Given Mr James charge to the senior vice president, how would you portray and assess sales and marketing initiatives, expenditures, and outcomes for fiscal 2004 and 2005?
From above analyzing, it was obviously many marketing strategies and operational methods should be changed in the future. The year of 2004 to 2005 was a key year to depend upon the boost to improve the entire hotel operations. The target of marketing strategy was to enhance entire taken possession for properties in the fiscal year of 2004. The corporation schemed to catch traveler’s eyes by make them pleasure through launching “the place to stay on the way” plan. From the other side, the corporation’s advertisement has demonstrated that families highly might appreciate the agreeableness of properties during their travels. (Roger & Robert, 2013)
Mr James decided to implement an expanding business strategy and full of confidence about his plans. Due to the extended marketing strategy, the cost of advertisement increased substantially with 2.7% of total lodging revenue budgeted to use for media advertising in 2004, this amount has reached $11,360,000. From the question 3, it was not difficult to see that the occupancy raised was due to the good promotional strategies, but the cost of advertising from previous years had been expensive than other similar hotels. The corporation should consider whether they really demand substantial investment on media advertising instead of improving the hotel’s facilities to make the hotel become more comfortable for guests. Among entire advertisement budgeted, the cost aimed to vacation people occupied around 28% while the targeted towards business tenant was 72%. The distinction between these two project was quite huge. The senor management level could think of the advertisement in the past performed less effective on those vacation people or travelers, they put a lot of concerns on business tenant. It was a wrong decision for them to put so much advertisement budget into people for business purpose while they should more focus on the families or travelers. Because there was highly possible that businessmen were less focus on the traveler magazine and advertisements, they just wanted to find more suitable, clean, tidy, comfortable hotels and with a preference price. As for the sales budget, there were two new representatives which raised $4.4 million in order to contact and coordinate with travel agencies. Also, another important target was to inspire positive emotion for tenant. (Roger & Robert, 2013)
During the whole year of 2004, the performance achieved a results that the whole occupancy has raised, the medium daily rate was permanent whereas an increased in weekend tenancy. The total lodging earnings enlarged by seldom properties while the income per room also expanded. (Roger & Robert, 2013)
In the fiscal year of 2005, Astor lodges & Suites, Inc projected enhancing entire accommodation in guest rooms and suites. It aimed to not only absorb the first-time guests but also bolster their loyalty to the hotel. A new advertisement recognized as “frontier strategy” expended into Texas and Oklahoma for concentrating on establishing an awareness of brand as well as acceptance. Other wise, the corporate held a summer promotion with a half discount when the guest stayed over three days in suite as well as one fourth off in a guest room.
The budget for media advertisement in 2005 occupied 3% from total $12,500,000, which aimed to enlarge costs for frontier strategy. The budget for vacation traveler occupied nearly 35% with 65% towards to business traveler. (Roger & Robert, 2013) When I analyzing the issues in 2004, the similar problem occurred in the year of 2005. The distinction of those two project was a little cut down with the total amount of advertising budget was increased. So this issue was not resolve properly, and the cost for the corporation became more heavier, if they could not to find some properly meanings, the annual profits was sure going down.
Moreover, the sales budget has arrived $4.7 million because another two sales representative joined in 2005. The budget also sponsored to improve relationship with mid-western country’s companies, and raised the brand recognizable for corporations. The sale budget compared with the last year only slightly raised twenty million dollars, we can seen from Figure 2, the budget was plans to be increased while the sale was not.
The effective of fiscal year of 2005 resulted occupancy rates 7.9% greater than 2004, which contained new guests contributions, enhancement from average rate. The revenue with one less property has raised to 6.2%. Besides, the average daily rate per room shown a downward trending, whereas the revenue of per room raised. (Roger & Robert, 2013) The downward phenomena might
Summarily, The EBITDA raised to $35,850,000 in 2003 that the EBITDA consisted of some defects, the whole advertising displayed a certain degree of success in many areas. The EBITDA in the year of 2004 was a downward tendency from $109,391,000 to $103,963,000 for 2005. These results would represent that aspects of the sales and marketing expenses were unsuccessful for the company.