1. International Operations Plan -
Marriott Ukraine
Kate Radishevska
Selling Comfort Around the Globe

2. Highlights
• Opportunity
• Ukrainian Economy
• Investment Risk
• Competition
• Target Market
• Market Strategy
• Sales Strategy
• Final Suggestions

3. Opportunity
• EURO Cup 2012 will be hosted in the 4 major
cities of Ukraine: Donetsk, Kharkiv, Lviv and
Kiev
• Ukraine will need:
– Additional hotel infrastructure
– To accommodate thousands of soccer fans
traveling for the Euro Cup in 2012
– 30-40% growth in the hotel and other tourist
services

4. Ukraine
• Second largest country in
Eastern Europe
• Free Market Economy
• 2008 GDP Growth: 8.45%
• 2008 Inflation Rate: 12.8%
• 2008 Unemployment: 2.3%
• 2009 Population:
45,700,000
• Literacy: 99.4%

5. Investment Risks
Risks Effects Solution
Government Instability Business and Political
Environment
Ukraine Foreign
Investment Laws
Policy Instability Business Flow UK Foreign Investment
Laws
Corruption Overall Business International Corruption
Laws
Competition Marketing Strategy Competition Law in UK
Tax Rates (No taxes on Real
Estate, Insurance is
Optional)
High Tax Rates for
International Firms
Tax Deduction Laws for
Investors in the Tourism
Industry

6. Competition
• Current Ukraine Hotels:
• 1300 Hotels
• 3200 Resorts
• 4000 Private Hotels
• International Standards:
• Parking
• Concierge and Room Services etc.
• Stable Tourism Growth, 23M in 2008
• Hotel Supply is less then 5%, demand is up to 20% a
year and growing
• Average Occupancy Level is 60-70%

7. Target Market
• 45M Ukrainians
• 23M Annual Foreign Travelers
– Purpose: leisure or business objectives
– Optimistic: frequent travelers and members
– Sports fans: soccer tournaments

8. Marketing Strategy
•Newspapers
•Flyers
•Billboard
•Magazines
• Yandex.ru
• Ukr.net
• Marriott.com
•NRCU
•NRCU International
•“Promin”
•Popular Local stations
• Inter
• “1+1”
TV Radio
Local
Media
Internet

9. Sales Strategy
City In Season Off Season
Kiev $281 $250
Donetsk $152 $120
Lviv $120 $100
Kharkiv $97 $75
• Market Penetration Strategy
is an Aggressive Low Price
• Middle Class Consumers
• Competitive Pricing on All
Amenities
• Sophisticated Image
• Think Long Term, but Focus
on the Present
• Middle Class Affordable
Proposed Room Prices

10. Final Recommendations
• Concentrate on One City at a
Time
• Joint Corporation with
Ukrainian firm or individual
• Renovate Existing Building
• Choose a Central Urban
Location
• Maintain the Marriott
Standard
• Offer a Variety of Amenities
• On-Site Parking
• 3-4 Star Hotels

11. Questions