Marketing Research and Analytics Assignment

Note: Read the Charter Hotel's case study information noted below and answer the question. Each question
carries 10 marks.
Case Study

Charter Hotels is a boutique company which plans to open a new major hotel chain in the U.S. Jerry Smyth, CEO
of Charter Hotels, has asked you to prepare a comprehensive marketing research plan that will provide Charter
Hotels with the necessary information to be successful in the new venture.

Charter Hotels is committed to innovation, and believes that the key to success in the highly competitive travel
industry is to respond to changes in consumer demand. Ms. Smyth wants to understand the consumer mindset
related to ideal overnight accommodations, technology needs, and guest expectations. She is committed to
responding to consumer preferences by making Charter Hotels something unique with reimagined public spaces
and customized services.

Sal Rosfield, Director of Marketing is interested in learning what the business can do to create consumer interest
and demand for Charter Hotels in the U.S. He thinks consumers want authenticity and on-demand delivery in
their travel experiences. Rosfield also believes there is real opportunity to target travellers who are under 35. Ms.
Smyth is skeptical about this target market and thinks that the company should focus more on older business and
leisure travellers who have more disposable income. They hope the research will help identify and define a clear
target customer.

Greg Houseman, Director of Operations notes that food services are key to building a successful property. He
thinks the hotels should have localized menus and use locally-sources food. Jeffrey Sanchez, CFO thinks the
expense of localizing food offerings will not be offset by additional revenue and supports a standardized, national
menu.

Mr. Sanchez adds that consumer preference can be efficiently built through the creative use of technology to
include artificial intelligence, mobile applications and advanced analytics in order to adapt to customer behavior
in real time. Although he is not sure how consumers want technology to be used by hotels. Sal Rosfield agrees
that integration of technology is essential but notes that consumers have some privacy concerns as well.

One area that all the executives agree on is that the property will be designed to conserve energy and water - to
be a 'green' property. This is something they know that consumers value and it reduces operating costs.

The executives explain they plan to open 300 hotels under the brand name 'Charter Hotel.' The real estate for the
new hotels has already been purchased but the hotel design can be changed based on the research.

Each property will have 175 rooms, public spaces, meeting facilities, restaurant, bar, and other amenities such as
a business center and fitness room. The design of the public spaces and amenities will be based on consumer
preferences discovered in the marketing research.

The hotels will be from three to eight stories depending on specific site requirements and include on-site parking.
Parking will be free in suburban locations but there will be a charge for parking at business district and downtown
hotel properties. Valet parking service will only be offered at the business district and downtown locations.

Each hotel will have 165 standard rooms (418 square feet each), and 10 larger suites ranging from 600 to 2,100
square feet. Standard rooms will include a bedroom with a king or two queen beds, nightstands, dresser, small
desk with chair, upholstered chair and ottoman, sofa, standard closet, and bathroom with tub, shower, sink, and
counter. Rooms will be equipped with a TV, phone and other yet to be defined amenities.

Room rates will be localized by market and change based on demand to maximize revenue. The hotels will be
designed to incorporate personalization although what and how the customer experience is personalized still
needs to be defined. The hotels will be built in the next 12 months and the financial plan for the first year is as
follows:

Planned
Number of Number of Total planned Planned year 1
Metro Area average room
hotels planned rooms per hotel rooms in market occupancy rate
rate
New York $316 8 175 1,400 38.8%
Los Angeles $289 12 175 2,100 41.5%
Chicago $283 10 175 1,750 36.2%
Dallas $163 10 175 1,750 34.1%
Philadelphia $223 8 175 1,400 42.0%
Houston $127 8 175 1,400 38.5%
Washington
$305 10 175 1,750 59.1%
D.C.
Miami $175 8 175 1,400 27.0%
Miami Beach $245 3 175 525 43.1%
Atlanta $207 12 175 2,100 62.1%
Boston $406 12 175 2,100 36.4%
San Francisco $310 8 175 1,400 42.5%
Detroit $225 7 175 1,225 40.8%
Orlando $158 8 175 1,400 37.4%
San Diego $264 8 175 1,400 34.1%
Las Vegas $162 4 175 700 39.6%
Phoenix $111 10 175 1,750 32.8%
Indianapolis $162 4 175 700 43.0%
Salt Lake City $171 2 175 350 40.9%
Denver $240 8 175 1,400 46.2%
New Orleans $193 4 175 700 37.4%
St. Louis $184 4 175 700 39.1%
Seattle $371 8 175 1,400 41.8%
Minneapolis $232 8 175 1,400 49.5%
San Antonio $151 7 175 1,225 32.7%
San Jose $209 8 175 1,400 37.1%
Atlantic City $233 1 175 175 36.2%
Portland $280 5 175 875 34.9%
Honolulu $316 8 175 1,400 36.9%
Other markets $240 87 175 15,225 41.6%
Total 300 52,500 40.9%
Questions

As a consultant for the company, you are tasked with researching the hotel industry, current situation, and provide
a marketing research plan that can assist the company with their entry strategy into U.S. Specifically, they want
to know which target audience to focus on including food preferences, technology expectations, amenity offerings
and public space configurations. In your research, be sure to discuss the following, using research and evidence
from sources to support your plan:
1. Determine the research problem
2. Identify the background information
3. Select the research design
4. Evaluate the research design
5. Provide conclusions and recommendations