1) In what ways is product strategy linked to product decisions? 2) Today’s hote
ID: 393902 • Letter: 1
Question
1) In what ways is product strategy linked to product decisions?
2) Today’s hotel and cruise customers are more aware of their requirements and personal needs. Therefore, they expect hotel owners and cruise companies or managers to acknowledge their individual needs, and expectations. Hospitality/cruise marketing is one of the most segmented. There is a wide spectrum of different accommodations from motels to luxury hotels and spas and cruise lines. How and what are some of the ways these specific companies use segmentation to position and differentiate themselves to gain customers and market share? Give at least one example of a hotel or cruise line’s positioning.
Explanation / Answer
1. A product strategy is derived from the need of the consumer and the demand that is generated in the market. In this scenario, there might be two possibilities like create a new demand for the product or create an innovative way to fulfill an existing demand. It is very important that organisation's know their competitors strategy to position the product and accordingly they should frame a strategy to overcome them and build their own competence over the product.
A product strategy therefore, comes along with the product decisions. In other words, product decisions is an end result of a product strategy. For example, if we want to push a particular product in a certain market, then we need to build a product strategy to promote the product and then make changes in the already existing or a new product which would be customised according to the need of the customers. Mc Donald's is one very famous example in this case, where they change their menus and strategy according to the market they serve in. You will not see a same advertisement or a same menu in Mc Donald's store in America compared to a Mc Donald's store in India.
2. Hotel and cruise industries are service industries and providing a unique experience to their customers is their main motto. Therefore, to ensure that they provide a unique and satisfying experience to their customers, they need to unerstand the type of customers they can expect and what would be their need or preferences. Below are some ways by which these companies use segmentation to differentiate themselves from one another.
a. Create a niche of their own : Every member of the hospitality industry is very keen to create a niche of their own. They want to be recognised as a unique player in the market where they portray their uniqueness as their speciality.
b. Understand target customer's needs and preferences - While setting up a hotel or a spa or luxury cruise, each organsiation should be aware of the type of crowd they would want to pull. For example, if its an ordinary motel, then the type of guests that would be preferring that would be someone who dont want to spend much on their stays. These people will have basic expectations while their stay in the hotel and if the motel can provide such basic amenities then they are good enough. Similarly if its a posche luxury hotel, then there will be elite guests who would be visiting the hotel. Therefore, the hotel need to make sure that the amenities, service and ambience they provide to theri guests is top class.
One very good example of a Hotel is Taj Faluknama from Hyderabad, India. Its a 7 star hotel and one of the most expensive hotels in India. Since it is located in Hyderabad which was once upon a time, the kingdom of the Nawabs, they ensure they maintain that culture in everything thay they present to theri guests. Infact, the walls , ceiling, furniture etc are all designed in a way that it looks like a palace and all guests who come in are treated as kings and queens. Since their theme is to ensure they provide the best of experiences to their guests by keeping in mind the traditional culture, they never compromise on the staff, food, service and also commitments.
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