Bubble Economy

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1.0 Introduction
NEIMOMA represents “How are you” in Chinese, which gives a good impression when the tourists first come to the hotel. NEIHOMA is a 3 stars hotel, which is situated on the seafront and a short distance from the main shopping center. The aim of this report is to increase the stars level from 3 to 4 when running the business. The purpose is to analyze the hotels’ actions from year 1 to year 3, with data and graphs explanation, to measure the overall performance. Firstly, this report shows the overview of the hotel. Secondly, will discuss the business plans for the last three years. Lastly, analyze the financial performance from year 1 to year 3. 2.0 Overview of Business Plan for the last three years

2.1. Positioning and mission statement
Mission statement
To be and be seen to be, the best restaurant in the town
To assist the valued guests with tour bookings and local information To ensure the guests have the most comfortable accommodation and services possible To satisfy the customers’ needs and want
To provide the best food and beverage courses for customers
Positioning strategies
At first, the hotel was in 3 stars, but it would be developed to 4 stars hotel during the next 3 years. The target market was the corporate who usually read business press and willing to use direct mail. In addition, the target market was willing to spend a higher price to have a better meal and liquor, so the food and beverage would be set at a higher price.

2.2. Year 1:
2.2.1. Objectives
1. Earn More than $1,000,000 at the end of year 1
2. Increase Public Awareness Index to 50 at the end of year 1
3. Increase Room Occupancy to 50% at the end of year 1
4. Decrease the turnover rate to 70% at the end of year 1
5. Build all the facilities at the end of year 1
6. Increase the Room Market Share to 9 at the end of year 1 7. Increase the Market Image Index to 45 at the end of year 1 2.2.2. Strategies
This was the first year of the hotel, so there were many major decisions needed to be decided. Therefore, in the following part, the major decisions would be divided in further parts. 2.2.2.1 Weekday

In the corporate market, the price was very stable, only decreased from $110 to $108 at the end of year 1 to achieve more occupancy. In the leisure market, the price decreased more than the corporate market, from $140 to $112 at the end of year 1, which was to test the price level in the year 1. The first 5 months of the promotion on weekday room was using direct mail and only used $825 to test the market. After that, business press was to use on advertising the weekday room. The expenditure on advertising the weekday room had been increased to $3,750 at the end of year 1.

2.2.2.2 Weekend
In the corporate market, the weekend price was decreased from $100 to $ 88 at the end of year 1 which had a greater decreased than the price of weekday because NEIHOMA Hotel wanted to achieve more occupancy in weekend, so the decreasing rate of weekend was larger than weekday. In the leisure market, the price was decreased from $125 to $110, but it seemed did not work properly. Therefore, the price was decreased further from $110 to $95 at the end of year1 which aimed to attract more customers and increase the room occupancy. The first 5 months of the promotion on weekend room was using direct mail and only used $825 to test the market. After that, business press was to use on advertising the weekend room. The expenditure on advertising the weekend room had been increased to $3,750 at the end of year 1. 2.2.2.3 Other market segments

In year 1, the hotel had provided tours service. The price was set in $65 initially, but it did not attract many tourists, so the price was decreased to $57 at the end of year 1. 2.2.2.4 Cost control

The cost was controlled in a stable price, such as did not change the supplier level in every month, the liquor and food suppliers were keeping in level 1 and level 2, which could provide a stable...
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