VICTORIA COURT SALES PROMOTION PLAN

SUMMARY OF FACTS

Victoria Court group of drive-in hotels is a unique business in the hospitality industry that caters to couples, individuals, groups and families in need of a private place for the purpose of having a good rest, private conversation, or clandestine romance.

It also offers the following amenities: KTV, cinema, bar, leisure and restaurant business.

Victoria Court’s vision for the next five years is to be the leader in terms of market share in:[1]

Due to an increase in competition, Victoria Court management decided to focus on Product Development as a strategy instead of competing head-on in lowering prices. Product development includes upgrading facilities and introducing themed motifs to target a different segment of the market.

Industry Situation:

The entire industry jumped by 136% from 2003 to 2005. The total number of guests in the Pasig area in 2005 neared 3,500 per day of which 15% (525 guests) is the combined shares of the Victoria court hotels in Pasig which is smaller than those of the sales leaders Dahlia and Daisy.

  

Internal Data shows the following influx of guests:

Data also shows the following peak/off-peak months:

Competitors

Target Market

Victoria Court Product Offerings:

Room Rates:

Food and Beverage:

Victoria court offers reasonable priced Food and Beverage and room service is available 24 hours with a 30 minutes serving time guarantee.

Income Statement

PROBLEM STATEMENT

How can Victoria court increase its sales despite the increase in competition in the Pasig area?

PRIMARY TARGET

The primary target market of Victoria Court is walk-in, free-travelling guests and couples that seek a place with privacy for the purpose of rest and recreation.

SALES PROMOTION OBJECTIVE

To increase the revenues coming from sales promos by 30% by the end of 2006.[2]

SALES PROMO OPTIONS

Daytime Discount

Promo Idea: 20% off on standard, de luxe and suites

Promo Duration: Monday – Sunday, from 8am – 3pm (Shift 2)

Target market: Free-travelling guests, night-shift workers (i.e. call center agents)

Rationale: Since there is an increase of establishments in the area and night-shift workers, introducing discounts in the slow-moving timeslot would significantly increase walk-in guests. Primary objective is to provide a venue for sleep.

Mid Shift Madness Promo

Promo Idea: 10% off on standard and de luxe rooms with one Free Meal
Promo Duration: Monday – Sunday, from midnight to 7am (Shift 1)

Target market: mid-shift workers

Rationale: Since call center operations are shifting in nature, this will target mid-shift workers whose work ends around midnight to 4am and who lives far away from their workplace. This will mostly target women who feel unsafe going home at an ungodly hour.

Free Meals for Two 

Promo Idea: Free breakfast and lunch for two for longer staying clients (rooms: Suites and de luxe)

Promo Duration: Monday – Sunday, exclusively for 24 hours stay-in customers

Target Market: travelling guests

Rationale: Free meals will be offered for Suites and De Luxe customers for a 24-hour stay in Victoria Court. This is not available for standard rooms since this will primarily target value-for-money conscious guests. This will also avoid filling up all the standard rooms during peak hours in order to maximize room usage.

Holy Week Special Pricing

Promo Idea: 60% off on Suites, De Luxe and Standard rooms for off-peak season

Promo Duration: Holy Week

Target Market: In-transit travelers

Rationale: Since metro manila is a gateway from all travelers coming from the provinces and international flights, the Holy Week Special Pricing will target those who are in transit to either the province or going abroad. The aggressive pricing will help encourage travelers to check-in instead of the pricy hotels near airports, bus terminals and sea ports.

 Succeeding Visits Rebates

Promo Idea: 5% off on second visit, 10% off on third visit, and 15% off on 4^th visit within one month in all rooms

Promo Duration: May - December

Target: Couples, families and groups.

Rationale: This will generate a database that can be used to send promotional items and ads. The concept is to generate repeat “purchase” in a month period. This can be done during lean months.

Peak Season Price Reductions (PSPR)

Promo Idea: 15-20% off limited to 40% of entire room capacity (suites, de luxe and standard rooms)

Promo Duration: January – February

Target: Couples

Rationale: Since this is the peak season where guests are guaranteed to check-in, a limited-room discounts structure will be implemented to acquire more bookings versus the competition. 40% of the hotel’s capacity will be offered for discounts, first come first serve basis with a non-refundable down payment.

RECOMMENDATIONS

In order to achieve the business objective of increasing revenues, the sales promo that would most likely help achieve it are the following:

The reason behind the recommended promos is that it can run during the lean season as well as target the insufficient usage of rooms during off-peak timeslots. Since there is already an indicator that the 4pm to 11pm shift has a steady flow of customers, targeting the slow-moving timeslots will definitely add to the overall revenue.

PROGRAMS

Operational Plan

KRA/KPI and Operational Objectives

Action Plan

Budget is based on 2005’s Advertising and Promotion budget not exceeding the amount of Php 471,915.

Gantt chart: