The Eastern & Oriental Hotel is a tranquil haven in the heart of Penang. This is a hotel with old colonial charm and the finest traditions of comfort and service. Right at its door step, it is an amazing heritage of art and architecture, festivals and food. The Eastern & Oriental Hotel is just a few minute walk away from a variety of shops, restaurants, cafes, bars and clubs. Besides that, each magnificent suite is extravagantly spacious and thoughtfully furnished with modern day amenities and access to the wireless world. The Eastern & Oriental’s modern facilities within its enchanting ambience enable guests to pursue their business interests as well as to network, to socialise or simply to relax. Heritage Eastern & Oriental Hotel (listed as one of the must-visit destinations in the New York Times bestseller 1,000 Places to Visit before Your Die by Patricia Schultz)
2.0 The market segments being targeted by the firm
Eastern & Oriental Hotel was established in 1885 by the Armenian Sarkies Brothers in Penang. It is a colonial-style hotel. The market segments that being targeted by E&O Hotel are the foreign people, old and rich people, couples and families.
The first market segments being targeted are the foreign people. They are mainly from China, South Korea, Hong Kong, Middle East, Europe and America. Almost 70 percent of guest’s arrivals derive from overseas markets such as the UK, Japan, Australia, Singapore and USA, with the remaining coming from within Malaysia. Some young adults from foreign countries will also stayed in E&O Hotel because they can afford it and expect to get an excellent service. They feel more convenience staying at E&O Hotel because there are clubs or bars around the hotel.
The second market segments being targeted are the senior citizen which is age 55 above and rich people. E&O Hotel is a luxury hotel and it is already 126 year in Penang. The old people like to come to E&O Hotel because they come to travel, enjoy their life with the beautiful scenery and willing to spend their money after they had retired. Therefore, E&O Hotel located at the Heritage of Penang, there are many Pre-war homes and historic site such as Fort Cornwallis. This can attract the old people who like about history come to travel and stay at E&O Hotel.
The third market segments being targeted are the couples. E&O Hotel will offer the package of wedding which is the hotel will offer a room to the couples who having their wedding function at E&O Hotel Ballroom. Almost all the hotel will offer this kind package to the couples who are having their wedding function at their hotel. Therefore, the couples choose to have their wedding function at E&O Hotel is because E&O Hotel is a luxury and famous hotel in Penang. Besides that, E&O Hotel is near to the sea and the couples can have their wedding photo shooting at the seaside.
The fourth market segments being targeted are the families. A family member mostly will include 2-3 kids. They will choose to stay at E&O Hotel whenever they travel to Penang. When there is an activity organized near to E&O Hotel, there will be more families come to stay at E&O Hotel, the activity such as, Bon Odori, annual jazz festival , natural park and so on . So the kids will not get bored because in the hotel, there is a swimming pool for the kids and the adults to swim. Therefore, the parents and the kids will definitely enjoy staying in E&O Hotel.
3.0 The various strategies used by the firm in marketing-mix
In hotel, their main products are rooms followed by food & beverage and then facilities.
All room and suites are magnificently furnished and spacious. Each guest who stays in the E&O will receives the guarantee that their personal needs and comfort are a constant focus from the moment they arrive. There are 7 types of rooms:
Suite size: 58 sqm.
Suite size: 79 sqm.
Suite size: 58 sqm.
Suite size: 87sqm.
Suite size: 135 sqm.
Suite size: 241 sqm.
Eastern & Oriental Suite
Suite size: 522 sqm.
A tantalising medley of flavours and aromas await guests in the hotel’s restaurants, cafes and bars, each with its own unique aura. To have a midnight snack, the Eastern & Oriental provides 24-hour Room Service.
Operating hours are from 6.30 am – 11.00 pm (Daily)
Operating hours are from 2.30 pm – 10.30 pm (Open Daily)
Operating hours are from 10.00 am – 10.00 pm (Daily)
Operating hours are from 11.00 am to 11.00 pm.
Operating hours are from 6.30 am – 11.00 pm (Daily)
Operating hours are from 11.00am to 7.00pm (Daily)
Babysitting or child care
Swimming pool ( outdoor )
Prices for rooms:
Types of room
Eastern & Oriental Suite
** The prices are subjected to change according to the peak season or off season.
Eastern & Oriental Hotel is situated in Georgetown at the intersection of Farquhar Street and Penang Road. It is located at Heritage area. The Eastern & Oriental Hotel is just 20 kilometres away from the Penang International Airport and within walking distance to the food havens, shopping complexes and entertainment outlets of downtown Georgetown. Guests can also take a walk to Fort Cornwallis, the City Hall and the Penang State Museum. The guests will also loves to browse the shops, bazaars and restaurants for great bargains and delicious treats, while discovering temples, mosques and churches in quiet little corners. Eastern & Oriental hotel is the only one in Penang. It does not have any branches. This makes the hotel special.
There are few ways to promote the E&O hotel. The first way is promote through filming. Filming with celebrities is a good way to promote the hotel. For example, on the August 2011, Asian Food Channel (AFC) came to Eastern & Oriental Hotel to film. This will actually helps to promote it out to those who are watching AFC channel. A Chinese local actor ” Ah Niu ” had came to film at the hotel too. This will actually let worldwide people know about this hotel.
The second ways to promote the hotel is through word of mouth. The hotel can also depend on the guests to help to promote the hotel’s name. For examples, during the wedding’s night, if the services are extremely good while everything went smoothly and the banquet hall is all nicely decorated, all those who attended the dinner, will goes out to promote to his / her friends or relatives. This will actually helps to spread the good news around. This is also a way to promote the hotel.
The third ways to promote the hotel is by advertising through social network. The hotel can create a page at the social network to let the worldwide people knows about the hotel and also the upcoming events of the hotel. Any promotions of the hotel can also include there. People will get update news through social networks. Examples of social networks are Facebook.
4.0 The different environment that have an impact on the firm’s operation
The market environment consists of the various external factors that direct or indirect affect the marketing management. The marketing environment is made up of microenvironment and marcoenvironment.
Microenvironment is the elements close to the organization that ability to affect a company’s planning and performance. The microenvironment consists of five components which are company, suppliers, customers, competitors, and intermediaries.
The first component is the company. E&O hotel has several departments and management levels that can affect the marketing management’s decision making. The top management of E&O hotel is the one who responsible to set the company mission, vision, objectives, policies and broad strategies. Besides that, all departments must work closely with one another. Departments such as purchasing, accounting, research and development finance and etc.
The second component is the suppliers of the hotel. Suppliers provide the resources needed by the hotel to produce goods and services. For example, E&O hotel rely on the suppliers who provide the ingredients or raw materials to the kitchen every day. Fresh ingredients needed every day to produce quality foods. Increase in ingredients or raw material prices will affect on the marketing mix strategy of the hotel. The close relationship with the supplier is one way of ensuring competitive and quality products for the hotel.
The third component is the customers of the hotel. Western people and the age group above 50 years old are the guests of the hotel. Although the room rates of the hotel are slightly higher compare to other hotels but these two groups of people willing to pay and stay at this hotel. One of the main reason they visited E&O hotel is because of E&O hotel is the only five star heritage hotel at the heart of the city. Besides that, the banquet of E&O hotel is fully book during weekend and peak seasons. E&O hotel also provide interesting wedding package to the customers. A lot of people like to have their wedding ceremony, lunch and dinner at E&O hotel.
The fourth component is the competitors. The competitors of E&O hotel are other heritage hotels in Penang and the hotels nearby. Other heritage hotel in Penang such as Rasa Sayang Resort and Spa is the competitor of E&O hotel. Rasa Sayang Resort and Spa is a five star heritage hotel allocated at Batu Ferrighi. Their room rate and E&O room rate are similar but their target market slight different. E&O hotel target is to attract tourists that visited the heritage city of Penang and Rasa Sayang Resort and Spa is to attract tourists that going for relaxation and enjoying water sports. The hotel nearby E&O hotel such as Bayview hotel. Bayview hotel is opposite E&O hotel. The customers of Bayview hotel are the tourist travel through travel agencies and businessman.
The fifth component is the intermediaries. Marketing intermediaries are firms or agencies that help the hotel to promote. There is several government websites help to promote the heritage side of Penang. Some German and Chinese movie and television program had their shooting at the hotel. The German movie entitled A Love and Death on Java and the television program entitled Discovery Travel and Living shooting at E&O hotel in year 2010. Positive media attention on the hotel makes the hotel to promote well. Audience can watch the programmers through TV. It is more direct to communicate to the audience. So this is a very powerful and positive impact.
Marcoenvironment is the elements which can affect how a company is operate but which are beyond its control. The marcoenvironment consists of four components such as political and legal environment, economic, social and technology.
The first component is the political and legal environment. The changes in the political and legal environments at both the domestic and international levels can affect the hotel. To many hotels, domestic political considerations are likely to be of prime concern. However, hotel involved in international operations are faced with the additional dimension of international political developments. For example, the changes political in western countries will affect the business of the hotel because the hotel business depends on the western tourists. Other than that, the political of our country will also affect the business of the hotel. The tourists from other countries will less visit our country
The second component is the economic. Political and economic forces are often strongly related. Economic factors are of concern to marketing hotel because they are likely to influence, among other things, demand, costs, prices and profits. The changes in world economic forces are highly significant to hotel, particularly those engaged in international marketing. However, an understanding of economic changes and forces in the domestic economy is also importance as such forces have the most immediate impact. The changes in economy cause the customers to spend less. Besides that, unemployment rate become higher because the economy become worst. These will cause the decreases the demand of many luxury goods and services.
The third component is the social. Customers have differences in attitudes, beliefs, motivation, morality, superstition, and perception and other characteristics when demand of goods and services. The type of goods and services demanded by consumers is a function of their social conditioning and their consequent attitudes and beliefs. The people who willing to spend more and enjoying their holiday such as people who had retired will choose to stay at E&O hotel. Mostly the guests will not visit the hotel alone. They will bring their spouses along with them. They will enjoy while staying in the hotel and willing to spend more for their lunch or dinner in the restaurant.
The fourth component is the technology. The changing in technology may affect the demand for a hotel goods and services. Technological changes may create new opportunities for the hotel. Technological innovation continues to move at an increasingly rapid rate. The changing in technology will help the hotel to promote on the website. Website such as the hotel website, Penang Tourism government website, Penang heritage website and etc. Besides that, the guests of the hotel will give their feedbacks of the hotel through their personal blog, feedback, forum and etc. Through these, a lot of people will understand more about of the hotel. If there had negative comments about the hotel, this will cause the hotel had bad images.
5.0 The current trends that the organization could face
5.1 Current trends
Trends means the general direction in which something tends to move while current means the latest belonging to the present time. Therefore, current trends means is the latest trends in the hotel itself.
The current trend of the Eastern & Oriental Hotel (E&O) is the Heritage sites and is located at the center of the city. E&O hotel has been listed as a UNESCO World Heritage Site in 2008, George Town, was cited as “A remarkable example of historic colonial towns on the Straits of Malacca that demonstrate a succession of historical and cultural influences arising from their former function as trading ports linking East and West”. The E&O hotel is a colonial hotel design that mix old-world charm with modern extravagances.
Besides that having heritage sides, the different type of food also is the current trends for the E&O .hotel. Penang famous of many different type of hawker food .Instead of room , E&O hotel can more focus on their restaurant ,promote more of their restaurant to the outsider , so that can improve the sales of the hotel
Opportunities mean external chances to make greater sales or profits in the environment.
Eastern & Oriental Hotel is a colonial design that mixes old-world charm with modern extravagances so many people would like to have their wedding photo shooting session at the hotel due to its unique surroundings. This is a good chance to promote the environment of the hotel to the public. There will also come with a package that guest who is having wedding in their banquet; the package will come with the honeymoon suite and the facilities.
Besides that, some food channel or movie company also do filming at Eastern & Oriental Hotel. Example for the food channel is Asian Food Channel (AFC), for the movie is German movie entitled “A Love and Death on Java” at the Eastern and Oriental Hotel. For the local Chinese movie that directed by local artist ‘Ah Niu’. For the shooting photo or movie, also will make the greater sales or profits and also will increase the reputation of the hotel and also will attract others people to come.
E&O hotel also can promote the restaurant in their hotel , because the current trends is the food in Penang . E&O hotel can do more promotion for their restaurant such as: 1885 Restaurant, The selection of inventive fusion dishes from E&O hotel accomplished chefs, accompanied by a superb selection of wines, marks 1885 as the perfect choice for an enjoyable dining experience, can promote to outsider instead of just promote the hotel room, maybe they will come and dining in.
The E&O brand is now synonymous with premier developments, and we have been complimented that E&O adds the distinct style’ ingredient into lifestyle’. Again, we came to secure this reputation by no accident it was a conscious strategy that we worked hard towards.
E&O hotel could also expand internationally, either together or through strategic alliances with other global property companies to increase their brand value and presence. E&O hotel can also develop new growth engines from existing and new markets.
Beyond property development, E&O hotel could also explore the possibility of leveraging on each other’s hospitality capabilities.
Strengths mean characteristics of the business or team that give it an advantage over others in the industry.
Eastern & Oriental Hotel is build in a good location because it is at the center of the city. Eastern & Oriental Hotel is near to the seaside so that guests can enjoy the sea view from the hotel. The attraction that near to Eastern & Oriental Hotel are such as: Fort Cornwallis, The City Hall and also the Penang State Museum.
There are also clubs, pubs, restaurants and cafés all around the place which is nearby to the hotel. Eastern & Oriental Hotel is a luxury and old European style hotel, so the hotel provides good quality service, nicely designed and good quality of food and beverage. Penang current trends is different type of food, so E&O hotel will be a place that the tourist not only can enjoy the Penang seaview and the heritage building of E&O hotel, around E&O hotel still can enjoy the culture of Penang .
E&O has successfully built a strong portfolio and visible premier niche brand in the property development, hospitality and lifestyle segment in Malaysia. Having established their self locally, E&O hotel intend to push the boundary further by making E&O an inspirational brand that is recognised locally, regionally and eventually internationally.
E&O hotel is a heritage hotel that has 126 years old , over its century-and-a-quarter history. Attended to by the E&O’s legendary butler service, each suite offers the perfect invitation to step back into the refined elegance and colonial grandeur of a golden age. So that the guest can enjoy to stay at the old colonial charm building.
Weaknesses mean the characteristics that place the firm at a disadvantage relative to others.
The common weakness is the parking lot for the Eastern & Oriental Hotel is too expensive. Normal day for the parking fees is from morning until evening is RM 5, for night time is RM 10. For peak season will increase until RM 20, sometime during public holidays, the parking fees will increase to RM 40. This is too high expenses for a driver just to park their car at the parking lot. But sometimes customers drive along the way to the heart of the city and cannot find parking, so they will choose to park at the parking lot although it is too expensive.
Eastern & Oriental Hotel is a luxury hotel, so the room rate or the food and beverage will be more expensive compared to others place and so because of this, Eastern & Oriental Hotel is not attracted by the budget traveller, because it is too expensive for them just to stay one night.
Threats mean the external elements in the environment that could cause trouble for the business.
E&O hotel is a five stars hotel and Penang has a lot of different categories of 5 stars hotel such as Rasa Sayang Beach and Spa Resort, G- hotel, Equatorial and so on.So they become the competitor with E&O hotel . They have different style of the hotel and concept of hotel such as :
a) Rasa Sayang Beach and Spa resort
Is a expansive luxury retreat in traditional Malaysian style, nestled along Penang’s popular Batu Feringgi Beach. This iconic beach resort offers its guests a luxurious accommodation option replete with an array of amenities whilst situated amidst impressive and majestic scenery. Attract customer that more like to challenge or have fun in the water sport activity, such as motorboat, banana boat, parachute and many more. Besides that, Rasa sayang beach and spa resort also provide spa for guest .
b) G- hotel
Is a bold, beautiful creation in homage to modern, G-hotel fuses cool modernity with stylish comfort. Is located at the Penang most boulevard place. Shopping mall, Penang local hawker centre, is also a advantages that near to the seaside. The room design with concept of modern, space and comfort style . It is a business categories of hotel, so more focus on business guest and also family group .
c) Equatorial Hotel
The 5-star luxury hotel embraces a splendour of contemporary design. It houses 662 guestrooms and suites, each classily furnished and facilitated with state of the art in-room amenities. The only hotel on the island which has a 9-hole international golf course, it is the top choice for executive retreats and incentive group gatherings. It houses two Grand Ballrooms which have been intelligently built with no obstruction of columns in between – reputed to be the largest on the island that can house up to 2,000 people.
There are so many different categories of hotel, so the guest will
Depend on personal like to choose which hotel. So things that the guest wants or needs that E&O hotel can’t provide, they will choose the others hotel . That is the Threats for the hotels.
As a conclusion, marketing is very important to any hotels or businesses. Every hotel or business also need strategic and promotion to keep their sales in the safe level, so that the hotel or business won’t loss of money for the others utilities, staff salary and so on. Know well about the SWOP analysis (Strength, weakness, opportunities, threats) of the hotel or business is important, because it can clearly know that what the hotel or business lack out of that need to improve more or things that need to maintain and be more better .Know well about which market segment of people that visit most to the hotel , is to maintain the group of people that visit and so try to attract new group of people to visit the hotel or business ,won’t just main on one categories .Besides that , know well about the different environment will Impact the hotel or business so that will have solution or can low down the risk .Marketing is important to every company or firm , no matter is big company or small, service sector or any sector , is important to know it .