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Hotels in product innovation and market segmentation
Shen Han
two hotels
stage of development of economic business hotel in China is not a very clear idea, many hotels have advertised themselves as business hotel, but the lack of highly targeted marketing strategies and design of product differentiation. Some of the product design business hotel rather vague grasp of weak market demand, In addition, many economic business hotel on the application of a lack of marketing strategy for sex.
China's current economy hotel in product design relatively simple, but no obvious product differentiation and personality characteristics. Basically, the market of existing hotels regard the main objectives for the business market, which phenomenon is driven in the market arising under the original, when the market has not differentiate between a very clear need. So most hotels in the prevailing market conditions, the design of the products closely around the price, cost control and product quality of these three aspects. As market competition intensifies, they began to widely adopt brand management and chain management approach to the marketing network construction. However, as consumers mature and the market gradually expanded, the gradual differentiation of the consumer market , with different demand characteristics of consumers formed a different market groups, business travelers, vacationers and other tourism began to stratification of different consumer groups. corresponding reflected in product demand, resulting in a strong product differentiation on the drive. The figure is the development of China's economy hotel industry, a summary of the different stages:
Figure 1: China's economy hotel industry, stage of development of economy hotels
but now the differences still remain in the main building brand image, brand products corresponding differences have not been valued and implemented. from the hotel product, pricecheap ugg boots promotion, distribution channels, economic hotels current focus is to build its own sales channels, but not according to market demand to the diversification of product innovation and differentiation , price and promotion methods. Even though some hotels such as the \issues, in pursuit of the occupation in the near future as many of the market, but product differentiation and market stratification work to start no actual sex. This situation has led to a serious product homogeneity, in the future, with the the market growth continues to improve, there is no essential difference between the budget hotel product will face increasingly difficult competitive situation.
Therefore, at this stage all the advertised himself as a business-oriented hotels should organize their own design ideas, in-depth understanding of their needs of different groups of market segments based on differences in product design, to better meet the needs of business guests. Of course, the product differentiation strategy is difficult to single-brand strategy and unity, while the latter It is the vast majority of domestic economy hotel's main strategy being taken. In a single brand, product differentiation will carry the brand image and content of the unified cause conflicts, making the message the brand lost its predictability and stability. Therefore, For hotels, the future of the brand development process will face a choice: the transition from a single brand to a multi-brand, or select a niche market and continue to cut into this market with a single brand? different options on this issue will directly affect different hotels the company's future development. the choice of a multi-brand hotel, the economy hotel market segmentation and product differentiation, development will be its future focus. by different consumer groups, such as the Senior business guests, the general tourists, the market demand of young backpackers design different products and establish different brands, to form a group covering the needs of most consumers economy hotel brand group. Accor It is this pattern of multi-brand best reflects the kind of strategy: the IBIS brand's relatively superior product design, mainly for business travelers to stay for better; FORMULA 1 rather crude products offered for the young students and low-income tourists; STUDIO 6 for long-term living provide a variety of customers including the kitchen and living facilities, including apartment hotels accommodation; RED ROOF INN specifically for the North American market ordinary tourist accommodation facilities; ETAP is designed for the European market to provide accommodation solutions for ordinary tourist hotels brand.
China's current economy hotel industry has not yet entered the stage of development, but some of the economic business hotel, such as Merrill Lynch House Restaurant Group and Shanghai Dazhong Transportation Group Holdings Motel 168 has been refined and successfully market layered products. In this business Motel 168 brands popular hotels based on the successful experience of the company according to the needs of business guests and features a multi-brand strategy of economic development of the Motel 268 business hotel brand, while maintaining the economy basic features of the hotel and cost control system, based on high-quality facilities and limited services targeted for business guests comfortable accommodations and thoughtful, successful implementation of a differentiated product design and marketing hierarchical framework.
Third, the strategic development of economy hotels
As noted in the first part of this article, our current business accommodation market brewing a great market potential, economic business hotel accommodation, as a new market is being gradually recognition. But for now China's economic development status for the hotel industry, product innovation and market stratification is not implemented in practice, most hotels at this stage is of concern to capture market share and expand the number of chain . this phenomenon for future hotels homogenization of products of potential problems, market competition will also be one of the factors. To promote the healthy and rapid development of industry, economic business hotel should take some effective proactive marketing strategy, there is predictability in strategic development planning.
1, Product Innovation Strategy: According to the source of the demand for improved product quality and service
As shown in Table 2, China's commercial accommodation market the level of rich, large, medium and small businesses with high, medium and low corresponding to the accommodation needs of management vary, many other hotel products currently selected consumer groups are likely to be attracted hotels, once the economic business hotel product innovation in line with the needs of a particular group, then they will certainly have a strong group of this attractive business. This strategy calls for economic business hotel for business tourists careful and thorough investigation to understand the different source groups different requirements. in cost control and brand management, based on the product innovation to produce products to meet consumer demand for accommodation. In addition, you can also learn from foreign economy hotel product types, combined with the characteristics of the Chinese market, business accommodation, the development some of the hotels meet the consumer products business in China. For example, long-Yue Hotel Shanghai is a clear positioning of the economy business hotel products, room facilities, a three-star business hotel drawing, room decor and facilities are higher than the general economic hotel, equipped with computers, free broadband and wireless Internet access, a relatively complete functional business center, located in the business circle or near the city, the location is very convenient. and Motel 268 of the innovation will be more reflected in the economy and living in hotels business hotel and delay the integration of the product elements: the rooms facilities with reference to the standard four-star hotel, very comfortable and luxurious, equipped with a kitchen and laundry facilities, and its economic characteristics of the self reflected in the equipment style of management, self-service reduction through increased staffing, to reduce costs.
Therefore, the product innovation strategy, not only in the grasp of the market demand on the source, but also by factors existing products and other innovative products Combination to guide consumers and markets. through product innovation, changing the current homogenization of the product on the market structure to a wealth of new products to guide the market differentiation, stagger the competitive field.
2, Brand derivative strategies: single Deepening and multi-brand brand differentiation
from brand marketing point of view, the current taken by the majority of hotels should continue to deepen the single-brand strategy, a single brand can be a deep cut to a specific market, for example, in the 20th century developed the famous 70's SUPER 8 motel were always adhere to a single brand development strategy, through the motel's profound grasp of this market segment, SUPER 8 continuously improve product design, to promote the evolution of motel products, cost control, sales network construction, marketing strategy, product updates and other aspects of excellence, making the brand a motel industry leading brands. single brand strategy to deepen economic hotel for the professional enterprises, to improve product quality guarantee, and constantly deepen understanding and grasp of market segments, providing the products are maturing. This strategy is particularly suitable for power is not very powerful hotel company, when they do not have sufficient financial and human resources to develop multi-market multi-brand, the most reasonable approach is to focus on a market segment, providing the market with the most professional products demanded by consumers.
brand management is more economical business hotel companies can be considered a strategic priority. The so-called multi-brand strategy is the business according to the different characteristics of products , the use of two or more brand strategy. multi-brand strategy is often taken to the main brand and pattern of complementary sub-brand, a brand network, through the effective integration of various brands, brands tap resources and improve the value of all brands and product market competition. to take multi-brand strategy has many advantages, first of all, you can maintain the positioning of different brands and image, to avoid the single-brand extension led to the definition of the main brand of fuzzy, inconsistent product characteristics. Each brand will be produced in the minds of consumers and relative positioning of specific stable core of meaning, even to a particular culture, each brand is often only corresponds to a specific market, in multiple market segments, requires a corresponding expansion of the different brands. Secondly, the multi-brand strategy could have been affected by the main brands force, quickly open the market to prevent the loss of intangible assets, and even joint marketing through brand integration of the network resources and improve existing brands and new brand value and enhance the overall image.
Thus, the multi-brand, multi-species, multi-style , multi-market strategy can increase the price of the business economy hotel market coverage and support product diversification. For example, the U.S. market, the Holiday Inn and Holiday Inn complement each other, Lord, Vice-two brands were covered by car business travelers, tourists and the general car market. Cendant Hotel Group, a subsidiary of the business sector in the economy, AMERIHOST INN is the self-driving tours for tourists, and DAYS INN is more of a market for higher-level business customers . It is through the application of multi-brand strategy, making the hotel company to effectively develop new products, occupy different market segments.
IV summarizes
economy budget hotels business hotel in the early stages of development is only a vague concept, the current industry pioneers have been planned some unique business products and services. In the future, along with the continuous development of business accommodation market, under a variety of demand-driven economy hotel market must take a more detailed classification methods and means of product innovation and brand associated with a variety of correspondence and marketing strategies. And in this business to stay on the market diversification strategy and further development will greatly promote the economic hotel industry matures.
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