Strategic Hospitality Marketing Case Study Assignment (Case Study Sample)

Strategic hospitality marketing
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Introduction
Hospitality marketing is a branch of marketing where efforts are usually directed towards the increase of income in the hospitality industry. It takes a look at how sections of the hospitality industry, such as resorts, restraint, amusement parks and hotels, employ marketing skills to promote their products and services.
Brief overview of Dubai Parks and Resorts
The eight star hotel, Dubai Parks and Resorts was launched under directives of His Highness Sheikh Mohammed, who is the Vice-President and Prime Minister of the United Arab Emirates and also the Ruler of Dubai. It’s designed as a great vacation and entertainment destination to attend the areas that are within Dubai.
The resort main vision is that it will develop a premier year-round international entertainment destination, serving a wide variety of visitor sections from the Middle East.
Their mission is to build high growth and return, family entertainment business built on internationally-recognized products and services with long-term demand. Dubai parks and resort mission is making consistent and cost-efficient investments in each of their theme park destinations which are intended to uphold the quality and safety of their attractions and to increase visitor figures.
Their short-term marketing technique is to focus on finishing the building of the Project and ensuring the execution of an operative public relations and marketing plan.
Dubai Parks and Resorts marketing techniques include: Building a destination management team that will strive to increase destination revenues and incomes by keenly observing their pricing, period of visit and in-park spend and modifying pricing to maximize their profits as well as crafting new plans and packages to interest additional market sections. Furthermore, continuing to emphasis on promotion tactics, including on-line, e-commerce and social media initiatives. Also, Focus their marketing energies on precise areas, including main markets such as local appearance from the UAE, regional guests from the top tourist markets for Dubai such as the United Kingdom, the United States, Russia and China.
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The tourism in the destination
The tourism destination in Dubai Parks & Resorts is mostly characterized by a wide range of tourists ranging from adventure tourists, business tourists, incentive tourists, leisure tourists, and recreation visitors. It is expected to attract an estimation of 6.7 million visitors by 2017 and start giving profits from 2018. This will mean that the hotel will generate revenue of Dh 2.4 billion. Dubai’s department of tourism and commerce marketing said that the number of overnight visitor stay had increased by 7.5 percent to a record of 14.2 million.
The activities in this hotel that mostly attract tourists: the cinematic ride of sensations, fascination and adventure, fantasy world for the Bollywood lovers and the river land. Factors that play a vital part in the growth of the hotel business include: strategic focus, where the management focuses on the organization resources on the greatest opportunity, managing and developing of people that is giving people space and freedom to develop their skills and knowledge. Also, operations that create value for customers on the company’s services, physical resources which include finances, facilities, and equipment. Finally looking at customer relation management and involves mostly tracking competitor action and analyzing change, in return adapting accordingly.
Characteristic of service sector applicable to the current service
The resort has three theme parks. It will have a theme park for Indian film industry where it will provide a physical site for fans from all over the world to holiday and celebrate with the famous names of Bollywood. LEGOLAND Dubai theme park, on the other hand, brings the LEGO brick to life in an interactive world particularly intended for youngsters aged between two and twelve. River Park is centrally located and will serve as a plaza arrival district. it will feature an array of retail, entertainment and dining options. The third theme is Lapita; a themed family resort will cater to tourists and residents looking for a weekend getaway in a fun-filled environment.
The launching of the hotel is expected to be October 2016 and is forecast to generate revenue of Dhs 2.4 billion and then they will be cash positive from the second year of operation. They have put together a very experienced in-house team and a group of suppliers who are capable of delivering quality products and services in line with their program.
Segmentation, targeting, positioning and competitive advantage of current service
Segmentation, targeting, and positioning comprises of three phase procedure. First we decide which categories of customers exist, then choose which ones we are best off trying to attend and finally executing our segmentation by enhancing our services and communicating that we have made the choice ourselves to gain competitive advantage.
Segmentation involves discovery of what types of customers with varying needs exist. In the hotel industry, for example, some customers demand quality in service and speed. Others may be concerned about safety. Thus, companies that focus in providing the needs of one cluster of customers over another have a tendency to be more profitable.
Thus, we need to define which variables will be most beneficial in differentiating unlike categories of customers. Variables used in segmentation include: first, the demographic variable which refers to personal records such as family size, education, gender, revenue, ethnicity, location.. For examples, consumers on the average prefer luxurious and different hotels. The second one is behavior in that some customers are brand. The last one is on benefit sought where different consumers have different tastes for goods and services.
On segment, our selection should depend on numerous factors: The first one is how well existing sections serve the manufacturer. The second how large the segment is expected to grow. The third one is strengths of the company on providing services to the consumer.
Positioning, on the other hand, involves the targeting of the hotel. Most companies fall into three categories: operationally outstanding companies which uphold robust competitive advantage by upholding exceptional competence thus are enabling the hotel to provide reliable service to the customer at a considerably lower price. Customer-intimate companies, on the other hand, excel in serving the particular needs of the individual customer well and reliability is usually stressed. Technologically outstanding companies give remarkable services with the up-to-date technology, continuously upholding leadership in innovation.
To successfully do repositioning it is significant to recognize how one's brand and those of competitors are observed. One of the best approaches to identifying consumer product and service perception is by multidimensional scaling. There are two approaches to multidimensional scaling. In the prior approach market, they identify dimensions of interest and then ask customers about their opinion of each dimension for each brand. In similarity rating approach respondents are not asked about their perception of brands of any particular dimension.
A competitive advantage occurs when the company can deliver the same benefits as competitors but at a lower cost, or provide benefits that surpass those of rival products or services. The primary goal of the hotel is to achieve a sustainable competitive advantage.
Service design process, branding, and service quality to the current service
Service delivery process in the face of ever-changing customer expectations could not have been more necessary in Dubai luxury hotel service sector. Service innovators, customer expectations, service process, customer complaining behavior and service recovery plans in the luxury hotel industry are assessed from the perspective of service providers. Ultimately hoteliers set highest standards at all stages of the service delivery process to achieve active and high customer ratings in all customer evaluation areas.
Dubai parks and resorts branding is driven by the full range of dynamic and innovative initiatives including B2B brand advertising, traditional and digital media and strategic consumer. Their marketing strategies involves focused social media brand campaigns which engage customers and foster loyalty, investment in their website brand, weekly email program, strategic planning and execution of brand level promotions and programs to drive hotel revenue and last but not least is annual brand specific to capture awareness at the brand level.
To improve the quality of work in Dubai hotel, hotel management concentrate resources in the areas of front office where guests arrive, housekeeping, high-quality food and beverage and good communication between all departments in the hotel. Finally, an excellent way to control the service quality is by analyzing the reaction of guests and looking for their feedback.
How customers needs and wants are satisfied and how their satisfaction and loyalty is ensured
Want is a yearning for products or services that are not essential, but customers want them while a need is a customer wish for services or products specific benefit. The five phase customer includes need identification, information search, identification and assessment of choices, and post purchase behavior. Customer focus must be treated as a subcategory of the business strategy. This means observing current state customer focus to predict what customers will demand in the future even if they discount the prediction.
Providing customer satisfaction to maintain their loyalty in the hotel industry requires that the...