Amber Inn Suites Inc Final Report Chief 9862528

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. 3. Purpose of trip 2004 2002 Business 79. 8% 81. 8%

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. 5. Type of trip and payment Business traveler paid for by the company 2004 2002 65. 7% 67. 7%

Reasons According to Exhibit 6, 8. Reason for choosing 2004 2002 Close to next day’s activity 47. 5% 47. 0% Personal preference based on previous experience 48. 1% 49. 1% Stayed here before 40. 9% 41. 2%

Activity 1 Marketing Budget for next year: Should be more focused on business traveler Media Magazine Newspaper Outdoor Spot TV Cable Networks Radio Internet Maintain the budget of magazines related to business. Maintain 1/2 budget of 2005. Maintain the same budget as 2005 shown in Exhibit 7. Cut the budget. 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