Differentiation - Competition - and Pricing Strategies

Question: Discuss about the Differentiation, Competition, and Pricing Strategies. Answer: Introduction: The objective of the launch strategy for the vintri Resort is proper communication of the unique set of services to be offered by the resort to the discerning guests. The attempt would be to direct the focus of the tourists to the value for money and quality of the services provided by the resort. The launch of the resort should be able to allow it to communicate the brand value to the customers, develop well-knit working relationships with the concerned stakeholders and identify the needs of the clients in an adequate manner. Continued growth and differentiation would be the two set goals. It has to be kept in mind that the first impression is often the last impression. vintri Resort must, therefore, be prepared to create the best impression by making the target customers aware of the advantages of choosing this resort. The first announcement release needs to be of top class. It would be beneficial to interact with the customers with the help of a video that would encompass all the valued aspects of the resort. This video would be a strategy for attracting the attention of the consumers. It would entertain them as well as inform them about the services of the resort. The content needs to be compelling; however, it needs to be natural and polished (Perreault, Cannon and McCarthy 2013). Engagement with the consumers should be done before the launch of the resort, and this can be done through traditional as well as social media. Social media platform is an increasingly significant route for communication with the multifaceted audience. Exposure on social media needs to be maximised through Youtube, Twitter, FaceBook, blogs. The story o the hotel is to be communicated online and the potential that the resort holds needs to be shared. The launch of the vintri Resort must be done exclusively on the social media platform as many resorts have experience success in doing so (Homburg, Kuester and Krohmer, 2013). The top attraction drawing features of the resort are the spa and tour packages. Discounts on the services provided in these areas as a part of the launch strategy would aim to promote the services to the target customers. Once the customers experience the value-added services of the resort, they would be loyal towards the resort and would lead to high profitability . Offer coupons can be given out to the customer who can later avail them at the resort. This would also be a part of suitable launch strategy (Kotler et al. 2015). Promotional mix The promotion strategy of a resort needs to include the planned tools and techniques for promotions which are very vital for the hospitality industry. Competitive advantage can be achieved through a robust promotional strategy when applied suitably (Manuel et al. 2013). The most significant tool that is to be used for the promotion of the vintri Resort is mass communication for advertisement. This is to be done through print advertisement and internet network. The advertisement campaign needs to pay special attention to the expected customers needs. The integration of facilities together with positive customer characteristics helps in the establishment of a positive image in the market. For gaining benefits as well as attracting customers, the resort must represent the key attributes it holds uniquely and clearly in the advertisements. Social media and digital presence are to be made felt to the customers. A high quality website would be the main form of advertisement. Apart from thi s, a regular presence in social media like Facebook, Youtube, would be highly beneficial. More digital connection implies more connection with the customers. The customers would be given a chance to review the resort sufficiently and make their choice. Interaction with the customers through the internet would give the scope of interacting with the customers as per their convenience and without any enforcement (Mok, Sparks and Kadampully 2013). The other domains where vintri Resort needs to give attention to for making the promotional strategy better are personal selling, public relation, and direct marketing. Personal selling would be a good approach for targeting the domestic customers in the highly competitive market. Relationship with the domestic market can be built with the personal selling approaches. A number of activities can be considered for reaching to the target audience. Brand image improvement is achieved through this process. Public relation approach refers to the endorsement of services through the demonstration of the resort as a competent member in the local community. A positive word of mouth would be spread through this approach and a strong customer base would be formed. Direct marketing can be considered through public relation agencies and travel agencies. Contact with corporate organisations can be established through these channels and after a meeting with them on can enter into a contract. This wo uld bring higher profitability for the resort. The agencies would be responsible for direct marketing and promote the services of the resort to the customers (Dev 2014). Yang, Zhang and Mattila (2016) highlight some key promotional strategies for resorts. vintri Resort can offer special discounts and deals in the low seasons, commonly called seasonal promotions. This would curb the potential revenue loss in low seasons. The seasonal promotions can be tailored as per the needs of the customer so as to cater to a broader range of customers. Rewarding the guests would make up a loyalty program. This would make the customers choose this particular resort over others in the competitive environment. Promotional events, in the form of games and contests, would boost the revenue by attracting locals. Pricing vintri Resort must have a proper understanding of differential pricing for achieving optimal revenue. A strong foundation for pricing structure needs to be established. Pricing is to be decided after matching the prices with the competitors. While one service can be of the same price, another service can be of a higher price. This would enable the deal-seeking guests to choose vintri Resort over the other resorts in the same area without missing an opportunity to make more profit. The rates are to be set at unrounded prices. This is an old but effective technique. This method of pricing is considered as a common pricing strategy, referred to as the psychological pricing. If the price is $99 instead of $100, the price is psychologically perceived to be much less despite the actual differences. Sales are reported to be boosted using this pricing strategy (Becerra, Santal and Silva 2013). The prices of the most basic services are to be set at the cheapest rate, and the other services ar e to be set close to that of the competitors. This helps in capturing the middle market, as well as higher and lower market at a go. Being better among the rest is the key to success (Repetti, Roe and Gregory 2015). Delivering some extra services helps in justifying the price increase in case the services are set at the high price as compared to competitors. A high standard is set thereby that indicates that the resort holds higher value. This makes consumers pay more for. Pursuing this strategy vintri Resort can deliver the values promised (Enz, Canina and Rest 2016). Distribution The main motto of the distribution in the hospitality sector is to utilise different channels for finding customers and help in making the purchasing more swift process. There are a number of channels that resorts and hotels can use for reaching to the target customers. While selecting a channel for distribution, the resort must have a proper understanding of the target customers and their choices (Schegg et al. 2013). The most efficient distribution channel for vintri Resort would be direct to customer through which the hotel can communicate with the customers in a direct manner, with no involvement of any intermediaries. It is desirable that the customers do the booking at the front desk of the resort directly. In such cases, customers can also book the next reservation at the time of checking out after a stay at the resort. The internet has also opened new avenues for customers to get in touch with the resort and book as per their convenience. This form is also a way of directly c ommunicating with the customers. Hotel services are consumed in a real-time environment. The services regarding distribution must, therefore, be carried out in a convenient manner to the larger population of customers. vintri Resort would maintain a front office around the clock so that the concerns of the clients can be faced at the time of their need. The flexibility would help in attracting the travellers. Customers should be able to contact the resort through fax, email, and telephone. vintri Resort needs to have a website citing all the details of the resort. Customers can make their reservations via the hotel website. When a customer makes a reservation in the resort, the customers can pay for their booking just before the arrival. This would lead to advance sales, a crucial aspect while selling hotel room (Stangl, Inversini and Schegg 2016). Development of information communication technology (ICT) along with the growth of the internet and computerised systems would make a pr ominent impact on the distribution network of the resort. The internet would be the direct channel between companies and customers. It would increase the choice of other channels using which booking can be ideally done. The Internet is gradually getting a position in the direct marketing; however, in some cases, intermediaries may be more suitable in offering the services. Advantages of considering the use of the above mentioned distribution channels are that the resort can reach to the customers adequately and provide a suitable access point for the potential customers (Kotler et al. 2015). References Becerra, M., Santal, J. and Silva, R., 2013. Being better vs. being different: Differentiation, competition, and pricing strategies in the Spanish hotel industry.Tourism Management,34, pp.71-79. Dev, C.S., 2014. Strategies for Successfully Managing BrandHotel Relationships. Enz, C.A., Canina, L. and Rest, J.P.I.V.D., 2016. 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