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ABSTRACT

Market Segmentation recognizes that people differ in their tastes, needs, attitudes, lifestyles, family size, and composition, etc… “It is a deliberate policy of maximising demand by directing marketing efforts at significant sub-groups of customers of consumers” (Chisnall, 1985: 264).

‘Segmentation involves viewing a heterogeneous market as a number of smaller, more homogeneous markets’ (Smith, 1956). ‘These smaller markets can be distinguished by different consumer needs, characteristics, or behaviour. For segmentation to be managerially useful, each segment needs to be accessible, measurable, and substantial’ (Kotler, 1980).

‘The report focuses on the particular case of “Tourism Australia”, which promotes Australia as a tourism destination internationally and domestically and delivers research and forecasts for the sector.’ (Tourism Australia, 2009)

Why segment a destination?
It identifies the destinations’ potential customers
It enables the organization and other travel agencies and tour operators to focus their marketing on the customers who will be most likely to buy the services that are on offer.
Enhanced profits for business
Helps improve customer service.
Kick-starts competition in specific parts of the market
INTRODUCTION

Tourism Australia is a statutory authority of the Australian Government, which promotes Australia as a tourism destination internationally and domestically and delivers research and forecasts for the sector.

Established on 1 July 2004, Tourism Australia brings together the collective skills and knowledge of four separate organisations: the Australian Tourist Commission, See Australia, the Bureau of Tourism Research and Tourism Forecasting Council. In a strategic planning process Market Segmentation is a stepping step which recognizes that people’s need, desire, and expect different characteristics from products or services that they experience or purchase.

Under the Tourism Australia Act (2004), Tourism Australia has a statutory obligation to help foster a sustainable tourism industry in Australia. Sustainable tourism is in the buzz now, and is one of the many key segments, that Tourism Australia focuses on.

The Tourism White Paper is an AustralianGovernment tourism initiative,designed to achieve industry growth and provide greater synergy across all areas. It provides framework for structural change to more effectively support Australia’s tourism industry.

‘Tourism Australia’ and their Market Segmentation:

Tourism Australia concentrates on Demographic and Psychographic segment wherein mainly it attracts youth travellers and other interests and leisure travellers.

1. Demographic

Understanding demographics is vital to service/product development and segmentation, especially with regard to understanding trends in the market place. Demography includes the study of age, sex, education, family status, life cycle etc., which acts as an excellent tool for a Destination Management Company or a Travel Board to attract more tourists and travellers to their country. In the case of Tourism Australia and this report I have chosen to concentrate on ‘Lifecycle’ laying emphasis on ‘Youth Market’.

1.1 Lifecycle:

1.1.1. The Youth Market:

They have lower than average incomes, high energy approach to travel; they are more likely to undertake “backpacker tourism, adventure sports, and other activities on offer that generate high adrenaline.

Focusing on ‘Tourism Australia’ as a potential attractor to the ‘Youth Market’ there are a few most appealing segments that the marketing team concentrates on.

1.1.1a. Nature is the most appealing experience to youth travellers with high appeal in all markets. Australia’s wild flora, fauna, its scenic beauty acts as a perfect getaway and holiday destination for youth of this generation. Australia has a lot on offer like sea, sand, sun, surf, bungee jumping, parasailing, etc., which attract youth’s and also see to it that they are connected to nature and still maintain the ecology.

1.1.1b. Coastal Lifestyle experience is also very appealing to youth traveller. It portrays a very classic Australia outdoor lifestyle and provides a whole lot of fun and thrill at the same time. Travellers get to meet new people, mix and learn the lifestyle of the locals and enjoy the fun environment the destination has to offer.

1.1.1c. Aboriginal Australia is of moderate appeal to youth traveller. The Aboriginal Australia is very historical and cultural, but not many are interested in undertaking this segment of tourism that the country has to offer. It calls for less interaction and very minimal socialising, whereas youth prefer the opposite. ( Aboriginal Tourism Australia ).

1.1.1d. Outback Australia and Food & Wine are less appealing to youth travellers and are not currently perceived as being unique to Australia. While the outdoor, relaxed nature of this experience has appeal, in general it is seen as an expected element of a holiday. There is an opportunity for Australia to promote accessible and affordable quality food & wine experiences to the youth market. There are opportunities to reposition these experiences for the youth market to make them more relevant to this segment (Marketing Resource, Tourism Australia, 2009).

1.1.2. The Family Market:

‘In accordance with segments created by Tourism Australia, the family market constitutes of the above average education and income, most affluent of the other lifecycles. They tend to be shorter-haul travellers because of their busy lifestyles work and also are mostly accompanied with children Most of the travellers falling under this category of the market focus on soothing vacation holidays, so that they are rejuvenated after a hectic schedule of work and life and are ready to get going till the next vacations’ (Marketing Resource, Tourism Australia, 2009).

1.1.3. The Mature Market:

‘Mature-aged travellers are defined aseither domestic or international visitors aged 55 years and over. They are well educated and affluent and more likely to seek out exploratory vacation activities. Most travellers in this segment of lifecycle segmentation are more likely to visit destinations and other attractions for either exploratory or research work’ (Marketing Resource, Tourism Australia, 2009).

1.1.4 The Senior Market:

The senior market consists of travellers are likely of all the above segments to seek out exploratory vacation experiences, much less likely to view vacations as opportunities for relaxation. Above average participation in natural sightseeing, they will be less active in outdoor activities. They rely more on printed material and television for travel opportunities and information. One of the most prominent holidays that travellers in this market look out to is “Cruise holiday”. Although the might be the smallest segment, special attention should be paid to the seniors market, as its members look for exploratory experiences and prefer value-added components such as guided services (Marketing Resource, Tourism Australia, 2009).

Limitations of Family/ Lifecycle approach:

This approach gives little or no explanation for differences in consumption patterns as compared to psychographic or lifestyles, demographics says nothing regarding motivations and the value structures which guide the travellers or visitors’ behaviour. (Moutinho, 2002)

2. Psychographic

This type of segmentation divides the market into groups according tocustomers’ lifestyles.It considers a number of potentialinfluences on buying behaviour, including the attitudes, expectations and activities of consumers.The main types of psychographic segmentation are: lifestyle (different lifestyle patterns), Activities, Interests and Opinions (AIO).

Purpose of visit classification enables Tourism Australia to identify the nature of its visitor base and to plan activities accordingly. It also enables the identification of geographical/seasonal variations in tourism by purpose.

In accordance with the case of analysing the segment markets of Tourism Australia, after the reading, I found that they segment their potential tourist market mainly on the basis of ‘Interests’. The following are the various sub-segments and niche markets classified:

2.1 Interests (Trip Segmentation or Activity Segmentation)
2.1.1. Backpacker Tourism:

‘International backpacker visitation has continued to increase by approximately 3% per year since 2000 to reach 566,000 visitors. There were 500,000 domestic backpackers in 2007?. (Backpacker Snapshot, 2009)

‘Spending more time in Australia, these travellers tend to explore considerably more of the country. Many backpackers participate in working holidays enabling them to stay longer in the country ‘(Tourism Australia Corporate, 2009).

2.1.2. Education Tourism:

An education tourism visitor can be associated as an international traveller whose main reason for coming to Australia is education and length of stay is less than twelve months.

This is a very attractive segment that was put forward by Tourism Australia in collaboration with tourism boards of other territories in the country, since Australia is one amongst the leading education grounds for many international students.

2.1.3 Taste and Try:

Travellers coming into Australia as “learners” are inexperienced travellers attracted to “trendy” well known destinations in and around Australia, like Melbourne, Sydney, Perth and Brisbane. ‘They highly depend on recommendations from experienced travellers, usually visit destinations with numerous attractions; they look out for sun, sea, sand and nightlife. The top travellers of destination motivation for the Taste & Try segment include: friends who have visited Australia and its tourist attractions and also to visit family who live at the destination’ (Australian Tourism Commission Report).

In 2006 the International and National Visitor Surveys undertook a survey specifically for Food and Wine Visitors. This survey probed awareness of Australia as a gourmet culinary destination.

“Food and wine visitors aredefined as any holiday or leisure traveller who stated that one of their reasons for taking the trip was to experience Australia’s food or wine”(Tourism Research Australia International and National Visitor Surveys, 2007).
2.1.4: Roots- Exploring the heritage

Travellers under this segment travel to places that they feel a connection to, through heritage. Travelling may include with or to visit friends and family. Most travellers under this segment show keen interest in to learn the local languages and are very concerned about various threats that the particular destination or country as a whole faces.

2.1.5: Adventure Tourism:

The sub- segment of Adventure Tourism has helped Tourism Australia to grasp a whole lot of travellers to come to the country and indulge in the various adventure sports and activities, which bring significant gains to regional and national economies.

According to the BTR International Visitor Survey, 2003, it was found that, nearly 2.2 million international travellers undertook adventure activities and spent 77.5 million nights in Australia in the year 2003. These travellers spent an estimated $6.7 billion in 2003 in Australia, accounting for 60 per cent of total expenditure by all international travellers.

2.1.6 Business Tourism:

Business tourists spend more money per night than holiday visitors. Their main mode of transport is air and car hire resulting in high-yield for the car hire industry and the airlines. These visitors provide improved business communication, and help to promote Australian products and services overseas. This in turn generates additional income and employment within Australia.

A research conducted by Tourism Australia, 2004, stated that business tourism is a very important high yield sector of the tourism industry. In 2003, visitors who travelled mainly for business purposes spent $11 billion in Australia, accounting for 17 per cent of all tourism expenditure in that year. Hence the segment proved vital and very fruitful to the organization and the destination (Source: Tourism Research Australia International and National Visitor Surveys, 2007).

2.1.7 Indigenous Tourism:

“Indigenous tourism is defined as participating in an activity that gives Indigenous people the chance to tell their story, in their way, sharing cultural insights, traditional practices and contemporary concerns with non-indigenous Australians and international visitors” (Robertson-Friend, 2003).

In 2003, about 5 per cent (214 000) of all international visitors visited an indigenous community and nine per cent (411 000) of international visitors experienced the Indigenous arts and crafts and cultural displays during their stay (Australia Tourism Research Report Volume 6 Number 1, 2004). The rise in the number of visitors visiting the country and looking for indigenous tourism is because of the appropriate segmentation and the marketing the specific program to the right target markets.

2.1.10 Cruise Tourism:

Larry Dwyer and Peter Forsyth state that Cruise Tourism is one of the major growth areas of world tourism (Dwyer and Forsyth, cited in Peisley, 1992; Hobson, 1993; Cruise Lines International Association, 1995).

“Cruise tourism has been identified as a key growth area within inbound and domestic tourism and Tourism Australia has increased its focus on this market segment. Cruise shipping as a segment, proved beneficial to the board.

A study conducted by Cruise Down Under, 2006 revealed that the total income generated by the cruise shipping industry in Australia was approximately $438.8 million in 2005/06 compared to $228.1 million in 2004/05, including direct expenditure of approximately $256.6 million” (Tourism Australia, 2009- Markets)

Limitations of segmenting the tourist market according to interests are that participation in a specific activity is a sound basis for defining a segment. It could simply be one of the several activities that constitute the overall destination experience. For example; the fact that 80% of tourists say they engaged in surfing at a destination does not mean that they see themselves as a special interest group of ‘surfers’.

Conclusion

Tourism Australia has a number of resources and opportunities available to assist tourism industry operators target leisure, business events and niche markets. Tourism Australia segments its market into all the four bases of segmentations that usually all marketers do.

It uses geographical- focuses on domestic tourists and visitors as well as international tourists and visitors. Tourism Australia runs special marketing programmes that focus entirely on domestic tourism, which can be interpreted as to how TA has segmented its market in and out of the country.

Demographic Segmentation is also used in their STP plan but, doesn’t yield high results as compared to the rest. Demographic segmentation doesn’t keenly concentrate on what a visitor is looking at, but just segments the market on actual figures like age, gender, incomes, family and its lifecycle, etc,.

The best and most efficient segment that Tourism Australia derived and uses it to its fullest is the Psychographic segmentation, with dedicated significance on ‘interests’ of the visitor. Various segments like, ecotourism, backpacker tourism, cruise tourism, spa and wellness tourism, beach tourism, golf tourism, adventure tourism and other such sub segments and types of tourism were created keeping in mind the previous year’s data and facts. On the basis of research and results, these segments were derived at which proved to be beneficial to the Australian Tourism Board in terms of monetary benefits as well as benefits to the visitor, where in they can easily identify their preferred segment.

Behavioural segmentation is also observed in the marketing and segmenting of the destination by Tourism Australia, with focus on social-status and occasions. Many new segments are created time after time, keeping occasions in mind, like, special tour packages on Boxing Day, Christmas and New Years, and also a special program that is dedicated to the aborigines of the continent Island.

After studying the bases of segmentation that Tourism Australia has put into practice and relating it to the past results, facts, figures and the various research’s that are undertaken to study how beneficial the whole segmentation process has been, it is quite a happy news for the Australian Tourism Board as well as for the Tourism Research Australia Organization.

the phenomenon arising from temporary visits or stay away from home outside the normal place of residence for any reason other than furthering an occupation remunerated from the place visited

The main activities of the tourism and hospitality industry are to help the people for their best comfort and entertainment in terms of service and extra facilities. The best service and quality can provide some extra brand equity for the organization. Airlines,hotels,travel industry all are hospitality and tourism related industry those are always looking forward for how they can provide the best service quality and flexibility for their target market.

Lickerish and Jenkins credit the sustained growth of tourism to the growth in disposable income and paid holiday; it is now the one of the fastest growing industries in the world. The world Tourism Industry expects international tourist arrivals worldwide to rise from 456m in 1990 to 660m in 2000 and 937m in 2010.(World Tourism Organization(WTO)1986).

1.1 Company Background

Radisson is one of the world’s leading global hotel brands. It delivers vibrant, contemporary and engaging hospitality that is characterized by its unique Yes I Can!SM service philosophy. First-class, full-service hotels with a range of World of Radisson features that have been created specifically to be empathetic to the challenges of modern travel, including its 100% Guest Satisfaction Guarantee.

Worldwide Portfolio

Radisson has a strong worldwide portfolio and continues to grow with a focus on adding key hotels in major cities, airport gateways, leisure destinations and other important locations. Radisson currently has over 430 hotels operating throughout the world with 103 contracted properties under development.

Radisson is expanding as a powerful, globally consistent, full-service hotel brand, offering vibrant, contemporary and engaging hospitality that is defined by its distinctive Yes I Can! service philosophy. All of our hotels and resorts offer a range of World of Radisson features that are empathetic to the challenges of modern travel.

Expanding global presence

Radisson continues to expand its presence in key destinations in The Americas, Asia Pacific and Europe, the Middle East and Africa, reaching new markets and customers in major urban and suburban locations, as well as near airports and business districts around the world.

Yes I Can! training program delivers

As part of its focus on guest satisfaction, Radisson offers one of the hospitality industry’s most dynamic guest service training programs called Yes I Can! This program translates the core of the company’s service philosophy for hospitality excellence to the front-line service employees in Radisson operations worldwide. Celebrating its 20 year milestone in 2007, Yes I Can! has become a central part of the Radisson culture, creating a point of difference for the brand.

Our goal at Radisson is 100% Guest Satisfaction. If you are not satisfied with something, please let one of our staff know during your stay and we’ll make it right or you won’t pay. It’s Guaranteed.

2.0 Marketing concept of Radisson

Carlson Sets New Marketing Strategy for its Radisson Brand: New Guest Room Concepts,

New Restaurant Concepts and New Service Concepts (3rd march 2010).They are thinking about the comprehensive strategy for the the Radisson Hotel. Radisson brand is number one Brand of the worlds leading brand.”Yes I can” strategy leading them to be a strong positioned by delivering very good quality service in hospitality industry. They are operating their business including some new concept for their service. Like new room, new restaurant concept and series of new service and customer loyalty program.

“We believe this is a great time to invest in the hotel business. With Ambition 2015, we have a comprehensive and compelling strategy to build the business,” said Hubert Joly, president and chief executive officer, Carlson.

Ambition 2015 will focus on four priority growth initiatives including(Ambition 2015 strategy):

Expanding Radisson as a powerful, globally consistent first-class brand.

Accelerating the growth of Country Inns & Suites By Carlson in four key markets: United States, Canada, India and Mexico.

Growing Park Inn as a winning mid-scale brand across theatres in key countries.

Continuing to grow in key emerging markets, with greater emphasis on mid-scale.

These strategies will be supported by savings in marketing, sales, distribution and technology. As part of its Ambition 2015 strategy, Carlson Hotels expects to increase the contribution from brand websites to 30 percent of revenue and to double the number of members in its “goldpointsplusSM ” loyalty program.

“With 422 hotels in operation and 90 in the contracted pipeline, Radisson is one of the most well-known and fastest-growing brands in the world, delivering market leading guest satisfaction and achieving superior RevPar penetration internationally,” said Hubert Joly, president and CEO of Carlson. “We have crystallized the success formula for the brand, improved it and are using it as the foundation for its future development.”

Radisson using market differentiates strategy and focus on service uniqueness with high cost. To differentiate their product they are following different kind of strategy for their customer loyalty and providing some extra facilities for their customers.

2.1 Marketing Strategy of Radisson

Under the leadership of its former president, Radisson’s strategy focused on growth and the firm added hotels at the rate of about one hotel every seven days. By 1997, Radisson’s “growth at any cost” strategy left Radisson with a significant diversity in hotel quality and an “unfocused” brand image. Alignment with hotel owners (more than hotel guests) also seemed to cause Radisson’s customer service and hotel management expertise to atrophy.

In 1997 and 1998, Mr. Brian Stage, Radisson’s President, and Ms. Maureen O’Hanlon, Radisson’s Executive Vice President, took several initiatives to drive the organization towards becoming a more customer-focused brand. In their words, they “re-discovered that their primary customers should be the guests — not the owners.” Some of these initiatives included a service guarantee, a guest satisfaction measurement program, an employee satisfaction measurement program, and an information technology initiative. Stage and O’Hanlon were committed to creating the systems and programs that would bring Radisson into the 21-st century as a truly “customer-driven learning organization.” Their goal was to make Radisson the “most trusted and respected brand worldwide.” They were hopeful that these initiatives would make a significant contribution to helping Radisson achieve these goals. Service Quality Performance Metrics

Radisson uses four service quality performance metrics based on room comment cards solicited from hotel guests:

Willingness to return — percent of customers who indicate that they are willing to return.

Percent advocates — percent of customers who indicate a willingness to recommend Radisson Hotels to others.

Percent defectors — percent of customers who indicate that they are unwilling to return.

Percent complaints — ratio of complaints to room nights.

Information systems, under the leadership of Radisson’s Vice President of Knowledge Resources, Mr. Scott Heintzeman, produces a “dashboard” for each hotel that includes these and other more financial measures. The one-page dashboard is Radisson’s “balanced scorecard “for each hotel. These measures are often supplemented with ad hoc marketing research. This paper focuses on the service guarantee initiative, the four strategic service quality performance metrics that support the implementation and evaluation of that initiative, and a new measure called “employee motivation and vision” that was found to correlate highly with Radisson’s service quality performance metrics.

RADISSON’S SERVICE GUARANTEE

The Service Guarantees Concept Hart2,3, Hill4, and others5,6 have argued persuasively that service guarantees can help many firms to position themselves in the market by clearly defining their value proposition to customers and employees. Service guarantees also “stress” front-line workers to deliver high-quality service the first time, encourage customers to voice their complaints to the firm, and motivate and enable workers to quickly discover and recover dissatisfied customers. Hays and Hill7 at the University of Minnesota developed a model (Figure 1) to show how service guarantees affect service quality and, ultimately, business performance. In this model, they argue that a strong service guarantee improves customer satisfaction, service quality, and customer loyalty through three intervening variables: Marketing Communications Impact, Employee Motivation and Vision, and Organizational Service Learning. These are defined in the following paragraphs.

Figure 1. Service guarantees and business performance

Marketing communications impact (MCI)

Business performance (BP)

Employee motivation and vision (EMV)

Service guarantee strength (SGS)

Customer satisfaction Service quality Customer loyalty (SQL)

Organizational service learning (OSL)

Marketing Communications Impact (MCI) A strong service guarantee will have both offensive and defensive marketing impact. Offensively, firms can use a service guarantee to proclaim the reliability of their high quality service and thus attract new customers. Defensively, a service guarantee not only enables companies to recover unsatisfied customers but also encourages dissatisfied customers to complain, thus allowing the firm to recover those customers. Employee Motivation and Vision (EMV) – A strong service guarantee motivates employees to fulfil the guarantee and to satisfy customers. The guarantee clearly defines the employee’s job as satisfying customers – not just taking reservations, checking out customers, or cleaning rooms. It can also inspire a new vision for service quality when employees are challenged to really satisfy customers’ true needs. Hill8 quotes one senior European executive who proclaimed that “our service guarantee defines the mission for our firm.” Organizational Service Learning (OSL) – A strong service guarantee can help organizations discover dissatisfied customers and learn from them in order to improve service quality. Organizations with a strong service guarantee will tend learn how to satisfy customers faster than organizations without one. When marketing communications impact (MCI), employee motivation and vision (EMV), and organizational service learning (OSL) are improved, then service quality, customer satisfaction, and customer loyalty (SQL) should also improve. Business performance (BP) will improve as a result of improved SQL.

2.1.1 Guerrilla Marketing

When using social media for marketing it is not about broadcasting – it’s about engaging. The most successful campaign is the one that engages and activates the most people to become the brand’s ambassador.

The Radisson Blu Hotel brand with hotels in over 200 locations world-wide has started such a campaign. It seems to have started mid-May but is reaching its tipping point these days and is spreading fast.

It’s actually a very simple competition. They are giving away “the greatest holiday in the world”, probably inspired by the best job in the word. And the greatest holiday on Earth is 365 free nights at any Radisson Blu hotel in the world that the winner can use over the next five years. All you have to do to participate is signing up and telling the world why you should win.

It’s then up to the users to get as many people as possible to vote for them but each person can vote once every day. The one with the most votes at the end of the competition on July 24th will be the winner of the 365 free nights at any Radisson Blu. Simple and effective. Last Sunday night about 1500 people had signed up and now, on Wednesday, there are about 3000 people competing. And those 3.000 people are now all actively promoting their spot in the competition and the hotel brand at the same time. Not bad!

To encourage people further Radisson has enabled sharing options for twitter, face book and a number of other social networks and lists ideas on how people can promote themselves offline. One important thing is lacking though, which is a badge to put on a blog that automatically updates the ranking and encourages people to vote.

2.1.2 Viral Marketing
Radisson Hotel is providing the Best Online Rate Guarantee for their customers.

Radisson.com, their homepage is customer’s home base for the best savings. they deliver customers best online rates guaranteed. Customers can get the best online rate for their stay and they will get the best rate online – they guarantee it. When customer books their reservation on Radisson.com, they can be confident they have gotten the best rate for their next visit.

How It Works

If you find a rate on another website that is lower than the best rate on Radisson.com – and the rate is for the same date(s), same room type, same number of guests, at the same hotel and same rate terms or restrictions – let them know and they will honour the lower rate AND discount that rate by 25%.

Qualifying Rates

Radisson’s “Best Online Rate Guarantee” applies only to online rates available to the general public. Group rates, corporate rates, wholesale rates, affinity/association rates or rates which are part of a travel package do not qualify.

Radisson Customer Service will verify the rate meets all of the Best Online Rate Guarantee terms and conditions. Once confirmed you will receive the lower rate and 25% discount.

Radisson guarantees that Radisson.com will have the best online rate available to their guests.

3.0 Public Relation Method

March 24th, 2008, Radisson Hotel, “Effective Business Solutions” seminar

On 24th of March, the Bulgarian “Cash” newspaper arranged the “Effective business solutions” seminar in Radisson Hotel. The event was focused on ERP and CRM systems in order to help managers of trading and production companies raise the efficiency of their business processes. The top IT leaders were invited to present their products and Neme schek Bulgaria was one of them. In their exposition, the specialists of Nemetschek Bulgaria emphasized on the simple adaptation of their system ( Customer Center) to the customer’s needs.

Radisson Hotels Reviews Public Relation Prior To Launch

Radisson Hotels is reviewing PR for its main hotels brand and is in the advanced stages of hiring an agency to launch a five-star hotel in Manchester.

PR manager Jacquiline Willers said the company had seen pitches from four agencies and settled on a shortlist of two for the Manchester brief, with local agency Mason Williams and London-based Pineapple PR in contention.

Fillers refused to discuss fees for the two briefs, but said: ‘We have budgets for the Manchester project and for a two-year contract to help the Radisson Edwardian brand. It may be that one gets the Manchester job and the other the wider brief.’

‘At the moment, we’re not looking at other agencies for the two-year contract, but that may change,’ she added.

Radisson Edwardian has previously used Brighter PR for its PR work. The agency is not involved in the current pitch process. Willers said the brief for the Radisson Edwardian Hotel Manchester will involve activity to drive bookings and awareness ahead of its opening in June 2004. The company claims the Manchester hotel will be the first five-star hotel ‘in the centre of the city’.

However, Manchester’s Lowry Hotel – which falls just outside the city centre in neighbouring Salford and accommodated the England football team last weekend for its friendly against Denmark – currently dubs itself the city’s only five-star hotel, sparking speculation of a feud between the two hotels.

But, Rocco Forte Hotels UK marketing director, Murray Thompson, played down talk of a spat, saying the opening of the Radisson in the city would ‘make life easier’ for the Lowry: ‘Manchester is saturated with three- and four-star hotels and it will no longer be just us saying it’s worthwhile to pay for luxury,’ he said.

Radisson SAS Hotel, Dubai Deira Creek, has appointed Stephanie AbouJaoude as its Public Relations and Communications Manager.
The property is an established landmark on the Deira Creek side and was re-branded Radisson SAS this month.

Lebanese-Canadian, AbouJaoude, takes up her new role following three years as Public Relations and Communications Executive at the InterContinental Hotel, Dubai where her main duties involved media relations, advertising and maintaining the corporate identity of the brand.

“Stephanie will spearhead all elements of internal and external communications. She will also oversee the property’s marketing programmes,” said Andreas Fluckiger, General Manager, Radisson SAS Hotel, Dubai Deira Creek.

“Her comprehensive knowledge of this property is a real asset to us and she will play an integral part in establishing this hotel under the Radisson SAS brand.”

Radisson SAS Hotel, Dubai Deira Creek has 287 guest-rooms, including 39 suites, 16 food and beverage outlets as well as meeting and events facilities.

3.1 Relationship Marketing

Radisson is part of the Carlson Hotels Worldwide system of hospitality properties which include Regent International Hotels, Radisson Hotels & Resorts, Park Plaza Hotels, Country Inns & Suites By Carlson, and Park Inn hotels. The parent company, Carlson Companies Inc., also owns and operates Radisson Seven Seas Cruises and T.G.I. Friday’s restaurants. A world leader in Relationship Marketing, Carlson maintains a consumer loyalty program known as Gold Points Rewards.

As one of the leading global hospitality companies, Radisson operates, manages and franchises 435 full-service hotels and resorts, representing more than 102,000 guest rooms in 61 countries. From its franchise partners and strategic allies, to every manager and employee at every hotel, the Radisson organization is committed to providing personalized, professional guest service and Genuine Hospitality

With its focus on total guest satisfaction, Radisson employees undergo one of the hospitality industry’s most dynamic guest relations training programs called ‘Yes, I Can!’ This program translates the core of the company’s service philosophy for hospitality excellence to the front-line service employees in Radisson operations worldwide. After more than a decade, ‘Yes, I Can!’ has become a central part of the Radisson culture, creating a point of difference for the brand in the manner with which customers are served.

Radisson hotels are named after the famous French explorer, Pierre Esprit Radisson, who visited many parts of the Upper Midwest and Canada during the 17th century.

Radisson Gold Rewards offers guests the opportunity to earn and redeem Gold Points® within an exclusive network of leading brands. Members who earn Gold Points can redeem them for free night stays, airline miles, luxury cruises, merchandise, meals, and more. In addition to all of Carlson’s brands, other major national partners in the Gold Points Rewards’ network include Thrifty Car Rental, The Flower Club and FTD.com.

Currently, Gold Points are earned at all Radisson hotels in the United States, Canada, the Caribbean, Mexico, Central and South America. Residents of these countries can earn points at Radisson SAS and Radisson Edwardian hotels in Europe as well. Members of Radisson Gold Rewards earn 1,000 Gold Points per night, up to 10,000 points per stay.

Radisson is continuing to add new hotels and resorts in key international business and leisure destinations. Examples of the company’s highly successful partnerships include the development of Radisson SAS hotels and three other Carlson hotel brands in Europe, the Middle East and Africa, and Radisson Edwardian Hotels in the United Kingdom.

Global presence and expansion into new markets is a key part of Radisson’s heritage. Radisson opened the first American-managed hotel in Moscow and today has several locations throughout Eastern Europe. Radisson’s recent entry into the United Arab Emirates, Lebanon and Saudi Arabia in December 2002, expanded the brand’s global presence to 61 countries.

3.2 Customer Loyalty

At Radisson, they are always looking for ways to give customers that little something extra. That’s why they offer Goldpoints Plus (goldpoints plusSM). It’s the rewards program that’s tailor-made for customers and their needs.

goldpoints plusSM

Free nights

· Enjoy free hotel nights starting at just 15,000 points.

· Combine a few Points + Cash for an Award Night.

Miles

· Exchange your points for miles with over 20 airlines.

Prepaid Cards

· Cash in your points for Visa® or MasterCard® Prepaid Cards.

Express Awards

· Redeem points at the hotel for Express Awards like movies, room upgrades and more.

Make a Donation

· Gift your points to the World Childhood Foundation or to offset your CO2 emissions.

And some more attractive programmes those are really help them to get a loyal customer.

100% Satisfaction

If you aren’t satisfied with something, please let one of our staff know during your stay and we’ll make it right or you won’t pay. It’s guaranteed.

Global Locations

With over 400 Radisson locations worldwide, our doors are always open to you. Ready to greet you with our signature “Yes I Can!”TM service.

Free High-Speed Internet

We don’t just want you to stay with us, we want you to connect with us. That’s why unlimited high speed Internet is free with your stay.

Full Service Restaurant and Room Service

Hungry for satisfaction? You’ll get it when you enjoy a meal in one of our full service restaurants. If you prefer to stay in, help yourself to something from our room service menu!

Business Centers

It’s easy to stay on the job even when you’re traveling. Our business centers are fully upgraded to fit the way you work today.

Pool and Fitness Centers

Spend your downtime shaping up in our modernized fitness centers or take the plunge poolside and stay fit when you’re on the go.

Meeting and Banquet Facilities

Whether you’re planning a business meeting or a family celebration, we’re here to help. With the space and the services that will make your event special in every way.

4.0 Effectiveness of Marketing and Public Relation strategy

Change and innovation is a very big factor for the hospitality and tourism industry. World is changing so fast and technology as well and organizations are bound to follow the all things in terms of their business activity. They need to follow and need to change their marketing or business strategy based on the change of other activities in the market. which is very effective for the brand and for the business as well.

One of the leading brands in the hotel industry is Radisson which is very careful about their target market and their brand image. They are working with their strategy with innovation and change which make their customers loyal and more dependant and trustable.

The marketing strategy for Radisson is really effective in terms of the public relation. Because

They are making their customers more aware about their extra facilities and service quality.

As an example, Carlson announced the global roll out of five new room concepts (march 3,2010)- And Relax, Naturally Cool, New York Mansion, Ocean and Urban. All of the concepts share a vibrant and contemporary design, the use of bold colours and lighting, and a comfortable feeling.

The plan also set up a variety of service concepts covering the key touch points of the guest experience including, for example, Business Class and three-hour laundry. Business Class will offer customers the best available room, breakfast, turn-down service, upgraded bathroom amenities, a daily newspaper and other amenities depending on the market.

Effective Integrated Marketing Strategy

Integration marketing happens when two different, but complementary offers are made in succession, or when a “Unit of Marketing Value” is placed in front of an existing traffic stream. Radisson offers “sleep number” beds in many of their rooms. These beds allow guest to adjust the firmness to their liking. In this case, the integration is that, as a Radisson customer, they are entitled to receive “Free home delivery, setup and removal” OR “$150 worth of accessories” on select Sleep Number beds. The promotion is co-branded to reinforce that being a Radisson client has its special perks and privileges – that they are looking out for customer’s well-being even when they are not staying at their hotel. In fact, they want the experience of sleeping in customers own bed to mimic the experience of sleeping in their bed. Integrated marketing is happening all around the guest all they have to do is look for it.

5.0 Recommendation and conclusion
According to the marketing strategy of Radisson hotel it is clear that their using the differentiation strategy where the cost of the product or service is high in terms of the quality service. To differentiate their brand they are following some unique and a bit costly service for their customers. And they are making loyal customers to provide some extra facilities. There are also following some customer loyalty programs. Like they are using goldpoints plusSM program as a customer loyalty program. Which is includes with Free nights, Miles, Prepaid Cards, Express Awards, Make a Donation.

And some more attractive programmes those are really help them to get a loyal customer.

100% Satisfaction
Global Locations
Free High-Speed Internet
Full Service Restaurant and Room Service
Business Canters
Pool and Fitness Canters
Meeting and Banquet Facilities

So they are getting loyal customers and serving very quality service with some extra facilities and differentiating their brand than others.

But regarding the cost of their service they are losing some price sensitive customers in the market and from their target market in terms of substitute hotels or competitors. So it will be a good strategy to be a bit flexible about the price which can give them some more amounts of loyal customers.

It has won business and customer awards from around the world. Virgin Atlantic stands at the second largest international airline to come under the British Long Haul category. Virgin Atlantic holds a United Kingdom Civil Aviation Authority Type A Operating License, which permits it to carry passengers, cargo, and mail on aircraft with 20 or more seats. It is based out of Crawley, England. Virgin Atlantic operates a fleet of 38 aircrafts: 13 Boeing 747s and 25 Airbus A340, with a pending 6 orders of Airbus A380, and 23 orders of Boeing 787 to be delivered in 2013 and 2011 respectively. Over 9000 people are employed by the company. Virgin Atlantic has been known for it’s dfferent slogans, as shown. in the past: “Mine’s bugger than yours,” “4 Engines 4 Long haul,” “Avoid the Q,” “Keep Discovering – Until You Find The Best,” “No way BA/AA.” Virgin Atlantic not only provides the product and service, but adds its own style, and personality to it, which most corporations lack.

Geographical market

The airline industry is classified into four categories by the Department of Transportation (DOT): International – Plans require 130 or more seats, and usually travel without many limitations destination-wise, and have an annual revenue of one billion or more American Dollars.

National – Airlines with capacities of about 100 – 150 people, with an annual revenue between $100 million and $1 billion;

Regional – Largely only used for short haul flights, these usually constitute of a total revenue less that $100 million;

Cargo – Airlines that primarily deal with transportation of goods, rather than passengers.

PEST Analysis
Political Factors

State owned airlines are particularly affected by these factors. Parts of their business has to be done with consideration regarding routes, free seating for ministers, etc. Private airlines do this as/when it is convenient, and would not go out on a limb. Archaic laws apply on State owned airlines regarding labour regulations, retirement age, etc. which decreases management options due to the strength of the Union, and the controlling of the government. This affects the quality of the service delivery & therefore these airlines have to think of innovative service marketing ideas which overcome their problems, while keeping them in the running against private airlines.

Economic Factors

Business cycles control a large part of the industry. At peaking phases people indulge themselves in travel and fares can be increased. However at economic recession, air travel is considered a luxury, and use of it is often decreased considerably, which leads to minimising business for the airlines, and lower rates.

The terrorist attacks known by their date, September 11, led to a global recession, with the depression of the consumers. The loss of income for airlines led to higher operational costs due to lower demand and higher insurance costs, which increased after the terrorist attacks. This left the industry with little choice but to lay off employees, which increases unemployment, decreases consumer spending, thus decreasing their sales. Even the SARS outbreak in the Far East was a major cause for slump in the airline industry.

Social Factors

The changing travel habits of people have very wide implications for the airline industry. In UK, there are varied income groups, with varied ethnicities. The airlines have to recognize these individuals and should serve them accordingly. The destination, kind of food etc all has to be chosen carefully in accordance with the tastes of their major clientele, while keeping the variety in mind.

Another good example would be the case of South West Airlines which occupies a solid position in the minds of the US air travelers as a reliable and convenient, fun, low fare, and no frills airline. The major element of its success was the augmented marketing mix which it used very effectively. What South West did was it made the environment inside the plane very consumer friendly. The crew neither has any uniform nor does it serve any lavish foods, which indirectly reduces the costs and makes the consumers feel comfortable.

Technological Factors

Internet alone has drastically changed the airline industry. Air Sahara has introduced a service through the internet, wherein the unoccupied seats are auctioned one week prior to the departure, as an example.

Also, most airlines provide many internet based services to its customer such as online ticket booking, updated flight information & handling of customer complaints

THE COMPETITION

As an independent airline, Virgin Atlantic successfully competes on all of its routes with most of the industry’s major national carriers. These include British Airways, bmi british midland, American Airlines, Continental, Delta and United on transatlantic routes; BA and SAA to South Africa; BA, ANA, Cathay Pacific and JAL to the Far East; BA to Delhi.

THE COMPETITORS SALES AND PROFIT TRENDS

The airlines industry is very competitive, although the barriers of entry for new airlines are lower in a market with a lack of government regulation. A deregulated market occurs when a government does not dictate airfares, route networks, and other operational requirements for airlines. Deregulation has produced far greater competition and because of this, average fares tend to drop 20% or more. [4] The competition, combined with the freedom of pricing, limit a new airline from competing at it’s stage, but also acts as a major constraint on profitability for established carriers, which tend to have a higher cost base.

TABLE 1: Top 25 Global Airlines Revenue 2006

Airline Lists

2006 Revenues (Million US)

%

Air France KLM

28,945.00

10.28

Lufthansa

24,903.70

8.85

AMR Corporation

22,563.00

8.02

Japan Airlines System Corporation

18,905.40

6.72

UAL Corporation

17,882.00

6.35

Delta Air Lines, Inc.

17,171.00

6.10

Continental AG

13,128.00

4.66

Northwest Airlines Corporation

12,568.00

4.47

All Nippon Airways Co., Ltd.

11,765.80

4.18

US Airways Group, Inc.

11,557.00

4.11

British Airways Plc

10,654.60

3.79

Qantas Airways

10,272.20

3.65

Singapore Airlines Limited

9,119.30

3.24

Southwest Airlines Co.

9,086.00

3.23

Air Canada Inc

8,934.40

3.17

Korean Air Lines Co., Ltd.

8,328.60

2.96

SAS Group

8,236.90

2.93

Cathay Pacific Airways Limited

7,823.80

2.78

Emirates Group

7,423.20

2.64

Iberia

6,473.80

2.30

Alitalia-Linee Aeree Italiane S.p.A.

5,927.50

2.11

Virgin Group

3,518.10

1.25

TAM S.A.

2,515.50

0.89

Air India

2,060.80

0.73

ExpressJet Holdings, Inc.

1,679.60

0.60

Total

281,443.20

100.00

Source : Datamonitor (www.computerwire.com)

MARKET SHARE:

The Company’s Market Share:

Year
Total passengers carried
Total cumulative

1984

124,711

124,711

1985

245,404

370,115

1986

289,060

659,175

1987

464,196

1,123,371

1988

626,319

1,749,690

1989

619,506

2,369,196

1990

837,136

3,206,332

1991

1,044,760

4,251,092

1992

1,239,011

5,490,103

1993

1,398,834

6,888,937

1994

1,679,403

8,568,340

1995

2,029,624

10,597,964

1996

2,293,802

12,891,766

1997

2,806,538

15,698,304

1998

3,201,795

18,900,099

1999

3,622,402

22,522,501

2000

4,280,513

26,803,014

2001

4,105,115

30,908,129

2002

3,808,687

34,720,689

2003

3,850,578

38,571,267

Source: http://www.virgin-atlantic.com/en/gb/allaboutus/ourstory/forstudents.jsp

Target Markets:

Virgin Atlantic offers very individualized services to their customers, due to their belief in the importance of individuals. Virgin Atlantic has targeted upper class customers who are primarily business passengers traveling on transatlantic routes. Virgin Atlantic realized the opportunity to gain a considerable market share through effective marketing of their “quality, fun, innovative, honest, and caring” airline.

Business travels are often those who travel several times through a year, and often tend to purchase upgraded services, which is beneficial for the airline. On the other hand, leisure travelers are less likely to purchase these premium services as they are usually price sensitive. In times of economic uncertainty or sharp decline in consumer confidence it is expected for the amount of leisure travelers to decline.

The Company’s Sales and Profit Trends:
Y/E April 2003 2004 2005 2006 2007

TURNOVER ?1401m ?1272m ?1630m ?1912m ?2140m

PROFIT ?15.7m ?20.9m ?20.1m ?41.6m ?46.8m

SWOT Analysis
Strengths
Weaknesses

-Brand image

-Increased traffic

-Financial strength

-Declining market share in key markets

-Lack of scale

Opportunities
Threats

-Expanding passenger traffic in Asia

-Increase in trans-pacific cargo

-Partnership with ANA

-Cargo price-fixing investigation

-Rising aviation fuel prices

-Terrorist attacks and scares deter passengers

from flying

Source: Virgin Atlantic Datamonitor

Strengths

Strong brand image

Virgin Atlantic is a part of Richard Branson’s Virgin Group, which has strong brand image, and is known across most of the world.

Increased passenger and cargo traffic

Virgin Atlantic recorded higher passenger and cargo traffic in 2006, as compared to

2005. The number of passengers carried by the company rose by 3.7% to 4.5 million.

The quantity of cargo and mail carried increased by 9.1% to 163,165 tons.

Strong financial position

The company has witnessed strong revenue growth in fiscal 2006. It recorded revenues of ?1,912 million in fiscal 2006, an increase of 17.3% from 2005. The operating profit of the company was ?41.6 million during fiscal year 2006 as compared to ?20.1 million in 2005. Moreover, the operating margin of the company also increased from 1.2% in 2005 to 2.2% in 2006.

Privately Owned

Virgin Atlantic is privately owned; therefore, decisions can made quickly.

Weaknesses

Declining market share in key markets

Despite strong brand image and improved financial performance, Virgin Atlantic’s market share has declined in most of its markets in 2006. Its market share in New York, East Coast, Caribbean, India and China has declined from 25%, 21%, 59%, 23% and 22% in 2005 to 24%, 17%, 57%, 18% and 8%, respectively, in 2006.

Lack of scale

The company operates 27 destinations whereas, its top competitors British Airways and

Thai Airways International operates 148 and 600 destinations worldwide.

Opportunities

Expanding passenger traffic in Asia Pacific

Driven by increased economic activity in emerging Asian countries such as

China and India, demand for air travel to the Asia Pacific is rising. Virgin Atlantic already has significant presence in this region and is well positioned to benefit from increasing air travel to Asia.

Increase in trans-pacific cargo

The outlook for trans-pacific cargo market is positive. During 2006-2009, the market is expected to increase by an average of 7%, an increase from a 4.3% average annual growth recorded during 1999-2004. Because Virgin Atlantic operates Virgin Cargo, a worldwide air cargo business, this will allow opportunity for the company to further strengthen its market position in cargo.

Partnership with ANA

In September 2006, Virgin Atlantic announced that it has teamed up with one of the world’s ten largest airlines, All Nippon Airways (ANA), which allows Virgin Atlantic passengers to fly to Japan on ANA’s domestic services. This new arrangement with ANA would enable the company to offer better service to its customers.

Threats

Cargo price-fixing investigation

The US Justice Department and the executive body of the European Union have launched an investigation into allegations of price-fixing in the air cargo industry in February 2006 and one of the company’s investigated was Virgin Atlantic. If the company is found to have participated in price-fixing, it may have to pay a significant fine and investor confidence could also be impacted.

Rising aviation fuel prices

Due to the rising oil prices globally, the prices of aviation fuel have increased substantially. This could impact Virgin Atlantic’s margins as it is mostly reliant on air freight business.

Terrorist attacks and scares can deter passengers from flying

When terrorist attacks occur, it places fear in potential customers, and can deter individuals from flying.

SEGMENTATION

Virgin Atlantic has two primary segments: Upper Class, and Economy class, with Economy Class segmented further to Premium Class, and Regular Economy, consisting of regular economy fare and coach fares. The premium class includes a separate economy cabin for full fares and option to pay extra for chauffeur driven cars and clubhouse lounges. The Upper Class is generally comprised of males between 35 to 45 years of age and that earn more than $75,000 a year. The Premium Economy is used evenly by business and leisure travelers, usually around 40 years of age.

Marketing mix:
Product

For an airline, a marketing mix must be developed keeping both in-flight services, and ground services in mind, while also considering it as a tangible product, as well as a service.

On the ground, transportation to and from the airport, online bookings, and check in services as well as duty free shopping, and parking options.

In-flight services are most customers’ primary focus. Staff training becomes essential here, to allow customers to feel approached as they would appreciate, in order to to form customer loyalty and satisfaction.

Price

Most airlines use competitive pricing for both economy and business travellers. The ticket fare is divided like so:

Basic fares; subject to availability, class and destination.

Insurance; standardised.

Inland Aviation Travel Tax (IATT); depending on the country intended to travel to.

Passenger Service Fee (PSF); standardised.

Also airlines use seasonal pricing. Tickets are usually more expensive when purchased during peak seasons such as holidays.

Promotion

In the UK advertising consists primarily of TV, press, magazines, outdoor posters and taxi sides, all featuring our distinctive logo. Advertising allows awareness to be raised of current products, their improvements, and new products, as well as appeal to consumers personally. Postal service allows more direct advertising to target markets and consumers, while informing known customers of improvements.

During traditionally low seasons, tactical promotions and price advertising are also used to maximise aircraft capacity.

Virgin Atlantic operates a frequent flyer programme, flying club to encourage loyalty in existing flyers.

Virgin also markets to travel agents, who are the primary distributors of their airline seats. Along with the usual advertisements, the sales team offers various trade incentives, familiarization trips, and educational/social event deals.

Conclusion:

Marketing is, very evidently, the Virgin Antlantic’s key strength. However, the airlines limitations in destinations, is restraining their growth increase. Richard Branson, himself suggested that Virgin Atlantic will be able to reach market-leader reputation if expand from the trans-Atlantic routes, to across the world, while keeping its service, which acts as its key difference between them, and the rest.

Tourism is defined by Burkart & Medlik as: “the phenomenon arising from temporary visits(or stay away from home)outside the normal place of residence for any reason other than furthering an occupation remunerated from the place visited”

Lickorish and Jenkins credit the sustained grouth of tourism to the grouth in disposable income and paid holiday;it is now the one of the fastest growing industries in the world.the world Tourism Industry expects international tourist arrivals worldwide to rise from 456m in 1990 to 660m in 2000 and 937m in 2010.(World Tourism Organization(WTO)1986).

1.1 Company Overview

Radisson is one of the world’s leading global hotel brands. It delivers vibrant, contemporary and engaging hospitality that is characterized by its unique Yes I Can!SMservice philosophy. First-class, full-service hotels with a range of World of Radisson features that have been created specifically to be empathetic to the challenges of modern travel, including its 100% Guest Satisfaction Guarantee.

Worldwide Portfolio

Radisson has a strong worldwide portfolio and continues to grow with a focus on adding key hotels in major cities, airport gateways, leisure destinations and other important locations. Radisson currently has over 430 hotels operating throughout the world with 103 contracted properties under development.

Radisson is expanding as a powerful, globally consistent, full-service hotel brand, offering vibrant, contemporary and engaging hospitality that is defined by its distinctive Yes I Can! service philosophy. All of our hotels and resorts offer a range of World of Radisson features that are empathetic to the challenges of modern travel.

Expanding global presence

Radisson continues to expand its presence in key destinations in The Americas, Asia Pacific and Europe, the Middle East and Africa, reaching new markets and customers in major urban and suburban locations, as well as near airports and business districts around the world.

Yes I Can! training program delivers

As part of its focus on guest satisfaction, Radisson offers one of the hospitality industry’s most dynamic guest service training programs calledYes I Can! This program translates the core of the company’s service philosophy for hospitality excellence to the front-line service employees in Radisson operations worldwide. Celebrating its 20 year milestone in 2007,Yes I Can!has become a central part of the Radisson culture, creating a point of difference for the brand.

Our goal at Radisson is 100% Guest Satisfaction. If you are not satisfied with something, please let one of our staff know during your stay and we’ll make it right or you won’t pay. It’s Guaranteed.

2.0 Concept of Marketing

Carlson Sets New Marketing Strategy for its Radisson Brand: New Guest Room Concepts,

New Restaurant Concepts and New Service Concepts

ORLANDO, Fla. (March 3, 2010) – As part of its Ambition 2015 plan, Carlson today unveiled a comprehensive strategy for its Radisson brand. As one of the world’s leading brands, Radisson is being positioned to deliver vibrant, contemporary and engaging hospitality characterized by the Yes I Can! service philosophy. The positioning is being supported by a series of innovations including new room concepts, new restaurant concepts and a series of new service concepts focused on the guest experience. The strategy for Radisson will entail an investment program of up to USD 1.5 billion in North America, focused on establishing flagship hotels in key U.S. cities and on upgrading the existing portfolio.

It aims to expand its portfolio by at least 50 percent by 2015 to more than 1,500 hotels in operation.

“We believe this is a great time to invest in the hotel business. With Ambition 2015, we have a comprehensive and compelling strategy to build the business,” said Hubert Joly, president and chief executive officer, Carlson.

Ambition 2015 will focus on four priority growth initiatives including:

Expanding Radisson as a powerful, globally consistent first-class brand.
Accelerating the growth of Country Inns & Suites By Carlson in four key markets: United States, Canada, India and Mexico.
Growing Park Inn as a winning mid-scale brand across theaters in key countries.
Continuing to grow in key emerging markets, with greater emphasis on mid-scale.

The strategy entails continuing the growth in key emerging economies such as Brazil, Russia, India and China, where it has gained significant strength. For example, Carlson is the largest and fastest growing international hotel company in India with 79 hotels in operation or contracted at the end of 2009.

These strategies will be supported by investments in marketing, sales, distribution and technology. As part of its Ambition 2015 strategy, Carlson Hotels expects to increase the contribution from brand websites to 30 percent of revenue and to double the number of members in its goldpointsplusSM loyalty program.

“With 422 hotels in operation and 90 in the contracted pipeline, Radisson is one of the most well-known and fastest-growing brands in the world, delivering market leading guest satisfaction and achieving superior RevPar penetration internationally,” said Hubert Joly, president and CEO of Carlson. “We have crystallized the success formula for the brand, improved it and are using it as the foundation for its future development.”

As part of this strategy, Carlson announced the global roll out of five new room concepts – And Relax, Naturally Cool, New York Mansion, Ocean and Urban. All of the concepts share a vibrant and contemporary design, the use of bold colors and lighting, and a comfortable feeling.

The global strategy also includes two new restaurant concepts. Filini will offer an upscale, sophisticated Italian cuisine, while rbg is a bar-and-grill concept in an inviting, contemporary setting.

The strategy also introduces a range of service concepts covering the key touch points of the guest experience including, for example, Business Class and three-hour laundry. Business Class will offer customers the best available room, breakfast, turn-down service, upgraded bathroom amenities, a daily newspaper and other amenities depending on the market.

As part of this strategy, the Radisson brand will be tiered across the upper upscale and upscale segments. Radisson Blu will be applied to the upper upscale segment and Radisson “Green” will be applied to the upscale segment. Both will share the same brand essence – vibrant, contemporary and engaging – the same style and many of the service concepts. The differentiation will primarily be location based – key location in a primary city versus a secondary market. It will typically be reflected in the level of investment that goes into the property.

The strategy will include the implementation of the brand’s new global standard operating procedures, a new quality assurance program and intensive training programs. The strategy will be supported by investments in marketing, sales and distribution as part of the overall Carlson Ambition 2015 plan.

2.1 Marketing Strategy of Radisson

Under the leadership of its former president, Radisson’s strategy focused on growth and the firm added hotels at the rate of about one hotel every seven days. By 1997, Radisson’s “growth at any cost” strategy left Radisson with a significant diversity in hotel quality and an “unfocused” brand image. Alignment with hotel owners (more than hotel guests) also seemed to cause Radisson’s customer service and hotel management expertise to atrophy.

In 1997 and 1998, Mr. Brian Stage, Radisson’s President, and Ms. Maureen O’Hanlon, Radisson’s Executive Vice President, took several initiatives to drive the organization towards becoming a more customer-focused brand. In their words, they “re-discovered that their primary customers should be the guests — not the owners.” Some of these initiatives included a service guarantee, a guest satisfaction measurement program, an employee satisfaction measurement program, and an information technology initiative. Stage and O’Hanlon were committed to creating the systems and programs that would bring Radisson into the 21-st century as a truly “customer-driven learning organization.” Their goal was to make Radisson the “most trusted and respected brand worldwide.” They were hopeful that these initiatives would make a significant contribution to helping Radisson achieve these goals. Service Quality Performance Metrics

Radisson uses four service quality performance metrics based on room comment cards solicited from hotel guests:

Willingness to return — percent of customers who indicate that they are willing to return.

Percent advocates — percent of customers who indicate a willingness to recommend Radisson Hotels to others.

Percent defectors — percent of customers who indicate that they are unwilling to return.

Percent complaints — ratio of complaints to room nights.

Information systems, under the leadership of Radisson’s Vice President of Knowledge Resources, Mr. Scott Heintzeman, produces a “dashboard” for each hotel that includes these and other more financial measures. The one-page dashboard is Radisson’s “balanced scorecard “for each hotel. These measures are often supplemented with ad hoc marketing research. This paper focuses on the service guarantee initiative, the four strategic service quality performance metrics that support the implementation and evaluation of that initiative, and a new measure called “employee motivation and vision” that was found to correlate highly with Radisson’s service quality performance metrics.

RADISSON’S SERVICE GUARANTEE

The Service Guarantees Concept Hart2,3, Hill4, and others5,6 have argued persuasively that service guarantees can help many firms to position themselves in the market by clearly defining their value proposition to customers and employees. Service guarantees also “stress” front-line workers to deliver high-quality service the first time, encourage customers to voice their complaints to the firm, and motivate and enable workers to quickly discover and recover dissatisfied customers. Hays and Hill7 at the University of Minnesota developed a model (Figure 1) to show how service guarantees affect service quality and, ultimately, business performance. In this model, they argue that a strong service guarantee improves customer satisfaction, service quality, and customer loyalty through three intervening variables: Marketing Communications Impact, Employee Motivation and Vision, and Organizational Service Learning. These are defined in the following paragraphs.

Figure 1. Service guarantees and business performance

Marketing communications impact (MCI)

Business performance (BP)

Employee motivation and vision (EMV)

Service guarantee strength (SGS)

Customer satisfaction Service quality Customer loyalty (SQL)

Organizational service learning (OSL)

Marketing Communications Impact (MCI) A strong service guarantee will have both offensive and defensive marketing impact. Offensively, firms can use a service guarantee to proclaim the reliability of their high quality service and thus attract new customers. Defensively, a service guarantee not only enables companies to recover unsatisfied customers but also encourages dissatisfied customers to complain, thus allowing the firm to recover those customers. Employee Motivation and Vision (EMV) – A strong service guarantee motivates employees to fulfil the guarantee and to satisfy customers. The guarantee clearly defines the employee’s job as satisfying customers – not just taking reservations, checking out customers, or cleaning rooms. It can also inspire a new vision for service quality when employees are challenged to really satisfy customers’ true needs. Hill8 quotes one senior European executive who proclaimed that “our service guarantee defines the mission for our firm.” Organizational Service Learning (OSL) – A strong service guarantee can help organizations discover dissatisfied customers and learn from them in order to improve service quality. Organizations with a strong service guarantee will tend learn how to satisfy customers faster than organizations without one. When marketing communications impact (MCI), employee motivation and vision (EMV), and organizational service learning (OSL) are improved, then service quality, customer satisfaction, and customer loyalty (SQL) should also improve. Business performance (BP) will improve as a result of improved SQL.

2.1.1 Guerrilla Marketing

When using social media for marketing it is not about broadcasting – it’s about engaging. The most successful campaign is the one that engages and activates the most people to become the brand’s ambassador.

The Radisson Blu Hotel brand with hotels in over 200 locations world-wide has started such a campaign. It seems to have started mid-May but is reaching its tipping point these days and is spreading fast.

It’s actually a very simple competition. They are giving away”the greatest holiday in the world”, probably inspired by the best job in the word. And the greatest holiday on Earth is 365 free nights at any Radisson Blu hotel in the world that the winner can use over the next five years. All you have to do to participate is signing up and telling the world why you should win.

It’s then up to the users to get as many people as possible to vote for them but each person can vote once every day. The one with the most votes at the end of the competition on July 24th will be the winner of the 365 free nights at any Radisson Blu. Simple and effective. Last Sunday night about 1500 people had signed up and now, on Wednesday, there are about 3000 people competing. And those 3.000 people are now all actively promoting their spot in the competition and the hotel brand at the same time. Not bad!

To encourage people further Radisson has enabled sharing options for twitter, face book and a number of other social networks and lists ideas on how people can promote themselves offline. One important thing is lacking though, which is a badge to put on a blog that automatically updates the ranking and encourages people to vote.

2.1.2 Viral Marketing
Radisson Hotel is providing the Best Online Rate Guarantee for their customers.

Radisson.com, their homepage is customer’s home base for the best savings. they deliver customers best online rates guaranteed.Customers can get the best online rate for their stay and they will get the best rate online – they guarantee it. When customer books their reservation on Radisson.com, they can be confident they have gotten the best rate for their next visit.

HowIt Works

If you find a rate on another website that is lower than the bestrate on Radisson.com – and the rate is for the same date(s), same room type, same number of guests, at the same hotel and same rate termsor restrictions- let them know andthey will honour the lower rate AND discount that rate by 25%.

Qualifying Rates

Radisson’s “Best Online Rate Guarantee” applies only to online rates available to the general public. Group rates, corporate rates, wholesale rates, affinity/association rates or rates which are part of a travel package do not qualify.

Radisson Customer Service will verify the rate meets all of the Best Online Rate Guarantee terms and conditions. Once confirmed you will receive the lower rate and 25% discount.

Radissonguarantees that Radisson.com will have the best online rate available to their guests.

3.0 Public Relation Method

March 24th, 2008, Radisson Hotel, “Effective Business Solutions”seminar

On 24th of March, the Bulgarian “Cash” newspaper arranged the “Effective business solutions” seminar in Radisson Hotel. The event was focused on ERP and CRM systems in order to help managers of trading and production companies raise the efficiency of their business processes. The top IT leaders were invited to present their products and Neme schek Bulgaria was one of them. In their exposition, the specialists of Nemetschek Bulgaria emphasized on the simple adaptation of their system ( Customer Center) to the customer’s needs.

Radisson Hotels Reviews Public Relation Prior To Launch

Radisson Hotels is reviewing PR for its main hotels brand and is in the advanced stages of hiring an agency to launch a five-star hotel in Manchester.

PR manager Jacquiline Willers said the company had seen pitches from four agencies and settled on a shortlist of two for the Manchester brief, with local agency Mason Williams and London-based Pineapple PR in contention.

Willers refused to discuss fees for the two briefs, but said: ‘We have budgets for the Manchester project and for a two-year contract to help the Radisson Edwardian brand. It may be that one gets the Manchester job and the other the wider brief.’

‘At the moment, we’re not looking at other agencies for the two-year contract, but that may change,’ she added.

Radisson Edwardian has previously used Brighter PR for its PR work. The agency is not involved in the current pitch process. Willers said the brief for the Radisson Edwardian Hotel Manchester will involve activity to drive bookings and awareness ahead of its opening in June 2004. The company claims the Manchester hotel will be the first five-star hotel ‘in the centre of the city’.

However, Manchester’s Lowry Hotel – which falls just outside the city centre in neighbouring Salford and accommodated the England football team last weekend for its friendly against Denmark – currently dubs itself the city’s only five-star hotel, sparking speculation of a feud between the two hotels.

But, Rocco Forte Hotels UK marketing director, Murray Thompson, played down talk of a spat, saying the opening of the Radisson in the city would ‘make life easier’ for the Lowry: ‘Manchester is saturated with three- and four-star hotels and it will no longer be just us saying it’s worthwhile to pay for luxury,’ he said.

Radisson SAS Hotel, Dubai Deira Creek, has appointed Stephanie AbouJaoude as its Public Relations and Communications Manager.
The property is an established landmark on the Deira Creekside and was re-branded Radisson SAS this month.

Lebanese-Canadian, AbouJaoude, takes up her new role following three years as Public Relations and Communications Executive at the InterContinental Hotel, Dubai where her main duties involved media relations, advertising and maintaining the corporate identity of the brand.

“Stephanie will spearhead all elements of internal and external communications. She will also oversee the property’s marketing programmes,” said Andreas Fluckiger, General Manager, Radisson SAS Hotel, Dubai Deira Creek.

“Her comprehensive knowledge of this property is a real asset to us and she will play an integral part in establishing this hotel under the Radisson SAS brand.”

Radisson SAS Hotel, Dubai Deira Creek has 287 guest-rooms, including 39 suites, 16 food and beverage outlets as well as meeting and events facilities.

3.1 Relationship Marketing

Radisson is part of the Carlson Hotels Worldwide system of hospitality properties which include Regent International Hotels, Radisson Hotels & Resorts, Park Plaza Hotels, Country Inns & Suites By Carlson, and Park Inn hotels. The parent company, Carlson Companies Inc., also owns and operates Radisson Seven Seas Cruises and T.G.I. Friday’s restaurants. A world leader in Relationship Marketing, Carlson maintains a consumer loyalty program known as Gold Points Rewards.

As one of the leading global hospitality companies, Radisson operates, manages and franchises 435 full-service hotels and resorts, representing more than 102,000 guest rooms in 61 countries. From its franchise partners and strategic allies, to every manager and employee at every hotel, the Radisson organization is committed to providing personalized, professional guest service and Genuine Hospitality

With its focus on total guest satisfaction, Radisson employees undergo one of the hospitality industry’s most dynamic guest relations training programs called’Yes, I Can!’This program translates the core of the company’s service philosophy for hospitality excellence to the front-line service employees in Radisson operations worldwide. After more than a decade,’Yes, I Can!’has become a central part of the Radisson culture, creating a point of difference for the brand in the manner with which customers are served.

Radisson hotels are named after the famous French explorer, Pierre Esprit Radisson, who visited many parts of the Upper Midwest and Canada during the 17th century.

Radisson Gold Rewards offers guests the opportunity to earn and redeem Gold PointsA® within an exclusive network of leading brands. Members who earn Gold Points can redeem them for free night stays, airline miles, luxury cruises, merchandise, meals, and more. In addition to all of Carlson’s brands, other major national partners in the Gold Points Rewards’network include Thrifty Car Rental, The Flower Club and FTD.com.

Currently, Gold Points are earned at all Radisson hotels in the United States, Canada, the Caribbean, Mexico, Central and South America. Residents of these countries can earn points at Radisson SAS and Radisson Edwardian hotels in Europe as well. Members of Radisson Gold Rewards earn 1,000 Gold Points per night, up to 10,000 points per stay.

Radisson is continuing to add new hotels and resorts in key international business and leisure destinations. Examples of the company’s highly successful partnerships include the development of Radisson SAS hotels and three other Carlson hotel brands in Europe, the Middle East and Africa, and Radisson Edwardian Hotels in the United Kingdom.

Global presence and expansion into new markets is a key part of Radisson’s heritage. Radisson opened the first American-managed hotel in Moscow and today has several locations throughout Eastern Europe. Radisson’s recent entry into the United Arab Emirates, Lebanon and Saudi Arabia in December 2002, expanded the brand’s global presence to 61 countries.

3.2 Customer Loyalty

At Radisson, they are always looking for ways to give customers that little something extra. That’s why they offer Goldpoints Plus (goldpoints plusSM). It’s the rewards program that’s tailor-made for customers and their needs.

goldpoints plusSM

Free nights

i‚· Enjoyfree hotel nightsstarting at just 15,000 points.

i‚· Combine a fewPoints + Cashfor an Award Night.

Miles

i‚· Exchange yourpoints for mileswith over 20 airlines.

Prepaid Cards

i‚· Cash in your points for VisaA®or MasterCardA®Prepaid Cards.

Express Awards

i‚· Redeem points at the hotel forExpress Awardslike movies, room upgrades and more.

Make a Donation

i‚· Gift your points to theWorld Childhood Foundationor to offset yourCO2 emissions.

And some more attractive programmes those are really help them to get a loyal customer.

100% Satisfaction

If you aren’t satisfied with something, please let one of our staff know during your stay and we’ll make it right or you won’t pay. It’s guaranteed.

Global Locations

With over 400 Radisson locations worldwide, our doors are always open to you. Ready to greet you with our signature “Yes I Can!”TMservice.

Free High-Speed Internet

We don’t just want you to stay with us, we want you to connect with us. That’s why unlimited high speed Internet is free with your stay.

Full Service Restaurant and Room Service

Hungry for satisfaction? You’ll get it when you enjoy a meal in one of our full service restaurants. If you prefer to stay in, help yourself to something from our room service menu!

Business Centers

It’s easy to stay on the job even when you’re traveling. Our business centers are fully upgraded to fit the way you work today.

Pool and Fitness Centers

Spend your downtime shaping up in our modernized fitness centers or take the plunge poolside and stay fit when you’re on the go.

Meeting and Banquet Facilities

Whether you’re planning a business meeting or a family celebration, we’re here to help. With the space and the services that will make your event special in every way.

4.0 Effectiveness of Marketing and Public Relation strategy

Hotels & Resorts is committed to change and innovation in all key areas including its growth

strategy ,operations, franchising, sales and marketing and technology, to operate with maximum effectiveness in a highly competitive business environment . Technology will undoubtedly continue to develop andRadisson Hotels should continue to progress along with it to stay on top of the

service industry as one of the best global hotelcompanies out there.

ORLANDO, Florida – As part of its Ambition 2015 plan, Carlson today unveiled a comprehensive strategy for its Radisson brand. As one of the world’s leading brands, RadissonA® is being positioned to deliver vibrant, contemporary and engaging hospitality characterized by the Yes I Can! service philosophy. The positioning is being supported by a series of innovations including new room concepts, new restaurant concepts and a series of new service concepts focused on the guest experience. The strategy for Radisson will entail an investment program of up to USD 1.5 billion in North America, focused on establishing flagship hotels in key U.S. cities and on upgrading the existing portfolio.

“With 422 hotels in operation and 90 in the contracted pipeline, Radisson is one of the most well-known and fastest-growing brands in the world, delivering market leading guest satisfaction and achieving superior RevPar penetration internationally,” said Hubert Joly, president and CEO of Carlson. “We have crystallized the success formula for the brand, improved it and are using it as the foundation for its future development.”

As part of this strategy, Carlson announced the global roll out of five new room concepts – And Relax, Naturally Cool, New York Mansion, Ocean and Urban. All of the concepts share a vibrant and contemporary design, the use of bold colors and lighting, and a comfortable feeling.

The global strategy also includes two new restaurant concepts. Filini will offer an upscale, sophisticated Italian cuisine, while rbg is a bar-and-grill concept in an inviting, contemporary setting.

The strategy also introduces a range of service concepts covering the key touch points of the guest experience including, for example, Business Class and three-hour laundry. Business Class will offer customers the best available room, breakfast, turn-down service, upgraded bathroom amenities, a daily newspaper and other amenities depending on the market.

As part of this strategy, the Radisson brand will be tiered across the upper upscale and upscale segments. Radisson Blu will be applied to the upper upscale segment and Radisson “Green” will be applied to the upscale segment. Both will share the same brand essence – vibrant, contemporary and engaging – the same style and many of the service concepts. The differentiation will primarily be location based – key location in a primary city versus a secondary market. It will typically be reflected in the level of investment that goes into the property.

The strategy will include the implementation of the brand’s new global standard operating procedures, a new quality assurance program and intensive training programs. The strategy will be supported by investments in marketing, sales and distribution as part of the overall Carlson Ambition 2015 plan.

“We have seen the power of the brand internationally and the very attractive return from renovating to the new standards,” Joly said. “The brand is poised for significant growth around the world and we expect to grow the portfolio to at least 600 hotels by 2015.”

Media interested in getting insight into Carlson’s new global vision and corporate strategy are invited to view the live webcast of Hubert Joly’s opening keynote atwww.carlsonhotelsmedia.com/ambition2015at 4:30 p.m. ET. A replay of this webcast will be available starting at 8 p.m. ET, Wednesday March 3, 2010.

Effective Integrated Marketing Strategy

Integration marketinghappens when two different, but complementary offers are made in succession, or when a “Unit of Marketing Value” is placed in front of an existing traffic stream. Radisson offers “sleep number” beds in many of their rooms. These beds allow guest to adjust the firmness to their liking. In this case, the integration is that, as a Radisson customer, they are entitled to receive “Free home delivery, setup and removal” OR “$150 worth of accessories” on select Sleep Number beds. The promotion is co-branded to reinforce that being a Radisson client has its special perks and privileges – that they are looking out for customer’s well-being even when they are not staying at their hotel. In fact, they want the experience of sleeping in customers own bed to mimic the experience of sleeping in their bed. Integrated marketing is happening all around the guest all they have to do is look for it.

5.0 Recommendation and conclusion
References

www.radision

http://www.hotel-online.com/News/PR2010_1st/Mar10_RadissonPlans.html

http://www.greatestholiday.radissonblu.com/

http://www.nemetschek.bg/press/index.htm

http://www.discoverfrance.net/Boutique/Travel/Hotels/Chains/Radisson.shtml

SERVICE GUARANTEES AND STRATEGIC SERVICE

QUALITY PERFORMANCE METRICS AT RADISSON

HOTELS WORLDWIDE

Arthur V. Hill

*

, Susan Geurs, Julie M. Hays, George John, David W.

Johnson, and Richard A. Swanson

Case Analysis: “Customer-Driven Learning at Radisson Hotels Worldwide”

ReferencesAl, L. (1993). Service guarantees in outpatient clinics: a case study. Health Care Management Review, 18 (3), 59-65. Cahill, D. J., & Warshawky, R. M. (1995). Beyond competence: unconditional guarantees as a customer-service tool. Journal of Customer Service inMarketingand Management, 1 (3), 67-77. Hart,”

Bibliography

http://travel.yahoo.com/p-hotel-360091-radisson_ambassador_plaza_hotel_and_casino-i

As the tourism is important industry in Hong Kong, more and more travel agencies use different marketing strategies to attract tourists. These travel agencies have like Hong Thai travel and Smart Holiday. Hong Thai Travel is a big organization. It is established in 1966, and now has more than one thousand employees. On the other hand, Smart Holiday is a small organization. It is established in 2007, it’s been only two years since it established. They can be existence together through use different marketing strategies. In this proposal, I will compare Hong Thai travel and Smart Holiday can be existence reasons together. I would focus on Hong Thai and Smart Holiday in Hong Kong to deeply know about the marketing strategies, that’s mean I would like to compare on marketing strategies of Hong Thai and Smart Holiday as well as what factors will affect /attract tourists, what promotion channels will use for tourists and so on.

By using questionnaires, 140 tourists will be asked, in other to investigate which one may attract tourist between Hong Thai and Smart Holiday. Relationship between factors such as package price, travel agency location, service quality and so on. Besides, I will use the data collection method to finish this proposal like communication approach. Beside, sampling method was used by this proposal. I will through interview, telephone, e-mail, internet to study and analysis the marketing strategy of Hong Thai and Smart Holiday. And I would like to use those methods to test what are strategies usefully. In additional, I will be refer to some relevant literature to analysis and study about marketing strategies, such as Medial Tourism Business Plan (Medial Tourism Business Plan 2009) and some reasons lead to consumer to choose travel agency (V. C. S. Heung and R. Chu 2000: 52-59).

Aim

A comparison of Hong Thai Travel and Smart Holiday concerning about the aspects of marketing strategies is conducted and information regarding of that is going to be shown in this project in which some elicitations hopefully can be given out. Besides, because the marketing strategies must be affect travel agencies sales, I have interest to study their marketing strategies.

Background

Hong Kong travel agencies developed very rapidly. In the past, Hong Kong has only large organization of travel agency, such as Wing On Travel agency, Hong Thai travel agency and so on. In some survey showed that tourists are rather well education with 34 percent having post secondary school and another 37 percent university qualification or above. (Eturbonews 2009) More and more people have money to travel because much more peoples have high education and they have some pressure in working. Also, they want to reduce a lot of pressure through a trip. Therefore, the travel industry needs larger. In travel agencies, large organizations of travel agency has use difference preferential price to attract more peoples. Besides, small organization of travel agency has use difference marketing strategy to attract more peoples, therefore, these operation are increasingly successful. Now, Hong Kong has more than 133 travel agencies. It is including small and large organizations of travel agency. In the past ten years, Hong Kong has only 105 travel agencies. It meaning travel industry developed very rapidly.

In some travel agency make a survey in the past twelve months, 37 percent of tourists went to mainland china and Macau, 34 percent of them want to north and northeast Asia that including Taiwan, 15 percent of them went to south and Southeast Asia. (Eturbonews 2009) It meaning china trip, north trip and south trip and so on, it is very popular trips. Also, travel agency can make above trips to attract peoples. It is a selling point for tourists.

In smart holiday travel agency, it is focus on to provide Southeast Asian line for tourist because this line trip has cheap cost price. So, Smart holiday travel agency can establish more and more stores from one to eleven branch stores. Also, south and Southeast Asia line trips have big development areas.

In some travel industry survey, it showed that when Customer chose trips, they are considering reliability of the branch, price, quality, customer services and popularity. So, in this situation, Hong Thai travel agency has above superiority. it is large travel agency which have much more experience in operation. So, it can make tourists reliability and satisfaction.

For the recently tourism, more and more competitors have different marketing strategies to enhance their sales. Such as Hong Thai Travel and Smart Holiday. They are use different methods to attract consumers. In aspect of Hong Thai Travel, it is established in 1966, and now has more employees around thousand. A branch stores was distributed in different location like Kowloon, Hong Kong, New Territories, Macus and China. There are 30 branch stores because Hong Thai Travel is a big organization. In additional, based on Nielsen Media Index Hong Kong Report of 2001 to 2008 show that Hong Thai Travel has maximum tourists in Hong Kong. Hong Thai travel is a full services travel agency. It provides tour packages, cruise planning to single and groups. Hong Thai travel focus on tourists throughout Asia including Hong Kong, Singapore and so on. Hong Thai of Hong Kong is a full service agency, it offer group and single tour packages, cruise packages to a variety of destinations, ticketing and hotels and more. Hong Thai travel offers the best level of travel services and quality of tourism to customer. It offers quality services as a strategy that it leads business attracts more tourists. It includes business and personal travel. Hong Thai travel agency is a one-stop travel department store to offer wide travel products and services. Travel agency managing director Mr.Jackie Wong is widely recognized as one of the leader in travel industry of Hong Kong. Hong Thai motto “we make it for you”, that is Hong Thai’s commitment to continuous to develop better and more innovation and services. In aspect of Smart Holiday, it is established in 2007, which is it’s been only two years since it established. Although Smart Holiday is only two years operation experience, it has been own important position in travel agency. Smart Holiday have 11 branch stores that was distributed in different place such as Kowloon, Hong Kong and New Territories. Hong Thai Travel and Smart Holiday have different selling point. In aspect of Hong Thai Travel, it always provides much more different trip line to consumer. Thus, Tourists have more choice about tourism.

Hong Thai vision has become the customer’s most beloved travel agent. Hong Thai’s have ability to develop new products to their success. They work closely with tourism boards and handling agencies worldwide to bring the newest travel destinations to customers. Hong Thai’s a place of open communication and preferred place to work in. Hong Thai’s provide concrete service guarantees, namely is “department guarantee”, “price guarantee”, and “Itinerary guarantee”. These promises make their customer worry-free since they always book their trips months in advance. They match up potential opportunities and threats from external environment with their strength and weakness in internal competence, forming strategic initiatives in four aspects. It includes financial, customer, internal business process, learning& growth. They use “customer touch point” strategic for the customers.

Its mission is innovative, receptive to changes and socially responsible in offering high quality travel services. In aspect of Smart Holiday, it only focuses on to provide Southeast Asian line for tourist. Because of Smart Holiday is small travel agency, there trip price is cheaper than other big travel agencies. Its mission is providing high quality travel services and cheaper price tourism. Smart holiday enhance network marketing for their successfully. Much smaller travel agency tells us clearly that the market has played an important role and they maintain close contact existing customers and attract new customers. Smart holiday ensure that the company name, logo, message and tone in consistent from a communication tool in other to help strengthen the brand recall. Smart holiday should build a links to their website, blog and social network throughout all their communication channels. And, this makes it easy for interested reader to find out more about their company and what their can provides. Smart holiday use an event marketing tool to manage their event, and promote it via their social networks. Smart holiday can provide some discount incentives in shopping event and customer appreciation.

Above information’s is very important for me. I will refer to above information to compare their marketing strategies, and I would like to know they can be existence reasons together. On the other hand, travel agencies are affected by economic environment factor and social-culture environment factor and so on. For example, a travel agency sale was affected by economic environment badly.

Objectives

Below are the main points of the objectives of this research:

Comparison of 4’p marketing strategy of Hong Thai Travel and Smart Holiday (place, price promotion and product)

Examine the reasons why they join the trip from that channel? (Hong Thai Travel and Smart Holiday)

Examine the relationship between factors (package price, travel agency location, service quality, training between staff etc.)

Study the consumer behavior of Hong Thai Travel and Smart Holiday

Examine the most beloved tourism lines? (in Hong Thai Travel? In Smart Holiday?)

Compare travel services in Hong Thai and Smart Holiday ( customer services quality)

Examine Smart Holiday can be existence reasons( have lower cost? Focus on Southeast Asian line?)

Research Methods

I will use the data collection method to finish this proposal like communication approach. Beside, sampling method was used by this proposal. I use sampling method because it is lower cost. In additional, it has greater accuracy and greater speed.

Questionnaires:

During doing the project, I need to do a research for collecting the data from manager of Hong Thai and Smart Holiday and some tourists. Therefore, I decide to design the questionnaires for research with my focus group. I will discuss some questions about collecting the data which I want to know from interviewers. Also, I need to think that what kinds of format of questionnaire that will help me to analysis the data more easier, for example, yes/no questions or open-ended questions. After decision in the choice in format of questionnaire, I then print out some questionnaire and make an outdoor research by face to face method or by uploading the questionnaires onto the internet for collecting the useful data. 100-200 interviewers will be asked about the questionnaires.

Sampling: First I sample the tourists which are in stores of Hong Thai and Smart Holiday. Those places are many tourist visits that place every day. After that, I sample the manager of Hong Thai and Smart Holiday. When I am doing the survey at that moment, I use convenience sampling the tourists or managers who are male or female.

Internet:

The Internet is the worldwide, publicly accessible network .On internet, I can find lots of information such as news, also many other services including e-mail, file and sharing. About my report, I will find the primary data or the second data though the discussion areas of internet, on discussion area, I can find the specify one such as travel agencies area .On this area, I can leave the message to people who are the travel lover or I can see whether there are tourist in discussion website, waiting for their response within some days.

Sampling: I use the convenience sampling, because I do not know who are on internet, I post the questionnaires on internet and they will doing the survey who are telling me are tour guides. Another way is searching the tourist on the internet forum, I focus on the tourism part to find out the tourist.

Telephone:

Tele-interviewing is simple process of using a telephone interview as a means of collecting data about the interviewees’ experience in tourism and lifestyle. I can get the information about the customers’ satisfaction of tourism though telephone. By telephone, I find friend, family member, colleague, classmates etc. Moreover, different people have different explanations, so, their response to my questions will have different results. Those in formation just only for my reference to more understand tourist and I can gather some primary data about the marketing strategies of Hong Thai and Smart Holiday.

Sampling: I will use the quota sampling, first I may be told to Hong Thai and Smart Holiday to ask about the marketing strategies, To interview tourist who are stay in at home at that moment, ask about the marketing strategies of they think.

E-Mail:

Send the data and questions by e-mail which include my university name, course name, subject title, major questions and our purpose are to tourism hobbyist, leader, tour guides and other relevant persons.

Sampling: I will use the quota sampling, first I may be told to Hong Thai and Smart Holiday to ask about the marketing strategies, I sent e-mail to above travel agencies in Hong Kong because I want to know their marketing strategies. Also I do not expect they are asked the question about marketing strategies.

Interview:

I gather the information by using face to face interview. Interview is a procedure designed to solicit information from a person’s oral responses to oral inquiries.

I will utilize structured interview for gathering the data from interviewees in that research. I am going to prepare the questions that will be asked before going out. During setting questions on questionnaires, I have to analyze the current situations in the Hong Kong so as to make the questions on questionnaires more updated. Besides of this, I also decide whether the dialogue will be recorded or not. As interview need to be allow by managers, I will send them a require letter, wish they will allow me to conduct interview. Or, maybe to interview tourist who are stay in travel agencies at that moment, ask about the marketing strategies of they think.

Project plan

Please refer to other paper

Critical review of relevant literature

The literature review is focused on information search. Referring to that topic, I shall take about travel marketing strategies and choice of Hong Thai and Smart Holiday.

According to Hong Kong General Chamber of Commerce in 2006, HKGCC Judging Panel said that now is Hong Thai Travel has successfully marketing strategies. It shows that Hong Thai Travel has successfully identified a market role and provided “love seeking tour” to specific group of consumers who expect companions. Using by a strong innovative culture, Hong Thai Travel is able to develop new gimmicks continually, adding value to its traditional services, and enhancing its leadership in a highest competitive market. Thus, the company can success is demonstrated by remarkable achievement in Hong Kong (HKGCC 2006).

After that, Tourism Consultative Council suggests that travel agency may encourage innovation in future. Travel has an integral element in marketing strategies. I think that an integral element can use in marketing strategies of Hong Thai Travel and Smart Holiday Travel. If travel agencies has integral element of marketing strategies, it will explore how this will impact areas of manpower and technology in tourism market (the Tourism Consultative Council 2003).

On the other hand, according to Medial Tourism Business Plan information, it shows that Travel agency should offer consumer VIP services and it ensures the highest level of consumer services. Besides of the product strategy, in aspect of promotion strategy, travel agency may hire a professional manager to generate publicity that reinforce their images and attract more consumers by focusing on consumer satisfaction. Thus, it may expect to achieve strong word-of-mouth advertising as consumes share their tourism experience with their close friends. Hence, it may be to minimize advertising cost through this way. Moreover, travel agency can use the internet to promote themselves, they can invest in a best-in-class website that is designed to appeal to the sensibilities of upscale consumers. Other way, travel agency can make limited use of direct mail by creating an extremely high quality mail piece that will be send to the consumers. In aspect of sales strategy, Medial Tourism Business Plan suggests that travel agency may employ professional case manager who will be first point of contact with prospective consumers. Thus, it can encourage up-selling of their VIP services. Above strategies might be use to Hong Thai and Smart holiday (Medial Tourism Business Plan 2009).

In additional, there are many reasons lead to consumer to choose travel agency. A total of 183 Hong Kong consumers were surveyed and were asked to rate 29 attributes that might affect their choice of travel agency for all- inclusive package tours by V. C. S. Heung and R. Chu. The results showed that 29 attributes were affected about choice of travel agency in travel agency reputation. V. C. S. Heung and R. Chu said that Travel agency reputation was rated as the most important attribute in travel agency selection, followed by ‘word-of-mouth communication’ and ‘staff attitude’. V. C. S. Heung and R. Chu suggested that might use seven factors to analysis choice of consumer. Also, Hong Thai and Smart Holiday are use seven factor to analysis choice of travel agency of consumers. It includes namely, Interactive Agent Quality, Formal Communication, Overall Convenience, Pricing, Product Features, and Image. Those factor can use to analysis marketing strategies to consumers (V. C. S. Heung and R. Chu 2000: 52-59).

Besides of above strategies and some information, Susskind, A. M., M. A. Bonn, and C. S. Dev suggested that travel agency must let consumer has trust and trustworthiness of an information sources as well as booking channel (Susskind, A. M., M. A. Bonn, and C. S. Dev 2003: 256-64). Nysveen H suggested that travel agency has on line booking channel, which should be security and trustworthiness. So, Hong Thai Travel has online booking services, which website should be based on added values first of all aimed at the reduction of risk and uncertainty (Nysveen, H. 2003:113-127).

On the other hand, Susan Segal-Horn suggests that manager needs to improve operational efficiency which through programs, such as total quality management, time-based competition, and benchmarks. Also, both smaller and large organization may changed how they performance of the activities, to eliminate efficiency and enhance customer satisfaction and successful the best practice. In order to keep pace with changes in the productivity of border management has accepted the continuous improvement, empowerment, change management, and so-called learning organization. (Susan Segal-Horn 2001: 75).

In additional, Combes, G.C. and Patel said that the internet offers a potentially low-cost Retail distribution channels to reach customers 24 hours a day anywhere in the world. In addition, as the transfer of customer transactions to electronic channels, the detailed data that can be stepped up to collect Targeted advertising and marketing work, and reduce other operating expenses. The Internet has increased the price of access to information and products, so that Clients determine the best treatment, in the online and traditional channels to improve their communication with suppliers. Hence, Hong Thai travel and Smart Holiday is open 24 hours communication channel for their customers. (Combes, G.C. and Patel 2000: 1)

After that, Susan Segal-Horn implies that companies are success that only it can create different strategies, and the need to save the strategic. So, Hong Thai travel and Smart Holiday are must provide greater value to customers or at a lower cost to create a higher value, or both. Arithmetic superior profitability is as follows: to provide greater value, enabling the company to charge higher average unit prices, higher efficiency resulting in lower average unit costs. Lower or higher prices in the cost of time to the creation, production, marketing products and services to them, such as according to customer requirements, can improve the final product assembly and train their employees.( Susan Segal-Horn 2001: 74).

Besides, Shohreh A. Kaynama, PhD and Christine I. Black, suggests that many service industries, travel agents believe the Internet is an opportunities and threats. So, some of the smaller agencies like Smart Holiday Travel Agency will choose to use the internet merely as a medium of communication, in order to promote with their business Static web site or as a way to receive e-mail with the customer. These small establishments Wish to participate in the competition and offer highly specialized travel services to customers and attract customer’s attention. Other traditional travel agencies are in a state of transition. These hybrid organizations also provide individual customers by focusing on Walk in and telephone services, while at the same time through their Web sites to develop automated reservation and booking system. Hence, it can increase company benefits. (Shohreh A. Kaynama, PhD

Christine I. Black, MLS 2000:65).

Medical tourism- the concept of traveling far and wide for better medical treatment is not a novel idea, only the term. The globalization of the health care sector and the massive demand for low cost-high quality treatment in recent times has caught the attention of many developing countries that have the adequate resources and potential to meet these demands. The profitability and the lucrative nature of the medical tourism business has now put this trade, high on the agenda of both the Indian government and the private health care providers.

Today, medical tourism has become a commonplace practice with a large number of people around the world since usual constraints like language, finance, difficulties in global travel and fear of the unknown are no longer acting as barriers to the tourists who seek medical treatment in foreign countries. Countries like India, Singapore, Malaysia etc have developed strategies specifically with the aim of tackling such issues and rendering themselves as the ideal medical tourism destinations.

Although India is emerging as the ‘hot-spot’ medical tourism destinations within the Asia-Pacific and other regions of the world, it seems to be facing tough competition from other big players of this industry who have projected an equally good reputation for themselves and are reaping the benefits of this business. Therefore, it is imperative for India to continuously rethink and reform its marketing strategies to gain competitive advantage and increase its market share in the health care sector.

It is an undisputed fact that medical tourism is a rapidly growing industry and creating inroads into the Indian economy. There are a large number of stake holders in this industry in South East Asia including countries like Singapore and Malaysia. There are various marketing strategies being used for propagating this industry. My endeavor would be to seek the gaps that exist and suggest remedial action.

Being from the medical fraternity and having had the opportunity to treat a number of overseas patients, the concept of medical tourism has generated a great deal of interest in me. I believe that there are some deficiencies in the marketing strategies for health tourism in India that need to be looked into and improvised. The aim of my research would be to propose marketing strategies that would boost the Indian Medical Tourism for the future.

3. Preliminary review of literature

There are three sections of the literature review:-

i) Historical aspects- inception and evolution

ii) Medical tourism in India- the present scenario

iii) Probable concerns and pitfalls of the Indian medical tourism industry.

3.1.1 Historical aspects- Inception and Evolution

The concept of constructing health complexes around hot springs goes back to as old as the Sumerian civilization (circa 4000BC) where health care facilities comprised of grand elevated buildings with flowing pools. The hill tribes of Switzerland of the area presently know as St. Moritz, during the Bronze Age (circa 2000 BC) recognized the benefits of bathing and drinking in iron-rich mineral springs. The discovery of bronze drinking cups used by them in thermal springs in Germany and France possibly signifies health pilgrimages within these cultures.

As per written historical accounts, bathing and healing complexes were erected around therapeutic springs in Mesopotamia, India, Greece and China. The concept of medical tourism emanated as trips to sacred baths and hot springs. However, it is the Greeks who have to be given the credit for laying the foundations for medical tourism networks.

3.1.2 Greek medical tourism.

Asclepius was considered to be the god of medicine according to Greek mythology. In his honor, Asclepian healing temples had been constructed throughout Greece by the 4th Century BC. These temples were established near the mineral springs which were considered to be the prime “Healthful” Locations. The system of medical tourism during this period was as follows:-

Patients and their attendants came to Asclepia temples seeking treatment for various ailments. At Epidaurus, the port temple, treatment included gymnasia, palaestra (exercise area), bathing springs and a ‘dream’ temple. There was a retinue of priests, caretakers and stretcher carriers who attended to the patients before they were granted final appointment with the mighty priest. Patients made sacrificial offerings according to their status- the poor left shoes; Alexander the Great left his breastplate.

3.1.3 Roman Medical Tourism

The hallmark of ancient Roman medical tourism centered around hot water baths called Thermae. These centers of medical treatment were posh establishments. Some of these centers comprised of art galleries conference halls, theatres and sometimes sport stadia. Because of the active trade with Asia, the Roman baths augmented medical tourism activities like Chinese medicine, Ayurvedic massage and various aspects of Buddhist spiritual healing at some Roman Thermae.

3.1.4 Japanese Medical Tourism-Onsen.

ONSEN means hot mineral springs in Japanese. Medical tourism in Japan centered around these hot mineral springs which were enriched by surrounding volcanic soil. It attracted a variety of people including hunters, fishermen, farmers and warriors. It was believed that these mineral springs were effective in alleviating pain, healing wounds and recuperation. A thousand years later, this form of medical tourism in Japan is still an ongoing phenomenon.

3.1.5 Indian Medical Tourism.

India has been the home ground of alternative system of medicine for the past 5000 years. Aspects of medical tourism include yoga, eastern cultural, spiritual and medicinal compilation with meditation thrown in. India has been a Mecca for alternative medicine practitioners. A new boost was given to health tourism in the 1960’s with the “New Age” movement in the US. This New Age movement seeks “Universal Truth” and the attainment of the highest individual human potential and is characterized by an individual approach to spiritual practices and philosophies and the rejection of religious doctrine and dogma. With this movement, India had once again become the most sought after destination for thousands of western pilgrims. India’s deep commitment to health care infrastructure and technology furthered the mass influx of medical tourists. India is now one of the world’s oldest medical tourism destinations and has gained popularity over the years over other destinations.

3.1.6 European Medical Tourism.

European medical tourism came into existence with the rediscovery of the Roman baths in the 16th century. With the rediscovery of the Roman baths, Baden Baden , Aachen and most notably Bath, became spa towns. By the 1720’s the spa towns came to be frequented by Aristocrats and gentlemen of leisure from other parts of Europe and even royal patronage. Michel Eyquem de Montaigne, French royal inventor of the essay was the most noteworthy medical tourist of this time. He traversed the continent for 9 years for the cure of his gall bladder problem. He is widely believed to be the father of luxury travel and has helped to write one of the earliest documented spa guides for European tourists.

3.1.7 Health Tourism-New world.

English and Dutch colonists in the 1600’s, constructed log cabins near mineral springs in the newly discovered Americas. By 19th century the American reformists made it a habit to travel to remote Western springs that were rich in medicinal properties.

Today, there are no physical, economical and cultural barriers that separate nations from one another. Coupled with the flattening global economy, ease of international travel and lenient trade policies has opened the vistas of medical tourism destinations around the globe. This has made affordable health care availability to patients who find it difficult or impossible to access such health care facilities in their own countries. Inflated health care costs are driving the patients to medical tourism destinations like Thailand and India for sophisticated procedures at a fraction of the price. Long waiting periods for medical treatment is another factor that is making patients seek treatment abroad. Also, lack of comprehensive medical insurance has attracted thousands of patients to seek treatment abroad.

Medical tourism today has become a global phenomenon with many countries expanding their offerings, including unique tourism opportunities for example South Africa is promoting medical safari in a big way.

3.2. MEDICAL TOURISM IN INDIA – The present scenario

Medical Tourism India or Health Tourism India is a developing concept that has gained tremendous popularity and is attracting people from all over the world for their medical and relaxation needs. The treatments most commonly include knee transplant, cosmetic treatment, dental treatment and cardiac surgery. India is now a favorable medical tourism destination as its infrastructure and technology are at par with USA, UK and Europe, enabling it to provide treatment centers and hospitals that are best in the world with world class facilities. These factors coupled with visits to some of the most alluring and awe-inspiring places of the world have brought about the merging of tourism with medication giving rise to the concept of Medical Tourism.

India is promoting health tourism through depicting the “high-tech healing” of its private healthcare sector. The Indian government is marketing the concept of traveling to India for cheaper and world-class medical facilities to foreigners, with the intention of encouraging the growing Indian medical tourism industry. The policy of the Indian government to merge medical expertise and tourism was announced during the 2003-04 budgets when the finance minister Jaswant Singh propounded India to become a “Global Health Destination”. According to a study conducted by Confederation of Indian Industry (CII), the field is so lucrative that it has the potential to become a $2.3 billion business by 2012. Around 150,000 foreigners visited India for treatment during 2004 and since then, this number has increased by 15% every year.

In recent times, India has emerged as the “Global Health Destination” due to the following advantages:

1. Medical services are provided at almost 30% lower cost than the Western countries and are the cheapest in South-east Asia.

2. India has a large population of doctors and paramedical staff who have good knowledge of spoken English. Therefore language is a major comfort factor that attracts so many foreign tourists to visit for the purpose of medical and health tourism making it easier for overseas patients to relate well to Indian doctors.

3. Indian doctors expertise in various surgical procedures including cardiac surgeries, liver transplants, orthopedic surgeries and other medical treatments.

4. Indian hospitals offer a wide array of high quality treatment procedures comprising of joint replacements, cardiothoracic surgery, dental care, cosmetic treatments and more.

3.3. Probable concerns and pitfalls of Indian medical tourism industry

Review of literature suggests the following concerns that need attention if one has to augment and boost the medical tourism sector.

Concerns of the consumers

Some of the consumers feel that India is unhygienic, polluted and bureaucratic. There is no appropriate accreditation system for the hospitals. Concerns about medical insurance which is underdeveloped, inadequate and has few global players. overseas companies refuse reimbursements. There are also concerns about terrorism, communal unrest and bad connectivity between cities and towns. While some of these concerns are genuine, most of them are mere perceptions.

Concerns of the promoters

From the promoters point of view, the concerns that have emerged revolve around lack of regulations concerning ethics and systemic support, lack of infrastructure deficiencies like electricity, power supply and water, inadequate land reforms, taxation anomalies, funding constraints, implementation lacunae and bureaucratic bottlenecks.

4. RESEARCH QUESTIONS AND OBJECTIVES.

India seems to be an emerging medical tourism destination offering great opportunities in terms of creating new jobs and generating sources of revenue for the Indian economy. It is therefore imperative that the impetus gained so far should not be jeopardized and measures should be adopted to improve the present situation by developing and implementing new strategies.

Research questions

1. What is the present state of Indian medical tourism? – indicating assessment of the present situation.

2. What are the drawbacks or felt impediments of the medical tourism trade sector? – indicating an analytical structuring of the data.

3. What are the ways to improve medical tourism in India through better marketing strategies? – an assessment of the lacunae in the existing marketing strategies.

4. Is the government doing enough to support the medical tourism industry? – an assessment of the governmental leaning towards the industry.

Research objectives

1. To develop pragmatic marketing strategies for health care institutions involved in medical tourism in India.

2. To assess the impact of the government action on the present marketing strategies for foreign patients.

3. To make a marketing plan model for the Health tourism industry in India

5. RESEARCH PLAN

Research perspective

My research approach is based upon the words of the renowned anthropologist Clifford Geertz “man is an animal suspended in webs of significance he himself has spun. I take culture to be these webs, and the analysis of it is not to be an experimental science in search of law but an interpretive one inn search of meaning” (Jewell,S.2010). It therefore forms an interpretivist approach. Since the medical tourism industry is a business and management perspective, any research into this field would fall into the gamut of positivist and interpretivist approaches. My research is essentially a qualitative one since my data collection is mainly secondary in nature. Furthermore, my research is theory forming where in I shall be using the inductive approach to analyze the data. My research also involves the assessment of factors of concern that are related to the health tourism industry of India. It would be my effort to sift out the relevant factors and analyze them from the point of view of developing marketing strategies.

Research design

The approach that best answers my research questions fits into the modified cross sectional design. Here, the research design revolves around the collection of data that is occurring naturally over a designated period. My research design also involves mainly quantitative data and some qualitative data too. My research is based upon observation and document analysis. The cross sectional design also gives information on aspects of who, what, how many, where, and the how and why.

Data collection methods

I shall be collecting my data through analysis of secondary data. I also intend to submit questionnaires to the stakeholders and the major players of the medical tourism in India with the aim of seeking relevant data that would help me in answering my research questions and fulfill my research objectives.

Secondary data: the secondary data would be collected through the following;

Written materials- various websites, websites of homepages of key players, magazines and journals, books and publications. I would also be looking for government publications, laws and acts related to this subject.

Non-written materials- media, television etc.

Most of the data from outside the individual organization will yield information about the medical tourism industry. While, data that is collected from the organizational websites would give information on how things are done within the organization and their modus operandi.

ii. Questionnaires: I will be sending the questionnaires to all the major players in the Indian medical tourism industry. The questionnaires will be used to obtain data for quantitative analysis in order to assess the functioning of various medical tourism facilities in India. The idea of using questionnaires is that a large quantity of data can be made available covering a wide range of database for quantitative analysis. A good amount of objectivity can be incorporated and the results would be of valid and reliable nature.

Analysis of data

Having collected all the qualitative and quantitative data, I would subject it to appropriate analysis and apply relevant statistical tests of significance to ensure that the results are valid, reliable and give a reasonable level of generalisabilty. I aim to deduce the relevant marketing strategies being used and to assess their impact on the industry. I shall be presenting the analyzed data in the form pie diagrams, bar charts and other forms of statistical presentations.

LIMITATIONS
Validity and reliability

Since my data is mainly secondary in nature it is presumed that global players in the me dical tourism industry would not putting false data to propagate their business ventures. From this point of view my data would be valid as well as reliable. As my data is being collected from internet, websites of various stake holders, magazines etc. I am confident that stake holders at this level of global competitiveness would not be putting up false data or information for promotional activities that could jeopardize their reputation. However, the limitations of validity and reliability I foresee to come across would be from the questionnaires I would be sending to the stake holders. The disadvantage I feel I would face using the questionnaires is that some people may not respond, may take a long time for returning back and the response rate cannot be predicted. However despite these limitations, I expect to be able to generate valid information and data for quantitative analysis. I shall be sending these questionnaires to the concerned stakeholders through their homepages and their websites and try and elicit as much response as possible from them.

Generalisabilty

My research design is based upon the study of an industry and does not impinge upon a case study research. All factors being studied can be considered as offshoots of a single industry. For e.g. the legislation aspects would be covering the entire industry and not a single institution or a hospital. Secondly, my aim is to give broad based generalized guide lines on the recommendations for improving medical tourism in India. My attempt therefore would be to collect and analyze data from where generalisabilty can be achieved.

ETHICAL CONSIDERATIONS

I will abide by the Coventry University BES ethical guidelines. I will conduct my research honestly and present all the data accurately. I will get the low risk approval form signed by my supervisor to get his approval before I begin my research.

I shall take all precaution to ensure and respect the rights and integrity of subjects if any.

I shall treat all the data confidentially and would ensure that it would not be used for any other purpose other than that intended.

Since my data collection is mainly secondary in nature, my research work is considered to be a low risk from the ethical point of view. I shall keep all the raw information on ethics and the data collected for audit purposes.

PLAGIARISM

I will paraphrase; reference and cite the sources used by me, to acknowledge the work of others and avoid any sort of plagiarism.

The hospitality and tourism industry is one of the world’s prevalent industries and also the most fragmented with large number of small business. The contribution of hospitality and tourism industry to GDP can be measured in the terms of the revenue generated by tourists (Bardgett 2000). The industry promotes international understanding and gives support to local handicrafts and cultural activities. It is a very important section of a nation’s economy, particularly in terms of its involvement in the direction of earnings through foreign exchange, production of extra wages and creation of job opportunities. The high flood of foreign tourist traffic has increased demand for certain economic production and distribution activities. The hospitality and tourism industry in today’s date is one of the most diverse, exciting, challenging and important industries in any part of the world. It offers career opportunities that are dynamic in nature.

A very essential quality in this industry is to possess a driving interest towards one’s customer service and a strong sense of professionalism. And not just that what one also needs to know is that, what tourism is, keeping in mind the economic, environmental, social and cultural impacts on it. One needs to know its relationship with other industries, the roles and responsibilities that the organization carries as a whole and as well as of individual staffs.

1.1 Marketing of tourism and hospitality industry

Marketing is a delicate combination of art and science (Mahoney, 2005). It is described by Kotle as a management procedure accountable for recognizing, expecting and pleasing client necessities gainfully.

An enormous variety of misconceptions are rampant about marketing, the most widespread is its misunderstanding next to selling and advertising. If one looks closely these are nothing more, but types of endorsement or promotion and hence being only a part of marketing. Marketing includes of much more, such as product/service development, place, pricing etc. It requires information about those attracted in what you are offering, such as their likes, where they buy and their limits of expenditure.

1.2 SWOT/ TOWS Analysis

Another important aspect that follows strategic formulation is the evaluation of the adopted measures and one of the best ways to do so is by using both SWOT followed by the TOWS analysis. TOWS Analysis is a modified form of SWOT which is used as a standard business analytical tool. The alphabets in both TOWS and SWOT are representation of the words Strengths, Weaknesses, Opportunities and Threats.

The analysis of the external environment (threats and opportunities), and internal environment (weaknesses and strengths),can help one realise beneficial techniques that can be made use of by the entire organization, a department or a team. Apart from this, SWOT/TOWS analysis can also be used to come up with a course of action, a marketing campaign, or even evaluate ones skills and experiences. (Warnell, 1995)

Identifying Strategic Options: As mentioned earlier SWOT or TOWS analysis helps to draw a better judgement of the strategic choices that are present and since “strategy” is the art of determining how one can “win” in business; it is a very important step in the evaluation of any organization or industry.

This process of evaluation helps us find answers to questions that further help us explore our strengths, weaknesses, opportunities and threats.

Strategic Discussion

Through the use of marketing strategy an organization can concentrate its limited resources in the best manner possible so as to increase the profits and be at an advantage as compared to the other organizations. The main goal behind every marketing strategy should be customer satisfaction. The selected marketing strategies are dependent on a variety of components, such as quality, innovation, brand building, marketing expansion, focus, product development, social responsibility, etc.

On similar grounds if we talk about Ryanair we can very well see that how the airline completely stands out as a special business from the point of view of the corporate culture it follows. Despite of being an airline it earns through the sale of complimentary products and services that it offers it customers on and off the plane. The company is well liked by its customers for its low cost and admired by its employees for the high salary it gives them. So hence alongside pleasing its customers which is very essential for any business it is also focusing on keeping its staff happy, content and loyal which is an equally important strategy very well thought of. Apart from that the airline makes use of secondary airports rather than primary ones which in turn helps in reducing the expenditure costs leading to higher benefit or profit margins.
And hence it can be seen that the chosen organization is doing very well as far as selection and implementation of its marketing strategies is concerned. This comment can be substantiated by the results of PEST analysis and SWOT/TOWS analysis.
PEST analysis of Ryanair
SWOT /TOWS ANALYSIS FOR RYAN AIR
Strengths
Weaknesses

Low airport charges

High service performance

A uniform fleet: low maintenance cost

Poor customer service

Long distance between airports and destinations.

Poor relationship with staffs

Opportunities
Threats

Credit crunch: People switch to low cost airlines

More countries joining Schengen States

Depreciation of US dollars: planes are now cheaper

Customers are price sensitive

Increase in oil prices

Other airlines are reducing costs

Increase in air traffic control charges

Growth of other substitutes

TOWS MATRIX
(Weihrich 1982)

Internal Elements

Organisational strengths

Organisational weaknesses

Strategic options

Strategic options

External Elements

Environmental opportunities (and risks)

SO

S2 + O2

Routes expansion

S3 + O3

Order new planes

WO

W3 + O1

Jobs security for staffs

Environmental threats

ST

S1 + T1

Continue to cut fares

S2 + T3, T5

Increase frequency of popular routes

WT

W1, W3 + T3

Focus on staff training

W2 + T5

Reduce cost of airport transfers

From both of the above shown methods of evaluations it can be seen that credit crunch which generally considered as a big threat is grabbed as a seemingly big opportunity by Ryanair, for it attracts its customers by the focus it keeps on the ‘reduced cost price’. And this as can be seen is used by Ryanair as a mean to earn profit.
The SWOT table above gives us a brief yet a very indepth summary of not just the internal but also the external analysis of the airlines with highlights of the firm’s strengths and weaknesses so as opportunities and threats. Based on SWOT, a number of strategic options can be suggested to Ryanair in the form of a TOWS matrix, such as route expansion, ordering new planes and hence increasing frequency of popular routes, focusing on the staff training, which in turn will act towards attracting more customers, offering its staff job security, it can go on further in reducing its prices(which has so far really worked wonder for the airlines).
Hence through our evaluations we can see that no doubt Ryanair seems to be doing wondrous work as far as marketing strategies are concerned but there are still a lot many more ways in which it can increase the overall turnover even more, such is the wonder of using apt and multiple marketing strategies.
3.0 Implementation of a strategy using tactics

The concept of the marketing is based on the premise that the firms should determine consumer wants and needs before designing products and services. Hospitality and tourism industry brings together the latest developments in the global operations using contemporary management principles (Borden, 2001).

3.1 Marketing Strategy

The marketing strategy, ought to be viewed as a cover up of support planned to be a magnet as well as provide the customer or visitor (Naik, 2003). There are various types of strategies that come into play such as competitive strategy, market and resource based strategy, quality and innovation, growth strategies. It is now necessary that one of these have to be used at a time but generally combinations of these are used to achieve optimum results.

3.1.1 External Mix – It consists of the 7P’s as well as the external environment. The marketing mix can be controlled by the firm whereas the external environment cannot be. Every industry tries to develop marketing strategies utilizing marketing mix that will establish sustainable competitive advantages leading to long term growth and profitability (Brian, 2003; Zeithaml, Bitner, & Gremler, 2003).

Product: The product of the marketing mix includes the tangible goods and all of the services that accompany that good to produce the final service or product. More than products it is the various services that make the industry stand ahead of others.

Talking about Ryanair, it is doing seemingly well as far as the ‘product ‘ aspect is concerned, for its air service and hospitality are no doubt loved by the customers due to the low cost price and well trained and well paid staff.

Price: price is the value placed on the service or a product. The tourism and hospitality sector should establish their pricing based on the companies objectives and the target market. One cannot have high fee structures for low-fare airlines. Secondly it is very important to base the prices on the complete cost of production, delivering, promoting as well as managing the services provided. Price doesn’t comprise of only the tangible benefits but also the intangible benefits like satisfaction.

Ryanair seems to be doing really well as far as the price of its service is concerned for its customer no doubt love the airlines for it low air fare prices.

Place: This aspect of the strategy includes the distribution and logistics of producing a product or service and making it available to the final customer. The location of the hotels, restaurants, etc is determined by considering the cost of the resources such as labor, raw material and real estate. In addition it is important to have access to proper transportation. So therefore the first and the most important element to be considered is the location of the hotel or the restaurant. Places away from the central city must be avoided as they would not attract tourists who would want to explore the main city/ town area.

The place aspect here could not be incorporated as this is an airline that we are talking about, but still we can for sure bring to light the cost expenditure that the airline is saving by the use of secondary airports rather than the use of the main or primary ones.

Promotion: It provides customers with precise and apt information to assist them decide whether to visit. It represents the various aspects of marketing communication, that is, the communication the information about the product with the goal to generate a positive customer response. The information provided by the company should be of significance and sensible use to the likely or existing guest and also precise because only satisfied customer would want to come again and use the same services.

People: This is the fifth P of the marketing mix. It is essential that one should have a good, educated and friendly employees. For an organization to have a winning edge over others it is very essential that it recruits the right staff and trains them appropriately for the delivery of the services. Based on the interactions with employs the consumers make opinions and deliver perceptions of the service that was provided to them. Hence it is of utmost importance that the staff should have apt interpersonal skills, attitude, and service knowledge to provide the best service to the consumers who are paying for it. Thus it makes it imperative to have a highly qualified staff to add that extra special touch to the services so that customers who comes once, comes always.

This, the airline has no doubt very skillfully taken care of by training it staff very well apart from paying it well too.

Process: It constitutes of the schemes used to aid the organization in the process of service deliverance. Timely and excellent quality services are not the only ingredient but the process behind the making of these services is also of importance. Both hospitality and tourism industry have behind the scenes services like kitchens, water boilers, air handling units, maintenance departments, etc. This should be ensured that a customer never come to know about the smooth or ruff running of the process. Same and equivalent services should be provided at all times.

These the airline could think of improving on as far as the benefits and services offered by the airlines to its consumers both on and off the flight.

Physical Evidence: this again is a component which gives the consumers the opportunity to make judgments about the organization. This no doubt is an essential component of the service mix as based on the sight of the service that is being provided a perceptual impact is made on the consumers about the organization and the service being provided. The organizations that claim to be energy efficient should show it to their customer the process they followed to make their building and services environment friendly. When a customer knows the process behind the delivered service they feel more at ease. For example: if a hotel does vermin-composting to make all biodegradable waste into manure, they should take the guest and children on a eco-walk and show them the pit. This will not only make a good name for the organization but also teach people how to conserve environment (Borden, 2001).

This as has been mentioned before too a number of times the airlines has focused on very well by its low cost air tickets and its well trained and well paid staff, skilled staff.
3.2 Interactive Marketing

‘Technology has necessarily altered how companies and their customers communicate, not just online but across other medium’ (Novak & Hoffman, 1997). Consequently interactive thinking needs to be at the heart of all marketing strategy and interactive channels at the heart of all marketing delivery. A company that has developed an easy to use web site with content and appropriate services to its audience is only part-way to achieving successful Internet marketing outcomes (Agrawal, Arjona & Lemmens, 2001)

This concept focuses on the ever changing trends in the field of marketing . The definition that had been given by John Deighton at Harvard, talks about interactive marketing being an ability which facilitates the organization in having one on one interaction with its customers on a continuous basis. The concept is in no way synonymous with the concept of online marketing, although there is debate that internet technology facilitates the process of interactive marketing to a great extent. The organization can with ease keep a record of all the data related to its customers, can have access to its numerous clients and consumers at the click of a mouse and can interact with them on a day to day continuous basis using the speed of the internet.

3.2.1 Objectives for Interactive Marketing Communications

An interactive marketing communications plan usually has three main goals:

(1) Use online and offline connections to steer or draw guests passage to a web site. This method is commonly referred to as traffic building.

(2) To use on-site communications to bring an effectual point to the guest which helps form customer behaviour or achieve a required marketing outcome. The message delivered on site will be based on traditional marketing communications objectives for a company’s products or services.

(3) To mix all communications methods to assist attain marketing objectives by supporting mixed-mode buying. (Novak & Hoffman, 1997).

Ryanair has made use of this strategy by making available to its customers the facility of online booking system, which is not only of convenience to its customers but also greatly reduces the extra cost price as compared to telephone booking. Though it could still go beyond online booking and explore much more options such as customer feedback, special offers, blog site etc on its website by making use of this strategy.
4.0 Conclusion

Customer satisfaction in hospitality and tourism industry is very much prejudiced by the way in which the service is delivered. It is a very important fraction of hospitality and tourism management and can be done successfully and well, with classiness and skill, if one keeps in mind the important essentials of marketing. ,This the airline seems to have taken care of in the most skilled manner possible by making use of the various above mentioned strategies.

Apart from that what also is important is the evaluation of the marketing efforts. A framework for evaluation could help in shaping which essentials are most important to evaluate. It is hardly ever probable or cost efficient to assess all elements. After this it is very important to compare results with one’s objectives and to in the end determine the needed changes in the strategic plan. This in a great way contributes towards improving the efficiency of the strategies that are being used by recognizing the present dissimilarities between real outcomes and anticipated performance. All this in turn will surely help determine the most probable and expected causes for the triumph or crash to achieve the set goals and objectives.

What marketing strategy is best used to counteract the effects of a potential recession on the four star hotel industry in the UK economy?
Contents (Jump to)
Background and Research Aims
Literature Review
Proposed Methodology
Research Strategy and Resources Required
References
Background and Research Aim

Financial Management (2008) reported that, at a recent CIMA forum for financial directors in the UK, the majority of the delegates believed that the global economic crisis has had far reaching impacts, and will most likely cause a recession in the UK in the near future. This is a view which it widely matched by Campaign (2008), which argues that the coming economic downturn is likely to have adverse impacts on all industries in the UK as consumers, and hence businesses, reduce their spending. However, this article does not advocate that businesses simply give up on attracting new custom, arguing that the businesses with the most successful and creative marketing strategies are likely to be the ones who not only survive any potential recession, but also benefit from it.

As such, it is clear that there are two main potential strategies for hotels as the economy begins to contract. They can either choose to contract their operations, focusing on operational efficiency and aiming to cut costs wherever possible, or they can look to use the recession as an opportunity to increase their competitiveness over and above their rivals. This can be achieved via a focus on improved efficiency, costs, quality, or general marketing. However, the argument of Campaign (2008) above tends to indicate that marketing is the main method by which hotels, and businesses in general, can differentiate themselves and maintain revenue and market share in the face of a recession.

Both of these strategies are equally valid, however this piece will aim to focus on the more positive of the two: the use of a marketing strategy to counteract the effects of a recession on the UK hotel industry. The hotel industry in the UK is very broad, ranging from the cheap and basic one and two star hotels, up to the extremely luxurious five star offerings which grace many major destinations. However, the majority of attention tends to focus on these two ends of the spectrum, with little thought being given to strategic development and planning for the mid range hotels such as four star offerings. As such, this piece will concentrate specifically on the four star segment, in order to determine what factors drive consumer demand and business success in this segment, and how these factors can be used to develop a marketing strategy to help four star hotels in the UK handle the impact of a recession.

Literature Review

Many hotels have already started planning for a recession, particularly in the United States, where the economy is in a more advanced stage of recession than the UK. As such, there is value to be obtained from looking at the strategies taken by hotel chains in the US. In particular, Ricca (2008) considers the strategy of the Wyndham Hotel Group, which intends to improve its marketing in order to boost its performance, as well as looking to improve its inventory management and service levels. In addition, the chain will look to boost the use of its loyalty program, helping to grow the company’s brand identity as well as to drive revenue higher in the short term (Ricca, 2008). Another useful study from the literature comes from Barsky and Nash (2008) who reveal that higher end and luxury hotels tend to perform better during a recession when compared to other classes of hotel. This implies that the four stars may be able to improve their performance by aiming to become more exclusive. In addition, Barsky and Nash (2008) argue that hotel should not aim to cut back on prices and services in a recession, but instead they should aggressively market themselves and focus on customer service, in order to be more competitive than others in the market.

Further to this, a major study by O’Neill and Mattila (2006) found that the net operating margin of a hotel tends to be driven most strongly by its average occupancy level, and that the average price per room was less significant. However, this study also showed that the market segment in which the hotel operated; the hotel’s age; any affiliation to a major brand; and a hotel’s size and location also had strong effects on financial performance. This is based on data from the last slowdown in the hotel industry, in 2002, when global terrorism and the dot com crash saw many hotels in trouble. The hotels which performed best in that year were the ones which focused on driving strong occupancy, rather than looking to cut back in size or expenditure. However, O’Neill and Mattila’s (2006) study shows that the mid range hotels were the ones which suffered most in the last slowdown. Looking at the current economic context, Lloyd-Jones (2008) argues that the current state of the economy, combined with the general consensus amongst analysts that a recession is quite likely, means that hotels need to start preparing now. As such, Lloyd-Jones (2008) recommends that property managers should look to use the full range of their marketing strategy, right across the 7Ps, to achieve the most profitable balance between occupancy levels and room rates.

Proposed Methodology

Unfortunately, given the uncertain nature of the economy, and the fact that no one can accurately predict the nature and severity of any potential recession, it is difficult to be prescriptive about the ideal strategy for a hotel to take to mitigate the effects of said recession. As such, this piece will arguably need to take an approach more in line with contingency theory, where it can make specific recommendations based on the circumstances of individual hotels. This implies that the main methodology should be to use interviews with hotels who are preparing for a potential downturn, as well as those with experience at surviving previous downturns. By determining what strategies, if any, the most successful chains are using to overcome a potential recession, it should be possible to develop a detailed typology of the potential strategic choices hotels can make to deal with economic downturns, and the circumstances in which each strategy is most appropriate.

In order to give this typology academic value, it should be firmly based in an existing academic framework. The framework chosen for this paper is the ‘7Ps’ extended marketing mix. The 7Ps are based on the 4Ps introduced by McCarthy (1960): Product, Price, Promotion and Place. However, the 7Ps extends this to include another three factors. Whilst there is some debate over what these factors should actually be, with various writers proposing People, Processes, Physical Layout, Provision of Service, and Physical Evidence; this piece will focus on the three determined by Booms and Bitners: People, Processes and Physical Layout (Kotler and Keller, 2005). This 7P framework will be used to construct the typology, and also to drive the interviews.

The interviews will be semi structured interviews, conducted with some senior members of staff from a wide selection of four star hotels throughout the UK. Semi structured interviews have been chosen because they will allow the interviewer to investigate the desired range of topics, whilst also giving the interviewee the chance to provide additional details or to clarify certain points. The main themes for the semi structured interview will be:

To determine whether the interviewee has worked at a hotel during a previous recession and the steps they took to overcome that recession.
To determine what steps, if any, have been taken to prepare for a potential coming UK recession.
To determine the extent to which these steps are marketing focused.
To determine which of the 7Ps the interviewee deems most important in using marketing to overcome the effects of a recession.
Research Strategy and Resources Required

In order to fully ground the typology in the theoretical framework, it will be necessary to obtain a full understanding of the 7Ps framework and its application to hotel marketing. This will be achieved via a complete review of the literature around marketing and the hotel industry. As such, it will be necessary to spend a significant amount of time using libraries and online resources to review a wide range of literature on the subject. This research should also involve a detailed study of the literature around the effects of a recession on consumer demand, and strategies which businesses in general can use to handle a recession. This will be of use in helping to validate the potential strategies which emerge from the interviews, and generally in helping to direct the interviews.

Ideally, the interviews will all be conducted via the telephone. This will save on travel costs and time, as well as making the process run smoother. Initially, a large number of four star hotels, around fifty, will be contacted by phone or e-mail, to enquire about the possibility of interviewing senior staff. This will hopefully allow for at least ten interviews with senior staff members across the UK. Once agreement has been obtained, the relevant staff members will be contacted to arrange an appropriate time, and length of time, for the interview. It is expected that this will simply require a telephone and a quiet room where the interviewer is unlikely to be disturbed. A recording device will also be useful, to help with transcribing the interviews later. As the data will be mainly qualitative, there will be little need for any statistical analysis tools, and an appropriate research paradigm will be selected as needed. All interviewees will be informed that the interview is being recorded, but all respondents will be guaranteed complete anonymity.

References
Barsky, J. and Nash, L. (2008) Are luxury hotels recession-proof? Hotel & Motel Management; Vol. 223, Issue 10, p. 14.
Campaign (2008) Creativity won’t lose its value, even in recession. Campaign; Issue 16, p. 20.
Financial Management (2008) UK FDs braced for downturn. Financial Management; June 2008, p. 6.
Lloyd-Jones, A. R. (2008) The Prognosis for Hotel Occupancy and Average Rate in a Slowing Economy. Real Estate Finance Journal; Vol. 24, Issue 1, p. 29-33.
McCarthy E. J. (1960) Basic Marketing: A Managerial Approach. Homewood IL: Irwin.
O’Neill, J. W. and Mattila, A. S. (2006) Strategic Hotel Development and Positioning. Cornell Hotel & Restaurant Administration Quarterly; Vol. 47, Issue 2, p. 146-154.
Ricca, S. (2008) Wyndham: Recession strategies in place. Hotel & Motel Management; Vol. 223, Issue 10, p. 1-62.

A hotel’s positioning is a crucial determinant in developing its subsequent marketing strategies. Incorrect hotel positioning will lead to an unclear vision of the hotel’s development and eventually affect the profitability of the hotel (Ransley & Ingram 2004, p.37).

Our hotel has been positioned as a 3.5 start hotel that sits in the middle of the competition. This is a very strategic approach for our hotel to proceed with as it allows us to target upper-end of the market since our hotel has the resource and capability to do so and simultaneously attract other markets segments such as leisure and family holiday makers since our price and products are very competitive compared to other hotels in the same category.

Hotel’s targeted market segments:

Corporate

Our hotel will continue to set company executives and business travellers as our priority of focus, since this market segment has always been a major proportion of the hotel’s business in terms of the number of rooms sold and incomes from the room sales. This market segment would also bring additional revenue to the hotel such as onsite dinning and purchase of other facilities. Therefore, meeting, business and conference related facilities needs to be developed to meet these customers’ needs.

Leisure

The city which our hotel is suited in is a destination of family and leisure vacations and our hotel’s location itself imposes a unique marketing advantage as it is located on the seafront and close to the main shopping centres. Therefore, with the competitive marketing advantage, if we could offer a mix of quality products and services, in fact, all of our hotel’s guest’s rooms are able to accommodate families and other services such as Pub and full service restaurant are integrated to deliver a desired level of convenience. Scale of economy is another critical element that attracts leisure and family holiday makers, however, simply reduce our room rate is not a strategic action to take. Therefore, special discount can be allowed for weekdays bookings in order to maintain the level of room occupancy rates and design various packages for the weekend in order to improve the sales of F&B facilities.

Tour

Tourism has boomed in this region, there are various venues take place in the city throughout the year. This induces a great opportunity to improve our room occupancy rate and ultimately to increase our overall profitability. As tourists have similar features with leisure and family holiday makers in terms of scale of economy and convenience of hotel’s location. Our hotel should come up with different and differentiate packages to suit various venues so that our customers can receive and perceive added values from our hotel. For example, we can assist our customers in booking the tickets for some of venues such as the International Music Festival and International Dance Festival. Internally, we can offer special check-in and check-out channels for group tourists in order to diminish the hassles for them. Additionally, it is essential to have multi-lingual staff at the front desk as we expect group tourists from overseas.

Weddings

Frankly, we cannot host ant weddings prior to our conference facilities in place. Therefore, at this stage, with the available resources and capacities in terms of our rooms and restaurant, we can arrange Honeymoon specials for the new married couples. Once we obtain any honeymoon bookings, we can pre-decorate the rooms with romantic features and ambiences to provide a physical environment which allow those couples to have intimate times together. Additionally, we can also offer discount for new married couples to have dinner in our restaurant with the menu especially designed for the venue.

F&B Services

It would pose a great impact on the operation of our F&B department since the potential resignation of our Head Chef. However, we can take this opportunity to be innovative in terms of turning our restaurant into a completely different concept of dining. Nowadays, F&B services are usually seen as an adhering service to the accommodation. However, the potential ability of F&B services of generating revenue is significant. Therefore, providing we have sufficient financial founds, we can hire another Head Chef who is innovative in culinary arts and develop our restaurant as a dining destination of the region, it is implementable as the local population of over one million in the city ensures the demands of such service if we operate it successfully.

Promotion:

Promotion is a very vital element in the marketing mix (4Ps), as in it builds the hotel’s image and increases the hotel’s public awareness and helps the hotel to reach more markets (Kotler, Bowen & Makens 2006, p.539). Our promotion mix will include a number of media such advertising, hotels’ website and join in marketing consortiums.

Advertising:

Our hotel will still adopt some of the traditional media such as newspaper, travelling magazines and advertising campaign on radio. These media can effectively reach a large group of audience even though involves costs and cannot receive instant response on the effectiveness until the guests actually come to our hotel. For that reason alone, our hotel should use on-line social networks such as Facebook and Twitter. These social networks has increasingly become the primary information sources for people especially for Gen Y’s whose purchasing power has increased dramatically. The social networks allow us nearly zero-cost and can reach to more potential customers.

Hotels website:

Hotel’s website is the first impression we give to our potential guests when they intend to choose us as their hospitality provider. Therefore, a well-established, designed and managed website will effectively promote our hotel to those who are very likely to become our customers.

Marketing consortium:

Since we are an independent hotel and especially with limited budget, we are in a weak position in competing with those international chains in terms of spending money on marketing and promoting themselves. Therefore, join a marketing consortia is a strategic approach at this stage for our hotel. For example, The Leading Hotels of the world, will give us access to its worldwide reservation centre and they have more than 20 offices in the most important cities and this organization also participate in some of the most popular travel exhibitions and trades shows in the pursuit of promoting its members. However, it charges annual membership fees and additional shares for each room they have generated (The Leading Hotels of the World, 2010).

Other marketing related strategies:

Converting guests rooms into Conference facilities:

Currently our hotel does not gain any business from this market segment due to the lack of conference facilities. Functions and banquets are very profitable to conduct as it requires intensive F&B services which can generate significant profits and also impose the potential of room sales and long-term business relationships with the clients. Therefore, the next strategic projection for our hotel is to turn some of rooms into conference facilities (our average room occupancy rate was 20% which means 80% of the room inventory have not been generating profits, and hotel rooms are perishable products). This strategy will require additional financial founds to support, there will be risk involved, but it will be profitable in the long-haul.

Merge to gain additional founds:

Our hotel can merge with another non-hospitality establishment in order to get additional financial support as we are suffering for lack of funds. Although merge is not as fierce as acquisitions, it still poses a certain degree of risks to the management of the hotel in terms of the absolute authority and power over making business decisions (Beamish 2008, p.288).

Budgeting for marketing department:

There are two major areas that require enormous funds to complete.

Projected Budget for Regency Hotel-Marketing Department

Converting rooms into conferences facilities

$1.5 million

Advertising

$2,000 per month

Join marketing Consortia

$200,000 per year

Maintaining Website

$1000 per year

Labour costs

$80,000 per year

A luxury 5-star business hotel, The Oberoi, New Delhi provides over 250 rooms and suites. It features the best of restaurants, a well-equipped business center and a rejuvenating spa experience. In addition the dedicated service makes the hotel popular with business and leisure travelers.

Bearing a blend of traditional and colonial style, the rooms are done up with traditional Indian art and handicrafts and also appointments from Europe. The hotel has taken care to ensure there is no compromise on luxury, so a perfect balance of modern luxury and traditional charm has been achieved. Regally appointed baths and specially prepared toiletries add well to the luxuries offered. Guests can choose rooms with different views, the most popular being pool-view or golf course-view rooms. Amongst the most luxurious, the Kohinoor suite is the most luxurious.

The Oberoi offers perfect rejuvenating experiences for the guests. A 9000 square area of the hotel dedicates itself to make you feel relaxed and get rejuvenated. The Oberoi Spa features a therapy suite, an Ayurveda therapy room and a hydrotherapy room for Vichy shower. For those who love to take laps, the hotel has temperature controlled outdoor swimming pool which allows you to swim in all seasons.

Designed to suit the needs of the class business travelers, the hotel is well-appointed with all requirements for the same. It offers to guests conference rooms with a capacity to accommodate around 300 people, business centers with all modern facilities and other business facilities.

Company Overview

The Oberoi, Mumbai

Located in the city’s prime business and shopping district of Nariman Point, The Oberoi, Mumbai has been completely redesigned to be the ultimate destination for contemporary style and luxury in the city. Overlooking the Arabian Sea, the hotel welcomes you with space and serenity. Luxuriously appointed guestrooms have been meticulously planned with a host of innovative features using the latest technology.

The Oberoi, Mumbai is located on Marine Drive, the famed boulevard along the coast in South Mumbai. An hour’s drive from the airport and only minutes away from the business, financial and entertainment districts, the hotel is also well located to visit the city’s tourist attractions.

The hotel offers a rich variety of dining experiences ranging from an all day dining restaurant serving global cuisine, to an Italian Restaurant and a signature Indian restaurant under the direction of a Michelin starred chef.

An ideal location for business meetings and conferences in Mumbai, venues range from private meeting rooms at the 24-hours Business Centre to the conference rooms on the top floor of the hotel offering sweeping views of the Arabian Sea.

Recreational facilities include an outdoor heated swimming pool, a fitness centre and a full service Oberoi Spa. The Spa and the Fitness Centre are open 24 hours.

Complemented by Oberoi Hotels’ legendary service delivered by caring staff, The Oberoi, Mumbai is the ideal hotel for discerning business and leisure travellers.

http://ezinearticles.com/?The-Oberoi-Hotel,-New-Delhi—Blending-Business-With-Pleasure&id=2320861

Our brands:

Business Hotels

The Oberoi, Calcutta

The Oberoi, Mumbai

The Oberoi, New Delhi

Leisure Hotels:

The Oberoi sahl Hasheesh

The Oberoi Rajvillas

The Oberoi Madina

Wildflower Hall, Simla

Current Situation – Macro Environment (PESTEL Analysis)

Economical

The economy of UK has been getting back to the normal position as there are significant amount of increase in the tourists visiting the major cities of London as well the rest of the United Kingdom and so with the migrants from different parts of the world for jobs which would thus lead to a overall increase in the economy of the UK. Initially there need to be a high investment in purchase of building up of the vessel which would be covered under the financial capabilities of the Intercontinental group of hotels as there has been a gradual stability and increase in the economy of the Intercontinental Group of Hotels

InterContinental Hotels was the main talking point yesterday as London started the new year with a bounce.

InterContinental climbed 6.3 per cent to 597?p after a unit of Hong Leong, the Asian conglomerate that owns Thistle Hotels, declared a 3 per cent stake.

As it has been seen that the due to the economy crisis of recession there were many job losses which has left out the skilled workers out and away from their jobs but as now clearing of the overall debts of all the world economy there has been a significant growth in the economic factors as well many job openings

And as seen now there is an substantial increase in Tourism sector which would be quiet related to concept of hospitality on board of Intercontinental Blue Retreat and thus would be easier to find experienced labour

http://www.ft.com/cms/s/0/569a38fa-d937-11dd-ab5f-000077b07658.html

Political

In Britain there is new Liberal Democrats Government which will now bring on new rules and regulations on the have a change in taxation policy in correspondence to the present taxation policy on Britain

The main focus of the government is to reduce the carbon credits by reducing the carbon emissions and such elements leading towards global warming. This means there will be an increase in the fuel costs by imposing taxes over it which will directly effect on the driving of the motor vessel of Intercontinental Blue Retreat which may have a long journeys of a week from Britain to Caribbean, Mexico, Bali, Dubai at initial and thus expanding with the themed holiday retreats so the taxation rates are the major concern in considerations with the fuel as well as the service taxation rates which are to be revised

Socio Cultural Environment

Since the time trend of cruise travel came into existence the cruise liners have been a status symbol for a frequent leisure traveller who had the power to spend high amount for his travel. It was only the upper class of the society who could have afforded to travel with leisure on board but since the concept of travel with leisure had been came into existence promoting varied tourist countries and attractions it has been quiet affordable for the working class and became a means of themed travels just instead of travel with leisure

The average age of tourists travelling varies now from the young age group to the old age group varying from 15 – 55 for the purpose of visiting places over the world for holiday purpose

Technological Factors

The advancements in the cruise liners for facilitating the tourist with all the facilities throughout the journey. The major concerns in the cruise liners is the technologies to be used for waste management and water preservation and storage as well the oil or waste spills in the sea which are to be looked as major concerns.Some of the cruise liners are already implementing Water saving technologies are found throughout cruise ships, such as vacuumed toilets and low-flow faucet aerators on water outlets. In minimising emissions, is also looking at ways to reduce the amount of fuel used. As well as designing more fuel-efficient itineraries, the cruise line is pilot-testing a computer system that will make vessels more aerodynamic and lessen fuel consumption and have to further reduce sulphur oxide and nitrogen oxide emissions and particulate matter over the next decade in accordance with MARPOL Annex VI, revised in 2008, which relates to air pollution.

Some cruise lines are already implementing scrubber technology on board their ships, a system in which the natural chemistry of seawater is used to ‘scrub’ the sulphur out of a ship’s exhaust gases. These technologies are to be implemented and for which the budgeting will the looked over and thus new technologies will be adopted

Environmental

The cruise ships emit tons of sulphur emissions into the sea on a yearly average. The use of low sulphur-producing fuel which is the most popular means of reducing sulphur emissions in the cruise industry, also comes with some environmental consequences. The process of distilling crude oil to make the fuel leaves refineries with a type of waste fuel that is unusable and thus it leaves back a considerable amount of solid waste. Research is been carried out for viability of solar and wind turbine technology for ships and is set to release a sustainability report soon detailing more solutions for the future which will make the cruise liners eco friendly without disturbing the ecological balance and harming the environment.

Legal

The introduction of a new cruise liners should consider the various legal terms to be followed up which are imposed and regulated by the Cruise liner International Association (CLIA) along with the legal regulating bodies of the nations the laws and acts such as

Design and Construction standards

Cruise Vessel Safety and Security Act

Sea Environmental law (solid waste/ Toxic / Ballast water / Air Pollution)

Sexual assault on Cruise Act

Log Book and Crime Reporting

Crime Scene Preservation

These all rules, regulations and acts are to be considered from formulation a vessel to the onboard safety and security of the consumer

http://www.cruiselawnews.com/

Market Analysis

According to the projected bar graph there seems to be a substantial increase in the cruise travellers within the coming two years and this would be a very good thing for the Intercontinental Blue Retreat

The Cruising has become a major part of the tourism industry as well as for onboard hospitality accounting for with over 18 million passengers carried worldwide in 2010. The world’s largest cruise liner is Royal Caribbean which would be the major competitor for the Intercontinental Group. The industry’s rapid growth has seen nine or more newly built ships catering to a North American clientele added every year since 2001, as well as others servicing European clientele. Smaller markets, such as the Asia-Pacific region, are generally serviced by older ships. These are displaced by new ships in the high growth areas. so the Intercontinental with its new vessel would initially grab on the European market and then with the themed holidays and thus moving towards the far east

http://en.wikipedia.org/wiki/Cruise_ship

Using Micheal Porter’s five force analysis model it will help us to classify the major five forces for the Intercontinental Blue Retreat

Competitive Rivalry

There is an existing high density of cruise liners along with a increase in 32 new vessels in the coming three years which will lead to increase in vessels and so creating a port reserving problems along with the shortage of ports for existing cruise vessels There has been a competitive rivalry between the major cruise liners in the past few decades in accordance with the on board services they offer to attract the customers along with the varied experiences for the cruisers to remember with

Threat of New Entrants

Though there are 11 new cruise vessels to be launched in 2011 there is a level of threat of entrants in luxury cruise market .The easiest way to enter the cruise industry appears to be via mergers, acquisitions, and takeovers. There are essentially three cruise market segments: contemporary, premium, and luxury. Along with these types of cruises comes varying levels of service and expertise. The high cost of training and maintaining exceptional employees for their shops, casinos, entertainment, hotel staff, world class chefs, and of course the maritime staff requires a parent company with vast financial resource. Therefore the threat of new entrants is substantial. As the similar marketing strategies can be applied over but the other large group of hotels

Threat of Substitutes

The cruise industry holds a unique position in that the threat of a substitution by another vacation activity by the current consumer market seems likely to be high with the pioneering cruise companies such as Royal Caribbean, Carnival in the cruise tourism. Family cruises are also growing in popularity. a cruise vacation is generally cheaper than a traditional vacation package. Many lines offer package airfare and cruise rates to their customers. An increasing number of lines are expanding their ports of call and destinations to please the demands of today’s diverse cruise market. According to a survey 25 ships from major cruise lines from three more than last year is now carrying about 10% more passengers. All this means more choices for travellers. And thus increase in competition with the existing pioneering cruise companies and increasing a threat of substitution with Intercontinental Blue retreat

Bargain Power of Suppliers

A rise in fuel prices has been quite costly for the cruise industry, who are not only directly affected by fuel cost for running their own ships, but must raise ticket prices to cover the increase cost of flying due to high fuel prices and a hike in airfares. Quality, dependability on suppliers are vital in order to ensure repeat cruisers. If the food was good on the first cruise, consumers expect it to be up to par each time they cruise. This goes for advertising too. Carnival was the first cruise line to use television ads to promote itself. Travel services also play an important role in promoting and fulfilling cruise reservations. the bargain power of the suppliers in regards to fuel , food , supplies is likely to be high which needs an proper evaluation in accordance with the service contract for constant supply of the resources.

Bargaining Power of Customers

Cruise travellers have many different lines to choose from, each offering a slightly different variety of service on cruising. Most cruise lines target middle class travellers with the grand ocean liner experience. The first time travellers or cruisers are offered along in by moderately priced air and cruise package rates. Often one can buy a cruise vacation anywhere form $125-$250 per person, per night. Most hotel stays in major cities are more expensive per night, not including transportation as well as food. Along with low priced package rates, consumers are also demanding a unique vacation experience which would create a difference in their normal vacations . Now cruises appeal to a younger, hipper audience, and it’s easy to see why. Modern cruise ships are being more like “floating resorts,” offering everything from Casinos, spas and gyms to in-line skating and Rock-climbing walls. Cruising is the fastest-growing segment of the travel Ships also stop at more ports, with over 1,800 destinations worldwide to choose with. So does the bargain power of cruisers increase along with having wide options of cruise liners to choose from.

Customer Analysis (current and targeted)

There has been a rapid growth in number of UK cruise passengers travelling by cruise liners which have effectively been doubled in just eight years. The cruise report makes the prediction based on estimates by the UK Passenger Shipping Association that 1.35 million cruises were booked by UK residents last year, with a rise of 15% to 1.55 million predicted for this year. Now cruises are attracting to a younger, hipper audience, Modern cruise ships are being more like “floating resorts,” offering everything from Casinos, spas and gyms to in-line skating and Rock-climbing walls. Cruising is the fastest-growing segment of the travel Ships also stop at more ports, with over 1,800 destinations which would certainly lead to increase in the family travellers and young travellers which would create a trend for them to travel in luxury

The base target of the Intercontinental group would be to create a difference on their cruise liners along with the generation trends. initially it will be launched starting the voyage from UK to Mexico, Caribbean Islands, and covering 1 voyage to Bali and Asian country parts. the motive would be to create a difference in hospitality as intercontinental is following the concept of making customer happy and to create great hotels guest love

http://www.travelweekly.co.uk/Articles/2008/02/13/26646/uk-cruise-market-to-hit-two-million-passengers-by-2012.html

Internal Environment

The potentials of Intercontinental Blue Retreat –

Strengths:

Good financial stability of the brand

Customer loyalty

Large database of Intercontinental customers

Pioneers in Hospitality since long time

Luxury Brand image along with all 9 brands of intercontinental group

Assured clientele

Weaknesses:

Higher fixed cost

Onboard service is labour intensive

Seasonality of ship usage

Weak environmental policies

Long lead time for ship delivery before introduction in the market

Competitive industry with other pioneering cruise liners

High fuel and maintenance cost

Opportunities:

Expected 11 more ships in next four years

Only 8 % have taken over in the tourism sector by cruise lines

Ageing population wants relaxing vacations

Multilingual staff for language efficiency which can be picked over within from the properties over the world

ships for mergers or acquisitions from existing vessels due to brand power

Threats:

Maturing industry

Overcapacity of vessels in the sea

Rate of growth might slow down

Expected growth of 6.3 % in coming year

Tight regulations in voyage and cruise laws

Other cruise companies to increase their vessels in next year’s by acquisitions

Competitive advantage

The aim is to build a sustainable competitive advantage could be achieved by Intercontinental Blue Retreat through the Intercontinental Hotels & resorts groups economy and their pioneering performance in past few decades acquiring over 6 major brands within Brittan and world over . Possessing extensive knowledge of the UK market and existing extensive research into consumer behaviour they can offer a holistic service supported by the group’s expertise in customer service. Intercontinental already has a guest loyalty card of which the regular guests or customers can avail of the discounted rates on the voyages or themed holidays with family and friends also can avail business facilitation with intercontinental business jets for conferencing. Intercontinental blue retreat would formulate a cruise theme trip along with the hotel stays at intercontinental resorts at varied location along with hampered gift packages for the loyal customers or frequent customers and offering business coaches for business class within the cruise and pioneering the cruise liners

Mission Vision and core values of INTERCONTINENTAL HOTEL GROUP

Mission: To create great hotels guests love.

Vision: To build the hotel industry’s strongest operating system focused on the biggest markets and segments where scale really counts.

Core Values:

Do the right thing

Show we care

Aim higher

Celebrate difference

Work better together

Mission Vision and Core values of INTERCONTINENTAL BLUE RETREAT

Mission: To create best cruise guest would love.

Vision: to build up the pioneering voyages with a great customer satisfaction maintaining the higher scales in the cruise tourism sector

Core Values:

Do the best for the guest

Show the care through better service on board

Be pioneers

Work unitedly

Create valuable difference

Introduction of INTERCONTINENTAL BLUE RETREAT

The cruise vessel of Intercontinental would be introduced in summer 2010 from south Hampton port of Great Britain and the first voyage would be with grand opening to Caribbean island. The vessel would be initially advertised with the in-house marketing from all the brands of intercontinental group and along with a in-house reservation desk in the lobby of every hotel as travel desks at the lobby which would help make aware the brand loyal guests with the pre launching of luxury cruise

The Marketing Strategy (Marketing Mix)

Product:

The product being a service product it has to be generally promoted based on the brand image of the hotel so as to facilitate loyal customers with the efficient and luxurious on board service at the intercontinental Blue retreat

Price:

The price of the voyage would be as along with the luxury with an offered discounted rate to the loyalty card members of intercontinental group and along with a discounted rate for the first 200 reservation special family and themed packages with a special rated with over the chosen destination in accordance to promote the voyages

Place:

The cruise vessel of Intercontinental would be introduced in summer 2010 from south Hampton port of Great Britain and the first voyage would be with grand opening to Caribbean island. The vessel would be initially advertised with the in-house marketing from all the brands of intercontinental group and along with a in-house reservation desk in the lobby of every hotel

Promotion:

The promotions are to carried out at initially by in house promotions by in room pamphlets, advertisements on in room televisions and to the business class by a presentation of advertisement of launching and on a large scale by following

Company’s own Website

Billboards

Printed advertisements

Direct Mail to business class

Loyalty members offers

Online media

Sales promotions

Sponsorship

Type of Promotion
Method
Objective
Company’s own website

Efficient, branded website with online booking facilities.

And initial advertised page

Provide info

Enable online bookings

Billboards

.billboards at the major transport lines and tourist places along with the airport and stations

Create awareness and promote the luxury voyage facilitated for the consumers

Printed Advertisements

Poster advertisements

Ads in publications such as the travel and tourism magazine

remind and retain customers about the brands new launch

Direct Mail

Letters,

Pamphlets.

Reaching business class segment efficiently

Online Media

Emails

Banners

Sponsored links

marketing

Social media websites

comparison websitessites.

Utilise the internet to reach as many targeted customers, efficiently as possible, to guide them directly to the online booking system and retain data of customers to avail them with promotions.

Sales Promotions

In-house promotional stands and desk prior the launch

Inform about the luxurious service of the cruise

Loyalty members offer

Offer with special packages to loyalty card members

To increase brand loyalty of customer

Sponsor high end events

Sponsor high end events with a handful budget.

To get relation with the people in events and thus make brand promotions

Marketing Strategy:

Differentiation Strategy: Intercontinental Blue Retreat should make their cruises more unique and luxurious then other cruise lines making differentiation with the packages or the services provided on board by the pioneering brand in hospitality.

Sample of Advertising

Critical Reflection

I am a graduate in hospitality and tourism management with a relevant experience of one year working with a 5 star property. I have learned marketing in my bachelors but haven’t related or do not have much relevant experience with the same. It had always seemed interesting subject according to me. Coming from a hospitality background, learning the marketing concepts in depth and relating them with the real world scenario has been a truly worth experience. I was also able to explore the creative side of me while designing of the advertisement which made me think of the several factors which should actually be taken into consideration.

My expectation at the beginning of the module was to learn the basic concepts of marketing which are to be used on regular basis on and throughout marketing in any industry. But I have not only learned the core marketing theories but able to apply the theoretical concepts to practical. I feel confident now as i can take any product and formulate a descent marketing strategy. Following a video advert for the designed product line is a concept of learning the advertisement trends of marketing the new product which is quiet interesting.

The assignments provided me a tremendous opportunity to apply the gained theoretical knowledge and bring into practice. I have always considered PESTEL analysis and marketing mix as the main tool to analyse a marketing strategy for any product. These both theories provide a concrete base for marketing any product. while designing the product line of my product it became quiet clear and concise to me how anyone can relate effectively use the 4 P’s of marketing mix considering not only the product and place as in usual rather then also looked over the price and promotion of the product which are of major considerations for any product. My concept of promotion of a product was only as advertisement but as i progressed through the coursework i found out that advertisement is just a basic tool of promotion. Whereas promotions can be done in varied different ways to promote the product in market.

One of my biggest misconceptions about product placement was cleared in this assignment. I always used to consider the placement of product about an large scale in a hypermarket .as going through the product line of my new product of an chain of hotels to cruise liners was a huge and massive product for which the location on the right place at right time maters a lot as the cruise business is usually termed as seasonal

PESTEL analysis helped me to look overall factors which would effect the new product in the existing competitive market. at initial the factors like political, social and environmental factors where not been of much importance in accordance to me but while going through the assignment i realised that these factors to play a major concern in case of INTERCONTINENTAL group of hotels launching a cruise liner. The environmental factors are of major consideration with the legal environmental laws for the cruise liners as to regulations of carbon emission and oil spillages of cruises are considered with different laws which are followed up by the companies

Market analysis is an another vital tool to recognise and evaluate the market segmentation of an particular product in the market. as considering the marketing game which initially i found to be worthless. But it proved to be a very effective tool for evaluating the strategies to be applied in accordance to market situations. i always had it in my mind as a key assignment where i have learned to evaluate the market in accordance with the situation of the market and the requirements on the product in the sector. it also helped me to consider major budgeting factor as we in a group where provided with a fix budget.

During designing of the product, I had to keep in the mind the existing product portfolio, and the brand image of the company. This was challenging as they act as few factors within which I had the design the product. Placing myself in the shoes of a marketing head, I had to keep in mind the overall marketing strategy of the company, where my product fits in to the plan and how it delivers value to the customers. How would my product differentiated from the other competitors in the market

The consumer analysis in the coursework was one of key learning aspects to consider the consumer behaviour along with the consumer buying habits depending upon the several factors such as age, sex, culture, habits, psychology, needs and wants of a customer which helps in formulating a unique products which can be differentiated from the others thus creating a competitive advantage. The purchasing power of customers vary which makes it more difficult for pricing a product accordingly and also that means to me as a marketing person is that I need to keep in mind these various aspects while designing the marketing campaign. Therefore I felt, the customer profiling exercise is a great tool to understand and identify the target segment of the customers. This exercise has enabled and enhanced my understanding of marketing as a tool to figure out the right target segment for the right set of customers and the right campaign that will help promote/sell the product.

It was great to know that the intercontinental group of hotels maintain a portfolio of regular and business class consumer as well the loyalty card members. They avail and provide their consumers with a global facilitation with the loyalty card with the all existing 7 brands over round the world.

The porters five force analysis which considers the differential factors irrespective to any other theories has helped me through the assignment to consider the situational analysis of the product in the concurrent market as the factors considered such as competitive rivalry, threat of entrants, threat of substitutes are major concerns for the market situation analysis while the bargain power of consumers and suppliers where of not much importance to me unless i evaluated the assignment and came through the situations where such analysis are the major issued as for INTERCONTINENTAL cruise liners had to enter into new market there the supplies such as fuel, food and water suppliers are the major onboard requirements to be considered and suppliers bargain power has helped me to look-over evaluation of any supplier

SWOT analysis was useful in clearly highlighting the strengths I can use to promote and position the product, looking to weaknesses how i can improve the defects on the company, opportunities and threats will help me to look on to futuristic considerations. The best thing about the SWOT analysis was that during the process of conducting SWOT for the pioneering brand of Intercontinental Hotels and resorts, I realised that it is a very effective tool to understand a company’s position in the overall market. Realizing the benefits of a SWOT analysis I decided to conduct a SWOT analysis on myself. This was even more insightful to me. It clearly helped me understand how I can improve myself professionally and personally. Considering my strengths weaknesses and improve myself

After going through the assignment it reminds me of the question which was once asked to us as in a practice session to debate on with “Marketing is an art or a science”? This now truly makes me feel that it cant be any single piece of the duo pair because the science of the theory is implemented and the form of marketing art helps to implement the science into practical. So it cannot be just the one part of instead both terms compliment each other. During the exercise I felt I have undergone a complete transformation in terms of