Hyatt Regency Birmingham: Branding Strategies in Hospitality Report

This report provides an analysis of branding strategies within the hospitality industry, emphasizing the Hyatt Regency Birmingham. It begins with an executive summary and literature review, exploring the importance of branding for promoting services and differentiating businesses from competitors. The report discusses branding strategies, including product branding, line branding, multiple branding, and brand extension. The analysis section focuses on the Hyatt Regency Birmingham, its branding practices, and its competitive position. The hotel's location, services, and branding strategies are examined to understand how branding contributes to its success. The report highlights the role of branding in building customer trust, enhancing customer experience, and achieving competitive advantage. The study recommends strategies to improve branding, such as emphasizing customer needs and emotions, building a strong brand image, and adopting effective marketing approaches. The conclusion summarizes the key findings and reinforces the significance of branding in the hospitality industry.

CONTEXTUALIZING INTERNATIONAL HOSPITALITY MANAGEMENT

EXECUTIVE SUMMARY
Hospitality sector also needs to emphasize on the concept of branding so that awareness can
be generated among customers regarding availability of different service provision. The hotel has a
blue glass exterior facade and it stands across the road from the International Convention Center.
The hotel includes Bar Pravda, Aria Restaurant and the Atrium Lobby Branding strategies ensures
the effective attainment of the organizational objectives which are ascertained with the formulation
of the various strategies which they adopt in order to grow and expand within the work environment
in order to attain the competitive advantage. These aspects reflect the various needs and the
emotions which they require to meet the competitive advantage. This helps to build a strong image
in the mind of the customer and provide the effective attainment of the objectives.

Table of Contents
Executive Summary.............................................................................................................................2
Literature Review.................................................................................................................................4
Discussion and Analysis 1000..............................................................................................................7
Background of the hotel...................................................................................................................7
Conclusion............................................................................................................................................1
Recommendations................................................................................................................................1
References............................................................................................................................................3

INTRODUCTION
Branding is the concept through which an organization promotes its services and the concept
also differentiates the entity with that to its competitors. Hospitality sector also needs to emphasize
on the concept of branding so that awareness can be generated among customers regarding
availability of different service provision (Blain, Levy and Ritchie, 2005). The present research
study has been made on hospitality industry in which branding is essential for promoting the
intangible services which hotel provides to the customers. In the present research study, discussion
has made on branding strategies and along with that one suitable branding strategy is recommended
to the subsequent hotel for more service provision. Furthermore, the study has also discussed
several ways through which existing branding aspects can be improved.
LITERATURE REVIEW
In the competitive hospitality industry, every entity is required to enhance the customer base
so that opportunities of long term sustainability and competitive advantage can be acquired. The
purpose of branding is to ensure that customers will get proper results as per their spending on
services. With the help of branding, large pool of customers can be persuaded towards the service
provision and through this, customer base can also be encouraged (Brotherton, 2006). The strength
of a hotel is its customer base; thus prominent services should be delivered to clients so that they
can be retained for longer span. Branding is an important part of marketing and it aids the business
entity to broaden the scope of business from one customer segment to others. Businesses always
emphasizes on branding aspects when they target brand conscious people along with those who
want branded services. Similar to other business organizations, branding is vital for hospitality
sector because the concept builds trust of employees, customers and stakeholders.
In marketing terms, the definition of branding is the sum total of company's value, which
includes products services and cultural aspects. (Buhalis and Kaldis, 2008) Brand always gives
potential clients an idea of what they are buying and as a result, it significantly impacts the purchase
decision of clients. Customer's purchasing decision always gets affected when the brand value is
promoted appropriately among the market place. Branding increases sales ratio of a company and
this also aids in acquiring competitive advantage at the market place. Brand value of a product
encourages confidence and trust in the products and services and it enhances the value of customer
experience. With the help of branding, creativity and uniqueness of the product can be accelerated
and as a result, existing customer base can be increased (Del Olmo and Munar, 2009).
In general, a brand usually carriers a logo or trade mark by which it is recognized. Brand
gives identity to the service entity and it also helps the customers to recognize service from specific
name and logo. Thus, it can be said that a brand is far more than its outward representation and
through which adequate relationships can be build with the potential service users. Strong brand

can impact organizations as they support price premium over competitors and this aids in
persuading new customers towards service aspects (Dev, 2012). Hospitality industry of UK needs to
have appropriate branding policies so that the specific position can be created at market entity and
this will help the business to protect itself from economic downturn. Branding in hospitality creates
a bigger footprint to enable expansion into new markets. When any of the business emphasizes on
branding aspects, it has to fulfill needs and expectations of clients so that they can purchase the
same services in future as well. Proper branding can result in higher sales of not only one product
but on the other products associated with the brand.
The ratio of sales can be encouraged afterwards by emphasizing on the elements of branding
because branding always consist of some aspects that should be concerned with the beliefs and
values of people. The concept of branding focuses on encouraging the brand experience of
customers and through this, psychological concept of customers can be changed. Brand value of the
business needs to be promoted through proper ways so that customers can buy same service on
higher extent. In contemporary scenario, branding considers the art of creating and generating new
things for the sake of facilitating innovation (Harris and Mongiello, 2006). Brand recognition is
successful when people can state a brand without being explicitly exposed to company's name and
identity. Similarly, branding gives greater meaning to the hospitality industry because it is the
brand identity only that gives more value to the business. Branding is crucial for hotels of UK
because brand always includes quality aspects which are one of the most prominent facets of
persuading clients. With the help of proper branding, internal efficacy of business services can be
encouraged and as a result, it augments sales and profitability aspects.
Brand actually creates trust among customers because a professional appearance builds
credibility and trust. Thus, people are more likely to purchase from a business entity that appears as
a polished and legitimate entity (Lashley, 2007). Advertising is considered as another component of
branding in which different strategies are adopted to attract customers towards the services. It has
been observed that branding builds financial value of the hotel because business entities include
more service aspects for overall customer satisfaction. Too much focus on brand sometimes reduces
efficacy of services because business remains busy in enhancing brand value of the services. The
greater a company's devotion to build its brand value, the better the financial return from its efforts.
Hotel industry focuses more on branding facets because it provides them with new opportunities to
attract new customers towards the service provision. From the analysis of business case studies, it
can be said that hotel uses different branding strategies to promote the services on higher extent
(Zwaal and Otting, 2007).
The major branding strategies that hospitality industry adopt are product branding, line
branding, multiple branding and endorsing branding. Further, brand can be promoted through line

extension, brand extension, multi branding and new brands. Line branding can be done with the
help of developing new things in the product line as that will enhance the product category and
along with the same it can also encourage sales and profitability factor (Gross, 2007). At the same
time, hotels also emphasize on brand extension where in branding can be done through entering into
market place with new products and services. This will maximize the potential of customers and as
a result, more customers can be attracted (Li and Law, 2012). Multi- branding is one such strategy
through which multiple aspects can be added to the product list and through which different facets
can be added to the product promotion aspects. New brands can be established at the same time
along with the existing brand so that people can be persuaded for the same. However, on the other
hand, most of the businesses entities emphasize on multi branding where in different products are
added in a single line so as to obtain greater market share. It helps the hotel to create single package
for services so that all the related needs of customers can be fulfilled through a subsequent
packaged service (Chang, Gong and Shum, 2011).
The purpose of branding is to retain the potential customers so that they may not switch to
other brand. Branding has the potential to help business entity to retain the customers and through
this, business development facets can be encouraged. From the viewpoints of many authors, it has
been seen that that hotels have to emphasize more on branding aspects so that differentiation can be
created at market place and through this, customer's perception can be changed towards branding
products. In most of the cases, it is observed that customers generally prefer less to purchase
branded products because their opinion is different for the concept of branding (Okumus, Altinay
and Chathoth, 2010). Traditionally, hotels have branded items which customers already expect to
find out in their suites; thus it aids in creating more awareness among customers regarding
branding. This is vital for encouraging customer experience which is another profitable state for the
hotel industry. Branding is adopted for different aspects as per the budget of hotels (Morrison and
O'Gorman, 2006).
Branding strategies of the business should be followed as per their purpose so that according
to the same, customers can be attracted. Competitive advantage is becoming one of the major
business aims; thus the hotel entity has been emphasizing on branding strategies. Service provision
involved in the hotel is integrated with several intangible aspects because it involves different
services that are delivered to the clients even after the service delivery (Barron, 2008). Effective
branding is the source of making the services more competent with that to other business entities
and through this, competition can be created at market place. Effective branding will pose greater
impact to business services and through this; market share of the hotel services can be augmented.
Apparently, branding can build hotel's competency and this can also enhance long term
sustainability of the hotel.

DISCUSSION AND ANALYSIS 1000
Background of the hotel
The Hyatt Regency Birmingham is located in the city center of Birmingham, England and it
stands at a height of 75 meters with 24 floors and has more 300 guest rooms. The hotel has a blue
glass exterior facade and it stands across the road from the International Convention Center. The
hotel includes Bar Pravda, Aria Restaurant and the Atrium Lobby (Buhalis and Crotts, 2013). The
brand is getting more attention from the customers due to all the luxury services involved in the
service provision. The hotel was built by the Hyatt Regency Birmingham Ltd and the company is a
public sector- private sector partnership between the Hyatt Corporation.
The hotel was specifically constructed to have close ties to the international convention
center and that includes a private access bridge that combines the(Barron, Maxwell, Broadbridge
and Ogden, 2007). The present research study has been made on branding aspects and its role in
hospitality sector. From the hotel analysis, it can be said that branding assists the hotel to survive its
position in competitive hotel industry. The brand value of the hotel has been increasing due to all
the luxury services added in the product line. Hotel Hyatt has been managing branding strategies in
such a way where in all the major business services are promoted in proper manner. Multiple
branding strategy is one of those strategy that has been used in the business entity where in chief
focus has been given towards involvement of each and every service. At the same time, it is the
brand value only that aids the hotel to create healthy competition in the environment and as a result,
more people are getting attracted towards the services of the hotel. Multi branding aids the hotel to
manage customer base and through this, new service aspects are also involved in the business
provision (Chon, Barrows and Bosselman, 2013).
It is seen that the branding strategies are necessary for hotel unit to promote it. Hyatt Regency has
been established itself as a brand that depicts luxury. It is through evaluation of hospitality industry
at whole that the importance of brand creation can be understood. The PESTLE analysis is
conducted underneath for hospitality industry in United Kingdom.
· Political factors: United Kingdom is s exposed to risk of terrorist attacks which threatens
life of tourist. This in turn creates sense of insecurity among visitors. Moreover, in recent past the
political conditions of country were in question. There is possibility for country to exit from
European Union. The unstable political conditions tend to have a negative impact on growth of
hospitality industry (Morrison and O'Gorman, 2006).
· Economical factors: The country has recovered from negative effects of financial crisis.
Moreover, gross domestic product is growing at moderate pace in recent. The economic growth at
whole and controlled level of inflation tends to support growth of hospitality industry.
· Social factors: In present era, everyone prefers to move from one place to another. Number

of tourists or visitors is increasing on continuous basis since last decade. It is due to globalization
that distance between lands has been minimized. This in turn provides high growth opportunities for
hospitality industry (Okumus,Altinay and Chathoth, 2010). Moreover, it is with introduction of
social media that the organization can reach large number of customers. Hyatt regency can easily
create awareness among large number of customers and attract them from across the globe.
· Technological factors: Technological development is considered as breakthrough within
hospitality sector. The businesses can adopt latest technology to serve its clients in an efficient
manner. The hospitality industry is expected to achieve high level of growth due to various
technical developments. Large number of customers is attracted through online portals and
websites. It can be therefore said that technological up gradations prove to be boom for the
hospitality industry.
· Environmental factors: Hospitality industry is subject to risk of climatic and
environmental changes. Visitors prefer to travel on days when climate is soothing in nature.
Moreover, the risk of natural disaster prevails among tourists while visiting different places. Hyatt
regency is also affected by risk of environmental changes that determines tourists’ preferences.
· Legal factors: The legal regulations within United Kingdom are considered to play an
important role in determining growth of industry. The country has established rights for consumers’
protection. The business unit is expected to achieve growth through abidance of all legislations
prevailing within an economy (Prideaux Moscardo and Laws, 2006).
PESTLE analysis presented above indicates influence of external factors on growth of
hospitality industry at whole. This in turn also depicts the affect on organization’s growth for Hyatt
Regency. It can be said that the hotel unit has huge opportunities. The organization can achieve
success through formulation of effective strategies. It is seen that the economic, social and
technological factors support growth of industry. The business unit needs to take advantage of all
opportunities prevailing within external environment. Moreover, it is through cautious approach that
the business unit can overcome all kind of external risk.

Hyatt Regency Briminghan can build and sustain competitive advantage by undertaking the
effective branding strategy. Brand is name, sign, symbol and design which provides identity to
the hotel. By undertaking the well defined brand name which are highly associated with the
customers’ needs and emotions company can attract the large number of the guest. Hyatt
Regency Briminghan should identify the main which convey the vision , mission and objectives
of an organization. In addition to this, through branding organization can differentiate their
products and services with their competitors. It enables organization to build distinct image in the
mind of the target market. To attain competitive advantage over their rivals Hyatt Regency
Briminghan needs to be taken into consideration all the care aspects while they branding the
product and services. Branding strategies ensures the effective attainment of the organizational
objectives which are ascertained with the formulation of the various strategies which they adopt
in order to grow and expand within the work environment in order to attain the competitive
advantage. These aspects reflect the various needs and the emotions which they require to meet
the competitive advantage. This helps to build a strong image in the mind of the customer and
provide the effective attainment of the objectives.
CONCLUSION
Summing the entire case, it can be said that with the help of proper branding only, hotel
Hyatt has been facilitating creativity and innovation in the business processes and services. The
entire study has depicted all those ways through which services of the business entity is getting
underpinned. Hotel Hyatt can pull more of customers. The competitive advantage of the hotel is
in its strength. Hyatt is having almost 42 chain of hotel around the globe. Moreover, Hotel is
considered as one of the branded hotel chain in the world. Because of this the hotel can easily
come up with trusted customers base. This in turn helps Hyatt’s supply chain management to
lower the cost and their major operations like manufacturing and operations are integrated with
it. Furthermore, hotel's services are trendy as well as with beautiful aura. It is the one where hotel
utilizes its skilled employees, inexpensive raw materials and excellent operations in order to
generate the maximum value to consumers. Hyatt hotel use offshore methods for keeping their
cost of services provided at down level through maintaining its brand for long stay in the market.
RECOMMENDATIONS
On the basis of above discussion, it can be said that brand strategy should be adopted as
per the service aspects; thus it is essential for Hyatt hotel to emphasize on multi branding
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strategies so that at a single point of time, several things can be included simultaneously (Walker
and Walker, 2012). It is also vital for the hotel to focus on major elements of the services;
therefore specific concern should be given towards adequate customer services. In order to
acquire competitive advantage, the hotel industry should organize training and coaching session
so that employees can learn the ways to meet the needs of clients. On the other hand, hotel
should give more concern towards employee management and retention so that human resource
can assist the hotel to enhance the brand value of services. Existing branChon, K.S., Barrows,
C.W. and Bosselman, R.H., 2013ding could be enhanced by adding more services to the existing
service provision (Christensen Hughes and Rog, 2008). Further, every entity should give only
clear and precise message while promoting the services so that customer faith in the service
entity can be enhanced. Apart from this, the hotel entity can also emphasize on new customer
segment who have the potential to acquire luxury services from the hotel. Brand value of the
hotel can also be encouraged through focusing on proper services to the clients; thus there should
be adequate information present on the websites. This will assist in customer convenience and as
a result, brand value of the services will be accelerated.
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