CHAPTER TWO MARKETING PLAN 2.1:CUSTOMERS Chepbet’s hotel is based on becoming a destination choice for the people visiting Njoro ,Egerton University and Nakuru city who are looking for a place to get accommodation.Our target market include : i. Foreign International Travel (FIT) These are international guests who come in for either business or leisure purposes. e.g tourists ii. Local Business These are guests who live in Nakuru city and want to have meetings or attend various meetings and conferences. iii. Local Leisure This includes newly wed couples or families looking for a serene environment to relax and have fun. iv. Events and sports These are guests who are coming to either have their own events or are coming to attend events in our hotel. v. Promotions These are guests on complementary sponsorship by a company or an organization. 2.2:MARKET SHARE Chepbet’s hotel directly or indirectly competes with hotels nearby our hotel locations that offer similar services as we do. We plan to have a sizeable market share in the industry and have a high consumer preference for our quality products and services. This high market share will be characterized by increased sales ,lesser efforts to sell more and strong barriers to entry for other competitors. We aim at becoming the market leader in the industry by providing quality services to our prospective customers at market friendly prices. 2.3:COMPETITION A few hotels are located within the same environment as Chepbet’s hotel therefore providing either direct or indirect competition for customer acquisition.The major competition is the Mayo hotel .This hotel provides luxury amenities ,many of which are not necessary for the business travelers and they also charge a high price for them. This hotel does also not offer wireless internet in the sleeping rooms . Chepbet’s hotel plans on establishing a long-lasting relationships with satisfied customers because the longer the relationship stands ,the more our customers understand what we offer them and why they frequently visit our hotel. We take pride in our hotel due to the following reasons: 1. 2. 3. 4. Provision of high quality hotel services Excellent hotel facilities and uninterrupted power supply. Great incentives Excellent customer care Our major competitive advantages include : a. Location We are located in the economic and most popular center of Njoro .This same location has the largest parking space in the area. b. Local and intercontinental dishes in a world class style. c. Excellent world class service : We plan to ensure that our services will be different from that of other hotel providers.Our client follow through will be flawless. d. Highly skilled workforce Our business ethics will ensure a greater service and will strengthen the customer contacts that promote word of mouth marketing and networking. e. Business Amenities Wi-fi throughout the hotel will make working remotely simple for business visitors. f. Relationships We will create a strong customer relationship to help retain our prospective customers and win new customers. g. A highly secured environment h. Long term business experience of the management team i. Affordable rates. 2.4:METHOD OF PROMOTION Chepbet’s hotel will have its own website and advertising .The hotel will also be highlighted in the daily nation magazine every month as a form of advertisement . The channels through which the hotel will be using to get its sale out to the public will include: a. b. c. d. e. f. g. h. i. Online travel agencies Online reservation system Global distribution system Corporate(hotel accountant) Word of mouth Hospitality association group Customer feedback system Customer databases Sales calls and visits 2.5:PRICING STRATEGY We will offer our services at a market friendly price which is affordable to all our customers throughout our trading periods. Since there are no laws prohibiting the operations of a hotel in Kenya we will offer quality services to our customers at affordable prices by considering the different cultures and religions in the country. We will offer different categories of meals at different market competitive prices. Considering the current inflation rates in Kenya we plan to set up a financial strategic plan that will run through our first year to the Fifth year of operation so as to be competitive in the market and avoid the fluctuating market prices of various commodities. Chepbet’s hotel is also planning to liase with the different companies that offer delivery of their goods and services to the customers especially the hotel commodities so as to reduce the transportation costs associated with these commodities to the hotel. Our customers mostly make their buying decisions based on the prices of the services and so it is vital to control the prices of the various services that our hotel offers.We are going to treat all our customers equally regardless of their tribe,gender,occupation,educational level and social class .This will also help us in creating a good customer relationship with our esteemed customers. 2.6:SALES TACTICS This is a highly detailed plan that provides a clear picture of how each department in this hotel will contribute to the achievement of the organization’s goal : Front office department They act as the public face of the hotel and their primary role is welcome hotel patrons and check in guests.They also provide assistance to the guests during their stay. Housekeeping or Laundry department The primary function of this department is to keep the hotel clean ,collect trash,empty wastebaskets,change the bed sheets and make the beds. Swimming pool and gym department This department is solely responsible for the registrationof members and provision of services. Food and Beverage Department which will include the Restaurant, In-room dining and Bar: They are responsible for maintaining high quality of food and service, food costing, managing restaurants, bars, etc. Their operations include preparing food and beverage, keeping the inventory of service equipment, maintaining service quality continuously and managing various catered events. 2.7:DISTRIBUTION STRATEGY This division has the responsibility for deciding where the company should sell and what its prices should be. Their sole responsibility is to sell the hotel facilities. This can also be called the Purchasing Department. Their duties include interviewing of vendors and suppliers, placing orders for goods needed by all hotel departments, keeping record of all purchases and payment, drawing up and signing contracts and agreements for the purchase of all goods and so on. The key resources for business to be able to function includes: i) The hotel building ii) Plants and Machinery iii) Furniture and Fittings iv) Grounds and Gardens v) Human Resources vi) Shareholders Contribution.