2013 Business Plan for Blue Sky Hotel in Mongolia

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Ulaanbaatar, Mongolia - Blue Sky Hotel's 2013 Business Plan which covers the Marketing and Sales initiatives for the hotel management team. Written by Bilguun Ginjbaatar

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2013 Business Plan for Blue Sky Hotel in Mongolia

  1. 1. 2013 Business Plan for Blue Sky Hotel & TowerPrepared by Bilguun GinjbaatarThursday, February 21, 2013Project StakeholdersOyun, Head of HR DepartmentThe Blue Sky Hotel & Tower Management TeamBlue Sky Asia Co., LTD.Chono Corporation
  2. 2. ContentsExecutive Summary ...................................................................................................................................... 3Business Description..................................................................................................................................... 4Target Market................................................................................................................................................ 4Competition................................................................................................................................................... 4Marketing Channels & Actions..................................................................................................................... 5 SWOT Analysis ........................................................................................................................................ 5 Talk to People & Create Rapport .............................................................................................................. 5 B2B Discount Program ............................................................................................................................. 5 Attend Trade Shows.................................................................................................................................. 5 CRM Software: Track Your Customers.................................................................................................... 6 Aggressive Social Media Campaigns ....................................................................................................... 6 FourSquare ................................................................................................................................................ 6 Facebook ................................................................................................................................................... 6 Twitter ....................................................................................................................................................... 7 Instagram .................................................................................................................................................. 7 Enhanced Email Marketing....................................................................................................................... 7 Enhance Website....................................................................................................................................... 8 Online Advertising: Banner Ads ............................................................................................................... 8 Online Advertising: Google AdWords & Facebook Pay-Per-Click Models ............................................ 8 Calenderize All & Every Event ................................................................................................................ 8 Print Advertising ....................................................................................................................................... 8 Partnering with Foreign B2B Customers .................................................................................................. 9 Constantly Monitor the Competitors......................................................................................................... 9 Membership .............................................................................................................................................. 9 Planning and Forecast for 2014, 2015, & 2017 ...................................................................................... 10About Bilguun............................................................................................................................................. 112|Page Confidential Proposal Bilguun Ginjbaatar www.bilguun.net
  3. 3. Executive SummaryThis document is a brief overview of the 2013 sales and marketing plan for the Blue Sky Hotel & Towerand will pinpoint the business background and various marketing initiatives. Some initiatives may beimplemented already and this document is created in conjunction with the interview assignment for theposition of Head of Sales and Marketing.The Blue Sky Hotel & Tower is truly a breakthrough in the hospitality industry and everyone who lives inUlaanbaatar regards the hotel as the state-of-the-art new tower. The shape of the building is unique, hip,and mesmerizing – and because of that the amenities that come with the building live up to the standardsand offer luxury apartments, hotel rooms, and fine dining to Ulaanbaatarians and foreign visitors.To keep up with the 80% occupancy, I propose various sales and marketing initiative which include butnot limited to: finding out the strength, weakness, opportunity, and threats of the hotel management,creating effective relationships with people, a business-to-business discount program, the advertising ofthe hotel at prestigious tradeshows & expos, following-up on the leads using a CRM software, aggressiveand innovative campaigns through social media sites such as Foursquare, Facebook, Twitter, &Instagram. I, also, emphasize on the importance of e-mail marketing and its automation, websiteenhancement through Search Engine Optimization, creation of various banner image ads, Facebook Pay-Per-Click and Google AdWords advertising campaigns, and a sharing of internal calendar of events withthe management team. The preceding section talks about the importance of print advertising (also knownas paper advertising), partnership program with foreign based websites such as Expedia, PriceLine,Expedia, TripAdvisor, Groupon, the monitoring of marketing activities from the competing hotels such asKempinsky, Ramada, Chinggis Khaan, Ulaanbaatar, and Bayangol Hotel. The last but not least, I touch-up on the guest membership program and the planning and forecasting of the hotel business model for theupcoming years through series of effective monthly “innovative” thinkers meeting.However, it should be noted that there is always more ideas & room for growth and excellence that can beimplemented, and this document can be revised with the “add-ons” by the sales and marketing team or byanyone who adds value to the hotel business model. I may not have included everything in this report, butI will be happy to learn from the industry leaders and contribute my knowledge & experience effectivelyto the Blue Sky Hotel & Tower team.3|Page Confidential Proposal Bilguun Ginjbaatar www.bilguun.net
  4. 4. Business DescriptionThe Blue Sky Hotel & Tower is located in the heart of Ulaanbaatar and provides luxury residentialapartments, efficient business offices, and state-of-the-art hotel rooms in addition to providing amenitiessuch as fine dining, fitness club and a night club.Target MarketThe three main target markets for the Blue Sky Hotel are B2B, B2C, and B2G customers.B2B customers: The Blue Sky Hotel works with businesses that deal with other businesses. Thebusiness-to-business (B2B) customers would place a block on the hotel rooms on certain dates at adiscounted rate and re-sell it to their customers at a higher rate. The group discount is important for thistype of customers. For instance, the management team should target agencies that sell hotel rooms &other amentias in addition to airfare. Such companies may include companies like Airlink Mongolia(local), travel agencies, Expedia, PriceLine, Orbitz, TripAdvisor (international) etc. The revenue from thisgroup is usually larger than B2C customers.B2C customers: This diverse group of customers is the other main target customers of Blue Sky Hoteland includes regular people who are looking for hotel rooms for a short term period. A foreign traveler(s),foreign workers, foreign business professionals, and local Mongolian citizens would fit in this group.Please see the “Marketing channels and actions” section, where I describe what can be done to acquiremore customers in this target market.B2G customers: Although it may not be so common in Ulaanbaatar, the government in other countries isregarded as the biggest customer(s). In the U.S., the government spends over $600 billion each year andsupports the local businesses and other traditional mom-and-pop shops. Similarly, the Blue Sky Hotelshould target government entities and their expos to host large government initiated events in larger scalesfrequently and as often as possible.CompetitionWith a rapidly growing economy new hotels are coming to Ulaanbaatar marketplace a lot faster thanexpected. It should be pinpointed that the luxury hotels are fewer and smaller in numbers than the regular“mom-and-pop-regular-hotels” in Ulaanbaatar. The noteworthy hotels that would compete with Blue SkyHotel in the same level are: Ramada Hotel (A strong contender which was established in 2011) Kempinsky Hotel (In business for over 5 years) Chinggis Haan Hotel (In business for over 15 years) Bayangol Hotel (Established in the 1970’s and regarded as old fashioned by many) Ulaanbaatar Hotel (Established in the 1960’s and one of the oldest hotels)4|Page Confidential Proposal Bilguun Ginjbaatar www.bilguun.net
  5. 5. Marketing Channels & ActionsAs the head of the Sales and Marketing department, I would determine the expected marginal revenue andcost analysis before embarking on any campaign(s). I would sit down with my team to brainstorm newideas and get everyone’s input. It is also beneficial to review what we have done in the past and figure outwhat worked and what has not. Some of the methods I am about to propose may have been implementedin the past or being implemented presently, I am proposing the following innovative solutions to keep upthe 80% occupancy: 1. SWOT AnalysisSWOT analysis (alternatively known as SWOT Matrix) is a structured planning method used to evaluatethe Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. Iwould review the already performed SWOT each quarter, and focus on the Opportunity and Threatsarea more than the other two. Why? Because these two are the important factors for the cash flow. 2. Talk to People & Create RapportThe foundation in any marketing is based on human interactions – an effective, friendly, trust basedcommunication will bring more revenue to Blue Sky Hotel. I truly enjoy talking to people and feel that Iam able to talk about anything - whether it is weather, sports, events, movies, etc. etc. I have oneimportant principle, it is - when talking to prospects, try to learn as much as possible about their businessneeds and new ideas they have and continue to network and support them. Also, when going to tradeshows & local business meetings, I would encourage everyone in my team to exchange business cardsand be ready to give a quick 2-3 minute elevator speech about the Blue Sky Hotel and current marketingoffers. 3. B2B Discount ProgramI would focus on large travel companies such as Expedia, Travelocity, TripAdvisor, and PriceLine toget more businesses. Since these companies are focused on economies-of-scale (also known as largevolume based offerings) it is important to give them a discounted price. Based on the financial reports(A/P, A/R, Cash Flow Statements) I would determine how much margin we have for the discount andnegotiate a fair price with them. I would also encourage the B2B customers to promote Blue Sky Hotel intheir advertising mediums and spend their money on our marketing. Some companies ask for co-opmarketing, in which both parties agree to spend 50% cost together. I would definitely ask if it is feasiblein their budget. 4. Attend Trade ShowsTrade shows are important aspect for the marketing initiatives. I would find out every trade show & expoevent(s) that will take place in Ulaanbaatar in 2013 and rent a booth to promote Blue Sky Hotel. In myprofessional experience, I learned that it is important to sign-up early and get the best booth location sowe can get the maximum ROI. Also, you should collect business cards from everyone who stops by yourbooth and learn about them instantly and give a quick “lead grade.” If he/she is a decision maker – markthem as “hot lead.” If he/she is not in a hurry but has a potential to do business with you in near future5|Page Confidential Proposal Bilguun Ginjbaatar www.bilguun.net
  6. 6. then label them as “warm lead.” Take notes, collect their contact info, upload your data to your CRM,then follow-up with email and phone calls. 5. CRM Software: Track Your CustomersDuring my interview with Oyun, I was surprised to learn that Blue Sky Hotel currently does not takeadvantage of any Customer Relationship Management (CRM) software. CRM is a model for managing acompany’s interactions with current and future customers. It provides a 360 degree view of customerdata. It involves using technology to organize, automate, and synchronize sales, marketing, customerservice, and technical support. Some of the best and highly recommended CRMs are Sales Force(www.SalesForce.com), SAP AG, Microsoft CRM, and Quickbooks Enterprise Solutions. CRMs have asmall monthly fee and absolutely worth the investment. 6. Aggressive Social Media CampaignsSocial media is definitely changing the way people interact with each other and with their favorite brands.hThe Hospitality businesses are among the successful adopters of social media and it should beaggressively used for Blue Sky Hotel business model. For instance, over one million websites haveintegrated with Facebook, 23% of users check Facebook 5 times or more daily, 34% of marketers havegenerated leads on Twitter, Over 5 million are uploaded to Instagram every hour. Since Blue Sky Hotel islocated on a prime spot, at the heart of Ulaanbaatar, I would focus on the location based social media suchas FourSquare, Facebook, Twitter and Instagram. 7. FourSquareOn FourSquare, someone can check-in and their friends can see where they checked in. AmericanExpress, a credit card company based in the U.S., successfully implemented a social media campaign onFourSquare. In the first two quarters of 2012, an American Express card holder was allowed a 10%cashback reward on certain purchases if their credit card was used. Large U.S. franchisors such asSubway and Starbucks partnered and saw obvious hike in their revenue model as well. Blue Sky Hotelcan encourage people to check-in via FourSquare and offer something for reward. For instance, “Check-in3 times and get a free cup of coffee at the Le Seoul restaurant!” 8. FacebookWith over 3998 fans, The Blue Sky Hotel & Tower has a great Facebook presence. On average, 3-7 postsare put weekly on Facebook and I think it can be increased. You may not always have something cool tosay about Blue Sky Hotel on Facebook. To be more engaging and interesting, I would post four postseveryday – one of them being your own message and the other three can be a shared post from someoneelse’s page. “Encourage, engage, mention” others on your own Facebook page to increase awareness andreach your target market. You can also automate your messages using software called HootSuite. Itautomates and schedules your posts, and it is great for posting during after hours. For more about howFacebook can be utilized for businesses please read: “HubSpot: How to Use Facebook for Business”6|Page Confidential Proposal Bilguun Ginjbaatar www.bilguun.net
  7. 7. 9. TwitterTwitter is among the top three social networks and most Mongolians use twitter to send a message outwithin 160 characters or less. Although most Mongolian tweets are about the politics and complaintsabout how corrupt the politicians are, we can focus on the good and positive things and effectively engageon Twitter. Again, similarly to Facebook, engage others by mentioning with “@” and “# “hash tags andannounce re-tweet contests, etc. etc. The possibilities are endless and I know of many great “influencers”on Twitter we can learn from. 10. InstagramInstagram is so hot right now, seriously! Instagram is among the hottest social media platform right now.Acquired by Facebook in 2012, Instagram is very popular amongst the ages of 15-35 and available onboth iphone and android smart phones. Also, recently Instagram rolled out its website version and madeitself available for PCs and laptops, which means it is a great new tool for marketers. For Blue SkyHotel – I would recommend following all the Mongolians and post 4 relevant pictures every day. Engageothers and mention them similarly to Twitter “@” usernames. A picture posted on Instagram goes veryfar and it can also be shared on your Facebook, Twitter, FourSquare, Flickr, Email, and Tumblr profiles.R&B Singer Bold (@dorjsurenbold) and Uka from Kiwi (@ukakiwi) are great successful examples. 11. Enhanced Email MarketingEmails are the best communication and reminder tool especially for the 20-50 year old age groups. TheBlue Sky Hotel should plan for strong email marketing campaigns all throughout the holidays & specialoccasions. Each holiday is a reason for some kind of “offers” and “other marketing initiatives.” Mypublic speaking class professor Christiansen used to tell us “Tell them what you’re about to tell them. Tellthem. Tell them what you just told them.” Now I use that concept as the golden rule of email marketing.And it has always worked. Some effective email concepts are: I would create an EMAIL SIGN-UP section on the home page of www.hotelbluesky.mn and www.blueskytower.mn. This allows for inbound marketing – which means – we are sending emails based on permission and only send to those who request to receive exclusive email offers from Blue Sky Hotel. Most businesses purchase email list – and that is just wrong. No one likes spam emails and if you send them unwanted emails you will be marked as SPAM and you’re reported to the higher authorities as a spammer. I have built over 12,000 emails in 4 years, all permission based and my ROI on email campaigns were always higher than industry average. When a hotel guest checks-in, I would kindly ask them if they want to be included in the email offers. (Make it optional – so that it is not “pushy” Make guests wanted and welcome.) Email Automation: Sign-up with iContact.com or ConstantContact.com and it will allow you to send mass emails quickly and hassle free. In addition, you can schedule automatic emails to be sent in 7 days, 14 days, one month, or three months from subscription date. The Blue Sky Hotel can send special offers during their slow seasons to increase the 80% occupancy goal.7|Page Confidential Proposal Bilguun Ginjbaatar www.bilguun.net
  8. 8. 12. Enhance WebsiteThe current web presence of Blue Sky Hotel & Tower are great. It is flashy and has graphic rich contents.However, we can implement something called SEO – which stands for Search Engine Optimization. Ifsomeone is searching for “discounted hotel in Ulaanbaatar”, “luxury affordable hotel in Mongolia” or“luxury hotel in Ulaanbaatar” – you would want to be found on the first page of Google, preferably in 1-3position. Off-page SEO, on -page SEO, and inbound links can greatly improve the Google Page score(named after the founder Page) and if your score is 10 you will be on the #1 position. I know exactly howthis works and will be happy to implement SEO in all levels and put the competitors’ website behind. 13. Online Advertising: Banner AdsIn addition to the effective email marketing and stronger web presence, we can implement banneradvertising program in various shapes and forms. Banners usually exist in horizontal, vertical, halfhorizontal/ vertical, ¼ page, 1/8 page etc. We would ask our graphics team to create the ads in .JPEG,.GIF or flash .SWF formats and put those on traffic rich websites such as news.mn, gogo.mn, olloo.mn,shuud.mn, 24tsag.mn, & caak.mn etc. etc. Rather than short term, I would negotiate a 12 month or 24month long contracts then rotate the ads every month based on the national holidays & events & specialoffers. 14. Online Advertising: Google AdWords & Facebook Pay-Per-Click ModelsFacebook Pay-Per-Click and Google AdWords are highly effective paid advertising mediums. The beautyof this advertising channel is that both are very targetable! Based on the target audience’s location, age,gender, interest we can place ads and collect leads. The bad side of this advertising model is that it iscostly and runs during a specific period of time. On the flipside, remember that SEO is a long lastingorganic way of advertising your business on search engines. In my online marketing career, I haveimplemented various effective Facebook PPC, Google AdWords, Yahoo/ Bing PPC campaigns for manyU.S. based companies. 15. Calenderize All & Every EventI know the word “calendarize” does not exist in English dictionary and I totally made it up. The point is Iam a good planner and everyone who has worked with me knows that. The key to planning is to put everyevent on the Calendar. Google Calendar is a great tool to share/ add/ edit events with your executivemanagement team. I would like to bring this habit to Blue Sky Hotel management team and execute thiseffectively and plan events months ahead. My motto is “Plan, plan, plan and you’ll gain a lot.” 16. Print AdvertisingPrint advertising is another great way to spread the word. I would persistently study and research allMongolian magazines and place “unique- yet- simple” and with “Strong-call-to-action” print adcampaigns on various newspapers, magazines, and journals. The key to the success would be Guerillamarketing concept: engage in longer term than short terms. Let people get used to seeing you frequentlyand more often. My main target magazines would be: Duty Free and UB City Guide magazines which aredistributed in the air planes en route to Ulaanbaatar, “what do to around UB” theme magazines and otherlocal newspapers.8|Page Confidential Proposal Bilguun Ginjbaatar www.bilguun.net
  9. 9. Moreover, I would like to propose small pocket size brochures to be distributed for free-of-charge intraffic rich venues such as Genghis Khaan Airport, State Department Stores, Theaters, Tourist Centerseverywhere in Mongolia. The brochure would include the info of Blue Sky Hotel and the phone numberson the first page. 17. Partnering with Foreign B2B CustomersIn my 12 years of experience of travelling and living abroad, I know most of my colleagues/ friends usedExpedia.com, Orbitz.com, PriceLine.com, and TripAdvisor.com. I would add Blue Sky Hotel on all ofthose websites (and plus others) and constantly re-visit the contract and find ways to improve and increasehotel room sales through this B2B partnership.Another worthy partner to consider is GroupOn.com. It is one of the most successful U.S. based websitewhich was launched in November 2008. Groupon (a word derived from "group coupon") is a deal-of-the-day website that features discounted gift certificates usable at local or national companies. Recently,Groupon announced a “GET AWAY” section which offers trips to foreign destinations, both airfare andhotel costs included. I would strongly consider partnering up with Groupon and offer a “5-day-trip” dealto “Ulaanbaatar, the land of Genghis Khan.” 18. Constantly Monitor the CompetitorsAs mentioned previously, I would monitor the competing hotels’ marketing initiatives and find out whatwe can do better or copy from them. These hotels include: Ramada Hotel (A strong contender which was established in 2011) Kempinsky Hotel (In business for over 5 years) Chinggis Haan Hotel (In business for over 15 years) Bayangol Hotel (Established in the 1970’s and regarded as old fashioned by many) Ulaanbaatar Hotel (Established in the 1960’s and one of the oldest hotels)Copying from the above mentioned hotels is completely okay as long as you do it right and within yourbusiness ethics. For instance, McDonalds copies from Burger King and Subway copies from Quizznos inthe U.S.In addition, while meeting with the KFC Asia franchise headquarters in Singapore, the Chief MarketingOfficer admitted that KFC occasionally copies their marketing ideas from McDonalds and Burger Kingboth. According to the experts, the great sales come from innovative and great campaigns. 19. MembershipI am certain that a membership program already exists at Blue Sky Hotel. While I’m not fully familiarwith the details and ins-and-outs, I would strongly encourage all guests of Blue Sky Hotel to sign-up forthe free membership and start collecting points. For instance, The Double Tree Hotel in the U.S kindlyasks all its guests to sign-up with their “Gold Membership” program and allows them to stay the 6th nightfor free if they stayed for five nights already. Something similar can be implemented for Blue Sky Hotel:perhaps something like, “Stay for 4 nights and get the 5th night for free for the standard rooms”9|Page Confidential Proposal Bilguun Ginjbaatar www.bilguun.net
  10. 10. 20. Planning and Forecast for 2014, 2015, & 2017I would like to make the first Tuesday of each month to be the “Monthly Forecast Planning CommitteeMeeting.” This meeting will be two hours long – and will be held 12 times year. This meeting wouldinclude all decision makers and innovative thinkers who would effectively contribute to the futureplanning for the Blue Sky Hotel. Also, I would create a graph that shows the revenue and figure out whatevents caused the hike in revenue and vice versa the dropdown in revenue. Based on that our ground-breaking team can effectively plan for the upcoming years and implement more of “what has workedalready.”It is equally important to create a short-term (less than a year) and a long-term (five year span) plans forthe sales and marketing. I will demand my team to constantly review “if we are on track” and the tool tomeasure that is called the Gantt Chart, which is a widely used project management software. I wouldstart the forecasting and planning by the following steps for each project: kick-off meeting, initiating,planning, implementing, monitoring, and closing/ sign-off of the project.In summary, I strongly believe that the above mentioned initiatives would effectively contribute to thesales and marketing strategy of Blue Sky Hotel and I will be happy to present my ideas in person to theexecutive management team.10 | P a g e Confidential Proposal Bilguun Ginjbaatar www.bilguun.net
  11. 11. About BilguunBilguun attended the Edinboro University of Pennsylvania in Edinboro, Pennsylvania where he graduatedwith a Masters of Science in Information Technology. Prior to that he completed his Bachelors of Sciencedegree in Economics and worked on IBM sponsored project in New York City. After completing hisMasters curriculum, he has been working in Illinois as Information Technology/ Marketing leader since2008. He moved to Ulaanbaatar in December 2012 to pursue his next career opportunity. Bilguun enjoysplaying sports and has a passion for internet marketing & most of his business development projects areof this subject matter.In addition, Bilguun creates competitive advantages by utilizing cutting edge technical and businessacumen, innovating solutions and influences positive changes. He achieves corporate objectives throughpassion, commitment and expertise in:• Building Relationships • Business Development • Business Process Improvement • Online Marketing •E-commerce • Econometrics • SWOT Analysis • Marketing Strategy • Sales Management • B2B • B2C• B2B2C • Advertising • Website Development • Web Design • Content Management System • Web Analytics • Mass Email Marketing • Search Engine Optimization • Facebook Marketing • Keyword Research • Search Engine Submission bilguun@bilguun.net Skype: BeckBilguun Tel.: 9672-986911 | P a g e Confidential Proposal Bilguun Ginjbaatar www.bilguun.net

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