...Back to Hotel Strategic Management 101: An examination of hotels’ implementation of Porter’s generic strategy in China Yin-Hsi Lo, Assistant Professor of Hospitality Management, Southern Taiwan University, Taiwan ABSTRACT The market-position view (MPV) of the firm in Porter’s generic strategy hypothesizes that the exploitation of differentiation and cost-leadership can create competitive advantage for a firm, which then has a better chance of outperforming other firms in a homogeneous industry. However, this notion has not been tested in the Chinese hotel industry. In response to this gap, this study empirically examines the relationships between the generic strategies of differentiation and cost leadership and hotels’ organizational performance. The results suggest that differentiation is the only significant generic strategy that influences customer satisfaction in the Chinese hotel industry. These findings have important academic and practitioner implications, which are then discussed. Keywords: Competitive Strategy, Customer Satisfaction, Hotel Performance, Market Positioning INTRODUCTION There has been a great deal of discussion in the literature about the impressive hotel development in China in the past 20 years (Derbaix & Pham, 1998; Devonport, Biscomb, & Lane, 2008; Echtner & Ritchie, 1993; Fakeye & Crompton, 1991; C Fornell, 1992; Foxall & Goldsmith, 1994; Pine, 2002; Yu & Gu, 2005). Specifically, many interesting issues have become the favorite topics...
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...Overview of Starwood Hotel & Resorts Worldwide, Inc. Starwood Hotels are one of the world’s largest hotel and leisure companies. They conduct hotel and leisure business both directly and through their subsidiaries. Brand names includes following: * St. Regies: A luxury full service hotel, resorts and residences is for connoisseurs who desire the finest expression of luxury. They are located in the ultimate location within the world’s most desired destinations, important emerging markets and to be discovered paradises. * The Luxury Collection: The group of unique hotels and resorts offering exceptional service to all clientele. To give world of unique, authentic and enriching experiences to each destination that captures the sense of both luxury and place. * W Hotles: Upscale full service hotel, where iconic design and cutting edge lifestyle set the stage for exclusive and extraordinary experiences. * Westin: Hotel provides innovative programs and instinctive service which transform every aspect of guest stay into experience. * Le Meridien: A Paris born hotel brand aims to target the creative minds that are eager to learn something new and see things in different light. * Sheraton: The largest brand serving needs of upscale business and leisure travelors worldwide. * Four Points: A selected service hotel delights self sufficient traveller with what is needed for greater comfort and productivity. * Aloft: Small scale service hotel which provides vision...
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...Defining Marketing Paper Heidi Maceo MKT 421 12/24/2013 Suzan Craver It is vital for organizations, firms, and companies to set up a goal and work hard in order to achieve that goal. Organizations, firms, and companies have different goals and type of business but they all seek for success, progress, expansion and prosperity. Therefore, they must have a strategy that includes the four elements of the marketing mix; product, place, price, and promotion. Product means the need-satisfying offering of a firm. The idea of “Product” as potential customer satisfaction or benefits is very important. Many business managers get wrapped up in the technical details involved in producing a product, but most customers think about a product in terms of the total satisfaction it provides. In order to satisfy a customer, the product must offer excellent service, a physical good with right feature, useful instructions, a convenient package, a trustworthy warranty, and maybe a familiar name that has satisfied the consumer in the past. I worked in a four star hotel called Movenpick Dead Sea in Jordan several years ago. The product of the hotel and spa that was built in both styles; old and new and offered outstanding products such as great reservation and customer service, excellent housekeeping service, food and beverage, banquet, sales and marketing along with the lovely amenities they provided. The quality of the product was rated by the customers and most of them were really satisfied...
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...service Chapter I: Introduction 1.1 Background In recent times, customer's satisfaction is the main concern for every hotel and resort. Customers are now more valued and every effort is being made to keep them loyal to the resort and make them permanent visitors. The hotel industry believes that higher level of customer satisfaction may result in higher levels of repurchase. Repeat purchasing is essential to a continued stream of profitability through achieving higher levels of customer satisfaction (Oliver, 1997). The customers' satisfaction can be defined as “the fulfillment response” which they feel towards given service. It has been a judgment that a product or service feature, or the product or service itself, provides (or is providing) a pleasurable level of consumption-related fulfillment, including levels of underfulfilment or overfulfilment” (Oliver, 1996, p. 14). The concept of consumer satisfaction occupies a central position in marketing thought and practice. Conceptually, satisfaction is an outcome of purchase and use results from the buyer's comparison of the rewards and costs of the purchase in relation to the anticipated consequences. Operationally, satisfaction is similar to attitude in that it can be assessed as the sum of the satisfactions with the various attributes of the product or service. With due consideration of this marketing approach, every effort is being made to provide the customers with better services in order to keep them loyal and make them...
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...services they receive. People complain a b o u t late deliveries, r u d e or i n c o m p e t e n t personnel, i n c o n v e n i e n t service h o u r s , p o o r p e r f o r m a n c e , and needlessly complicated p r o cedures. T h e y grumble about the difficulty of finding sales clerks to help t h e m in retail stores, express frustration about mistakes on their credit card bills or bank statements, shake their heads over the complexity of new self-service equipment, m u t ter about p o o r value, and sigh as they are forced to wait in line almost everywhere they go. Suppliers of services often seem to have a very different set of concerns than the consumer. Many suppliers complain about h o w difficult it is to make a profit, how hard it is to find skilled and motivated employees, or h o w difficult it has b e c o m e to please customers. Some firms seem to believe that the surest route to financial success lies in cutting costs and eliminating...
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...and firms’ performance in luxury hotels and chain restaurants$ Hong-bumm Kima,1, Woo Gon Kimb,* b a College of Hospitality & Tourism, Sejong University, Kwang-jin Gu, Gun-ja Dong 98, Seoul 143-747, Republic of Korea School of Hotel and Restaurant Administration, Oklahoma State University, 210 HESW, Stillwater, OK 74078-6173, USA Received 27 February 2004; accepted 4 March 2004 Abstract There is a growing emphasis on building and managing brand equity as the primary drivers of a hospitality firm’s success. Success in brand management results from understanding brand equity correctly and managing them to produce solid financial performance. This study examines the underlying dimensions of brand equity and how they affect firms’ performance in the hospitality industry—in particular, luxury hotels and chain restaurants. The results of this empirical study indicate that brand loyalty, perceived quality, and brand image are important components of customer-based brand equity. A positive relationship was found to exist between the components of customer-based brand equity and the firms’ performance in luxury hotels and chain restaurants. A somewhat different scenario was delineated from the relationship between the components of customer-based brand equity and firms’ performance in luxury hotels and chain restaurants. r 2004 Elsevier Ltd. All rights reserved. Keywords: Customer-based brand equity; Firms’ performance; Chain restaurants; Luxury hotels; Brand awareness 1. Introduction...
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...HEREDIA Marketing I Hotel Management ALOFT María de los Ángeles Arato De Ponte Mónica Gutiérrez Murray María Fernanda Vargas Calderón Melisa Vargas Ramos Professor: Alfredo Oporta HEREDIA, May 2012 Index Aloft Demographic 4 Our client 4 Buyer characteristics 4 SWOT 5 Aloft SWOT 5 Strengths: 5 Weaknesses: 5 Opportunity: 5 Threats: 6 Hotel Indigo SWOT 6 Strengths: 6 Weakness: 6 Opportunity: 6 Threats: 6 Hotel Quality SWOT 7 Strengths: 7 Weakness: 7 Opportunity: 7 Threats: 7 Segmentation 7 4 P´s 9 Product 9 Place 9 Price 10 Promotion 11 Value Proposition 12 Mention your value proposition 12 How will you run it? 12 How much will it cost to the hotel? 12 What is our business? 12 What do consumers value? 13 What should our business be? 13 Price 13 How is your price compare to your competition? 13 How do your hotel manage the cost and prices to the distribution chain? 14 Branding 15 Logo 15 Uniforms 15 Slogan 16 Life Cycle 16 Promotion Mix 16 Advertising 16 Sales Promotion 17 Personal Selling 18 Public Relationship 18 Direct Marketing 19 Direct Media 19 Web Site 19 Social Net Work 20 Trade Show 20 Aloft Demographic Our client Our clients are mainly international or national executives; they stay at the hotel for comfort, as it is strategically located in San Jose, close to a wide variety of establishments and major business centers. The hotel mostly receives...
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...Edge Hotel School Business Report Name: D L Tutor: Module Title: H O Degree Title: BA Hotel Management Submission Date: 7th November 2014 Academic Integrity Statement: I declare that the work in this assignment was carried out in accordance with the requirements of the Edge Hotel School Academic Offences Policy and Procedures and that it has not been submitted for any other academic award. Except where indicated by specific reference in the text, this work is my own work. Work done in collaboration with, or with the assistance of others, is indicated as such. I have identified all material in this assignment which is not my own work through appropriate referencing and acknowledgement. Where I have quoted from the work of others, I have included the source in the references/bibliography. Any views expressed in the dissertation are those of the author. Business Report Contents Introduction p 2 Discussion p 3 Conclusion p 8 References p 9 Appendices p 10 Appendix 1 – Strategic Management Model p 10 Appendix 2 – Swot Analysis Chart p 10 Appendix 3 – Service Recovery System p 10 Appendix 4 – Pareto’s law p 11 Appendix 5 – Kellog’s Square Dealer p 11 Introduction The aim of this business report is to write about a performance, indicating areas and recommendations for improvements. In this report Service Recovery Process (SRP) will be reviewed and how it impacts on hotel operations and strategic...
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...STUDY Rosewood Hotels & Resorts Sonja D. White Marketing In The Global Environment Overview Rosewoods Hotels and Resorts have been operating for 25 years and possesses’ 12 hotel properties all over the world. The group of hotels has a well-built ability and power to raise value of properties by building unique, one of kind properties with a small ultra-luxury residential style. Emergence of new hotels has increased intense competition in the hotel industry and it has become difficult to position Rosewood’s collection of properties in an increasingly flooded field of luxury operators (Hatch & Schutz, 2008). Thus, the management team has been strongly considering Rosewood Hotels and the Resorts as the corporate brand, similar to other competitive brands. Following the Customer Lifetime Value (CLTV) analysis, Rosewood will implement a new brand strategy and work to bring remarkable improvement in the total profit and revenue. Pros of Rosewood Hotels Moving to a Corporate Brand Higher customer life time value: The movement of Rosewood Hotels from individual brand to corporate brand will lead to higher customer life time value, which in turn, will results in higher profit and revenue. Better brand recognition: Corporate branding enhances the recognition of the brand name (Kotler & Pfoertsch, 2010). This attracts increased number of customers towards the hotel. Retain higher customer loyalty: As the Rosewood hotel is dynamic and unique in every...
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...13 Visibility 13 Image and Reputation 13 The targeted Group of people 14 Consumer Behaviour Regarding Restaurant Service 14 Media Consumption 17 Attitudes and Lifestyle Issues 18 Analytical Framework and Bader IMC Plan 19 Industry Analysis 20 The Competitive Analysis 20 Porter’s Five Forces Model 21 Generic Strategies of Bader 24 Primary Research 26 Primary Data Collection 26 Data Analysis 28 Analysis of Dimensions 31 Cronbach's Reliability Coefficient 34 The Overall Perceived Service Quality 35 The Integrated Marketing Communication Strategy 36 Marketing Mix 37 Product 38 Price 38 Place 40 Promotion 41 Bader Restaurant target marketing 42 Marketing Communication Objectives 42 The marketing communication Mix 43 Advertising 43 Direct Marketing 43 Online Marketing 43 Public Relations 46 Social Media Marketing Strategy 46 Strategy: Media Plan 47 Posters 47 Internet 48 Ads 48 Promotional Plan’s Mind Map 48...
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...VADYBOS KATEDRA Son Nguyen IMPROVEMENT OF MARKETING IN THE HOTEL’S SERVICES BUSINESS MARKETINGO TOBULINIMAS VIEŠBUČIŲ PASLAUGŲ VERSLE Baigiamasis bakalauro darbas Verslo vadybos studijų programa, valstybinis kodas 612N10003 Marketingo vadybos specializacija Verslo studijų kryptis Vilnius, 2014 Table of Contents Introduction 4 Topic relevance 4 Aims and objectives 5 PART I: Marketing as a concept of market management 6 1.1. Marketing in tourism: the model, concept 6 1.2. Problems in the sector that has became apparent, Hypothesis 9 1.3. Peculiarities modern hotel marketing company 12 1.4. Marketing improvement methodology 15 1.5. Marketing research in tourism sphere 19 1.6. Marketing research 25 PART II: Analysis of organizational and economic activity of hotel business 26 2.1. Segmentation of the hotel business 26 2.2. Activity analysis of hotel ‘‘Novotel’’ 28 2.3. Marketing tools designed to improve tourism and hospitability sector 37 2.4. Competitiveness and positioning of the hotel 45 PART III: Development of marketing improvement activities for hotel business 55 3.1. Development of measurement for the effective marketing activities 55 3.2. Suggestion for marketing improvement in hotel business 61 3.3. Development of measurements for the effective marketing activities of ‘’Novotel’’ 66 Conclusion 66 References 69 Appendices 70 Figure 1 Process of marketing management 14 Figure 2 Main types of situations...
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...Starwood Hotels and Resorts Worldwide, Inc. An American hotel and leisure company headquartered in Stamford, Connecticut It owns, operates, franchises and manages hotels, resorts, spas, residences, and vacation ownership properties under its nine owned brands. * Westin * Sharton * Four Points by Sharoton * The Luxury Collection * W Hotel * St. Regis * Le Meridian * Aloaf, a vision by W Hotel * Elements by Westin Started out as starwoods lodging, formed by real estates of starwoods capitial to take advantage of the tax break. Starwoods lodging owned a numbers of hotels around north America In 1994 the Westin hotel company was bought over, from japan Aiko company In 1998 Starwoods buy over the Sharton, Four points by Sharton and The Luxury collection from ITT 1995 Starwoods launched the W Hotel 2005 Sept Starwoods launched The Loaf, based on W Hotel, cater to business travelers In 2005, Starwood purchased the Le Méridien brand Starwood began selling a number of its company-owned hotels, instead focusing on becoming a management company and franchiserfor its current and future hotel brands Starwood also has customer contact centers (CCC) all over the world. A new CCC was just opened in Wichita, KS. This makes it 10 CCC worldwide.( Austin, Texas; Fall River, Massachusetts; Lancaster, California; St. Thomas, Ontario, Canada; Cork, Ireland; Singapore; Tokyo, Japan; Guangzhou, China; and Gurgaon, India) WESTIN Starwood's largest...
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...This assignment will explain the process of market segmentation, the characteristics that make a strong market segment, the different types of segments that are recognised by businesses. As well as this it will explain how market segmentation can help develop a marketing strategy and what the advantages and disadvantages in doing this are. Targeting and positioning within market segments will also be discussed. Mass marketing occurs when a company treats all their potential customers as one homogenous group having the same needs and characteristics. This is done by using the same marketing mix on all customers. This can be beneficial to smaller companies as economies of scale can be gained by mass producing promotional documents such as leaflets. Large firms are able to benefit more from economies of scale as they can purchase leaflets and newspaper advertising space in bigger quantities than smaller businesses. However, for many, this is not an option, customer preferences differ so much that mass marketing will cost more that it would save, as the wrong people are being informed of the product. Market segmentation needs to be implemented. Market segmentation is a process by which business separate groups of people within the market based on their personal characteristics. “A set of variables or characteristics used to assign potential customers to homogeneous groups” (M.Wedel, 2000). The most popular ways for businesses to segment their customers are geographically, demographically...
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...Journal of Hospitality Marketing & Management ISSN: 1936-8623 (Print) 1936-8631 (Online) Journal homepage: http://www.tandfonline.com/loi/whmm20 Managing the Distribution Channel Relationship With E-Wholesalers: Hotel Operators' Perspective Eunha Myung , Lan Li & Billy Bai To cite this article: Eunha Myung , Lan Li & Billy Bai (2009) Managing the Distribution Channel Relationship With E-Wholesalers: Hotel Operators' Perspective, Journal of Hospitality Marketing & Management, 18:8, 811-828, DOI: 10.1080/19368620903235837 To link to this article: http://dx.doi.org/10.1080/19368620903235837 Published online: 09 Oct 2009. Submit your article to this journal Article views: 387 View related articles Citing articles: 3 View citing articles Full Terms & Conditions of access and use can be found at http://www.tandfonline.com/action/journalInformation?journalCode=whmm20 Download by: [Computing & Library Services, University of Huddersfield] Date: 16 December 2015, At: 08:17 Journal of Hospitality Marketing & Management, 18:811–828, 2009 Copyright © Taylor & Francis Group, LLC ISSN: 1936-8623 print/1936-8631 online DOI: 10.1080/19368620903235837 Managing the Distribution Channel Relationship With E-Wholesalers: Hotel Operators’ Perspective Downloaded by [Computing & Library Services, University of Huddersfield] at 08:17 16 December 2015 Journal 1936-8631 1936-8623 WHMM of Hospitality Marketing & Management, Vol. 18, No. 8, August 2009:...
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