1. MARKETING PLAN
ANALYSIS
ASSIGNMENT
HTAP 302-001
COSMOPOLITAN HOTEL
TORONTO
8 Colborne St, Toronto, ON M5E 1E1
Mara Rodas
300759489
Jing Yang
300776569
Paul Simon
300507213
Milagro Rebolledo
300758268
Khushboo Gurnani
300775573
Professor:
Jannett Ioannides
DATE:
August 12, 2015
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TABLE OF CONTENTS
COMPONENTS Pages
1. Executive Summary 2 and 3
2. Mission Statement 3
MARKETING PLAN RATIONALE
3. Situation/Market Analysis Highlights
a. Environmental, Location and Community
Analysis
i. Competitive and Industry Trends 4 and 5
ii. Economic Trends 6
iii. Political and Legislative Trends 6 and 7
iv. Societal and Cultural Trends 7 to 9
v. Technological Trends 9
vi. Location and Community Analysis 9 to 11
b. Primary Competitor Analysis and S.W.O.T 11 to 16
c. Market Potential Analysis 17 to 28
d. Self-Services Analysis and S.W.O.T 29 to 51
e. Marketing Position and Plan Analysis 52 to 54
4. Selected Marketing Strategy
a. Market Segmentation and Target Markets 54 to 58
b. Marketing Mixes 59
c. Marketing Strategy
i. Alternative Strategies by Market Focus 59
ii. Alternative Strategies by Product Life Cycle Stage 60
iii. Alternative Strategies by Industry Position 60 to 61
d. Positioning 61
e. Marketing Objectives/Goals 62
IMPLEMENTATION PLANS
5. Activities Plan 63 to 68
6. Marketing Budget 68 to 69
7. REFERENCES & OTHER SOURCES 70 to 71
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COSMOPOLITAN HOTEL EXECUTIVE SUMMARY
Cosmopolitan Hotel is a stylish boutique hotel and spa located in the heart of Downtown Toronto.
The hotel’s guestrooms are exclusive and spacious which are carefully and contemporarily
designed. If you stay in one of Cosmopolitan’s Hotel rooms, you will enjoy a panoramic view of
Toronto’s city skyline. Cosmopolitan Hotel has two meeting rooms named the Aura and the Chi in
which both can fit up to 40 people. Our executive boardrooms with blend cutting-edge technology
in a stylish setting can accommodate your group whether your purpose is to have a meeting or a
social gathering. With our excellent service support, your next corporate meeting, or social event
will be unforgettable. For ultimate relaxation, Cosmopolitan Hotel offers the best health and
wellness services at our SpaZen. SpaZen has a wonderful team of specialists who will cater to your
every need and to relieve every inch of stress both in your body and mind. Services such as facials,
massages, wellness rituals, and hair, nail and body care treatments are just some of our spa
offerings that will surely renew and refresh all your five senses.
Through the economic changes, political developments, the advancement of technology, and new
markets emerging, the world of hospitality and tourism will surely face new trends that will rise
and change the industry. In order to adapt to the changes in the industry, and for Cosmopolitan
Hotel to attract its target markets: business travelers, couples and young leisure travelers, the hotel
team plans on implementing new strategies to offer the best services to our clienteles:
Reconstructing and redesigning Cosmopolitan Hotel’s website
Develop an app to give our customers an easy and convenient way of booking their rooms
Joining and updating all Cosmopolitan Hotel’s profiles in all social media platforms:
Facebook, Twitter, Tumblr, Instagram and Youtube – this is the most affordable way to keep
in touch with current and potential customers, and to get new ideas from real customers
that belong in our target market to help us understand what they really want. Based on our
survey, not many people know our hotel, and the only way to turn this around is to make
sure we expose ourselves in the world of social media.
We believe in providing the most authentic and personalized services that will make each
and every one of our guests feel special, therefore, Cosmopolitan Hotel will require all our
employees to participate in our new and developed employee-training program. This will
help us improve our brand ambassadors for they are the ones who see and interact with our
guests, whether it is face-to-face, via phone or computer screen on a daily basis.
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Last but not the least, Cosmopolitan Hotel aims to please. The only way to compete and be
better than our competitors, we will develop new packages, and establish new partnerships
to increase our room sales revenue by incorporating our spa and food services which are
already available in the hotel. More detailed action plans to attain these goals are listed on
page 62 of this document.
Packaging, partnerships, programming, as well as developing our products and services are just
some of the steps that the whole company will take in order to achieve our goals for Cosmopolitan
Hotel. This whole report represents the company’s effort in researching and studying every aspect
of the business’ field – not just the company itself, but the target markets, the competitors, and the
trends that will help us seek ways to improve our company and to maximize Cosmopolitan’s growth
within the industry.
(NEW LOGO)
MISSION STATEMENT
We are a contemporary boutique hideaway that focuses on giving our guests the most authentic
hospitality services. We create, innovate and manage a lifestyle hotel that every guest is looking for.
We take pride in giving all of our guests a warm and personal yet extraordinary experience. We are
an exclusive urban hospitality company; the first choice of guests that travels in style. We welcome
you to the Cosmopolitan Hotel – a lifestyle hotel that you have been dreaming of.
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MARKETING PLAN RATIONALE:
SITUATION/MARKET ANALYSIS HIGHLIGHTS
ENVIRONMENTAL ANALYSIS
Competitive and Industry Trends
The competitive space within the hotel industry is ever-changing. There are no such things as the
independent or branded hotels, but consist of more search options (mega search) and other lodging
substitutes. The consumer market has opened up a large supply of travel accommodation thus
finding more ways to cater them in their needs to which the competitors will adopt to that idea.
Another trend that the industry is facing is the Millennials. Millennials are willing to pay more for
the experience whether it is gourmet food, bars, or a place to party. Millennials are also vocal on
their needs and wants and these can usually be found in websites such as Facebook, Twitter, Yelp,
Tumblr, etc. These sources give the hotel and its competitors several ideas to better themselves and
to present their product that will lure and attract the Millennials.
The industries that have experienced successes are those hotels that implement Sustainability
within their companies. For example, due to the fact that people are now environmentally aware,
hotels like Groupe Germain Hotels have incorporated sustainability in their business. Hotels using
eco-friendly materials can be viewed as “caring” for the environment.
In this era, technology is a necessity as well as a requirement for some people. An example of this is
mobile booking, where one can book rooms on a smartphone. Both Hilton and Starwood will soon
implementing using the app to lock/unlock room.
The Millennials right now are heavy food users, 48% of which eat in restaurants at least twice a
week as well as seek affordable restaurants more often. Restaurants that possess these “affordable”
prices are doing quite well in the industry receiving many customers. The foodservice is a big
necessity for Millennials – it is a need that they require so much that they would rather give up
technology for a week, than to have no food service.
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Right now, leisure travel is huge in the hospitality and tourism industry due to the fact that there
are many target markets that are willing to spend their money on it. For example, Millennials will
spend money in exchange for relaxation.
New viable substitutes like using an app is a good start in terms of putting the Cosmopolitan’s name
out and giving the new and loyal customers an easier time booking reservations. The app can also
contain promotions and limited-time offer packages, such as the TIFF package, to be made aware. A
good substitute would be partnering with more restaurants that cater towards the modernized
people. Another substitute worth mentioning is the website needing major renovation. The website
should be more accurate and present their strong points and promotion, perhaps adding different
room designs, and anything that would present the hotel with better positioning in the customer’s
mind.
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Economic Trends
Canada’s economy as of the moment is not the best over the past few years. However, Canada’s
economy is not the worst in the world either. The Canadian dollar is not at its strongest position
right now compared to the American dollar because 1 U.S Dollar is equivalent to 1.312 Canadian
Dollars. Since this reason means that the Canadian economy is not good and that alone can result to
Canadians not traveling anytime soon. Though this is the case for Canadian travelers, Canada can
still expect to have more inbound travelers, especially Americans due to the fact that Canadian
dollar is low, meaning they have an advantage if they choose Canada as their destination.
In 2015, Ontario has been benefitting from low oil prices. The region’s economy is well-positioned
in the improvement aspect of manufacturing, agriculture and tourism. The benefits of having a
lower dollar worth and cost savings by consumer and business will definitely push up the
province’s Gross Domestic Product (GDP) growth to 2.7 percent for the next two years compared to
2013’s 1.3 GDP and 2014 1.9 GDP.
Tourism Ontario states that in 2013 on the city of Toronto welcomed a total of 13.69 million
overnight visitors including 1.42 million visitors from overseas market. Each year the hospitality
and tourism industry is growing which means that there are more jobs to fulfill in this industry, and
this can help boost up the country’s economy.
The chart above shows how the industry is on the rise because it is growing. This is an opportunity
for hotels, like Cosmopolitan to fulfill the economic needs of Canada by increasing room occupancy
sales, food and beverage sales, and developing partnerships.
Political and Legislative Trends
The Government of Canada is committed to creating the most favorable and the most advantageous
conditions for Canadian businesses including the hospitality and tourism businesses, all to be able
to compete and be recognized internationally. Free Trade Agreements (FTAs) and Foreign
Investment Promotion and Protection Agreements (FIPAs) between Canada and its trading
partners are creating new opportunities, and developing new projects for which will all benefit the
businesses in the hospitality and tourism industry. For instance, the industry wanted to attain an
approved destination status (ADS) in China because this status is critically important for Canada to
have, especially in Toronto since China is now the world’s biggest source of tourists. Fortunately,
the Government of China granted Canada Approved Destination Status, and this will definitely have
a positive impact on Canada’s economy.
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Considering the security of the country and the comfort of travelers, Canada Border Services
Agency created programs - NEXUS and CANPASS to help frequent, low-risk and pre-approved
travelers enter Canada smoothly:
NEXUS is a joint Canada–U.S. initiative designed to speed up border clearance for low-risk,
pre-approved travelers going to either country.
CANPASS expedites border clearance for low-risk, pre-approved travelers coming to Canada
by air and water, including in private aircraft and pleasure boats.
Furthermore, in order to improve Canada’s accessibility, the Blue Sky Policy was officially adopted
by the Government of Canada in 2006. The Policy has become an important vehicle to promote
connectivity between all Canadian regions and the world. (Tourism.gc.ca, 2014)
The Ontario government is in a position where it owns and operates tourism product, undertakes
marketing, and plays a role in regulating, overseeing and partnering with the industry. According to
the premier of Ontario, the Ontario tourism ministry has established the following priorities:
1. Creating a Healthier Ontario through Sport and Active Recreation
a. Continuing to promote an active lifestyle and increased participation in sport,
recreation and physical activity for all Ontarians.
b. Implementing a refreshed Ontario Trails Strategy, including the introduction of
trails legislation. This legislation will make thousands of kilometres of trails
stronger and safer, and will also support the Pan/Parapan American Games.
2. Revitalizing Ontario Place
a. The goal is to create economic opportunities for tourism and investment and
transform the site into a year-round, multi-use waterfront destination for people of
all ages.
3. Building a Dynamic Business Climate
a. Promoting Ontario’s entertainment and creative industries. Ontario’s creative
industries are a pillar of this province’s new economy. Continuing to work with the
tourism industry and regional tourism organizations to support the sector’s
economic growth and encourage collaboration among tourism industry partners.
(ontario.ca, 2014)
The following priorities listed above will certainly have direct impacts on the business of the
Cosmopolitan Hotel because these developments will increase the volume of visitors in Ontario,
thus more chances of business and leisure travelers staying at the hotel.
Societal and Cultural Trends
It is official that lifestyles have changed in the past decade where choices before would differ from
the ones now. For example, Vegetarianism and Veganism is very popular in this generation because
of the awareness of animal welfare. Back then people are vegan or vegetarian for health reasons,
nowadays, people pick this lifestyle because they want to. In the food navigate website, “36% of US
consumers either prefer milk alternatives or use a meat alternative, which is substantially more
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than those who claim to be vegan. Another lifestyle that is a necessity for the people is availability
and convenience – people want things that are available 24 hours, 7 days a week. People are more
career-minded nowadays, and most of the time, people are preoccupied with a lot of
responsibilities during the day, and sometimes night, having a business that is available 24/7 will
surely be appreciated by busy people. With the help of the internet, a business can certainly break
the walls of traditional business hours. One more lifestyle that is especially showing signs of activity
is Gym and Spa from people 16 and above. Why try to be healthy later when you can start now?
Whether their reason is for health, physical fitness or other intentions, working out at a gym has
been a necessity for some people, a trend that is showing growth within the society.
The sections that are growing the fastest are the self-proclaimed “hipster”. They are the people that
follow the latest trends, for example fashion, that is outside the cultural mainstream. Another
section that is growing fast is the bodybuilding subculture – again in reference to the health and
wellness lifestyle that people want nowadays. People are very interested in being healthy and/or
looking good and what helps them feel better is by being active – exercise. And finally, with growing
awareness and acceptance increasing in the world, the people who are in the group of LGBT are
more vocal about what they want including their lifestyles.
Cosmopolitan Hotel has three target markets: business travelers, couples, and young leisure
travelers. In each target market, new trends are starting to take place within the industry. In this
day and age, people have their professional and private lives with them wherever they go – their
cellphones, their tablets, etc. According to a lifestyle website called Skift, Business Travelers no
longer travel just for business, but also for leisure – “bleisure”. With the technology advancing, it is
not impossible for front desk agents to be replaced by Kiosks – for travelers, most especially
business travelers, prefer to have a smooth, stress-free smartphone-check in. For couples, they are
mainly looking for places and destinations without a lot of noise and buzz. Couples nowadays
appreciate very serene, tranquil and less crowded attractions, including the hotels or resorts they
stay at. Before, the most popular honeymoon destinations were Hawaii, Paris, Las Vegas and
Mexico, but these days couple go for destinations such as Maldives, Brodum (Turkey) and Austalia.
For young leisure travelers – the millennials, their main need that has to be met is whatever they
have in mind. Sounds vague and difficult to understand, but once you find what they are saying in
social media, you can easily give them what they want. Millennials are living the world where
technology and communication goes hand in hand. Millennials pick up ideas – including their next
travel ventures or “bucket list” from Tumblr, Facebook and Pinterest. Food festivals and outdoor
travel pursuits are just some the trends that are popular in the millennial market. What was once a
hidden gem, all of a sudden becomes the main attraction. Certainly, social media is the new pop
culture for millennials. This will impact Cosmopolitan Hotel because if they are not updated, and
are not on social media, then Cosmopolitan Hotels needs to start creating their profiles and get its
businesss known out there.
Since Cosmopolitan Hotel is limited when it comes to its options, services and products, it will be a
challenge for them to attract people to stay in their hotel. However, the facilities that they already
have like the fitness center and the spa can be used to attract the market of health and wellness
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enthusiasts. And possibly, more research and development can be done to successfully target their
three markets.
Technological Trends
Technological developments keep on growing and they keep on improving every aspect of human
life. These developments also focus on improving people’s leisure time which only means that
technology holds quite a big role to play in the hospitality industry. Some technological trends have
become common and are practiced by most of the businesses and hotels in hospitality, including
the Cosmopolitan hotel. The Cloud Software as a service is used by many of the hotels around the
world in order to store their information without having to go through a high rate of hardware
expenses. Hotel premises also offer mobility, and it has become the new face of computing. Through
this feature, customers are able to have instant access to the company and are able to purchase
products and services online. Social media is another tool that has had a huge impact in the world of
hospitality. Websites such as Facebook and Twitter are very influential to customers and help with
the advertisement. Social media also has the perks of letting businesses know what clients think
about them. And finally, the advancement of the Internet – the availability of Wi-Fi which has
become more of a must and a necessity than just an option to guests. Guests usually expect a high-
speed free Wi-Fi when staying in a hotel. The Cosmopolitan Hotel offers services that keep up with
technological trends, and this only means that Cosmopolitan Hotel likes to stay on point with the
advancements. (Mclndoe, 2013)
Other than the mainstream and widely accepted technological trends, there are also some
innovative developments that are being recently introduced in the hospitality industry. Device and
entertainment anatomy is one of them; where the hotel room is designed in such a way that guests
have no trouble in accommodating their technological gadgets. In other words, a set of different
plugs is placed in a certain area of the room so that it is convenient for the guest to organize the
placing of their devices. The Cosmopolitan Hotel, because it is a modern boutique hotel, also offers
this trend as an amenity. To add, there’s the service automation for guests who are in a hurry and
would rather check-in and check-out by themselves. This is a very good self-serve option in this era
of credit cards. Hotels are opting more for digital signage rather than using printing signs, which
does not only help hotels give a more modern look to their premises, but it also makes it more
interactive. Another trend that the Cosmopolitan Hotel also embraces is “meeting spaces going high
tech”. With the variety of options and ways in how a meeting can be held, it is very important to
give an adequate space to the meeting holders where Cosmopolitan Hotels not only meets their
expectations but also exceeds it. (Watkins, 2013)
LOCATION AND COMMUNITY PROFILE ANALYSIS
Industrial and Other Employment Base
Since Cosmopolitan Hotel Toronto is located near the financial and entertainment districy, there are
a lot of industrial and other employment bases around the area. It is only 30 minutes away from the
Toronto Pearson International Airport and just minutes away from the Toronto Island Airport. The
hotel is surrounded by important industrial landmarks of Downtown Toronto, such as the Eaton
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Centre, Yonge-Dundas Square, Air Canada Centre, BCE place, and Metro Toronto Convention Centre.
Other artistic premises also add more to Cosmopolitan’s Community: Roy Thompson Hall, the Art
Galley of Ontario, Royal Alexandra Theatre, and the SONY Centre of Performing Arts.
Population Characteristics (Demographics)
The demographics that surround the area are very multicultural. This is what gives Toronto and all
the other businesses located inside it a unique feel. The hotel might be located in a very tranquil
area, but just minutes away there’s access to all sorts of population. There are neighboring houses
for families, different tourists traveling across downtown, a variety of entertainers hosting events,
college or university students living in bachelor apartments or sharing houses, entertainers who
are working nearby, and the list goes on. In other words, the population is very versatile and it
keeps the surroundings busy.
Transportation Systems and Facilities
The location has the perks of being located in the heart of downtown and not too far away from the
Toronto Transit Commission street cars and subways. If someone prefers to drive and finds it
easier, then the Cosmopolitan Hotel has a valet parking service for 40 dollars per night. If the
person does not mind using TTC, then the area is accessible through the King and Queen subway
stations and the 501 streetcars. Furthermore, the Cosmopolitan connects to the Toronto Pearson
International Airport through the Union Pearson Express.
Events
Since the hotel is located near the entertainment district of Toronto, guests can have access to the
different music events held in the Yonge-Dundas Square, Nathan Philips Square and the Air Canada
Centre. The Air Canada Centre is known for holding different concerts and sport events. Then there
is the Metro Toronto Convention Centre that offers a great space for business people to hold their
events and also some other entertainment events are held in the premise. The Fan Expo is a great
example of an event that brings many people to the Metro Toronto Convention Centre. This year
(2015), many events related to Panamania were held in the Nathan Phillips Square, which is not so
very far from the Dundas Square. Different artists from different parts of Canada and the world
came to perform on stage. There is a never ending list of the many events that are held around the
region. In Toronto, there is always something going on, and these events alone are an opportunity
for Cosmopolitan Hotel.
Health Facilities
A list of some health facilities nearby:
CML Healthcare Inc
Adelaide Health Clinic
Appletree Medical Centre
Celeveland Clinic Canada
Medisys Preventive Health Clinic Toronto
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Educational Facilities
A list of some educational facilities nearby:
Evergreen College Downtown Toronto
University of Toronto
Ryerson University
Geroge Brown
ESL language centres
Various public schools
Local Media and Newsmakers
Canadian Media Fund
Rogers Media Inc. Broadcasting
Kiss 92. 5 Studio
Virgin Radio Studio
CP24 Studio
PRIMARY COMPETITION ANALYSIS AND S.W.O.T
Cosmopolitan Hotel’s three primary competitors are: Le Germain Hotels, SoHo Metropolitan Hotel
and Shangri-La Hotel Toronto.
I. Groupe Germain: Hotel Le Germain Maple Leaf Square & Le Germain Hotel Toronto
Groupe Germain Hospitalite is a family business. It was started in 1988 by two siblings
Christiane Germaine and Jean-Yves. They operate and own two hotels called ALT HOTELS
and Le Germain Botique hotels across Canada. Le Germain Hotels offer personalized
services and is also eco-friendly. Each Le Germain establishment has its own distinctive
signature look based on the concept and characteristic of the city where the hotel is built.
Focusing on Hotel Le Germain – Maple Leaf Square:
This property is a five-storey building with 167 hotel room located in downtown Toronto;
steps away from Air Canada Centre, and the biggest and busiest station – the Union Station.
It opened in the year 2010 making it the second Groupe Germain property in Toronto. In
terms of the atmosphere, Le Germain Maple Leaf Square showcases the elements of stone
and wood throughout the hotel. Preserving the environment is Le Germain Maple Leaf
Square’s priority. This is practiced through: having the entire building as a smoke-free
environment, every effort is made to use products that can be reused, recharged or
recycled, central room key lighting in all rooms, hotel makes purchases from local suppliers,
and many more.
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STRENGTH WEAKNESS
Physically appealing rooms: all guest rooms
are naturally lit, equipped with spa-like
bathrooms and rainfall showers, feather
pillows, goose-down duvets, with operable
windows and wood accent furniture.
State of the art amenities such as:
o Windows that can open for fresh air
o Spacious rainfall shower room
o All rooms are equipped with 40
inch flat screen TV, and iPod docks
Authenticity and personalized services
Hotel Le Germain can cater
efficiently and quickly to their
customers for personalized service
is one of the hotel’s assets.
Corporate Responsibility (Eco-friendly)
The strengths of the brand Hotel Le
Germaine over luxurious hotels are that not
everybody can afford to stay at these
luxurious hotels because of their high
prices which would be a strength factor for
Hotel Le Germaine.
Le Germain Maple Leaf Square offers with
similar type of services that you would
expect at upscale hotels at an affordable
rate
Overshadowed by luxurious hotels.
Usually people are into mainstream
and popular brands that they neglect
other brands of hotels mainly for
security because they would rather
stick to the brand that they are
familiar with than try new brands.
Le Germain Maple Leaf Square only
holds 167 rooms which can be a
deciding factor for some people who
prefer to stay at “bigger hotels”.
Limited market share due to high
competition
No swimming pool
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II. SoHo Metropolitan Hotel – Toronto’s Luxury Boutique Hotel
SoHo is managed by Metropolitan Hotels, a Canadian brand of independent luxury hotels.
Located at Wellington Street West is where you can find this really “hip” boutique hotel in
Toronto. Some might even argue that SoHo Metropolitan Hotel is a huge property to be even
considered as a boutique hotel. Although that is the case, this artsy hotel is considered as a
luxury boutique hotel in Toronto because they are committed to exceeding all expectations,
and providing comfortable yet personal services to all their guests. With 92 spacious
guestrooms and luxury suites, SoHo is fashioned for the guests’ comfort and pleasure. A
really important and chic feature about SoHo is their culinary component – a centerpiece of
their gourmet offering is their popular restaurant Luckee Restaurant and Bar owned by a
culinary superstar, Susur Lee. Actually, they just opened another restaurant in their hotel
OPPORTUNITIES THREATS
Possible support from Sport Venues like
the Air Canada Centre, and brand
recognition because of its location.
Another factor is apparently, companies
are trying to cut travel costs for their
people so a boutique hotel is going to be
an option, and they might even prefer it
over the other for a change
Due to the state-of-the-art and modern
design of Hotel Le Germain Hotels, they
will attract young people, the urban, and
the hip
Business travelers trying to cut costs
Guests who prefer hotels with not a lot
of buzz may want to stay at a more
comfortable environment that Hotel Le
Germain provides
Young and adult couples of any sexual
orientation
Environment conservative travelers
Travelers who want more personal
touch in terms of services
Brand reputation since they are social
responsible
A Canadian Brand
Brand recognized and luxurious hotels
Difficulty in identifying specific target
markets
Need to constantly change their services
and be able to keep up with the latest
trends
More affordable (Starting Price $269)
than four star and five star hotels but it
is still on the higher end compared to
other boutique hotels compared to
o Gladstone Hotel ($169)
o Drake Hotel ($200)
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property that will definitely lure their guests to go and try, the Wahlburger’s – a sport’s bar
and hamburger franchise of the Hollywood celebrity Mark Wahlberg.
STRENGTHS WEAKNESS
Canadian brand
One of Metropolitan Hotels’
independent property
Best of both worlds – a boutique hotel
with luxurious features and services
Hotel with contemporary design but
without sacrificing guests’ privacy
Attentive and personal services
Les Clefs d'Or Concierge service
available
Complimentary sedan service in their
luxury vehicle: LEXUS LS460
4000 square feet event space
Three-storey luxury penthouse suite
SoHo Membership
This membership will give
guests the opportunity to have
access to unlimited weekend
stays all for one-low fixed annual
fee
92 rooms
SoHo Membership
Members can really take
advantage of this offer, and since
it is unlimited it may cause
conflicts with reservations
(possible lack of rooms for
groups - potential loss of
business revenue due to
insufficient rooms available)
Max capacity for meetings is 20-
81people; may not be suitable for larger
corporate meetings.
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OPPORTUNITES THREATS
Popular and enticing gourmet offerings –
Wahlburgers, Senses Café and Luckee
Restaurant and Bar – all owned by
famous celebrities
Les Clefs d'Or Concierge service
Near the financial district, and the top
tourism destination spots: CN TOWER,
Ripley’s Aquarium, Toronto Eaton
Centre and Metro Toronto Convention
Centre
Variety of packages, and special rates for
guests to choose from – great marketing
mix that attract people
Ritz Carlton, Le Germain, and Hyatt
Regency Hotel are all walking distance
and at the heart of Toronto
Most hotels in Downtown Toronto are
involved in sustainability projects but on
SoHo’s website, there is actually no
information about their social
responsibility projects that they are
involved in
Negative TripAdvisor and Yelp Reviews
like for instance, three costumers were
complaining about the same thing –
front desk agents’ lack of training and
unprofessionalism
The growth of lifestyle hotels are slowly
emerging, and new competitors might
come and steal their loyal customers
III. Shangri-La Hotel Toronto
Shangri-La Hotel and Resorts is a five-star luxury hotel chain; its properties are mainly
located in premier cities like Toronto. Shangri-La is proud to have diversified employees
who cater to each and every guest’s needs. Shangri-La Toronto has 202 rooms in total, with
wide-ranging services and facilities available to each guest such as: hair and beauty salon,
24-hour room service, babysitting services, etc. Shangri-La offers large Asian-contemporary
designed rooms with a lot of space that will leave each guest in awe and relaxed.
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STRENGTHS WEAKNESS
Standards of services; Shangri-La has its
own way of catering to its guests which
make them stand out from their
competitors
Popular brand, more popular than Le
Germain, SoHo Metropolitan and
Cosmopolitan Hotel
Widely recognized in Asia; a higher
chance that tourists in Toronto from
Asia will choose Shangri-La over others
hotels
Gold Key Concierge – high end service
available to all guests
24 hours Business Centre in Shangri-La
which will attract Business Travelers
Location – located at Bloor-Yorkville;
great location because it suits the hotel;
stylish, contemporary and luxurious
2 long-running Sustainability Projects –
Shangri-La’s Care for People project and
Shangri-La’s Care for Nature project
Mainly focused on over-the-
top/luxurious travelers
Prices are high; for an Executive Room
(lowest rate), it costs $400/night to stay
at Shangri-La
o Price-conscious people might
steer away from this
Only has one ‘Accessibility’ feature on
the website which is “Facilities for the
Physically Challenged”
o Too vague
Products are undifferentiated if you
compare it to Hilton and Ritz Carlton’s
services
No refund available for booking
cancellations and/or shortened stays
Deposit required for full duration of stay
when you book online
OPPORTUNITIES THREATS
Ability to attract more markets
No language barrier because of their
diverse and world class employees
Ability to afford and keep up with trends
especially in technological aspect
Competitive industry; a lot of
competition – from luxurious hotels to
boutique hotels
Because it is a brand of luxury, other
markets might not feel comfortable to
stay at Shangri-La
Expensive labor costs
18. Page 17 of 71
MARKET POTENTIAL ANALYSIS
Market Potential Analysis Survey Questions
1. What is your marital status?
2. What is your occupation?
3. Do you have kids?
If you answered yes, then how many?
4. In which part of Toronto do you live?
5. In which part of Toronto do you work?
6. How often do you stay in hotels for business?
Once in a month, once in three months, once in 6 months, special occasions, or other
7. How often do you stay in hotels for pleasure?
Once in a month, once in three months, once in 6 months, special occasions, or other
8. During which seasons are you most likely to visit a hotel for pleasure?
9. Which hotels in Ontario are you most likely to stay in?
10. How do you make your purchase?
Online, or through phone, or travel agent
11. What do you think about the Cosmopolitan Hotel?
The survey was conducted online: https://www.surveymonkey.com/r/J57RLVG
30. Page 29 of 71
SERVICES/PRODUCT ANALYSIS/SWOT
Facilities and Services Inventory
Guest room:
Cosmopolitan’s Hotel Features:
Queen bed
High-speed WiFi, hotel-wide
Hardwood flooring
Floor-to-ceiling windows that open to fresh air
Private or Juliet balcony
With fridge, stove, dishwasher and microwave
Coffee maker and toaster
Dishes, flatware, cookware and utensils
Washing machine and dryer (based on availability for Standard Suite)
Iron and ironing board
Work desk
Mini bar, snacks and sundries
20% off at Wildfire Steakhouse and Wine Bar, located off the Lobby
Flat-screen televisions
Ergonomic furniture and Yoga mats in room
400-thread-count sheets
Sumptuous duvets and plush bathrobes
100% cotton or microfibre bathrobes and slippers
Rainfall shower-heads
Shizen Spa Toiletries
31. Page 30 of 71
Standard Suite:
1 Queen Bed; Bath with shower; Sliding door to balcony; Flat screen TV; 355 sq ft; Sleeps 2
Deluxe Suite:
Queen Bed; Non Smoking; Full Kitchen; Washer dryer; Bath with shower; Sliding door to
balcony; Two Flat Screen TV's; 480sq ft; Sleeps 2
33. Page 32 of 71
Tranquility Suite – 1 Bedroom
1 Bedroom Suite; Queen Bed; Full Kitchen; Washer dryer; Bath with shower; Sliding door to
balcony; Two Flat Screen TV's; 570sq ft; Sleeps 2
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Premium One Bedroom Suite – Designer Penthouse
Newly renovated; a large sitting room; a European Kitchen, 570 square ft. luxury bedding,
flat screen TV, washer and dryer; floor to ceiling windows that open to a private balcony
36. Page 35 of 71
STENGTHS WEAKNESS
State of the art design of the whole
penthouse – kitchen and laundry
facilities also included
Unlike the other hotels, Cosmopolitan
Hotel provides facilities to allow guests
to cook their own meals and do the
laundry whenever they want to.
Guests will feel comfortable as if they are
home
o It can also accommodate a small
group of guests for social events,
dinner and reception.
Spacious room with more privacy
In average, hotel guestrooms are small
due to the comprehensive facilities in
suites; guests will not be bothered by the
hotel employees for there is a little bit
more seclusion if one stays at the
penthouse.
Newly renovated penthouse - appealing
lights, great art decors and the bathroom
has a tranquil atmosphere based on its
design
The penthouse is unique for it has a
different kind of facility which is perfect
for guests who are looking for a different
environment and experience.
Not ideal for international leisure
travelers for short stay
o Leisure travelers tend to want to
be outside, and also dine outside
Since the majority of international
travelers want to visit the local
restaurants and bars, there is not a lot of
benefits and/or advantage features from
the comprehensive facilities available in
suite. Thus, they will not book rooms in
Cosmopolitan Hotel
Not for city visitors who only need a
comfortable and a clean guest room
Simple travelers who only need a place
to sleep do not need a guest room as
extravagant as the penthouse
OPPORTUNITIES THREATS
Great facilities for family and long stay
guests
Our suites satisfy the needs of family
travelers and long stay guests, spacious
and private guest room, cooking and
laundry facilities
Business travelers who need flexible
meeting place
Business travelers can have small
meetings in their suites instead of
renting an extra meeting room
Expensive maintenance costs
Glass windows all over the penthouse
can be damaged by weather conditions
such as strong winds, lightning, etc.
37. Page 36 of 71
FOOD AND BEVERAGE: WILDFIRE STEAKHOUSE AND WINE BAR
Wildfire Steakhouse’s dishes are prepared using only the freshest ingredients. The chefs are always
able to customize a dish for all guests. In addition, Wildfire Steakhouse offers a variety of
scrumptious dishes: from perfectly grilled steaks seasoned with house-blended spices, to a
selection of tasty appetizers, savory entrées, to tempting desserts that will please anyone’s palate.
Complement your dining experience with Wildfire Steakhouse’s expansive wine list offering a
selection to match even the most refined taste.
Hours of Operation
Monday-Friday: 11:30am-10:00pm
Saturday: 5:00pm-10:00pm
Sunday: 5:00pm-9:00pm
39. Page 38 of 71
Cosmopolitan Hotel also offers catering - catering and events menu including breakfast, theme
breaks, buffet lunches, plated lunches, reception, stationed items, buffet dinners, plated dinners and
bar service are just some of the things that the guests can enjoy.
Some of the catering menus are:
43. Page 42 of 71
STRENGTHS WEAKNESS
Specialized in steak which is one of the most
popular cuisines
Offering a great selection of wine with high quality
• No room service
• No other kind of cuisines
44. Page 43 of 71
Meeting and Banquet Facilities:
Idyllic setting for small groups up to 40 people
Each boardroom is equipped with state-of-the-art technology
Contemporary furnishings in both boardrooms
Penthouse suite is available for unique social events and corporate meetings
Convenient downtown Toronto location, minutes from the Financial District
Spacious guest suites are available for bookings at corporate rates
Chi Room:
Located on the 3rd floor of the hotel
Floor-to-ceiling windows with plenty of natural light
For up to 40 people
Boardroom 18
Classroom 24
U-Shape 12
Banquet 32
Theatre 40
Aura Room:
On the 3rd floor of the hotel
For up to 40 people
Quiet and private setting
Boardroom 14
45. Page 44 of 71
Classroom 24
U-Shape 12
Banquet 32
Theatre 30
Penthouse suite: appropriate for reception, group dinning and corporate meetings
STRENGTHS WEAKNESS
The meeting facilities offered by
Cosmopolitan Hotel is very convenient
for guests working in the financial
district
o Contemporary furnishings in
both boardroom
In some hotels in Downtown Toronto,
their meeting rooms are very traditional
requiring more updates. Today many
corporations would like to present in a
unique space with a modern working
environment
o The special event venue-
penthouse offers that
The penthouse provides a more private
and home-style event venue. It is great
for reception, group dinner and other
social event for small group
Limited meeting space
Not enough meeting rooms
Not enough details on website regarding
the meeting space amenities – potential
customers will miss some information
such as the actual selling features of the
meeting rooms
OPPORTUNITIES/TO IMPROVE
Expand existing meeting rooms
THREATS
Competitors like Le Germain Hotels
offering more meeting room spaces,
and variety of themes and packages
along with meeting room rental
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Recreational Facilities - Indoor
Full-service Shizen Spa
SpaZen’s complete and comprehensive services consist of massages, facials, wellness rituals, and
body treatments, nail care services, hair removal services, finishing touches, group packages and
retreats. Furthermore, the spa menu features signature rituals and customized enhancements that
complement each core treatment.
50. Page 49 of 71
Sites outside Cosmopolitan Hotel
Shopping at Eaton center 7min. on feet
Shopping in the Bloor Yorkville Business improvement Area 12min. by car/subway
To entertainment District 10 min. by car
Top attractions:
o Hockey Hall of Fame 2 blocks
o St. Lawrence Market 4 blocks
o CN Tower 4 blocks
o Rogers Centre (formerly SkyDome) 4 blocks
o Metro Toronto Convention Centre 8 min. by car
o ROM Museum 15 min. by car
o Art Gallery Ontario 10 min. by car
o To Harbour Front 7 min. by car
STRENGTHS WEAKNESS
Full spa service
Most of downtown hotels provide
limited spa service. Our spa service is
comprehensive and including spa menu
for our guests
Located in the heart of financial district
There is a lack of full spa services
facilities in the financial district but
Cosmopolitan Hotel offers that.
Beside spa there is no other recreation
facilities in hotel
Very small common area-reception, not
very appealing in the reception area
either
OPPORTUNITIES THREATS
For spa lovers visitors can purchase spa
package to gain benefits in terms of
service and price.
The spa attracts more wellness-minded
business travelers who need wellness
and beauty treatments to relax after a
business day
Independent full-service spa businesses
(not hotel owned) in downtown like
Elmwood Spa
Decreasing leisure time for travelers –
travelers may not have enough time to
visit the spa for they will be preoccupied
with touring the city
51. Page 50 of 71
Special Offers and Accessibility
Government Rate From $159 per night
Advanced purchase specials such as:
o Book 7 - 13 days in advance and save 10%
o Book 14 - 20 days in advance and save 15%
o Book 21+ days in advance and save 20%
Bed& Breakfast Package from $169 per night:
One night in one of our suite-style rooms
Continental breakfast
Free Wi-Fi
Spa and Stay Package: from $259 per night
One night for 2 in one of our suites
$100 Shizen Spa credit per room
50% off Valet Parking
15% off Spa Retail
Romantic Package
Overnight accommodations for two in a private suite
Chocolate covered strawberries
Bottle of specially selected wine
Continental breakfast for two
Additional romantic fixings available on request
Double Aeroplan® Miles Offer
Receive up to 1000 Aeroplan® Miles per stay
Hotel Amenity Fee
Cosmopolitan Toronto Hotel has implemented a Hotel Amenity Fee of 6% as of September 1, 2014.
This amenity fee ensures the following services are available year round for guests:
• High speed wireless internet, hotel-wide
• In room Keurig coffee and tea
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• Use of Fitness Room
• Local phone calls
• Daily newspaper
• Robes and slippers for use in guest room
Cosmopolitan Hotel is committed to ensuring that Cosmopolitan's products, services and facilities
are accessible and barrier free for persons with disabilities. We are committed to providing an
accessible environment for all, including persons with disabilities, in a manner that coheres with
the principles of dignity, independence, integration and equal opportunity.
OVERALL SWOT ANALYSIS FOR COSMOPOLITAN HOTEL
STRENGTHS WEAKNESS
Canadian brand
Hotel is designed based on Feng Shui
principles (the flow of oxygen and
energy) – it will attract a lot of sub-
cultured markets whose lifestyle
includes Feng Shui
Partnered with Aeroplan
o A great partnership to have for
there are many people who have
Aeroplan miles
Emphasis and attention on Accessibility
features – inclusivity
Web design is weak – not a lot of
information and it focuses a lot on their
Spa facility instead of focusing on their
guestrooms, amenities, services, etc.
Hotel Amenity Fee of 6% (very few
hotels charge for services)
Limited market target
Only has 55 rooms, and 40 residence
room available
OPPORTUNITIES THREATS
Gil Blutrich, founded of Cosmopolitan
Hotel has both real states and hospitality
background
Also, with his Israeli background, he can
attract investments from Middle East.
Growth of business customers based on
incredible corporate and government
rates currently being offered at
Cosmopolitan Hotel
Weather condition such as strong winds
and lightning could damage the property
especially the high glass windows in the
penthouse
Economy is low – labor costs are
expensive
Big hotel competitors such as Shangri-
La, Hilton, Marriott and more recognized
and more updated lifestyle hotels like Le
Germain, SoHo Metropolitan Hotel, etc.
53. Page 52 of 71
MARKETING POSITION AND PLAN ANALYSIS
This marketing position analysis is based on the information from the financial report of Skyline
International Development Inc. for the nine months ended September 30, 2014.
Overview
The company plans to become the leading operator and developer of hotel and resort communities
in Canada. Over the past five years, the company has focused on hotels and resorts management
and the development of residential and retail centers within hotel and resort communities.
Currently, the company’s properties include Deerhurst Resort, Horseshoe Resort, Cosmopolitan
Hotel, Pantages Hotel, Bear Valley, Hyatt Regency, King Edward, Shizen Spa, Deerhurst Village,
Horeshoe Village, Blue Mountain Village and Port McNicoll. Skyline International Development
owns and/or asset manages 1,250 hotel rooms and 13,470 m2 of retail area. It also holds land
reserves with master plans for the development of 5,500 residential units, 76,000 m2 of
commercial space, and over 400 marina slips.
Business Highlights
In December 2013, the company was recognized within the Canadian hotel industry with a
Pinnacle Award for “Regional Company of the Year” and was named one of Canada’s Best
Managed Companies by Canadian Imperial Bank of Commerce and Deloitte LLP.
On February 28, 2014, the company offers common shares in the capital of the Company on
the Tel Aviv Stock Exchange. On March 13, 2014, the company completed an initial public
offering in Israel and raised approximately $22,450(before fees) by issuing 1,759,250
Common Shares.
On May 14, 2014, Skyline has obtained a receipt from the Ontario Securities Commission,
and became a public issuer in Ontario, Canada.
During the reporting period ended in September 30, 2014, the company invested $6,456 in
renovations and upgrades of its hospitality assets, primarily at the Cleveland Hyatt Regency
Hotel where 114 guest rooms (40% of the hotel) have been fully renovated and at
Horseshoe resort.
Balance Sheet Highlights
Shareholders' equity as of September 30, 2014 was $156, compared to $133,049 as at
September 30, 2013 an increase of 17.3%. The equity was increased between the reporting
period ended in September 30, 2014 and the fiscal year ended December 31, 2013 by
16.6%.
The consolidated balance sheet assets of the Company as of September 30, 2014 totaled
$319,221 compared to $306,138 as of September 30, 2013 (4.27% decrease) and compared
to $296,382 as of December 31, 2013 (an increase of 7.7%).
Income Statement Highlights
Revenue during the nine-month period ended September 30, 2014 totaled $61,683
compared to $73,418 in the nine-month period ended September 30, 2013.
The gross profit for the nine-month period ended September 30, 2014 was $3,193 (5.18%
of revenue), compared with $3,267 (4.45% of the revenue) in the nine-month period ended
in September 30, 2013.
In the nine-month period ended September 30, 2014, revenue from the Hospitality segment
was $53,985 compared to $57,018 in the nine-month period ended September 30, 2013.
The Investment Property Segment’s revenue in the nine-month period ended September 30,
2014 was $2,363 compared to $1,516 in the nine-month period ended September 30, 2013.
54. Page 53 of 71
Cash Flow Statement Highlights
As its business development strategy, the company acquires investment properties. Those
investments result in negative cash flows from investing activities.
In the nine-month period ended in September 30, 2014 the decrease in net cash from
operations was $513 compared to an increase of $4,367 in the nine-month period ended in
September 30, 2013.
In the nine-month period ended in September 30, 2014 the decrease in net cash used in
investing activities was $7,344 versus $13,873 in the nine-month period ended in
September 30, 2013.
In the nine-month period ended in September 30, 2014 the increase in net cash used in
financing activities was $14,990 compared to $9,842 in the nine-month period ended in
September 30, 2013.
Competitive Conditions
The Company has extensive real estate holdings at their resorts in Muskoka and Oro-
Medonte, Ontario and in Port McNicoll and Blue Mountain, Ontario. Therefore, the company
is flexible in development, infrastructure improvement, marketing and sales of the
properties.
The Company’s properties compete within their geographic markets with hotels and resorts
that include locally owned independent hotels, as well as facilities owned or managed by
national and international chains, including such brands as Four Seasons, Hilton, Hyatt,
Marriott, Ritz-Carlton, Starwood and Westin. Properties also compete for convention and
conference business across the national market. The company has a competitive advantage
in the market due to:
o Enhancements it has undertaken in 2014: The company has a central reservations
system and is in the process of enhancing its online planning and booking platform.
Skyline Hospitality rebranding project: actively upgrading the quality of accommodations
and amenities available at the hotels through capital improvements.
Discussion of Operations
Revenue is generated by two broad business units: Hospitality and Development. Hospitality
represented 87.5%, 77.7% and 79.9% of the company’s total revenue for the nine month periods
ended September 30, 2014, September 30, 2013 and year ended December 31, 2013, respectively.
Profit Before Income Taxes
REVENUE:
Revenue in the nine month period ended September 30, 2014 totaled $61,683 compared with
$73,418 in the nine month period ended in September 30, 2013 (a decrease of $11,735 or 16%).
This decrease is primarily attributable to the decrease in the Development segment of $10,701, a
decrease in Hospitality segment of $3,033 and an increase of $878 in the Investment Properties
segment.
Hospitality Segment Revenue:
The change in revenue and expenses in this reporting period resulted mainly from the
discontinuance of a proportionate consolidation of King Edward Hotel results of operations in
August, 2013, which contributed $1,754 to the group’s revenue in the prior period, a reduction of
$80 in Hyatt Regency Arcade revenue following the closure and renovation of 114 rooms at the
property, an increase in revenue of $732 at the Horseshoe resort, a decrease in revenue of $521
55. Page 54 of 71
from Deerhurst resort and a decrease in revenue of $690 from Cosmopolitan Hotel in downtown
Toronto, mainly due to reduction in available room inventory from 63 rooms as of September 30,
2013 to 49 as of September 30, 2014. Gross income in the reporting period was 5.8% (compared to
a gross income of 2.9% for the parallel period last year).
Outlook:
The company's strategy is to continue focusing on investments in hospitality and real estate, mostly
in regions benefiting from economic stability. The Canadian economy provides a favorable business
environment for the company. The company continues to look for investment opportunities in
markets similar to its current portfolio (Canada and US).
Market Risks:
The company is subject to a number of risks and uncertainty, primarily risks associated
with: the development of future assets, competition, real estate markets, general and regional
economic conditions, the availability and cost of financing, and changes in interest rates due to
uncertainty in the world markets including Israel, United States and Canada.
Conclusion:
The company is doing well in general, due to its continuing investments and improvement of
properties and management. Even though the revenue of Hospitality segment decreased $3,000, the
number can be justified due to the company’s rebranding process, which includes the renovation of
Cosmopolitan Hotel.
SELECTED MARKETING STRATEGY
MARKET SEGMENTATION AND TARGET MARKET SELECTION
Target Market Identification: Cosmopolitan’s Target Market Characteristics
Categories Target Market: Business
People
Target Market:
Young Adults
(singles)
Target Market:
Couples
Ages: 35 + 20-30 25 +
Income: $55,000 $20,000 $40,000
Social Class: High Class Middle Class Middle Class
Hobbies/Interests: Finding a hotel to stay for
his/her business meetings;
Renting a Meeting Space
for meetings; Spa is used
for relaxation before/after
work.
Interested in
theatre, most likely
St. Lawrence Centre
of Arts; Those
interested in Sports
because of the
Hockey Hall of
Fame.; Those who
like to be pampered
Possibly having an
intimate moment
because of our
packages; The Spa
relaxes the
couples.
Frequent Use of Service: High Light High
56. Page 55 of 71
Questions Target Market:
Business People
Target Market: Young
Adults
Target Market:
Couples
1. Is the population of
this target market of
adequate size to
consume your service?
The population of the
target market is also
good but to those that
require small meetings.
30-40 people max. We
also have a package that
caters to business
people as well.
The population can only
cater to young adults is
the spa and overnight
stays. Cosmopolitan
isn’t looking for much
single young adults as
couples.
This target market’s
population is at
adequate size to
consume the service
because of our
packages. The
restaurant is also good
for couples that want to
go on a date.
2. Can the income of
this target market
desire this service? How
do you know?
The income from
business people is more
than welcome in the
Cosmopolitan. Whether
they want to stay for a
night or two on a
business trip or having
a small meeting, they
are more than enough
for the service.
Young adults can afford
the service of
Cosmopolitan assuming
they work full-time or
have already finished
their studies. They can
afford to stay over as
well as use SpaZen.
This target market can
definitely afford the
service of the
Cosmopolitan,
assuming they both
work full-time. They
may be able to use most
of the services
(excluding Meeting
Spaces).
3. Does this target
market desire this
service? How do you
know?
This target market may
desire this service if
they are below 40
people, other than that,
they may seek Shangri-
La for more
accommodations
The target market
desires this service if
they enjoy fine dining
and Spa, though the
competitor Le Germain
may be a threat because
they also do fine dining
and spa.
The target market may
desire this service
because it focuses on
couples mostly. They
may like our packages
along with a Spa
treatment.
4. Are your competitors
already providing this
service?
The competitors that
provide this service are
Trump International
and the Omni King
Edward Hotel. They
provide better meeting
rooms simply because
they can hold more
space and can give their
customers more
options.
Our competitors are
already providing
service for this target
market, though,
ironically, the target
market would rather
stay with us because we
are more affordable. A
standard room in Hotel
Victoria costs about
$177.30 while Omni
King Edward Hotel
costs $209 at their best
rate.
Trump International,
Omni King Edward,
Hotel Victoria are
providing services with
more options with a
higher price.
5. Do you have
resources available to
serve this market?
We have the resources
available to serve this
market such as the
SpaZen, Meeting
Rooms, and our
Business Package, and
Bed and Breakfast.
We have the resources
available for this
market such as the Spa
and the Wildfire
steakhouse.
Our hotel
accommodates the
Couples market because
of its suites catering to
them. The Spa and
steakhouse are
available for them as
well.
57. Page 56 of 71
TARGET MARKET POSITIONING
Questions Target Market:
Business People
Target Market:
Young Adults
Target Market:
Couples
1. What position does
your service have in
your prospects’
mind?
The position that is
inside a business
person’s mind is a
more relaxing and
simple. There is
nothing extraordinary
here just for the
business people to
relax.
The young adults may
think that it is a hotel
for couples (and it is)
so they may stray
away from it. They
may think that this
place is affordable and
well worth it when
they stay.
This target market will
think of this hotel as
home with simplicity
and minimalism. If
they want something
that is affordable,
cosmopolitan can
provide service.
2. What position does
your company desire
over the long term?
The position the
company wants want
the business market to
think is that we have
something that is small
and fits the meetings
as such. Cosmopolitan
isn’t much on the gala
celebrations, but it if
the company is in a
budget, they can use it.
For travelling business
people, this should be
a getaway from work
and stress due to the
massage and home-
like features in rooms.
The position that
should be in the target
market’s mind is the
affordable hotel part.
The young adults will
think of this hotel as a
simple hotel unlike its
competitors.
This is the company’s
main focus for long
term. It is similar to
the young adults
segment where the
company wants the
couples to know that
they are affordable
and they can get perks
when they stay over. It
should be more simple
style and would pop
up in their minds if
they want to go
somewhere.
3. What companies
must be outdone for
you to establish this
position?
Shangri-La in terms of
meeting rooms and
space because
business people have
Soho in terms of
modernization in its
interior design. It
appears more “hip”
Le Germaine in terms
of the Spa-like
bathroom showers,
and packages that
58. Page 57 of 71
more options of
meeting rooms to
choose from the
Cosmopolitan’s two
rooms.
and doesn’t fail in
accommodating their
guests. They are also
considered to be a
luxury boutique hotel.
The Cosmopolitan
should implement
contemporary style
differentiation in their
rooms for the
individual/unique
feeling when he or she
stays over.
caters more towards
couples and amplifies
better ambience, for a
price. The
Cosmopolitan price is
more affordable for
the budget-wise
people.
4. Does your
company have
enough resources to
occupy and hold this
position?
The company has
enough resources to
hold their position for
the business segment
in terms of business
travellers and meeting
s. We won’t have
enough resources for
big meetings however.
The company has
enough resources to
occupy this segment.
The young adults,
especially students,
will most likely just
book a room. The
working adult can use
the spa for relaxation.
The company has
more than enough
resources to occupy
this segment because
the cosmopolitan is
catered to them.
5. Do you have the
tenacity to stick with
the consistent
positioning strategy?
We will have the
tenacity to stick with
our positioning
strategy to support
business travellers.
We don’t have as much
tenacity in this
segment compared to
the other two because
very they won’t be
using much of our
facilities besides
sleeping
We have the tenacity
to stick with the
positioning strategy
for this target market
through our plans.
6. Does your
company’s creative
approach (eg.
Our company’s
approach matches our
positioning strategy to
Our company’s
approach does match
with the positioning
The company’s
approach matches
with our positioning
59. Page 58 of 71
Brochures, signs, and
logo) match your
positioning strategy?
this target market. strategy but not with
this target market.
strategy with this
target market.
Segmentation Approaches
Cosmopolitan Hotel with use Multi-Stage Segmentation
Wellness-minded business travelers in Ontario
White-collar couples for examples, doctors and lawyers that tend to follow the trends
Women who want to have a private time with the Spa, especially business women that
would like to relax after a long day at work.
Young Adults who have the income for the hotel, as well as hobbies for contemporary art in
the hotel and out (St. Lawrence Centre of Arts)
Target Market Needs/Interests/Wants
Business People Needs: A place to stay for a business trip in
Toronto.
Interests: They are interested in setting up a
small meeting, or a place to stay that relaxes
them.
Wants: They would want a place that isn’t to
“bright” in terms of the environment but gives of
the “home” feel to it. They also can relax in the
spa.
Young Adults Needs: An affordable place to stay in downtown
Toronto
Interests: They are interested in modern art and
trends within society.
Wants: They will enjoy the relaxation with the
treatment of the spa. Thy will stay in a modern
suite with contemporary style. They feel trendy
within the hotel.
Couples Needs: A hotel that can accommodate their stay
as a couple.
Interests: They are interested in activities that
involve both parties to ignite the spark. They
want to spend time together.
Wants: They will enjoy the Romantic Package
with strawberry chocolates and wine. The suite
offers a more “intimate” setting for them.
60. Page 59 of 71
MARKETING MIXES
The P’s the Cosmopolitan has:
Packaging: The hotel does well in the packaging department. They have the Romance at Cosmo
package to the couples market and Spa and Stay package for those who want to be pampered and
relax from a long day’s work. This can be good to target the business travelers if he/she wants to
relax.
Product: The Products in Cosmopolitan Hotel has products suited for the desired target market.
Our main target markets, which are business and couples, can be serviced from the hotel.
Pricing: The pricing isn’t very expensive and affordable compared to our competitors. The hotel
may not be able to provide more options, but it provides enough for the right price. $164 cost can
be also affordable for the young adults.
Promotion: They have good, continuous promotion as stated in their website; The Government
Rate of $159(with Government ID), Bed and Breakfast Package etc. The hotel needs to work on is it
is off-peak time.
The Ps the Cosmopolitan Hotel the hotel needs:
People: The front office agents do not seem to know the procedure for answering guest calls. They
say “Hi” or “okay” – in that manner, answering closed-ended questions. They need employee
training every 4 months for consistency in the workplace. Like they say, the employee is a reflection
of the company. Quarterly training is a good way to keep employers up to date.
Partnership: Although the Cosmopolitan Hotel is partnered with Wildfire Steakhouse and SpaZen,
there could be more improvements in terms of other partnerships. They can be partnered with the
St. Lawrence Centre of Arts to appeal to the younger adults that take interests in arts.
Promotion: The Cosmopolitan can put a discount on a suite by 15% during off-peak days to
increase room occupancy. Another promotion is a Tableau D’Hote in the WILDFIRE Steakhouse
with accommodation.
MARKETING STRATEGY
Alternative Strategies by Market Focus
Cosmopolitan Hotel focuses on a concentrated strategy due to the fact that they have at least two
target markets: business travelers and couples. Cosmopolitan Hotel follows a concentrated strategy
because of their main characteristics: they are an independent hotel under Skyline Hotels that
which is not a franchise organization or chain. Moreover, their focus is to serve the local market and
the way they do this is by being a local urban hotel in Downtown Toronto. The hotel’s focus is
concentrated on attracting business people, and guests with long duration vacations.
61. Page 60 of 71
Alternative Strategies for Product Life-Cycle Stages
Cosmopolitan Hotel has opened since 2005, therefore, it is in its maturity stage. We choose product-
modification strategy because the hotel has been partially renovated in Skyline Hospitality
rebranding project in 2014. In this project, the penthouse and some of the guest suites have been
renovated to elevate the overall impact and design of hotel facilities. To ensure the success of hotel
rebranding, we would like to continue and complete the rebranding project by improving the
website in terms of making it more customer-friendly, providing more accurate information and
easier access to their meeting room floor plans. They can also improve their customer service by
giving training to employee both old and every 4 months for better consistency. They should reduce
waiting calls upon asking request because the employees took too long in responding to us when
we called them. In our observations, they are taking too long in getting information maybe because
of lack of organization, as well as lack of knowledge within the front desk. There should be a
procedure and training, as stated above, so the front desk employees can get information faster
without the customer waiting, and have the ability to multi-task without sacrificing
professionalism.
Alternative Strategies by Industry Position
The Cosmopolitan Hotel is known for falling in both the follower and nicher industry position.
Followers are known for being the least challenging to the market leaders. Although, they do know
how to keep their current clients and achieve a fair share of the market, they do not take the
innovative steps for improving their market strategies. On the other hand, nichers tend to be
unique. Nichers are small businesses with small targets, and show no interest in targeting a large
amount of market segment. They do not want to please everyone. (Rao, 2014)
The Cosmopolitan Hotel Toronto is a follower because it does not offer any competitive and
innovative developments that will challenge both the leaders and challengers to come up with new
ideas. Cosmopolitan Hotel tries to follow what other hotels try to implement in the business
practice. For example, it has a technologically updated meeting space despite of being a boutique
hotel. The hotel maintains its elegance just like any other leader hotel does, but it still keeps it
unique, just like any other lifestyle hotels would do – and this aspect about them also makes them a
nicher. They have a limited target market: business travelers, couples and some leisure travelers
(broad) because Cosmopolitan is a small boutique hotel, offering an architecture that matches the
62. Page 61 of 71
expectations of any customer from any of the said markets. This combination of various elements is
what makes Cosmopolitan Hotel Toronto a follower and nicher by industry position.
POSITIONING
Elevator Statement: The Cosmopolitan Hotel is a boutique executive financial district hotel,
specialized in excellent accommodation experience for wellness-minded business and leisure
travelers with style. All of our guest rooms are exclusive, spacious condo-style suites where
contemporary meets sophistication. Our rooms are furnished in style where you can enjoy
panoramic view of Toronto’s city skyline. Our executive boardrooms’ blend cutting-edge technology
in a stylish setting can accommodate your group whether your purpose is to have a meeting or a
social gathering. With our excellent service support, your next corporate meeting, or social event
will be unforgettable. Also, at the end of a busy day, you can book a customized treatment in our
signature spa - the SpaZen. Our spa professionals will give you the most comfortable and relaxing
experience like you have never had before.
Positioning Approach:
The positioning approach that Cosmopolitan Hotel uses is the positioning on specific product
features. The Cosmopolitan Hotel provides a variety of rooms, meeting spaces, a spa, and a
restaurant. In an advertisement, the hotel is on the top choices’ list for extended stay hotels long
stay that customers are looking. Cosmopolitan Hotel Toronto promotes its business on different
pages such as Trivago. When people book online on the actual Cosmopolitan Hotel website own
website, Cosmopolitan Hotel offers special deals or privileges to their guests such as late check-
outs, early check-ins, spa discounts and depending on the length of the stay, Cosmopolitan is willing
to make meeting space and/or food/catering deals with its guests. The Cosmopolitan also offers
special packages all throughout the year such as the ‘Romance Package’ that includes overnight
accommodations for two in a private suite, chocolate covered strawberries, bottle of specially
selected wine and continental breakfast for two. They also offer a ‘Spa & Stay Package’ for those
who want to relax and enjoy their stay. Customers can also add or customize their stay according to
their needs by calling the hotel before their arrival and the hotel’s staff will be more than happy to
make all the arrangements for their guests. For guests to be satisfied with their stay is
Cosmopolitan Hotel Toronto’s number one goal.
63. Page 62 of 71
MARKETING OBJECTIVES AND GOALS
GOAL #1: Increase hotel room occupancy.
Objective #1: Increase the average business traveler room nights by 8% between January
15 to February 28, 2016.
Objective #2: Increase leisure room sales by 5% between February10 to April 30, 2016.
Objective #3: Launch a Customer Loyalty Program for both business and leisure customers
and sign up 500 members between January to June 2016.
GOAL #2: Develop new packages.
Objective #1: Develop a TIFF package valid from between Sept 1 – 15, 2016 and sell 50
packages to couples at a rate $300 pp by August 30, 2016.
Objective #2: Increase leisure room sales by 5% between February 10 to April 30, 2016.
Objective #3: Sell 30 New Years’ Eve Penthouse Party Celebration Special packages to
leisure travelers for $400 from October 15 to December 20 2016.
GOAL #3: Develop partnerships.
Objective #1: Partner with independent companies to increase room occupancy for
business travelers by 4% from May to November 2016.
Objective #2: Partner with Toronto Harbourfront Tour to increase room occupancy for
leisure travelers by 3% from June to August 2016.
Objective #3: Partner with catering companies – Daniel et Daniel for special events to
increase penthouse occupancy by 3% by September to December 2016.
64. Page 63 of 71
IMPLEMENTATION PLAN
Action Plan
*Note (had to screenshot this part because there was problem with the tables – the rest are
okay)
66. Page 65 of 71
1st Quarter, 2016
Objectives Action Plans Segme
nt
J
A
N
F
E
B
M
A
R
W
H
O
Budget Market
Mix
Develop a
TIFF
package
which will
sell 50
packages
between
Sept 1 – 15,
2016 at a
rate $300 pp
The TIFF package
includes: One 15% off
discounted movie of
choice depending on the
day, one night for two
people, a
complementary wine
(from another place)
and chocolate/cheese of
choice.
Partnership
, Package,
Promotion,
Price
Create E-direct mail for
promoting the package
Couples BJ $500.00 Promotion,
Package
Send Direct Mail to
constant contacts
Couples TT $15.00 Promotion,
People
Ads Placement – Place
Ad on sides of the buses
Couples JJ $10,000.
00
Place
Partner with
independent
companies
to increase
room
occupancy
for business
travelers by
4% from
May to
November
Meeting services
package including:
Boardroom rental, F&B
(reception, the break,
breakfast, lunch,
dinner), office supplies,
meeting equipment
Partnership
s, People,
Promotion,
Package
Create an electronic
flyer
Corpor
ation
TJ $500.00 Promotion
Send E-DM via constant
contact
Corpor
ation
TJ $15.00 Promotion,
People
Ads placement – Place
ad on hotel website
Busines
s
Travele
rs
BJ $15.00 Place,
Promotion
2nd Quarter, 2016
Objectives Action Plans Segm
ent
A
p
r
M
ay
Jun
e
WH
O
Budget Marketing
Mix
Partner with
Toronto
Harbourfront
Tour to
increase room
Toronto Harbourfront
Tour package:
including one night for
one guest, boat tour,
15% of Wildfire Steak
Programmi
ng,
Partnership
,
Promotion,
67. Page 66 of 71
occupancy for
leisure
travelers by 3%
from June to
August 2016
House Package
Create Direct Mail Loyal
Custo
mers/
Leisu
re
KK $500.00 Promotion
Send E-DM to
customers
Loyal
Custo
mers/
Leisu
re
PP $15.00 Promotion,
People
Ads Placement in
Hotel’s Website
Loyal
Custo
mers/
Leisu
re
PP $50.00 Promotion,
Place
3rd Quarter, 2016
Objectives Action Plans Segm
ent
J
u
l
A
ug
Sep WH
O
Budget Marketing
Mix
Sell 30
New
Years
Eve
Penthou
se party
Celebrati
on
Special
packages
to
leisure
travelers
for $400
from
October
15 to
Decembe
r 20
2016.
New Years Eve
Penthouse
Celebration Package
for maximum 30
guests: including one
night for 2,
champagne for toast,
buffet dinner, DJ and
cash bar. $400 for two
Promotion,
Package,
Pricing,
Programmi
ng
Create E-Direct Mail piece
for Meeting service
package
Leisu
re
Trave
lers
and
Busin
ess
Trave
lers
BJ $500.00 Promotion
Partner with
Catering
Companies
for Special
Events to
increase
Special Events Package
partnered with Daniel et
Daniel includes:
Penthouse Rental, one
night for two people,
Catering Service
Partnership
,
Promotion,
Package
68. Page 67 of 71
Penthouse
occupancy
by 3% by
September
to
December.
(provided by catering
company).
Create E-flyer Loyal
Custo
mers,
Indep
enden
t
comp
anies
in the
neigh
borho
od
KK $500.00 Promotion
E-DM via constant contact Loyal
Custo
mers,
Indep
enden
t
comp
anies
in the
neigh
borho
od
KK $20.00 Promotion ,
People
Ads Placement on Hotel’s
website and catering
company’s website
Loyal
Custo
mers,
Indep
enden
t
comp
anies
in the
neigh
borho
od
JJ $100.00 Promotion,
PLace
69. Page 68 of 71
MARKETING BUDGET
Budget for Brochure
4th Quarter, 2016
Objectives Action
Plans
Segment Oct Nov Dec WHO Budget Marketing
Mix
Sell 30 New
Year’s Eve
Penthouse
party
Celebration
Special
packages to
leisure
travelers for
$400 from
October 15 to
December 20
2016.
Send E-
DM via
constant
contact
Leisure
Travelers
and
Business
Travelers
BJ $15.00 Promotion,
Package,
Pricing,
Place
Budget for Direct Mail
71. Page 70 of 71
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