Luxury Hotel Marketing Analysis

This assignment delves into the marketing strategies employed by Hotel Lindrum, a luxury boutique hotel in Melbourne. It analyzes the hotel's SWOT (Strengths, Weaknesses, Opportunities, Threats) to understand its competitive position. The analysis also explores buyer behavior patterns influencing hotel selection decisions, considering factors like heritage values and price sensitivity. Furthermore, it examines Hotel Lindrum's product, pricing, place, and promotion strategies.

Running Head: Marketing principles
Marketing principles

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Analysis of the current position of the Hotel Lindrum Melbourne
Hotel Lindrum has combined features of its heritage in present-day operations. The
company consists of the unique 59 room boutique hotel that combines the recent design with the
personalized service and the contemporary facilities (Hotel Lindrum, 2017). The hotel officially
established on 12th July 1999. In Melbourne, this luxury hotel brought the new concept of the
boutique hotels. The mission of the company is to deliver the delight services to the customer.
The hotel believes in maintaining the heritage of the company with them. The company wants to
deliver the best experience to the customer so that their customers can recall the hotel because of
the memorable experiences. The company wants to be a preferable hotel that provides the
luxurious accommodation to the customers. The central location of the hotel and the romantic
boutique of the hotel make this hotel a leading 5-star hotel (Hotel Lindrum, 2017).
The market growth of the hotel Lindrum is clear after seeing the strong relationship and
partnership between the Melbourne and the Sydney hotel. In Sydney, recommended Luxury
boutique hotels consist of the sister hotels such as “The Sebel Pier One” or “Harbour Rocks
Hotel”. The luxury hotel industry is growing in the current market because of its delight
customer service across the world. The requirement of the travelers for the luxury hotels can
easily be fulfilled across the world (Hotel Lindrum, 2017). The market category of the hotel
Lindrum includes the location of the hotel. This hotel is within walking distance to best class
theatres and the restaurants along with the Melbourne cricket ground. The hotel consists of the
fully furnished boardroom along with the seating capacity for up to 10 delegates. The hotel has
built a strong brand value in the eyes of the domestic as well as international guests (MGallery
by Sofitel, 2017).

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There are some of the factors that can influence the decisions of the Hotel Lindrum; these
factors include political factors, economic factors, social factors and the technological factors.
Political factors include the impact on the working of the hotel due to less number of tourists in
the Melbourne. The hotel facility is available mostly for the international tourist, the new
regulatory bodies and the government policies can affect the tourist visit. War or conflict among
the two countries may also reduce the tourist visit. The economic factors include tax, inflation,
exchange and other factors. Hotel Lindrum might face the problem of the exchange rate which
might affect the budget of the customers. Social factors include the change in the behavior and
attitude of the customers towards the visit to Australia. Technology factors include the adoption
of the innovation and update technology for which the company needs to spend the huge amount
(Shabanova, Ismagilova, Salimov, and Akhmadeev, 2015).
The main competitors of the hotel Lindrum include Ovolo Laneways. The strength of the
Ovolo laneways it is quite affordable for the tourists as the prices of this hotel are less as
compared to the Hotel Lindrum. The rating of this hotel is approximately 4.6 as per the customer
reviews; on the other hand, the rating of the Hotel Lindrum is 4.2. The weakness of the company
is that the company doesn’t maintain the heritage values of the Australia because the
headquarters of the hotel is in Hong Kong. The performance of both the hotel in the Melbourne
is clashing with each other. The base of the hotel is Hong Kong still the hotel operations are
expanded in Australia. Talking about the 2 main competitors positioning as compared to the
hotel Lindrum, Ovolo laneways positioning is between the medium quality services with the low
prices. The Lyall hotel provides the moderate services at the high prices. The Hotel Lindrum
provides high-quality services with the high prices.

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Market segmentation is the process dividing the market of the potential customers into
the segments, groups based on the different characteristics (Wilkinson, 2013). Bellow given is
the segmentation table that indicated towards the segmentation of the Hotel Lindrum.
Market segmentation table
Segmentation base Selected segmentation variables
Demographic segmentation
Occupation Celebrities, professionals, business people,
politicians
Age Starting from the youth age group (18+)
Gender Both male and female
Income High-income group people (more than $25000-
$35000)
Geographic segmentation
Regions Domestic and international regions (preferably
international regions)
Climate Hot, summers, rainy
Psychographic segmentation
Lifestyle of customers Status seekers customers, customer believes in
luxury life
Values Customer who knows the values of the heritage
services.
Buyer behavior is the systematic approach customer follows while entering into the
purchase process and while making the buying decision. The customer who visits the hotel plays
a role in deciding which hotel is going to be best for his/her. Initiator, influencer, decider, buyer,
and user these are the five roles played by the buyer. For making the appropriate decision the
buyer the buyer recognize the need then search for the best hotel who fulfills the need then the

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buyer evaluates the alternative sources after that the buyer book the hotel and then the buyer
compares the products with the expectations (Solomon, Russell-Bennett, and Previte, 2013).
Decision types of the buyer may vary from buyer to buyer, the decision related to the hotel
selection can be- behavior, complex, dissonance, habitual.
The SWOT analysis helps the company in understanding the lacking point so that
company can change the weakness with the strength of the company (Hollensen, 2015).
Strength  The strength of the company is the customer experience.
 The company believes in keeping the heritage values in present-
day operations.
Weakness  Available only for the luxury class of the people
Opportunities  To expand the business in the tourist place like London and Hong
Kong
Threats  Threats of the low price from the rivals and the new entrants in
the market.
The current marketing strategies of the company include the strategy related to the
product, price, place, promotion. The product of the hotel consists of the luxury boutique,
romantic rooms for couples. The price of the rooms of the hotel is quite high as it is a 5 star rated
hotel. The hotel Lindrum is situated at the central place which attracts the customers towards it.
The hotel can make the use of the online advertisement that attracts the international customer
towards the hotel.

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References
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
Hotel Lindrum, 2017, Hotel Lindrum History – Melbourne Luxury Hotels, viewed on 27th
September 2017 http://www.hotellindrum.com.au/discover/history/
Hotel Lindrum, 2017, Hotel Lindrum Melbourne MGallery by Sofitel, viewed on 27th September
2017 http://www.hotellindrum.com.au/
Hotel Lindrum, 2017, Partner Hotels – Sydney Accommodation, viewed on 27th September 2017
http://www.hotellindrum.com.au/discover/partner-hotels/
MGallery by Sofitel, 2017, Hotel Lindrum Melbourne - MGallery by Sofitel, viewed on 27th
September 2017 http://www.sofitel.com/gb/hotel-8757-hotel-lindrum-melbourne-mgallery-by-
sofitel/index.shtml
Shabanova, L.B., Ismagilova, G.N., Salimov, L.N. and Akhmadeev, M.G., 2015. PEST-Analysis
and SWOT-Analysis as the most important tools to strengthen the competitive advantages of
commercial enterprises. Mediterranean Journal of Social Sciences, 6(3), p.705.
Solomon, M.R., Russell-Bennett, R. and Previte, J., 2013. Consumer behaviour: Buying, having,
being. Pearson Australia.
Wilkinson, F. ed., 2013. The dynamics of labour market segmentation. Elsevier.

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