Table of Contents
I. Introduction of Ramada
II. Mission and Vision Statement
III. Products and Services
IV. Current Market Situation
V. Strategic Planning
a. SWOT Analysis
VI. PESTAL Analysis
VII. Business Market Relationship
VIII. Value-Chain/Value-Delivery Network
IX. Product Consideration
X. Pricing Strategy
XI. Promotional Strategies
Introduction of Ramada
Ramada is a large American multinational hotel chains owned by Wyndham
Hotels and Resorts. As of June 14, 2021, it operated a portfolio of 21 hotel brands
with approximately 8,900 hotels with 796,000 rooms across 95 countries under
the Ramada brand.
The Ramada name derives from the
Spanish term rama (meaning
"branch"). Temporary open-air
structures called "ramadas" (meaning
"porch" or "arbor"), made of brush or
branches (similar to an arbor) were
popular in Arizona during harvest time.
Company websites commonly refer to
the structure as a "shady resting place"
where you have the facility of the
restaurant also.
In the early days, Ramada had branded
on-site restaurants and lounges.
Main motto of Ramada Hotel is King
Customer Concept (customer is king).
Ramada’s norms and values are serving
the guests with best quality of food
product and services. Ramada International differs from their competitors on the
basis of 110% quality measures. The quality Ramada provides in terms of food,
stay, services is exceptional which cannot be found in their competitors.
Mission and Vision Statement
Mission and Values
We make hotel travel possible for all. Wherever people go, Wyndham will be
there to welcome them. This mission, along with our values, guides the way we
do business every day.
Our Culture
Our signature Count on Me service culture encourages each team member to be
responsive, be respectful and deliver great experiences to our guests, partners
and communities.
Our Core Values
Integrity
We hold ourselves to the highest standards. We're responsible, truthful and
transparent. We do the right thing.
Accountability
We honor our commitments and deliver results. Under any circumstance, we
stand up and say: “Count on Me."
Inclusive and Caring
We respect differences in people, cultures, ideas and experiences, we foster
partnership. We welcome all.
Fun
Fun is an energizing force, when we have fun doing what we love, our guests love
their experiences with us.
Products and Services
Ramada vastly provide services in terms of food, fruits, valet and many more
small services like bell-boys, health facilities, swimming pools, halls, onsite
parking, high-speed internet availability, etc.
Ramada successfully marketed all of its food products by keeping the quality
standards way too high.
Current Market Situation
Food is the core product of Ramada and there's no compromise about it. Kitchen
department takes care of the quality of their food.
There are three types of competitors of Ramada in Multan:
I. Star/Direct Competitor
II. Sub/Secondary Competitor
III. Upcoming Competitor
Star/Direct Competitor
In Multan market, as such there’s no star competitor because it is the only 4-star
restaurant.
Sub/Secondary Competitor
Their secondary competitors are Belmorris Hotels and Resorts, Faletti's Grand
Hotel Multan, Avari Xpress Hotel Multan.
Upcoming Competitor
Their upcoming competitor is Pearl Continental (PC).
Company’s total market capital is 8.325billion USD (Int.) and increasing and its
current price per share is 89.65 USD (Int.). Their 1-year target is to take the
current share price to 93.83 USD (Int.). Wyndham Hotels and Resorts reached an
all-time high at 89.65 USD (Int.). Looks like the 16% dividend increase went
unnoticed. Not many companies out there raising their payout as quickly as
Wyndham over the last few years.
To generate the best consumer values, Ramada trains its staff with e-Learning,
Instructor-led training, hands-on training, coaching or mentoring and group
discussion and activities. Quality service is the main tag line.
Ramada is building very strong relationship with its customers through sales and
marketing department. Sales and marketing department builds up the
relationship with many companies. They have different tasks to fulfill. They meet
with the other company representative and tell them about their different food
products like Hi-Tea, buffet and much more. They often give the discount offer to
the regular companies to maintain a good relationship.
Strategic Planning
Most important factor of strategic planning is the inner core values of their
employees. Ramada trains their staff with such integrity so that they keep their
morale and standards high. Deliver the responsible, truthful and best results
under no circumstances. Ramada cares about the differences in people and
culture.
SWOT Analysis
I. Strength:
Ramada’s strength is the capabilities and resources that it can
leverage to build a sustainable competitive advantage in the market
place. Their biggest strength is that in Multan there in no other 4-star
hotel other than Ramada. Superior product and services quality can
help Ramada to further increase its market share as the current
customer are extremely loyal to it.
II. Weakness:
Weaknesses are the areas, capabilities or skills in which Ramada
lacks. It limits the ability of the firm to build a sustainable competitive
advantage. There’s always a room of improvement in such large
enterprises such as in Ramada there is lot of parking issues but
company is taking care of it. Ramada bought a quite large area of
land for parking on Abdali Road which is under construction and will
open soon.
III. Opportunities:
Opportunities are macro environment factors and developments that
Ramada can leverage either to consolidate existing market position
or use them for further expansion. E-commerce business model can
help Ramada to tie up with local suppliers and logistics provider in
international market. Social media growth can help the company
reaching to customers at a significantly lower marketing budget.
IV. Threats:
Threats are macro environment factors and developments that can
derail business model of Ramada. The biggest threat company has to
face in the shape of its upcoming competitor which is Pearl
Continental Hotel.
Ramada is making a big technological improvement for its prosperous future but
unfortunately, they are confidential and cannot be revealed right now.
PESTAL Analysis
I. Political Factors:
Political environment and other factors not only impact the cost of
doing business but also long-term sustainability. Based on the
information provided by Ramada, they already know the upcoming
situation and they are ready to tackle it.
II. Economic Factors:
Economic factors of a country and region have a direct impact on the
potential attractiveness of a given market. Price fluctuations in both
local and international markets are the disturbing measures for
Ramada. They have to revise their rates according to it.
III. Social Factors:
Social factors such as demography trends, power structure in the
society, women participation in workforce etc. have immense impact
over not only the country's economy but also on workforce talent
availability and level of consumer demand. Health and safety
standards always reflected in the Ramada’s quality of a product.
IV. Technological Factors:
Technology is fast disrupting business models across various
industries. Some of the technology trends that are impacting the
macro environment are developments in artificial intelligence, use of
machine learning and big data analytics to predict consumer
behavior, growing importance of platforms over service providers
etc. Ramada is making some big technological advancements but it’s
all confidential.
V. Environmental Factors:
Environmental factors are fast gaining traction not only among
consumers but also among regulators and policy makers. By the
grace of Allah Almighty, there’s no hardship for us regarding harsh
climate change in Pakistan.
Business Market Relationship
Sales and marketing department build up the relation between Ramada and other
suppliers (company). After going through the analysis, Ramada gives the list of
potential companies based in Lahore, Karachi, Islamabad, etc. to its marketing
team. This group then visits each month one by one from Lahore to Islamabad to
take business (buy some sort of services) from other potential companies. This
relationship between two businesses in which one is supplier who provides
services (of any form) to the other is known as Business Market Relationship.
Value-Chain/Value-Delivery Network
Every Department in Ramada has its own roles, job description and Standard
Operating Procedure (SOP). Each department has its own SOP like HR, Finance,
Housekeeping, Engineering, etc. according to which they have to work out and
give their best performance. It helps them coordinate between the departments
but there’s always a room of mistake when you provide a service. For example; if
any waiter didn’t serve it well then obviously, he has same training issue. HR
department gives the training but department head monitors it. If the
department head doesn’t monitor the training, then there are going to be some
issues within the department. So, the only solution is to train them.
Product Consideration
Ramada takes it very seriously about their food quality and hygiene when making
or testing a new product. First, they add the new food product, which they are
making, to the menu chart. Then they prepare the recipe of the dish with the help
of best chefs. Afterward they cook the dish 5 to 10 times with every aspect so that
the margin of error becomes negligible. Ramada has its own special tasters for the
tasting of the dish. Then the Food Safety Quality Assurance Department (FSQA)
ensures that after eating the dish whether you have food poisoning or not. If the
product is good for health, FSQA department gives the report and clearance. And
after all the safety standards Ramada then launch the new food product in the
market.
Pricing Strategy
In Ramada, Finance Department decides the price strategy in which cost
controller is the most important. Cost controller determines the price of every
item used in the making of a dish. It maximizes profits by establishing realistic
financial benchmarks, comparing them to actual performance, and then
eliminating the factors causing the difference between the two measurements.
Ramada uses both customer-value based and cost-based pricing because the
price of their food product is customer friendly and also has slight profit margin.
Ramada doesn’t have to use competition-based pricing because at that moment
there is no competitor in the market big enough to compete with Ramada.
Promotional Strategies
Ramada legacy food products are its seasonal star dishes which changes with
every season. Ramada uses 80% imported and 20% local food products. In
winters, they introduce their signature coffee which is best in class because they
import their coffee beans from Germany. In summers, they introduce their
refreshing drinks to attract the customers.
