Business Plan of the Sydney of Art Gallery Hotel

Question: Describe about the Business plan of the Sydney of art gallery hotel? Answer: An introduction: In Sydney there is one art gallery hotel which provides value for money services for the tourists. The issue here is that the hotel is small and the business operation is also not so organized. Therefore the business plan of art gallery hotel, Sydney consists of the following features. To improve the business operation increasing efficiency and bringing more professionalism in work. To make efforts to increase size if possible. To attract more customers. To apply changes in the management system so that the business grow and prosper. Business premises The business premises are located near the popular area where all the tourist attractions are located. This way the hotel has to offer a view of the rich cultural background in Sydney, Australia. The tourist therefore has easy access to the favorite tourist spots along with the local cultural and art events that are an attractive feature of the Sydney area. In Sydney there is only one art gallery hotel exists. However, the main problem with the hotel is that it is small and the entire management is not so much organized. The main purpose of the research will be to identify whether establishing an organized art gallery hotel in Sydney will be very much feasible or not. The market Market includes the customers who avail the benefit of the facility and services offered by the hotel. The business actually tries to identify the potential customers who are interested and in need of the service. This way the efforts are made to attract those potential customers through display of services and addition of schemes so that the value for money can be realized by the customer later on. Target market The target market for Art Gallery Hotel includes tourists who come to the place for sightseeing. These people stay in hotel for few days and view the surroundings of Sydney which they are tempted with. The target market for Art Gallery Hotel includes the followings. 1. National customers who come from distant places within Australia to view the beauty of Sydney. These people include the art loving people who prefer sight-seeing of local attractions like museums, monuments and old buildings in Sydney. 2. International customers who come from United States of America, United Kingdom and various other Asian countries to view the rich cultural heritage of Australia. These include people who are tempted towards sight-seeing of old monuments as well as new modern structures around the world. Sydney therefore meets both the requirements and offers them a convincing and realizing stay. Marketing strategy The marketing strategy includes the efforts made by the company to attract the target market potential customers. These potential customers can appreciate sales after the application of well-planned marketing strategy. These way efforts are made to achieve the sustainable competitive advantage for the company so that it grows and prosper in future. Art gallery hotel needs to follow a proper marketing strategy policy to attract the customers which includes the steps that are required to be followed. Understanding the requirements of the customers. At this stage the customer requirement is required to be identified and recognized by Art Gallery management so that the required changes are brought within an organization and the marketing strategy therefore can concentrate on bringing those improvements and displaying them to the customer through advertisements. Analyzing market conditions. The market conditions needs to be analyzed so that the appropriate marketing strategy can be framed out. The market conditions at present is not so business supportive. After the slowdown of 2008, people are less with lesser disposable incomes which has affected their abilities to spend more on leisure. Therefore the Art Gallery Hotel should offer plans which are cost effective and proves value for money. Analyzing competitors and competition. The competitors acts and marketing strategy that adds to the competition requires to be analyzed well in advance. This will help in framing schemes and promotional program initiated by Art Gallery Hotel proves cutting edge advantage for the potential customers who can compare its features with other hotels. Research distribution Proper research is required to be made by the management of the Art Gallery Hotel so that the data mining and data analysis is done on the reliable data inputs that are relevant to the research. Also the research will be made to bring legal applications in the hotel set up which includes the followings. Registering of the business name. Registering for Australian Business Number or ABN. Registering for Tax File Number or TFN. Register for Pay As you Go Or PAYG Register for Goods and Services Tax or GST. Register for Payroll tax. Register for Fringe Benefit Tax or FBT. (AustralianGovernment, 2015) Defining the marketing mix The defining of marketing mix like product, promotion, place, price etc should be done with a view to keep the customer as a central point so that they can be tempted towards the purchase of hotel facilities and services. Making financial analysis The financial analysis will help in estimating the amount that is required to be spent so that the desired outcome is achieved. This way the changes required can be applied and efforts can be made to achieve customer satisfaction. Framing a marketing strategy At this stage the most desirable marketing strategy is identified which meets the requirements of the business and discontinues the effects of various financial and time constraints. Reviewing the marketing strategy The marketing strategy framed out needs to review at regular intervals so that the drawbacks can be removed and the effectiveness of the marketing strategy can be increased through changes as per the requirements. The marketing strategies can be depicted as follows. Environmental/industry analysis The environment or industry analysis can be done using the Porters five force model which takes into consideration various aspects which are depicted as below. Industry rivalry. Art Gallery Hotel can make industry analysis by identifying the industry rivalry. That is recognizing the other hotels in the area along with their offers and schemes so that the level of competition and the identification of competitors can both be made. Buyer power. The buyer power includes the ability of the customer to bargain. Therefore the buyer power in the area that are looking for hotel lodging facility and related services needs to be identified so that the pricing and service offers are made accordingly to meet the demands of the customers. The buyer power is higher in this case as the customers have a lot more options to select in hotels in Sydney area. Seller power. The seller power includes the ability to fix price and place the service options to the customers. The seller power of Art Gallery Hotel is lesser as the place is small and the management is also not well organized. Threat of substitutes. The threat of substitutes always remains for Art Gallery Hotel in Sydney because there are various other big size hotels and lounges which offer similar services. This way the service of Art Gallery Hotel can easily be threatened with the substitutes offering similar services. Threat of entrants. The new entrants includes new hotel set up that are actually increasing in the Sydney area. This has resulted in increasing threat to the business of the company which requires immediate reformation for existence and sustenance. Customers The customers of the Art Gallery hotel are actually tourists who are either domestic or international. These tourists mostly constitute the art lovers who come to the city for sight-seeing the monuments, sculpture, old building and relive the cultural heritage of Australia. These customers range from young to old as there is no limit or age for art loving and moving around. Also the customers from different background, religion and countries come to Sydney to view its beauty and cultural heritage. (Porter, 2008) Customer demographics The customer demographics for Art Gallery Hotel include the followings. 1. The tourists coming to Sydney includes middle aged people who are followed by children and other family members. 2. The age range for the people coming in Sydney and staying at Art Gallery hotel ranges between 5 years to 65 years. This way there is no age factor that affects the tourist from coming to Sydney. 3. Mostly the married people come to Sydney with a view to give their families a good time at the cultural rich place. 4. There is no gender factor that affects the tourism coming to Art Gallery Hotel for sight-seeing in Sydney. Key customer The Key customers of the Art Gallery Hotel are mostly those people who are in search of value for money These people are mostly low to middle class people who wants to save money while touring to different places The key customers therefore are cost saving people who wants to safeguard their financial status while travelling by buying services of cost effective hotels(Ballou, 2007). Customer management The customer management can be achieved by Art Gallery hotel by providing the customers with the quality of service. Also the support to the customer during stay with the effective management can help the customer achieve satisfaction from their stay. This way the sales of the hotel can increase and more customers can be attracted. SWOT analysis SWOT analysis can help the Art Gallery Hotel in realizing their abilities and recognizing their inefficiencies so that they could take steps towards improvements. This can be discussed as follows. Strength Art Gallery hotel follows cost effective operation. The hotel is small in size therefore making it easier to handle through limited employees. Weakness The management of the hotel is not effectively working to meet up to the expectations of the customers. Hotel is not managed properly by its staff members. Opportunity It is a cost effective hotel service. It is present in the popular market place. It offers value for money. Threats A number of other well managed hotels are also present in the same area. The hotel lacks effective care and management as compared to other hotels. (Armstrong, 2006) Promotion and advertising Promotion and advertising are methods that could help in attracting potential customers towards the hotel. Art Gallery Hotel can use various promotional and advertising techniques to attract customers which includes the followings Offering heavy discounts through online booking. Offering discount coupons and vouchers to the customers looking for stay in Sydney area. Offering additional benefits along with the stay package. Advertising hotel name and its value services on the favorite television channels and even after favorite show or game. Hoardings of interiors and value added services on roads to convey the customers about the hotel management and services. (Acharyulu Shekhar, 2012) Risk management Art Gallery Hotel can use the risk management technique to identify and assess the level of risk to the business. This way prioritizing the risks that may cost high to the business can be done. The risk prioritizing for Art Gallery Hotel can be done as follows in the form of high to low risk. High to low risk priority: Competitor hotels in the area. Rising cost of management. Increasing customer expectations. Offering value for money through value added services by other hotels. Decreasing profit margins due to low tourist movement in the area. (Abiodun, 2009) Key personnel The key personnel that can bring the required change is the higher management of the hotel who can apply the required applications and changes in the hotel management so that the effective outcome is finally achieved. Current staff The current staff will be trained and if required new staff members will be added to appreciate the services provided by the hotel. Service The hotel staying service can be supported with food offering facility by adding breakfast, lunch and dinner. 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