Capston Presentation Slides

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Capston Presentation Slides

  1. 1. International Operations Plan - Marriott Ukraine Kate Radishevska Selling Comfort Around the Globe
  2. 2. Highlights • Opportunity • Ukrainian Economy • Investment Risk • Competition • Target Market • Market Strategy • Sales Strategy • Final Suggestions
  3. 3. Opportunity • EURO Cup 2012 will be hosted in the 4 major cities of Ukraine: Donetsk, Kharkiv, Lviv and Kiev • Ukraine will need: – Additional hotel infrastructure – To accommodate thousands of soccer fans traveling for the Euro Cup in 2012 – 30-40% growth in the hotel and other tourist services
  4. 4. Ukraine • Second largest country in Eastern Europe • Free Market Economy • 2008 GDP Growth: 8.45% • 2008 Inflation Rate: 12.8% • 2008 Unemployment: 2.3% • 2009 Population: 45,700,000 • Literacy: 99.4%
  5. 5. Investment Risks Risks Effects Solution Government Instability Business and Political Environment Ukraine Foreign Investment Laws Policy Instability Business Flow UK Foreign Investment Laws Corruption Overall Business International Corruption Laws Competition Marketing Strategy Competition Law in UK Tax Rates (No taxes on Real Estate, Insurance is Optional) High Tax Rates for International Firms Tax Deduction Laws for Investors in the Tourism Industry
  6. 6. Competition • Current Ukraine Hotels: • 1300 Hotels • 3200 Resorts • 4000 Private Hotels • International Standards: • Parking • Concierge and Room Services etc. • Stable Tourism Growth, 23M in 2008 • Hotel Supply is less then 5%, demand is up to 20% a year and growing • Average Occupancy Level is 60-70%
  7. 7. Target Market • 45M Ukrainians • 23M Annual Foreign Travelers – Purpose: leisure or business objectives – Optimistic: frequent travelers and members – Sports fans: soccer tournaments
  8. 8. Marketing Strategy •Newspapers •Flyers •Billboard •Magazines • Yandex.ru • Ukr.net • Marriott.com •NRCU •NRCU International •“Promin” •Popular Local stations • Inter • “1+1” TV Radio Local Media Internet
  9. 9. Sales Strategy City In Season Off Season Kiev $281 $250 Donetsk $152 $120 Lviv $120 $100 Kharkiv $97 $75 • Market Penetration Strategy is an Aggressive Low Price • Middle Class Consumers • Competitive Pricing on All Amenities • Sophisticated Image • Think Long Term, but Focus on the Present • Middle Class Affordable Proposed Room Prices
  10. 10. Final Recommendations • Concentrate on One City at a Time • Joint Corporation with Ukrainian firm or individual • Renovate Existing Building • Choose a Central Urban Location • Maintain the Marriott Standard • Offer a Variety of Amenities • On-Site Parking • 3-4 Star Hotels
  11. 11. Questions

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