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Risk Identification

Discuss about the Promotion and Marketing Research.

Organizations primary focus is on generating revenues and profits from its series of activities (Armstrong, 2014). Marketing is an integral function within the organization that is focused on targeting customers, such that they are influenced to make purchase decision. Marketing plan is a strategic tool that every corporation adopts in order to design and focus on the various marketing activities of the firm. The current report is marketing plan and strategy for Sun Plaza Hotel, which is based in Sydney near Olympic Park, in Australia. The hotel had started its business in the year 1998. Since then the business has been growing, now the company wants to further expand its business, hence the report is aimed at designing and furnishing an unique marketing plan to the company such that it can easily grow. The report includes a detailed description of the various strategies and functions that can be used by the company for its rapid and sustainable expansion (Blythe, 2008). The report is divided into five parts, part A contains the various potential risks that are identifiable for the business, part B has a SWOT analysis for the business on the basis of which the marketing plan will be devised. Part C contains the marketing strategy, Part D has the Marketing plan tactics and part E, the final part contains a detailed presentation of the marketing plan.

This section of the report highlights the various risks associated with the business plan of the hotel.   

Organizational Goal

Risks associated with the plan


Profit maximization; to deliver the maximum to their shareholders and improve the financial performance of the company.

1) The company focuses on the price which is kept premium and cutting the costs is primary goal. Thus a perception is created in the minds of the customers and suppliers and hence the company can lose its goodwill.2) shareholders expectation lies on the short term gain rather than long term profits.

3)the company involved in profit maximization gets so entrenched in a single strategy of making profits fails to react to the sudden downturn in the market and loses everything (Cravens, 2006)


Providing Extreme customer satisfaction and customer delight with excellent customer service with 100% of occupancy.

1) high quality service incurs high cost.2)24x7 manpower availability is required in hospitality sector and absence of manpower leads to over burden and pressure on existing employees which further disrupts the service quality.


Loyal and dedicated employee base

1) Employee layoffs 2) disloyal employee leads to negative marketing and damage the brand image 3) high demand of skilled manpower by the competitors leading to employee resignation.4) operational risk persists.


 To meet the increasing demands of the rising tourism requirements in Sydney with continuous differentiation and growth

1) reduction in the corporate travels 2) corporate reorganisations3) Insurance coverage volatility4) declining consumer confidence (Clow, 2007)


The strength, weakness, opportunity and threat analysis of the company is extremely important as it will enable to determine the appropriate marketing plan for the business (Smith, 2011).


  • High quality of service and high customer service.
  • Australia’s destination has uniqueness and appeals tourists a lot.
  • Innovative amenities and services
  • Free Wi-fi, Pool’s and free outdoor parking
  • Rooms are air-conditioned with flat screen TV, a refrigerator and tea/coffee maker
  • With high efficient staffs working on shifts.
  • Location is the pin point, as it makes easy and convenient for tourists to reach their destinations.
  • Staff can speak your language.


  • Penetration into the global market is still awaited.
  • Its brand name is needs to be internationally known.


  • Australia being a tourist destination demands lots of hotels.
  • Everyone looks for better deals and packages.
  • Travel destination countries in the hospitality sectors are emerging very fast, so a pleasant hospitality needs to be increased among the hotel staff.
  • Rampant escalation is quite vivid so to increase the craving of tourist real -time opportunity are much needed for hotels to explore and bet upon.
  • Another opportunity is by increasing the gaming activities for all.
  • By increasing its service in event managements


  • Major threats are economic downturn, the meltdown has adopt cost cutting in organizations.
  • The recession too has also triggered to renegotiate over tourism habit.
  • Other international and domestic hotels entering rapidly in the hospitality industry.
  • Newer destinations are chosen by the leisure travelers.
  • Hospitality sectors are globally hampered by political turbulence(Aaker, 2008).

The marketing strategy for the company will enable to form marketing plan on the basis of customer, geographical distribution, promotional tactics and other variables as has been listed below (Constantinides, 2006);                      


The main marketing strategy objectives of Sun Plaza Hotel is communicating the unique set of services offered to the hotel guests and directing the focus of the guests to any issues relating to service , quality and value for the money rather than the bottom-line costs involved with their stay (Holzwarth, 2006).

The marketing strategy of Sun Plaza Hotel is to communicate the brand values and building good relations with the customers and suppliers to cater to the changing need of its guests in an effective way.

SWOT Analysis


The Sun Plaza Hotel provides the best personalized service for its corporate travelers. The various services encompasses business essentials in the room like proper internet connection, business desk, and wireless access and also offers easy access to the conference rooms with the wired and non-wired facilities of audio/video conferencing and catering the needs for longer meetings. The high quality services accompanied by extreme personal service had differentiated sun plaza from its competitors and helped in generating repeated business (Pickett-Baker, 2008).


The service and product are sold to the guests with help of direct marketing, advertising, internet and personal selling. The delivery channels are also involved which comprises of travel agents and national reservation systems.


The consistent pricing strategy aiming at providing value added service at reasonable rate rather than devaluing the service and cutting the rate. Various discount offers were also provided by sun plaza group where it provided a winter getaway discount of 20 % for the bookings made for three days and more (Sheth, 2015).


The major focus is on mass communication via advertising in internet and ads printing in various trade and publications. Further it involved direct marketing to its existing employees via texting and messaging the new offers to the already registered mobile numbers of its customer base. Further the personal selling is helpful in attracting the local people which is the most important marketing mix adopted by sun plaza to build long term relationships with the local community.

  • The customer segment of sun plaza included the high and middle income group people who demands personalized service
  • Passerby from the different towns and cities who prefer to spend overnight in an economy room (Layton, 2007)
  • The local and international customers who seek for holidaying at attractive package deals offered by the hotels in coalition with travel companies and it agents.
  • The local people as well as the corporate clients are also the target customer segment that visits the place 5 to 6 times in a year, the hotel provides with all the amenities required for the clients and have corporate arrangements with 3 large international organizations.
  • The younger segment has also found its place in the customer segmentation of the hotel sun plaza.

The major gateway to Australia is Sydney which is a key hub for the pacific region of Asia (Kotler, 2015). This is most popular tourist attraction city in Australia famous for its Sydney opera house and Sydney Harbor Bridge. It is the hub for Australia tourist’s destination and the Hotel Sun plaza operative in Sydney is highly benefited by the demographics of Sydney. Also the Australian Olympics had also provided opportunity for the sun plaza business to expand.

The hotel will primarily attract customers by wide range distribution of mailers and through social marketing tactics. The below mentioned methods provides a detailed description for the same (Zinkan, 2012).

Task #

Name of Task/Sub Task

Completed by When

Person Responsible

Approximate Costs (AUD$`)

Coordination Mechanism


Prepare mailers for mailbox distribution

20 September 2016



1.1 Develop design

10 September 2016


In the Computer

1.2 Get approval from senior team

12 September 2016


Personal and by mailing senior

1.3 Send for printing

13 September 2016


Personal visit to printer

1.4 Get a sample copy for approval from printer

14 September 2016


By E-mail

1.5Getting the sample approved

15 September 2016


Written approval from seniors

1.6 Place order for the required mailers

16 September 2016




1.7 Receive printed mailers

20 September 2016



Personally collect


Prepare team for mailer distribution

12 October 2016



2.1 Prepare coverage estimate & number of persons required

1 October 2016


Computer Excel sheet

2.2 Identify sources of recruitment

2 October 2016


2.3 Shortlisted persons

3 October 2016


2.4 Call persons for interview

4 October 2016


2.5 Finalize persons

7 October 2016


By giving appointments

2.6 Train & assign responsibilities

12 October 2016





Develop a societal marketing plan

15 October 2016



3.1 Design appropriate template for posting in Facebook, Twitter & Instagram

9 October 2016


In the computer personally

3.2 Get approval from Seniors

10 October 2016


In e-mail as well as personally get approval

3.3 Upload advertisement in the social webpages

15 October 2016


The marketing plan for the hotel comprises of several parts as detailed below;

Description of the service

The Australian Hotel Industry plays a pivotal role in providing entertainment to millions and is also a significant contributor to Australian economy (Ringland, 2007).

Sun Plaza Hotel Group has contributed to its community by consolidating the structure of employing 0 and 30 people. High proportions of suppliers are local, contributing to employment and income in their communities.

Marketing Strategy

Average food prices were found to be high but here there is some cross-subsidation. Majority of the income earned by hotel is through selling of alcoholic beverages, live music and community sporting group (Rust et al., 2010).

Sun Plaza Hotel Group vibrant service employs workers in business including:

  • Free Wi-Fi
  • Pools and free on site parking’s
  • Rooms available on cheap rates
  • Package deals inclusive of food, air travel, hotel stay and sightseeing
  • Winter gateway discounts of 20% on three days or more booking.
  • Room services
  • Office Staff
  • Its external and internal ambience
  • Locations

Marketing budget, including the advertising and promotional plan

The marketing strategy’s objective of Sun Plaza is to communicate the unique set of services to its customers or hotel guest. The attempt is to direct the focus of the guests to the issues of quality.

Marketing goals and strategies are theoretical objectives. But the action plan and marketing budget brings them to life. These two are the key tools for implementation.

The marketing budget of the hotel is structured to reflect strategy differentiation. Monthly internet advertising expenses, strategic link with car hires, banner ads, destination and airline management companies, interim monthly press ads to communicate message to key corporate clients and websites to drive business to the hotel. Hotel PR events are included in the Public Relations expenses, sponsorship funds and participation at local functions. The total revenue required to support the marketing budget of the hotel is a moderate amount (Gurău, 2007).

Promotional plan of the hotel focus on mass communication via print ads in trade publications and ads on internet. Public Relations activities continue to play an important role in the promotional plan, presenting the hotel as a supportive member of the community and by participating in local events.

Description of the business location, including advantages and disadvantages for marketing

Sun Plaza Hotel group is located in the heart of the Sydney Olympic Park, surrounded by 640 hectares of parklands, all phones Arena and a short walk from ANZ stadium. A preferred location for leisure travelers and business. Sydney Olympic park is a large sporting, leisure and cultural complex in the Inner West Area of Sydney. Official suburb of Sydney, commonly known as Olympic Park. The area was primarily redeveloped for 2000 Olympics (Hollensen, 2007).

This one of the Sydney’s best kept secret. A magnificent and very large historic residential homes and streets of Home bush with off street parking, local shops and cafes and walking distance to the station. This place is the perfect choice for Corporates and leisure travelers.

As the place is famous for its Olympic park and Home bush, many hospitality industries have plunged into this area. There is good number of hotels and motels in and nearby Sydney Olympic Park. There is a vast competition among all to survive in this hospitality industry. They have lucrative offers to attract the customers or guests. And most travelers choose the cheap and best deals.

Customer Segment

The marketing plan should be structured in order to enable the Hotel to achieve its strategic goals set in terms of increasing the overall revenue generation and having a competitive edge over its competitors in differentiating the products and services.

The pricing strategy should be based on the differentiation objective, and making the availability of services in a cost effective manner and provide value added services as opposed to devaluing and discounting the products and services (Adkins, 2007).

  • The prices should cater to the needs of the high profile customers as per their status and profile as if there are unavailability of prices for the potential customers with a higher budget range hotel sun plaza can loose the customer to other hotels.
  • If the price is very low as compared to the customer willingness to pay more the hotel can lose the profit margin.
  • Also if the prices are too high for the lower budget travelers group the hotel can loose out the bookings (Baker, 2016).
  • So pricing is a tricky part in an hotel industry hence the pricing grid needs to be prepared in comparison to its competitors to have an winning age. Evaluating the client’s needs, clients who are price sensitive, clients valuing the services and experiences and for what all service they are ready to pay will be helpful in formulation of excellent pricing strategy.

Proper segmentation of market will help the company to maximize profit for the different line of business. Presently the sun plaza hotel is aiming to enter the market of New Zealand, Adelaide, Western Australia. The hotel is trying to attract the corporate client in this geographical areas and building amenities and facilities to cater to the corporate client requirements and to service the frequent corporate travelers (Fletcher, 2013).

The identification of the proper market segment will help in future decision making, accurate reporting and tracking. Further the market segment should be accessible in terms of communication and distribution channels which will allow flexibility in marketing budget and cost incurred in sales effort, the substantiality of the market segment to be profitable will further justify the resource requirement and allocation for reaching the wider market segment.


Organizations utilize a variety of marketing strategies and plans in order to achieve their target marketing objectives. The better the marketing strategy and the more goal oriented it is, the better it is able to target its desired segment. Hence these various strategies as well as tactics are aimed at achieving the desired goals of expansion and revenue earning for the current organization Sun Plaza Hotel. The company can easily achieve growth and expansion if it is able to apply the proposed marketing tactics.


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Baker, M.J. and Saren, M. eds., 2016. Marketing theory: a student text. Sage.

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Cravens, D.W. and Piercy, N.F., 1994. Relationship marketing and collaborative networks in service organizations. International Journal of Service Industry Management, 5(5), pp.39-53.

Fletcher, R. and Crawford, H., 2013. International marketing: an Asia-Pacific perspective. Pearson Higher Education AU.

Gurău, C., 2007. Porter's generic strategies: a re-interpretation from a relationship marketing perspective. The Marketing Review, 7(4), pp.369-383.

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