Amber Inn & Suites, Inc. Final Report

Amber Inn & Suites, Inc.Final Report Chief 9862528 賈儒慶 9862512 曹思漢 9862530 黃敬琮 9562522 林鴻儒 9862511 鄭鈞瑋 9862536 姚文宜

Executive Summary • Define the problem • Prepare one presentation on April 11 that describes • Initiative expenditures and outcomes for each of the past 2 years. • Plan initiatives and budgetary need for fiscal 2005 & 2006. • Target • The CEO Mr. James announced that his goal for the company was to achieve profitability with two year. • Answer • Amber Inn should be more focused on business traveler.

Reasons • According to Amber’s Inn executives, the company is positioned as a limited service hotel between economy and full-service hotels. (Page 310) • Suitable for business travelers. • According to Exhibit 6, the major customers of Amber Inn are business travelers.

Reasons • Average payment per room night • Business Traveler: $96 / per room night (higher) • Leisure Traveler: $89 / per room night (Page 308-309) • Average yearly income from a business man: $81,100 (higher) Average yearly income from a household man: $72,600(Page 308-309) • According to Exhibit 6, less account receivable problems with business traveler.

Reasons • According to Exhibit 6,

Activity 1 • Marketing Budget for next year: Should be more focused on business traveler Media • Magazine  Maintain the budget of magazines related to business. Maintain 1/2 budget of 2005. • Newspaper  Maintain the same budget as 2005 shown in Exhibit 7. • Outdoor  Cut the budget. • Spot TV  Cut the budget. • Cable Networks  Cut the budget. • Radio  Cut the budget. • Internet  Maintain the same budget as 2005 shown in Exhibit 7. • We can save about $5,500,000 based on Exhibit 7.

Activity 2 • Promote the frontier strategy which focuses on the business segment. Business Traveler Frontier Area Existing Area Vacation Traveler

Estimation • With activities 1 and 2, the lodging revenue of Amber Inn can be increased by 7% based on 2005 of Exhibit 4, • Lodging revenue: $422,625 x (100% + 7%) = $452,208 • Total Expense: $438,317 x (100% + 3%) = $451,466 (The Expense includes the AD cost down in activity 1 and frontier marketing expense) • Net Income: $452,208 - $451,466 = $742

Teaching Note • Setting Reasonable Communication Objectives • Developing An Integrated Marketing Communication Mix • The information requirements of potential buyers • The nature of the offering • The nature of the target markets • The capacity of the organization • Marketing Web Sites and Integrated Marketing Communications • Purpose of Marketing Web Sites • Leveraging Advertising and Personal Selling with Promotional Web Sites • Communication Mix Budgeting • Communication Budget Allocation • Advertising Budget Allocation • Sales-Force Budget Allocation • Evaluation and Control of the Communication Process

Teaching Note • The Five M’s of Advertising • Mission • What are the objectives? • Money • How much can be spent? • Message • Media • What medias should be used? • Measurement • Advertising Objectives • Informative • Persuasive • Reminder • Reinforcement

Amber Inn & Suites, Inc. Final Report