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Caroline Borrelli Professor Zacchilli Managing Quality Services 27 October 2011 The Glorious Hotel Introduction $100-million-plus hotel. 650 Room Hotel. Under construction, started marketing strategies a year in advanced. Located in Chicago. Had to get rid of a consultant that was charging $2,000 a day. Glorious Hotel was joining a prestigious line of luxury hotels. Has strong convention and meeting facilities. Glorious corporate considered itself to be a premier operator of large luxury hotels. Richard Smith, Chairman and Chief Executive Officer of Glorious Hotel interviewed with media. His responses to a lot of questions did not answer the questions that were asked. Also he doesnt think that there are new ideas, to him all ideas are just repeats from years ago.

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The Glorious Experience There was a convention held at the Glorious Hotel. Attendee of convention stayed at the hotel a year after it opened. Checked into hotel at about 10:00pm. From desk clerk to bellman, everyone was efficient and friendly. He asked the bellman for a recommendation to grab something to eat. Bellman told him about the Primavera Restaurant and the Primavera Bar. The bar was only open until 11:00pm, so he set his bags in his room and headed down to the bar. The Primavera Bar was separated from the restaurant. The bar had about 125 seats plus about a dozen bar stools. When he entered the bar he was jarred by the noise of the television that was playing Monday night football. There was only two other people at the bar and a couple in the far, far corner at the table. None of which were watching football. Waitress and Bartender on duty. He stood waiting until they finished their conversation with each other. Then the waitress came over and asked if she could be of help. He had to shout over the football game. He asked about getting a snack and the waitress reached over to a table and grabbed a menu and handed it to him. She then said sit anywhere and she returned to the bar. He sat at a table behind a pillar as to block out the television screen but not the noise.

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Ten minutes later the waitress came over to take his order. He inquired about the wine by the glass; she said she would find out for him. Five minutes later she returned, the wine was a cheap Italian wine at $8 a four-ounce glass.

He ordered it with shrimp and pasta. There were peanuts on the tables except his so he got up and grabbed a bowl from another table.

The peanuts were too soggy. He received his wine. He asked the waitress if many people come in to watch football. Her response was do you mean employees or guests?

20 more people walked in while he was eating and out of the 20 only two stayed. When he returned to his room the bedside light and radio were on. The radio later went off by itself.

The bed was turned down. The quilt was heavy and expensive and was placed in one of the two plush and comfortable chairs.

The chairs were next to the desk/side table. There were four pillows on the queen bed; two were feather pillows and the other two standard.

On the night stand next to the bed there was a chocolate basket, which was made out of chocolate, which contained six rich expensive chocolates. With this there was a card from the General Manager welcoming him.

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The room was quit large with a great layout, about 400 square feet in the shape of a parallelogram.

It contained a large desk, two chairs, a long dresser, and a separate television table. There was a full vanity section, a bathtub and basin section, a large walk-in shower, and a toilet section. Each section could be shut off from one another.

There was an automatic light in the closet, with removable hangers. The room rate was $240 single, $280 double. He was only paying $115 a night for the convention rate.

Other amenities that were included were: Over the washbasin was a tiny TV on which didnt work.

No pay TV and no special movies were offered. There were two terry-cloth robes hung in the closet. Phone by the bed, plus a high tech one on the desk. When looking for the hotels number to the room to give to his daughter it was nowhere to be found.

There was a stand-up electric shoe polisher, plus an offer of a free shoeshine if you hung your shoes between the hours of 11 and 6.

Three large, pink bars of soap, one in the basin, tub, and shower, a French Mill soap, along with Glorious shampoo, conditioner, body lotion, and shower cap.

He took most of this home with him in his suitcase. They replenished the soap every day even if they were hardly used. In the shower there was no place to set soap but on the floor. There was also a sewing kit and notices of number to call if need anything else.

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8:30am he went to breakfast at the Primavera Restaurant. Ten people were in line. There was a very enthusiastic and friendly matre d. The reservation phone rang frequently.

He was seated within 10 minutes. At the conference in the middle of the tables were flower arrangements that were too big so that you couldnt see eye to eye the person across from you.

Second night he ordered room service and a three-quarter-liter bottle of Smirnoff vodka was $52 and a steak was $22, so he ordered becks and ordered out.

Trade magazine said that is was doing barely 50% occupancy, in a city running 70% overall.

It also stated that it might have to reposition as a second-tier luxury property.

State the Problem The problem at the Glorious Hotel is their marketing strategies. List The Symptoms Barely doing 50% occupancy in a city that is 70% overall. Trying to keep up with being a luxury property, by spending too much money on little things (i.e. chocolate baskets, replacing the soap daily even if barely used). Bar is empty when there is Monday night football. Guests order out instead of room service.

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List Alternatives Solution A The Glorious Hotel needs to do a SWOT analysis and come up with new strategic marketing plan. o Pros to SWOT analysis. 1. A source of information for strategic planning. 2. Builds organizations strengths. 3. Reverse its weaknesses. 4. Maximize its response to opportunities. 5. Overcome organizations threats. 6. It helps in identifying core competencies of the firm. 7. It helps in setting of objectives for strategic planning. 8. It helps in knowing past, present and future so that by using past and current data, future plans can be chalked out. o Cons to SWOT analysis 1. Price increase. 2. Economic environment. 3. Insufficient research and development facilities. 4. Poor industrial relations. 5. Lack of skilled and efficient labor. o Pros to Strategic Marketing Plan 1. Identifies needs and wants of consumers. 2. Determines demand for product.

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3. Outlines measures for generating the cash for daily operation, to repay debts and to turn a profit. 4. Identifies competitors and analyzes your products or competitive advantage. 5. Identifies new and/or potential customers. 6. Allows for test to see if strategies are giving the desired results. o Cons to Strategic Marketing Plan 1. Identifies weaknesses in your business skills. 2. Leads to faulty marketing decisions based on improperly analyzed data. 3. Identifies weaknesses in your overall business plan. 4. Creates unrealistic financial projections if information is interpreted incorrectly. Pick a Solution The solution that I chose was to do a SWOT analysis with coming up with a new strategic marketing plan. I chose this plan because a well written, comprehensive marketing plan is the focal point of all business projects because it describes how you plan to attract and retain customers, the most crucial aspect of a business. Also the marketing plan is essential to any successful business. It is the heart of the business, the basis from which all other operational and management plans are derived. Marketing offers a business a lot of information that if applied correctly practically can ensure it success.

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The SWOT analysis goes hand in hand with developing a strategic marketing plan. A SWOT analysis is a strategic planning method used to evaluate the strengths, weaknesses, opportunities, and threats involved in a business project. SWOT analysis determines what may assist the firm in accomplishing its objectives, and what obstacles must be overcome or minimized to achieve desired results. This will help Glorious Hotel because they are marketing in the wrong tier level (luxury), and they are not marketing to the right customer, and guests. By doing the SWOT analysis along with a new strategic marketing plan it will help Glorious Hotels occupancy percentage, and help them cut costs on small things. Implementing the Solution The people that will implement this will be employees and a marketing team. Employees always market a business to friends, family, and people they meet on the street. There will be a marketing team that will meet and put together and conduct the SWOT analysis and come up with the strategic marketing plan. Employees will market the business all the time by wearing their uniforms or wearing a name tag. The marketing team will have 8 months to develop a SWOT analysis with a strategic marketing plan. I. II. Statement of the Marketing Goal Marketing Objectives for the Project A. Overall Objective B. Primary Objectives (each is assigned and given a deadline of 2 weeks)

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C. Sub-objectives for every primary objective (each is assigned and is given a deadline of 2 weeks) III. Target Market Segments A. Identify B. Why selected C. Desired exchange IV. Marketing Strategies A. Main strategies 1. Market Perception 2. Market Development 3. Service/program Development 4. Branching out B. Strategy Development by Target Group 1. Target Group A (Potential Guests) 2. Target Group B (Locals to utilize bar and restaurant) 3. Target Group C (Returning Guests) C. Promotional Tools V. Monitoring Techniques

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A. Progress Reports B. Timeline C. Outcome Measurement Marketing Program Product: Features, brand name, service, warranty Price: Discounts, list prices, allowances, credit terms, and payment periods for business accounts Promotion: Advertising, personal selling, sales promotion, publicity Place: Outlets, networks, coverage, transportation, stock level SWOT Analysis Strengths o What do you do well? o What unique resources can you draw on? o What do others see as your strengths? Weaknesses o What could you improve? o Where do you have fewer resources than others? o What are others likely to see as weaknesses? Opportunities

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o What opportunities are open to you? o What trends could you take advantage of? o How can you turn your strengths into opportunities? Threats o What threats could harm you? o What is your competition doing? o What threats do your weaknesses expose you to?