This case study is written on Ramada Hotel, Multan. We discussed about marketing & segmentation strategies, the services it’s providing & how it’s differentiating itself from its competitors by its unique services. Semi structured interviewing technique is used to collect data. Ramada Multan is enjoying monopolistic position in Multan being the only four star hotel in the city. But there are many areas of improvement needed to be focused by the management to retain the customers & to increase the customer base. There is a possibility in near future that some other quality oriented hotels enter the Multan market & at that time it will be difficult for the Ramada hotel to retain its customers as it didn’t focus to develop customer loyalty among its customers. So the hotel is under continuous threat of losing its customer base.
Customer loyalty, Marketing, Strategies, Segmentation Strategies
Enterprises exist because they have a customer to serve.( Gandolfo Dominici, Nov 2010) Customer satisfaction plays a very important role in success & survival of an organization. It’s the most critical element in the provision of quality services. We have selected Ramada hotel, Multan to study how they are providing quality services to their customers. We have developed semi-structured questionnaire to collect the data.
Located in the heart of Multan City, Ramada Multan hotel near Shrine of Bahauddin Zakariya is just minutes from popular area attractions and major businesses. Its central location making the hotel the ideal spot for business and leisure travelers alike.
Greet the morning with a smile over free continental breakfast, and catch up on the news with free daily newspaper. Before you head out for the day, go for a refreshing swim in outdoor pool and work up a sweat in fitness room. Stay connected to home or the office right from your air-conditioned room with high-speed Internet access. Hotel offers guest laundry services and express checkout. Handicapped-accessible rooms, non-smoking rooms and presidential suites are available at hotel.
Positioning & Segmentation Strategies:
Hotel is positioned as a premium brand, being the only 4 star property in town. Being the only hotel in Multan of this quality, it also has a monopolistic market and its taking benefit from its first mover advantage. Currently there is no other 4 star hotel in Multan. Hotel strategy is to target new business segments such as corporate, diplomatic sector, groups and exhibitions as well as continuing business with its existing customers. Hotel management has special focus on retaining its customers through better customer services. Hotel wants to be more proactive and visible in the market place through efficient PR and marketing strategy.
Mediums Used For Marketing & Attracting Customers:
Hotel has online presence on internet to show its web existence. All the information regarding product and services is available on the website. Customer can log on to website to search out the relevant information of their choice. Online reservation facility is also available in their website where any customer can book his room and can pay in advance by giving credit card information.
For one on one meetings with corporate customers hotel also has a team of marketing individuals who meet with their prospective customers on regular basis. Appointments are set prior to meeting with corporate customers and team met with these corporate customers normally at their offices. Purpose of these meetings is to strengthen their relationships with the key stakeholders of the organization and thus getting business out of these good relationships.
Hotel also provides service of dinner invitations for key stake holders. Hotel marketing team identifies the key stake holders of their targeted corporate organizations. These are identified for sending out dinner invitations. These dinners are arranged with senior hotel management and normally business is not discussed during these dinners as these dinners are arranged with purpose of creating a positive personal gesture.
For promotions hotel also launches different promotions at different point of time to achieve their business objectives. As already mentioned that this is the only 4 star hotel in town, normally they do not require promotions to maintain their business at a certain level during normal business months. During off season, like Ramadan, they offer different promotions on Rooms because during this holy month Rooms business is on lower side. Rooms are offered at lower rates than normal. Promotions are also available on weekends as corporate business is between working days i.e. Monday to Friday and business slow down on weekends.
Hotels product includes Rooms, Banquet Halls, Food Business, Wine
Being the only hotel in town, premium pricing is charged to enhance revenues. Hotel has adopted slab based charging which offers special deals for companies producing more business.
Located in the heart of Multan City, Ramada Multan hotel near Shrine of Bahauddin Zakariya is just minutes from popular area attractions and major businesses. It’s central location making the hotel the ideal spot for business and leisure travelers.
Special offers are designed to enhance revenue for nearly all products.
Strategies & other tools e.g. MIS, CRM to track the changing customers need & expectations:
As such no Management information system is installed to track the changing customer needs and expectations. However, Hotel is using customized software that is installed to record all non-financial and financial transactions. This software collects all reservation requests and can generate reservation reports. This software is also linked with credit system and generate credit invoice for credit department. Also it can generate quantitative reports regarding which company is generating how much business on monthly and yearly basis. This software’s name is “Munshi 789”.
Strategies Used To Track The Changes In Market Trends:
Market analysis is done on regular basis and outer environment is scanned by marketing team to see business trends and information is collected from market. Normally there are no big changes in market trends as there is no other hotel of same quality which can compete with Ramada. One trend that is seen in the market is that companies are now shifting towards guest houses to release pressure on their costs. Guest houses are normally cheaper then hotel and we have now good guest houses in market like Pearl Continental has opened its guest house in Multan. This guest house has shifted some of the hotel business to its property and become a challenge for hotel. But still if we see the business volume, that guest house is offering only 20 rooms that do not pose a real threat for hotel. So hotel is enjoying the monopolistic market and does not device any specific strategy to cope up with changing market trends.
Pricing Strategy :
Being the only hotel in town, premium pricing is charged to enhance revenues. Hotel has adopted slab based charging which offers special deals for companies producing more business. There are special rates for corporate customers. Companies who produce more business are offered lesser rates. Pricing cycle is one year and rates are revised every year keeping in view the market conditions. These rates are communicated in advance to all corporate clients through a written letter.
Customer retention strategies:
Customer retention holds a key importance for sustainability of any hospitality business. Its considered to be the pillar for any service organization as it cost less in retaining old customers rather than making new customers. Management pays special attention to customer retention. Hotel is currently running a “Priority club membership” to retain its repeating customers. These customers can apply for priority club membership on any of their stay at hotel. Once become member, customers are offered different deals including discounts and free nights. Superior customer services are designed for customer satisfaction.
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