Bmw Company Marketing Plan

1. Executive Summary

The BMW Group, a company established in 2010 in Ba Ria Vung Tau province, SR Viet Nam with registered capital of 10 million USD. The BMW Group started its business with tourism operator, catering service for oil & gas industry and expanded to real estate sector. After 17 years, the company has occupied 20% market share of tourism and catering service in the South of Viet Nam with revenue of 20 million USD per year. With the real estate sector, BMW Group has built and operated 02 shopping malls, 10 office and apartment buildings in Vung Tau, Dong Nai and Ho Chi Minh City. The financial statement of BMW Group in the fiscal year 2016 showed that the company revenue was 50 million USD and the profit after tax was 05 million USD.

With the strategy of differentiation, BMW Group has invested a 5* exclusive luxury resort - The BMW Resort, in Ho Tram beach, Ba Ria Vung Tau province. The BMW Resort is renowned for their convenience, strategic location, the high level of personal service guests, and the extensive range of comprehensive business facilities available in luxurious settings.

The BMW Resort has 30 - 40 exclusive rooms and is targeting corporate guests with a two to three night stay requirement. Target business segments include the oil & gas industry sector, due to the proximity of the resort to Vung Tau, where is called the capital of the oil and gas industry of Viet Nam; the real estate entrepreneurship in order to capitalize on the strategic location of the resort in relation to the Ho Chi Minh City and travel trade guests attending the MICE tourism in Vung Tau and Ho Chi Minh City.

Differentiating the type of business, from that of the competition, will assist not only in BMW Group business as a whole, but will attract frequent business travelers, who require a higher level of personal service and recognition than they can receive at competitive five star properties in Ba Ria Vung Tau and the cities nearby. This will provide the BMW Resort with an opportunity to leverage its core competencies as regards servicing the business traveller in a luxurious environment.

1. Situation Analysis

The BMW Resort is dependent on annually contracted clients from the travel trade, oil & gas industry and real estate sectors with guaranteed room nights per year. This area of business accounts for 70% of the property's revenue.

The current market is somewhat depressed, due to the economic growth of Viet Nam is not high as expected. This threat to the critical corporate sector could be considered as short to medium term, as indications of a return to business travel are observed by the Vietnam National Administration of Tourism. The BMW Resort, must continue to focus on delivering an exemplary business service, at affordable rates, in order to develop the customer relationship beyond one stay.

Competitive room rates have been cut dramatically in order to attract contract clients over the next 12-18 month period. The BMW Resort's survival in the current environment, will be dependent on repeat corporate contract business and customer loyalty to the brand. The brand must therefore continue to deliver on its promise and values.

1. SWOT analysis

Market Demographics

Market Geographics: Ho Tram is a small beach  located in Xuyen Moc District, Ba Ria Vung Tau Province. It is situated about 125 kms southeast of Ho Chi Minh City and about 70 kms northeast of Vung Tau City. The district had a population of more than 132,000 with an area of 642 km².

Located near the sea with many beautiful beaches, the area of agricultural and forestry land accounts for 80.7%, the area of good and medium land accounted for 61.5% of the total natural area. Xuyen Moc District has the advantage of developing comprehensive agro-forestry, developing tourism associated with forests, sea and fishing.

Market Demographics:

Population structure:

+ 0-14 year olds: 25 %

+ Age group 15-59: 68 %

+ Group aged 60 and over: 7 %

Ethnic groups : Kinh ( 97.53 % ) , Chinese ( 1.01 % ) , Ro ( 0.76 % ) , Khmer ( 0.23 % ) , Tay (0.14% ). The other ethnic groups accounted for 0.33 % of the district population.

Market Behaviors: Businesses in Ba Ria Vung Tau choose to support one another wherever possible, be remaining loyal to long standing relationships with customers and suppliers. This attitude supports the brand principles of the BMW Resort, which has had experiences in the province for 17 years, and is well supported by local business requirements for rooms, conference facilities and catering business functions.

Based on research carried out in 2015, more than 65% of the interviewees had some awareness of the BMW Resort.  Awareness levels were highest amongst small- to medium-sized businesses with 50 or more employees, who had used the hotel's facilities either for visiting business guests, or for their own functions.

Market Growth

In 2016, international arrivals to Vietnam reached 10 million, up 4.3 times from 2001, and domestic arrivals reached 62 million, up 5.2 times compared to 2001. Tourism revenue in year 2016 reached VND 400 trillion (US $ 17.7 billion), accounting for 6.8% of GDP. With 17 to 20 million foreign visitors and 82 million domestic visitors by 2020, it is expected that tourism will contribute more than 10% to Vietnam's GDP.

In order to meet this rapid growth, by 2016, the tourist accommodation supply in Vietnam has increased by 18% year-on-year, reaching 420,000 rooms (classified only). Tourism growth is creating more opportunities for the hotel market, especially the middle and high end.

According to real estate market research company Savills Vietnam, from 2013 to 2016, the supply of 4-5 star hotels will increase by an average of 20% annually. The resort cities and islands of Vietnam have surpassed Ho Chi Minh City and Hanoi in the growth of international tourists. Phu Quoc became an attractive destination and a new option for international tourists, with a 40% growth in visitors. Meanwhile, Da Nang over 30%, Nha Trang at 23%, Ba Ria Vung Tau 18% over the growth rate of Ho Chi Minh City (10%) and Hanoi (16%).

The growth rate of the target markets has been steady over the past five years. The travel trade sector has grown at an average of  9.5%, the oil & gas industry at an average of 12.5% and the real estate sector at 15%.

Macroenvironment

The external issues that affect the BMW Resort are:

• Political: Viet Nam has a stable political environment. Renovation is the economic reforms initiated in Vietnam in 1986 with the goal of creating a "socialist-oriented market economy”. Privately owned enterprises were permitted in commodity production (and later encouraged) by the Communist Party of Vietnam; furthermore, the push to collectivize the industrial and agricultural sectors of Vietnam, previously the focus of intense efforts by the Communist authorities, was abandoned. Renovation reforms led to the development of what is now referred to as the Socialist-oriented market economy, where the state plays a decisive role in the economy, but private enterprise and cooperatives play a significant role in commodity production. Renovation helped Vietnam establish diplomatic relationships with the capitalist from the West and from East Asia. Viet Nam has opened the economy by joining international organizations such as: became the seventh member of ASEAN on 28 July 1995; by the approval of the WTO General Council, Viet Nam officially became the WTO's 150th member on 11 January 2007; being a member of APEC in November 1998.
• Economic: 

• GDP growth rates of Viet Nam in recent years:

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• The GDP growth rate of Viet Nam recent years is more than 5%, even in 2015 was more than 7%. The GDP growth rate in 2017 is expected to be 6.5%. Current interest rate is about 6-9%, which is the lowest rate from the period of last 10 years. That interest rate makes people tend to invest more, that means people could spend more for their living and tourism is one of people’s need.
• The macroeconomic at the present shows that there are lots of opportunities for tourism development. 

• Social: the trend towards cost effective business travel leads hotel guests to seek more value for money, which is where our added value differentiation strategy comes into play. 
• Technological: the new technology in material could give the resorts/hotels more choice to build and decorate rooms that meet any guest’s demand. The development in software and social network could help resorts/hotels in management system and in promotion as well but this will require a high level of investment.

The Company

The BMW Group has 17 year experience in tourism and catering service in the South of Viet Nam. Besides that, BMW Group has experience in building and operating 02 shopping malls, 10 office and apartment buildings in Vung Tau, Dong Nai and Ho Chi Minh City. The Company also has a strong financial position to invest new project.