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Issues for Multi-National Organization - Branding Strategies: The Case of Shangri-la Hotel - Chapter I – Introduction Since 1971, Shangri-la hotel became one of the world’s most established luxury hotel brands. As a sign of success, Shangri-La managed to establish total of 72 world-class hotels not only within the Asia Pacific region but also in Middle East, North America, and Europe (Kuhm, 2011; Shangri-La, 2013b)…
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Download file to see previous pages In general, this study presumes that the potential success of Shangri-la hotel was very much dependent on the company’s ability to meet the needs and wants of prospective clients. Therefore, this study aims to address the following research questions: (1) What are the branding strategies currently being used by Shangri-la hotel?; (2) How does Shangri-la hotel benefit from its branding strategies?; and (3) What is the significance of brand positioning and branding within the modern international tourism industry? Chapter II – Literature Review 2.1 Current Branding Strategies of Shangri-la Hotel First of all, it is essential to take note that the target customers of Shangri-la are the influential people who are able to pay first-rate price for its food and lodging services. Meaning, this particular hotel company has positioned its brand as one that offers luxury hotel products and services (Shangri-La, 2013a). This explains why Shangri-la continuously serve the best quality products and maintains its stylish, modern, and motivational architectural and interior design (Shangri-La, 2013c). As a result, Shangri-la created a competitive advantage which allows them to charge its customers with hotel accommodation fee much higher than the fee of other hotels worldwide (Schmitt and Rogers, 2008, p. 79). Generally, multinational companies such as Shangri-la uses a global advertising strategy as part of their global campaigns (Jiang and Wei, 2012). To establish and reinforce Shangri-la’s brand image, the top management of this particular hotel group uses either social networking sites or e-mail when advertising and promoting their special offers on bridal packages among others (Facebook, 2013). In some cases, Shangri-la has posted its special offers on bridal magazines (Shangri-La, 2013d). Customers’ satisfaction is strongly influenced by its brand image. In most cases, customers who are satisfied with what they receive from the hotel may end up developing a stronger brand recognition and eventually remain loyal to the brand (Clottey, Collier and Stodnick, 2008). To bring high quality service, Shangri-la offers important training and development programme for the benefit of its employees (Shangri-La, 2013e). Not all people can afford the high price of Shangri-la’s accommodation rate. Associated to the brand of Shangri-la, this particular hotel company created a separate brand and eventually positioned it as a hotel that offers cheaper and more affordable rate for its hotel service (Kerry Hotels, 2013). For example, “Traders Hotel” was established to serve the lodging needs of the price-sensitive clients worldwide (Traders Hotels, 2013). To serve the Chinese community in Beijing, Shangri-la established the “Kerry Hotel” sometime in 2011 (Kerry Hotels, 2013). 2.2 Advantages of Shangri-La’s Existing Branding Strategies Advertising is necessary to create brand familiarity or make Shangri-la’s target customers feel special and associated with the brand (Fuchs, 2008). Often times, brand familiarity increases not only the customers’ ...Download file to see next pagesRead More
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