Chateau louise lake case study

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  • Publié le : 4 janvier 2011
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Table of contents

Introduction 1
A. Situation Analysis 2
1. Market analysis: 2
2. PEST Analysis 3
2.1 Political factors 3
2.2 Economic factors 3
2.3 Social factors 4
2.4 Technological factors 4
3. SWOT: Internal analysis. 4
3.1 Strengths: 4
3.3 Opportunities: 5
3.4 Threats: 5
4 .Competitive analysis 6
5. Segmentation: 7
B. Strategic Marketing 9
1. Problemstatement 9
2. Alternatives: 9
2.2 Alternative 1: 9
2.3 Alternative 2: 10
2.3 Alternative 3: 10
2.4 Alternative 4: 11
3. Recommendations 12
C. Operational Marketing 13
1. Mission statement 13
2. Vision statement 13
4. Long term strategy 18
4.1 Targeting: 18
4.2 Positioning: 18
4.3 The 6’s P 18
4.3.1 Product: 18
4.3.2 Place: 19
4.3.3 Promotion: 20
4.3.4 People 21
4.3.5Physical environment 21
4.3.6 Process 21
5.1 Market potential : 21
5.2 Sales potential 22
5.3 Sales forecast 23
Conclusion 25
Annexes 26


We are in Canada in July 1998, David Bayne, the general manager of the Fairmont Chateau Lake Louise, realizes that his organization is in situation of decline. Although the hotel is worldwide known he iscurrently facing external challenges and a new demand which does not fit anymore with its initial strategy, located in the world’s most stunning natural settings the company keeps on losing market shares. The company aims at finding solutions and establishing a new strategy in order to keep on being competitive on the market.
The hotel faces a problem of seasonality with a huge peak during summerand a smaller one in winter. The 2 main kinds of customers are represented by individual travelers and group meetings of business. Actually, the hotel is not really corresponding to the basic elements of luxury (smaller room and lack of renovation). In addition to that, the competitors come to be more and more aggressive due to a high price competition and very modern infrastructures.
To gothrough all this limitation the hotel have to take many decisions and that so, to invest. Furthermore, the period is discovering the importance of environmental policies and the lobbies and non-governmental organizations are imposing restrictions. According to that, hotel development has to respect all the restrictions to limit the impact of human being on United Nations World Heritage Site.
Whichdecisions should be implanted in order to reach long- term profitability while taking in consideration the political and social forces?
First of all, we will study the current situation of the market in order to determine which strategy will be the most relevant to the situation.

A. Situation Analysis
1. Market analysis:

First of all, the service industry takes a major part in theCanadian global economy. Tourism is a part of this service industry. In addition to it, tourism is an important driver of the economic activity in all regions of Canada, it contributes as much to Canada's wealth as agriculture and fisheries. The tourism sector has never been in decline and still growth every year, it is in the maturity size of cycle life because it is really developed and diversifiesand it is constantly innovating and adapting to the clients on the market.

The demand on the market can be influenced by many factors, but the main factor is that if people have holiday and money to spend in their holidays, the market industry will grow. The purchasing power of customers is the main factor to develop and increase the demand in the tourism industry.

The tourism industry canbe segmented according to several factors but the most relevant are:
* The season: The tourism industry works really well during periods of holidays, it corresponds to summer (July and August) and the skiing season (December and February).
* The kind of travel: Tourists elects different type of travels to spend their holidays.
* The nationality: The nationality of the tourists is...
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