The Manor House Country Club Hotel in Singapore and it was originated in 1992 by Jenkins family. The area size is 3 acres and it is an esteemed land. Location of the hotel is convenient for everyone. The management has made many changes in the hotel to improve their brand status by investing entire profit by adding extra luxurious rooms, purchasing the adjacent property, setup a bistro.
Mhcch is the best familiarized branded hotel industries that face some issues, because previous business associate and his son take charge of that posting. He is the current CEO of MHCCH & he completed business studies with few years experience in different field.
As a marketing analyst I want to observe dangers and benefits in internal and external environment to highlight the best from swot, which defines strength, weakness, opportunities and threats. Finally suggesting the suitable strategic plan to develop their business.
MHCCH main strength is the location. It’s a prestigious land which is nearby the tourist spot like theme park and museums.
The climate of Singapore is pleasant for the full year, that makes more no of visitors to this country which indicates the growth of hotel industries.
They developed their current site by investing the profit of past eleven years to improve the grade of this hotel as well as expanding the part of their business.
MHCCH is originated in 1992 still it generates a good flow of economy. This makes the bank to lend more money to them for expanding their business.
They purchased adjacent property to extend the infrastructure of this hotel. In 2002 they add extra luxury bedrooms as well as more number of rooms according to their booking demand.
Recently they got approval to sold all hard drinks inside the hotel; it helps to setup a bistro.
They mounted a beauty salon which having latest treatments, because nowadays beauty field is the booming field which earn more profits. This latest treatments will attract customers and help to improve the star rating of the hotel.
Previous partner get off from his post; that shows the lacking of experience, organising and potentiality, because Jenkins son graduated in business studies & he having only five years experience in fast moving consumer goods.
The experience which he having is entirely different field which is not capable to manage as a CEO for the developing hotel industry.
According to the last 3 yrs survey it shows the decline in corporate guest rooms. When comparing to non business guest & family non business guest, the corporate guest growth is worse.
Tourist fields have a sudden growth for the past 10 years, it shows the future prediction of the hotels.
Airlines provide lowest airfares and tourist board strong growing efforts led to increase in inward tourism from abroad countries.
Especially Singapore govt destines to spend on tourism to show their country as a good tourist destination.
Modernising the visual percept of the hotel by creating a spacious lobby change the looks into luxurious one.
Consumers spending on sit-down meals are bit by bit growing up with a rate of sixteen percentage.
Consumers prefer different foods like Thai, French, Italian, Indian and Malaysian. Youth people, middle age married couples and every categorized people like diversification. So change the food styles according to the latest trends
Make them to enjoy drinks with roaring fire creates a warm intimate atmosphere. Then have an outstanding collection of liquid history with display cabinets.
So there are so many opportunities available to MHCCH to develop their business, grade and to improve their profits.
Singapore hotel industry is the major menace to MHCCH in every segment like price, service, location, offers.
They having suitable schemes that suits all range from back packers to
Hi-fi peoples. It shows lacking of differentiation in MHCCH.
Industry facing higher growth of social problems, new licensing law, approval procedures, taxation methodology.
Mass market tour operators concentrate on niche sectors which have activity break, honeymoon package,.
If the tour operators and airlines increasing the economy range is the biggest threat to MHCCH.
Challenges in micro environment:
The internal factors which are instantly close to the organisation that have a forthwith bear on the organisation schemes. These factors include:
Organisations exist on the base of satisfying the customer needs, wants & fulfil their expectations. If there is a lack in this operation it will results in failed business strategy.
In order to delight the customer they should monitor the changing expectations and try to take steps in their way to give a great pleasure to them.
Employees play a major role in attracting customers. So hotel must recruit skilled persons to provide proper training & development, because it plays a crucial role in service sector marketing in order to gain a competitive boundary.
Management training & development program investment to the employees will be higher but it’s the base for the future to delight the customers with best service sector.
The important tactics in marketing is differentiation. What type of benefits & packages can be offered by MHCCH which is better than the Singapore hotel industry?
Comparison analysis & monitoring is essential for hotel to maintain their position in the market.
Pricing, tour packages, complimentary services are the basic things which the competitors try to do in cheaper with best quality.
Every time must monitor the competitors movements as well as scanning the environment to sustain the position.
Hotel should have good suppliers (electricity, water, gas, toiletry products, liquors, caterers) who provide good services/products with good quality in best prices. The biggest challenge in this segment is to sustain the affordable pricing and promotions.
Challenges in macro environment:
It is the external environment & it is a proper tool for analysing the facts of the business environment to take the advantage of opportunities & minimize the threats for becoming a successful org to grow in the future.
It mainly depends upon rules & regulations. They must follow employment law (minimum wage), environmental regulations and govt structures.
MHCCH invest their steady flow of cash to expand the part of the business by adding extra luxurious bedrooms, latest equipments in beauty salon, various food styles, different collection of liquors, leisure activities. It partly shows taxation, economic growth, govt spending and exchange rates.
MHCCH monitor the customers changing expectations & lifestyles to satisfy their needs. They change their food styles, using variety of alcohol products. So update bar & restaurants with variety of stocks.
MHCCH applies technology in beauty salon with latest treatments & well experienced doctors to prove their differentiation. Because nowadays beauty field growth is very high. Bar, conference hall, wedding hall, washrooms need to update latest tech to delight the customers.
The collection of information to measure and analyze the changes in environment is environmental scanning. It is very important to analyze the updates about the environment to sustain the business in safe and constant way.
It is a part of business tool which shows the clear picture about what the market is seeking? According to that we should create innovations to fulfil their needs.
Environmental scanning is very useful to get the information about the competitors. This helps you to put your eyes on your business.
It is an organisation tool which helps to split the customers into different groups in which the set of peoples shares a similar ideas or same set of needs satisfied by discrete marketing suggestions.
Customer group 1:
Honeymoon packages it covers luxurious sector.
Bedroom designed with sophisticated amenities with scenic view close to terrace with day bed
Beautifully appointed bathroom with two headed showers & a double sink vanity.
Exceptional privacy to feel them as an unforgettable trip.
Customer group 2:
Holiday & activity breaks for mind relaxation.
Quality & coeval rooms.
Place close to local amenities, lakeside etc.
Best leisure facilities.
Customer group 3:
Corporate guests looking for conference & meetings.
Suitably equipped & sized meeting rooms for delegate from 25-500 members.
Excellent catering and hospitality service is important.
As a marketing consultant I suggest last option to MHCCH that expand by investing in external property. They can purchase bar or restaurant and show differentiation.
Environment scanning is very important before starting a new business. It’s a tool helps to measure strength & weakness of the business to set the strategic directions.
In restaurant provide variety of food styles with best quality & competitive price to sustain their position. For e.g.
Thai – Fish cakes, tom yum, pad Thai.
Malaysian – Nasi lemak, beef pendang, sambal udang.
French – Fromage Blanc, salade Verde.
In bar they must have entire liquor collection & mention the price per glass (ml)/bottle. For e.g.
Calvados pays d’auge
Delight the customer with subdued light & deep leather wing chairs, highlighted display cabinets. Make the customers to enjoy drinks with roaring fire creates a warm intimate atmosphere.
MHCCH having different properties & available in more than one location is the benefit to our organisation that helps to get more customers with higher profits & use to stretch the brand.
After getting some returns slowly move to the third option by investing to expand the site by purchasing adjacent property to build leisure centre, studios to gain more profit & reposition the brand successfully in the market.
Market our existing products to our existing customers. The main concept is to increase the sales & generating more revenues, there is no need to seek any new customers. Only motto is to reposition the brand & makes the product successfully to stand in first place.
According to this principle, MHCCH will maintain the healthy relationship with existing customers by good servicing & providing best packages by lowest pricing than the competitor.
This will make MHCCH to sustain their place in market over a period of time & it’s the main barrier for new entrants. But it won’t suitable for MHCCH to expand their business.
There is no change in products, it remains the same but marketed to new customers like exporting the product to new region to reach worldwide.
Singapore govt planned for triple spending on tourist board & increase no of customers thrice over next five years. Only thing they want to attract & maintain a customer to set as a regular member.
But the chance is very less in this principle to expand business within next two years. So keep this as a last option to execute.
Create & innovating new products to existing customer. This named as auto market which replace or updates the existing products.
This principle is apt for MHCCH to expand their business. Expand by investing in an external property which means purchase & developing bar/restaurant to get more customers.
It stretches the brand name & gain more profits. Nowadays everyone concentrate on healthy food or balanced diet food (calorie calculation).
Provide various food styles like Thai, French, Malaysian, Indian etc with good quality & better price. Pricing is a key part to boost up the business.
Bar mounted with library which contains leather bound books, library bar boasts on outstanding collection of liquors with perfect visual aspects.
Luxury smoking venue provides best smoking room, because in Singapore smoking is banned in public places. It housing an extensive collection of Cuban-pre-Castro cigars.
The beauty salon which is recently mounted in MHCCH must be updating their features according to the customer expectations. For e.g.,
Hair stylesƒ digital, per med, curly hair, hair straightening.
Facialƒ glycolic skin peel, painless mole removal, laser hair removal, chemical peels, remove lines & wrinkles.
Makeupƒ organic, natural
Change the nature of the skinƒ oily, dry and intensive, pigmentation & redness, zits.
Body shapingƒ using liposuction.
Overall concept shows that pure professional methods that attract every categorized peoples like corporate guests as well as family & youth guests. Obviously the hotel get more no of customers with higher profits.
It helps to familiarize the brand and this is the apt method for expanding business effectively.
Develop new product to new customer. There is two types namely:
Related diversification: cake manufacturer diversifies pizza manufacture (i.e. food industry).
Unrelated diversification: cake manufacturer diversifies garment business (no previous experience).
According to this principle diversification is not suitable for MHCCH to expand their business. Here it shows to sell the hotel & using this capital start entirely different business is very risk.
Threats of New Entrants:
More number of trade conferences and exhibitions to be conducted in Singapore, increase in customer’s spending on sit – down meals by 16%, Singapore Governments effort to improve the tourism industry attracts more players into this field. Infrastructure facilities, scale of economies and differentiation of product may act as entry barriers and so the MHCCH has to focus on these aspects.
Negotiate Power of Buyers:
Presence of more competitors in the Singapore hotel industry makes the consumers to demand more from the hotels regarding price, quality and innovative (variety of food, other facilities, etc) products. From the case, it is revealed that a tough competition occurs in the Singapore hotel industry, price plays a major role and its root cause is the customer’s expectation regarding quality and price and this strengthens the buyer’s power.
Negotiate Power of Suppliers:
The hotel industry is having a very high relationship with the other industries (Electricity, soft drinks & carbonated water, Perfumes, cosmetics & other toilet preparations, liquors ,carpets and rugs Soap and detergents ,etc) and so the bargaining power of suppliers is high in the hotel industry but if the competition is more in the other industries too then the bargaining power of suppliers can be reduced in the hotel industry and it is essential to study still more regarding the prevalence of competition in the supplier’s industries.
Threat of substitutes:
The economic hotels and motels may be the threat of substitute’s products/ services to MHCCH but concentrating on factors like fast food establishments which includes the simplicity of food preparation, high quality of food served in a clean, orderly environment, prompt service and relatively inexpensive prices.
This challenge totally based on number of competitors in the market. Cost focus & differentiation focus is the main tactics between the challengers. It partly shows the industry growth rate. Pricing and promotion will plays a crucial role to stand in the market for a certain period of time.
Expand the business & stretch the brand by investing in external property like bar and restaurant. Start the groundwork to set the strategic direction to execute the project successfully.
Observe the rules and regulations designed by the govt before starting the construction work. Location is very important for the business environment.
Fix good suppliers, distributors for best products and good services. Providing some loyal schemes for the customers to reach brand in the market.
To sustain the customers give some differentiation in everything like bar, restaurant, room facilities, hospitality service to delight them.
The advertisement is very important in marketing field to popularize the product. Have direct contact with airlines and tour agents to get more customers.
Update technology according to the customer changing expectations. Provide valid packages, complimentary services to give a great pleasure to make them as a premium member of MHCCH.
As a marketing consultant I generate the report about challenges in micro & macro environment, issues arise from SWOT, segmentation, marketing strategy shows the clear picture to the partners to make them more enthusiastic.
Using ansoff’s matrix & porter’s grid I proved technically how to develop within next two years.
According to my report there is more strength & opportunities in MHCCH to minimize the threats & weakness of the business.
Apply strategic option in order to earn more profits & reach the brand successfully to the market in future.