Marketing of Burj Al Arab in Dubai Essay

Abstract: This paper discusses the marketing of Burj AlArab hotel in Dubai. It contains a brief description of the hotel and his history. It describes about the culture in Dubai and how it affects the hotel. A SWOT analysis has been discussed in the paper to know about its situation in Dubai. It also shows you the competitor of Burj Al Arab in Dubai and the marketing audit shows that how the hotel is positioned in the market .It concludes by stating how Burj Al Arab can maintain and develop its policies to keep it top in competitive market of Dubai. BURJ AL ARAB – The Arabian Tower of the Jumeirah Beach Resort. With 321 meters, this is the world ´s tallest hotel, only 60 meters shorter than the Empire State Building. This all-suite hotel stands 27 double-height storeys high and comprises 202 duplex suites. Your transfer to the hotel may be arranged by one of the world ´s largest fleets of Rolls Royce. Reaching new heights of luxury and service levels, Burj Al Arab offers a choice of 142 1-Bedroom DeLuxe Suites, 18 1-Bedroom Panoramic Suites, four 1-Bedroom Club Suites, 28 2-Bedroom Suites, six 3-Bedroom Suites, two Presidential Suites and two Royal Suites. The finest materials have been sourced from around the globe for your luxury and comfort, coming together in exclusively designed and handcrafted interiors. All suites feature floor to ceiling windows and are of course equipped with the latest technology like interactive television (with a camera that views all visitors to the suite – and you can give access to them without leaving the comfort of your bed or the armchair), all-purpose office equipment, laptop computers and internet access(First class travel 2006)Dubai :-Dubai is the most populous and second largest emirate (in terms of size) in the federation after Abu Dhabi.Dubai is distinct from other members of the UAE in that revenues from oil account for only 6% of i ts gross domestic product. A majority of the emirate’s revenues are from the Jebel Ali Free Zone (JAFZ) [2] and now, increasingly, from tourism. Dubai is currently the second largest developing city in the world after Shanghai.With enormous construction and development in various industries.Dubai has attracted world attention through innovative real  estate projects, sports events, conferences and guiness records.(Wikipedia 2006)SITUATIONAL ANALYSIS:-To know marketing strategies, it is essential to know as much as possible about the market place or environment in which the property operates. A situation analysis researches the properties current position in the marketplace and reveals potential opportunities to promote the property. (Abbey1998,pp54-55)Cultural Influence:The cultural environment holds deeply influence on marketing behavior. Hotel industry needs to be sensitive to cultural variation in the environment and grasp opportunities for expanding. For instance, In Dubai there is 80 percent foreigners who have investments, businesses and employments. Over 1100 staff members from 50 different nationalities work in different areas of Burj AL Arab hotel. Therefore, they bring the diverse cultures from all different home countries such as religions, values, and social behaviors, etc. There will be slight or even severe varies between different guest groups, product suppliers, and hotel employees. It is crucial important for the managerial level to treat people with equal respect and revere different cultural norms.(sevenseashotels 2006). SWOT Analysis :SWOT defines the desired output from the formal analysis which must precede the selection of the strategy and the formulation of the plans to implement it.(Baker 1998,p139)STRENGTHS :†¢The infrastructure of the building which is like a sail boat which gives the guest a very fine and different experience. †¢All the restaurant , bars has a different outlook and are very famous world wide. Ex:Al Mahara – seafood restaurant accessible by a three minute virtual submarine voyage. Magnificent oval aquarium visible throughout the restaurant. Al Iwan – sea view restaurant. Finest Arabian hospitality with dà ©cor of dramatic gold, red and black†¢Member of the leading hotels of the world.(sevenseas hotels 2006)WEAKNESS:†¢Dubai is promoted as a tourist destination but is more of a commercial destination which have a great impact on the hotel. †¢The rigid climate and the culture of Dubai does not help the hotel to stay flexible. †¢The major economy of Dubai is based on oil and gas so the Dubai government does not stress on hospitality and tourism sector. OPPORTUNITIES:†¢Dubai as slowly developing as a commercial destination which will help the hotel to attract lot of business travelers. †¢Dubai is pressurizing more on building lot of theme parks and sports activities which can help the hotel to attract lot of international tourist. THREATS:†¢Lot of new entrants as Dubai is developing in to one of the best commercial cities. †¢High prices of the accommodations which gives advantage to the other hotelsCOMPETITOR ANALYSIS:As Dubai is one of the biggest developing commercial centers there is a lot of competition in the hotels to attract the tourist. The detail comparison for product differentiation Burj al arab and its competitors are as follows:Burj Al Arab : world class duple suites-non smoking rooms-data ports-complimentary news paper-hair dryer-room service-spectacular views-bar-spa-jaccuzi-sauna-shopping center-private health and fitness facility-theropy rooms-Aerobic room-restraunt. (Burj Al Arab 2006)Sheraton Jumeira Beach Resort And Towers :cabletv-hair dryer-child care-wake up service-see view -spa-sauna-bar-shopping center-outdoor tennis-water sports-squash courts-golf course. (Star wood hotels 2006)Hyatt Regency Dubai : Non smoking rooms-cable Tv- complimentary news papper-roomservice-child care-spa-sauna-bar-shopping center-fishing-tennis-restraunt. (Regency hyatt 2006)Le Meridien Mina Seyahi Resort :Wheel chair-free news papper-child care-modem lines-room service-TV with cables-Hair dryer-Mini bar-outdoor pool-spa-tennis-fitness center-shops-restraunt. (Le Meridien Mina Seyahi Resort 2006)PORTERS 5 FORCES APLICATIONS TO BURJ AL ARABRivalry Among Existing Firm:HIGHIt has a lot of competitor as above mentioned which have strong brand names among the local and international travelers. In order to leverage brand equity, Burj Al Arab hotel must possess better quality of service facilities more than its competitors. Threat Of New Entrants:HIGHBurj Al Arab has got many loyal customers but a small mishandling in customers expectations may cause the loyal customers to switch to another property. Dubai being a commercial developing city there are lot of hotels coming in. Bargaining Power Of Buyers:LOWMajority of the customers always pay close attention to the hotel price .It has all suite rooms which in all is different from other hotels so the people which the hotel target is specific so the bargaining power of customer is less. Bargaining Power Of Suppliers:LOW The hotel has to face a pressure from their suppliers; however the hotel can reduce it by partnering with travel agencies or big market chains purchasing high volume of products. Threat Of substitute:LOWBeing a very high class property and having a great brand name there are almost no threats to the beautiful property of Burj Al Arab. MARKETING AUDITS:A marketing audit is a systematic and thorough examination of a companies marketing position. (J.Baker1998,p237). POSITIONING:In the case of BURJ AL ARAB hotel Dubai, due to great occupancy rate and high industries growth rate , it experienced the high market growth and strong competitive advantage. Burj A Arab have a lot of competitor like Le Meridien Sayahi ,Hyatt Regency Dubai, Sheraton Jumeira Beach hotel And much more ,Which have a strong brand reputation among local and international travelers. In order to leverage  brand equity , Burj Al Arab hotel must possess better quality of service facilities above its competitors. CONCLUSION:The above report provides detail report on the market analysis of Burj Al Arab in Dubai and reviewing the marketing strategies, influence of the culture on the hotel, its position in the market and its competitors. The city of Dubai is a highly developing commercial centre, with many new hotels coming up with recognized brand names. In order to develop a competitive advantage the hotel should maintain and develop the following points:1)To emphasise propagating the architectural miracle and there unique suite rooms. 2)To continue implementing high quality of service. 3)To persist in high price and standards strategy. 4)To promote sports events, and Dubai shopping festival. REFERENCE LIST: Abbey.J.R(1998)Hospitalaity Sales And Marketing,Educational institute of the American Hotel & Motel Association. Baker.M.J(2000)Marketing Strategy And Management, Palgrave MacmillanKotler.p,Keller.k(2006)Marketing management 12e,Pearson Prentice Hallhttp.//www.firstclasstravel.de/burjalarab.htm (last visited 16/4/06)http://en.wikipedia.org/wiki/dubai (last visited 16/4/06)http://www.starwoodhotels.com/sheraton/search/hote_detail.html?propertyID=1326(last visited 16/4/06)http://dubai.regency.hyatt.com/hyatt/hotels/(last visited 16/4/06)http://www.lemeridien-minaseyahi.com/-14k(last visited 16/4/06)