Marketing in Hospitality: A Case Study of Radisson Blu Hotel

This report provides a detailed analysis of the marketing strategies employed by Radisson Blu, a leading hospitality firm. It begins with an introduction to marketing concepts, processes, and their application within the context of Radisson Blu, emphasizing societal and customer-focused marketing approaches. The report then assesses the micro and macro factors influencing the business activities, including suppliers, customers, competitors, and demographic, technological, and cultural factors. The relevance of the consumer market in the hospitality sector is evaluated, with a focus on segmentation based on income and lifestyle. Furthermore, the report explores the importance and elements of the marketing mix, including product, price, place, and promotion, as well as the role of various pricing policies and strategies, such as competition-based pricing. It also examines the role of promotional campaigns, including advertising, sales promotion, and public relations, and the importance of marketing research programs for business organizations. Finally, the report discusses the implementation aspects of the marketing plan, concluding with a summary of key findings and recommendations.

Marketing in Hospitality
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Table of Contents
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
A. Discussing the concept of marketing and its process in the context of Radisson Blu................3
B. Assessing the micro and macro factors which influence the business activities of firm...........4
C. Evaluating the relevance of consumer market in the hospitality sector .....................................4
TASK 2.................................................................................................................................................5
A. Explaining the importance and elements of marketing mix ......................................................5
B. Analyzing the role of several pricing policies and strategies which are used by business ........5
TASK 3.................................................................................................................................................6
A. Evaluating the meaning and role of promotional campaign or plan ..........................................6
B. Planning an advertisement campaign by taking into account suitable promotional objectives . 6
C. Analyzing the role of sales promotion and public relations in relation to Radisson Blu............7
TASK 4.................................................................................................................................................7
A. Discussing the relevance of marketing research program for the business organization ..........7
B. Assessing different media for the marketing the luxury suits which are offered by Radisson
Blu....................................................................................................................................................7
C. Discussing the implementation aspect of the marketing plan ....................................................8
CONCLUSION....................................................................................................................................8
References............................................................................................................................................9
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INTRODUCTION
In the present era, marketing is one of the main parts of each and every sector which helps
business organization in fulfilling its aims and objectives. Marketing activities or practices helps
organization in developing awareness among the customers about the products or services offered
by them. In this, by preparing distinct marketing mix company can influence the decision making
aspects of target market. Hence, hospitality sector places high level of emphasis on marketing
aspects with the aim to enhance the customer base and profit margin.
The present report is based on Radisson Blu which is leading hospitality firm of UK. It
offers luxury suites and accommodation services to the customers which make its stay experience
more memorable. Radisson Blu is US based hotel which offers accommodation or stay facilities to
the customers at international level. It offers wide variety of the services to customers or guests
include spa, gym,bar, pool, puff, disc etc. Vision of Radisson Blu is to become the leading
international hotel chain. Mission of the firm is enhancing customer base and profit by offering the
unique services to the customers. The main objectives of the firm is to offer quality services to the
guests at affordable prices which make their stay experience highly joyful. In this regard, it will
shed light on the aspects of marketing mix, promotional aspects and research & development
activity.
TASK 1
A. Discussing the concept of marketing and its process in the context of Radisson Blu
Marketing is the process which facilitates effectual communication between the business
organization and customers. Hence, Radisson Blu can effectually communicate to the customers
about its product or services through the means of marketing. Concept of marketing lays emphasis
on offering products or services to the customers according to their taste and preferences. There are
mainly five concepts of marketing such as product, production, selling, marketing and societal
concept (Kumar, 2010). Thus, Radisson Blu undertakes societal marketing concept which makes
focus on customers wants, company's requirement and society's long term interest. This concept
enables firm to build or sustain competitive edge over others. Besides this, business unit employs
customer focus marketing which helps it in fulfilling the needs of target market. For instance: In the
present era, customers make use of internet and social sites with the very high pace. Hence, for
providing information to the customers about luxury suites company undertakes technological
aspects such as internet for giving details to the potential and existing customers.
Process of marketing is enumerated below:
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 Mission: In the very first step, Radisson Blu needs to make focus on setting mission such as
offering innovative services at affordable prices (Yoo and et.al., 2011). In this, mission
statement will provide direction to the personnel about the performance of business
activities and functions. Situational analysis: This aspect entails that before making any plan Radisson Blu needs to
make assessment of its strength, weakness, opportunities and threats. It enables firm to grab
the opportunities more effectually by taking into consideration the strengths. Objectives: Company needs to set objectives which are realistic, measurable and easily
achievable. Thus, by framing SMART objectives Radisson Blu can motivate its employees.
For instance: Objective of Radisson Blue includes developing effectual brand image and
enhancement of market share by 20% within 3 months. Marketing mix decision: At this, Radisson Blu needs to make focus on developing suitable
marketing mix which includes product, price, place and promotion.
 Evaluation and control: In the last stage, business enterprise requires evaluating the success
of its marketing plan or strategy in against to set benchmark (Line and Runyan,2012).
Hence, by assessing deviations hotel would become able to take effectual measures within
the suitable time frame.
Hence, by considering all these aspects Radisson Blu can enhance its rating from 3 star to 5
star which declined in the previous time. Further, in order to satisfy by the interest level of society
hotel chain makes effectual arrangements in relation to waste management. Through this, Radisson
Blu can reduce the level of environmental pollution to the large extent. In addition to this, business
unit also makes use of environment friendly approaches with the aim to save energy and other
resources for next generation. All these aspects clearly show that hotel unit has made significant
contribution in the growth and development of society.
B. Assessing the micro and macro factors which influence the business activities of firm
Micro and macro factors that impacts business activities of Radisson Blu are as follows:
Micro factors: It includes suppliers, customers, competitors etc. which closely influences the
marketing activities of firm. Radisson Blu requires making focus on placing more and attractive
advertisement when competitors all do such type of activities. Along with this, when supplier of the
products or services increase then company can entice sales by offering commission to travel agent
(Dev and et.al., 2010). Along with this, taste and preferences of the customers are change with the
very high pace. In this, company can enhance sales only when it serves products or services
according to their needs and requirements.
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Macro factors: Demographic, technological, social, cultural and economy implies for the macro
environmental factors. Location, age, income etc. are the main demographic factors which closely
influence the marketing practices of business organization. Along with this, technological modes
and cultural beliefs and lifestyle of people etc. are another factors which marketing personnel needs
to keep in mind while serving the customers (Nunkoo and et.al., 2013). For instance: Upper income
class people are affected mostly from advertisements which are displayed on social sites rather than
others. Thus, by taking into account all such factors Radisson Blu can make effectual plan which
aid in the growth and success of it.
C. Evaluating the relevance of consumer market in the hospitality sector
In the service industry, customers are the main parts which have high level of influences on
the growth and development of business organization. Radisson Blu also operates in the hospitality
sector whose success in highly affected from the level of customer satisfaction and loyalty. In this,
hotel can attain success only when it satisfies the needs and wants of customers to the significant
level. Need, wants, preferences and lifestyle of customers are the main factors that impact
company's productivity and gross margin (Yoo and Bai, 2013). Hence, it is required for Radisson
Blu to make thorough analysis of each and every aspect. Further, it is not easy for the business
organization to serve whole the market in the best possible manner. Hence, Radisson Blu segmented
its customers on the following aspects:
Income: Radisson Blu can segment its customer base on the basis of income aspect such as
middle and upper class people. Moreover, upper and middle income class people prefer to stay in
the hotel which offers luxury suites and innovative services. Hence, by considering such aspect
business unit can serve customers more efficiently by preparing the distinct marketing mix.
Lifestyle: Hotel can also assess its customers of the basis of their living standard. Usually,
upper income class people give more priority to the comfort, environment, quality and uniqueness
of services rather than other factors (Leung and et.al., 2013). Thus, by targeting royal families,
couples, travellers and business customers Radisson Blu can get the desired level of outcome or
success.
TASK 2
A. Explaining the importance and elements of marketing mix
Marketing mix elements include for factors such as product, price, place and promotion.
However, Radisson Blu operates in the service industry which also includes three additional
elements such as process, people and physical evidence. All these elements are highly significant
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for the success of business organization. It offers opportunity to Radisson Blu to repositioned itself
and services offers more effectual. Moreover, by preparing suitable marketing mix hotel become
able to satisfy the requirements of customers to the great extent.
Product includes additional services such as complementary breakfast, spa, gym, bar, puff
etc. which is offered by hotel along with the room. Further, by setting suitable pricing framework
Radisson Blu can attract large number of customers. Along with this, Radisson offers booking
services through online and by the means of travel agent. Hotel makes focus on social media
marketing to promote its services (Bowie and Buttle, 2013). Besides this, firm recruits and selects
the best personnel who have ability to serve customers according to their needs and requirements.
Business enterprise also makes its interior and exterior more innovative which creates distinct
image in the mind of visitors or guest.
B. Analyzing the role of several pricing policies and strategies which are used by business
There are several pricing strategies and policies which can be used by Radisson Blu for
setting the suitable framework. It includes cost, value, demand, supply and competition based
pricing strategy (Pricing policy and strategy, 2016). Radisson Blu undertakes competition based
pricing strategy while setting the prices for products and services. On the basis of this aspect,
Radisson Blu sets suitable prices by taking into account the competitors pricing strategies and
policies. Moreover, in the present era, high level of competition takes place in the hospitality sector.
Further, now customers prefer to stay in the hotel which offer luxurious services at cost
effectual prices. In the present time, customers make selection of hotel by making comparison of its
services and price in against to the rival firms through the means of internet. Hence, by taking into
account the customer sensitiveness in relation to price factor Radisson Blu employs competitive
pricing strategy (Kim and Hyun, 2011). Along with this, demand is also another factor which affects
the pricing policy of hotel unit. For instance: Radisson offers discount to the guests during the off
season with the aim to enhance the sales of firm. On the other hand, hotel charges high prices
during summer holidays, festivals and during the peak season.
TASK 3
A. Evaluating the meaning and role of promotional campaign or plan
Promotional mix may be served as marketing strategy which includes public relations,
advertisement, sales promotion and personal selling. All these four are the main elements which
helps hotel unit in promoting its products or services. Promotional plan or campaign vital role in
making contribution in the attainment of organizational goals and objectives (Cummins and Mullin,
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2010). Moreover, elements of promotional mix helps business organization in developing awareness
among the people. For instance: Radisson Blu makes competent promotional plan for attracting kids
and their parents towards the menu offered by them. Sales promotional technique also plays a vital
role in enhancing the customer traffic, revenue and profit margin (Role of a Promotion Mix, 2016).
Thus, Radisson Blu can build or sustain competitive edge over others by making competent
promotional mix.
B. Planning an advertisement campaign by taking into account suitable promotional objectives
Promotional objective of Radisson Blu is to maximize profit margin by enhancing the
customer traffic or base. In order to attain such objective Radisson Blu needs to undertake both
traditional and modern means of advertisement. Through this, hotel unit can raise the awareness of
people towards the luxury suites and special kids menu offered by them. For this purpose, firm will
place hoarding in the famous areas of country. Along with this, business organization requires
giving advertisement on newspaper and TV channels about the discounts provided by them. Further
by dropping mail on the sites of potential customers hotel can serve information to them about the
discounts and other services offered by it (Gedenk and et.al., 2010). Hence, by following both
traditional and modern means of advertisement aspects Radisson Blu can meet its promotional goals
to the significant level.
C. Analyzing the role of sales promotion and public relations in relation to Radisson Blu
Public relation refers to the strategic communication which facilitates effective relationship
between the organization and its public. It is most effectual paid as well as non-paid means of
promotion which offers several benefits to Radisson Blu. In this, publicity of products or services
offered done by third party in an indirect way (Sunday and Bayode, 2011). For instance: press or
media presents corporate anniversaries and parties on their shows. This in turn develop awareness
among the large number of people about the products or services offered by them. Along with this,
Radisson Blu can stimulate the demand of customers by offering discounts, membership card etc. to
them. In this way, both these promotional techniques plays an important role in increasing the
customer base and profitability aspects.
TASK 4
A. Discussing the relevance of marketing research program for the business organization
Marketing research may be defined as a process in which assists business unit in assessing
the trend and preferences of the customers towards the proposed product or service. Through this,
firm can make most profitable decision by assessing the market opportunities and customer
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requirements. Program of marketing research is highly significant for Radisson Blu which assists it
in formulating the suitable marketing strategies by evaluating the needs and wants of customers.
Hence, marketing research program helps hotel in maximizing its productivity and profitability by
making proper forecast about the sales aspects.
For instance: Radisson Blu can assess the customer preferences through research in relation
to the new attractive menu which is planned by it specially for children. In this, by carry out online
survey on existing and potential customers via questionnaire Radisson Blu can gather information
about the likes and dislikes of children. Moreover, parents have better idea about the food which is
favourite of their children (Yozcu and İçöz, 2010). In this, by preparing attractive menu according
to the children taste and preferences Radisson Blu can achieve success in the competitive business
arena. Moreover, decision making of the family is highly affected by the children. In this, by
evolving satisfaction among children Radisson Blu can fulfil its mission to the significant level.
B. Assessing different media for the marketing the luxury suits which are offered by Radisson Blu
There are different types of media which can be undertaken by Radisson Blu for attracting
business executives towards the luxury suites offered by it. Hotel unit can develop awareness
among the business executives by placing advertisement on professional channels. Further, firm can
also make marketing of its luxury suites by giving advertisement on business news papers and
magazines. Along with the traditional mediums, Radisson Blu also makes advertisement on social
sites about the luxury suites, Wi-Fi facility, positive environment etc. (How to Promote Five-Star
Service in the Luxury Hotel Market, 2016). In the present era, with the aim to offer positive
environment to the personnel business unit makes focus on organizing meeting outside place (Sanib
and et.al., 2013). For this purpose, executives require better Wi-Fi facility for accomplishing its
project within the suitable time frame. In this way, Radisson Blu can attract more business
executives by highlighting such features on social networking sites. This in turn helps hotel unit in
getting the desired level of results.
C. Discussing the implementation aspect of the marketing plan
In order to provide information to the children and their parents about the special kids menu
Radisson Blu can make use of television, hoardings and social sites. Hotel unit can attract kids by
placing advertisement on cartoon channels. This in turn helps in persuading the children about the
uniqueness of served by the firm. Along with this, by establishing attractive hoardings' hotel can
gain the attention of kids to the large extent. Further, now technological awareness among the
people is increasing with the very high pace (Kumar, 2010). In this, by making advertisement on
social sites awareness among the parents can be developed by Radisson Blu about the special menu
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served by it for children. Thus, it enables firm to maximize its productivity and profitability to the
large extent.
CONCLUSION
By summing up this report, it has been concluded that by employing customer focused
approach Radisson Blu can serve customer more effectively and efficiently. Besides this, it can be
stated that marketing personnel needs to consider all micro and macro factors while framing
strategic and policy framework. Further, it can be inferred that segmentation and promotional plan
assists business enterprise in making its efforts in the right direction. It can be revealed from the
report that by maintaining effectual public relations sales and profit can be maximized by Radisson
Blu. Besides this, sales promotion strategy will also provide assistance to Radisson Blu in
revitalizing brand image and market share.
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REFERENCES
Books and Journals
Bowie, D. and Buttle, F., 2013. Hospitality marketing. Taylor & Francis.
Cummins, J. and Mullin, R., 2010. Sales promotion: How to create, implement and integrate
campaigns that really work. Kogan Page Publishers.
Dev, C.S. And et.al., 2010. Hospitality marketing: A retrospective analysis (1960-2010) and
predictions (2010-2020). Cornell Hospitality Quarterly. 51(4). pp.459-469.
Gedenk, K. and et.al., 2010. Sales promotion. In Retailing in the 21st Century (pp. 393-407).
Springer Berlin Heidelberg.
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corporate image on brand equity in the IT software sector. Industrial Marketing
Management. 40(3). pp.424-438.
Kumar, P., 2010. Marketing of hospitality and tourism services. Tata McGraw Hill Education.
Leung, D. and et.al., 2013. Social media in tourism and hospitality: A literature review. Journal of
Travel & Tourism Marketing. 30(1-2). pp.3-22.
Line, N.D. and Runyan, R.C., 2012. Hospitality marketing research: Recent trends and future
directions. International Journal of Hospitality Management. 31(2). pp.477-488.
Nunkoo, R. and et.al., 2013. Developments in hospitality marketing and management: Social
network analysis and research themes. Journal of Hospitality Marketing & Management.
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Sanib, N.I.R. and et.al., 2013. Comparison of marketing mix dimensions between local and
international hotel customers in Malaysia. International Journal of Economics and
Management. 7(2). pp.297-313.
Sunday, A. and Bayode, B., 2011. Strategic influence of promotional mix on organisation sale
turnover in the face of strong competitors. Business intelligence journal. 4(2). pp.40-42.
Walker, J.R. and Walker, J.T., 2012. Introduction to hospitality management. Pearson Higher Ed.
Yoo, M. and Bai, B., 2013. Customer loyalty marketing research: A comparative approach between
hospitality and business journals. International Journal of Hospitality Management. 33.
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Yoo, M. and et.al., 2011. Hospitality marketing research from 2000 to 2009: topics, methods, and
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Yozcu, Ö.K. and İçöz, O., 2010. A model proposal on the use of creative tourism experiences in
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Online
How to Promote Five-Star Service in the Luxury Hotel Market. 2016. Online. Available through:
<http://hotelexecutive.com/business_review/3466/how-to-promote-five-star-service-in-the-
luxury-hotel-market>. [Accessed on 4th August 2016].
Pricing policy and strategy. 2016. Online. Available through:
<http://www.referenceforbusiness.com/management/Or-Pr/Pricing-Policy-and-
Strategy.html>. [Accessed on 4th August 2016].
Role of a Promotion Mix. 2016. Online. Available through: <http://smallbusiness.chron.com/role-
promotion-mix-61417.html>. [Accessed on 4th August 2016].
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