ROYAL PACIFIC HOTEL - ARTARMON

SYDNEY

Strategic Digital
Marketing Plan Submitted By:
Date:

Tourism or Hospitality enterprise

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Executive Summary
This report is made to make the strategy of digital marketing plan of a hotel located in the North
of Sydney. The Royal Pacific Hotel is located near the train station in North Sydney, and it is
surrounded by many hotels. There is a competitive environment, and the businesses are looking
to increase the revenue by doing marketing through digital media. This study is conducted to find
an opportunity and then make a strategy to be competitive leader in the field of digital marketing
of hotels. And then making action plan for implementation of idea. This report contains the
SWOT and PEST analysis of the Royal Pacific Hotel, and the issues are highlighted which can
become a hindrance in the way of succeeding in digital marketing. Some recommendations are
suggested on which revenue model the hotel should pursue for generating more revenue.
Contents
Introduction......................................................................................................................................0
Royal Pacific Hotel- Artarmon Sydney.......................................................................................0
Opportunity......................................................................................................................................1
Reviewing Digital marketing contribution..................................................................................1
Current digital market capabilities...............................................................................................1
Digital and Multichannel SWOT.................................................................................................1
Strengths..................................................................................................................................2
Weaknesses..............................................................................................................................2
Opportunities...........................................................................................................................2
Threats.....................................................................................................................................2
SMART Goals.............................................................................................................................2
Strategy............................................................................................................................................2
Vision...........................................................................................................................................3
Segmentation and Targeting........................................................................................................3
Value Proposition........................................................................................................................3
Budget for investment..................................................................................................................3
Action..............................................................................................................................................3
Digital Governance......................................................................................................................3
Measurement and Testing............................................................................................................4
Situation Analysis............................................................................................................................4
Internal Environment...................................................................................................................4
Research Analysis....................................................................................................................4
Capability Analysis..................................................................................................................4
External Environment..................................................................................................................5
SWOT Analysis.......................................................................................................................5
PEST Analysis (table)..............................................................................................................5
Digital Market strategy plans...........................................................................................................5
Revenue Model Strategy..............................................................................................................5
Ad based Model.......................................................................................................................6

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 Affiliate Revenue Model.........................................................................................................6
Other models............................................................................................................................6
Target Market Strategies..............................................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................0
 Strategic Digital Marketing Plan
Introduction
This study is conducted to make a strategic plan for digital marketing of tourism or hospitality
service. The chosen company for this study is Royal Pacific Hotel in Sydney. This hotel provides
hospitality services to the customers, and most of the customers are tourists who plan to visit the
place, and they stay in hotels. This study is done to analyze the digital marketing situation and
make a strategic plan for the digital marketing of Royal Pacific Hotel Sydney. The plan includes;
to look for opportunities, to make SMART GOALS, to make strategy and vision and take action,
to do situational analysis which includes the SWOT and PEST analysis and to make models for
marketing plan and revenue.

Digital marketing plays a vital role in the success of any organization. As we all know that social
media is a big platform and the companies can easily access a big population to spread awareness
about the business (Chaffey et al., 2019). They can attract a number of customers through social
media. The businesses can make an effective digital marketing plan and increase the revenue
generated by the company. Nowadays, digital marketing is a widely used tool for targeting
customers. In hospitality businesses, the more you can provide the customers with the services
and benefits of the hotel on your website and on the booking websites, the more the customers
are attracted to the service (De Pelsmacker et al., 2018). The business can do social media
marketing by making campaigns and Ads by doing affiliate marketing and SEO content
marketing (Kotler et al., 2017).

Royal Pacific Hotel- Artarmon Sydney

The Royal Pacific Hotel is located in Lave Cove North in Sydney. This hotel is near to
Artarmon, Chats wood, Lane Cove, St. Leonards’ and North Sydney. The hotel has different
classes of rooms, including the deluxe room, the executive king room and the two bedrooms
interconnecting. Royal Pacific Hotel also has the facility of Restaurant, parking site, conference
room, cafeteria, fitness room, and outdoor swimming pool.

Opportunity
First of all, for making a marketing plan, we will look for opportunities. The available
opportunities which can be availed to be a competitive leader. We will look for opportunities in
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digital marketing. The review of digital contribution by Royal Pacific Hotel’s competitors, the
capabilities of doing digital market and the SWOT analysis of doing digital marketing. The smart
goals are made in the opportunity analysis.

Reviewing Digital marketing contribution

Digital marketing is contributing a lot in the field of marketing. It is helping the companies to
capture a global market place. Digital marketing is making businesses able to reach more and
more customers. Australia is at number one position, which has spent more than 50% of its
investment in advertising in digital marketing. The Australian companies have increased their
spending on digital marketing, and thus they are more engaged in customers. As far as hotel
service is concerned, the people look for best hotels in the town, and they want best deals for
staying in hotel. In this matter, the hotels are spending more on digital marketing to remain
competitive and attract more customers. They are using SEO content on their website to make it
accessible for the customers on the search bar. Then they are working on mobile-friendly
websites because most people search for hotels on their mobiles. Uploading pictures and videos
of the hotel to show the customers where they are going to stay.

Current digital market capabilities

The current digital market capabilities are fine, the hotel has created a well-presented website,
and the website is mobile-friendly too. The features of hotel are mentioned on the website. The
pictures are uploaded to show the customers about the place where they are going to stay. Small
descriptions are also provided on the website to explain the benefits of the rooms and other
facilities. The governance of digital marketing can be improved by making a team that will work
to enhance digital marketing tools and techniques. The team will work only for digital marketing
and how to make the website content more optimized that will be easily accessible by the
customers whenever they will look for hotels in Sydney.

Digital and Multichannel SWOT

Digital marketing and Multichannel has its strengths and weaknesses. For this, we will do a
SWOT analysis to see how businesses can improve in digital marketing.

Strengths
The strengths of doing digital marketing or using a multichannel strategy include; reaching more
customers and good brand recognition.
Weaknesses
The weaknesses of doing digital marketing and using multichannel are limited resources such as
the skills and the budget.

Opportunities
Opportunities for doing digital marketing and using a multichannel include the access of the
business to the global marketplace and filling the gap in the market.

Threats
The threat of new competitors in the market or any new regulation by the state which has an
impact on digital marketing.

The key issue is related to the budget. We should manage the budget of digital marketing and
investing a handsome amount on digital marketing for receiving benefits hereafter. As digital
marketing requires a big budget, the hotel should make a strategy on how they are going to invest
in this and then enjoy the benefits.

SMART Goals
The SMART is the acronym, and it stands for Specific, Measurable, Achievable, Realistic and
Timely. The goals should be set according to the SMART objectives. The hotel needs to invest
more in digital marketing, and for this plan the hotel needs to set goals and make objectives to
achieve those goals. The management should set key performance indicators to see the
performance of the team who is managing the digital marketing. The digital marketing plan will
help the hotel to capture more customers and be a competitive leader in the market.

Strategy
This part includes the strategy to be made for the digital marketing of Royal Pacific Hotel. The
strategy of digital marketing plan will focus on segmentation and targeting of the customers, to
make value proposition, and setting up a budget (Kingsnorth, 2019).

Vision
The vision is to make an effective digital marketing plan by using digital media efficiently and
effectively which will attract more customers and increase the value of the hotel.
Segmentation and Targeting
The STP segmentation targeting and positioning is an important function of marketing, and for
making a digital marketing plan we will do segmentation and targeting of the customers who use
digital media. We can use demographic segmentation. It will include all the people who have age
between 25 years to 60 years because most people of this age go on trips, holidays and business
trips. We can target the people who earn more because they can easily afford to go on trips and
stay at hotels. We can also use behavioral segmentation to see the buying pattern of customers
and how often they stay at hotels. After segmentation we can target them on social media.

Value Proposition
We can introduce a new service such as designing a mobile app which can manage their bill
payments and bookings. The customers can get discounts by using the app. And the customers
who visit the hotel on and off can easily manage their trips by simply using the app. This will
improve the value delivered to the customers before this feature. And uploading some useful
content on the website for the people. The content should be related to tourism and hospitality.

Budget for investment

The budget cost varies because it depends on how many social media platforms we are using for
the digital marketing of the hotel. The estimated budget is around $4000 to $6000, depending
upon the platforms we will use for digital marketing. More than 50% of the marketing budget is
used in digital marketing.

Action
The action includes the governance of the people, process, and tools to improve the efficiency of
the people and process for doing digital marketing.

Digital Governance
Digital governance is needed to assign roles and duties to the people who will be accountable for
the performance of digital marketing of the business (Marland et al., 2017). In this case, the
Royal Pacific Hotel needs to make digital governance framework to assign roles and
responsibilities to the team of digital marketing and making them accountable for all the
performance of digital marketing.
Measurement and Testing
The key performance indicators will be used to see the performance of the team (Parmenter,
2015). And the hotel will launch an application which will help the customers to book the rooms
and pay the bills easily.

Situation Analysis
The situation analysis is done to see the current situation of the market and what trends are
adopted by the competitors in the market.

Internal Environment
The internal environment of the hotel includes the employees, management, and the culture of
the business (Bhandari, 2017). For analyzing the internal environment, we will do a research
analysis and capability analysis.

Research Analysis
The analysis is based on research, and the research is done by looking at the customer reviews
about the hotel. As the hotel is registered at different booking websites, and we can book a room
by simply using these booking websites. The people who stayed at Royal Pacific Hotel left
reviews on booking websites to help by giving information about the environment of hotel, how
their trip became good or worst by staying at the hotel. These reviews include both positive and
negative comments. Some people loved to stay at the hotel while others said that the pictures of
rooms on the website is different from the actual room. But overall, the ratings of the internal
environment of the hotel is good.

Capability Analysis
The hotel management can be more creative and design more attractive strategies for the people.
And to make a reliable and constructive plan for the digital marketing of the hotel. The website
of the hotel is quite good, and they can improve more by investing in digital media
advertisements and campaigns.

External Environment
The external environment includes the market where the business is operating its functions and
the competitors of the hotel (Hueske et al., 2015). For analyzing the external environment, we
will do SWOT and PEST analysis.
SWOT Analysis
Strengths: Weaknesses
 Good Location  Website lack some important points
 Website is attractive  Less competitive
Opportunities Threats
 To fill the gap in digital marketing  Many competitors and rivals near the
 To be a market leader hotel
 New Competitor

PEST Analysis (table)

Political Politically good conditions and support of
Government
Economical Strong economic growth rate of Australia
Social An environment-friendly society
Technological The government encourages the business
which develops in technology

Digital Market strategy plans

The digital market strategy is made to maximize the profit of the business by introducing
technology-based innovations and working on Research and Development for improvement in
technology (Chaffey & Smith, 2017). In this study, the digital market strategy plans include the
strategies of targeting the market and the revenue model strategies of the plan.

Revenue Model Strategy

The revenue model strategy includes the framework designed to see the sources from where the
business can generate revenues and giving these sources a value (Enders et al., 2019). The Royal
Pacific Hotel can get revenues by designing an advertisement campaign on social media, and the
people who will click the Ad can generate revenue for the business. The hotel can make the
digital media a source of earning by uploading the content related to hotels and tourism and
include the data relevant to the business which will help them to attract more customers. The
businesses should include data that is read by number of people, and they search for the
keywords used in the content of website of the business. The current revenue model strategy of
Royal Pacific Hotel is from hotel booking websites and the traditional ways of earning, but in
future they can earn through digital media by uploading authentic and creative content.
Ad based Model
The Ad based model is the revenue model in which the businesses can earn by advertisements of
the services and the number of subscriptions of the people or by both advertisements and
subscriptions. The goal of the Ad based model is to reach maximum number of customers. Royal
Pacific can design an advertisement for digital media to attract more customers.

Affiliate Revenue Model

The affiliate revenue model is the model in which the first website contains the advertisement of
the second website or business for getting more clicks on the second website, and the second
website pays for the clicks to first website. And this affiliated marketing is now widely used in
E-commerce. The Royal Pacific Hotel can pay the other websites related to tourism and
hospitality to provide them clicks on their website.

Other models
The other revenue models include markup, licensing, commission based, subscription based
earnings (Hakkarainen et al., 2019). The Royal Pacific Hotel can use subscription based model
for generating revenue. It can simply make videos for their YouTube channel in which they can
upload videos related to tourism and hospitality, and the subscribers will increase their earning
by just clicking on the subscription button.

Target Market Strategies

The target market strategies include different types of targeting such as targeting a specific group
of people, targeting based on undifferentiated marketing in which the customer has no difference
in their characteristics. The Royal Pacific Hotel can use multi-segment targeting and focus
targeting to target number of customers.

Conclusion
This study is about the digital marketing plan of the Royal Pacific Hotel, located in Sydney. This
study includes the ways of how the business can do digital marketing and how it can do
situational analysis of the business to look for the opportunities that can enhance their functions
and bring innovations in the digital marketing. The study conducted a SWOT and PEST analysis
of the hotel to see whether they can achieve their goals to be market leaders in hotel industry in
North Sydney. The analysis showed that the hotel can become the market leader by bringing
some innovations and helping the customers to find useful content on the website. This will
become the corporate social responsibility of the business as well by providing them with useful
content on company’s website.
References
Chaffey, D., & Ellis-Chadwick, F. (2019). Digital marketing. Pearson UK.

De Pelsmacker, P., Van Tilburg, S., & Holthof, C. (2018). Digital marketing strategies, online
reviews, and hotel performance. International Journal of Hospitality Management, 72, 47-55.

Kotler, P., Bowen, J. T., Makens, J., & Baloglu, S. (2017). Marketing for hospitality and tourism.

Marland, A., Lewis, J. P., & Flanagan, T. (2017). Governance in the age of digital media and
branding. Governance, 30(1), 125-141.

Kingsnorth, S. (2019). Digital marketing strategy: an integrated approach to online marketing.

Kogan Page Publishers.

Parmenter, D. (2015). Key performance indicators: developing, implementing, and using

winning KPIs. John Wiley & Sons.

Bhandari, M., & Bhandari, S. (2017). Impact of Business Environment on the Performance of
Nepalese Business Organization. Journal of Interdisciplinary Studies, 6, 54.

Hueske, A. K., Endrikat, J., & Guenther, E. (2015). External environment, the innovating
organization, and its individuals: A multilevel model for identifying innovation barriers
accounting for social uncertainties. Journal of Engineering and Technology Management, 35,
45-70.

Chaffey, D., & Smith, P. R. (2017). Digital marketing excellence: planning, optimizing, and
integrating online marketing. Taylor & Francis.

Enders, T., Schüritz, R., & Frey, W. (2019). Capturing Value from Data: Exploring Factors
Influencing Revenue Model Design for Data-Driven Services.

Hakkarainen, E. M. (2019). Online Revenue Models of Newspapers in the United States and
Finland.