Corporate Business and Relationship Marketing - Case Study Example

Corporate Business and Relationship Marketing 4 Mission ment The mission ment of the Sampa Paulo hotel is to provide high quality serviceand comfort to those who are visiting the hotel. This is defined by the service standards in the hospitality industry, and includes superior service as well as extra accommodations that help each of the guests to feel at home. 4:2 Long Term Vision The long term vision of Sampa Paula hotel is to become a prime competitor in the Sampa Paula region. This will be based on high quality service and value with those that are moving into the industry. More specifically, the hotel will focus on five star accommodations and services that match the needs of customers that are in the area. 4:3 Core Values The values of the hotel will be based on providing superior service to those that are interested in staying in the area. Specifically, the hotel will provide: 1. Quality services to those that are staying at the hotel 2. Extra accommodations for those that have special needs 3. Business and leisure accommodations, including event rooms to entertainment areas 4. High end hospitality that will allow each of the customers to find comfort at the hotel 5. Smart growth and development of the hospitality industry to meet the changing demands and needs The different values will be based on the ethical considerations of the hospitality industry and what is required for those that are traveling. More specifically, the values will relate to the service that is expected by those that are at the hotel and which are providing services to guests. 4:4 Core Competencies The need to focus on hospitality and accommodations will be the two competencies of Sampa Paulo hotel. The hospitality and services will be provided through employees that have gone through standard training for both leadership and basic positions. This will help with trouble shooting for guests and will provide more efficient means of helping those that are staying in the hotel. This will also provide more efficiency for the internal structure of the hotel. This will be combined with the accommodations that are a part of the Sampa Paulo hotel. There will be a division between the business and leisure accommodations to help to meet what is needed for each type of guest that is coming into the hotel. 4:5 – Goals The main goal of the Sampa Paulo hotel is to be a leader in the hospitality industry by providing superior services and hospitality components that meet the needs of those that are staying at the hotel. The hotel will focus on the internal structure and building a component team of leaders that are able to provide superior services to the hotel. This will be combined with matching the needs of customers through the different changes required for business and leisure. The hotel will focus on changing and adding in accommodations that continue to match the driving needs of businesses, such as with technology. This will combine with different entertainment sectors that will enhance the industry and which will provide a matched set of needs for those that are staying at the hotel (Hyatt Hotel, 2010). 4:1:1 Strategic Relationship Marketing – Resource Based To meet the several goals and needs of the Sampa Paulo hotel will also be the need to focus on strategic relationship marketing through different resources. The relationship marketing will be focused on gaining higher retention of customers while continuing to find ways to attract new customers to the hotel. This will lead to a competitive advantage among other hotels and will set the hotel apart with the services that are offered through the hotel. It is known that finding resources for the strategic relationship marketing is one of the best ways to increase the amount of visitors to the hotel and specifically works with the several facets that are a part of the marketing. The resource based theory states that this is most effective when there is the ability to share valuable resources with those that are associated with the hotel in different areas (Morgan, Hunt, 1999). Objective 1: Quantitative Analysis The first strategy used for relationship building will be based on a quantitative analysis of the market share and what is available. The region of the Sampa Paulo hotel will be analyzed, which includes an analysis of the competitors and hospitality industry of the region. This will be divided by the market share that is available to show what the resources are in the area as well as how these are defined by other competitors in the region. The marketing objective at this point will be to position the Sampa Paulo hotel against the other competitors in the industry, which will help to define what other hotels are doing to win customers as well as defining the expectation and qualities that are a part of the hotel. For instance, many hotels focus on superior quality and accommodations and may divide their position by business and leisure markets. These objectives create a difference in the functioning of the hotel as well as how the hotel is able to compete. The analysis of competition will then move into an understanding of the target market. There are two main target markets that are defined in the hospitality industry. The first is business travelers, which require high technology, meeting rooms and amenities that fit with business meetings. The second target market is those traveling for leisure, which will demand a focus on extra accommodations and entertainment services in the hotel. Focusing on both of these will then provide a stronger basis for the hotel. Having high end services with these two targets will create a sense of customer loyalty and will provide individuals with the desire to return to the Sampa Paulo hotel when traveling to the area (Gronroos, 1997). The stakeholder segments will be the next observation that is a part of the quantitative analysis. The first segment will be based on concepts of tourism and those who are interested in investing in the area based on the amount of traffic they see going through the base of the hotel. The stakeholders that invest in the hotel will need to be convinced that the market of leisure travels is continuous and can bring in profits to the company. More importantly, the stakeholders will need to see that the Sampa Paulo Hotel is located in a region that is known for business endeavors and meetings. The patronage levels will be based on these two segments, with the level of consistency defining how much each of the stakeholders desires to invest within the hotel (Tkaczynski, Thiele, Beaumont, 2009). Objective 2: Brand Re – positioning The brand repositioning and competitive strategies will make a difference in how GHG and Sampa Paulo hotels are able to reach the competition globally. The brand will be built on the concept of comfort and relaxation, as well as the location that is close to a resort for the area. The main concept to keep in mind with this is to build an authentic looking brand that is able to compete with others based on the idea of comfort and high end hospitality. The other hotels that are in the competition often have corporate type structures and the same level of service. Having extra levels of comfort and setting apart the brand of the hotel through extra hospitality and small services that are extra will provide a strategic objective to the company. The more that employees’ are able to provide an extra level of comfort, the more likely that customers will stay for a longer period of time. The brand will then be able to compete globally because of the focus on hospitality, service and extra accommodations. A second brand re-position that will be used for GHG and Sampa Paulo hotels will be based on creating a culture and atmosphere in the hotel that is based on leisure and comfort. Instead of having the traditional look to a hotel, there will be a focus on building an affiliation with the local community through the hotel. For instance, having a location by the beach will also mean adding in smaller features and extra accommodations that match with the atmosphere of the area. As this is done, the hotel can be set apart in positioning and from global competition. Having a comfortable atmosphere that seems local, instead of corporate, and combining this with extra hospitality will be one of the main advantages from corporate structures as well as from regional hotels (Beverland, Ewing, 2005). 5:1 Development of Strategic Brand Relationships 5:1:1 Foundations of Brand Building To create the correct image within the hotel is also the need to create a brand relationship for the hotels. The main determination that is linked to this is based on brand equity. The equity will create a long term understanding of the main components of the hotel and how it is a part of the hotel. The equity will also define how customers associate with the hotel and what they believe about the hotel. It is essential to create an equitable brand that is based on the mission and vision statement of the company and which provides a sustainable practice that relates to hospitality. More importantly, the equity needs to have a defined atmosphere that helps to create a specific association with the hotel and which sets it apart from other competitors both regionally and on a global basis (Kapferer, 2008). The second concept that will need to be kept in mind with the brand will be based on the concept of brand loyalty. It is essential for the customers to remember the hotels and to want to come back after they visit once. This is based on the interpersonal relationship theory, which states that the more a customer can remember a brand from the services provided the more likely they will feel a personal connection to what is offered. This will create a deeper appreciation toward the consumer brand relations and will raise awareness among customers of what is available and what is a part of the hotel. Specifically, the brand needs to focus on the customer’s point of view, with continuous evaluation of what is expected with both target markets. Continuing to enhance this part of the brand of Sampa Paulo Hotels will help with the competition and will allow customers to remain loyal by remembering what is a part of the hotel brand. The brand will include everything from market capabilities with slogans, logos and a recognition of name, to specific attributes that are unique from other hotels and competitors (Fournier, Yao, 1998). The hotel industry not only includes different ideas related to basic brand building, but also is reliant on very specific concepts that appeal to customers. Measuring the brand identity that relates to hotels and the hospitality industry will make a difference in the uniqueness of the brand and will create a difference in how different customers respond to the Sampa Paulo hotels. To do this efficiently, there needs to be a measurement of performance of the brands that are related to hotels. This will lead to a portfolio of qualities that can be with the foundational brand as well as the changes that may be made in the future. The measurement will be made from the objectives of the brand, performance responses and the financial means that occur through a specific period of time. The research done will also focus on the characteristics and challenges of brands and the positioning that is linked to this. Brand equity, measures that drive the market, sensitivity to time and to the hospitality industry, profits and product categories will all influence the building of the brand and how this relates to the individual growth of the hotel (Aaker, 1996). Even though there needs to be specific services and images that remain consistent with the identity of the hotel, there also needs to be a change in some of the brand images that are offered. Many marketing theories question how the identity of a brand is one that needs to change over time. A contemporary and modern approach to brand building combined with holding onto the central values of the hotel will help to change the way that customers associate with the hotel. This will change the knowledge that customers have toward the hotel while continuing to help them identify with the brand. The changing brand image is one that will help customers to recognize several of the attributes that are a part of the hotel. More importantly, this will help customers to see that there are several values that are a part of the same hotel, which will help them to build the brand that is desired. 5:1:2 E – Business Environment While the hotel brand can be built with the physical location, this will not provide the correct communication to customers. It is more important to reach the e – business environment and the way that customers portray the hotel from a distance. Since most customers will be coming from different regions of the world, it is the e – business environment that will define the success or failure of the hotel. It is important to communicate the brand message and superior messages through this environment, all which will provide a stronger understanding of the hotel and the hospitality that it offers. More important than any other type of brand advertising, will be the ability to reach customers through a virtual portal. The hotel industry is one that is reliant on individual traveling from out of town, which means the main way of advertising and gaining a reputation will also come from being found through a virtual area while creating a reputation and image that is more effective through an online area. The first approach to take with the e – business environment is to build a brand that meets the relationship needs of customers. The logo, look of the hotel, customer service and the hospitality that is placed through the online portal will immediately create an image in the customers’ mind over the level of hospitality that is a part of the Sampa Paulo Hotels. The virtual environment that needs to be created is one that is based on the understanding of how consumers look at the brand online. The first step to creating the right level of e – business and marketing is to have an image that immediately allows customers to have a relationship with the hotel and which sets apart its image from the other hotels in the region. This will have a direct relationship to the management that is a part of the sales and will make a difference on the attraction to the hotel. Focusing on the target markets of both business and leisure, creating an image of hospitality and providing an understanding of the extra amenities are some of the ways that the brand image can be built online (Webster, 2008). To do this effectively, the Sampa Paulo Hotels will need to create an environment through the online portals. One of the difficulties with brand identity and reputation is based on the gap that is often associated with a different area. When working online, it is difficult to find the identity of a specific company. This is based on the initial images of the website as well as how this is linked to the image. The brand identity is known to have a focus on the external environment, specifically with creating a level of value to the atmosphere that is created online. The brand reputation is one that is based on the internal environment, specifically by defining the hospitality that is a part of the company and how this is associated with the company. Making sure that both the internal and external environment are communicated through an online portal and showing how this links to the other parts of the environment then creates a different understanding of the hotel and the services that are offered (Chernatony, 1999). To leverage the online brand identity, Sampa Paula will need to look at the online presence as a multi – faceted image. This will not only identify the target market and how it responds to the online presence for reservations. More importantly, there will need to be a focus on people, places and things that are associated with the hotel. The consumer brand knowledge that is a part of this is linked to the multidimensional brand knowledge about a hotel. It is important for the hotel e-business area to provide an understanding of the environment, surrounding area and the benefits that are a part of this brand. The more that information is offered on a multidimensional level, the more likely that consumers will be able to respond with a level of comfort and with an association that the hotel is able to provide quality service (Keller, 2003). The overall change that the hotel will need to make with the e – commerce solutions that are offered is based on the level of trust that customers see when they move into the online portal. The online portal will need to provide customer service that is reflective of the hospitality of the hotel. More importantly, the brand image will need to be built by showing the level of hospitality that is at the hotel. This will be combined with appealing parts of the environment and the hotel. The more that is offered is one that will create a different level of trust from the customer and to the hotel. This is important because it will create a specific consumer perception that is a part of the brand name. More importantly, there will need to be qualities online such as security, privacy, quality of information and an easy to use online experience. The more characteristics that an online area shows, the more likely that customers will immediately respond with a sense of hospitality and security (Ha, 2004). Sampa Paulo hotels will need to maintain this aspect of the e- business through images and functions of the website. For instance, images that represent hospitality and which seem inviting will show trust, loyalty and high end service and quality of the hotel. The hospitality as a main component will need to continue with the ability to find and use different functions on the website so it is simpler to create for those looking at hotel reservations. In recent research, it has been found that those who are unable to survive in the current business environment, especially through an online presence, have difficulty because of poor planning and a lack of technological understanding. Even though the brand image is built on the quality of the website, back end options also need to be available for a better experience. The strategy used will be based on the technological capacities of reaching to potential customers. The more that the information on the website is mainstreamed and automated, the more effective it will be. More importantly, CRM solutions will need to be available, which will streamline the customer management through the online portal. The more that the technical portal is able to build and maintain customer relationships, the more likely there will be a high end response. The brand building used is then required to include appropriate, relevant and consistent information. The website and the functions that are a part of this will build the reputation and brand of the hotels while creating trust and loyalty toward those that are looking at the website. Not only is it recommended that an automated and mainstreamed system be used, but also that there is the ability to work with potential customers through a deeper technological understanding. The website will need to have a sense of personalization and customization. To do this, the habits, feelings and likes and dislikes of customers will need to be defined. The solutions that come from this will need to help the customers to find the right solutions for the hotel (Ragins, Greco, 2003). For instance, if customers are looking for a leisure stay in the area, they will want to see a custom design and feel to the hotel. More importantly, the interaction and automation that occurs online should seem secure, simple and effective to use. This will reflect in the overall feel of the hotel which is based on the hospitality that is central to the hotel. The more knowledge that is a part of this and the simplicity that is used will make a difference in the building of the brand and the effectiveness that is a part of the online portal for the hotel. 6:1 Recommendations and Strategic Relationship The long term plans that are developed will include different positions as well as strategies that will help to create brand recognition, loyalty and trust among consumers both with online and offline portals. 6:2 Brand Positioning Statements and Corporate Acquisition There are two types of brand positioning used for the corporation. The internal environment and hospitality provided with services will be the foundation. The second will be based on the unique environment and implementation of the hotel. 6:3 Positioning Map Positioning will be defined by experiences, such as sensory, affective, creative cognitive associations, physical, social – identity, cultural and lifestyle. Online and offline portals will incorporate the physical and sensory experiences with the unique culture. The lifestyle associations will be based on experience and enjoyment of the new environment (Schmitt, 1999). 6:4 Brand Equity Essence Pyramid The equity metrics will begin with pricing followed by quality perceptions of the internal and external environment and loyalty. This will be measured with both online and offline associations. The self report future report will also be measured through surveys and responses of customers (Reynolds, Phillips, 2005). 6:4 IMC Objectives The objectives of the IMC will be based on presenting an image of hospitality and high end service. This will be combined with an association with an environment that is unlike any other hotel and which is able to provide the small and extra services within the hotel. 6:5 IMC Corporate Integrated Plan from Pre – Launch to Post – Launch The pre – launch will include building of a logo and images of the environment built on hospitality and a unique atmosphere. Post – launch will focus on customer loyalty through special incentive programs and word of mouth advertising. The repositioned brand for the stakeholders will be combined with this by showing how the customer loyalty grows over a certain period of time. 6: 6 IMC Outsourcing and Media Channels To effectively reach the different areas, a marketing campaign will be launched based on the brand identity. Comfort and a unique atmosphere will be a main part of the marketing campaign. Using e-commerce as a main component will include Web 2.0, integration of marketing maintenance and a building of an online identity. This will be combined with an enhancement of the site with local and regional advertising (Buchner, 1998). 6:6 E Business Applications The concept of customer loyalty will be applied with brand building through e – business applications. A secure online area for reservations as well as for customer service will be provided. There will be applications so customers can get accommodations easily. 6:7 Service Recovery and Complaint Management System Service will be the main focus of the system, which includes hospitality, service recovery and complaint management. The design of the website will allow customers to put in complaints and to recover information through a secure area. This will be combined with a trouble shooting area (Wang et al, 1998). 6:8 CRM / CEM Policies All of the information that is online will have privacy and confidentiality agreements use. This will be audited by a backend system that keeps the files in a secure area. This will provide information for complaints and will keep documents and a retrieval system for complaints (Herrington et al, 2001). 6:9 Managing the Value Chain Service Quality System The value chain service quality system will have a multistage component that will show how different customers respond at different levels. First impressions, overall relationships to the atmosphere and hospitality and overall impressions will be evaluated through surveys on the online portal (Boltonand, Drew, 1991). References Aaker, David. (1996). Measuring Brand Equity Across Products and Markets. California Management Review (38), (3). Beverland, Michael, Michael Ewing. (2005). Slowing the Adoption and Diffusion Process to Enhance Brand Repositioning: The Consumer Driven Response. Business Horizons (48), (5). Boltonand, Ruth, James Drew. (1991). A Multistage Model of Customers’ Assessments of Service Quality and Value. Journal of Consumer Research(17). Buchner, AG, MD Mulvenna. (1998). 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