Contents

Contents..................................................................................................................... 1 Introduction:............................................................................................................... 3 Market challengers:....................................................................................................3 Accommodation:........................................................................................................ 4 Avari Analysis:............................................................................................................ 6 Vision:..................................................................................................................... 6 Mission:................................................................................................................... 6 Strategic management in Avari..................................................................................6 Marketing Objectives...............................................................................................6 Other Objectives:........................................................................................................8 SWOT Analysis:....................................................................................................... 8 Strength:.............................................................................................................. 8 Weakness:............................................................................................................ 9 Opportunities:.................................................................................................... 10 Threats:.............................................................................................................. 11 Marketing Strategy................................................................................................11 External environment...............................................................................................13 PEST Analysis:....................................................................................................... 13 Political:.............................................................................................................. 13 Economical:........................................................................................................13 Sociological:....................................................................................................... 14 Technological:....................................................................................................14

Internal environment................................................................................................15 Customers:............................................................................................................ 15 Target Market ....................................................................................................15 Types of Customers: .........................................................................................15 Competitors:..........................................................................................................18 Pre marketing mix....................................................................................................19 Segmentation........................................................................................................19 Targeting............................................................................................................... 20 Differentiation....................................................................................................... 21 Positioning............................................................................................................. 21 Marketing Mix........................................................................................................... 22 Product.................................................................................................................. 22 Level of the Product...........................................................................................23 Pricing................................................................................................................... 25 Approaches of Prices..........................................................................................26 Pricing strategies............................................................................................... 27 Place ..................................................................................................................... 29 Promotion ................................................................................................................ 31 Suggestions:............................................................................................................. 34 Bibliography............................................................................................................. 35

Introduction:
Mr Byram D Avari (Chairman) and his sons Dinshaw and Xerxes own and operate the Avari Group of Companies. Hotels are the core business. The Group owns and operates: The 240 room, full service "Avari Towers" Hotel at Karachi is a recipient of Consumer Choice Award 2008. An extension of 100 rooms with a Ballroom for 2000 persons and an Ante-room for 1000 persons with Ladies and Gents Spa and additional Meeting Rooms is being planned on its 22,000 sq. yards of city center land. This is the first 5-Star Hotel on the main road from Karachi Airport. The 188 room, full service Deluxe "Avari Lahore" Hotel is situated on 48,000 square yards of land in the city center of Lahore, abutting the Mall. A development of US$350M is also being planned consisting of 3 separate towers - Office Towers, Condominium Towers and a Deluxe 350 All-Suite Hotel Tower, with a 450,000 square feet Mall, 1400 Car Park and 2000 persons Ballroom, 1000 persons Pre-function Room. Avari Lahore is the recipient of 5 consecutive World Travel Award for the Leading Hotel in Pakistan. Market challengers: A market challenger is a firm competing aggressively in order to extend market share. A market follower is a firm not competing aggressively; that is aiming to maintain market share. Some companies seek to avoid too direct competition. They can do this by developing a market niche; that is, the firm makes a product that serves a special segment of the market as a whole. Avari is a market challenger and market leader in hotel industry is pearl continental.

Accommodation: The hotel boasts 188 air conditioned guestrooms and all of them are designed to offer you maximum comfort with features including, plump duvets, pillow menu, three telephones, voice messaging, satellite television, mini bar, tea & coffee making facilities, bright modern en-suite bathrooms and complimentary interactive TV (with movies on demand, music on demand, room service, Wi-Fi internet). To accommodate to meet the needs of the modern traveler the hotel also offers specialty accommodations.

Lady Avari Rooms - Accommodation designed for the single female traveler; providing cocooned comfort, privacy and security.. E-rooms Designed for the business traveler featuring in room Pentium 4 computers and printers. Suites A selection of suites are available from junior up to presidential for an added touch of luxury and service. Business Club Exclusive floor with private Business Club Lounge offering advantages such as private check in/out, continental breakfast and complimentary light snacks throughout the day. Executive Club The ultimate in luxury, an exclusive wing offering private car transfers from/ to airport, private check in/out, deluxe breakfast, complimentary refreshments throughout the day, complimentary 2 pieces of pressing per day and 24 hour butler service.

Facilities: In-Room Dining Whether it's breakfast in bed, an intimate dining or a quick midnight meal, Avari Lahore offers an unparalleled 24-hour, private, in room, fine-dining facility. In room dining menus feature a wide selection of choices from Pakistani specialties, Continental cuisine and selections from Fujiyama & Dynasty restaurants. Avari Lahore offers varied choices of ballrooms and function rooms as well as our award winning lush lawns. We really do have the perfect venue for your special day. Our dedicated team of event planners will be on hand right from the moment you make your initial enquiry up to the moment the last guest leaves. Everything can be taken care of from seating plans, room decoration, flowers, music, catering and cakes. Avari Lahore is providing excellent facilities to allow you to keep up with your usual fitness regime or simply to unwind and relax. These facilities include: Work out studio offering free weights as well as cardiovascular machines Tennis Court Open-air temperature controlled swimming pool Steam Bath

266 Meters Jogging Track

Table Tennis Ample landscaped gardens Ravissant Men & Women Beauty Salon

 Mens and Womens Health Spa Avari Analysis: Vision: To put our heart and soul delivering services beyond the customer expectation

Mission: To reach the customer beyond his satisfaction. For us the best is not good enough, excelling in excellence is where we focus ourselves Strategic management in Avari Marketing Objectives Customer Service: Avari Hotel Lahore will enhance the largest chain of hotels in Pakistan, which maintains the standards of excellence for which its prominent worldwide. At the hotels, the art and science of hospitality will apply in excellence to offer the most luxurious ambience and a wealth of services to the guests who are as precious as pearls. Training: The Investment in people (employee) and human resource development will be an ongoing process in the Avari Hotel Lahore to increase the efficiency and effectiveness.

Profitability: With the objective to maximize profit for Avari Hotel Lahore, well perform all those efforts that may cause to increase the profitability and enhance the development of the hotel, and to increase the reserve surplus for reinvesting on hotel as well. Growth Profile: The outstanding growth for Avari Hotel Lahore will be one of our major objective, Continued differentiation and growth are two goals we have set for ourselves, as huge investment will imply on this planed hotel only for attaining new profitable customers and profits as well, so every planning should be analysis carefully before implementation to reduce the chances of loss or down fall in growth. Traditional Hospitability: Avari Hotel Lahore will also be a synonymous with a tradition of personal services, efficiency, convenience and guest satisfaction. Repeat customers business due to their superb cuisine and courteous service which give full value for money, will be one of their most valuable assets. Health and Safety Environment: Avari Hotel Lahore will commit to constantly struggle for higher standards in health, safety and environment to their employees, and guests. The hotel management will very careful for the workrelated Safety and Health issues and to make stronger their "environment friendly philosophy". Environment of Professional Enhancement: As launch new Avari Hotel Lahore we strongly believe that without the development of top quality personnel, energetic

growth is not possible. Our core value will be "Growth and Development for All" with the elements of learning environment and opportunities, provision of world class education and training and support people with latest technological development. Other Objectives: To continue to communicate our marketing objectives to our target markets effectively, we have to do more in services, in Avari Hotel Lahore such as: To provide a positive hotel experience to all our guests to create the positive words of mouths. To accomplish our growth targets within the given time and budget to be update with time to time.

Expand current markets and identify new markets for our product and services to be a multinational business

SWOT Analysis: It includes the internal and external analysis of the company. That is showed as under: Strength: 1. Most experienced employees which have proven their loyalty with Avari. 2. Avari already has a great sign or symbol of high standard in the mind of customer due to its services

3. Avari bares the great advantages on the performances of maintaining good health clubs, swimming pools, squash courts, tennis courts and all other sports activities. 4. The major strength of Avari is its voice mail card locking system for perfect security. 5. The location of all the Avari Hotel contribute to its successful operations as they are not far away from the airports and lies in the heart of their respected cities. 6. Experienced workforce dedicated to mission. Employees feel part of the team Weakness: 1. As Avari being an old hotel in history bares a difficult weakness, as old customers do not prefer to visit the same hotel over and over. They prefer to experience something new. 2. High tax structure in the industry makes the industry worse off than its international equivalent 3. No continual evaluation updating of human resources practices and policies 4. Avari had a weak structure of entering in parking lots in all the cities. 5. Some of the open air restaurants are not giving actual quality products and also their environment is not clean as required by the customers. 6. The services offered by hotels are limited and will not meet with the world standards.

7. Lack of lift facility sometimes people have to wait a lot for their turn. 8. Law and order situation can also be a threat such as strikes. If law and order not maintain throughout the country people around the world would avoid to come to Pakistan and if people wont come then there will be no tourist so who will rent the rooms

Opportunities: 1. Events organized in the city give Avari a great advantage as number of customers/people increase and Avari get an opportunity to show its loyalty and services to its customers. 2. One of the opportunities grasped by events being held in the city is that as tourist increase and in the same way people book rooms and avail services rendered by Avari. 3. Another very good opportunity for Avari is to make a helipad on the roof of Avari or allocate specific area for helipad for VIP persons like politicians or business class. 4. Avari is the only 3 star hotel in Lahore which attract all the business class because many people see it as a symbol of executive standard as compared to other hotels 5. Lahore is industrial and agricultural hub which attracts much business man from, so these customers are opportunity for Avari in addition to local ones 6. In the long-term the hotel industry in Pakistan has latent potential for growth. This is because Pakistan is an ideal

destination for tourists as it is the only country with the most diverse topography. 7. Unique experience in heritage hotels

8. Take advantage of emerging markets, especially with business class and mid-priced markets 9. Spas that specialize in personal services

Threats: 1. 2. 3. Terrorist activities in Pakistan Political instability in Pakistan Entrance of other big hotels in Lahore like PC

4. Other organizations may attract employees and business away from us 5. Guest houses replace the hotels. This is a growing trend in Pakistan, thus diverting the hotel traffic. 6. Political involvement in the area reduces tourist traffic and thus the business of the hotel 7. Changing trends in the international market

8. The economic conditions of a country have a direct impact on the earnings in hotel industry. Marketing Strategy The main purpose of marketing strategies is to achieve all those objectives that we have planned; those objectives can be achieved by:

According to first objective, well make development in our H.R department who will trained every employee to provide better and best services to the customer ever. To achieve the second objective well apply new management concepts and intensive training programs, incorporate at all levels of supervisory and managerial positions. For attaining the third objective different marketing programs will be launched, and focus more on providing efficient services that will causes to reduces cost and in return the profit will increase. Forth objective can be accomplished with excellent service, improvement in decoration and facilities, variety of cuisine, expansion/addition of banquet halls, increase in airline catering business, and permission to serve food at marriage parties. Growth will also take place by targeting new areas of business within both local and national communities.

Focusing carefully on service marketing mix the fifth objective can be achieved, it could be hard but not impossible. Well have to undertake a number of steps to get the sixth object, which include periodical meetings and safety training of associates to adjust the human resources and create safety awareness among them.

As the technology is going on toward new era, so we have to obtain new technology in our hotel, as well as trained our H.R department so that they may aware with new changes in

world, as enough as they make professional enhancement in people.

Included with all, new people must be hired that will work with old people who are experienced so with the combination of old experiences and new generations mind and power and using them as positive all objectives can be achieved. External environment PEST Analysis:

Climate that affected to hotel directly or indirectly includes PEST analysis that relates with four elements that are given as under: Political: Politics has much impact on service Industry, because frequent change in the government policies or frequent change of government will affect the Avari Hotel Lahore in the following ways such as, GST Import duty Freight charges Excise duty etc. Can cause to disturb the hotel internal policies such as, cost methods, decision making process etc. Economical: If there is any increment in inflation or devaluation then the hotel will directly effect. If the economic situation of the country remains stable then it invites more visitors or tourists to visit the

country and bring more business in the country. Due to the visit of businessman and tourists the hotel industry also has some benefit and vice versa. Sociological: Social factors also affect the level of consumption of services. Because sometimes due to special event or social factor people ready to buy or use specific service such as in case of Happiness or sadness

Special events such as Eid

Marriage Conferences Parties Any other event having much impact to increase or decrease in sale Technological: Technology has great importance in the service sector, modern and up to date technology can provide better services to customers like in hotel industry technology play a very important role. Technology in hotel provide the customer certain benefits Modern capsule lifts Electronic stairs Computerized record of customer data Reservation through internet Payment through credit card from internet

 Intercom facility Wi-Fi facility CCTV cameras for security Electric auto boiler The updating in technology helps to get the attention of target customer and also help to retain the existing one. Internal environment Customers: Target Market As selected location, the target market/ customer are as follow: Landlords Industrialists Corporate client Rich business men Business traveler Sports person Films / drama star
Political persons etc.

Types of Customers: There are many type of customers as we have targeted, these are divided under two major categories:

 Upper class Middle class Upper class: Upper class customers are the persons who are very much rich and having so much money to spend, they are very much strong in business position as well as in financial position or in one, so they can afford our services of Avari hotel. Owners of lands Industrialists It includes further two types according to the purchasing power that are given as under:

Upper upper class Upper lower class

Middle class: These are the person who have at least so much money that they can easily afford the room of hotel, as in Lahore these may be the owner of small factories that are considering more to export only, as well as landlords and many of these types of peoples who have money to spend for luxuries but less purchasing power than upper class. It further divided

into three kinds according to purchasing power, which are given as under: Middle upper class Middle middle class Middle lower class

Number of Customers: There are lots of customers that cant be calculated exactly because these customer are may be domestic customers or may be international customer as foreigners, however the strength may increase on specific events such as marriage ceremony, EID, Basant, Business meetings etc.

Value Drives: Well provide the services that will not satisfy the customers but the souls! Well provide not only good quality of services but also the comfort as luxuries that they desire. Some key value drivers are Luxurious rooms that offer a sense of doing business from 'home. Staff that have a strong customer-service ethic. Business facilities We include business essentials in every room, such as

 Nice desk Internet connection Wireless access Easy to access meeting rooms with all audio-visual and technology needs as well as catering for longer meetings. Decision Process: Many customers prefer Avari hotel more than other hotels, because of good quality services at an economical and affordable charges, and good market reputation that they created from many years. So by keep forwarding this strategy in Lahore well make innovations with the passage to the time to time to persuade the customer to make decision to use our services.

Competitors: Because of a good repute and famous hotel it is too hard to compete with Avari hotel, anyhow according to location, we have selected few hotels that are existing in Lahore, as Avari competitors, some of them majors are as follows: Pearl Continental

Pre marketing mix Segmentation A market segment is a sub-set of a market made up of people or organizations with one or more characteristics that cause them to demand similar product and/or services based on qualities of those products such as price or function. A true market segment meets all of the following criteria: it is distinct from other segments (different segments have different needs), it is homogeneous within the segment (exhibits common needs); it responds similarly to a market stimulus, and it can be reached by a market intervention. The term is also used when consumers with identical product and/or service needs are divided up into groups so they can be charged different amounts. The people in a given segment are supposed to be similar in terms of criteria by which they are segmented and different from other segments in terms of these criteria. These can broadly be viewed as 'positive' and 'negative' applications of the same idea, splitting up the market into smaller groups. We divide segment according to Geographic Demographic Psychographic Behavioral Avari divided their market according to demographics and in demographic Life style and income which are as follows Life style High Middle

 Low Income High Middle Low Targeting It involves breaking a market into segments and then concentrating your marketing efforts on one or a few key segments. Target marketing can be the key to a businesss success. The beauty of target marketing is that it makes the promotion, pricing and distribution of your products and/or services easier and more cost-effective. Target marketing provides a focus to all of your marketing activities. There are different targeting strategies which are as follows Undifferentiated marketing Differentiated marketing Concentrated marketing Local marketing Avari selected differentiated marketing and picked some segments of marketing like

High class Middle class

For example Landlords Industrialists Corporate client Rich business men Business traveler Sports person Films / drama star Political persons etc. Differentiation Any marketing strategy that seeks to highlight differences between products is called differentiation. That is, in addition to advertising the lowest price for a product, a company may differentiate its products by advertising that is has the best quality, the most convenience, or even the best packaging. Product differentiation is especially important where competition is stiff and companies cannot afford to charge much less than they do. Avari makes their product and services different from his competitors. Positioning In marketing, positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization.

Positioning helps establish your product's or service's identity within the eyes of the purchaser. A company's positioning strategy is affected by a number of variables related to customers' motivations and requirements, as well as by its competitors' actions. Avari positioned their selves amongst people of high living standard. Avari positioning strategy is high for high which means that they are providing high value services and charging high price. Marketing Mix Product Product is anything which is offered to customer for attention, acquisition and consumption which will satisfy the wants and needs of the consumer. In hotel our main product will be: Rooms food & basic facilities We can classify this product in two types 1) Tangible Product 2) Intangible Product Tangible: Tangible product means that which we can see or touch. In hotel some tangible products are: Room

 Gymnasium Swimming pool Towel Soap; shampoo etc All these things are tangible goods. Tangible goods are normally consumed quickly & purchased frequently. Intangible: Most services are intangible in nature that we cannot see, feel and smell. In hotel intangible services are: Welcome the customer

Communication of receptionist etc.

Level of the Product Core Product: Core product means basic needs of consumer which is satisfied by the product. In hotel basic product is room, food, cleanliness. The second level, marketer has to give core benefits into basic product. We will provide 5 types of basic product rooms i.e. Exectives Rooms Business Room Deluxe room Avari Lady Room

 E Room

Expected Product & Services: Expected product & services means a set of attributes, features that customer except when they get or purchase the product or services. Hotel guests expect: Clean rooms Hospitality services Food &also fresh water Bath kits Lcd TV. Facility Laundry facility Peaceful atmosphere etc Actual Product Potential product is a product which combines all the possible up gradation & transformation into the product. We will provide a potential product that is coffee shop, restaurant, banquet hall, indoor catering, parking areas, swimming pool, health centre, beauty parlor for ladies & gents, garden facilities, safe deposit lockers, money exchange facility these all the potential product will be provided by Avari Hotel Lahore. Augmented Products

Product augmentation leads the marketer to look at the users total consumption system. It also leads to provide a core plus supplementary element that add value for customers. Our augmented product will be: Pick up facilities Provide vehicle for the tourist Banquet hall Conference room for meeting Parking facilities A large garden Pricing

Pricing is the process of determining what a company will receive in exchange for its products.
In pricing strategy Avari is using Market skimming strategy in which avari selected high class of elite class and charges high process from them. So in hotel industry it is difficult for a hotel to exercise differential pricing except for certain specific purposes. Different prices are offered in different situations like Prices during the peak and lean season Group rates Contracts rates for airline crew

 Special conference rates Pricing standards applicable to the Particular city area or resort To competitive hotels To the amount of traffic generated in the hotel location Tourist location International or national conference venue Charges/Rate of Avari Hotel Room Type 1. 2. 3. 4. 5. 6. 7. 8. Deluxe Single Deluxe Double Business Single Business Double Lady Avari Room E-Room Executive Single Executive Double Charges 12,210 14,710 14,210 16,710 12,710 13,710 19,210 24,710

Approaches of Prices

Cost Based Pricing Here the pricing is decided according to the cost of hotel. There are two types of cost Variable cost & fixed cost Total cost = fixed cost + variable cost Fixed Cost in Hotel Cost of buildings Salary of employees & executive Room maintenance Infrastructure facility cost etc Variable Cost in Hotel Doctor services Food cost

Raw material cost etc.

Pricing strategies Value Based Pricing It means what value of your hotel in the mind of customer. So this hotel will be introduced by the Avari Hotel which has a very strong brand image. So we will charge high price as

comparative to other hotels because of providing extremely best level of services to the customers. There Are Two Parts of Pricing Monetary Aspect Monetary aspects are related with the quality of the service. Its related with: Price Quality Relationship

Price & quality you can judge in the product but in the service marketing the customer cannot judge the price of quality, because in service there is lot of variation in services, every time the customer feel different experience in service, even provided by the same person.

Mechanization of Services

Mechanization means technology of the services. Like internet facility, car wash facility, automatic clean of swimming pool facility, booking through computer, ordering facility from the room by customer as well as to provide security by using modern technology. Non Monitory Cost

Non-monetary cost include Time Psychological effort Physical effort Sensory cost Time taken to bring the customer from airport to hotel, expense of car, expense of driver, distance of airport, effort to arrange all that etc. All these are non-monetary cost bared by the customer. Place Location is the main part of the hotel industry. Because for starting of a new business of any type, we have to find the resources that we need to run our business according to our businesss nature, as well as the important part as customers access. Locations of the business also persuade the customer to use the product or services of business so according to this the location of Avari Lahore is 87 Shahrahe-Quaid-e-Azam, Lahore. Access Access means that how easily the customer reaches to the hotel from different part of the cities. Here we calculate the time that the customer has to spend for travel from some main places like from

Allama Iqbal International Airport 12.5 Mi - 20.0 KM American Consulate2.0 Mi - 3.2 KM Anarkali Bazaar2.0 Mi - 3.2 KM

Badshahi Mosque4.5 Mi - 7.2 KM Fortress Stadium and Convention Centre3.0 Mi - 5.0 KM Jahangirs Mausoleum6.0 Mi - 9.7 KM Lahore Fort4.5 Mi - 7.2 KM Lahore High Court2.0 Mi - 3.2 KM

Traffic Problem If there are traffic problem to reach to the hotel than Customer feels dissatisfaction and feel tiredness so the path of journey should be clear and easily reachable. Surrounding Surrounding area of Avari Hotel Lahore is beautiful there are very charm environment, important shopping malls, restaurants and many historical places are near to the hotel, where customer can easily visit. Another main consideration is that the area must be clean and free from noise. Roads must be clean and properly developed. Garden should be near to the hotel where customer can go for a walk in the morning or evening. Parking Facility It is very important to provide a proper parking facility near the hotel or may inside the hotel and also proper security system and also give insurance to customer if their vehicle

damage or theft in hotel parking due to the negligence of hotel staff. We provide:

Parking facility in Avari Hotel Lahore with 250 to 300 car capacity

Two basements will be specially made for parking Modern security system for safety of cars

Promotion Perhaps this element of the hotel marketing mix is most important as it is directly responsible for bringing customers to the hotel. Hotel marketing communications are either direct or indirect. The direct communication is through: Personal selling Advertising Sales promotion Indirect marketing communications for hotels include Public relations Publicity The major elements of the hotel communication mix are Mass media advertising

 Direct mail Sales promotion, Public relation, and publicity Promotion Elements Advertisement Most important part is advertisement through which the customer comes to know about the organization and about its product or services. The main thing in advertisement is first of all we look at the message that we want to convey to our customers and then decided the source through which the message sent to the target customers. Message can be sent in terms of punch line or in terms of logo etc The Avari hotel symbol is also used for its advertisement Other sources of advertisement are Banner on websites Own web site Through calls to regular customers Billboards Tie up with popular brands like Pepsi Newspaper (Dawn, The News, The nation etc) Sales Promotion

It means to promote sales for the shorter time period. We have a strategy that we do not give any discount in peak season but giving discount in only lean season. The discount is only for shorter time period (only for lean season) but we offer some price discount if the customer made booking at least two weeks before. Personnel Selling Personnel selling are very important factor in the service marketing. Personal selling can be done in such ways like Face to face communication Direct phone calls Direct emails etc Publicity & Public Relation It means it is the paid form of product exposure to the target Customer. Publicity includes social activity Press conference. Events sponsorship Service communication: Provide Tangible Clues: Pictures Tangible clues can be provided in the shape of

 Videos Views of customers

Suggestions:
1. Provide training to the staff according to international

standard, and give proper training to every staff member in the probation period 2. On continuous basis update technology and furniture 3. Continuously observe the new trends that are used in the global market and try to make them applicable in the organization 4. Consider effectively 5. Thumb scanning technology need to be used on rooms door to give more protection to customers
6. Show different videos and different situation to staff

each

and

every

complaint

of

customer

seriously and provide solution to that sharply and

that how to deal with different kind of customers

7. Give an inner look of different rooms along with the

facilities and their rent, so that customer choose their room easily according to their requirements

8. Hire cooking specialist from foreign countries to traine

local cooks that how to made foreign food 9. Provide each and every information to staff about organization products and services 10. Provide the helipad facility in order to save time for politicians and other executive class

Bibliography
http://www.avari.com/avarilahore-36-LocationandFacilities.html http://www.avari.com/avarilahore-36-LocationandFacilities.html http://www.avari.com/avarilahore-13-DiningAvariLahore.html http://www.avari.com/avarilahore-15WellnessLeisureAvariLahore.html http://financial-dictionary.thefreedictionary.com/Differentiation+ (marketing) http://www.entrepreneur.com/encyclopedia/term/82364.html http://en.wikipedia.org/wiki/Positioning_(marketing) http://www.blacksacademy.net/content/3571.html