Swot And Market
Essay Preview: Swot And Market
Report this essay
Introduction
Take a few moments, close your eyes, relax and picture yourself sitting by beautiful Olympic sized pool overlooking the rugged terrain of the McDowell Mountains in Scottsdale, Arizona. This could all become a reality within a few years after the new “Sands of Time Resort” is completed. The presentation of this paper will include the overall financial/marketing objectives, segmentation, target marketing and a differentiating and positioning strategies for this new and exciting resort.
Marketing and Financial Objectives
The resort and hotel market has grown significantly since the 1950s and are no signs of stopping this trend. The objective for these resorts is to give the customer the best experience possible while indulging in the monetary profits that come from this expanding world of hospitality. The Sands of Time Resort located in Scottsdale Arizona will offer only the best: 18 hole championship golf course, luxurious swimming pools, spa and excellent dining experiences. Whether traveling for business, attending a conference or pleasure, you will not be disappointed as our guest.
As with any service, marketing is the key to any successful product. The Sands of Time Resort is dedicated in reaching as many potential customers as possible. This will be fulfilled by registering with the Chambers of Commerce, advertising in newspapers, guidebooks and magazines. With the newspaper advertising, the Sands of Time Resort will target major metropolitan areas, followed by smaller cities within the state. Along with newspaper, advertising in magazines will capture nationwide expose leading to a higher rate of return. Another excellent tool for advertising this great resort is using the Tourist Development Councils. These Councils will provide leads which we are able to attract customers through mailing lists. By utilizing these tools, Sands of Time Resort will be on their way to success.
When starting a new company it is very important to have the financial objectives in place. This means that financial planning, flexibility and defining financial projections need to be decided before any construction should begin. Identify the cost of the resort, project profitability for the next ten years and stick with a plan. The company expects a 20% return on beginning equity along with a 15 percent growth each year. Year after year, the Sands of Time resort should expect long-term profitability and growth objectives along with providing the guests with the Arizonas best customer service has to offer.
Segmentation and Target Market
According to Kotler, “a market segment consists of a large identifiable group within a market, with similar wants, purchasing power, geographical location, buying attitudes, or buying habits” (Kotler, 2003, p. 164). Travel Industry of America statistics shows 23% of Americans will choose all-inclusive resort to vacation. (Todd, 2003, p.1). The Sands of Time Resort will focus on potential customers who enjoy being pampered, like playing golf, and having everything at their disposal.
Demographic Segmentation
The all-inclusive Sands of Time Resort will offer a variety of spa services as well as excellent golf packages. According to the National Golf Association, “there are 26.4 million golfers over the age of 12 in the U.S. Approximately 6.1 million are avid golfers and play 25 or more rounds a year. Todays average golfer is 40 years old, has a household income of $68,000+, and plays 19 rounds a year. On average, golfers spend over $2.5 billion on golf related purchases and over $24 billion on golf travel.” (“Golf Demographics”, 2000).
A recent study by the International Spa Association shows the typical resort/hotel spa user as a 44 years old women; married with no children under the age of 18 living in the household; is employed full time; has a college degree or higher, and has an average household income of $122,000. (“ISPA Releases New Industry Statistics”, 2002).
Target Market
Scottsdale has long served as a gracious refuge for those in need of rest, respite, and renewal. With so much to offer to so many people, Scottsdale enjoys playing host to visitors from all over the world. The Sands of Time resort target customer is age 40 and over, college educated, and has a household income of $68,000 +.
The Scottsdale Chamber of Commerce statistics (“Quick Facts about Scottsdale”, 2002), shows the population median age is 39.7 years; the median household income is $61,700; 42% of the residents are college graduates and 28% have some college; 69% of the families have no children or children over 18; and the average median temperature is 70.3 F. This data shows there is an excellent target market based on our demographic segmentation for the Sands of Time resort to be successful in Scottsdale, Arizona.
Competitors, Differentiation and Positioning Strategy
According to Kotler, differentiation is “the act of designing a set of meaningful differences to distinguish the companys offering from competitors offerings” (Koltler, 2003, p. 604). In this section, we examine how the Sands of Time resort differentiates itself from its competitors.
Competitors
Currently, there are 22 upscale hotels and resorts in Scottsdale, Arizona, five cater specifically to corporations, and one is an award wining full service resort. There are many other hotels that provide golf and spa packages. There are no all-inclusive full-service resorts in Scottsdale or in surrounding areas. The Sands of Time resort will be a unique offering.
The resorts and spas that offer golf packages and spas will provide some level of competition. However, it is anticipated that the award wining Miraval Resort and Spa, Four Seasons Resort and the Westin Kierland Resort & Spa will provide the more direct competition since they provide golf and spa packages. Other hotels in the area provide luxury rooms; upscale dining, tennis, pools, and some also accommodate corporate conferences.
Differentiation
At this time, there are no all-inclusive resorts in Scottsdale, Arizona. Even the more luxurious resorts and spas do not offer all-inclusive services to perspective clients. Sands of Time offers the most spectacular and convenient vacation experience to vacationers seeking to relax their body and soul in a most spectacular resort in Scottsdale, Arizona. What differentiate Sands of Time from competitors are superior service, experienced personnel,