Armani Hotel Dubai

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BUSI 2208 K
Introduction to Marketing
Winter 2011

Written By
Zain Mahmood
Kristina Vald
Ravneet Jammu
Robert Kiwanuka
Paul Gremmen

Dr. Irfan Butt
March 31, 2011

Table of Contents
Title Page Executive Summay……………………….……..………...............................................................2 Problem Statement………………………………………………………..……………………….2 External Analysis………………………..…………………………………………………...……3 Internal Analysis…………………..………………………………………………………...…….6 Segmentation Analysis…………………………………………………………………………….9 Alternatives ………...…………………………………………………………………………....11 Recommended Alternative ………………………..…………………………………………….14 Implementation…………………………….…………………………………………………….15 Conclusion……………………………………………………………………………………….18 Appendices……………………….………………………………………………………………19 References ……………………………….………………………………………………………25

Executive Summary
The Armani Group has found itself at crossroads of a great opportunity of tapping into a prosperous market of luxury hotels. Considering the Armani group is the only branded luxury hotel they can take advantage of the “first movers advantage”. The Armani Group has opened up a new branch named: “the Armani Hotels & Resorts”. The decision that they are facing is where to expand into next within the North America. Since the target market is high-income travellers the alternatives were listed by the number of annual visitors to major North American Cities. Top three alternatives were New York, Los Angeles and Las Vegas. After vigorous research of annual visitors and their expenditures, hotel occupancy and average household income of visitors the obvious choice was Las Vegas. The implementation of this choice should take about two years during which there will be a physical hotel built within the Las Vegas strip (Downtown). Price will be held strategically high and the intense promotion will continue throughout the last 6 months of the implementation process. This alternative will allow the Armani group to take advantage of the high expenditures of visitors within Las Vegas and further enhance their brand image by showing “the Armani way of living”. Opportunity Statement

The Armani Group has a very strong potential to utilize their world-renowned brand image to achieve success in the luxury hotel business. Having already entered the market with their Burj Khalifa location the Armani Group is not looking to expand into the North American market which will allow them to tap into a large profitable market. External Analysis

Regulatory and Political
A stable political environment is critical for the hotel industry and tourism in general to grow and prosper. Hotel industry has the ability to stimulate local economies by creating jobs opportunities and attracting visitors and investors locally and from all over the world. Governments should support this sector by providing transparency and investment opportunities that will encourage the industry to grow. Opportunity

A big Opportunity for Armani is that they have already opened their hotel in Dubai, so they have an idea how things work in the hotel industry and which laws have to be followed to run the business. There are no such strict regulations in the hotel industry which should trouble Armani from building hotels in Las Vegas but they only have to follow the laws and should meet the standards. Another opportunity to further develop and to keep them updated with the local regulatory and political changes is to hire a political and research analyst. This would help them to be ahead in the game and to know what’s happening out there in the political world in the hotel industry and which regulations are changed and what laws are passed in the sector. This will help them to be safe from all the legal issues that rise from time to time throughout the operation of the hotel. Threat

Since most of the investment...
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