HAT202 Business and Marketing Portfolio: Hyatt Hotels Case Study

This report presents a comprehensive business and marketing portfolio analysis of Hyatt Hotels, a multinational hospitality company. It examines the company's service offerings, including health and fitness centers, swimming pools, and meeting rooms, and explores its location and distribution strategies, focusing on its official website and Amazon Books. The report delves into Hyatt's pricing models, customer segments, branding, and positioning within the competitive landscape, highlighting its high-quality service offerings. It also analyzes current promotional and marketing materials, including advertising, sales promotion, and direct marketing. Furthermore, the report proposes innovative ideas such as virtual customization and GPS/PDA devices for enhanced customer experience and operational efficiency, along with a future integrated marketing plan targeting office goers and travelers, emphasizing personal selling, public relations, advertising, sales promotion, and digital marketing strategies.

STUDENT NAME:
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ASSESSMENT 3 HAT202
BUSINESS AND MARKETING PORTFOLIO

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INTRODUCTION
The diverse modificationsthat are commencedby the organizations are dependent on the assessment
of the issues that are faced by the same. The discussion will be focusing on the growth of the
Hospitality industry and more particularly frame a business portfolio of Hyatt Hotels. Hyatt Hotels is a
multinational hospitality company that manages and franchises luxury hotels and resorts with the aim
of providing high class service to the customers. The diverse modificationsthat are being commencedby
the organization have assisted the same in upholding the efficacy of the operations.
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CURRENT BUSINESS OPERATION
SERVICE
The service offerings of the organization, Hyatt Hotels, are largely dependent on the assessment of the
customer demands in the different markets. The diverse range of service offerings has assisted the
organization in improving the structure as per the objectives of the business. The organization provides
Health and Fitness Centre, Swimming Pool, Palm Hills Golf Club, Resort Centre, Guest Rooms, Meeting
Rooms and the like (Hyatt.com 2019). The diverse range of service offerings of the organization has
assisted the same in attracting the attention of the customers (Kara et al. 2013).
LOCATION AND DISTRIBUTION
Hyatt Hotels is mainly an hospitality business undertaking, which has assisted the venture in
undertaking aggressive promotions since the innovations relating to IoT (Internet of Things). The
organization undertakes the distribution through the Official websites of the business and the Amazon
Books. The organization holds 777 properties in 54 countries which has assisted the same in
distributing the line of services as per the needs of the customers (Hyatt.com 2019). The distribution of
the serrtvices and products are undertaken nthrough the
PRICING MODELS
The pricing strategies that are commenced by the organization has assisted the same in gaining a
competitive advantage in the global markets. The key changes that are commenced by the organization
in the pricing model is based on the price sensitivity of the economies in which they undertake their
operations. The organization undertakes Market-oriented pricing strategy, Price discrimination strategy
and Value-based pricing strategy in order to operate as per the capabilities of the customers (Denizci
Guillet and Mohammed 2015). For an example, the Hyatt Regency offers its exclusive range of
hospitality services starting from $ 153, which has helped the organization in gaining a competitive
edge against Hilton Sydney and other competitors.
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CUSTOMER SEGMENTS
The organization operates in more than 54 countries around the globe. It has assisted the organization
in targeting wide range of customers mostly the elite group whose age is 30 years and older. The
organization provides an wide array of services as per the needs of both male and female (Deery and
Jago 2015). The degree of loyalty among the customers are ‘hard core loyals’ and ‘ soft core loyals’. It
has assisted the organization in upholding the efficacy of the operations while operating in diverse
global economies. The organization targets all social classes for the efficient movement of their
products in the global markets.
BRANDING AND POSITIONING
The organization provides the high quality services offerings at a slight higher price, which has assisted
the business in gaining a competitive edge over the other competitors like Hilton, Marriott and
AccorHotels. The brand positioning strategy of the organization depends on attracting the attention of
all the targeted customers for maximizing the sales. On the other hand, the quality of the service
offerings of the business has assisted the enterprise in upholding the efficacy of the operations as per
the objectives of the business.
CURRENT PROMOTION AND MARKETING MATERIALS.
The different aspects of the promotion that are commencedby the organization is based on the needs
of attracting the attention of the target customers. The organization undertakes different promotional
techniques like Advertising, Sales promotion, Public relations and Direct marketing through the
company website (Law, Buhalis and Cobanoglu 2014). The promotional practices that are
commencedby the organization works simultaneously with distribution of the services, which has
assisted the organization in maximizing their sales revenue. Hyatt has taken steps to provide the
customers with high number of bonus points in order to maintain the efficacy of the promotional
activities of the organization (Hyatt.com 2019).
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SERVICE IMAGES
Source: Testa and Sipe (2012)
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LOCATION AND DISTRIBUTION IMAGES
Source: Ariffin and Maghzi (2012)
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PRICING MODELS IMAGES
Source: Deery and Jago (2015)
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CUSTOMER SEGMENTS IMAGES
Source: Hyatt.com (2019)
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Higher
price
Lower
price
High
quali
ty
Low
quali
ty
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BRANDING AND POSITIONING IMAGES
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CURRENT PROMOTIONAL MATERIALS IMAGES
Source: Testa and Sipe (2012)
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RECOMMENDED NEW OR INNOVATIVE IDEA
DESCRIPTION:
Hyatt Hotels might take steps to develop a virtual Customization, which will allow the customers in
customizing the services as per their preferences while booking an online suite. IT will be helping the
organization in boosting the sales and thereby compete with Hilton (Hyatt.com 2019). The idea of the
virtual customization will also help the organization in maximizing the sales revenue through larger
involvement of the target customers. On the other hand, the organization might also install GPS and
PDA devices in order to track their cars while receiving clients from airports. The GPS and PDA devices
will be helping the hotel group in maintaining the efficacy of the operations that are undertaken by the
same as per the objectives. The group of hotels might create an android wall for implementing a
customer survey in order to identify the concerns that are faced by the customers and thereby map the
concerns as per the priorities. It will be helping the group of hotels in bringing forth changes ion the
service quality as per the concerns of the business.
APPLICABILITY:
The application of the virtual customization will be executed through the utilization of AR (Augmented
Reality). The organization will be undertaking steps to align the AR program with their official website,
which will allow the customers in selecting and applying the services to their order list and
simultaneously review the prices that will be charged by the organization for the customization. The
organization might create smart portals with an induction of AR, which will be portraying the service
offerings of the business. The customers will be having the privilege of choosing their products in their
leisure time from the website. The GPS will be installed in the different vehicles under the group of
hotels. On the other hand, PDA and similar devices will be provided to the people who are directly
dealing with the customers. It will be helping the group in maintaining the efficacy of the operations.
The group of hotels will be creating a touch screen wall in association with the android in order to help
the customers in placing their reviews more proficiently during checkouts.
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FUTURE INTEGRATED MARKETING PLAN
TARGET MARKET
The target market of the organization will be the office goers and the people who are travelling to the
different regions. The organization will also consider the free customer who makes purchase on the
way to their destination. While implementing the virtual customization the company adheres to the
individual preferences of the customers adding up to their competitive advantage (Ryan 2015).
PROMOTIONAL MIX
PERSONAL SELLING
The concerned organization undertakes no personal selling activities as it focused more on digital
marketing. However, the organization undertook collaboration with different tourism agencies in order
to enhance the business marketing in the different economies.
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Source: Law, Buhalis and Cobanoglu (2014)
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PUBLIC RELATIONS
The concerned organization aims at upholding suitable PR initiatives in order to maximize the
involvement of the relevant stakeholders in the processes that are designed by the venture. The
organization promotes different charitable functions and undertakes sponsorship in order to promote
their product offerings widely. On the other hand, the implementation of suitable communication
techniques has assisted the organization in understanding the concerns of the stakeholders. It has
assisted the organization in perfecting the PR initiatives as per the objectives (Brown, Arendt and
Bosselman 2014).
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Source: Deery and Jago (2015)
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ADVERTISING
The organization undertook collaboration with YouTube and Google in order to facilitate video and
display ads. The advertisements that are commencedby the business through the utilization of digital
media has assisted the organization in facilitating large scale promotions at a lower cost. On the other
hand, the organization also undertook different promotional campaigns in order to maximize the
engagement of the stakeholders in the processes and thereby making the target customers aware of
the product and service offerings.
Source: Ariffin and Maghzi (2012)
SALES PROMOTION
The sales promotion techniques that are commencedby the organization are through discounts and
customized services. The sales promotion techniques have assisted the organization in attracting the
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attention of the customers more efficiently towards the propositions that are made by the same (Testa
and Sipe 2012). On the other hand, the sales promotions that are issued by the organization have
assisted the same in maximizing the sales revenue earned by the organization through maximizing the
involvement of the customers in the buying process.
Source: Testa and Sipe (2012)
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DIRECT AND DIGITAL MARKETING
The digital marketing strategies that are commenced by the organization through campaigns has
assisted the same in enhancing the operations as per the global standards. The digitalization strategies
has assisted the organization in upholding their operations in the digital era with the influence of IoT
(Internet of Things).
Source: Ariffin and Maghzi (2012)
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REFERENCES
Ariffin, A.A.M. and Maghzi, A., 2012. A preliminary study on customer expectations of hotel hospitality:
Influences of personal and hotel factors. International Journal of Hospitality Management, 31(1),
pp.191-198. Available at: https://www.sciencedirect.com/science/article/pii/S0278431911000697
Brown, E.A., Arendt, S.W. and Bosselman, R.H., 2014. Hospitality management graduates’ perceptions of
career factor importance and career factor experience. International Journal of Hospitality
Management, 37, pp.58-67. Available at:
https://www.sciencedirect.com/science/article/pii/S0278431913001448
Deery, M. and Jago, L., 2015. Revisiting talent management, work-life balance and retention
strategies. International Journal of Contemporary Hospitality Management, 27(3), pp.453-472. Available
at: https://www.emeraldinsight.com/doi/abs/10.1108/IJCHM-12-2013-0538
Denizci Guillet, B. and Mohammed, I., 2015. Revenue management research in hospitality and tourism:
A critical review of current literature and suggestions for future research. International Journal of
Contemporary Hospitality Management, 27(4), pp.526-560. Available at:
https://www.emeraldinsight.com/doi/abs/10.1108/IJCHM-06-2014-0295
Hyatt.com 2019. Hotels in Dubai. Available at: https://www.hyatt.com/destinations/dubai [Accessed on
3rd Feb 2019]
Kara, D., Uysal, M., Sirgy, M.J. and Lee, G., 2013. The effects of leadership style on employee well-being
in hospitality. International Journal of Hospitality Management, 34, pp.9-18. Available at
https://www.sciencedirect.com/science/article/pii/S027843191300011X
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Law, R., Buhalis, D. and Cobanoglu, C., 2014. Progress on information and communication technologies
in hospitality and tourism. International Journal of Contemporary Hospitality Management, 26(5),
pp.727-750. Available at : https://www.emeraldinsight.com/doi/abs/10.1108/IJCHM-08-2013-0367
Ryan, C., 2015. Trends in hospitality management research: a personal reflection. International Journal
of Contemporary Hospitality Management, 27(3), pp.340-361. Available at:
https://www.emeraldinsight.com/doi/abs/10.1108/IJCHM-12-2013-0544
Testa, M.R. and Sipe, L., 2012. Service-leadership competencies for hospitality and tourism
management. International journal of hospitality management, 31(3), pp.648-658. Available at:
https://www.sciencedirect.com/science/article/pii/S0278431911001447
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