Secondary Target Market Mix
SECONDARY TARGET MARKET M IX 13
SecondaryTarget Market Mix
Thecurrent customers of the Radisson hotels are distributed across theworld. The organization has established its more than 230 hotelsworldwide. Some of the most popular fifteen destinations include theNew York City, Vancouver, Minneapolis, Orland, Sydney San Francisco,Seattle Shanghai, Mexico and new Delhi just to mention but afew(Bekaert, 2004).
Thepsychographics of the Radisson Hotels` customers ranges fromcorporate meetings and events, business traveling to leisure timewhile on holiday. The hotel has enhanced by providing iconicbuildings with interior decorations invoking an impressive, excitingatmosphere and providing a holistic hospitality environment that isvery relevant to the modern market. The usage of the Radisson hotelsservices is illustrated from their differently branded hotels such asthe Radisson Blu, Park Plaza Country Ins and Suites, QuorvusCollection and the Club Carlson (Pacek, 2007).
Thebiggest player in the purchase process is the internet and thesupporting devices as it is used to market its various brands. Thewebsite enables customers to arrange for their travel, book a flightand their room at the hotel (LLC Books, 2010).
Theactual users include Families on leisure vacations, corporate in needof international meetings and Business personnel who are out forexploration (LLC Books, 2010).
Thecustomer is responsible for the bill by cash upon arrival, banktransfer, a credit card or using points accumulated from continuousvisits (LLC Books, 2010).
Customersenjoy the Radissons’ services in the great rooms. Other servicesinclude holiday shopping, stay and play, entertainment, love andromance, spa and relaxation and tours and sightseeing to mention buta few (LLC Books, 2010).
Thepurchase quantities range from one to thirty days of stay. Thepurchase combinations of range from both outdoors and indoors, springevents, meetings travel and entertainment (LLC Books, 2010).
Thepurchase situations involve the internet to book and pay using theircard online for the various packages, the prices and the equivalentin mega points, Club Carlson points, including mega and premiumdouble and standard. The clients also have an alternative of using acombination of both points and cash (LLC Books, 2010).
Heavyusers of the hotels include corporate entities to offer training totheir employees or team building that visit in large numbers and getto use most of the Radisson hotels services and spend a substantialamount of time. Similar is families that are out on vacation. Loversout characterize the light users for a romantic night to singularbusinesspersons who are out to spend a night before embarking ontheir journey (LLC Books, 2010).
Inaddition to regular hotel services, the Radisson Hotels offercomplementary services such as free high-speed internet, twenty-fourhour room service, fitness centre and sauna, spa, restaurants andbars, complementary parking facilities meetings and conference roomsand one-touch services.
TheRaddison hotel has a high level of management, which ensures thereare no issues related to the creation of waste (LLC Books, 2010).
Customerscan book and pay for their stay online using the hotels’ website.They can also book directly from the hotel by calling the customercare or upon visit at the reception before they are admitted(Bekaert, 2004).
Thetrends for the hotels’ purchases on the internet seem to be on thehighest note. The website, apart from marketing serves as the pointof transaction for booking and making payments. In addition, the siteis a directional device for customers to establish the variouslocations where the Radisson hotel has operations (LLC Books, 2010).
Thecustomer can purchase the Radisson’s hotel services at any time oftheir liking. The Hotels services are available on twenty-four hoursseven days a week and three hundred and sixty-five days a year(Pacek, 2007).
Underthe hotels control, there seems to be customers who aim forpromotional services such as the family getaways, or the promotionswhere the customer is given a twenty percent discount by justplanning their travel ahead in time (LLC Books, 2010).
Whilenot under the firm’s control, customers seem to purchase theservices during holidays such as the Spring. They can also enjoy theservices once they realize they have accumulated enough gold pointsto pay for a stay in the hotel (Bekaert, 2004).
Themajor benefit provided by Hotel Radisson to its customers relative toits competitors is their investments in a prime location, conveniencebecause they are located near airports city centers and resorts.Others may include the outstanding services driven by the slogan “yesI can” (Bekaert, 2004).
Thefirm provides outstanding services compared to its competitors, eachmember of the Radisson team is dedicated to Yes I Can hospitality.This builds their passion for ensuring the total happiness andcontentment of every individual guest. They are ingenious, perceptiveand truly empathetic to the desires of the contemporary voyager, theyare natives on a particular assignment to convey outstandingadditional considerate concern (LLC Books, 2010).
Thecustomers appear to be exceptionally fulfilled by the hotel. This isdepicted on the review page of the hotel where customers describetheir experience and further state their intentions of paying asecond visit (Zou, 2011).
Thecustomers’ needs are expected to change in terms of new emergingconsumers of the hotel industry. The baby boomers in locations likethe USA will have a taste for gaming and excursions (LLC Books,2010).
Ashort-term transaction has the benefit of convenience. In the hotelindustry where the travelers are busy and fast, they would mostlyprefer easy and quick transactions that will set them free to doother things (Zou, 2011).
Thereare location needs by the customer. The hotel is currently located inAmerica and Asia. There are potential customers especially in Indiaand now Africa. In addition, potential customers are avoiding thehigh prices the hotel charges. Although with time and the advance inthe economies there will be more customers in a position to affordthe services (Zou, 2011).
RadissonHotels’ physical locations are strategic and create convenience.The hotel also offers points that, when accumulated, could afford thecustomer some time at the hotel without having to pay cash. Thiscreates brand loyalty. The firm has location problems where itsservices are not fully distributed in the world (Zou, 2011).
PARTC SECONDARY TARGET MARKET AND MARKETING MIX
Asecondary market defines the source of extra customers of a productin addition to those whom the product was originally offered. Thegeographical locations of secondary markets for the Radisson hotelare Brazil, Russia, India and China. The report by GlobalIntelligence Alliance on the business perspectives of emergingmarkets forecast the three counties ability to retain their leadingpositions as the world’s top emerging markets. The countries,therefore, create a secondary market for the hotels services(Bekaert, 2004).
Thedemographics of the secondary market customers for the Radisson hotelproducts are located in Brazil, China and India. Deloitte`s researchindicate there will be two key demographic drivers of change in thehospitality industry after 2015, the secondary markets will createnew patterns of Radisson’s products demand in the West and newsecondary markets in the east. These countries GDP will have morethan doubled hence increasing business travel by 73%. Theirpopulation is forecasted to have grown more than that of the US,Europe, Russia, Australia, New Zealand, Japan, and Canada combined(Zou, 2011).
Thepsychographics for the secondary markets in Brazil, India and Chinawill comprise of old citizens taste for the domestic hotel industryand young citizens with a preference for a short term domestic andlong term international travel to Asia. Deloitte established that thepreferences will be influenced by an expected growth in the country’sGross Domestic Product per head which is expected to double. Thiswill fuel growth in disposable income followed by an interest inRadisson’s products. The demand for the Radisson hotel will extendto Asian countries such as Hong Kong, Macau and South Korea, whichwill be amongst the top ten destinations for the young touristsengaging in international travel. Further evidence indicates that thetastes for tourism expenditure in the countries are observed to beincreasing and as a result, the current lucrative leisure spendingcomposed of the US, Japan, United Kingdom, China and India shallchange with Chinese and India travel expenditure expected to surpassthat of the United Kingdom. The young citizens in the countries thatspeak English are expected to travel internationally while the oldshall travel inbound. Radisson’s customers from internationaltravel are expected to increase as more citizens from these secondarymarkets learn to speak international languages. This shall create aperfect secondary market for the Radisson Hotel’s products (LLCBooks, 2010).
Thepurchasing decisions of the Radisson’s secondary markets comprisedof the Brazilians, Chinese and the Indians will be towards theconsumption of products that are environmentally responsible. Thesesecondary markets are said to be affected by the recession, which maycause their habits to change. The secondary markets shall have adisregard for luxury items that are considered environmentallyirresponsible. Regarding the consumption of the secondary marketsidentified, the Radisson hotels should include vegetarian and Halaaldiets (Pacek, 2007).
Themajor features and benefits expected from Radisson’s secondarymarkets are from increasing advancements in technology. Technologyshall ease marketing for the Radisson hotel. Additional benefits forthe Radisson hotel include the reduced customer acquisition coststhrough cheap promotions (Zou, 2011).
Themain competitive advantage of the Radisson hotel shall emanate fromtheir ability to offer products with certain characteristics such asenhanced safety and security, a variety of things to do and see,improved overall image of their holiday destinations and improvedtourist facilities and infrastructures. Further, there shall be moreadvantage if the Radisson hotel can join the lobby for an ease in theprocess of obtaining visas that are the major hindrance to growth ofthe Brazilian, Indian and Chinese international travel (Zou, 2011).
Thedifferentiation strategy for the Radisson hotel shall involve workingwith local partners in secondary markets to increase the revenues andoffering exclusive products to the customers. The products shallinclude items like new itineraries, casinos, internet cafes andWi-Fi, multi-themed Radisson’s restaurants, health and fitnessfacilities, expensive spa, basketball courts, bowling alleys, iceskating rinks, outdoor theatre, surfing pools, rock-climbing walls,volleyball courts and multi-room villas (Zou, 2011).
Inbranding Radisson’s products, the hotel shall use the internet tomake the booking experience for the travelers. Radisson’s bookingshall entail both the flight and hotel in a single transaction. TheInternet shall be the source of unlimited scope for price comparisonand increased transparency of the travelers experience on a globalscale. The Radisson hotel shall major into mobile technology to offercustomized services. Further, the Radisson hotel shall furtherenhance promotion efforts and create customer loyalty (Zou, 2011).
TheRadisson hotel shall improve customer service by involving talentmanagement and innovative talent programs. This shall includeredesigning the operating models to execute the talent strategyeffectively by engaging employees with their brands and motivatingthem to deliver consistent standards. In addition, the hotel shallobserve data security. The risk of data breach is said to be higherin the hospitality industry due to such trends as online booking, useof wireless broadband and multiple communication channels (Zou,2011).
Thecomplementary products for the Radisson hotel shall include anaddition to lifestyle brands. This is as a result of observations ofthe biggest operators in the hotel industry such as the Marriotthotels who have entered the market with a commitment to ambitiousroll-out plans. These plans are intended to seek a sophisticatedimmersion in the destination. For an example, the Marriot hotel hasintroduced Edition as their lifestyle brand while Star wood hasincluded a loft hotels and element to their portfolios (Zou, 2011).
Raddison’spricing objectives shall be aimed at equating the value to the pricefor competitiveness. Only high-quality products will fetch highprices. This is in support to the identified Brazil, Chinese andIndian travelers who are said to be price sensitive yet demandinghigh-quality goods and services (Zou, 2011).
TheRadisson’s per unit costs shall be dictated by the Hotel’sability to build a brand recognition and loyalty amongst theircustomer’s international travel. Radisson expects the per unitcosts from the secondary market to be based on the key interest inthe value of their money and interest in Western consumer brands. Ina bid to take advantage of the Chinese value for money, the Radissonhotels should bargain priced luxury brand goods to induce a majorpull. Specifically, the Radisson hotels shall be better by improvingon their dietary and language requirements (Pacek, 2007).
Thefindings of the research further advocate for the Radisson hotels toimplement structural changes that ensure an efficient and sustainablesupply strategy. Through this, the Radisson hotels will harnessadditional value by sharing services with local operators andcreating sustainable supply chains (Zou, 2011).
TheRadisson hotel shall establish wide intermediary supply channelsrunning from distribution to asset management. Operational efficiencyis the key to effective hotel management. An effective supply channelinvolves intermediaries that differentiate the hotels from theircompetitors (Zou, 2011).
TheRadisson hotels shall customize their products to be an all in oneexpedition. For example, they shall incorporate features that wereonce considered as a preserve of the luxury hotels. In addition, theRadisson’s foods and beverages shall be highly customized and therange of services adjusted to the locals expectations. The Radissonhotels shall enhance their in–room technologies in line with thecustomers’ expectations (Zou, 2011).
Thehotel’s general integrated marketing and communications strategyshall be made possible by technology. Internet has enhanced thecoordination of all elements of marketing such as marketing, salespromotion and public relations to a single force. The main advantagein Radisson’s hotels culture shall be obtained from the ability tospeak with a unified and consistent voice.
Thegeneral objectives of integrated marketing and communication for theRadisson hotel shall be to enhance the guest experience. The hotelshall make the substantial investment in recruiting and developmentto hire and maintain top talent and career paths in order to satisfyguest expectations. Budgetary constraints shall be experienced duringrecessions and create intense pressure on the Radisson Hotels’workforce.
Theelements of Radisson’s advertising and publicity shall include thepromotion mix. This is made of publicity, sales promotion,advertising, direct marketing, and personal selling. The hotel shallcommunicate with customers, employees, stockholders, potentialinvestors, channel members, government and the public to have a solidreputation and a positive image. This is necessary to attractemployees, investors, and customers. If the Radisson hotel isconsidered unethical, it will have trouble finding employees andattract unwelcome government interest.
Radisson’spersonal selling strategy shall serve as a promotional method inwhich one party uses skills and techniques to build personalrelationships with another party and both parties obtain value.
Radisson’spush promotional strategy shall aim at delivering the productdirectly to the customer through whatever means and ensure brandawareness among the customers. The hotel’s push tactics shallinvolve tradeshow promotions to enhance customer awareness and directselling to the customer
Radisson’spull strategy shall aim at motivating customers to seek out aspecific brand in an active process. It shall involve getting thecustomer close to the hotel. Further, the strategy shall push tacticsthat involve advertising and mass media promotion, word of mouthreferrals, customer relationship management, use of sales promotionsand discounts.
Radisson’ssponsorship strategy shall involve sponsoring events that seem toattract the target market. The strategy shall provide unlimitedopportunities to broaden the competitive advantage by increasingcredibility, image and prestige (Bekaert, 2004).
Bekaert,G. (2004). Emergingmarkets.Cheltenham, UK: Edward Elgar Pub.
Zou,S. (2011). Internationalmarketing emerging markets.Bingley: Emerald.
Pacek,N., & Thorniley, D. (2007). Emergingmarkets lessons for business success and the outlook for differentmarkets.London: Profile Books in association with the Economist.
LLCBooks (2010). RadissonHotels: Radisson Blu Royal Hotel, Copenhagen, Radisson EdwardianHeathrow Hotel, Radisson Lackawanna Station Hotel.General Books LLC