Discuss about the marketing practices that are carried out by the Jumeirah Emirates Tower Hotel Group.
The company selected for the report is Jumeirah Emirates Tower Hotels, situated in Dubai, UAE. The construction of hotel completed in the year 2000, the hotel is currently operated by the Jumeirah international Group and hotel includes approximately 40 luxury suites (Jumeirah Group, 2017).
The aim of the assignment is to focus on the steps that are required and followed by the company for the formulation of the marketing strategies in a marketing plan. The report is formed with the objective to make new manager aware of the company situated in a market of UAE. It helps the manager to get familiar with the corporate objective of the organization that contributes to the marketing strategies that help the company in accomplishing the objective for the specific product of the company.
The Jumeirah group was founded in the year 1997 in Dubai and owned by Al Maktoum family with the Gerald Lawless with an objective to become the leader in the hospitality industry. The development of the hotel took place after 10 years; this development was required to make the hotel luxurious with the innovative services. A function of the development of hotel was managed by the specialist team of the group. After the development, the brand was summarized as a global brand having a name of synonyms of luxury. The company became the competitor for the other luxury branded hotels (Jumeirah Group, 2017).
The vision of the company is to become the world-class luxury international hotel or in other words to become the leader in the hotel industry. The hallmark of the company is one of the reasons behind the success of the company. The hallmark of the company says to stay different which means the adoption of new philosophy (Jumeirah Group, 2017).
The Culture of the Jumeirah plays a vital role as this culture worked as a guiding principle for the company which includes integrity, teamwork, people focus, innovation; recognition and stay different (provide unique and memorable experiences to their customers).
The objective of the company is to become the leader of the luxury hotels across the world and to achieve the objective company is making use of different strategies that are helping a company to achieve the goals. The company is expanding a business to different areas to achieve goals.
Each and every business works to satisfy the needs of the customer by offering them innovative products and services. the hotel consist of 400 rooms and suites, the hotel is home to 13 dining and nightlife venues which include award-winning restaurants such as Hakkasam, the Rib Room and Al Nafoorah (Booking.com, 2017). The hotel provides the elegantly furnished accommodation with facilities like impeccable room service, spa facilities, and the business services. it also provides the fashionable shopping, dining, and trend-setting nightspots and makes the company make sure that they fulfill the needs of the customers. The main product of the company is its luxury accommodation rooms and facilities (Jumeirah Group, 2017).
The company is continuously performing form last few decades and this is clear from its growth and success. The success and growth of the company began with the launch, the company soon captured the world’s attention when the company launched Burj Dubai. Burj Dubai is known as the tallest suite with the height of 321 meters. Today, the company is maintaining the hotels in Dubai, London, and New York. The major achievement of the company is that the company is competing with the other international brand.
The marketing environment consists of both external and internal factors that can affect the working and business decision of the company.
The macro analysis is conducted by most of the companies with the use of the PESTLE analysis. The PESTEL analysis includes political, economic, social, technological, environmental and legal factors.
Political factors include the changes in the policies by the government such as tax policy, trade policy, political conflicts, and other factors. The benefit Jumeirah Emirates Tower Hotel is enjoying is the healthy trade relations of UAE with other countries across the world (Robinson, et.al, 2016). This provides an opportunity to the company to expand the business in other countries without any political issues. The possibility of political conflict is negligible in UAE so a company can take necessary steps to expand the products and services. The rating to political factor is +4.
The economic factors include the unemployment rate, GDP, purchasing power of the people and the income distribution. The GDP per capita of the UAE is high than the expectations that means that the United Arab Emirates is having the low unemployment rate. The purchasing power of the people is high so a company can easily make the profit in UAE because the people can afford the prices of the luxury hotels in UAE (Bush, 2016). The country is having the highest amount of FDI as the country provides the trade opportunities and this leads to the competition in the market. Though, the hotel can expand the amount to provide the innovative services in the market and can retain their customers. This will reduce the threat of the company and company will have an opportunity to win the hearts of the customer by providing innovative services. The huge profit will open the gates for the company to open outlets in other countries. The rating to economic factor is +4.
The country includes people of different cultures and religions and these people believe in living the comfortable lifestyles. So the people of UAE can raise the demand for the products and services provided by the Jumeirah Emirates Tower Hotels. Though, the change in the demand for the services might impact the sales and revenues of the company (Adamkasi, 2017). These factors might create the impact on the decision of the company. The rating to social factor is -4.
The technology advancement is creating an impact on each and every business; similarly, the hotel industry is also getting affected due to the technology advancement. The youth generation of UAE is used to with the technology advancement and this increases the demand of people by the Jumeirah Group along with this the company is ready to spend the amount for the purchase of the advanced technology. Though, the company believes in providing the innovative products which are possible with the use of technology. So a company should make use of technology for increasing demand and expand the business across the borders (Mariani, et, al., 2016). The rating to technological factor is +4.
The environmental and weather changes can directly impact the hotel industries. Hotel industry can impact the environment this is the reason company have to fulfill its corporate social responsibility. The company is using innovative ways through which they can sustain the resources and energy. The company started strategy “Going Green” in which the company installed motion sensors with the help of which the company can switch off lights and set back air conditions at a set temperature which helps the company to save the energy. The company is also following the energy and water saving initiatives and Waste Recycling (Jumeirah Group, 2017). The rating to environmental factor is +4.
The legal environment plays a vital role in the expansion of the business. The laws and regulations create an impact on the working of the country. The company has to follow certain laws such as health and safety laws, minimum wages act and some other trade laws can affect the expansion of the business in other countries (Bush, 2016). The changes in the laws of the country can impact the operation of the company in Dubai. The rating to legal factor is -4.
The final index of the PESTEL analysis on the company is derived by dividing the sum of the 6 factors rating with 24. The decision rule is that the overall macro-environment in which company operated is favorable because the index is more than the greater than 0.45.
Objective and Goals
The SWOT analysis of the Jumeirah Group shows the internal and external analysis in which the strength and weakness is internal analysis and opportunities and threats are external analysis.
- Jumeirah Group is located in Dubai which is well-known place for the tourist most of the people like to visit the place which motivates the company,
- The company provides the diversified products and services to the customers that make it different and works as a strength for the company.
- Considering the living standards the company offers different and attractive packages to their customers which helps the company to deal the competitors (Jumeirah Group, 2017).
- In Jumeirah Group, many employees are working who belongs to different nations and have their own culture this leads to the cultural differences which affect the working of the company.
- The economy level of the business or the industry might get affected because the Dubai is known as the most expensive city. This might reduce the traveling and tourism which affects the sales and revenue of the company.
- The company should make the price affordable for the people as this is the only way to enhance the local as well as the foreign customers.
- Initiatives taken by the government of UAE open the door for the company to expand the business in the Dubai or across the boards (Jumeirah Group, 2017).
- Dubai is considered as the tourism and business hub ad it has the high business growth prospects.
- The development of the numerous cost-effective and stirring competitive places like Muscat, Kuwait city, and Doha is becoming a threat to the company.
- Lack of training and development to the human resource in the hotel industry is becoming a barrier for Jumeirah Group (Jumeirah Group, 2017).
The hotel industry is the growing industry especially Dubai, the company should make use of their strength to grab the opportunity by doing so a company will achieve the success. The company should consider the threats and for that, the company can make the competitive strategies along with this the company should try to convert their weakness into their strength.
Corporate social responsibility is a business approach that contributes to the sustainable development by providing social, economic and the environmental benefits to all the stakeholders (Tai, and Chuang, 2014).
The pyramid of corporate social responsibility includes philanthropic, ethical, legal and economic responsibilities.
The company believes in fulfilling the corporate social responsibilities and this is the reason company deliver its business in a sustainable manner that contributes to the social-economic growth of UAE (Suliman, Al-Khatib, and Thomas, 2016). The company also believes in promoting UAE’s culture, heritage and promote the environment by implementing the long and lasting strategies in its operation. Some of the corporate social responsibilities are discussed below which shows that the company follows the pyramid of CSR (Capaldi, 2013).
- The company supports the external organization who promotes the sustainability; EEG (Emirates Environment Group), this group protects the local environment through action programs, education and community involvement. DTCM (department of tourism and commercial marketing) also promote the suitability by participating in Dubai Green Festival (Jumeirah Group, 2017).
- The company also believes that the social and economic initiative. Jumeirah Emirates Tower lends a hand to DCSN (Dubai Centre for special needs, an NPO that provide special care to disable children's) along with this the company promotes the health campaigns (Green Globe, 2013).
- The company incorporates local culture and heritage through Iftar celebrations which are linked with the spirit of stay different.
- The company believes in Energy and Water saving, for this, the company made use of different innovative technology that helps the company to fulfill this ethical responsibility.
- The company is also focused towards the waste recycling; Jumeirah Emirates Tower is focused towards the waste segregation and recycling. Paper, glass, metal, aluminum, plastic, and used cooking oil is included the waste recycled categories. This shows that the company wants to generate the environment protection (Jumeirah Group, 2017).
The Jumeirah Emirates Tower Hotels target the different segments of the country which include demographic, behavioral, and geographical (Firat, Turker, and Metin, 2014). The company provides the services to the people having the age group of 18-25 and 25-65, both male and females. The people having the professional business and are involved in the business are targeted by the company. The company target to the people who believe in the lifestyle and the brand status. The people who think that the services provided by the company diversify and unique are also welcomed by the company as the perception of the people varies.
The hospitality industry is showing a rise since 2000, the hotels just raised under 400 with 25,000 rooms to over 670 properties offering approximately 98,000 rooms. This shows the number of tourists who visit Dubai was over 14.9 million in 2016. At that time the company target the audience and expanded the international portfolio of luxury hotels to 6,028 rooms across the world (Dubai Holding, 2017).
The positioning defines the position of the company in the market among the competitors. The company is looking to leads the position of having the luxury hotel and the customer or target audience also believes that the company a having the position in the market (Hollensen, 2015). The company comes in the graph having high quality with affordable prices. The company is able to compete with the competitors because the make use of the innovative technology and along with this the company accept the changing environment which helps the company to face the competition. The company is able to provide the customer satisfaction which enhances the market share of the company.
Recommendations & Conclusion
It is recommended that the company should expand the business in the other countries and should prepare the financial estimation. The company should make use of promotional strategies to promote their product in the market.
The report talks about the Jumeirah Emirates Tower Hotels, which is a hotel situated in Dubai< UAE. The main product of the company is the luxury accommodation facility that helps the company to achieve the success in the market. The report includes the factors that can affect the working of the a and the SWOT analysis which helps the company to identify the opportunity. Furthermore, the report includes the CSR followed by the company and the target market and positioning of the company.
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