Amber Inn & Suites, Inc.
Final Report
Chief 9862528 賈儒慶
9862512 曹思漢
9862530 黃敬琮
9562522 林鴻儒
9862511 鄭鈞瑋
9862536 姚文宜
Executive Summary
 Define the problem
 Prepare one presentation on April 11 that describes
 Initiative expenditures and outcomes for each of the past 2 years.
 Plan initiatives and budgetary need for fiscal 2005 & 2006.
 Target
 The CEO Mr. James announced that his goal for the company was to achieve profitability
with two year.
 Answer
 Amber Inn should be more focused on business traveler.
Reasons
 According to Amber’s Inn executives, the company is
positioned as a limited service hotel between economy and
full-service hotels. (Page 310)
 Suitable for business travelers.
 According to Exhibit 6, the major customers of Amber Inn
are business travelers.
3. Purpose of trip
2004
2002
Business
79.8%
81.8%
Reasons
 Average payment per room night
 Business Traveler: $96 / per room night (higher)
 Leisure Traveler: $89 / per room night
(Page 308-309)
 Average yearly income from a business man: $81,100 (higher)
Average yearly income from a household man: $72,600
(Page 308-309)
 According to Exhibit 6, less account receivable problems with business traveler.
5. Type of trip and payment
Business traveler paid for by the
company
2004
2002
65.7%
67.7%
Reasons
 According to Exhibit 6,
8. Reason for choosing
2004
2002
Close to next day’s activity
47.5%
47.0%
Personal preference based on
previous experience
48.1%
49.1%
Stayed here before
40.9%
41.2%
Activity 1
 Marketing Budget for next year: Should be more focused on
business traveler
Media
 Magazine
 Newspaper
 Outdoor
 Spot TV
 Cable Networks
 Radio
 Internet
 Maintain the budget of magazines related to business.
Maintain 1/2 budget of 2005.
 Maintain the same budget as 2005 shown in Exhibit 7.
 Cut the budget.
 Cut the budget.
 Cut the budget.
 Cut the budget.
 Maintain the same budget as 2005 shown in Exhibit 7.
 We can save about $5,500,000 based on Exhibit 7.
Activity 2
 Promote the frontier strategy which focuses on the business segment.
Business
Traveler
Frontier
Area
Existing Area
Vacation
Traveler
Estimation
 With activities 1 and 2, the lodging revenue of Amber
Inn can be increased by 7% based on 2005 of Exhibit 4,
 Lodging revenue:
 Total Expense:
$422,625 x (100% + 7%) = $452,208
$438,317 x (100% + 3%) = $451,466
(The Expense includes the AD cost down in activity 1 and frontier marketing expense)
 Net Income: $452,208 - $451,466 = $742
Teaching Note
 Setting Reasonable Communication Objectives
 Developing An Integrated Marketing Communication Mix
•
The information requirements of potential buyers
•
The nature of the offering
•
The nature of the target markets
•
The capacity of the organization
 Marketing Web Sites and Integrated Marketing
Communications
•
Purpose of Marketing Web Sites
•
Leveraging Advertising and Personal Selling with Promotional Web Sites
 Communication Mix Budgeting
•
Communication Budget Allocation
•
Advertising Budget Allocation
•
Sales-Force Budget Allocation
 Evaluation and Control of the Communication Process
Teaching Note
 The Five M’s of Advertising
 Mission
 What are the objectives?
 Money
 How much can be spent?
 Message
 Media
 What medias should be used?
 Measurement
 Advertising Objectives




Informative
Persuasive
Reminder
Reinforcement