7 P’s Analysis of

Rockhampton Plaza Hotel

[Type the document subtitle]

09-Sep-12

Executive Summary

With the increase in concerns about the quality and effectiveness of service strategy using its marketing

activities, this business report will analyze the Rockhampton Plaza Hotel’s marketing strategies using

7P’s Model. We have first discussed the background of Rockhampton Plaza Hotel and the personal

experience in the service encounter in Rockhampton Plaza Hotel. After that, we have done 7P’s analysis

for Rockhampton Plaza Hotel by outlining the service product, promotion, place, pricing, people,

processes and physical evidence critically. We also have done discussions which are based on relevant

personal experience, applicable theoretical frameworks, and academicresearchers from academicians.

Based on these discussions coming from the 7 P’s analysis for product, price, place, people, Promotions

processes and physical evidence parameters for Rockhampton Plaza Hotel, we have tried to derive

recommendations in four areas namely, price, people, promotion and physical evidence. 7 P’s analysis

says that they should focus more on multiple themes like product, price, place, people, Promotions

processes and physical evidence but they are more focused on delivery part of the service and

neglecting others. Target Market of Rockhampton hotel are Tourists and Frequent travelers of Affluent

Social classes. Rockhampton Plaza Hotel does their marketing in traditional way by relying mostly on

Word of Mouth promotion. The Major findings and recommendations which have been derived are:-

1) In Product Strategies, Rockhampton Plaza Hotel serves its customers with a range of services like

reservation, valet parking, luggage movement, room service, laundry as well as other value

added services including entertainment services etc.

2) In Place parameter which is the most important commercial as well as tourist attractions are

near way. Rockhampton hotel is situated near Central Park Queensland which attracts huge

number of tourists visiting which also results in high occupancy ratings.

3) In Process Parameter, Rockhampton Hotel has well defined processes for Staff, Consumers and

Management which they have been following meticulously.

4) Pricing strategies of Rockhampton Plaza Hotelare traditional and hadn’t been adapted according

to current market conditions. They should be more logical as well as flexible and a generic

strategy should be formulated and a pricing strategy based on time of the day should be set up.

5) Promotional strategy of Rockhampton Plaza Hotel is mostly based on Word of Mouth

Promotion. It should be more contemporary so they should develop them more futuristic and

develop B2b sales channel so that corporate bookings can be increased.

6) People strategy of Rockhampton Plaza Hotelis mostly stream focused and old fashioned. They

need to be more efficient and effective and recommendations are being done so that a broad

range of trainings should be done. Employee focus should be increased within Rockhampton

Plaza Hotel by both monetary as well as in reward and recognitions.

7) Physical Evidence strategy for Rockhampton Hotel is static. They hadn’t changed their interiors

since their inception. It should be done so as to make the interiors as well as exteriors more

contemporary as well as appealing.

Contents

Executive Summary ....................................................................................................................................... 1

Introduction .................................................................................................................................................. 3

Background of Rockhampton Plaza Hotel..................................................................................................... 3

Personal Experiences ................................................................................................................................ 4

7P’s analysis for Rockhampton Plaza Hotel .................................................................................................. 4

Analysis of Service Product Parameter ..................................................................................................... 4

Service Pricing Parameter Analysis ........................................................................................................... 5

Analysis of Promotion Parameter ............................................................................................................. 6

Service Place Parameter Analysis ............................................................................................................. 7

People Service Parameter Analysis ........................................................................................................... 7

Service Parameter Processes Analysis ...................................................................................................... 8

Service Parameter Physical Evidence Analysis .......................................................................................... 9

Recommendations for Rockhampton plaza hotel ...................................................................................... 10

Recommendation for Service Parameter Pricing Strategy ..................................................................... 10

Recommendation for Promotion Service Parameter Strategy ............................................................... 11

Recommendation for Service Parameter People Strategy ..................................................................... 11

Recommendation for Service Parameter Physical Evidence Strategy .................................................... 12

Conclusion ................................................................................................................................................... 12

References .................................................................................................................................................. 13

Introduction

Service as a product is very much different from any tangible product. This uniqueness also makes

marketing of services very much different for service product when compared to tangible products.

When we compare 7P’s marketing mix of service product with 4P’s for tangible products which contains

product, price, place, people, Promotions processes and physical evidence (Beaver & Harris 2010,

pp.109-19).

In this business report, Rockhampton Plaza Hotel, which is a famous hotel in Queensland, Australia is

chosen for being analyzed using 7P’s marketing mix model. The selection of Rockhampton Plaza Hotel is

important because of multiple reasons namely, Rockhampton Plaza Hotel as a service provider which

gives all kinds of hospitality services like accommodation, entertainment etc. ; secondly, since, it is a

famous hotel sufficient information can be found for Rockhampton Plaza Hotel using both secondary

and primary sources about its business, services, operations as well as management practices; lastly,

personal experiences have also taken place in Rockhampton Plaza Hotel of availing multiple services

which will make the analysis more easy and convenient based on those personal experience. Using the

above information, this business report will try and use this 7 P marketing mix analysis as a tool to

analyses Rockhampton Plaza Hotel practices and offer possible features of advice for Rockhampton

Plaza Hotel. This business report has been built upon brief history and background of Rockhampton

Plaza Hotel and personal experiences availed in Rockhampton Plaza Hotel. Then, we have conducted 7 P

marketing analysis using different resources. Finally, recommendations are being made on multiple

parameters of this 7 P marketing mix which is applied on Rockhampton Plaza Hotel (Blankson & Stokes

2007, pp.49-61).

Background ofRockhampton Plaza Hotel

The background of Rockhampton plaza hotel will be discussed on this section as well as personal

experiences of known people in this hotel.

Rockhampton Plaza Hotel is a 6 story hotel which has restaurant, bar, party facilities which are near

Central Park and St Joseph’s Cathedral. It has earned local fame and respect due to its service and

hospitality on offer. This Hotel is big in size and offers multiple hospitality services for customers in a

bouquet. It is a six stored hotel and average occupancy is approximate 75% (Rockhampton Plaza Hotel

2012).

Personal Experiences

Our experience of staying in Rockhampton Plaza Hotel has been amazing. The first image of this hotel

has been comfortable to live as well as giving quality of services which was very convenient as well as

quick. Rockhampton Plaza Hotel offers diversified services and also consults tourists about the city and

where to visit. Our personal experience is very good and the experience and attitude will help in making

this business report based on 7P’s Marketing Mix model.

7P’s analysis for Rockhampton Plaza Hotel

The 7 P analysis for Rockhampton Plaza Hotel includes the analysis of 7P’s of marketing mix, namely,

Product, price, promotion, place, people, processes and physical evidence which are explained in the

following sections-

Analysis of Service Product Parameter

It has been analyzed that service products of hospitality industry is very similar in nature, in which

products and services which can be offered to customers so that Rockhampton Plaza Hotel can satisfy

their wants like those of eating, entertainment, hosting, and other needs in their busy routines. For

service product of hotels, which is an important part of hospitality industry contains diversified service

portfolio for customers whichthey might not find with any other service providers when they get one

quality service provider. This is an easily recognizable trend for hospitality industry in which global

standards are being set for service delivery. For assessing the overall quality of hotels, diversification of

services is highly needed (Brooksbank, Kirby & Taylor 2009, pp.292-306).

Based on these points and attaching the service product part of the hotel, the service which are being

given by hotels fall in 3 different types:-

1) Accommodation services- Accommodation is the main business source of Rockhampton Plaza Hotel.

Rockhampton Plaza Hotel serves its customers with a range of services like reservation, valet parking,

luggage movement, room service, laundry as well as other value added services.

2) Entertainment Services-The Customer needs multiple services in Entertainment range which can be

found in Rockhampton Plaza Hotel. Here, customers can do other exercises like gym, swimming, playing

indoor sports like Table tennis, Snooker and Squash. Customers can also enjoy Karaoke Nights as well as

drinking in the bar or pub. They can also enjoy the coffee cup in cafeteria adjoining the restaurant.

Rockhampton Plaza Hotel also gives various in room options to its customers like TV viewing, internet

access using own smart devices or rent them for personal usage on Rockhampton Plaza Hotel.

3) Fine Dining as well as shopping services – There are multiple fine dining restaurants present in

Rockhampton Plaza Hotel where customers can enjoy multiple cuisine foods like Chinese, spicy,

Traditional, continental, Korean as well as sea foods. Customers can also buy necessary items like

packaged foods, edible drinks as well as other needed items from small market present in Rockhampton

Plaza Hotel (Rockhampton Plaza Hotel 2012).

Service Pricing Parameter Analysis

In Hospitality Industry, Price is always not the decisive reason for customers to make their choice. They

play definitely an important part which is taken in consideration by customers before taking any final

decision. For hotels, pricing strategy is very complicated issue in itself and needs lots of deliberations

before being finalized (Chain 2010, pp.8-51). This is because, it is difficult to take in consideration all the

input received by customers in terms of feedback for all the diversified services Rockhampton Plaza

Hotel offers. Also, since, most of the customers Rockhampton Plaza Hotel gets are either from touring

agencies or booking websites, Rockhampton Plaza Hotel doesn’t has the necessary bargaining power

with its customer base which are essentially very big in size. We always need categorization for pricing

strategies in service industry (Consuegra, Molina&Esteban 2007). When we take this analysis in

consideration, Rockhampton Plaza Hotel needs categorization of their pricing strategies. In terms of

prices they should categories them for individual customers as well as for booking agents / Websites as

well as group travellers.

1) For individual customers, the standard room costs individual 350 AUD per day and reservation 20

days ahead would mean 10% discount on this price. Also, the standard room will be priced for 100 AUD

for six hours in day when it isoffered to those who need forrelaxation. Other detailed prices for service

are-

2) Entertainment services – Services rate for Rockhampton Plaza Hotel is on higher side when compared

with other peers by approximate 10-20%. When we take swimming pool and gym services for

example.Usually the average price for 1 hour swimming pool charges is 100 AUD in this hotel and gym is

of 50 AUD.

3) Food services – Food Prices are same with those of restaurants which are self-operated in this hotel.

However, if we use the room service, then extra charges will be applicable as per the timing of the call.

For travel agents, Hotels give discounts to them which is dependent on the volume of customers in the

long term contract or for one off destination. Normally, In Queensland, for a travel group which is lower

than 15 people a 15% rebate is offered by hotel. If it is more than 15, then 25% discount is offered along

with other bouquet of free services. Some hotels offer entertainment rebates, some do not (Deng and

Dart, 2009, pp.725-42).

Analysis of Promotion Parameter

Promotional strategy for service industry is focused on achievement of two objectives- to get new

customer to visit and use services, and to retain customers which are old by giving them loyalty

programs. In terms of hospitality industry, they use a mix of promotional strategies which include

advertising, word of mouth, referral programs as well as loyalty programs for their present customers.

There are also discounts for referrals as well as special offers on off seasons where occupancy rate is

very low (Booms &Bitner 1981). When we see above activities and attach them with Rockhampton Plaza

Hotel workings, the promotional activities can be classified in following way-

1) Advertising- Rockhampton Plaza Hotel uses different mediums for advertising, namely, printed

advertisements in newspapers, magazines as well as in travelling journals along with circulating

catalogues at leading travel agents offices.

2) Word of Mouth Strategy - Rockhampton Plaza Hotel focuses more on word of mouth strategy for

acquiring customers which is thetraditional practice in hospitality industry. You can find pamphlets and

slogans everywhere in the hotel, enticing customers to tell to their peers, friends and relatives about

Rockhampton Plaza Hotel and share them the experiences they had. They have a two pronged strategy

for referrals. First they give coupons to people while checking out which can be used by anyone except

those who have been given those coupons. These coupons can range from discount to free services.

When these coupons are being used, then the referrer gets same coupon credited in his account which

can be used by him in his next visit to the hotel. Hence, referrals can be useful to them also as well as

their friends.

3) Sales Promotions – Sales promotion of Rockhampton Plaza Hotel can be seen as offering discounts for

early bookings as well as for large travel agents/ online booking websites depending on the volume of

customers. Also, discounts are offered to senior citizens who are more than 60 years of age in order to

fulfill corporate social responsibility.

4) Customer Loyalty programs- The customer loyalty program run by Rockhampton Plaza Hotel is the

major means to attract and retain loyal customer. His is achieved by multiple ways like 1) making class of

customers depending on the amount spend by them in Rockhampton Plaza Hotel and giving special

benefits to those classes in form of discounts or complementary services. 2) Giving referral bonus to

them as well as those which are being referred so as to retain old customers and attract new ones

(Rockhampton Plaza Hotel 2012).

Service Place Parameter Analysis

Place Parameter of Rockhampton Plaza Hotel can be described as the place where hotels are placed, this

is an important parameter but a static one as the decision is taken at the inception of hotel which can’t

be changed (Booms &Bitner 1981). As we talk about Rockhampton Plaza Hotel which is located near

Central Park in Queensland which is a prominent location. The most important commercial as well as

tourist attractions are near way. Queensland attracts huge number of tourists visiting which also results

in high occupancy ratings.

People Service Parameter Analysis

People management is the most important facet of services in hospitality industry since all services are

important and directly delivered by people only. The quality of service providers can affect the customer

satisfaction as well as discretionary spend of consumers with the service provider (Booms &Bitner

1981). Employee Job satisfaction decides what is the level of customer satisfaction in hotel which

stresses the importance of rational as well as effective human resource management for Rockhampton

Plaza Hotel and other similar service provider in hospitality industry. When we see the human resource

management at Rockhampton Plaza Hotel, according to personal experiences, we can state following

points:-

1) Recruitments, selection as well as new induction of joiners as employees.

2) Practical on the Job training for new as well as current employee

3) Fostering Rockhampton Plaza Hotel culture and teamwork into new employees.

4) Job Appraisal as well as reward and recognition scheme which include both fines as well as

compensation depending on good behaviour as well as mistakes towards customers.

5) Relationship building between the Rockhampton Plaza Hotel and its employees.

The Human resource responsibility in Rockhampton Plaza Hotel in terms of service contracts towards

consumers includes following features:-

1) To help the consumers in an appropriate manner. This includes all of the possible help they can give

to old as well as new customers of Rockhampton Plaza Hotel

2) The communication which is ongoing between customers and staff of Rockhampton Plaza Hotel can

help in collection of information about what are the changing needs and wants of hotel services and

how can Rockhampton Plaza Hotel working towards providing complete customer satisfaction patterns

(Rockhampton Plaza Hotel 2012).

Service Parameter Processes Analysis

Processes are very important for any service giver in hospitality industry as they give ways in which

these services are being given to consumers. When we talk about specific hotel industry, the processes

of this industry include multiple interactions between the hotel entity as well as its consumers along

with its staff. These facts help in service products as well as consumption patterns(Lovelock & Wright

2002).

The processes of Rockhampton Plaza Hotel can be seen in multiple aspects like:-

1) Hotels and consumers – This involves offering facilities by Rockhampton Plaza Hotel like information,

consulting, food, accommodation, bar, in house entertainment, which can help customers as well as

Rockhampton Plaza Hotel to assist their consumers. When we talk about customers, Rockhampton

Plaza Hotel is very keen on finding data about what is the attitude of customers and their satisfaction

towards Rockhampton Plaza Hotel, hence Rockhampton Plaza Hotel works on getting feedback in terms

of check out book to be filled at the checkout from Rockhampton Plaza Hotel

2) Staffs and consumers – Human resources always make direct contact with consumers and their

involvement is the most important spoke in service quality. This includes the effort to make customers

stay as comfortable as possible. Staff of Rockhampton Plaza Hotel works to delight customers by

offering extra services which prove value of their money and help them effectively use the services of

Rockhampton Plaza Hotel of which they are unaware.

3) Human Resources - Rockhampton Plaza Hotel staff interaction includes involving them in design and

adjustment of new services and related processes using periodic meetings with the management. This

helps in finding star employees who are ready to take responsibilities as well as give effective and

practical advice to them. Staff are also promoted to organize socializing among themselves so that their

interpersonal relationships are strengthened resulting in higher work satisfaction (Rockhampton Plaza

Hotel 2012).

Service Parameter Physical Evidence Analysis

Physical evidence for intangible products like services is quite similar to tangible products. This includes

environment, prices, communication as well as view the customer has as of locality (Cengiz&Yayla

2007). Physical evidence can be worked for the services offered by Rockhampton Plaza Hotel in

following areas.

1) Physical Environment - Rockhampton Plaza Hotel is a comfortable place to stay. The inside area,

corridors, lobby all are fresh and novel in decoration. All furniture are polished and new. Since,

Rockhampton Plaza Hotel is quite near to central park, the view is quite fascinating and helps to leave a

strong brand recall of Rockhampton Plaza Hotel.

2) Tactics for communication with customers – Customers have multiple options present in hotel or on

phone about the services offered in Rockhampton Plaza Hotel as well as places to visit in Queensland.

Rockhampton Plaza Hotel also has staff which is very experienced in handling customers. They give

consultation to people depending on their needs and make friendly guides available for them for

working(Copley 2004)

Recommendations for Rockhampton plaza hotel

We have done suitable analysis for 7P’s service Marketing Mix of Rockhampton Plaza Hotel. In the next

section, we have tried to come up with suitable recommendations. The recommendations are being

offered in areas of price parameter, promotion parameter, people parameter as well as physical

evidence parameter for Rockhampton Plaza Hotel

Recommendation for Service Parameter Pricing Strategy

When we talk about pricing parameter, the pricing strategy of Rockhampton Plaza Hotel needs to be

tweaked in order to be more flexible in accordance with the market pricing. We have given below

recommendations for them so that they can shift the focus of their pricing strategy

1) Generic Pricing formula needs to be arrived for Rockhampton Plaza Hotel which can be cost

based or competition based or consumer physique based. As we define the generic pricing for

Rockhampton Plaza Hotel, all of these should be strategically aligned and should make customer

attract towards Rockhampton Plaza Hotel because of justified value for money ratio.

2) Since current market conditions are more dynamic as the competition is heightened and

Rockhampton Plaza Hotel is feeling the heat. They should shift prices according to the

occupancy. In times where it is less occupancy, prices should shift down and when the tourist

season is on full swing, they should increase the password so that they can gain the price

advantage. This will not only simulate the customers to come to Rockhampton Plaza Hotel again

and again but will also increase the average occupancy rate as empty rooms are worse than

discounted prices (Jones 2008).

Recommendation for Promotion Service Parameter Strategy

On the same lines as of pricing strategy, the promotional strategy for Rockhampton Plaza Hotel should

also be updated as per the current needs of Rockhampton Plaza Hotel. Based on the analysis in previous

sections, the recommendations for promotional parameter are:-

1) They should increase collaboration with travel websites such as Groupon and offer lower prices

to them; this will increase the occupancy rate as well as exposure of Rockhampton Plaza Hotel

to overseas customers and can build brand loyalty globally. They should also increase

promotional activities there and give special incentives to promote the internet channel for

selling and booking.

2) Rockhampton Plaza Hotel should also work with travel agencies to promote their brands. This will

increase the cooperation level with them bringing in huge inflows of customers who opt for travel

packages rather than booking themselves. This might include helping these travel agencies by telephonic

advice to their customers seeking travel to Queensland and sending invitation letters to travel agencies

to come and have a look at Rockhampton Plaza Hotel to promote it for their customers (James 2009).

Recommendation for Service Parameter People Strategy

Rockhampton Plaza Hotel has focused from its inception on its staff, but the focus is not equal on

various parameters as well as comprehensive in totality. They should focus more on cross stream

training as well as employee satisfaction about his work.

1) Rockhampton Plaza Hotel should make the employee training more wide range of content like

behavioral training, communication as well as management skills for human resources under

which they can understand the customers better and tread on different yet more satisfying

paths for their future.

2) Also, Rockhampton Plaza Hotel should focus on increasing employee satisfaction in their work lines.

Since, customer satisfaction is dependent on satisfied employee working fully towards their cause.

Hence employee satisfaction is very important for any hotel. They should increase both monetary as

well as non-monetary rewards for its employees. Management of Rockhampton Plaza Hotel should also

show respect for the efforts of its employees towards their work and frequently survey their employees

to identify potential problems their employees are facing and correct them if required (Grant 1998).

Recommendation for Service Parameter Physical Evidence Strategy

Regarding the Physical evidence strategy, they are located near central park which is an excellent

location. The following recommendations are being given for better presentation inside the

Rockhampton Plaza Hotel in terms of Physical evidence.

They should keep changing their internal decoration so that customers whenever they come find a new

Rockhampton Plaza Hotel waiting to serve them. It can be seasonal or based on occasions. Also, they

should work towards better decoration in lobbies. The internal decoration is good but needs to be more

contemporary in nature, hence requires a revamp (Borden 1984).

Conclusion

This report talks about the &p analysis of marketing strategies of Rockhampton Plaza Hotel, a hotel in

Queensland, Australia, based on experiences and secondary research. Other than 7P Marketing Mix

application for Rockhampton Hotel Strategy, 4 different areas of recommendations have been given in

terms of price, promotion, people and physical evidence which are needed to be taken in consideration

by management of Rockhampton Plaza Hotel to tweak their strategy according to the needs of present

and to prepare for the future.

We have given recommendation in pricing, to be more flexible and seasonal in approach so that overall

occupancy rates can be increased, in promotion, to target internet as a channel and tie up with group

selling websites as well as travel agents to have higher exposure and awareness for its target markets, in

people , to work towards creating a better environment for its employees and increase their satisfaction

so that in turn they work towards better satisfaction of Rockhampton Plaza Hotel’s Customers, in

physical evidence, to work towards making the interiors more contemporary as well as make it more

flexible with changing festivities as per the local tradition

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