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. Problem statement 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 4.3.5 Physical environment 21 4.3.6 Process 21 5. SALES FORECASTING 21 5.1 Market potential : 21 5.2 Sales potential 22 5.3 Sales forecast 23 Conclusion 25 Annexes 26

Introduction

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 is currently 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 summer and 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.
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