Hospitality Marketing Essentials: A Report on Shangri-La's Strategies

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HOSPITALITY MARKETING ESSENTIALS

Table of Contents
INTRODUCTION........................................................................................................................2
LO 1.......................................................................................................................................... 3
P1 EXPLAIN THE KEY ROLES AND RESPONSIBILITIES OF THE MARKETING FUNCTION
WITHIN A SELECTED HOSPITALITY ORGANISATION..............................................................3
P2 DISCUSS HOW ROLES AND RESPONSIBILITIES OF MARKETING RELATE TO THE WIDER
ORGANISATIONAL CONTEXT................................................................................................5
M1 ANALYSE THE ROLES AND RESPONSIBILITIES OF MARKETING IN THE CONTEXT OF THE
MARKETING ENVIRONMENT................................................................................................7
M2 ANALYSE THE SIGNIFICANCE OF INTERRELATIONSHIPS BETWEEN MARKETING AND
OTHER FUNCTIONAL UNITS WITHIN A SELECTED HOSPITALITY ORGANIZATION.................9
LO2......................................................................................................................................... 10
P3 MARKETING MIX............................................................................................................11
M3 DIFFERENT TACTICS APPLIED BY SHANGRI-LA TO ACHIEVE BUSINESS OBJECTIVES.....13
LO3......................................................................................................................................... 15
P4 & M4 EVALUATING MARKETING PLAN FOR HOSPITALITY ORGANIZATION...................15
CONCLUSION.......................................................................................................................... 21
REFERENCES........................................................................................................................... 22
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INTRODUCTION
In the Hospitality Industry, marketing tactics strategy plays an essential key role in
establishing a brand, maintaining loyalty and attraction of new customers in this digital world.
Marketing managers are devoted to spending a lot of time to building a brand and creating
different events to attract new customers. In this assignment, they will discuss the role and
responsibility of marketing and other strategies which helps to build a brand in a competitive
world. An introduction of Shangri-La, Shard London which gives critically analyses of
marketing tactics and maintains the required position in the market with different competitors
like London Hilton on Park Lane. In the hospitality industry to retain effective marketing
strategies is not that easy, so that will discuss some elements of marketing mix 7Ps to
achieve the desired objectives of the company. Identifying and evaluate the competitive
market and analyses the tactics used by the company to handle sustainability. In the
hospitality industry, we see different new companies' every day with the creative marketing
strategies; at this level of competition, Shangri-La, Shard London should use direct and
indirect marketing strategies to build their brand and attract new customer to meet the
marketing objectives. Each and every organization wants to sell their product and services at
the global level; it requires basic research on the customers need, awareness campaigns,
effective relationship with an existing client and other promotional activities. They will discuss
the different marketing tactical used by the marketers to achieve overall objectives of the
organization which includes evaluating and monitoring of success.
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LO 1
The requirement of marketing in the hospitality business is necessary for the growth
in the number of customers and help to face the increased competition in the same
industry. Now day’s hospitality industry faces an increase in competition at the global
level, many companies standing to take over the customers with their creative
products and services. In that case, an organization must have some marketing
strategies to come over from these issues. Shangri-La Hotel chain develops the best
marketing tactics to fight against the other competitors which are very important for
the achievement of desired objectives of the organization.
P1 EXPLAIN THE KEY ROLES AND RESPONSIBILITIES OF THE MARKETING
FUNCTION WITHIN A SELECTED HOSPITALITY ORGANISATION
There are some roles and responsibility of marketing which is essentially required in
the company as follows:
Promotion
Promotion is an activity which is conducted by the marketing manager to encourage
the products and services of the organization in the market. Shangri-La hotel
creating business events and meetings for contact building and manage some
advertisements like a partnership with other organizations which helps to promote
brand according to the customers need (Xinyi, 2017).
Highlights the Extensive Brand
Marketing managers Shangri-La build some effective plans and procedure for
building the brands and their reputation in the market. The organization can take
locational advantages and customers directly affected by the ambience,
infrastructure and modern art in the Hotel (Forbes, 2019).
Focus on Global Customers
Everybody knows that London, UK is a Business Capital in the world. Shangri-La
has several opportunities to develop corporate events, meetings and build a
relationship with various business peoples. The organization has to target global
customers to establish branding (Xinyi, 2017).
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Implementation of Digital Strategies
To reach a client, the company must have an effective website and this must be
more attractive with different searching tools and also increase social media profiles.
With the help of social media profiles, they can set up their actual image in front of all
customers by using various information that customers need about local events
information and other different experiences. In this modern age, Shangri-La hotel
generates more than 65% revenue through online sources (Forbes, 2019).
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P2 DISCUSS HOW ROLES AND RESPONSIBILITIES OF MARKETING RELATE
TO THE WIDER ORGANISATIONAL CONTEXT
Bookings for the accommodation
There are several online applications and web sites which provide a large number of
bookings, marketing managers should be collaborating with these companies to get
better outcomes. Customers bookings should be genuine and authentic, the
manager always remembers that there is no chance to avoid such mistakes like
double bookings and customer standing in the queue. An effective hospitality system
impresses customers to build a long-lasting relationship with the organization
(Linton, 2019).
Understanding customers need
Marketing managers should know the need for customers and make it easy to find
any information about the hotel. Managers always concern about what customers
expect from the hotel. And what they get from the hotel, it will help to understand
customer needs and also help to make more fresh clients (Linton, 2019).
Competitive strategies in hospitality
In the service organization like as hotels, need to put an effective marketing strategy
in to improve their competitiveness. The organization should acquire the new
approaches and use some technical equipment to monitoring the performance of the
organization and with the help of that company improve the lack points. These
strategies are to differentiate from other competitors (A. Rauch, 2015).
Figure 1 – Search Engine Optimization SEO
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Source – Hallan, 2019
Use of Search Engine Optimization (SEO)
Search Engine Optimization is a technique used for increases of visibility of the
website to visitors of a web search engine by highest level placement in the (SERP)
Search Engine Results Page. This approach helps to boost search engine system of
the company and make more customers. This technique is also used by other
competitors but the level of paid service can move the organization's website at the
prior level (Yalçın & Köse, 2010).
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M1 ANALYSE THE ROLES AND RESPONSIBILITIES OF MARKETING IN THE
CONTEXT OF THE MARKETING ENVIRONMENT
In any business, a solid marketing strategy is critical to building a brand, attracting
new customers and maintaining loyalty. The hospitality industry is no different. ...
Understanding the importance of marketing in the hospitality industry can help you
get ahead and stand out in the competitive job market.
Marketing Environment in Hospitality Business
The primary goal of any organization is to analysis the need of customers and how
can retain satisfied customers. Customer demands and their need should be a
concern by the managers and fulfil them and this is the main responsibility which is
only done by effective decision-making process (Scott, 2013). There are some
essential factors of the marketing environment in hospitality are followings as:
“Marketing is the management process responsible for identifying,
anticipating and satisfying customer requirements profitability”
(Chartered Institute of marketing, UK).
Macro Environment
A marketing manager should understanding about the changes in different factors
like Macro factors which include Economic, Social-Cultural and Technological
factors.
 Economic Factor
Economic factor includes a different activity which directly affects the
profitability and income of the organization by the fluctuation in currency, level
of unemployment and structure of employment rate of inflation and currency
exchange rate differ in every country (Scott, 2013).
 Social-Cultural Factor
People spent too much for their comfort, best atmosphere and lavish lifestyle.
Social-Cultural activities may vary at the time of customer analysis; different
peoples choose a different option in the market according to their culture.
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Marketing should be effective by the analysis of the customer’s background
and provide them with that facility which is more suitable for them (Essays,
2018).
 Technological Factor
Technological factor includes the development and innovation of information
technology which helps to generate more business in the organization (Scott,
2013). The development of a global networking system will generate more
new contacts.
Micro Environment
The microenvironment includes the internal factors of an organization like employees
and staff, customers, vendors and other intermediaries and also external factors like
competitors and other public authorities which directly interact.
 Customers
A marketing manager should target the customers by organizing effectual
advertisement and other promotional activities. It will help to generate more
revenue (Essays, 2018).
 Employees and Staff
The key sources of growth and development are their employees and staff,
which create a healthy environment in the organization for the customers,
they provide the best hospitality to the customer for a better relationship.
 Vendors
Goods and other services required in the organization has fulfilled by the
Vendors, they provide each and everything that customers required on time.
They make possible and provide essential product and services to the
company (Essays, 2018).
 Competitors
Some business offered similar products and services on the same places; this
is a direct competition where other business groups capture the same group
of customers within the radius. They offered various substitute products in the
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market. For the marketing manager, this is the most important factor to
analyses each and every time (Essays, 2018).
M2 ANALYSE THE SIGNIFICANCE OF INTERRELATIONSHIPS BETWEEN
MARKETING AND OTHER FUNCTIONAL UNITS WITHIN A SELECTED
HOSPITALITY ORGANIZATION
The main objective of the marketing team is to generate new customers for
generating more revenue. Shangri-La hotel is one of the best Hotels in the United
Kingdom who diversify their functions in marketing activities which majorly affects the
customers with the uses simple strategies.
Evaluate and monitor the customer's review on the website that can identify the
power-lines and weak-lines of the management (Linton, 2019).
Food and beverage department
Food and beverage department is the soul of the organization; it generates more
business than accommodation. It includes restaurant, bar and cafe, this head may
help to manage the outsourcing of stocks through different vendors. Proper
advertisement and marketing of the food chain will result in effective sales (Wood,
2013).
The staff of the company
Employees and staff are the most important keys to run an effective business.
Skilled employees can manage things effectually and coordinate with marketing
management. The best hospitality provided by staff will make a tremendous
relationship with the customers.
Lodging Marketing Strategy
Lodging or accommodation is the most important sector of the hospitality industry.
When travellers are move from one place to another place, they need a place to stay
for sleep. They find a shelter to give them comfort and keep them safe; eventually,
marketing managers should identify the requirements of the customer and make
different types of advertisement which attracts them to stay in our campus (Wood,
2013).
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Marketing in Transportation
When the hotel provides accommodation, food and the services of transportation
which is very helpful to the customers to move anywhere they want (Wood, 2013).
Hotel’s management should have all arrangements of Travel and Tourism facility to
the guests. Definitely, it makes a better impression on the hotel's hospitality services.
Shangri-La hotel provides full transportation facility to their guests, peoples travel
across the world for education, holiday & entertainment and for business trips.
LO2
Shangri-La
Shangri-La Hotel and Resort is a multinational Hospitality Company. The Hong Kong
based company was founded by Robert Kuok in the year 1971. The company and
operates around a hundred luxury hotels and resorts. The company owns 5 different
brands. The company’s five-star luxury properties are located in Africa, Asia, the
Middle East, Canada, Oceania and Europe. Shangri-La Hotel and Resorts is
considered as the finest hotel and resort management Company (SHR, 2019).
Figure 2: Shangri-La Hotel and Resorts logo
Source: shangri-la.com
Hilton
Hilton is an international hospitality brand. The Hilton brand is one of the most
famous and largest brands in the hospitality industry. The hotel and resort brand was
founded by Conrad Hilton in the year 1919. As of 2017, the Hilton hotel operates
more than 570 luxury hotels across 85 countries. Hilton Hotels and Resorts offer
many attractive offers to customers. The Hilton hotels also provide the facility of
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choosing a specific room through a mobile app. The Hilton Hotel and resort has
many upcoming hotels in various countries around the world (HHR, 2019).
Figure 3: Hilton logo
Source: hilton.com
P3 MARKETING MIX
The marketing mix is the combination of various marketing concepts applied by a
company for the promotion of products and brand of the company. A marketing mix
is an important tool which contains elements which are responsible for affecting the
company product demand. The right combination of the marketing mix can result in
serving the company’s customers in a more effective way (MM, 2019).
Figure 4: Marketing Mix
Products
Shangri-La products and services include five-star luxury hotels, Shangri-La resorts
which provide relaxing and engaging vacations. The company also has clubs which
provide customers with unique opportunity to enjoy the superb facility, outstanding
restaurants and best customer service. Hilton also has a lot of exciting products for
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