Marketing Gilligans Backpacker Hotel - Research Paper Example

MARKETING RESEARCH Lecturer’s Executive Summary The report starts by an introduction that explains the basis ofthe research. In the introduction, a glance of the chosen company is given including an overview of the target market. The next section constitutes the customer analysis section, where the customers of the chosen organization are analyzed and the base upon which they are segmented evaluated. In a nutshell the processes used in market segmentation are explained. The next section describes the positioning of the services and products of the company. The options that can be considered in positioning and targeting as well as the benefits are explained. The next section then explains the marketing mix that explains what it really entails and the examples of each of the four (product, promotion, pricing and place) mixes. The report is concluded by a brief conclusion that summarizes what the report has presented. Introduction Marketing refers to any process aimed at developing and implementing plans to anticipate, identify and satisfy the customer demands with the chief aim maximizing profit margins of an organization or business. Marketing research forms the arsenal of market analysis. This entails identifying the customer’s requirements, planning an appropriate marketing mix culminating into a good entry into the market. Gilligan’s Backpacker Hotel is located in Australia. The hotel that operates the entertainment industry provides attraction to visitors from all over the world (global and local). Its strategic location makes it accessible by the visitors. This hotel is the leading youth hotel resort in Australia. There are not many aged individuals above the age of 55 years that frequent the place as there are the youths. The services are amazing including accommodation, fully conditioned hotel rooms with ensuite, and the traditional backpacker, from where it draws its name. Additional services include free Wi-Fi, stunning Lagoon swimming pools, free transport from the airport, and free line provision among others (Ooi & Laing 2010). Entertainment facilities in the place include open deck bars, supporting events, plasma television, and outdoor pub screens (Crea, 2013). With all this in place the hotel is frequented by youths and adults aged below 55 years. Customer Analysis As previously stated in the introduction, the gap that exists in Gilligan’s Backpacker Hotel is that of the customers or rather visitors who visit the premises. The customers segments can be described depending on a plethora of niche specialty that then determines the target. Customers differ in tastes as well as preferences. This notwithstanding, price points also affects determines the customer segments. Gilligan’s Backpacker Hotel attracts a considerable amount of customers most of them being youths and adults below the age of 55 years (Crea, 2013). However, the youths and the customers can further be divided according to the services that each of them or a group needs most. The first group is the Backpackers and the solo travelers. This group usually has the taste of spending time in the city rather than the hotel premises. This translates to low profits on amenities and services offered. The advantage of this group is that they like socializing, and by so doing they are highly likely to use the services that attract other visitors such as the lounges, and the TV rooms as well as the casinos (Crea, 2013). The hotel resort being one of the luxurious also has the favor of attracting couples. This is another demographic in the entertainment industry. The romantic partners always target the rooms and the candle lit restaurants as well as high quality bedding. Young families also frequent the place, the entertainment facilities and the rooms are the center of attraction. Lastly the hotel also receives business travelers. This group is the best prized customer group because of their willingness to pay higher prices. The services they enjoy most are the free Wi-Fi, the lounge and the swimming pools in the hotel. Market segment refers to a group of potential prospective consumers who have common characteristics and wants as well as needs that make them unique from other potential market segments (McDonald& Dunbar, 2012). Strategic marketing planning can be made based on the identification, definition and targeting of these groups (McDonald& Dunbar, 2012). With this at hand, Gilligan’s Backpacker Hotel has been able to make marketing mix offers that will attract customers, formulating segmentation and product positioning moves that will ensure that the target markets are reached. The population is divided into subgroups so as to segment the customers and target them. The market is segmented in terms of products and services that are offered. The key role of segmentation is to identify specific group of people based on a common characteristics (McDonald & Dunbar, 2012). This provides the base of segmentation. The bases of market segmentation at Gilligan’s Backpacker Hotel include demographics, psychographics, geographical location, income and purchase behavior among others. Gray (2000) suggests that one common way of segmenting a market using demographics. This mainly refers to the quantitative features of a given group of people. The characteristics include age, sex, geographical location, and income. Gilligan’s Backpacker Hotel targets youths and adults below the age of 55 years based on the amenities that the hotel has. Burkard (2011) argues that any business that uses demographic to segment the market is more interested in the services that they (businesses) offer. Burkard (2011) suggests that multiple demographic characteristics are likely to be considered before segmenting the market by a business. The other base of market segmentation is psychographics, normally acronymic as IOA (Interest, Activities and Opinions). It refers to the qualitative aspects of the market referring to what people like to do. Segmenting the market in this way is normally difficult. However, being that the values, lifestyles, attitudes and, interests are predictable through customer lists, customer data can be used to segment the market. For instance business travelers, couples and families can be grouped easily. Purchase behavior also defines how the customers are segmented. For instance, depending on the services offered at the Hotel, the management is able to trace the consumers and know what they are fond of. This will create a list of purchase behavior that can be used to group the clients who visit the Hotel. The power of keeping good customer records shows itself in this segmentation. The most important thing a business should do is to learn its customers. This can provide grounds of knowing the customers who frequent the place and then make appropriate decisions (Kotler & Keller, 2009). For example, Gilligan’s Backpacker Hotel as it is now, does not have facilities that target adults over the age of 55 years. Using the current customer lists they are able to identify what to include in the place so as to attract adults above the age of 55 years. A casino would be a good move because it will give chance for the target group to visit the resort and possibly enjoy the services. Marketing efforts only become successful when there are more segments identified from the target groups. This will ensure that the cost of marketing is saved and also helps in making marketing decisions. Targeting and Position Target marketing also referred to as differentiated marketing strategy, aims at promoting products with different marketing mixes. These products or services are meant or specifically tailored to meet the needs and wants of diverse market segments (Kotler & Keller 2009). The profit margins are likely to increase in the event that the company satisfies the demands in every market segment. Product positioning is one of the key determinants of the success of the product. This is an extension of the brand image concept (Wenderoth, 2009). In a nutshell, positioning refers to the way the product is competitively defined by the consumers based on its key attributes. No strategy suits all the segments identified, thus specific targeting strategies must be adhered to. There are three general strategies of targeting a market. This includes undifferentiated targeting, concentrated targeting, and multi-segment targeting. Kotler & Keller (2009) assert that undifferentiated targeting involves viewing the market as one group with no individual segments and thus implementing a single market strategy. This strategy is only applicable where there is no competition as well as where the market is not mixed (Burkard, 2011). Concentrated market on the other hand focuses on selecting a particular segment based on the bases of segmentation. In the process focus is give a particular marketing niche. This strategy is most efficient and applicable to companies that are aiming to be competitive as well as entrants into a given market (Qian, 2013). Lastly, multi-segment targeting approach is used where there is need to focus on more than two target groups or when dealing with more well defined market segments. It employs different strategies to each segment. The benefit of using this strategy is that the product will have a wide base and also the cost is spread across the customers (Stafford & Faber, 2005). The only disadvantage is that managing such a strategy is hard since it means increased market research as well as promotional strategies that would need more costs to be incurred. Positioning refers to the act of developing a product and brand image for consumers to prefer it over others. It might also entail the process of enhancing or improving how the consumers perceive the product or service after having an experience of it (Wenderoth, 2009). A good positioning would influence the customers into choosing the product. This in one way promotes the product or service. A powerful positioning will depend on a well defined market mix of any business (Lamb et al, 2008). To position the product or service in the right way a business has to look into the market and understand its competitors in terms of products and services (Hackley, 2013). The other focus should be the benefits that are considered or being sought by the target. Having done this the business should identify the differential advantage that will be used to deliver the required benefits effectively to the market segments and targets already defined against the competitors (Lamb et al, 2009). Gilligan’s Backpacker Hotel should therefore consider making a good definition of it to the customers so that whenever they are in need of a service offered by the hotel, they are inclined to think of the resort among the competitors in the industry. Marketing Mix (Product, Price, Place and Promotional) mix Marketing entails a number of activities each aimed at increasing the consumer awareness of the product. To achieve a given marketing goal, Gilligan’s Backpacker Hotel has to use a marketing mix (Films for the Humanities & Sciences (Firm), Films Media Group., & Video Education Australasia, 2010). Singh (2012) argues that marketing mix is the combination of different marketing decision variables that are used by a given business to market products and services to the customers. The variables of marketing mix are controllable since they influence the buyer’s response to the product or service. Singh (2012) lists four components of a marketing mix including price, product, promotion and place that form the four control variables of a marketing mix. The marketing mix is never similar however similar the industry or business is. Therefore, the marketing mix should be unique and aimed at the customer demands. Product Product refers to the goods and services offered by the business (Richter, 2012). In the case of Gilligan’s Backpacker Hotel, this could be the swimming pool, transport services, the TV and the lounges that are offered to the customers (Crea, 2013). The product should be unique and able to meet the demands of the customers. Some of the attributes of a product include features, design, and performance as well as value and quality. Price Richter (2012) defines price as the amount that is paid by the customer for a product as well as service. It is determined by a range of factors including the manufacturing, distribution and storage costs (Richter, 2012). Other factors that determine price in Gilligan’s Backpacker Hotel include market share, competition and the consumer’s perceived value of a product or service. Some of the pricing strategies include skimming where the product or service is initially high then it reduces slowly, penetration pricing that allows for the fixing of the price of the product or service comparatively lower than the competitors (Rao, 2009). Rao (2009) additionally states that another pricing option is psychological pricing that entails to make the customers be appealing to the customers. Place Place on the other hand refers to the distribution channel of the goods and services. Place could be virtual or physical stores (Wenderoth, 2009). The place for Gilligan’s Backpacker Hotel is 57-89 Grafton Street, Cairns QLD 4870, Australia. Promotion Promotion mix refers to the promotional activities aimed at communicating and persuading the target market to buy the company products and services (Stafford & Faber, 2005). Some of promotion channels Gilligan’s Backpacker Hotel uses to reach their customers include special offers, endorsements, advertising, and use of trials, competitions, free gift packages, posters, joint ventures and direct emailing among others (Richter, 2012). In the current global world the best promotional method is the social media marketing (Zarrella, D., & Zarrella, A., 2011) .This includes Facebook, twitter and other social platforms marketing. Conclusion Marketing research is very essential for any business. Any business that is aiming to increase its margins must have an understanding of the market. The first step is to understand the customers, in the process of customer analysis. The next step is market segmentation whose significance as earlier stated is to divide the population into groups. The next step is targeting and positioning of the products and services of the business. Following suite is an appropriate marketing mix that will be in form of strategies to improve the product, place, promotion and pricing of the products and services. Gilligan’s Backpacker Hotel and resort should come up with the best market research, based on this report so as to compete favorably. Bibliography Bowman, D., & Gatignon, H. 2010. Market response and marketing mix models: Trends and research opportunities. Boston: now. Burkard, N. 2011. Market Segmentation and Branding in the hotel industry with special references to Hilton Cooperation. München: GRIN Verlag GmbH. Crea, S. 2013. Gilligan’s Backpackers Hotel & Resort. Retrieved from http://www.weekendnotes.com/gilligans-backpackers-hotel-resort-cairns/ Films for the Humanities & Sciences (Firm), Films Media Group., & Video Education Australasia. 2010. The Four Ps: Marketing Strategies. New York, N.Y: Films Media Group. Gray, T. 2000. 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