Positioning of Armani Hotel - Case Study Example

Positioning of Armani Hotel (Dubai) Contents Introduction 3 Market segments 3 Demographic variables 3 Geographic variables 3 Psychographic variables 4 Behavioural variables 4 Target Market 4 Positioning Maps 5 Positioning Strategy 7 Reference 9 Introduction The hospitality industry has grown over the years and is one of the most important sectors. Hotels and resorts form an important part of the hospitality sector; and, with economic development, the growth in this sector has also been vital and quick. This paper talks about the Armani hotel in Dubai, which was set up in 2010 and within the next two years, the hotel has been able to achieve success and is one of the most luxurious hotels in Dubai. It is preferred for both business purposes or leisure and holidays by individuals. Market segments Demographic variables According to data from the statistic centre in Dubai, the total population of Dubai amounted to 2,003,170 - out of which 1,536,380 were men and 466,790 were women. Dubai’s population has reached above 2 million with men accounting for more than three quarters of the total population. The age group of 30 to 34 years has the highest number, being 392,806, followed by 25 to 29 years, being 391125, and the smallest number exists in the age group of 70 to 74 years (Badam, 2012). Geographic variables Geographically, Dubai is one of the most attractive countries and it is a strategic geographical location alongside southern approaches and it is a vital point for crude oil. Dubai is one of the most popular tourist destinations, making it feasible for hotel industries to set up hotels in Dubai. Psychographic variables Dubai has various kinds of luxurious hotels and Armani hotel is among one of them. It can be indicated that Dubai maintains a high quality of lifestyle and high standard of living. The combination of high standard of living, vibrant nightlife, and good weather makes Dubai one of the most attractive cities for travellers as well as the local people residing in Dubai (Property Portal, 2013). Behavioural variables The hospitality sector has evolved over the years and Dubai being the favourable tourist destination; it has led to many international hotels and resorts targeting the international business traveller and leisure traveller. The international customers prefer visiting Dubai because of its lifestyle and current economic development and thus it can be concluded that Dubai has been accepted as a tourist as well as business destination for most people. Target Market The target market will be analysed with the help of four variables- Measurability, Accessibility, Sustainability and Actionability. The Armani Hotel in Dubai is one of the most luxurious hotels and resorts and it mainly targets the business class people and high end customers who have the required money to spend. Measureability: The Armani hotel in Dubai targets leisure travellers as well as businessmen and offers a luxurious getaway for conferences, meetings, exhibitions and other events (Meet Dubai, n.d). As mentioned above, Dubai’s population is set to exceed 2 million along with better economic development happening, indicating great opportunity for hotels and resorts. The main target market for Armani Hotel Dubai will be the age group of 30-34 years though not ruling out the other age groups. Accessibility: A market segment needs to be accessible with respect to geography and economy. Dubai has changed over time and has become a major business centre with a diversified and dynamic economy. Dubai tends to enjoy a strategic location and it is seen as an investment opportunity by most of the businesses (Dubai eGovernment, 2012). Armani Hotel in Dubai has targeted the business class and leisure travellers who visit the place because of business purposes and also for personal reasons. The age group of 30 years and above has the highest number of visitors or local people visiting the hotel for business purposes. Sustainability: Sustainability of target market segment is highly important and it is important for service industry to incorporate sustainability into business. Armani hotel provides its customers with high class service and best experience, thus helping in the sustainability of its current customers. In addition, the positioning of the hotel also helps in attracting most of its customers. Actionability is used to evaluate the market effectiveness of the segmented market. The target market of Armani hotel is the business class segment that happens to visit Dubai for official purposes and also the customers visiting Dubai for leisure. The target age group is above 30 years indicating similar characteristics and taste. Positioning Maps In the process of analysing the positioning map of Armani Hotel in Dubai, two of its competitors that are taken into consideration, are Burj Al Arab and The Jumeirah Beach Hotel. Both are located in Dubai and are competitors to Armani Hotel. The positioning map will be based on service and price. Positioning Map Location Service The above positioning map explains the positioning of Armani hotel with respect to two of its string competitors. The first factor considered is service since it is hospitality industry and service tends to play the most important factor; and the second factor is location. Based on the two main factors, the positioning map was incorporated. It has been learnt that Armani hotel in Dubai has one of the finest locations as it is located in Downtown Dubai and its attractive position makes it one of the most popular hotels in Dubai and it is ideally located to explore the top view gallery. With respect to service, Armani hotel promises to provide a “home away from home” experience and has its ‘stay with Armani’ philosophy. The unique concept of Armani has led guests to spend much more quality time with their families or business and thus experience the finest service, (Armani, n.d) and thus, Armani hotel has been placed right at the top indicating the best location followed by service. Burj Al Arab is known to be the most luxurious hotel globally and offers one of the finest services with receptions on every floor, Jacuzzis, rain showers in all suites and it attracts international attention and is ensured to be the most photographed structured globally (Burj Al Arab, 2012). The hotel achieves its competitive advantage through the services provided to its guests and thus it has been positioned at the top left hand side indicating high service quality. The next competitor of Armani Hotel is Jumeirah Beach Hotel which is positioned in the middle of Armani and Burj Al Arab. The resort has an upper hand in terms of location as it is situated near the beach and provides luxurious accommodation, amenities, leisure for the visitors along with comfortable business environment for the business class people. The resort is located on the shore of Arabian Gulf and has won awards for its service. It also provides its guests with a private beach (The Jumeirah Beach Hotel, 2013). Positioning Strategy Armani is known for its luxurious products, ranging from clothing and accessories to hotels and resorts. Armani hotels and resorts are also positioned as luxurious resorts targeting mainly the business class people who visit Dubai for official purposes and people who enjoy luxurious ambience. The Armani hotel has positioned itself by adopting the differentiating strategy. The brand has differentiated its products in almost all the categories from its customers and similar is the case with its hotels and resorts. Every detail in the hotel bears the Armani signature of Italian hospitality and elements of the design range from the Eramosa stone flooring to zebrawood panels, personally designed amenities, bespoke furnishing along with the exclusive conference and meeting facilities. The hotel has positioned itself as a luxury hotel and targets only the higher section of the society and the business class and it is well accepted by the target segment. For the future, Armani needs to focus on the current customer base. As it has positioned itself as a luxury hotel, targeting the other sections might impact the behaviour and views of the current customers. The hotel provides world class cuisine, SPA received by guest with personal consultant (Emirates, 2013). Based on the philosophy of travel being an emotional experience, Armani hotel usually provides each guest a personal lifestyle manager who tends to serve as a personal host right from the moment one makes a reservation with Armani hotel till the time he checks out (William, 2010, p. 1). In the hospitality sector, up gradation of service is essential and thus, Armani hotel should keep upgrading the service for guests such as complementary pick up and drop from the airport and hotel; guests who stay more than two days can avail special services or get discount on the hotel restaurants; etc. These services attract guests towards the hotel. The brand name Armani has created a huge brand image and thus much effort is not required by hoteliers to promote it. Point of difference is adopted by the Armani hotel as it has adopted the differentiation strategy which makes it superior from other competitors. Reference Armani, No Date. Stay. [Online]. Available at: [Accessed 19 Jan. 13] Badam, R. T., 2012. Dubai population rises to 2 million. [Online]. Available at: < http://www.thenational.ae/news/uae-news/dubai-population-rises-to-2-million> [Accessed 19 Jan. 13] Burj Al Arab, 2012. Hotels & Resorts. [Online]. Available at: < http://www.jumeirah.com/en/Hotels-and-Resorts/Destinations/Dubai/Burj-Al-Arab/> [Accessed 19 Jan. 13] Dubai eGovernment, 2012. Dubai Economy. [Online]. Available at: < http://www.dubai.ae/en/aboutdubai/Pages/DubaiEconomy.aspx> [Accessed 19 Jan. 13] Meet Dubai, No Date. hotels: Meet with Armani. [Online]. Available at: < http://www.meetindubai.com/articles/show/meet-with-armani> [Accessed 19 Jan. 13] Property Portal, 2013. Top Ten Reasons To Live In Dubai. [Online]. Available at: < http://www.propertyportal.ae/content/reasons-to-live-in-dubai.html> [Accessed 19 Jan. 13] The Jumeirah Beach Hotel, 2013. The Hotel. [Online]. Available at: < http://www.jumeirah.com/en/Hotels-and-Resorts/Destinations/Dubai/Jumeirah-Beach-Hotel/> [Accessed 19 Jan. 13] William, N., 2010. Armani Hotel. [Pdf]. Available at: < http://www.armanihotels.com/en/pdf/2010_01_03.pdf> [Accessed 19 Jan. 13] Read More