BAHR!A UN!vERS!TY !

SLANABAD
Narketing Final Project
By Students of BBA 1C
~. ...~ ,
Pearl Continental Hotel
Rawalpindi
Group Members Group Members
SYED HARRIS LAEEQUE
ZULQURNAIN JAVED
AWAIS
AcknowIedgment
THE E OF H THE OST ERCFU BEEFCET
rst and foremost grattude to AI-Mghty ALLAH the most mercfuI and
benefcent, who created human beng, bestowed hm wsdom to seek
knowIedge of varous scences and spread t among others to make the worId
happer and prosper.

We have no words at our commands to express our deepest sense of

grattude of AI-Mghty ALLAH who enabIed us to compIete our project aganst
aII odds.

We acknowIedge the untrng efforts of our teachers especaIIy

Madam Amna, who has been a beacon of Ight for us. She broadened our
horons by aIIowng us to research on our own and gave us free wII to wrte
whatever we wanted to. We aIso thank her that she taught us to anaIye thngs
on the bass of facts, fgures and ground reaItes.

We wouId aIso Ike to thank aII those peopIe who heIped us durng
ths project. We are great fuII to aII those who heIped us and partcpated n the
surveys.

And at the Iast but not Ieast most mportant of them aII our parents
we aII thank them for ther prayers and patence for Iettng us dong aII the
work by ourseIves.
NTRODUCTON
Group ProfIe
Hashoo Group of Companes was estabIshed under the Ieadershp of Mr. Sadruddn
Hashwan. In a perod of some three decades he through hs sngIe handed dedcaton and
commtment to the Professon has transformed ths Group n to a Ieadng ndustraI group of
Pakstan, weII known for ts forward-Iookng approach, and hghest standards of quaIty and
ntegrty.
Startng wth Cotton Tradng, Hashoo Group of Companes today boasts the onIy chan of ve
-Star HoteIs n Pakstan nameIy The PearI ContnentaI HoteIs chan and the Karach Marrott
and the IsIamabad Marrott HoteIs wth presence n aII the provncaI captaIs and the ederaI
CaptaI except one. Today, Hashoo Group of Companes besdes hoteI ndustry encompasses
oI and gas expIoraton, mnng, ceramcs, pharmaceutcaIs, toursm and traveI. It aIso has
consderabIe nvestment n reaI estate. Mr. Sadruddn Hashwan wth hs keen eye on the future
s now gudng the Group to enter the feId of Informaton TechnoIogy (IT). Towards that end a
whoIIy owned subsdary of the Group known as Net 21 (Pvt) Ltd s currentIy operatng as
Internet Servce Provder, whch s pIanned to serve as sprngboard to Iaunch substantve IT
projects.
The oI and gas expIoraton s beng done under the Orent PetroIeum Inc, whch has recentIy
met wth successfuI fnd. The Group s constantIy on ts forward march. Some exampIes of t
are: The constructon of PearI ContnentaI HoteI Bhurban n the pcturesque Murree hIIs,
Constructon of new wng caIIed Atrum Wng of The PearI ContnentaI HoteI Lahore equpped
wth the most modern amentes, ContnuaI up-gradaton and modernaton of PearI
ContnentaI HoteIs and IsIamabad as weII as Karach Marrott HoteIs, Acqustons of the state-
of-the-art Ceramcs actory to desgn and produce crockery and a pIant known as GeIcaps to
manufacture haIaI geIatne capsuIes for the pharmaceutcaI ndustry accordng to the most
strngent quaIty standards. Mr. Hashwans Vson knows no bounds and t wII be dffcuIt to
predct as to what wII be hs focus of attenton tomorrow. or hm tme s short and the Art s
Iong. Therefore, hs phIosophy s that each moment of Ife shouId go towards advancement of
cause of humanty at Iarge.
Mr. Hashwan runs Hashoo oundaton whose soIe objectve s to engage n phIanthropc
projects n support of socaI and cuIturaI causes and for the upIft of the deprved. Through ths
oundaton he not onIy fuIfIs hs corporate responsbItes but aIso more mportantIy hs
unwaverng commtment to promotng the good of common man.
Pakstan Servces Lmted
Pakistan Services imited was incorporated in 1958 as a Public imited Company
and is quoted on the Stock Exchange. t owns and operates the Pearl Continental
Hotels (formerly nter Continental Hotels) and is recognized as the largest and
oldest hotel company in Pakistan.

Pearl Continental Hotels is the first Pakistani chain which has achieved excellent
international standards of quality products and services. n recognition of its high
standard, the Pearl Continental Hotel, Karachi was conferred the prestigious
membership of the "eading Hotels of the World", an exclusive global organization
of deluxe hotels established in 1928.

Pearl Continental Hotels, beside in -house reservations network, are also linked
with Utell nternational to have international exposure and overseas reservation
network.

nvestment in people and human resource development is an ongoing process in

the Hashoo Group. ew management concepts and intensive training programs
have been introduced at all levels of supervisory and managerial positions through
establishment of an in-house Training School located at Pearl Continental Hotel,
Bhurban. The Training School looks forward to imparting systematic and scientific
knowledge of the operations of both tourism and hospitality business.
Pearl Continental Hotels have become synonymous with a tradition of personal
services, efficiency, convenience and guest satisfaction.
Mr. Sadruddn Hashwan
r. Sadruddin Hashwani hails from an illustrious family of Karachi. n 1960, he entered
the business of cotton trading and through his hard work and genius he within a
decade emerged as a prominent businessman on Pakistan's ndustrial scene. Within a
short span of 10 years, r. Hashwani was at the pinnacle of cotton business and was
rightly known as the ``Cotton King being top exporter of cotton, besides rice and other
commodities
n 1972, r. Hashwani diverted his attention to other business ventures in diverse
areas such as hoteliering, real estate, trading, and property development. gain he
made history when in less than a decade, he earned the reputation of a highly
successful hotelier.
n 1978 and 1981, he consecutively built Holiday nn Hotels first at slamabad & then
at Karachi under the banner of Hashwani Hotels imited. n 1992, these hotels were
totally revamped and refurbished to qualify for the well-known international 5-Star hotel
chain arriott. The slamabad arriott and the Karachi arriott to day enjoy the same
reputation as any other highest-class hotel anywhere in the world.
Corporate ProfIe:
Board of Drectors
Mr. Sadruddn HashwanMr. Murtaa Hashwan Charman Chef Executve Ms. Sarah
Hashwan Mr. Var AI . Mohammad Mr. Syed Sajd AI Mr. Mansoor Akbar AI Mr. Shra
Noordn
Audt CommtteeHuman Resource and Recrutment Commttee
Mr. Sadruddn Hashwan Ms. Sarah Hashwan Mr. Var AI . MohammadMr. Sadruddn
Hashwan Mr. Murtaa Hashwan Mr. Var AI . Mohammad Mr. Mansoor Akbar AI Mr.
Shra Noordn
Compensaton Commttee
Mr. Sadruddn HashwanMs. Sarah HashwanMr. Var AI . Mohammad
Company Secretary Chef nancaI Offcer
Mr. Mansoor Akbar AIMr. Shra Noordn
Bankers Audtors
Habb Bank Lmted NatonaI Bank of Pakstan PICIC CommercaI Bank Lmted Saud Pak
CommercaI Bank Ltd. Unon Bank LmtedTaseer Had KhaId & CompanyChartered
Accountants
LegaI Advsor
Laquat Merchant & Assocates
Regstered OffceCredt Ratng Agency
A-9 Mohammad AI Bogra Road Bath IsIand, Karach, Pakstan TeI : 021-5872941-4 TIx :
21259 HOTEL PK ax :021-5879872-73 http://www.pchoteIs.com.pk
http://www.hashoogroup.com.pk http://www.pchoteIs.b http://www.hashoogroup.b
JCR-VIS Credt Ratng Company Lmted
VISION/MISSION
We are commtted to dynamc growth and servce exceIIence buIt upon our hertage of tradtonaI
hosptabIty. We strve to consstentIy meet and surpass guests, empIoyees and other stake hoIders
expectatons. We feeI prde n makng efforts to poston Pakstan n the forefront of the nternatonaI
arena.
Corporate cuIture:
Innovaton:
Lstenng and two way nteracton
Partcpaton
Encouragement
Motvaton
Enterprse
Intatve
Growth and deveIopment for aII:
Competence and contrbuton as the onIy bass for job securty.
Promoton from wthn
Learnng envronment and opportuntes
Provson for worId cIass educaton and tranng
AIgnng peopIe wth Iatest trends.
Trust:
Cooperaton
Support
Teamwork
Sense of ownershp
Empowerment
Integrty
Dgnty
Respect
Canddness
Recognton Reward:
Achevement orentaton
Performance based evaIuaton
Apprecaton
Incentves
Settng ever-rsng standards of performance.
GOALS/ OBJECTIVES:
1. Customer servce:
2. Tranng:
3. ProftabIty:
4. Growth profIe:
5. CompatbIty:
6. TradtonaI hosptabIty
7. Envronment of professonaI enhancement:
Organizational Structure
ORGANZATON CHART ORGANZATON CHART
Pearl Continental Hotel, Rawalpindi Pearl Continental Hotel, Rawalpindi
GENERAL MANAGER GENERAL MANAGER
EXEC. ASST. MANAGER
EXEC. SECY
ROOM DIV. MGR DIR SALES H.R.M C. DIR &B C.E
EXECT. H.K
L.M
S.M
MGR M&C
PER.MGR
T.M
T.O. SUP
CRED.MGR
A/&B M
BQT MGR
ACE HL&P
EXEC. CHE
.O.M
PUR.MGR
I.T.MGR
A.C.
ACE R&M
SECU.MGR
EXTERNAL MACRO
ENVIRONMENT:
The external macro environment consists of those factor which affects
all firms. They are
emographics
Economic Conditions
Competitions
Political and egal Forces
Social and Cultural forces
Technology
ny change in any one of them can cause changes in one or
more of the others. Hence they are interrelated. These forces are
largely uncontrollable by the management. et us see how these
External acro Environment factor affect the PC hotel one by one.
Copyright 1997 by The cGraw-Hill Companies, nc.
2-3
COMPANYS
MARKETING
PROGRAM
Demo-
graphcs
Economc
condtons
PoItcaI
and IegaI
forces
SocaI
and cuIturaI
forces
Competton
TechnoIogy
DEMOGRAPHICS:
emographics refer to the characteristics of human
population including such factors as size, distribution and
growth. Because the people constitute markets,
demographics are of special interest to the marketing
executives.
The PC Hotel makes its market mix on the basis of the
following Basic emographics.
1. Income
2. Occupaton
3. Gender
4. SocaI CIass
5. amIy cycIe
1. INCOME
The main basic factor affecting the marketing
strategies of the PC hotel is the ncome factor. The more
income a person earn, the more money he will spend on
the luxuries. The PC hotel management has divided the
income of people in 5 groups.
ncome Below Rs 15,000
ncome between Rs 15,000 to 25,000
ncome between Rs 25,000 to 50,000
ncome between Rs 50,000 to 75,000
ncome between Rs 75,000 to 100,000
INCOME BELOW RS 15000
People who earn an income of Rs 15000 are
very less likely to visit the PC hotel. Because in
the current era of high inflation, it is very difficult
for a person to manage his household in just Rs
15000. The PC hotel management has no
means to attract people belonging to this income
category. Because Rs 15000 income leave no
room for extra expenditures.
INCOME b/w Rs 15000 - 25000
People who earn an income of Rs 25000 will
visit the Pc hotel, but just once in 3, 4 months.
Because even this Rs 25000 income is not
enough to manage a household in Pakistan. n
order to attract people of this income class, the
PC hotel comes with several discount packages.
Special Buffet dinners, lunches are examples.
Or special offers in Ramzan, summers,
weekends etc.
INCOME b/w Rs 25,000 - 50,000
People earning an income of Rs 50000 will surely visit
the Hotel. Their main reason to visit the Hotel will just be
to have a quality food. people belonging to this income
class will not choose PC hotel for staying purpose when
they will be out on a holiday and the reason for this is the
high per night charges of the hotel's rooms. n order to
attract people of this income category PC hotel comes
with special discount packages like 1 nights and 2 day
stay in hotel for Rs 40000. the PC hotel will also will also
use the above mentioned way to attract people of this
category. ike discount packages on meals e.g. a dinner
of 5 people for Rs10000 only. n order to encourage this
income class Pc hotel also brings new products i.e. like
the inexpensive Bar B Q items, or a cheap High Tea
package.
INCOME b/w Rs 50,000 -75,000
People belonging to an income class of Rs 75000 will
not only choose PC hotel for having meals, but also for
staying for few days while they will be on holidays.
However these people will just stay in the hotel for 2 or 3
nights because of the high per night charges. s these
people frequently visit the Hotel for meals purpose, so
reducing the prices or discount packages on food will not
much affect the hotel visit rate of these people. Because
these people can afford dinners etc at high prices. The
main objective of the PC hotel is to encourage these
people for over nights stays in the hotel. ow in order to
encourage this class of people for over night stays the
Hotel comes with new exciting offers like a stay in the
hotel for 2 nights and 3 days only for Rs 400000
including free meals.
INCOME of 100,000 and Above
nd finally people earning an income of Rs 100000 and
above are the people who belong to a high class, and for
them having dinner in PC is just a routine task. Hey will
surely choose PC hotel for a long stay while they are out
of town. These are the people who take different types of
memberships of the PC hotel. These people have
enough money to spend on luxuries. Reducing prices of
meals or over night stays will not at all affect their hotel
visit rate. n order to attract people of this class, the hotel
strongly emphasizes on quality and standard of service.
Providing these people with extra ordinary standards of
services and quality will surely increase the hotel visit
rate of these people. oreover, exciting hotel
memberships, clubs and other event participation will
also help PC hotel to increase its visit rate by the people.
2. OCCUPATION:
The type of occupation a person has will surely affect his
expenditures. People who are managers, CEOs,
secretaries, presidents, entrepreneurs etc will spend a
large part of their income on luxuries. The are more likely
to visit hotels for dinners, lunches or for staying over
night. For these people visiting hotels is also a status
symbol. ore solid occupation a person has, the more he
will visit the PC hotel. n contrast The people who are
home makers, labors, sales man, students, unemployed,
teachers etc are very less likely to afford any kind of
hoteling, because for them to manage a household in
their respective incomes is a big deal. These people will
avoid unnecessary expenditures. These people will
choose restaurants or fast foods when will face a need of
quality meals.
3. GENDER:
ostly the Pakistani families don't like their women working
outside homes. So the 87% of the Pakistani work force
comprises of males. s a matter of common sense, as mostly the
men are employed therefore only the males will have money to
spend on hotels. The males are the once who will have the
maximum hotel's memberships. They are the once who will
choose the Pc hotel for over night stays. By knowing the gender,
we can know about the occupation level of the person and
through occupation level the PC hotel will analyze the income
level of people and after analyzing it, the hotel will bring about
the special discount packages on meals, over night stays,
improving the standards of services and quality of life given to
customers in the PC hotel.
s the women are less employed so only a few percentage of
women will have enough money to spend on hotels, for meals or
for stays. ow it depends on the occupation of woman to
measure the hotel visit rate. Same is the case with the women,
analyzing occupation level and income level of people will help
PC to bring about plans for improving its customer services and
other factor.
4. SOCIAL CLASS:
s have above mentioned the income and the occupation factor of the
demographics, the social class factor also deals with the same. However in
the light of PC hotel let us highlight the hotel usage rate by the people.
UPPER CLASS:
People belonging to the upper class have an enough income to be spent on
the luxuries. Upper class people visit hotels frequently as a part of routine.
They host meeting, parties, and functions in the hotels. When out of city,
they will surely choose PC hotel to stay over night.
UPPER MIDDLE CLASS:
People belonging to this type of social class have a satisfactory part of
income which they could spend on the hoteling purpose. They mostly visit
the hotel for having meals. They also choose the hotel for special parties
and events. They are also likely to choose PC hotel to stay for a couple of
nights.
LOWER MIDDLE CLASS:
People belonging to ower middle class will only choose PC hotel for
lunches, dinners, brunches etc. these people can not afford to choose PC
hotel for over night staying purpose. These people may visit the hotel once
in 2 months.
UPPER LOWER and LOWER CLASS:
People who belong to these 2 types of social class will avoid any kind of
unnecessary expenditures. They are very, very likely to visit the hotel.
5. AMILY CYCLE:
et us divide the family cycle factor in the following groups in the
light of PC Hotel.
YOUNG-SINGLE:
People who are young and single have no tensions at all.
They have no responsibilities of household. They are free to
do anything. Therefore they are free to spend and portion of
their incomes on their luxuries. They are most likely to visit
hotel for a luxurious meal or more a luxurious over night stay
in the hotel. ccording to the occupation and income level of
the young single people, the PC hotel will come up with plans
to cater this area of family cycle. For overnight stays purpose,
the PC hotel will design special kind of rooms and sweeps for
these type of people. The recent approach to target this class
of people by the PC hotel is to employ a good looking staff of
waiters room cleaners and etc. the hotel in the past years has
also started hosting special parties, clubs etc to encourage
them to visit the hotel. Special types of club memberships are
also available for these people.
YOUNG-MARRIED:
People who are young and married have no children.
They have very less responsibilities of household. They
can spend a satisfactory portion of their incomes on their
luxuries. They can choose the PC hotel for both,
luxurious meal or a stay. gain after analyzing the
occupation and income level of these married people,
the PC hotel will come up with plans to cater this area of
family cycle. For overnight stays purpose, the PC hotel
will design special kind of rooms and sweeps for these
types of people like honeymoon sweeps etc.
MARRIED WITH DEPENDENT CHILDREN:
The type of people has a large responsibility on
their heads. Before taking a decision they have
to think about their family. When children are
dependent on you, you will allow less
unnecessary expenditures. Therefore the people
of this type of family cycle are very less likely to
visit the hotel. Or they might visit but very rarely.
ccording to age group of dependent children,
the PC hotel comes up with new plans like
playing area for children or discount packages
on meals for children under 12 year old.
PARENTS WITH INDEPENDENT CHILDREN:
When children are married, parents are free again to
lead their lives on their own ways. They can spend as
much of their income on themselves. Therefore their
hotel visit rates increases. The can choose the hotel for
hosting parties and events, for meals and for stays.
ccording to age of the parents whose children are
married, the PC hotel design rooms for over night stays
purpose. Certain Club memberships are available for
people above a specific age group. E.g. the PC has few
clubs for both men and women who are above 45. These
clubs consists of social workers who work for the benefit
of their country.
Other attractions in PC hotel for all sort of
demographics are
Gymnasium
health club
Fashion shows which are conducted every
season
small sport complex
swimming pools
Basant nights.
COMPETITION:
company's competitive environment obviously
has a major influence on its marketing
programs. The PC Hotel Rawalpindi is in straight
competition with the following hotels
Serena Hotel (5 star category)
arriott Hotel (5 star category)
Holiday nn (4 star category)
slamabad Club
Hotel Shalimar (weak competitor)
When ranking these hotels according to their
room occupancy rate, dine in rate, and their
growth and business rate, the ranking is as
follows
1. Serena HoteI
2. Marrot HoteI
3. PearI ContnentaI HoteI
4. HoIday Inn
5. IsIamabad CIub
6. HoteI ShaImar
ue the terrorists attack on arriot Hotel few
months back, it is now closed. So the PC Hotel is
enjoying the 2nd position.
The dine in rate of the arriott and Serena
Hotel is almost the same. Because both these
hotels are situated in slamabad and the quality
of food and services is the same. The average
dine in percentage of arriott and Serena Hotel
of each day is about 85% to 90%. The PC hotels
lags behind arriot and Serena Hotel. The main
reason for this is that PC is situated in
Rawalpindi sadar. ostly the rich people live in
slamabad. t is very difficult for the slamabad
people to come to PC for dine in purpose
because of the long distance. arriott and
Serena hotel provide the same quality of food
and services so the slamabad people opt for
arriott and Serena rather than PC.
The average room occupancy rate per day of PC hotel is
40% to 45% of the total no. of rooms. The PC hotel has
total 200 rooms.
The average room occupancy rate per day of arriott hotel
is 75% to 85% of the total no. of rooms. The arriott hotel
has total 250 rooms.
The average room occupancy rate per day of Serena hotel
is 75% to 90% of the total no. of rooms. The Serena hotel
has total 250 rooms.
The average room occupancy rate per day of Holiday nn
hotel is 75% to 80% of the total no. of rooms. The Holiday
nn hotel has total 200 rooms.
So terms of room occupancy rate, the ranking is
1. Serena
2. Marrott
3. HoIday Inn
4. PC
There is a strong competition among the hotels of
Rawalpindi and slamabad. PC Rawalpindi won an
exclusive contract for the lodging of cabin and cockpit
crew of the national carrier, Pakistan nternational
irlines (P). This same contract was with arriott Hotel
4 years back. But PC hotel offered cheaper room rates,
therefore PC won the contact over arriott. Same case
also happened last year. PC was given a contact for
lodging the crew of the West ndies Cricket team, but at
the last moment this contract was snatched from PC and
given to Serena Hotel as Serena was giving rooms on
cheaper rates. The Serena Hotel was in contract with
Emirates airline lodging of cabin and cockpit crew, but
after the arriot bomb blast, slamabad hotels were
declared dangerous. The emirates ended their contract
with Serena and gave the contract to PC Rawalpindi.
POLITICAL & LEAGAL ORCES:
Every company's conduct if influenced, often a great
deal, by the political and legal processes in our society.
The political and legal forces on marketing can be
grouped into the following four categories.
onetary and Fiscal policies
Social egislation and regulations
Govt. relationships with the industries
legislation related specifically to marketing
Affect of poItcaI and IegaI forces on PC HoteI:
Hotel industry in Pakistan has been under a lot of stress in
the past few years due to the severity drives launched by the
successive government, the deteriorating law and order
situation in the country and continued duty of large number of
taxes. This industry is dependent upon the business and tourist
activity in the country. n Pakistan, repeated efforts with the
government to come to the rescue of the hotel industry have so
far been all in vein. The business activity in Pakistan has overall
remained sluggish. Tourism, also, has never been properly
emphasized, including development of tourist spots and support
infrastructure, despite the exquisite scenic beauty of the
landscape of Pakistan and its rich cultural heritage. The fall in
foreign nationals traffic to Pakistan in the upshot of September
11 incident and frequent acts of terrorism have continued to
adversely affect the hotel industry.
fter September 11 there was a slight downfall in the growth of PC hotel. But
from the last 2 years, PC hotel is facing a serious downfall. People have
reduced their visits to any hotels because of the terrorists attack. Pakistani
people have started to avoid visiting those places where there is a crowd. PC
hotel faced a historic setback after the slamabad arriot attack. From that
day, people have almost quit, going to the hotels. The average dine in
percentage of one day used to be 75% to 85%. But after the arriot attack,
the percentage has dropped to 65% - 75%. However, this percentage is
slowly increasing with the passage of time. The average room occupancy rate
per day of PC hotel is 40% to 45% of the total no. of rooms. The PC hotel has
total 200 rooms. 3 years back, the average room occupancy rate used to be
75% to 80%.
Every successive government increases the taxes. PC hotel has to pay large
amount of; Property taxes, Sales taxes and Excise duty. Every 2, 3 years the
government reinforces the arriage Ordinance ct according to which only
one dish menu will be allowed in the hotel. ot only taxes, the governments
also increase the electricity, gas and water rates.
The political conditions were much better before 1999. the inflation rate
was less, therefore people had enough money to be spend on hotel visits. But
in the era of president usharraf, Pakistan noticed a high rate of inflation
which tightened the hand of people.
ECONOMIC CONDITIONS:
PC hotel was in its boom before September 11 attacks.
fter the 9/11 attacks the situation changed. War on
terrorism was fought in fghanistan and raq. nd
Pakistan was declared a dangerous country. ot only
PC but all the other hotels in Pakistan were affected by
the 9/11 attacks. The Pc hotel's boom period ended. But
there was no such major downfall. Things were
favorable. But after 2005 PC hotel entered in its
Recession stage. nd till now it is in Recession. For two
months PC was in epression stage also. This stage
was when the arriott attack happened.
Pearl continental hotel, is the most preferred hotel chain to visit by its
customer, but due to economic upheaval in the country and effect of
international environment on tourism and hotel industry, PC could not retain
its growth momentum as required. Though the Company was able to
achieve sales and services of Rs.1.932 billion for the current year, which
was almost equal to what they had achieved during the last year; change in
sales mix gave rise to increase in cost of sales and the administrative cost
as compared to last year. s a result, the profit after tax declined to
Rs.32.889 million for the year as compared to Rs.84.891 million last years.
The rooms sales during the year, did not maintain the desired growth
momentum. Pearl Continental Hotels of ahore, Rawalpindi and Peshawar
have won an exclusive contract for the lodging of cabin and cockpit crew of
the national carrier, Pakistan nternational irlines (P). This success
contributed towards increase in overall room occupancy to 58% as
compared to 54% during the corresponding period last year. However, due
to decline in average room rate, the room revenue stood at Rs. 831 million
as against Rs.890 million in the corresponding period last year, which is a
decrease of Rs. 59 million. n order to get more business and maximize
profit, Pearl Continental executed a arketing & Reservation greement
with .H.R. Collection imited (otels, Hotels and Resorts). s per
agreement, HR Collection will provide the services through their network
for promoting PC hotels in Pakistan and for making room reservations, which
will positively improve room revenue in the years to come. This revenue
generating business comprised approximately 51% of the total sales
revenue of the hotel as compared to 44% last year.
Pearl Tours & Travels (Private) imited registered a decline in both Sales
and Operating Profit by Rs.5.8 million (10%) and Rs.6.6 (85.68%)
respectively as compared to last year. However, due to increase in other
income and favorable tax decision at appeal levels, Company made after tax
profit of Rs. 1.2 million as compared to last year's after tax loss of Rs. 3.8
million. uring the year2003, old vehicles were disposed of and new
additions to its fleet were made in order to provide better service to the
customers. n order to improve the liquidity of the holding company to meet
other hotels projects, the directors have proposed to dispose off this
company.
Trans ir Travels (Private) imited, despite recording a modest decrease in
revenue by Rs. 0.433 million as compared to last year, succeeded in
reducing its after tax loss to Rs. 3.366 million as compared to after tax loss
of Rs. 4.917 million of last year. This Company is under consideration of
disposal due to continuous accumulation of losses during the last several
years.
uring the year, food and beverage revenue increased to Rs. 988 million
from Rs. 851 million, marking an improvement of 16%. The diagram on next
page shows the trend analysis for the sales of food and beverage from year
1998 to 2003.
InfIaton:
Pakistanis have always been under the pressure of inflation. But we have
witnessed a very high inflation rate from the past two years. This all started
in the era of President usharraf. nflation is increasing rapidly. t has
tightened the hand of the public. anaging a house hold has become
difficult. People are let with no extra money which could be spent on luxuries
like hoteling etc. The high rate of inflation has badly affected the PC hotel
business. iddle class people who used to visits at least once in 2, 3
months are not at all visiting the hotel. PC is loosing its customers. The cost
of the daily use commodities like rice, wheat, sugar had increased rapidly.
PC is unable to bear its expenses; therefore, it had no choice, but to
increase the prices. ue to inflation, the government of Pakistan has once
again passed the arriage ordinance ct, according to which only one dish
menu will be used in weddings. The Pc hotel can not decrease the per her
charges for the one dish menu because of the excessive cost. People think
that if they just have to eat Pullao and Korma, then why they should pay high
prices. Why don't they move to a place where the per head charges are less.
The room occupancy rate hate has also declined to a great extent due to
inflation.
TECHNOLOGY:
Technology has a tremendous impact on our life styles, our
consumption patterns, and our economic well being. Just think of
the effect of technological developments like airplanes, plastics,
televisions, computers, lasers, robots etc. We owe our lives to
technology. Just imagine the life 200 years back. t would have
been very hard. Technology has also played an important role in
progress and prosperity of the PC hotel.
When the PC hotels were established, Pakistan was not
technologically advanced. There used to be air conditioners and
heaters in every room. There was no concept of high security. Just
few watchmen and security guards used to check people and cars
entering the hotel. PC hotel had no credit card machines. o
.T. machines were there. The conditions of the elevators were
poor. The ovens they had worked on gas. The electricity
generators were small which could not bear high loads. There was
no concept of central heating or cooling. The laundry machines
were primitive. Even the buildings of hotel were not as large as of
now.
s time passed, technology became advanced. Each passing year
added new equipment, techniques and procedures. ets us take a
look on the technological advancements in the PC hotels.
n 2005 the PC hotel purchased a large electricity generator of worth
20 million Rs. This electricity generator has a high load bearing
capacity.
n 1990's the PC hotel installed plants for central air conditioning
and heating.
ow big television boxes have been replaced by Cs.
The laundry and kitchen are now equipped by latest machinery
which stands at par with those of the Europe and merica.
Security system has been enhanced. Close circuit television
systems have been installed in the hotel to prevent terrorist attacks.
This year PC has installed a chiller plant that was imported from
Germany and costs more than 10 million Rs.
10 years back, there used to be key locks with keys. This lead to
many thefts as anybody can steal or make a duplicate of the original
key. ow these keys are replaced with card locks. Just pass the
card through the lock on the door. The door lock scans the card and
the door opens.
PearI ContnentaI Tower:
Pearl Continental Tower is a building under construction
in ahore, Pakistan. The project was proposed by the
Pearl Continental hotels and resorts. t is a 6 star hotel
situated in the heart of ahore, and is expected to be
completed in 2010 boasting world-class facilities. The
construction cost is 80 mil US$ (PR 3 bil). The estimated
height of the building is 168 m (550 ft.).
The hotel extension plan will be completed in just 20
months with a cost of $50 million. The 42-storey building
has been planned after the district government decision
to relax rules set for the height of hotel building. The
current PC building in ahore is 33.5 m (110 feet) high
while the new building will be 152 m (500-foot) tall.
SOCIAL & CUTURAL ORCES:
Before opening any new Hotel, the PC hotel first
looks for a suitable place, city or region. Then
they analyze the environment of that region.
What are the social and cultural patterns.
Because these socio-cultural patterns influence
the values, traditions, behavior and life styles of
the people. The PC hotel management analyzes
the trends, traditions and values of the people of
that area in order to know their needs, wants
and desire.
Concern about NaturaI Envronment:
The PC hotel management is highly concerned about the
natural environment. The PC hotel does not forgets its social
responsibilities. They keep a sound check on whether they are
following the rules and regulations set by the society. PC hotel
uses only that electronic machinery which does notgive out
radiations. The Chiller plant and the electricity generator are
kept in a special room, so that no radiations are passed out
into the atmosphere. The air fresheners that are used in the
hotels are all CFC free. On the roof of the hotel, there has
been installed a large solar energy powered geyser. The use
of this solar energy powered geyser reduces the electricity and
gas consumption. The wastes products are diffused out in
sealed pipelines. Before throwing out any sort of waste
products, the workers check if there are any recyclable
materials which could be reused again.
Two Income amIes:
With the passage of time, the people of Pakistan
are becoming more and more broad minded. reason
for this is the media advancement. With the growing
inflation rate, it is very difficult to manage a household
from the income of a single person. n order to manage
the household easily, both husband and wife are now
working outside their homes. This leads to an increase in
the family income. The house hold expenditures are now
managed easily.
The PC hotel is benefiting from his approach of
people. ow people will have more income that could be
spend on luxuries. ore people will visit the hotel and
this will in turn lead to the growth of the hotel business.
Copyright 1997 by The cGraw-Hill Companies, nc.
2-9
Companys
Mcro
Envronment
SuppIers
Marketng
nter-
medares
Marketng
nter-
medares
The
market
EXTERNAL N!CRO ENv!RONNENT:
The External Nicro environment factors are those factors which
affect only a particular firm. They are:
Let us discuss these factors one by one in detail in terms of PC
hotel.
1. The Market:
The market is really what marketing is all about how to
reach it and serve it profitably and in socially responsible
manner. The market should be the focus of all marketing
decisions in an organization. But what is market? market is
People and organizations with needs to satisfy, money to
spend and willingness to spend it.
Hence we can conclude that marketing is all about customers.
Their needs and wants. The PC hotel carefully notices what
the people want. What is the competition in the market, what
things are being offered by other hotels to the people, what are
the prices of the rooms and food in other hotels, what is lacking
in our hotel, how can we satisfy the needs of people. How can
we enhance the room occupancy rate and the hotel visit rate
by changing the prices.
2. SuppIers:
business can not sell a product without being able
to make or buy it. That's why the people or firms hat
supply he goods or services required by a producers to
make what it sells are critical to marketing success. So
there are firms that provide the merchandise what a
whole seller or retailer resells.
n case of PC hotel, the suppliers play a vital role in
the running of the hotel's business. PC hotels have a
computerized system, they feed on the computer which
supplies they have in which amount and what is needed.
When the computer shows that a particular supply has
ended or about to end, the management send notices to
the particular suppliers.
ood SuppIes:
The PC hotel makes contract with the suppliers. These
contracts are given to different companies and the length of the
contract period ranges from 6 months to 3 years. The supplies
like wheat, rice, sugar, salt etc are purchased in bulk once or
twice a year. For these kind of supplies which are purchased in
bulk, PC hotel have registered suppliers and there contract
periods are usually very long. They range from 4 to 6 years.
PC hotel also has registered suppliers in abroad, which the
Hotel uses in times of crisis. For example, when there was
wheat crisis in Pakistan, inferior quality wheat was being
supplied to the hotel, at that time the PC hotel imported large
quantities of wheat from Sri anka. company in Karachi has
been given the contract to supply the frozen chicken. PC hotel
produces its own water bottles by the name of SPRKET.
Guest SuppIes:
Guest supplies are the room suppIes like bed sheets,
towels, bed covers, curtains, carpets, shaving cream,
lotions, hand wash, face wash, etc. PC hotel makes
contacts with a particular cosmetic company for the
supplies like hand wash, shaving cream etc. from the
last 5 years, 'E Pakistan has been given the
contract to supply the beauty products and Gillette has
the contract to supply shaving creams. The Kohinoor
Textile mills in Faisalabad are under a contact with PC
hotel from the last 3 years to supply bed sheets and
curtains. The carpet supplies come from Peshawar.
The tube lights, bulbs suppliers were Philips from many
years. But recently this contract is given to orient.
n addition, PC hotel also have suppliers for things like
tissue papers, tooth picks, crockery, furniture, soft drinks,
hard drinks, napkins, stationary, electronics, washing
powder, cooking oil, petrol etc.
3. Market Intermedares:
arket intermediaries are independent business
organizations that directly aid in the flow of goods and services
between the marketing organization and its markets. To a
surprise, the PC hotels have no arket ntermediaries. The
reason behind this is that, PC hotel makes contract with
companies to supply them the things. ow it is the headache of
those companies to search for the market intermediaries. PC
hotels are not concerned with the shipment, transportation, and
other distribution channels. t is the duty of those supplier
companies to supply the hotel the goods it needs.
For example, take PEPS. PC hotel makes contract with
PEPS company to supply it Pepsi. That's all, the job of PC
hotel has ended. ow it is the duty of the company to supply
pepsi to hotels. Same is the case with the hard drinks. PC hotel
give urree breweries the contract to supply the hard drinks.
PC hotel is not concerned with any sort of transportation that
the company does.
ORGANIZATIONS INTERNAL
ENVIRONMENT:
n organization's marketing effort is also shaped by the
nternal forces that are controllable by the management.
Suppose a company wants to add a new product in its brand. t
must determine whether existing production facilities and
expertise can be used. f the new product requires a new plant
or machinery, financial capability enters the picture.
The factors effecting the company's internal environment are
Production facilities
Financial Resources
company image
research and development
location
human resources
COMPANYS
INTERNAL
ENVIRONMENT
nancaI
resources
Research
and
deveIopment
2-11
1. Producton acItes:
n order to increase the production facilities,
the PC hotels needs to increase its employees and
stress should be laid on their training. n order to
increase the food production, the food making
machinery shall be increased. oreover, the existing
machinery shall be checked so that any fault could be
eliminated. The PC hotel management keeps a sound
check on the production facilities. The supervisor of
kitchen and laundry, weekly checks the machines to
know if they are working properly. Every 3 months, a
particular batch of kitchen, laundry and house keeping
employees goes for a training course.
2. Research and DeveIopment:
Research and development is related to the
technology. There is a research a development
manager in every branch of the PC hotel. The
employees from the Research and development
department visit different hotels in Pakistan and
abroad and analyze them. The Research and
development department keeps updated about the
advancements in technology. What sorts of new
machinery is invented, what is lacking in our hotels,
what should be imported and from where.
3. Locaton:
The PC hotel is very careful when choosing the location of
the hotels. The management chooses only that city and region
for hotel establishment where the rich people are more in
number. The business of the PC hotel Rawalpindi is much
lower than the business of PC hotels of ahore, Karachi and
bhurban. The reason for this is the wrong choice of hotel
location. The PC hotel is the only 5 star hotel in Rawalpindi,
whereas, all the other 4 and 5 star hotels are in slamabad. The
rich people mostly live in slamabad. ue to the great distance
between sadar and slamabad, a large number of slamabad
citizens avoid going to PC.
4. nancaI Resources:
The registered bankers of the PC hotels are
Habib Bank imited
ational Bank of Pakistan
PCC Commercial Bank imited
Saudi Pak Commercial Bank td.
Union Bank imited
The PC hotels usually take loans only from these banks
when doing small renovations, payment of suppliers, or buying
some other resources. When doing some expansion in the
hotels, it requires a large sum of money. So for long term notes,
the PC hotels takes loans from the S E'EOPET
BK. Since 25 years the sian evelopment bank is the
registered banker of the hotel.
5. Human resources:
The total numbers of employees working in PC Hotel
Rawalpindi are more than 600 out of which 427 are
permanent while remaining are on daily wages. ajor portion
of employees are working in F&B (food and beverage)
department and house keeping department. Because, as we
know that hotel industry basically deals with restaurants and
rooms, so to make and maintain their standards concerning
these areas (rooms and restaurants) employees are needed.
They are also needed to cook and serve food and to maintain
the services in halls, to maintain rooms & services in rooms.
23 numbers of employees are working in the Human
Resource epartment of them 5 are working in HR Office.
THE END
ThankYou !!!