WHY DO WE CHOOSE TUNE HOTEL?

Budget hotel and using cost leadership in its operation

COMPANY PROFILE
Operated by Tune Hotels Regional Services Sdn Bhd since 2007 The founder are Tony Fernandes and Kamarudin Meranun The CEO is Mark Lankester Promote Consumer Friendly business model Low-cost carriers hospitality industry Limited service but luxurious hotel at affordably priced accommodation. The basic concept: pay-asyou-use!!

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It works together with its sister company (Air Asia) and Tourism Malaysia It has 20 operating hotels in Malaysia, Indonesia, Philippines, UK, Thailand Its mission is to have 100 hotels around the world by 2015 BIG Loyalty Program Strategically located near shopping, sightseeing, and business districts.

BUSINESS FEATURES
Permanently eliminating the administration fee for room reservations across all existing hotels (5 January 2011) Check-out time has been extended (from 10am to 11am), deposits for towel rental and room keycard have been removed, moreover hairdryers provided free of charge (1 December 2011) Hot offer room fee only (12cents for Malaysian hotels; 12000 rupiah for Bali hotels; from 25 for London hotels) in term of celebration of two new launched hotels-Bintulu (3 January 2011) and Kota Bahru (23 January 2011)

LAUNCH FACTORS
Effectiveness enhancement Cost efficiency Attract more customers to stay in their hotels For convenience and comfort of its guests

HOW DID WE FIND THE RELEVANT INFO?

Through: Articles Tune Hotel.com official page Online magazine

BRANCHES AND
FACILITIES

ENTRY BARRIERS
Promote better economy of scale Cater the basic accommodation for savvy traveler Large capital injection Compliance with the laws of Malaysia Worldwide networking

Remarks: Leader & Largest low cost carrier that could discourage potential entrants

SUPPLIER POWER

Maintain strong relationship with strategic partners

Remarks: Proximity of reliable suppliers

BUYER

POWER

Offer lower price to the guests Product differences and brand identity Remarks: Able to offer lower price to price sensitive travelers

THREAT OF SUBSTITUTES
Budget hotels H5 Inn, 360 Inn, Sun Star Inn Guesthouses and hostels

Remarks: Offer lower room rates in order to defend substitutes

RIVALRY
Budget hotels Famous hotels in the city (ParkCity Everly Hotel) Remarks: Affordable & Competitive on price

TUNE HOTEL IS ONE OF THE COMPANY THAT ADOPT COST LEADERSHIP STRATEGY

PEST

POLITICAL
Finance Ministry of Malaysia granted investment tax allowance Government has allowed foreign investment (Index of Economic Freedom2008 Malaysia, 2008) Stable country for investment and peaceful for tourism (Report: Opportunities in Malaysian Tourism Industry (2007-2009), 2008)

ECONOMY
Personal disposable income in Malaysia is increasing. (Report: Opportunities in Malaysia Tourism Industry 2007-2009) Malaysia Industrial Development Authority gives discretion regarding granted deduction on advertising, marketing & market research specifically to the companies that wish to operate and promote tourism overseas, moreover, double deductions are given to promote Malaysian brand names Industrial Building Allowance (IBA) grants initial 10% allowance and annual 3% on constructing hotels

SOCIAL
Greater awareness of budget hotels Huge travelling potential An ideal tourist destination with great culinary and budget stores Tourist events such as Malaysias Mega Sale Carnival (5th July- 1st September), International Fireworks Competition and International Climbathon Both medical and education tourism has been increasing Tourism Malaysia recorded 10.9 million tourist arrivals for January to June compared with 10.7 million last year (2008)

ENVIRONMENT
Scenic beauty of the country Metropolitan extravaganza offered at cities like Kuala Lumpur (KL) Governments generous incentives Tax cuts for hoteling operations

TECHNOLOGICAL
Well developed communication systems-landline telephone and cellular domestic/international Broadcast stations, both Radio and TV 5 International and 15 domestic airports

SWOT

STRENGTHS
Mark Lankester posses good experience in managing companies (start-up phases to managing growth-oriented) Engaged with committed to mission statement and excellent skills of management team Good financial performance (2009) Boost staff productivity hence result on low operational costs/improve the operational efficiency Recently, Tune Hotel has been awarded by TripAdvisor as one of top 25 bargain hotels in Malaysia

WEAKNESSES
No frills/ limited services perhaps lead to guests disappointment Lack of trained on housekeeping team in some hotel networks Low consistency in the compliance with Tune Hotel standards among its network

OPPORTUNITIES
Investment tax allowance by Finance Ministry of Malaysia Domestic tourism and expo of must-see attractions Promotion held by Tourism Ministry of Malaysia Relax foreign investment restrictions (Tune Hotel is opening up in Singapore by 2013) Co-operation with Air Asia and Tourism Malaysia Cooperative operating relations with Thailand, Philippines, UK and Indonesia Increasing tourist arrival recorded by Tourism Malaysia Statistics

THREATS
Competitors such as Shangri- La, Sheraton, Hilton, and Traders provide exclusive services and offer special promotion Replica Inn, Asia Rooms, and 360 Inn are offering affordable accommodation Cutting price to the lowest rates could cause price war

RETURN ON INVESTMENT
Quantitative objectives for marketing stated, to achieve 10% sales growth within one year of operations; to capture 15% market share in the hotel industry; to generate 48% return on sales; to generate at least 5% return on investment on $100,000 worth of investment (scribd inc 2012, p. 11)

Given Information: Final cost per room is $2.89; Cost per room is $1.50; Total Invested Capital of $100,000; No. of Room 2092 (breakeven analysis); ROI of 0.0604 or 6%. Return on sales calculation (Profit/Sales)

Investment Turnover calculation (ROI/Return on sales)

Sales calculation (Investment turnover * Invested capital) 0.1258*$100,000 = $12,583.06 No. of Room calculation (Sales/Final cost per room)

Remark: According to the final price set up, ROI of 6% has satisfied the minimum predetermined ROI of of at least 5%

PRESS

STATEMENTS

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Lankester said, increasing the number of our hotels reiterates our commitment to increasing our network of hotels to have 100 hotels in major cities globally, providing five-star beds at incredible value and affordability. The opening of Tune Hotels Bintulu and Kota Bharu will further add value to savvy travellers, both business and tourists alike, who are keen to adopt our pay-as-you-use concept, he also said that 2011 is the start of a great new year for us and our guests. We have kept our focus on ensuring that we remain true to our guests and deliver great new hotels in great central locations at great prices. Kota Bharu and Bintulu are really exciting for us as one is the first Tune Hotel in Kelantan and the other is our second Tune Hotel in Sarawak. (Borneo Post Online 20102011)

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Its chief executive officer, Mark Lankester, said the hotels would be built in Malaysia, London, Indonesia, Philipines, Thailand and Australia next year. Tune Hotels will invest over RM907 million to set up a network of 30 hotels worldwide within the next 18 months. (Business Times Online 2011)

REFERENCE LIST

http://www.tunehotels.com/sites/default/files/mediacentre/Channel%20News%20Asia%20Online.pdf http://www.tunehotels.com/sites/default/files/mediacentre/Business%20Times%20Online.pdf http://www.thesundaily.my/news/229832 http://www.scribd.com/doc/19539744/Marketing-in-PracticeTune-Hotels-KL-Marketing-Plan http://www.theborneopost.com/2010/11/18/tune-hotelsbintulu-to-help-spur-tourism-business-withinscore/#ixzz1on6E3Kmw http://www.johnytim.com/2010/05/tune-hotelscom-offer-from-9sen-per.html http://www.tunehotels.com/business-as-usual-for-tunehotelscom-in-2009 Triple joy for Tune Hotels network - Northern - New Straits Times http://www.nst.com.my/streets/northern/triple-joy-for-tunehotels-network-1.50096#ixzz1oZEFFjFk

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http://www.scribd.com/doc/19539744/Marketing-inPractice-Tune-Hotels-KL-Marketing-Plan http://www.tunehotels.com/about-us

CANON MARKETING (MALAYSIA) SDN BHD

Company Specific Research

COMPANY SPECIFIC RESEARCH REASONS FOR CHOOSING CANON

A product differentiation company

Various types of products are produced. E.g.:- Digital cameras, printers, projectors, etc.

A Dominant company in Malaysia Well- known by most Malaysian Worldwide company

COMPANY SPECIFIC RESEARCH OVERVIEW

We will be discussing the company: Profile Products before they launced the Eos 600D New products launced Factors for launching canon Eos 600D Performance of the company PEST SWOT

COMPANY SPECIFIC RESEARCH RELEVANT INFORMATION

Canon websites Articles Journals Magazine Pamphlets Textbooks

COMPANY SPECIFIC RESEARCH COMPANY PROFILE

Founder: Takeshi Mitarai, Goro Yoshida, Saburo Uchida and Takeo Maeda. Established in year 1987 Successful and a dominant corporate in Msia Goal: provide excellent products & supoport to Msian users 25th anniversary in 2012- 25 years of success in 2012

PREVIOUS PRODUCTS CANON EOS 550D

NEW PRODUCT CANON EOS 600D

A DSLR camera Launched on March 2011 A class leading 18.0 megapixel CMOS sensor 3 inch wide Vari-Angle clear view LCD Monitor Suitable for beginner class An award winning products of Canon: 2011 TIPA Awards -Best DSLr for entry level EISA Award- Best Product 2011-2012 Gold Readers Choice Awards Winner

CANON EOS 600D

INDUSTRY SPECIFIC RESEARCH FIVE FORCES ANALYSIS

Forces Competitive Level Quite high Factors Numerous and are roughly equal (e.g. Fujifilm, Nikon, Olympus, Samsung, Sharp, Sony, ext) Products will depreciate in value over time Specialized facilities: Hard to convert, hard to sell Repair parts: Responsibility for own firms products already sold All camera has it own special features Cost to produce the latest and quality camera are not cheap Use up a lot of technology and resources

Barriers of entry

High

Substitutes

Quite high

Phone camera (ie iphone, samsung galaxy, blackberry) Ipad, laptop built-in-camera,

INDUSTRY SPECIFIC RESEARCH FIVE FORCES ANALYSIS

Forces Bargaining power of suppliers Level Quite high Factors Not dominated by a few companies but it is more concentrated than the industry it sells to Product is differentiated, and has built-up switching costs Concentration level of the buying group is moderate Products purchases from the industry are standard Quality are important to differentiated from the competitors

Bargaining power of buyers

Moderate

KNOWLEDGE INTEGRATION

RETURN ON INVESTMENT FOR CANON

2010 9.73%

10 9 8 7 6 5 4 3 2

2009 5.64%

2011 (2nd Q) 2.08%

2011 (1st Q) 1.96%

1
0

KNOWLEDGE INTEGRATION SWOT ANALYSIS

Strength Strong Brand Weakness Over pricing, setting too high prices Limited product line Problems to keep up with demand Opportunity Threat Governmental Global support, (grants, economic allowances, downturn training etc) Changes in technology Growth of the camera industry Earthquake in Japan 2011 Growth of camera substitutes market

Market Leader Services and products offered are original

REFERENCES

http://media.canonasia.com/local/my/live/aboutus/Canon_Corporate_Profile_R4. pdf http://www.canon.com.my/business/web/company/about http://www.canon.com/cameramuseum/camera/dslr/data/2010/2011_eos_kiss_x50.html?lang=eu&categ=crn&page=2010http://www.investopedia.com/terms/e/economiesofscale.asp#a xzz1oLLUpRa0 http://www.investopedia.com/terms/p/product_differentiation.a sp#axzz1oLLUpRa0 http://www.investopedia.com/terms/c/capitalrequirement.asp# axzz1oLLUpRa0 http://ocw.u-tokyo.ac.jp/wp-content/uploads/lecturenotes_eng/Eco_07/e-shintaku-03-1.pdf http://ils.unc.edu/daniel/237/Competition.html http://www.scribd.com/doc/35580613/Canon-Swot