Marketing Plan for Crown Resorts Australia Assessment Answer
Marketing Plan for Crown Resorts Australia
The changing market scenario demands the improvement of business services. Specifically, in the case of the hospitality industry, customer demand and expectation creates a need to service development. The best possible way to increase business potential is to implement marketing plans to highlight business offerings. In case of the Crown Resorts in Australia, the domestic success might impact the international outreach of the company. The business plan includes the effective market research to consider overseas expansion. The service improvement in the domestic business to solidify the market share is proposed for Crown Resorts. Promotional activities to highlight the brand equity is also proposed as a part of the marketing plan. These strategies, along with customer relationship development, are proposed to help successful implementation of the business offerings.
Crown Resorts is one of Australia's largest chains of hotels and other entertainment business. The company's contribution to improving the Australian tourism landscape over the years has earned a brand image and trust of domestic as well as international guests. Some of the most valuable properties in the tourism and hospitality industry are owned by Crown Resorts in Sydney, Perth and Melbourne. The company is one of the largest employers in the hospitality and entertainment industry in Australia with more than 18,000 people working in various positions for the company. The profit from the sales collection of the Crown Resorts is so high that the company has contributed the government with 650 million in tax, which was two-thirds of the total collection. In 2018, the Crown Resorts obtained profits of 326.7 million, which was 5.8 % higher than that of the previous financial year. The introduction of the VIP program was the contributing factor of this profit in the Melbourne region. The Crown Resorts were able to normalize the revenue with the increase if the EBITA of 7.2% in its resorts. The business enterprise has majorly focused on improving the performance in the Perth and Melbourne region in the coming financial year. The company also has certain projects that would include the completion of the projected task, mitigating all the financial issues and the continuation of the digital business (Crown Resorts 2019).
The Vision of the Crown Resorts is to focus its business strategy towards the core hospitality and entertainments services in Australian and maximise the shareholder returns effectively. The company wants to focus on their strategies to improve the underlying business performance within the different sectors and completion of the developmental projects. The mission of the company is to increase the returns of investment for the shareholders in capital management. The company also wants to identify business opportunities and improve the operational performance of the business in both Crown and Perth. The mission of the company is also to improve the social commitments in empowering local communities and making their business sustainable for the future (Crown Resorts 2019).
Corporate Objectives Porter’s Three Generic Strategies Model
In order to increase the business to newer international regions, Crown Resorts would need to improve its services according to the local culture of the region.
The customer expectations would be mitigated through the expansion of the business in a new international market.
Improvement of customer satisfaction through effective pricing strategies to expand market share.
Target Market: The target market for the business in Crown Resorts currently is intended towards the high-spending customers who are looking for vacation and entertainment in Australia. The luxury hospitality and entertainment services provided in all the resorts of the Crown Resorts are of high quality with best customer experience (Crown Resorts 2019). The business value and the brand image of the enterprise have gained domestic as well as international praise. The proposed target segmentation for the Crown Resorts is the family and corporate clients from domestic as well as international regions (Yu et al. 2017). This would enhance their business capability and provide entry into foreign markets. The business potential will increase the rand portfolio and solidify business sustainability in the Australian hospitality sector.
Porter’s Environmental Forces
Figure 1: Porter’s Five Forces Diagram
Source: (Phillips and Moutinho 2014)
The threat of New Entrants: One of the most prominent threats from the new entrants in the market is within the pricing strategy. The consumers in the tourism market are always looking for ways to obtain the lowest prices for the best possible luxury hospitality services. The company received significant competition with the management of events and conferences in the Melbourne and Sydney region as per the Annual report highlight (Crown Resorts 2019). The company would face pressure from the newer hotels and resorts chains where the new market values, propositions, pricing strategies and the reduced tourist expense for the services being offered (Phillips and Moutinho 2014). Crown Resorts would be able to use its market dominance and name to provide better value services to the customers. The strong contribution of the resort chain within Australia has created a brand value which will not be diminished.
The threat of Substitutes: The substitute hospitality services offered by home rental systems like the bed and breakfasts around Australia decrease the market potential of the high-end hospitality service providers like Crown Resorts (Crown Resorts 2019). The unique proposition that meets the customer demand is that the tourists are treated as guests with a domestic environment whereas; some of the business enterprises develop a business relationship with their customers. The reduced pricing and domestic environment services are attractive to consumers all over the world. The growing popularity of the home-based hospitality services and rentals might negatively impact the mainstream hotels and resort chains in future.
Rivalry among Existing Competitors: The completion among the major players in the Australian hospitality industry will result in the decreased pricing strategy and overall profitability of the tourism sector. The scenario is similar for Crown Resorts since the Australian tourism and hospitality sector is very competitive in nature. The executive decisions, however, take into consideration the market competition and improve their competitive advantage through services effectively. The improvement of the customer experience is the major strategy adopted by the Crown resorts to overcome the market competition. The employee remunerations and perks are also maintained within the Crown Resorts to ensure retention of the workforce and ensuring that e better service quality is maintained (Crown Resorts 2019).
Bargaining power of Suppliers: It is essential to have strong chain suppliers and distributors to support the public services industry. In the case of the hospitality service industry the Crown Resorts will also have to engage in managing their suppliers and distributors for the business improvement. The goodwill of the Crown resorts and its engagement strategies to retain their suppliers will positively improve the negotiations. The implementation of the sustainable supply chain system within Crown resorts is initiated from 2018 (Crown Resorts 2019). This would act as a support and improvement of the suppliers to conduct their business and maintain the professional commitments with Crown Resorts.
Buyer Bargaining Power: The hospitality, as well as other business projects, is well received among domestic as well as international buyers, which is advantageous for the Crown Resorts. The strong marketing efforts of the company have paid off in building the brand image. The sustainable business and other CSR contributions of the Crown Resorts have made it easier for the company to negotiate and justify the pricing of their services with the consumers (Crown Resorts 2019). The world-class customer experience dedicated to being provided to the guests using the services of the Crown Resorts provides a huge amount of business. The string customer relationship strategies ensure brand loyalty for Crown Resorts.
SWOT Analysis of Crown Resorts
Strengths: The internal strategy of the Crown Resorts is very strong with the vision of the company to provide the best customer experience in the hospitality industry of Australia. This includes a very strong network of a distribution system in the domestic region. This system allows the market penetration of the Crown Resorts in Australia and contributes to being one of the largest tourism, hospitality and entertainment providers in the region. The company business strategy, in terms of domestic business expansion, has been very successful (Crown Resorts, 2019). Acquisitions and mergers have increased business capability. Integration of the technological advancements within operations has streamlined their control and eventual success in the field. The sustainable supply chain management has also improved the relationship of the business with the suppliers. The company has a dedicated employee workforce who strove to provide the best customer experience in their stay in the Crown Resorts (Crown Resorts 2019). This provides the business with high brand equity and a strong customer base with improved customer relationship management. The different projects and business channels of the Crown Resorts ensure that the cash flow is always maintained within the business. This also helps in the investment strategies which the increase the business capabilities. The engagement of the distributors is done with the initiation of the shareholding opportunities, in this way, the brand value is increased among the business associates, and the market share is obtained.
Weakness: In comparison to the competitors in the market, the high day's inventory within the Crown Resorts would impact the long-term sustainability of the business. The attrition rate of Crown Resorts is higher in comparison to other recruiters in Australia (Crown Resorts 2019). Therefore the cost of employee orientation and service training is higher for the company (Choi et al. 2014). Crown Resorts does not invest much in the research and development of its business, which might impact its long-term business capability. The recent new competition in the Perth region has lowered the company's financial collection from the hospitality business. The company does not offer a wide range of service and pricing choices to its guests, which may retract the customer base to more flexible organisations. The demand forecasting is weak in case of the Crown Resorts, which is why the competitors are more focussed in obtaining success in the domestic field.
Opportunities: Competencies of the Crown Resorts is the height for which the success of the business was attainable in Australia. The constant stability in the cash flow with the business environment makes it easier for Crown Resorts to invest in business opportunities and enhance the brand portfolio (Crown Resorts 2019). Including this product diversification and the implementation of new technologies to improve the business, the capability is possible with the existing flow of cash. The diversification of the products and services might be a better opportunity to expand business within Australia and emerging markets as well. Globalisation and its effect on the rising entry into new markets can improve the business portfolio of Crown Resorts as well as the free trade agreement with the comment also invites new business associations from international regions. The decrease in the transportation and shipping costs within Australia will be effective for the business improvement of the ground resorts within Australia and improve the distribution and supply channel (O’Neill et al. 2016). The increasing disposable income of both domestic and international customers increased the business opportunities and create a pathway for revenue generation within Crown resorts in the hospitality industry. The growing curiosity among the millennial tourists all over the world increases the business outcome and financial position for Crown Resorts in Australia (Crown Resorts 2019). Digital channel increases the chances of business inspection for Crown resorts and invites International customers through alternate sales channels. A company might be improving marketing research with the implementation of big data analytics and customer feedback collection to improve their business strategy and understand customer intention better.
Threat: Hospitality industry within Australia faces issues with the shortage of skilled workforce to provide customers with the services and contribute to the growing profit of the business Enterprises like Crown resorts. The currency fluctuations and lowered exchange rates in emerging markets would be difficult for Crown Resorts to anchor due to the quality of services being provided by the hotel chain (Crown Resorts 2019). In addition to this, the volatile nature of the political environment, as well as the corporate regulations within new international emerging markets, might also disrupt the business stability of crown resorts (White III et al. 2014). Regulations that are sensitive to the market involving the regulation of material and resources might be a risk factor for expanding the business in international lands. Increasing prices of the raw materials required for the business sustainability might be an impending respective which the Crown Resorts will need to improve with time. The intensity of the competition and the popularity of the substitute services in hospitality like bed and breakfast, rental homes, and paying guest services to disrupt the potential of the mainstream commercial Hotel services.
Proposed Marketing Objectives SMART principles
The alternative marketing strategies will be provided based on the specific objectives present in the following as SMART Goals-
Specific: The Crown Resorts need to increase their business capabilities both in domestic and new emerging markets
Measurable: The steadiness in the business capabilities with minimum loss throughout the plan implementation.
Achievable: The improvement of the domestic services and proper market research before entering newer markets
Relevant: Increasing awareness of the brand equity using promotional tactics within domestic as well as international market.
Time-bound: The business objectives will be fulfilled within the upcoming financial years.
Outline of Possible Strategic Alternatives using Ansoff’s Growth Strategies
Figure 2: Ansoff’s Growth Strategies Diagram
Source: (Ray 2015)
New Marketing Strategies: In order to increase the business to newer international regions, Crown Resorts would need to improve its services according to the local culture of the region. This would increase the demand for the luxury hospitality services among the local consumers in the intended market (Ray 2015). There also needs to be diversification in the employment strategies for the intended new market for the Crown resorts. The inclusion of the local employees in the domestic region had been very successful for Crown resorts. These market diversification strategies would increase the sale revenue for the business with time. The advertisements and the promotions of the Hotel business would need to be concentrated on the local demands of the customer segments. This would require in-depth market research to gather information regarding the expansion of the business to newer markets.
Service improvement: In order to engage cognitive awareness among the customers in the new region, Crown Resorts might need to understand the cultural and other determinants of the guest behaviour (Ray 2015). The customer expectations would be mitigated through the expansion of the business in a new international market (Bowie et al. 2016). In the domestic environment, better entertainment services need to be provided in all the resorts of the Crown resorts. The availability of the services needs to be equivalent to the consumer consumption nature in the location. In case for the region where there is an influx of international tourists it would require a diverse variety of services. The internal management system with the employees needs to be controlled to ensure that the customer experience.
Diversification: In the domestic region, the Crown Resorts would need to introduce a diversified pricing strategy to engage the interest of the families and business clients. The customer loyalty programs might offer competitive pricing, which would increase the attractiveness of the Resorts (Ray 2015). The diversification on the pricing strategy would increase the market share within the domestic environment and attract the attention of international clients (Azar 2017). The diversification of the services would include the improved services for the corporate clients within Australia. As a growing destination for the business opportunity it would be beneficial for the Crown Resorts to make special arrangement and room services for the corporate clients. Inclusion of the meeting rooms and conference setting would increase the attractiveness of this hotel for the international business owners.
Expansion: In the case of the expansion of the market in international regions, it would be effective for the Crown Resorts to negotiate their pricing. The Asia Pacific destinations are still emerging and therefore, would be effective to provide lowered pricing for the services being offered (Ray 2015). The different payment options also need to be managed to incorporate the currency exchange rate with respect to the regions. The traditional method of booking and office should be open for consideration to ensure a better customer relationship in foreign regions.
Chosen Strategy of Marketing Mix
Figure 3: Marketing Mix Diagram
Source: (Huang and Sarigöllü 2014)
Product: In order to improve the business in the Perth region of Australia, the marketing strategy needs to be considering the necessity of the customers. The unique services could be implemented in order to attract the customers in the region (Huang and Sarigöllü 2014). The inclusion of the casino and other entertainment sources in Crown Resorts might increase sales. In order to enhance the consumer experience, mainstream games and entertainment systems could be introduced in the resorts (Brochado et al. 2016). Incorporation of the sustainability in business practices like the reduction of energy costs and the recycling practices might attract customers who believe in ethical living.
Pricing: It would be beneficial for the Crown resorts to provide penetration pricing for the VIP customers. This would increase the subscribers in the customer loyalty program across all business platforms. The pricing strategy would increase the market share of Crown Resorts within the Australian tourism industry (Huang and Sarigöllü 2014). The increased discounts would ensure that high-end customer are provided with special care services. The Crown Group can also modify the discount options for the guests with families allowing free living for children under the age of 8 years. This would also increase the company's image as a family holiday entertainment and hotel service within domestic as well as international market.
Place: The Company currently provides business in Australia and UK; it might be beneficial for the company to expand overseas into the Asian tourism market. The growing popularity of the western country tourism among the Asian customers might increase the business for the Crown Resorts (Donzé and Fujioka 2015). The luxury hospitality services and entertainment provided by the Crown Resorts might attract the developing Asian market in the luxury hotel business. The dynamic changes in the consumer trends and the increasing demand of the Western luxury services in countries like India, Japan, etc., and the rising destination demand would increase the business revenue.
Promotion: The Crown Resorts can improve its business promotion by managing the content in their social media pages and website. Content management generates transparency between the potential customers and the business enterprise (Huang and Sarigöllü 2014). This also helps in building brand equity for the company. The advertisement strategies would also increase the brand awareness of the Crown Resorts in domestic as well as international regions. The TV advertisements increase the viewer across domestic and increase the mass market exposure the service offerings by the business. In addition to this, the social media management could be increased to increase the customer connection and promotion of the services to give a boost to sales.
|Market Research||6-7 months||6,000 AUD|
|Service Improvement||12 months||15,000 AUD|
|Diversification of Services||14 months||20,000 AUD|
|Mainstream Game Incorporation||6-7 months||!8,000 AUD|
|Promotional Activities||8 months||35,000 AUD|
|Website Management||4 months||7,000 AUD|
The discussion provides an understanding of the necessary changes business owners have to consider in the competitive market of the hospitality services. The sustainability of the business even in case for a well-established hotel chain like Crown Resorts might not be effective for the upcoming future. The changing perception and demand of the customers shape the void in the industry. The different strategies help to overcome the business barriers within the industry. Implementation of business diversification strategies and appropriate promotion might increase business capabilities.