The [Class-Apart] Bed & Breakfast Marketing Plan
The Class-Apart Bed & Breakfast is a delightful Bed & Breakfast reverie to be located in Central Newcastle, United Kingdom, in the New Bridge Street West, New Castle Upon Tyne, Percy Street, B1307. This is a strategic location because one of restaurant’s close neighbors is the Newcastle University with an estimated population of 18,000 students. The owner will run the Class-Apart Bed & Breakfast in a newly acquired and expanded house. The Class-Apart Bed & Breakfast will have 14 guest rooms. The Class-Apart Bed & Breakfast competitive advantages will include the owners’ dedication to this business. In essence, the owner will look forward to pampering her guests, which implies high quality services deliverance by the employees. Besides, The Class-Apart Bed & Breakfast will have excellent facilities to ensure customer comfort and utmost satisfaction. The target markets of The Class-Apart Bed & Breakfast will include the 18,000-student population, and the urban core population of males and females aged between 35 and 55 years, as well as weekend gateway customers. The Class-Apart Bed & Breakfast will employ room based-pricing where, the room and accompanied service intensity will determine the prices payable. This inn will further cultivate strategic relationship with the University of Newcastle, besides use of website and Bed & Breakfast association letters as the channels of promotion. The Class-Apart Bed & Breakfast will track and evaluate the effectiveness of these promotion channels through customer attendance and their respective percentage contribution to the sales and profitability of the restaurant.
Table of Contents
The Class-Apart Bed & Breakfast will be a small, attractive bed and Breakfast inn located in the New Bridge Street West, New Castle Upon Tyne, Percy Street, B1307. The Class-Apart Bed & Breakfast will offer a relaxed milieu setting for change scenery, weekend gateways, family occasions, sports or cultural events, and University of New Castle events. The Class-Apart Bed & Breakfast will provide a large room for guests to relax and socialize. In the Class-Apart Bed & Breakfast, customers will receive personalized service and attention in order to meet the diversified needs and the set heath standards, in conformity with the Foods Standards Agency (2013) regulations. The Class-Apart Bed & Breakfast will in addition offer a wonderful breakfast feast. Besides, the Class-Apart Bed & Breakfast will manage any customer dietary restrictions.
This marketing plan reviews The Class-Apart Bed & Breakfast strategies of improving its operations.
The Class-Apart Bed & Breakfast vision is to not only become an excellent bread and breakfast restaurant in Newcastle but also be an excellent citizen of the UK by enhancing the lives of the people they touch. The mission statement is to provide “bread and breakfast services of the highest quality and to maximize returns for the benefits of its shareholders and employees”. In pursuit of this mission, The Class-Apart Bed & Breakfast will strive to communicate and drive realization of these objectives, though effective collaboration with key stakeholders including the top management, employees, suppliers, and other stakeholders.
Since 2008 when economy began to face a crisis, the travel and tourism industry revenue plunged by more than 25 percent (Blanke & Chiesa, 2013). Currently, the economy is recovering from this recession, positing that the industry sales will grow. The sales revenues will grow in part because of the excellent services provided by Bed and Breakfast industry in this nation. In fact, the travel and tourism competitive index report ranks United Kingdom at number five out of a total of 139 countries in 2013, a rise from the position seven registered in 2011 (see Blanke & Chiesa, 2013). According to Blanke and Chiesa (2013), this growth is attributed to the generally supportive policy environment and the excellent human resource base. Nevertheless, U.K has a poor assessment on price competitiveness, owing to the high tax rates on tickets and airport charges worldwide (Blanke & Chiesa, 2013). Conversely, the increase of airfare will make non-local vacations less cost effective and less practical (Blanke & Chiesa, 2013). Currently, people are considering bred-and-breakfast as unique location spot rather than flying.
In order to move towards the expected growth in future, The Class-Apart Bed & Breakfast will seek to maintain positive and steady growth. Again, the Class-Apart Bed & Breakfast will try to convert new customers into long-term customers. Furthermore, The Class-Apart Bed & Breakfast will work towards the increase of occupancy in each subsequent year.
Among the great strengths of The Class-Apart Bed & Breakfast is the location. The Class-Apart Bed & Breakfast will be located in New Bridge Street West in Newcastle, near the Newcastle University. This area forms part of an essential businesswise area in Newcastle because of the presence of Haymarket that will attract customers who may eventually converge in A Class-Apart Bed & Breakfast.
In addition, The Class-Apart Bed & Breakfast will have fantastic facilities. For instance, The Class-Apart Bed & Breakfast facilities will include comfortable rooms that are smartly furnished, wireless connection, ceiling fans, and TV. Through A Class-Apart Bed & Breakfast, one will find a breakfast room in four independent tables’ customized by common recreation room with DVD reader, TV and sofas. Besides, The Class-Apart Bed & Breakfast will have a moderate vending machine with snacks and drinks, and 24 hours per day and a balcony specifically for smokers. Furthermore, The Class-Apart Bed & Breakfast owner is passionate about this hospitality industry. The owner has a great knowledge and experience in the Hotels Industry which posits application of knowledge, insight, and competence in fostering growth and development of this business. Consequently, the owner will dedicate a lot of time, effort, and energy in the development of this inn.
In spite of a repertoire of excellent facilities envisioned, The Class-Apart Bed & Breakfast might struggle initially, owing to weak brand visibility. The weak brand visibility is associated with cutthroat competition emanating from the concentrated hotel market in Newcastle. Some of the notably strong competitors in the bed and breakfast inns include market include the more established competitors such as the Malmaison Newcastle, Jurys Inn Newcastle, Royal Station Hotel, Copthorne Hotel Newcastle, and The Vermont Hotel. Besides, The Class-Apart Bed & Breakfast will be a small enterprise, with only 14 rooms. This implies that, per day, it can only accommodate 14 customers, in its bed services. Comparing The Class-Apart Bed & Breakfast with other well-established bed and breakfast inns in Newcastle, its sales volumes are projected to be relatively small. In addition, The Class-Apart Bed & Breakfasts small rooms’ numbers implies that it cannot accommodate people willing to stay together, such as those attending town conventions or conferences.
Due to its small size, The Class-Apart Bed & Breakfast will rely mainly on local labor. Given the small sales volumes to be realized, the inn may struggle with labor overhead costs, initially. In fact, the relative labor costs might be nearly equal to the accounting profits. As such, the economic profit of The Class-Apart Bed & Breakfast will be almost zero, initially. Such a scenario posits that the owner might be unable to finance further expansion of the A Class-Apart Bed & Breakfast in the immediate period after set up.
The nature of bed and breakfast industry in UK portends numerous opportunities that industry owners can explore to enhance their sales and profitability. First, the UK economy is emerging slowly from the recent economic turmoil (see Blanke & Chiesa, 2013), which presents an opportunity for The Class-Apart Bed & Breakfast to expand its operations in future. As Hotels and Tourism Industry continues to grow, The Class-Apart Bed & Breakfast will expand its operations through either physical expansion (increasing the number of rooms) or economic expansion, where it will increase the number of activities and service choices within its operations.
The Newcastle University proximity presents another opportunity for A Class-Apart Bed & Breakfast. The University of Newcastle is a habitat of many people – students, administrators and professors. As customers, these people have widespread needs and wants. It is through these needs that The Class-Apart Bed & Breakfast will exploit by increasing its service in order to cater for those needs.
Thus, although The Class-Apart Bed & Breakfast might initially struggle with overhead costs, it has an opportunity of overcoming them. Through experience and learning, its employees will undoubtedly become more and more acquainted with the essential practices in this industry. Thus, The Class-Apart Bed & Breakfast ability to emerge as an efficient inn will continue as its learning curve steepens in time.
A major threat in this industry will be the cutthroat competition. In Newcastle, the Bed and Breakfast industry is highly saturated with some of the major players being Malmaison Newcastle, Jurys Inn Newcastle, Royal Station Hotel, Copthorne Hotel Newcastle, and The Vermont Hotel. Some of these Bed & Breakfast inns, like Malmaison Newcastle, have been in existence for several decades, and have the capacity of accommodating family conventions. In addition, through their accommodating and excellent services, these Bed & Breakfast inns are able to command loyalty from their customers.
Another threat to The Class-Apart Bed & Breakfast will be the establishment of Bed & Breakfast styled hotels. The Bed & Breakfast styled hotels have the capacity to accommodate a town convention unlike the Bed & Breakfast inns that can only accommodate family conventions. Besides, as noted in the competitiveness report, 2013, the growth and sustainability of this industry is subjective to the prevailing economic cycles (Blanke & Chiesa, 2013). The recent economic recession led to the decline of household incomes through unemployment and decline of profits. The decline of income implies a decline of vacations. The decline of vacations in UK led to the decline of sales and profits, and even closure of some Bed & Breakfast inns. A severe recession in future will definitely affect the operations of The Class-Apart Bed & Breakfast or even lead to its closure.
The main targets of The Class-Apart Bed & Breakfast are based on geographic, weekend getaway customers, and demographics. Regarding demographics, the Class-Apart Bed & Breakfast will target the population of 189, 863 people in the city of Newcastle. This high population posits that at least every single day, a guest will occupy each room. Again, The Class-Apart Bed & Breakfast will target travelers crisscrossing the state, mainly UK citizens. However, The Class-Apart Bed & Breakfast will also target those travelers emanating from other countries.
Regarding demographics, The Class-Apart Bed & Breakfast will mainly target female and male aged at 35 and 55 years, mainly parents and guests of some students in the University of Newcastle. Another target is graduate and college students in the University of Newcastle, particularly those who will visit on short notice and with no intent on extended stays. In terms of income, the Class-Apart Bed & Breakfast target will be £ 50,000. In weekend getaway customers, The Class-Apart Bed & Breakfast will target individuals who enjoy meeting people and seeing new things. The Class-Apart Bed & Breakfast will in this regard target people who prefer Bed & Breakfast’s rather than hotels.
The main objective of this business plan is to position The Class-Apart Bed & Breakfast as the upscale Bed & Breakfast in Newcastle and its environs. This strategy will aim to make The Class-Apart Bed & Breakfast reach full capacity in the next two to three years. The Class-Apart Bed & Breakfast marketing strategy’s first initiative is therefore to create awareness on the exception bed and breakfast services offered here. Subsequently, the marketing strategy will develop the customer base, before building loyalty through quality service provision and strategic relationship with the University of Newcastle.
The Class-Apart Bed & Breakfast communication strategy will be to deliver messages that portray it as a premier Bed & Breakfast in Newcastle; one with the finest bed and breakfast facilities in the region. This promotional method will be undertaken through a repertoire of channels such as advertisements and weekly and monthly Bed & Breakfast association newsletters of Newcastle. Another strategy and a more robust one is the official website – theclass-apartbed&breakfast.com. This official website will have comprehensive information about The Class-Apart Bed & Breakfast location, history, operations, and services they offer to their customers. The last strategy will be developing strategic relationship with University of Newcastle. This strategic relationship will require some budget allocation through assorted activities like networking, schmoozing, and taking students and other individuals in the university free breakfast.
The marketing price of The Class-Apart Bed & Breakfast will constitute the following aspects; i.e., place, promotion, price and product.
Price: The price in The Class-Apart Bed & Breakfast will be based on roommate. The Class-Apart Bed & Breakfast will embrace a list price that is subjective to the conditions of rooms. That is, each room and kind of services provided towards the customer in The Class-Apart Bed & Breakfast will determine the price charged for the stated room. Again, The Class-Apart Bed & Breakfast will give its frequent customers some discount as a way of enhancing their loyalty. In order to ensure for competitiveness, The Class-Apart Bed & Breakfast price rates will be determined through terms prevailing in market.
Place: The Class-Apart Bed & Breakfast location is in the New Bridge Street West, New Castle Upon Tyne, Percy Street, B1307. This location is strategic because it is next to University of Newcastle. Here, The Class-Apart Bed & Breakfast has high customer base in terms of students, parents, and travels. The Class-Apart Bed & Breakfast will rely on specified suppliers of materials in order meet particular demand of customers, quality standards, and delivery schedule within minimal costs.
Product: The Class-Apart Bed & Breakfast services will include bed and breakfast. These products will be diversified based on services provided. For instance, The Class-Apart Bed & Breakfast will consider specified services like those offered to vegetarian and vegan based. The Class-Apart Bed & Breakfast will again put quality as the first priority, in line with its philosophy of commanding customer loyalty by being customer-centric.
Promotion: The Class-Apart Bed & Breakfast will rely on Bed & Breakfast associations. The Class-Apart Bed & Breakfast will develop strategic alliances with University of Newcastle. These associations will ensure a steady flow of customers, besides fostering customer loyalty. To reach travelling customer and those away from its location site, The Class-Apart Bed & Breakfast will use internet advertisement through its official website – theclass-apartbed&breakfast.com.
The theclass-apartbed&breakfast.com website will be used for conducting satisfaction and loyalty studies on customers. The studies will track the thoughts and impressions of customers. This website will also provide a report that will aim at compelling customers to purchase the services offered at A Class-Apart Bed & Breakfast. Again, theclass-apartbed&breakfast.com will have unique URLs that track users’ responses, mainly through specific campaigns and promotions. Further, through call-in sales, the Class-Apart Bed & Breakfast administrators will determine if such call was culminated by information obtained from the website.
University Strategic Relationship
The Class-Apart Bed & Breakfast will also track the effectiveness of its relationship with the University of Newcastle. The number of customers associated with the university will help define such strategic effectiveness. Tracking such effectiveness will be possible from The Class-Apart Bed & Breakfast customer records, which will have an option of customers suggesting their connection with the University of Newcastle.
Bed & Breakfast Association Newsletter
The Class-Apart Bed & Breakfast will further track the effectiveness of its marketing campaigns through the Bed & Breakfast Association Newsletters. The newsletter will have a small leaflet that customers will be required to fill their thoughts about the quality of services offered at The Class-Apart Bed & Breakfast.
The Class-Apart Bed & Breakfast will evaluate the effectiveness of its marketing campaigns through internet leads, university strategic relationship survey’s findings, and bed & breakfast association newsletter. In this regard, the Class-Apart Bed & Breakfast will determine the performance through leads generated by marketing programs. Such leads will include internet findings generated from theclass-apartbed&breakfast.com thoughts studies. The performance of theclass-apartbed&breakfast.com will again be evaluated from the volumes of customers who have visited The Class-Apart Bed & Breakfast after viewing the website and the percentage revenue associated with them. The Class-Apart Bed & Breakfast will also evaluate the performance of the strategic relationship with the University of Newcastle by ascertaining the number of customers who have direct link with the university, such as students, peers, and their relatives, and the percentage of revenue associated with them.
Blanke, J. & Chiesa, T. eds (2013). The travel & tourism competitiveness report 2013-Reducing barriers to economic growth and job creation. World Economic Forum, 1-517. Available http://www3.weforum.org/docs/WEF_TT_Competitiveness_Report_2013.pdf
Foods Standards Agency (2013). Regulation and Registration. Available http://www.food.gov.uk/enforcement/regulation/#.UYc3a0pLmP4