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The Contextual Environment Pestel And Circumstance Examination Marketing Essay

The PESTEL research tool provides a big picture of the hotel industry business and also identifies dangers and opportunities associated within the blissful luxury accommodation business.

Political/Legal factors:

Owing to the globalization and more relaxed accessibility into foreign market segments it has led to huge and enormous progress of global brands in the hospitality industry resulting in beginning of hotels in different parts of the planet.

Increasing need to consider environmental and communal laws and regulations have persuaded hotels to get create in environmentally very sensitive areas within an green way of removal of waste materials.

Changes in the legislation such as Hotel Proprietors Action certainly have an effect on the industry and business all together.

Economic Factors:

Increasing net value as well as increasing GDP throughout the world has essentially made luxury hotels affordable to customers.

Hotel industry faces threat up to certain extent scheduled to fluctuating exchange rates and high tax rates

Socio-cultural Factors:

Increasing dependence on vegetarian food especially among maturing populace has a great affect on menu selection in hotels.

The distinguished consumers are becoming more exotic in their style and prefer to try for different cuisines. And therefore, this has a great influence on complete menu range of big brand hotels.

Technological Factors:

Increased level of popularity of personal computers and property management systems, security systems influence business and profitability of hotels.

More use of modern communications technology to provide state-of-the-art alternatives, especially impact business travelers.

Continuous need to up grade existing technology and making use of modern technology in neuro-scientific quality check and customer marriage management.

Environmental Factors:

Increasing awareness pertaining to environmental concerns has led multinational companies to lessen total mileage from plough to dish to lessen carbon emissions.

The environmental legislation have introduced an eco-audit allowing businesses and organizations to increase green eventually leading to using recycled products.

Source: (The Global Hospitality Industry, 2010).

Strategic Significant Factors in the context of Rocco Forte:

Several factors are determined through the PESTEL analysis are having proper importance that helps the Rocco Forte group to set benchmarks in the whole industry.

Emerging markets contribute effectively in increasing market share. Emerging markets throughout the world would bring about opening of new hotels in various parts of the world and building up of hotel string. This would bring about increasing overall market talk about.

Increasing leisure, tourism and business in your community build strong competitive position. With the upsurge in leisure and tourism internationally, Rocco Forte can achieve a competitive border on the market.

Growing income across European countries, especially central and Eastern European countries would explicitly build strong brand name and image of the hotel. Proliferation in the income across the globe would certainly cause rising of standard of living of people and eventually would increase leisure visiting business for Rocco Forte

Opportunities and Threats in the context of Rocco Forte:


Enlargement of EU leads to opening of new rewarding marketplaces and international traveler arrivals. And for that reason with the upsurge in the international tourism across countries, Rocco Forte would get enormous opportunity to snare the forex market.

Increased level of popularity of Scottish marriages. This would certainly help the hotel business to develop and broaden in conditions of wedding deals.


Fluctuating interest and taxes rates as well as inflation rates may attribute to receipts of leisure travelling to Rocco Forte.

Activity 6. 6: The Transactional Environment

Identification of Strategic Places for Development:

The proper position and action analysis is possible through SPACE Matrix of any corporate group. Within the framework of Rocco Forte, the area Matrix is provided below that delivers opportunities for even more business development through adopting several strategies.


Intensive Integration















Source: (Kovshanova, 2007)

The above SPACE platform is based on several inner as well as external factors and their research that is eventually resulting in indicating hostile strategies, conventional strategies, competitive strategies and defensive strategies. Also, this framework of four-quadrant matrix recommends and proposes that the Rocco Forte would pursue an integration as well as intense strategy, the self-confidence being organised in more intense strategies. As well as the strategy that seems to create the most sense is the strategy of product/service development to be able to generate the most financial value (Kovshanova, 2007).

Moreover, these strategies are briefly discussed below "

Intensive Strategy: This plan is followed to improvise market talk about as well as improve the revenue. Within the framework of Rocco Forte, it could be done through market or product development. For example, Rocco Forte has opened new hotels in several regions proven to be highly successful in increasing profitability. Also, product/service development helps the brand to be more competitive than others.

Integration Strategy: With all the implementation of this strategy, Rocco Forte would successfully gain a control over its key stakeholders such as opponents, suppliers and marketers. For instance, Rocco Forte set up own distribution centre to receive sent goods from different suppliers and additional distributing to different branches over the region. On the other hand, reverse methodology can be used by entering into the breach of contract with suppliers to comply and meet JIT processing.

Diversification Strategy: At the business level, it is the probably to broaden into a fresh segment and is actually promising to increase the range of existing business. Air travel link ups and getting into the business of creating of historical palaces and structures create more revenue for the business.

Concentric Diversification: Building up and extending the existing product or service portfolio as well as for Rocco Forte, releasing new business middle at the lobby level may attribute to creation of competitive edge on the market.

Retrenchment, Divestiture and Liquidation: Overall these strategies are carried out at the time when business is not going in a profitable function. Divestiture primarily entails raising capital from market against any division/branch of the business. Liquidation involves reselling off assets because of their tangible well worth.

Strategic Characteristics to Build Strategic Group Patterns:

Country market or macro environment research allowing hotels to learn about the attractiveness of the marketplace as well the intensity of prevailing competition.

The stage of life circuit on the market where it is working in is ought to be examined as well to go into a growing market.

Critical success factors are certainly important in a view to use successfully on the market by gaining knowledge about who the customers are and what they are willing to purchase.

In addition to the uncertainty evaluation, it is vital to execute micro environment analysis through studying industry critical success factors, industry life circuit, and industry competition.

Strategic Group Evaluation and Strategic Group Patterns:

High End Hotel Group

This group characterized by high service and luxury accommodations mostly targeting towards affluent guests and friends. The state-of-the-art and luxurious services are given to make memorable experience for friends. Also, these hotel communities stresses upon high level of beauty, comfort and practicability. The Rocco Forte comes under this group.

Lower End Motels

Motels and Hotels coming under this group make an effort to seek their customers with low priced price management often located at less costly locations and are usually local restaurants to negate the need for onsite food service.

Mid-Level Group Hotels

They offer much larger and convenient stay and increased services than motels and less than those of top quality counter parts. Especially, this group actually is based on between above two communities and therefore the difference between top quality and mid level as well as middle level and low level is cyclical and less specific (Kovshanova, 2007).

Possible Changes and Ideas:

Internal corporate and business resources and features are proposed and advised to be considered during proper grouping of hotels. Also, stable level characteristics and market factors are should be considered

The SPACE Matrix research would essentially bring about deciding the financial power of the hotel, combined with the details regarding industry strength as well as environmental balance.

Activity 6. 7: The Transactional Environment: Market Segmentation

Rocco Forte is a luxury brand of hotels positioned in major gateway places and other leading businesses and leisure travel destinations worldwide. The Rocco Forte group of hotels expresses advanced luxury in a modern-day manner for discerning individuals who want personal services in a enhanced environment (The Rocco Forte Hotels Directory).

The main customer organizations are discovered that further underlies brand theme and differential brand experience for the hotel group. The customer communities and demographic market further determines relative setting and key characteristics of the brand.

Main Consumer Groups

Individual Business/Leisure Guests

Selected Small/Professional Groups

Small Creative Meetings and Gatherings

Large conferences, corporate and business and relationship meetings

Small exec/corporate meetings

Extended stay guests

Demographic Target

Professional, Top/mature, executive

Dignitaries and Celebrities

High/Top income bracket

Fashion, Advertising, Entertainment

Gen X Lifestyle

Strategic Support of New Market Sections:

On the basis of new business idea to enter in and touch new areas of hospitality sector, the new market sections strategically support eye-sight and values of the entire group.

The Rocco Forte being one of the very most renowned luxury brands throughout the world is now culminating into a fresh search and entering new diversified sections and would offer finest and top notch coming up with of palaces and historical properties using small paintings and fine art collectables created by the recognized craftsmen. This might entail the group to concentrate on mid market segment.

Owing to the strong focus on top quality business oriented travelers, Rocco Forte would likely to bring in business centers to be located at the lobby level offering high-tech communication services on the move. Coupled with comfy and motivational atmosphere and an enormous selection of business services, the hotel group would further strategically upgrade its amenities to be sure an absolute luxurious and contemporary stay (The Rocco Forte Hotels Directory website).

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