Running Head: MARKETING PLAN
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MARKETING PLAN
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Marketing Plan
Name
Institution
Marketing Plan
Executive Summary
Wyndham Worldwide as of the world’s largest hospitality companies, headquartered in Parsippany, New Jersey, is a leading worldwide provider of travel-related services, including lodging, rentals and timeshare exchange. The firm can be subdivided into three components: Wyndham Hotel Grou, Wyndham Exchange & Rentals,and Wyntham Vaction. Each of these parts comprises of different companies and brands that are well known in their right. Despite the many services the organisation offers, Wyndham Worldwide is best known for its hotel chains. Wyndham Hotel Group consists of more than 7465 franchised hotels and over 660,800 hotel rooms worldwide, including well-known brands such as Wyndham Hotels and Resorts, Wyndham Vacation Rentals, Ramada Days Inn, Howard Johnson, Super 8, and Shell Vacations Club according to Wyndham Worldwide (2015). The company’s ability to adapt its marketing strategies to suit its various chains has provided it with unique advantages that make it a formidable competitor to rival hotel companies.
Part One: SWOT Analysis
Strengths
Several strengths of Wyndham Worldwide and its marketing strategies have been identified. These strengths include the firm’s brand recognition, financial stability, commitment to diversity and sustainability, market position, use of human resources, and access to marketing resources (Wyndham Worldwide, 2013; Wyndham Worldwide, 2014).
Weaknesses
Although the firm possesses much strength, it is not without its weaknesses or limitations. One of the biggest weaknesses of the company is that its business is seasonal (Wyndham Worldwide, 2014). Another weakness identified is its high operating and operational costs (Wyndham Worldwide, 2014). Additional weaknesses that have been identified include the firm’s traditional organisational structure, dependence on environmental and economic conditions, and less frequent sales opportunities (Wyndham Worldwide, 2014).
Opportunities
Several opportunities have been identified that could prove to be beneficial to the firm. One opportunity that Wyndham Worldwide (2013) has available to it is to reduce operational costs by participating in alternative energy strategies. Another opportunity available to the firm is increasing and improving its human capital by providing new benefits such as work flexible hours, flexible works conditions, etc. (Wyndham Worldwide, 2013). Additional opportunities include increasing stakeholder and customer loyalty through CSR efforts, expansion in developing countries, and expanding its product and service portfolio (Wyndham Worldwide, 2013).
Threats
Several threats of the firm were identified through the analysis. One of the biggest threats of Wyndham Worldwide (2014) is the global competition that exists. Another threats is unpredictable human-made and natural disasters. Specifically, terrorism, tornados, hurricanes, earthquakes, fires, etc. all has the potential of harming the firm’s product and performance (Wyndham Worldwide, 2014). Additional threats include adverse economic conditions, political issues, changes to laws and regulations, and changes in consumer trends and preferences (Wyndham Worldwide, 2014).
Marketing Goals and Objectives
Actual Wyndham Worldwide goal is to be a leading company in the worldwide hospitality industry. The company subdivides into different sectors such as Wyndham Vocation Ownership Wyndham Hotel Group and Wyndham Rentals and Exchange. Through these components, Wyndham group of enterprises are inclined to provide the best services to their customers to increase its customer base and worldwide presence. Also, the Wyndham group of enterprises also strive to ensure the protection of its natural resources, developing communities, enhancing human capital, partnering more effectively with suppliers and driving financial capital (McGuire, 2016).
Goals In the next five years, the company intends to achieve the following nonfinancial and financial goals
Financial Goals
· Financing Human Capital for better service delivery, the company is inclined in ensuring that they offer the best services to its customers. Hence, the company targets to achieve this through financing its human capital to boost their competencies in service delivery.
· Increase its annual revenue the company aims to increase its annual revenues through advertisement of its services to more customers. It also strategies to ensure that through efficient service delivery the company can retain its customers.
· Finance environmental conservation activities and protection of natural resources. The company is actively engaged in protecting the environment services. The company offers travel services to its clients hence through transportation it may be involved in environmental pollution.
Nonfinancial Goals
· Become more efficient in water and energy usage, Wyndham group of companies engages in hospitality services. Hence its hotels require a lot of water and energy. The group of companies is focused on reducing the amount of water and energy used in its member companies.
· Achieve an environmental certification program; the company is inclined in introducing an environmental certification program for all its properties. This program is aimed at ensuring that corporations and individuals who actively participate in the environmental initiative are highly rewarded.
· Develop Communities, through collaborating with the neighbouring communities the group of companies aims to ensure that the community around them benefits from the companies development initiatives. The group of enterprises also seeks to ensure that the communities are enlightened on the importance of environmental conservation.
· Partner more efficiently with suppliers and other business partners, the group of companies is inclined to improving their relationship with its vendors and investors, to boost its business activities.
· Expand its line of companies; the company intends to expand its services to other regions that have not been tapped, the main reason for the expansion of its services is to increase the profitability of the company.
Marketing Strategy
Primary (and Secondary) Target Market
According to Wyndham Worldwide (2013), there are several current and potential customers of the firm. Specifically, present and prospective customers consist of developers, timeshare owners, guests, franchisees/owners, and affiliates (Wyndham Worldwide, 2013). Current and potential customers also include foundations within the community, its stakeholders, and government agencies (Wyndham Worldwide, 2013). There are several different types of products in the firm’s product portfolio. In its simplest form, customers use all of the products for entertainment and leisure purposes. On occasion, the company’s products are used for business purposes such as travel and entertainment. Analysis of Wyndham Worldwide (2013) products reveals that the company’s products are purchased domestically and internationally. Most of the time products are purchased via the phone or in person. However, they are also purchased online via websites. Customer’s buy these products on a limited basis. Specifically, some customers buy products whenever the need arises. It could be monthly, quarterly, or annually. Other products like timeshares are only purchased once within one’s lifetime (Wyndham Worldwide, 2013). Finally, the analysis reveals that there are several reasons why customers buy the firm’s products. It is because of its brand recognition, high-quality goods and services, customer service and organisational culture, availability, its dedication to the environment and sustainability, and because of its competitive pricing (Wyndham Worldwide, 2013). Potential customers do not purchase the firm’s product because of costs and pricing, lack of familiarity, more enticing competitors, and undesirable geographic locations (Wyndham Worldwide, 2014).
Product Strategy
Through focusing on its commitment to service quality and delivery, Wyndham group of companies has successfully implemented product differentiation strategy in an entirely diverse and crowded marketplace. The ability of Wyndham group of companies to differentiate its products has considerably contributed to its high annual returns. The company’s target market consist of customers interested in lodging, rentals, travel related services, and timeshare exchange. The company targets individuals and businesses from all over the world interested in the hospitality industry services. It is most profitable services are the hotelier industry, where it has more than 7465 franchised hotels and over 660,800 hotel rooms worldwide. Its hotels include well-known brands such as Wyndham Vacation Rentals, Howard Johnson, Wyndham Hotels and Resorts, Shell Vacation Inn and Ramada Days Inn. Most of the Wyndham group of companies prefers using their well-synchronized services; their hotels have an international presence that is rivalled by several in the worldwide industry. Wyndham group of businesses focus on ensuring that all its companies are linked together with regards to advertisements and potential customers. The companies work together to keep their clients within the cycle of Wyndham group of enterprises. They perform this through efficient service delivery and referral systems within their structures.
The group of companies mostly ventures into products and services that are highly synchronised with other businesses within Wyndham group of businesses. Their products are highly differentiated and specialised to act as a benchmark to its competitors. A customer who intends to use hotel services offered by Wyndham may as well get transportation services using the company’s transportation services. The company mainly targets institutions with an international presence. By collaborating with such agencies and organisations, Wyndham group of enterprises extend their global presence to areas and regions that these organisations are engaged. Such methods have highly promoted Wyndham products and services in the worldwide market. The company has made a long-term relationship with its former employees; the former employees are essential in the institutional setup because they possess the experience needed by new hires to continue with the delivery of high-quality services within the organisation. The company continues to invest in its human capital to improve and enhance its products and services in the market. The staff are trained and motivated to deliver the best services to Wyndham clients.
Pricing Strategy
Wyndham pricing objectives are to maximise current profit based on the company’s long-term goals. The pricing strategy also seeks to maximise the present revenue of the enterprise, maximise quantity, maximise profit margin, ensure quality leadership, provide a partial cost recovery, maintain the company’s status quo, and ensure the companies maintain a high level of survival. Different goals and objectives support pricing strategies within the organisational framework. Price skimming in the hospitality industry is necessary for situations where demand for services tends to be inelastic. Penetration pricing is not recommended for already established companies. However, it may be used to assess new markets (Wyndham Worldwide, 2013).
The pricing methods used are key to achieving the objectives of the pricing strategy. Value based pricing set the price of services based on sufficient value to the customer depending on the alternative products. Psychological pricing set the price based on factors such as signs of attractive price points, product quality, and ant what clients perceive to be fair. Wyndham has privileged to embrace any of the pricing methods to enhance the profitability of the organisation. The company may also want to offer some discounts such as quantity discounts seasonal discounts cumulative volume discounts, cash discounts and trade discounts.
Wyndham group of businesses employ different pricing strategies based on its varied products. However, its primary pricing strategy aims at optimising channel mix, creating long-term goals, and knowing its market segmentation. The primary objective of the company’s pricing strategy is to increase the profitability of the group of businesses. The pricing strategy is also meant to cover and manage risks taken in the course of doing things. Wyndham base their pricing strategy on a particular secret pricing formula that helps the companies to establish the prices of their competitors. By the use of this method, the company can forecast their prices based on their competitors pricing mechanism. In addition to the method, it is important to consider the STR reports. A critical analysis of the channel mix and segmentation helps in evaluation of the company’s products and services.
The pricing used across the group of companies focus on the long-term perspective, in most cases, most managers’ focus on the short-term perspective of a pricing mechanism. However, in outlining prices for its services and products, the group of companies principally focuses on its long-term view of the business. The pricing of its products and services is not restrictive because business in the hotelier industry is always cyclical. The clients always expect a fixed price hence the primary pricing mechanism that was used by the group of companies played a significant role in establishing a dominant pricing trend (Perrault, Cannon, & McCarthy, 2015).
Wyndham group of companies prioritises optimisation of segment mix, to monitor which parts clients tend to join. Application of segment strategy is important in understanding uncertain situations that may abruptly occur. When shifting from one strategy to the next strategy, it is important to involve the anterior approach in the application of the new policy. It is vital to have an optimal mix because it can help in achieving a higher RevPAR.
The best pricing strategy is to leverage low-cost, high-rated channels. In achievement of this, there must be a properly crafted plan. The hotelier industry has high retail rates while opaque rates are low. To achieve the best price, it is important to bring the retail prices down to make the prices more realistic. In that case, the opaque segments will not have to be so low. Pricing strategy originates from close observation of distribution channel and different parts and not just the third-party channels. A proper pricing strategy ensures that there is detailed in-house segmentation to act as a definable marketing approach while tracking the guests (Wyndham Worldwide, 2016).
It is crucial to understand channel cost and gross-operating-profit-per-available room in a hotel, which can increase profitability and top-line revenue. An increase in the price of goods and services does not automatically translate to an increase in the average rate. A change in the average rate will highly affect profitability, an adverse change in average rate pose a greater impact on profitability.
Distribution/Supply Chain Strategy
Distribution and supply chain are among the most vital strategic decisions made by most marketers. Wyndham depends on highly efficient and effective supply chains to provide a competitive advantage. Strategic planning by marketers is objectively aimed at providing a place, possession utility, and time for business buyers and consumers. The essence of strategic supply management is to balance the company’s needs and the needs of the customers. Two essential interrelated components are of great importance to distribution and supply chain management. The two elements are marketing channels and physical distribution.
Marketing channels consist of a well-organized system of marketing institutions by which resources, information, products, product ownership, and funds flow from the point of production to its final user. However, in the hospitality industry majority of the business operations entails offering services as opposed to the manufacture of products. The hospitality industry is a facilitator of the marketing channels most of the products from other companies.
Physical distribution of services entails coordination of services with the business premises to ensure clients are being served at the right place at the right time. It is imperative in the hotelier industry. Wyndham must make sure that its employees are evenly distributed throughout their hotels and businesses to ensure the clients/customer needs are addressed. The industry highly depends on the hotel to the customer’s relationship. The company should invest in human capital to make sure that their client needs are adequately addressed without any delay. Provision of better services depends on upon responses to customer requests and the quality of products and services required. To continue a comprehensive coverage of the client needs and preferences the company requires a well-planned and executed supply chain management.
Supply chain refers to an integration of every member of the marketing channel. It integrates firms such as material suppliers, reseller’s manufacturers, and final consumers to a flow of information, funds, and products. Supply chain management involves a forward flow that targets consumers as the end-users in the chain and a reverse chain that targets the companies. The reverse chain is very vital to the hospitality industry because it entails corrective measures suggested by the customers. It also requires positive and negative reviews that can help the company correct its services. Supply management is mainly targeted towards ensuring that right products reach the right place at the right time.
Wyndham group of companies play an integral role in satisfying their customer needs. It is vital for the enterprise to ensure that all its services are adequately provided to their clients. The inventory of the business must be carefully monitored to avoid shortages. Shortages in the hospitality industry are dangerous for the growth of its customer base. In the event of a shortage, it is important for the company to avail alternative goods and services that can be used on its behalf. On service delivery, the company should ensure that its staff is adequately trained to handle specific issues regarding customer satisfaction. Proper delivery of services to the end users will market the company to other potential consumers hence it is important to consider particular cases where the client’s satisfaction was low (Wyndham Worldwide, 2015).
A full marketing channel will ensure that the company operates smoothly without any specific problems. The hospitality industry thrives on well-organized marketing systems that support comprehensive market plans. Wyndham group of companies entitled to have a proper strategic distribution and supply chain-marketing program. The program is to improve the relationship of the enterprise with other corporations and business entities. It is vital for these companies to integrate themselves with potential suppliers and distributors of products. As final users of most of the company products, it is essential to establish a relationship of the constant flow of inventory to the enterprise. It will help in reducing shortage among the companies. Management of these companies should also ensure that all market players are actively involved in constructive business contracts that provide a positive relationship with the companies.
Integrated Marketing Communication (Promotion) Strategy
Marketing communication and promotion are one of the ever-present components of any business’s marketing strategy. It is important because promotional activities are one of the requirements for effective communication of a company’s products and services. Integrated marketing communications involve sharing and conveying meaning between sellers and buyers mostly as firms or individuals. It refers to the strategically coordinated application of promotion to develop one consistent message over multiple channels to make sure maximum persuasive impact reach the company’s potential and current clients. Due to the advantages associated with Integrated Marketing Communication, it is important for Wyndham group of enterprises to adopt integrated marketing as a basis for their promotional and communication strategies. Integrated Marketing Communication can be used to communicate information with a long-lasting impact on a company’s products. It conveys an image of caring and truly knowing about its clients and customers that can easily translate to the long-term customer relationship.
IMC increases efficiency while reducing cost because it can eliminate or reduce waste and redundancies in the overall promotional program. It is vital for Wyndham group of companies to continue embracing this strategy because it is comprehensively covered in most of Wyndham objectives. The IMC offers an alternative solution to expensive mass-media house advertisements; the mass-media house advertising has also proved to be unpredictable than in the past. It is important for companies such as Wyndham Hotels to develop a more comprehensive form of publicity that caters for advancement in technology. IMC a critical role in plays a vital role in marketing strategy employed by several companies. IMC play a significant role in persuading, informing, and reminding customers about the firm’s products.
Integrated Marketing Communication is divided into several components. Advertising play a fundamental role in IMC in that IMC makes it cheaper for companies to use wireless systems on advertisement engage in an online publication with an enormous online population.IMC also offers a more reasonable solution to an advertisement on print media, advertising through social media is less expensive and reach a wider population. IMC also facilitates direct marketing of commodities such a company’s products and services. Strategic use of technology in advertising is essential for ensuring that businesses monitor their advertisement expenditures. IMC is also vital in enhancing public relations. Wyndham group of undertakings can use IMC to uplift the image of the company publicly. Poor public relations can affect the reputation of the enterprise. However, with a well-managed IMC system the company can comprehensively address its challenges through newsletters and press release.
Wyndham group of businesses can use IMC to advise the consumers on the importance of using the business’s products and services. Sales promotion performs a key role in ensuring that the products of a company are at the top of consumer’s preferences. IMC ensure that consumers are well advised on the best products to utilise (International Hospitality & Tourism Postgraduate Conference et al., 2015). An integration of Wyndham companies is essential to the success of the group of enterprises. With a comprehensive IMC program in place, the company can quickly ensure trade promotion within its industry and beyond. IMC is also essential in the personal selling of goods and services. In personal selling, the company strives to use IMC in its account management to avoid cases of corruption or lack of accountability. IMC can also be used in developing and identifying prospects for the company, the retail segment of the company can highly profit from the integration of communication and marketing into its systems.
Marketing Implementation
Structural Issues
In addressing structural problems, the Wyndham should consider the structure of organising the company is marketing activities. It is used to establish formal authority lines, as well as the enhancing division of labour in the marketing functions. Wyndham has to decide on a comprehensive in a way to integrate and divide marketing functions. Wyndham has to take action on either centralization or decentralisation. It is recommended for the company to ensure devolution of its marketing resources. Decentralization enhances a company’s capability to divide its available resources into profitable marketing ventures. The Wyndham group of businesses should make sure that when delegating or decentralising marketing authority, the ideals of the company’s marketing system is spread through the enterprise. In the decentralised structure, the front line of the Wyndham Company will continue to manage and coordinate marketing decisions and activities. The hospitality industry needs a comprehensive decentralised marketing system that would ensure that the front line managers gave the responsibility of making day-to-day marketing decisions.
However, the centralised market system is cost efficient and provides standardisation within the marketing system. However, this type of marketing structure is mostly advantageous to companies that their competitiveness depends on upon maintaining tight control over marketing expenses and activities. Decentralised marketing structure is the best for Wyndham group of businesses because they put their customer issues and preferences at the forefront. The companies directly engage clients and customers on particular services that they are want to be served. Wyndham companies are service oriented, hence in most cases, they engage clients in every end user activity within their enterprises. Hence, their business style fits the decentralised marketing model. Decentralised marketing system addresses the next customer needs as required in the hospitality industry.
Tactical Marketing Activities
Specific Tactical Activities
Product Activities
1.finalize package changes
2.production runs
3.service runs
Pricing Activities
1.Hold 10% off sale at retail
2.Keep 25% off sale at returns
3.Hold 30% of sale at returns
Distribution/Supply Chain Activities
1).Shipment to warehouses
2) Delivery to retail stores
3)10% quantity discount to the trade
IMC (Promotion) Activities
1.Informational website operational
2.Television advertising
3.Newspaper advertising
4 Coupon in newspaper insert
5 In-store POP displays
6 In-store signage
7 Product placement
Evaluation and Control
A marketing plan can only achieve its objectives if properly implemented. However, it is important to realise that a company’s marketing strategy may differ from its implementation. Inputs controls are actions before marketing strategy implementation. A marketing strategy cannot be successfully implemented unless there are proper resources and tools available in place for the market strategy implementation to succeed. Some of the most important input control is recruiting, training, and selection of employees. A properly designed marketing strategy prepares its staff members for the implementation phase. The staff of the company has to prepare properly to enable an efficient and effective implementation of the marketing strategy. Other inputs include financial resources, which are essential for addressing resource allocation decisions, increased expenditures on research and development, capital outlays for required equipment and facilities. Financial resources are vital to making or breaking a marketing strategy.
Process control is the actions taken during implementation of the strategy. It involves compensation systems and employee evaluation based on their performances. The other process control includes employee authority and empowerment through promotions and offering of working incentives such as promotions to new jobs. Internal communication program is also part of the process control that key to the success of the marketing strategy. Other process controls are lines of authority, management commitment to the marketing plan, and management commitment to employees (Kruger, 2016).
Output power is evaluations after implementation of the marketing strategy. The output controls are categorised to formal and informal output controls. Informal controls are unwritten control initiatives and activities by employees. The natural control includes the employee’s self-control, which is evaluated based on job satisfaction, organisational commitment, commitment to the marketing plan and employee effort. Social control involves small group control that is based on expectations and norms. Cultural control includes corporate expectations and standards evaluated based on organisational stories legends and rituals, cultural challenge and organisational culture.
The formal output is formal evolutions made by the company after implementation of the marketing strategy. The evaluations are based on the overall performance standards of the marketing objectives. The performance measures can further be evaluated based on organisations goals and objectives of the marketing plan. Customer satisfaction level can measure such shows, market share, market volume, profitability, customer related matrix and customer retention. Product performance standards can also be evaluated as part of the formal output. In this experimental evaluation quality, branding, new product innovation, core product quality, and supplementary product quality are assessed.
Other formal evaluation procedures include price performance standards that are measured based on revenue targets, specific price adjustments, yield management, supply/demand balance, and price elasticity. Another example of the formal output is distributing performance standard based on supply chain integration, relationship maintenance, effectiveness/efficiency, direct distribution performance, and outsourcing. IMC performance standard is also evaluated based on campaign reach, public relations, sales promotion effectiveness, purchase intentions, communication objectives and, or recall (Queensberry, 2016).
Marketing Audits/ Contingency Planning
The market audit is done after implementation of the marketing strategy; it is important for Wyndham to conduct a comprehensive market audit to establish whether the organisation met its objectives. The marketing plan is essential because it highlights some of the benefits of operating on a grand scale. In conducting a market audit, the management assesses the performance of the company regarding both long term and short term perspective. Forecasting the possible future trend of the organisation is important for the marketing strategy. After performing a comprehensive internal audit, it is important for the management to identify the marketing plans and strategies that were successful and those that were not successful. In performing such detailed analysis, the marketing manager will best know whether to restrategize best on the impact of the marketing strategies of the company. The forecasting future performance of a company based on its current performance helps the company in restrategizing to evade possible failure.
References
International Hospitality & Tourism Postgraduate Conference, In Salleh, M. R., In Sumarjan, N., In Chik, C. T., In Zahari, M. S., In Mohi, Z., … In Anuar, F. I. (2015). Theory and practice in hospitality and tourism research: Proceedings of the 2nd International Hospitality & Tourism Postgraduate Conference 2014, Penang, Malaysia, 2-4 September 2014.
Kruger, E. R. (2016). Marketing plan templates for enhancing profits.
McGuire, K. A. (2016). Hotel pricing in a social world: Driving value in the digital economy.
Perreault, W. D., Cannon, J. P., & McCarthy, E. J. (2015). Essentials of marketing: A marketing strategy planning approach.
Quesenberry, K. A. (2016). Social media strategy: Marketing and advertising in the consumer revolution.
Wyndham Worldwide. (2013). Wyndham Worldwide: Sustainability Report. Retrieved from http://www.wyndhamworldwide.com/sites/pdfs/green/2013-wyndham-worldwide-sustainability-report.pdf.
Wyndham Worldwide. (2014). Wyndham Worldwide Corporation: Form 10-K. Retrieved from file:///C:/Users/user/Downloads/WyndhamWorldwide_10K_20130215.pdf.
Wyndham Worldwide. (2015). Wyndham Worldwide Corporation: Form 10-K. Retrieved
