Comprehensive Analysis of Airbnb's Marketing and Business Strategy

This report provides a detailed analysis of Airbnb's marketing strategy, examining its unique market position within the accommodation industry. It explores how Airbnb differentiates itself through local offerings, digital booking systems, and transparent payment platforms. The report delves into Airbnb's strategic approach, including its integration with Craigslist and its focus on brand partnerships, influencers, and community building. Furthermore, it applies PESTEL analysis, Porter's 5 models, and the 7 Ps marketing mix to assess the company's external environment, competitive forces, and marketing tactics. The analysis highlights the company's strengths, weaknesses, opportunities, and threats, providing a comprehensive overview of its business model and marketing strategies. The report also examines the company's ability to adapt to the changing market conditions, including technological factors, environmental considerations, and legal compliance. Finally, the report provides a thorough overview of the company’s references.

Running head: MARKETING STRATEGY
Marketing strategy
Name of the student
Name of the university
Author note

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MARKETING STRATEGY
Table of Contents
Answer to question 1:.................................................................................................................3
Answer to question 2..................................................................................................................3
Answer to question 3:.................................................................................................................4
PESTEL......................................................................................................................................4
Porter’s 5 models........................................................................................................................5
7 p’s............................................................................................................................................6
References..................................................................................................................................8

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MARKETING STRATEGY
Answer to question 1:
Airbnb has created a marketing position for small accommodation providers. This is
the most attractive factor that made Airbnb different from other accommodation holding
companies. It has successfully created a market position for itself. It provides the local
facilities which is not provided by the other service providers in this industry. It provides
local relevant and unique facilities like the local community. It provides the facility of gyms,
local food and beverages and the other facilities include the neighborhood tours. It provides
of accommodation facilities that are suitable like the Bed and breakfast, boutique hotel,
natural or eco lodge. Timeshare, service apartment or the hostels. It provides the small
accommodation providers like, marketing, bookings management. It screens both hosts and
guests. It carries out rudimentary background checks on hosts using available public records
to check for criminal records, sex offender registrations and membership of a terrorist
organization. It enables the host as well as the guest who is booking to know each other well
while confirming the booking. It provides a digital method of booking. This is where Airbnb
is different from others. The payment platform is transparent. It is made in advance to Airbnb
which then pays to the host. It abides the rules and regulations set by the Australian consumer
law.
Answer to question 2
The company not only creates new products but it created a new market altogether.
Just like Uber made the taxi service easy for all by making personal drivers available to
everyone, Airbnb brought a wind of change to the traditional hospitality market. The co-
founders of Airbnb implemented a remarkable integration with Craigslist, which allowed
Airbnb hosts to automatically create a posting on the site. It has made the system smarter and

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easier for the users. It has made the system modern and user-friendly. The company does not
own any real estate or they are involved in conducting tours. The company is a broker which
receives percentage service fees in the conjunction with every booking. This was the
pioneering strategy adopted by the company to accomplish both new market and new
product.
Answer to question 3:
There are basic six strategies that is adopted by the company in order to survive in the
market. The first and foremost is the brand partnership, the other is the influenzers, the other
is the factor of taking risk, the other factor is maintaining the quality imagery and the final
one is the building of a community. The reason for adopting this strategies is to bring fame
for the company in the market. The brand partnership and influencing is required in order to
make the product known to the entire world and to increase the revenue. The maintenance of
quality is essentially required as it would increase the number of potential customers.
Building community is a new and creative idea and hence these strategies are helpful in order
to retain the position in the competitive market.
PESTEL
The government has made the business of Airbnb and similar services legal and have
extended support to promote the same. The service is popular in all over the world and it has
been promoted globally (Wieland, Hartmann and Vargo 2017).
The company is into the concept of shared economy. It is developing the trend where
the resources are shared between the individuals and the corporations. It offers comparatively
cheaper alternatives for renting. It offered jobs to many people who at a regular period offer

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homes to the guests. This type of offers are mostly in demand in the cities or the villages that
does not have any good hotels or motels.
There are ready customers of the company. The hosts offer their homes to the guests
in exchange of money. The visitors are given the chance to record their experience online. It
is promoted in the social media. It is vice-versa. The hosts are also given the chance to share
their experience. It is socially accepted by many.
The technological factor is in favor of the company. The visitors are supposed to book
through the application. They book their rooms through websites even. Without the use of
technology the rooms cannot be booked. The process of automation is also used. In it if a host
does not respond to the message of the guest the company would automatically text the host
for them (Strauss 2016).
The company claims that they reduce the waste of the energy usage in different
countries compared to other hotels. This includes the reduction of the greenhouse gases, less
water consumption, waste avoidance and they increase environmental awareness.
The company has to follow the proper legal laws, copyright laws, labor and
employee safety laws. It has earlier faced the legal issues for failing to comply with housing
regulations. The hosts follow the terms and conditions that is provided by the company that
agrees to follow taxation, housing and tourism regulations (Sinha and Sheth 2017).
Porter’s 5 models
The five factors that can be categorized under the porter 5 models of the company are:
Industry rivalry:

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They have strongly segmented market that will keep the rivalry aside with low fight
on price. The price inelasticity of supply for high demand rivalry on price when the demand
is high.
Threat of new entries:
This model is business is easy to build and it does not require a huge amount of
investment. This is the reason there are chance of new entries (Wirtz and Tang 2016).
Threat of substitute:
The threat of the company is not only those who are in direct competition with it but
also the ones who have the same model.
Bargaining power of supplier:
It is low as it has wide range of suppliers that is compared to the international players.
Bargaining power of buyers:
The buyers of the company always have the power to shift to another service. This is
the reason the chance of bargaining of the customers is high (Payne, Frow and Eggert 2017).
7 p’s
Place:
The company is placed in different parts of the world. It does business globally. The
brand is active in developing as well as the developed parts of the world.
Price:

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The company holds the concept of availability and affordability. Apart from the
economic option it makes the option of premium available.
Promotion:
The promotion of the company is conducted through apps and social websites.
Physical evidence:
The only physical evidence of the company is the feedbacks received from the hosts
and the users.
Process:
the process of availing the service is user friendly. It is completely based on online
service and the customers need to book the rooms and the hotel would be there to receive the
order from the customer.
People:
There are huge numbers of people who are working for the company and there are
many people who have availed the service. The company has made many people attached
with the company that includes the users as well as the hosts. (Hanssens and Pauwels 2016).

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References
Hanssens, D.M. and Pauwels, K.H., 2016. Demonstrating the value of marketing. Journal of
Marketing, 80(6), pp.173-190.
Payne, A., Frow, P. and Eggert, A., 2017. The customer value proposition: evolution,
development, and application in marketing. Journal of the Academy of Marketing
Science, 45(4), pp.467-489.
Sinha, M. and Sheth, J., 2017. Growing the pie in emerging markets: Marketing strategies for
increasing the ratio of non-users to users. Journal of Business Research.
Strauss, J., 2016. E-marketing. Routledge.
Wieland, H., Hartmann, N.N. and Vargo, S.L., 2017. Business models as service
strategy. Journal of the Academy of Marketing Science, 45(6), pp.925-943.
Wirtz, J. and Tang, C., 2016. Airbnb: Competing as market leader in the US versus being a
distant second in China. SERVICES MARKETING: People Technology Strategy, pp.626-632.