010 $5,000 Ad firm
Mgr
Total Web Development Budget $6,000
Other Start Date End Date Budget Manager Implemented by
Marketing
Plan first focus group 4/1/2010 5/31/2010 $1,000 Marketing Mgr
Mgr
Marketing
Hold first focus group 6/15/2010 6/15/2010 $10,000 Marketing Mgr
Mgr
Total Other Budget $11,000
Totals $26,000

Critical Numbers
The critical numbers of the business will be tracked through the following means:

Leads, testimonials, and referrals will be tracked through the CRM system. These
will be entered automatically as the leads come over the Web and by hand by the
customer service or sales person dealing with them otherwise.
Leads converted (through room reservations) are logged automatically in the
CRM system, which doubles as an accounting software suite.
Marketing expenses are entered, as they are incurred, into the system by the
accounting department.
All departments are required to make all entries within 24 hours of when they are
incurred to keep the system up to date at all times.
Sales Forecast

Sales are currently higher in the category of introductory level rooms. As marketing
efforts pay off over the next two years, unit sales for mid-level and premium level rooms
are expected to increase relative to introductory level rooms. Room service sales are
driven by room nights sold. Generally, every night of a premium room rental corresponds
to a room service purchase, 75% of mid-level room rentals and 50% of introductory-level
room rentals.

Prices are expected to rise on average over the next three years as the business can
command higher prices from customers.

Sales are projected to rise towards full capacity (50 rooms x 365 nights per year = 18,250
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 hotel to not discount rooms so highly that they are all used at all
times. Off-peak times will be slower, but the hotel will maintain its premium-level
pricing for the most part through this method.
Sales Forecast
Year 1 Year 2 Year 3
Unit Sales
Premium level room nights 3,183 4,187 4,564
Mid-level room nights 3,756 4,665 5,084
Introductory level room nights 4,024 4,521 4,928
Room service meals 8,013 9,946 10,841
Total Unit Sales 18,976 23,318 25,417

Unit Prices Year 1 Year 2 Year 3

Premium level room nights $900.00 $925.00 $950.00
Mid-level room nights $700.00 $725.00 $750.00
Introductory level room nights $500.00 $525.00 $550.00
Room service meals $50.00 $55.00 $60.00

Sales
Premium level room nights $2,865,083 $3,872,892 $4,335,546
Mid-level room nights $2,629,516 $3,381,796 $3,813,266
Introductory level room nights $2,011,813 $2,373,477 $2,710,285
Room service meals $400,629 $547,018 $650,454
Total Sales $7,907,041 $10,175,183 $11,509,551

Direct Unit Costs Year 1 Year 2 Year 3

Premium level room nights $162.00 $166.50 $171.00
Mid-level room nights $140.00 $145.00 $150.00
Introductory level room nights $125.00 $131.25 $137.50
Room service meals $20.00 $22.00 $24.00

Direct Cost of Sales

Premium level room nights $515,715 $697,121 $780,398
Mid-level room nights $525,903 $676,359 $762,653
Introductory level room nights $502,953 $593,369 $677,571
Room service meals $160,252 $218,807 $260,181
Subtotal Direct Cost of Sales $1,704,823 $2,185,656 $2,480,804

Marketing Expense Budget

The marketing expense budget divides expenses into their major categories:
 Advertising represents print and online external ads.
Direct mail represents the postcard and letter mailing campaign to high net worth
individuals. The mailings will vary between the two formats each month and the
expense will fluctuate a bit as the letter mailings are more expensive.
Focus groups are costly as the discounts and free services offered to customers are
logged as an expense on the books, as is the direct cost of the lunch provided.
Web development includes website maintenance and hosting, virtual tour
development, email newsletters, and the company blog.
Marketing training reflects the cost in time and materials of orientation and
ongoing training and exams for staff.
Quality assurance reflects the cost in time and materials to review customer issues
and ratings, as well as the bonuses from the quality assurance program.

Total expenses will increase as some activities, like the focus groups, are ramped up, and
as the cost of doing business increases with inflation. In general terms, advertising and
direct mail represent the expense of lead generation, focus groups and Web development
represent the expense of lead conversion, and marketing training and quality assurance
represent the expense of the service experience.
Marketing Expense Budget
Year 1 Year 2 Year 3
Advertising $60,000 $63,000 $66,150
Direct Mail $75,000 $78,750 $82,688
Focus Groups $30,000 $60,000 $80,000
Web Development $60,000 $63,000 $66,150
Marketing Training $12,000 $12,600 $13,230
Quality Assurance $24,000 $25,200 $26,460
------------ ------------ ------------
Total Sales and Marketing Expenses $261,000 $302,550 $334,678
Percent of Sales 3.30% 2.97% 2.91%

Key Marketing Metrics

The key marketing metrics will be reported each month. The marketing manager will
create this report out of the CRM system and share the results with the CEO in the
monthly review meeting.

Leads (including all referrals, website queries, and attendees of the virtual tour) are
expected to grow at a steady rate. Lead conversion is expected to increase as the hotel
establishes its name and preeminence in the Somnigstad area.

The average dollars spent per customer transaction is between one and two nights and
will grow as more customers stay two nights or longer and move to higher priced rooms
in the coming two years. The ability of the company to charge higher average prices for
its rooms as capacity is better utilized will also drive this number up. It is estimated that
20% of leads will be from referrals which will be generated from customers and
corporate relationships.

PR mentions will be tracked by the PR agency and they will provide a report on this data
to Drowzey Hotel once a month along with all clippings or copies of mentions.
Testimonials will be derived from the best 10% of customer comments. These customers
will be asked to expand their comments into a testimonial after their visits in a follow-up
email. These customers will be offered a gift of Drowzey Hotel chocolates or other
sweets as an incentive for expanding their comment into a testimonial.

Key Marketing Metrics

Year 1 Year 2 Year 3
Revenue $7,907,041 $10,175,183 $11,509,551
Leads 15,917 21,550 22,628
Leads Converted 16.75% 20.00% 21.00%
Avg. Transactions/Customer 1.00 1 1
Avg. $/Customer $1,252 $1,693 $1,863
Referrals 3,183 4,310 4,526
PR Mentions 191 300 315
Testimonials 270 345 380
Focus Groups 3 6 10

Marketing Training Game

All staff interact with customers in one way or another. Even kitchen staff, who may
never see the guests they serve, will prepare food according to the Drowzey Hotel's ideal.

All staff members will receive specific technical training, observation, and testing over
the course of two weeks. During this time they will also be led in ten one-hour marketing
sessions covering the following material:

Core message and what it means to their job

Case studies of how the hotel has fulfilled its mission in the past
The ideal target client description, characteristics, and behaviors
The current marketing materials and campaign
The virtual tour

Even staff who will not be directly involved in using the marketing materials and virtual
tour need to understand how the hotel is represented in these external messages. These
sessions will be led by the marketing director and will be held with multiple new staff
members when possible.

Routine education will include quarterly testing on the company's marketing, core
message, and how it plays out in real-life situations. To prepare for these quarterly tests,
marketing meetings will be held with all staff twice a month to keep a direct connection
between the marketing manager and staff. The tests will be administered in a thirty-
minute session to multiple staff members at one time to insure their continued
understanding of the hotel's marketing vision and tactics.

Appendix
Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Unit Sales
Premium level room nights 0% 200 210 221 232 243 255 268 281 295 310 326 342
Mid-level room nights 0% 250 260 270 281 292 304 316 329 342 356 370 385
Introductory level room nights 0% 300 306 312 318 325 331 338 345 351 359 366 373
Room service meals 0% 538 558 579 602 625 649 674 700 728 756 786 817
Total Unit Sales 1,288 1,334 1,382 1,433 1,485 1,540 1,596 1,655 1,717 1,781 1,848 1,917

Unit Prices
Premium level room nights
Mid-level room nights
Introductory level room nights
Room service meals
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
$900.00 $900.00 $900.00 $900.00 $900.00 $900.00 $900.00 $900.00 $900.00 $900.00 $900.00 $900.00
$700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00
$500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00
$50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00

Sales
Premium level room nights $180,000 $189,000 $198,450 $208,373 $218,791 $229,731 $241,217 $253,278 $265,942 $279,239 $293,201 $307,861
Mid-level room nights $175,000 $182,000 $189,280 $196,851 $204,725 $212,914 $221,431 $230,288 $239,500 $249,080 $259,043 $269,404
Introductory level room nights $150,000 $153,000 $156,060 $159,181 $162,365 $165,612 $168,924 $172,303 $175,749 $179,264 $182,849 $186,506
Room service meals $26,875 $27,900 $28,968 $30,081 $31,241 $32,450 $33,710 $35,023 $36,392 $37,820 $39,309 $40,861
Total Sales $531,875 $551,900 $572,758 $594,486 $617,122 $640,707 $665,282 $690,892 $717,583 $745,403 $774,402 $804,633

Direct Unit Costs Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Premium level room nights 18.00% $162.00 $162.00 $162.00 $162.00 $162.00 $162.00 $162.00 $162.00 $162.00 $162.00 $162.00 $162.00
Mid-level room nights 20.00% $140.00 $140.00 $140.00 $140.00 $140.00 $140.00 $140.00 $140.00 $140.00 $140.00 $140.00 $140.00
Introductory level room nights 25.00% $125.00 $125.00 $125.00 $125.00 $125.00 $125.00 $125.00 $125.00 $125.00 $125.00 $125.00 $125.00
Room service meals 40.00% $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00

Direct Cost of Sales

Premium level room nights $32,400 $34,020 $35,721 $37,507 $39,382 $41,352 $43,419 $45,590 $47,870 $50,263 $52,776 $55,415
Mid-level room nights $35,000 $36,400 $37,856 $39,370 $40,945 $42,583 $44,286 $46,058 $47,900 $49,816 $51,809 $53,881
Introductory level room nights $37,500 $38,250 $39,015 $39,795 $40,591 $41,403 $42,231 $43,076 $43,937 $44,816 $45,712 $46,627
Room service meals $10,750 $11,160 $11,587 $12,032 $12,496 $12,980 $13,484 $14,009 $14,557 $15,128 $15,723 $16,344
Subtotal Direct Cost of Sales $115,650 $119,830 $124,179 $128,705 $133,415 $138,317 $143,420 $148,733 $154,264 $160,023 $166,021 $172,267

Marketing Expense Budget

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Advertising $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Direct Mail $5,000 $7,500 $5,000 $7,500 $5,000 $7,500 $5,000 $7,500 $5,000 $7,500 $5,000 $7,500
Focus Groups $0 $0 $0 $0 $0 $10,000 $0 $10,000 $0 $0 $10,000 $0
Web Development $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Marketing Training $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Quality Assurance $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Sales and Marketing
$18,000 $20,500 $18,000 $20,500 $18,000 $30,500 $18,000 $30,500 $18,000 $20,500 $28,000 $20,500
Expenses
Percent of Sales 3.38% 3.71% 3.14% 3.45% 2.92% 4.76% 2.71% 4.41% 2.51% 2.75% 3.62% 2.55%

Key Marketing Metrics

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Revenue $531,875 $551,900 $572,758 $594,486 $617,122 $640,707 $665,282 $690,892 $717,583 $745,403 $774,402 $804,633
Leads 1,000 1,050 1,103 1,158 1,216 1,276 1,340 1,407 1,477 1,551 1,629 1,710
Leads Converted 15.00% 15.00% 15.00% 16.00% 16.00% 17.00% 17.00% 17.00% 18.00% 18.00% 18.00% 19.00%
Avg. Transactions/Customer 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Avg. $/Customer $1,000 $1,040 $1,082 $1,125 $1,170 $1,217 $1,265 $1,316 $1,369 $1,423 $1,480 $1,539
Referrals 200 210 221 232 243 255 268 281 295 310 326 342
PR Mentions 10 10 10 10 12 14 15 17 20 23 25 25
Testimonials 15 16 17 19 19 22 23 24 27 28 29 32
Focus Groups 0 0 0 0 0 1 0 1 0 0 1 0

Gap Dashboard
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Personal
Speaking engagement requests 0 0 0 0 1 1 1 0 1 0 1 0
Other 0 0 0 0 0 0 0 0 0 0 0 0

Business
Revenue $531,875 $551,900 $572,758 $594,486 $617,122 $640,707 $665,282 $690,892 $717,583 $745,403 $774,402 $804,633
$ Per Customer Transaction 0 0 0 0 0 0 0 0 0 0 0 1,252
Leads 1,000 1,050 1,103 1,158 1,216 1,276 1,340 1,407 1,477 1,551 1,629 1,710

Tactical
Individuals targeted by direct
5,000 0 0 0 0 5,000 0 0 0 0 0 0
mail
Focus Groups 0 0 0 0 0 1 0 0 1 0 1 0

Strategic
Customer satisfaction level at
0 0 0 0 0 0 0 0 0 0 0 90%
highly satisfactory
Forbes Star Rating 0 0 0 0 0 0 0 0 0 0 0 4

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