Evaluating and Analyzing Marketing Strategies for Accor Hotels

This report examines the crucial role of marketing within organizations, particularly in the context of the burgeoning hotel industry in Myanmar, using Accor Hotel as a case study. The analysis encompasses the importance of marketing in establishing customer relationships, shaping brand image, and...Read More

Hein Htet Nyo Win Aung: Batch 18/03
Task 1
1) Evaluate the role of marketing in an organization
The hotel industry has been booming in Myanmar because they have become very
effective partners in the process of economic development and they are facing with
competition. In Yangon, international-grade hotel rooms increases in room rates and
occupancy levels and international hotel chains such as Best Western, Shangri-La
and Hilton are eyeing Myanmar as the next economic frontier in Asia for expansion.
As the hotel sector is growing at a very fast rate in Myanmar, the hotel management
emphasizes the hotel units to raise their greater concern with issues of image,
promotion, service quality and customer satisfaction. Therefore, marketing play as
an important role in guiding the Myanmar hotel market. If Accor Hotel is interested to
come and invest in Myanmar market as joint venture company, it suggest that
marketing plays an important role in establishing relationships between customers
and the organizations offering to the market. Marketing shapes the image of the
organization, how people associate the organization’s products or services and
indeed give people the confidence about their products or services. Today’s market
is full of competitions and customer shifting; organizations must not focus only on
attracting customers, but also on maintaining long term customer loyalty. (Kotler,
2003)show us that to communicate with the outside the hotel unit must perform
various actions external, structured and developed based on a promotion and
effective marketing promotion strategy, allowing to get the message from the market
and acquire a wide range of information about the market, customers and
competition (Pepper, Don; Rogers, Martha ; Dorf, Bob;, 1999).Marketing is very
important as hotel may achieved the opportunity to obtaining competitive
advantages, including the ability to develop and customize service, providing
customer satisfaction, thereby increasing the likelihood of customer loyalty. If Accor
Hotel expands their market in Myanmar, they should have the strong marketing plan.
2) Analyze the relationship between corporate strategy and marketing strategy
Accor mission is for maximum operational performance & sustainable growth.
Accor Group strategy aims to meet several key objectives:
 Increase the appeal and reputation of our brand portfolio in all segments of
the market.
 Continually innovate, assert our presence in new geographic areas.
 Surprise our guests by offering them something new, with bold design
choices, new lifestyle properties, an all-new Food & Beverage strategy and
attractive loyalty program.
 Invent the hospitality services of tomorrow.
 Strengthen our presence in destinations with high potential.
 Develop leadership potential in our 240,000 talented employees.

Hein Htet Nyo Win Aung: Batch 18/03
 As a civic-minded Group that shows solidarity, continue to commit to our
PLANET 21 sustainable development program and show the way for the
whole hospitality sector.
Accor Marketing Strategy
The mission and vision of marketing is to keep the present customers for continuous
growth while looking for new customers to purchase their product. (Kotler, Philip;
Armstrong, Gary;, 2004)
Accor Hotels group’ marketing vision is “Because each of our guests is unique, our
brands meet all your needs. All your wants. From luxury to economy, across the five
continents, you'll be amazed”.
Service marketing mix are 7Ps: product. price, place, promotion, physical evidence,
process and people
Product
The products of hotel are primarily designed to satisfy the needs and wants of
business and leisure travelers. Hotel rooms can vary in quality or in services they
offer and is targeted to consumers who usually have the need for a specific type of
room. Hotel services are accommodation, food and beverage, business services and
leisure. Accor hotel has distinct patterns and styles based on its logo that defines its
approach to the accommodation, hotel, and meeting room service provision.
Functionality of the hotel is a relationship between production and consumption,
Production a service involves several departments in hotel from human resources,
operations, personnel and other departments that contribute to the final process of a
service for customers needs. Hotel service need being safe or protected against
physical, social accident or harmed. Furthermore, safety is regarded as protection
against climate, home invasion, as well as safety against harmful or dangerous
things like home appliances, stairs .e.t.c
Price
The price rates are different for different customer classes depending on the needs
of the customer and value as the customer can afford. Price for event rooms and
accommodation rooms are valued at almost fixed values. On the other hand, the
dining department has no specific value for meals. The hotel applies skimming
pricing strategy during peak periods operating at high prices. This allows the
company to maximize its profits during the peak seasons. The hotel used seasonal
pricing where hotel services price are reduced during low season and raised during
high season. Price discrimination is a common approach in hotel. The local guest are
offered services at lower costs as compared to tourists. The payment for customer
are credit, debit or prepaid payment.
Place

Hein Htet Nyo Win Aung: Batch 18/03
Hotel’s location decision needs to take account for visitors and therefore they usually
examine carefully which hotel and where they choose. The location of the hotel
affects the transportation from the airport or the city center. Hotel transportation
modes are truck, air, water, rail, and pipeline, and the internet as transportation
mode. The company website provide as distribution channel where clients can make
requests for their service quickly and fast.
Promotion
A hotel can use different websites to advertise their products and services and also
use brand identification to their advantage. The most common promotional strategy
for hotel is the incentive trips. These trips attract on potential customers. Hotels are
also offered deluxe packaging that ensures potential customers are motivated to
choose our hotel. Moreover, the Accor offer a discount program that is designated in
specific periods such as weekends where the customers are offered discount. Hotel
can use push promotion strategy as the customers are welcomed from the main
entrance and escorted to their rooms presenting a positive impression from new
guests. Accor Hotel can employ in advertising are media and print advertising such
as billboard which allows customers to access information on the services offered by
the hotel, the style, patterns as well as the offers available. Marketing team should
send its employees to potential customers planning an event such as a wedding,
conference and seminar as an approach of personal marketing. The public relation
practices is the best for hotel in Myanmar and globally as providing evident from its
global position as a leader in hospitality.
Physical Evidence
Accor Hotel is interested in creating a guest and customer friendly, safety, secure
and green atmosphere in their environment. Good customer experience is extremely
important for generating repeat business and also business from new customer
through positive word-of-mouth. As the hotel service is intangible, the physical
evidence plays a major role as a proof of the product that is going to be delivered. In
the enrolment, the buildings, facilities of the hotel campus and all the other tangible
evidence foster the quality of the service that is going to be delivered. All the physical
evidence contributes to the first impression to image of Accor Hotels among the
international hotels such as Best Western, Shangri-La and Hilton. With guest
preferences’ Myanmar traditional Arts and decoration, Wooden furniture and
beautiful paints and Myanmar culture antique, Accor create a welcoming ambience.
This creation will deliver the foreigners guests and local guests to have refreshable
and comfortable feeling as they can enjoy easily the services and the treasure. Hotel
rooms are deco-styles rooms and the suites are bright with creative artwork and
large open windows that provide a good view of the city to the customers during their
stay in the hotel. Also the rooms are complete with desk, min chaise and marble
bathrooms.
People

Hein Htet Nyo Win Aung: Batch 18/03
The right people at the right place are a key to develop success for hotel services
providers so that the staffs’ ability is linked to deliver in a correct manner. We believe
that quality and reliable service can be delivered to our value customers by investing
the right staffs with working passion, open minded and good communication skills.
The customers may be influenced by the number of qualify and disciplining staffs
and guides. The service staffs also interact with prospective customers at check in
and out. They are an important role of service, as high contact on communication
and interactions with potential customer and community. Reception staffs engage
with the check in and enrolment process as they deal with customers and their
requests. The management team of the hotel is supported by the director, general
manager who is responsible in general administrative affairs.. The staffs usually
undergo the training. All the employees of Accor are provided to create pleasant
working environment.
Process
Four key operating processes in the hotel are: 1) the process of hotel housekeeping,
2) the process of supplying necessary inputs, 3) the process of guests arrivals and
departures and 4) the process of producing and serving food and beverage.
Supporting processes are: understand markets and services, develop vision and
strategy, design hotel products and services and market and sell. Understand
markets and services comprised of three activities: determine customer needs and
wants, measure customer satisfaction and monitor changes in market or customer
expectations.
3) Assess how marketing strategy is developed
Marketing Mission
Accor Hotels group’ marketing vision is “Because each of our guests is unique, our
brands meet all your needs. All your wants. From luxury to economy, across the five
continents, you'll be amazed”.
Service Offering
Service: high-quality facilities accompanied by exemplary personal service,
differentiated from competition in line with the overall brand strategy has proven to
be a successful approach generating high levels of repeat business.
Positioning

Hein Htet Nyo Win Aung: Batch 18/03
The Accor Hotel is positioned as a five star plus, business traveler's hotel,
strategically located and offering a high level of personal service. Our focus is on
offering our guests added value and differentiating ourselves in our levels of
personal service. We provide a quality hotel experience where guests are valued,
respected and their business is truly appreciated.
Establishing Business Units
The first step to develop the marketing strategy is to analyse its current business
portfolio and determine which businesses should receive more, less, or no
investment. Second, it must shape the future portfolio by developing strategies for
growth and downsizing,
Portfolio analysis enables to evaluate and describe the situation of strategic business
units. It may mean a production division, plant, retail store of a chain, product range,
product brand or a different, relatively independent unit. The actual portfolio analysis
should tell us what to do with a particular strategic unit - whether to build, maintain,
develop, slow down or cancel it.
According to Boston BCG, the profitability of strategic business unit depends on two
main factors - market share and the rate of growth on the market.
The use and presentation of the Boston matrix can be illustrated as follows:
SBU1 is target customer Luxury, high class: (star)
SBU2 requires high investment to move to "star" quadrant so it must be considered
whether this
SBU3 is perspective or cancel it as it brings only small profit. This situation is the
most difficult to decide, the market is growing but we have very low share in it.
SBU4 is target customer : Economy and midscale ( question mark)
"Star" means perspective but also difficult state which requires significant
investments into further innovation to keep up with competition. On this highly
dynamic market, we are trying to achieve higher market share using costly promotion
SBU3 is target customer All range (Cash cow)
Milking Cow" is a perfect situation, it does not require many investments, not to
promotion at least, but it brings high profit which is at its maximum. SBU uses it high
market share, it may afford to set higher prices than competition and it expands it
sales geographically
SBU 4 is target customer Economy and budget (Dogs)
"Dog" does not bring any profit but it wants to increase its share which requires
investments. This SBU should definitely be cancelled or sold. It will probably never

Hein Htet Nyo Win Aung: Batch 18/03
be successful and the only question is whether it might be useful for something
before it is destroyed
In Myanmar hotel industry, The most attractive SBUs for international chain of hotels
is the international hotels for luxury, midscale and economy target customer.
Portfolio analysis is a summary of strengths of strategic business units in
markets and shows how perspective they are. Together with a SWOT analysis it
offers some important information and an evaluation of an initial situation for the
creation of a strategy.
SWOT Analysis
SWOT Summary
The following analysis highlights the internal strengths and weaknesses of our
organization and the opportunities and threats facing the company in our external
environment. We must work to improve our areas of weakness.
Organizational strengths must be leveraged in order to capitalize on external
opportunities as they arise, and contingency plans formulated in order to deal with
threats presented by the environment.
Strengths
Strategy: established differentiation strategy.
Structure: flat, decentralized structure.
Skills: diverse range of service skills within management and staff.

Hein Htet Nyo Win Aung: Batch 18/03
Style: strong, participative culture.
Staff: specialized and experienced staff that are motivated and highly skilled. A well
trained team who are proud of their hotel and respect and promote the brand values.
Shared Values: clear and well communicated.
Brand Strength: brand values well represented engendering brand loyalty amongst
existing and new guests.
Reputation: a strong reputation within the global market and corporate and travel
trade markets for reliability service and quality.
Weaknesses
Strategy: differentiation strategy needs to be more clearly communicated externally,
within local and international markets.
Systems: formal systems result from the detail oriented work and environment.
Interdepartmental communications could be improved.
Staff: seasonal turnover requires ongoing training and orientation of new staff.
Facilities: certain rooms require renovation and upgrade as regards technical
equipment, such as high speed Internet access and laptop links.
Opportunities
Market: FDI attractiveness and legislation, there are still a very few number of
International Joint Venture Hotels with global services. Accor has established a
name in hotel operations so merger and acquisitions not only in hotel industry but
also in other business like restaurants and travel which is easy for growth strategies.
Competitors: little competition exists at present, in terms of the five star 'boutique
business property' niche.
Suppliers: strong, long-term relationships established with suppliers.
Guest Dependency: repeat corporate business based on personal service and
quality, in a small but luxurious environment.
Threats
Market Entry: potential for a competitive, global brand to enter the market with a
similar product.
Substitutes: fully furnished and serviced business apartments offering lower daily
rates.

Hein Htet Nyo Win Aung: Batch 18/03
Economy: recovery from slight recession may take time. they have to face to risks of
foreign currency fluctuations
Strategy Formulation
The Market Development Strategy is suitable for Accor corporate growth strategy to
Myanmar through the introduction of current products to new markets. Accor is used
when they have identified markets that were previously unidentified or when it wants
to expand its market reach. They need a number of tactics to enter and develop a
new market for existing products.
 Focus can be turned to new and untapped geographical areas
 New pricing procedures can be used to attract new target audiences
 New distribution channels can be created to offer products in new ways and to
new customers
Task 2
1) Internal Environmental analysis
Customer analysis:
Accor hotels chain mainly targets luxury and high class people from not only
Myanmar but all over the world. Since it is a five star hotel and fare of the rooms and
the service are expensive normal middle class people cannot afford to stay. So the
main target audience of the hotel is the high income luxury class people who are
ready to spend to get high quality customer service. Accor hotel provides high quality
service to its customers so that it can create a brand trust in international market.
The main target audience is the tourists from all over the world. The main focus on
customers of the hotel are luxury travellers.
Company overview:
Accor hotel is a French hotel under the Accor group of company. It is a luxury five
star hotel that is spread across forty countries. All the Accors hotels represent
French beauty and tradition.
Competitor analysis:
The main threat of the Accor group of company is from its competitors. The
competitors of the Accor group are very smart and are very famous worldwide. Some
of the famous competitors are Chatrium, Marriott, Shangri-La and Hilton hotels. The
competitors of the Accor hotel compete in terms of price, service, facilities that they
provide and quality. The number of competitors is on rise with new entrants
constantly entering the market.
Staff:

Hein Htet Nyo Win Aung: Batch 18/03
Every customer expects to be treated in the most hospitable and best manner
possible, thus Accor staffs are well-trained and efficient when it comes to dealing
with the customer
2) External Environmental analysis
Political Factor
Political factor is similar with legal changes. After changing the new government and
as the result of changing policy, regulation, there can have substantial progress in
political stability, decline in international pressure, escape from sanction, increase
interest of international investors in Myanmar.
Economic Factor
Economics factors are often effected by social changes. According to the CATA
report, Myanmar may be strong economic growth 7% per annum to 2018. Currency
rate is very fluctuate in last some years ago. Recently, central bank is controlling the
currency rate to be stable.
Social Factor
Social factors relate the habit of tourist as well as the general public. Myanmar Hotel
Industry has the huge potential because of both business purpose and leisure
purpose travelers. Visitor Arrival is growth year over year. (Lwin, n.d.)
Technological Factor
Technology factors play significant role in modern business. Myanmar depends on
technology imports and foreign investments to transfer technology and know-how
into all sectors.
Environmental Factor
Sustainability is a key concern in tourism industry. The focus has now shifted on
ecotourism. United Nations has also recognized 2017 officially as the International
Year of Sustainable Tourism for Development. Other environmental concerns are
also important for tourism operators including transport operators and the hotel and
restaurant brands. From managing ecological impact to waste management, all
these concerns are important for the tourism operators. One even important thing is
the impact of weather conditions on travel and tourism. Even the airlines industry is
impacted directly by changing weather conditions. Airplanes cannot fly in stormy
weather and if a disaster happens, it affects the entire industry. Hotel service is
based on seasonal tourism and how changing seasons affect demand and supply of
tourism in various areas. Tourists would not like to go to places closer to the equator
in hot season. Thus, environmental or ecological factors have a major impact on
tourism industry. Cities that are greener and cleaner receive tourists in larger
numbers.

Hein Htet Nyo Win Aung: Batch 18/03
Legal Factor
Legal Factors refer to the government legislation that places constraints or
obligations on target industry. Government established new foreign investment law in
Myanmar for wholly – owned and partly –owned or joint venture with local partner.
The foreign investor can be 100 % owned and have got 5 years tax incentives and
50 years land lease and 10 years extension for 2 time continuously.
3) Competitors Analysis
Hotel industry is the growth market in Myanmar. Therefore, we should make
our services differentiate from the competitors. In Myanmar, international
Hotels are Sedona, Shangrila, Hilton, Chatrium, Melia and Lotte. We are
same industry, same geographic area and same target market with them.
Direct Competitors
To build competitive advantages, we analyze the competitors by their
services, facilities and curriculum. We need to benchmark their competitive
strengths. They are competing for better for Luxury and high class customers
Competitor Analysis
Name Melia Chatrium
Established year
Location Bahan Inya
Level Five Star Five Star
Room rate
(US$)
131.87USD-
1156.92USD
109.34USD-
1311.55USD
Services
and Facilities
Wi-Fi,
Concierge
Luggage storage
Babysitting
service,
Business Center,
Limousine
service,
Shoeshine,
Medical services,
Smoking and non-
smoking rooms,
Swimming pool,
Wi-Fi, Welcome
drink, Buffet
breakfast, Room
servicing, Turn
down service, Tea
and coffee
making facilities,
24-hour room
service, Business
Services, Club
Lounge,
Swimming pool,
Fitness Center,

Hein Htet Nyo Win Aung: Batch 18/03
Fitness Center,
Spa
Spa
Service Provider Local/international Local/international
Target Market Positioning
We will consider position in the target market. Accor will position as a best
services in the market and inspire customers with satisfaction. Competitive
strategy is used with differentiation strategy. Adapting to that differentiation is
the inevitable price of service, high standards, and loyalty to the customer.
According to (Kotler, 2003), Accor is in the position “strong”. They
don’t control behavior of other competitors, but can take independent actions
without endangering its long-term position. Other competitors’ actions do not
have a notable impact on its position.
The competitive strategy is market challenger. A market challenger is an
organization as strong, but not dominant position that is following an
aggressive strategy of trying to gain market share. It typically targets the

Hein Htet Nyo Win Aung: Batch 18/03
industry leader. They assess the strength of the target competitor and
understand the (amount of support) that the target can might muster.
Target Market Segmentation
Geographic
-Downtown area, Yangon District
Demographic
- Age : 30 years and above
- Gender : Both male and female
- Family size : 1-3, 3-5, 5+
- Income : at least $30,000 per year
- Occupation : white-collar jobs or other professional positions
- Social class : above Middle Middle Class
Psychographic
- Personality Traits: Ambitious, Brand
- Lifestyle : Active modernize people who want to experience Luxury
and Healthy lifestyle.
- Opinions, attitudes, interests and hobbies: Travelling, Food, Fashion,
Technology, Relax
- Degree of loyalty: Brand loyal and are attracted to the brand base on the
experience, reviews, image and reputation.
- Occasions : Business, Family Trip, Vacation.
Behavior
- Benefits : Customers want Comfort and Excellence Service and
Facilities
- Decision roles :
- Customer status:
Implementation
The next step is to consider implementation decision the who, when, where
and how.

Hein Htet Nyo Win Aung: Batch 18/03
Organization Structure of Accor Hotels
Accor Management design market department that would carry out marketing
strategies and plans. The head of marketing department is chief marketing
officer. Under the control of him, the various heading is put as sale manager,
advertising manager, customer service manager, product manager,
international market relation manager.
Control
Chief marketing officer take the responsibility of development, implementation
of marketing plans and control marketing. He sets specific marketing goals.
Then, he measure its performance in the marketplace and evaluates the
causes of any differences between actual and planned performance.
Management takes corrective action to be right manner. It may require
changing the actual programmes or even changing the goals. The respective
manager check ongoing performance against the plan for his or her team and
take corrective action.

Hein Htet Nyo Win Aung: Batch 18/03
Bibliography
Kotler, Philip; Armstrong, Gary;, 2004. Principle of Marketing. 10th Edition ed.
s.l.:Pearson Education Inc..
Kotler, P., 2003. Marketing Management. 11th Edition ed. s.l.:Pearson Education
Inc. .
Pepper, Don; Rogers, Martha ; Dorf, Bob;, 1999. Is Your Company Ready for One-
to-One Marketing?. Harvard Business Review.