Target Market for Royal Mail Hotel - Case Study Example

Executive Summary The report analyzes the manner Royal Mail Hotel which works in the service sector has looked to deliver quality services. This is followed by the analysis of the target market which will look at analyzing the target market for Royal Mail Hotel based on different parameters like age, gender, income, occupation, family life cycle and other parameters. This report then focuses on conducting a research based on a survey where 4 respondents based on the same target market is identified. The research looks at examining the manner in which 7P’s of marketing holds an important aspect for service provider. This is followed by analyzing 4P’s out of the 7P’s for the same service provider which will tend to include People. Finally, the report will look to provide recommendations based on which Royal Mail Hotel can improve its services and will thereby be able to transform the entire process of carrying out activities. The analysis shows that Royal Mail Hotel needs to consider the 7P’s of marketing seriously and has to aim towards developing the required facilities which will help to impart quality services. Working on the different parameters of service marketing will help to bring the required transformation and will provide an opportunity through which quality services can be delivered to its customers. Table of Contents Introduction 3 Information about service provider 3 Target Market 4 Examination of 7P’s with response to the survey 7 Analysis of the response to the survey 7 Product 8 Price 8 Place 9 Promotion 9 People 10 Process 11 Physical Evidence 11 Critical evaluation of 4P’s for service provider 12 Recommendations 14 Conclusion 14 References 16 Appendix 18 Introduction The success of a service provider is largely dependent on the manner customer satisfaction can be ensured through the services. An organization being able to work on the 7P’s of marketing which includes price, product, place, promotion, people, process and physical evidence are able to bring a change in the style of working and ensure long term success of the business. This report aims at analyzing a restaurant from Australia named the Royal Mail Hotel. This report will examine the manner in which the restaurant was able to deliver superior performance and match the requirements of 7P. This is followed by the analysis of the target market which will look at analyzing the target market for Royal Mail Hotel based on different parameters like age, gender, income, occupation, family life cycle and other parameters. This report then focuses on conducting a research based on a survey where 4 respondents based on the same target market is identified. The research looks at examining the manner in which 7P’s of marketing holds an important aspect for service provider. This is followed by analyzing 4P’s out of the 7P’s for the same service provider which will tend to include People. Finally, the report will look to provide recommendations based on which Royal Mail Hotel can improve its services and will thereby be able to transform the entire process of carrying out activities. The overall strategy will thereby help to improve the process of working and will thereby ensure that better services can be provided to the customers. Information about service provider Royal Mail Hotel is one of the pioneer hotels in Australia which tends to provide its customers with superior service associated with food and residence. I had visited Royal Mail Hotel and found the quality of service to be excelled. The hotel staffs were very polite and understood the needs and requirements of the customers. The dining area was excellent and the wines matched the dishes which were provided. Even the interiors and exteriors of the restaurant matched the price which was charged for the different services. All categories of room were well marinated and the hotel management ensured that all customers from the different segments which visited the hotel were satisfied. During my stay in the hotel I experienced quality in service which thereby helped to ensure that I was more than satisfied when I finally left the hotel. The overall aspect of 7P’s of marketing was well met as the hotel was able to ensure that customers were treated as their priority and special care and steps were taken to ensure that customers were contend and satisfied. I am very satisfied as the hotel was able to deliver on the different parameters and is a hotel which I would like to visit again because of quality in service and proper respect being given to the customers. Target Market Target market is a part of the market where the organization looks to position their product. Correctly identifying the target market helps to develop different strategies associated with the 7P’s of marketing and thereby provides the direction based on which the organization determines to use its resources. Royal Mail Hotel on the whole looks towards targeting people from the middle and upper class. The prime reason for targeting such a segment of the customer is that the organization has developed its services for that segment of customers as to ensure better services the prices charged is high. Royal Mail Hotel is considered by people as leisure and is not a necessity which has thereby helped Royal Mail Hotel to bring a change in their marketing strategy and have helped them to target a niche market which consists of people belonging to middle and upper class of the society. The targeting strategy matches with their positioning strategy as the hotel has positioned itself differently from other players in the market (Arnett, Menon and Wilcox, 2000). The hotel has taken a positioning statement where they look to provide customers with additional and quality services so that maximum customer satisfaction can be ensured. The target market which has been identified by Royal Mail Hotel based on different factors is as Age: Royal Mail Hotel aims to target people of all age as the service provider has something for everyone. For the children the hotel has a play area, games and others so that children can be satisfied. For the middle age people the hotel organizes different events where people can drink and dance. For the elderly people can relax and enjoy the panoramic view around the hotel (Chen, 2003). Thus, based on age Royal Mail Hotel has something for every customer thereby ensuring that all segment of the customers of all ages can be attracted. Gender: Royal Mail Hotel further looks at targeting both females and males. Since, the hotel has different facilities for different guest like men and women it has thereby ensured that they are able to target people from all sexes to their hotel. Income: Royal Mail Hotel aims to attract people from the middle and upper section of the society. The hotel has been priced in such a manner that the management looks to attract people from the higher strata of the society (Clemons, 2008). The restaurant aims to provide quality service so that customers don’t find a place to raise questions against the services. This has thereby increased the price which has thereby made the hotel to aim people belonging to the middle and upper segment of the society. Occupation Psychographics: Royal Mail Hotel aims to attract people working in all occupation. Despite looking to aim people from all occupation the hotel aims to attract tourist, business corporate and others. This has thereby ensured that Royal Mail Hotel aims to tap people from all occupation so that every section of the society can be aimed at. Demographic: Based on the demographic Royal Mail Hotel aims to attract the local people to dine in their restaurant. For the rooms Royal Mail Hotel looks to attract tourist, locals and business corporate. Since, the hotel is situated at a place which is easily accessible it has thereby ensured that Royal Mail Hotel is able to attract all type of people based on different demographic regions. Family Life Cycle: Royal Mail Hotel aims to target the entire family as the service provider has something for everyone. For the children the hotel has a play area, games and others so that children can be satisfied. For the middle age people the hotel organizes different events where people can drink and dance (Cook & Dave, 2004). For the elderly people can relax and enjoy the panoramic view around the hotel. Thus, based on age Royal Mail Hotel has something for every customer thereby ensuring that all segment of the customers of all ages can be attracted. Thus, Royal Mail Hotel based on the offering has segmented their market and looks to attract people mainly from the middle and upper strata of the society as the pricing is such that people will have to pay more for quality service. This has helped Royal Mail Hotel to determine the target market properly and based on it has been able to develop different strategies associated with the marketing of the services. Examination of 7P’s with response to the survey This section will aim at examining the manner in which the 7P’s of marketing was delivered by Royal Mail Hotel. To gauge the different expectations of the customers and the different needs of services which were satisfied by the 7P’s? To understand the manner in which different aspects were met a survey was carried different respondents which helped to understand the manner in which different areas were met and has been provided below. Further, the questionnaire and the response are also provided in the appendix so that based on it better understanding of the different facets of 7P’s is delivered. This is presented herein under Analysis of the response to the survey The research which was conducted over 4 respondents excluding me showed the following important guidelines which determine the level and degree of service importance. The respondent has been chosen keeping in mind the same target customer and their desire for similar performance and service standard. Importance to different services Respondents Response Importance to Product 4 Importance to Price 1 Importance to Place or layout 2 Importance to promotion 2 Importance to service standard 4 Importance to food quality 4 Overall service standard 4 Thus, the different respondents falling under each head based on the survey is being highlighted above. Their importance and impact of the 7P’s are further shown to understand the impact it creates on the market and service standard. Product The quality of service standard in the service industry is highly dependent on the quality of product or service offering. The survey clearly highlighted the importance people attributed to product as it is the defining moment which helps to determine whether the service standard as per the needs and requirements of the customers. People look at ensuring that the product which is served to them has the required ingredients and inputs which take to deliver a high service standard. The ability of the restaurant to work and deliver on the service standards helps to improve the level of satisfaction. The response from the survey also suggest that people are willing to spend extra for quality in the offering as the target market consist of middle and upper class of the society. This class of people is willing to spend extra but desire some additional services and look towards ensuring that the product provided to them matches all the requirements with regard to taste, presentation, quantity and quality. This is thereby an important aspect of the service determination process and determines the manner in which the satisfaction of people will be ensured. Price Price is an important consideration for people looking to consume the different kind of services because price has a link with quality service. Since, the target market consists of middle and upper class of the society. This class of people is willing to spend extra but desire some additional services and look towards ensuring maximum satisfaction. The response from the different respondents also showed an indifferent attitude to the price they have to pay for the product as paying additional price means that the customers are looking for better services and hope that the different needs and requirements of the customers can be satisfied. Price is thereby an important determinant as people willing to go to high class restaurants or hotels are willing to spend extra for some extra facilities. Place This determines the possibility of the person to access the required place so that the services can be consumed. It was seen from the survey that place is an important factor as having a service provider who is easily accessible ensures more footfalls. This is matched by the fact that the service provider should be situated at a place which can be easily reached and is mainly near important destination (Sherrington, 2009). The response from the survey indicated that people prefer to visit hotels or restaurants which are at easy proximity and can be reached easily. This has an important bearing on the decision of choosing a particular restaurant or hotel and determines the manner in which the customer will be looking to visit the restaurant. Promotion This tool looks at spreading awareness and making people know about the existence of a restaurant or hotel. The survey showed that people prefer to come to know about the restaurant through different promotion or advertisement but has a little relevance on choosing it. The most important factor which determines the person choosing the restaurant is the service quality and even not having promotions could lead towards more and more customers (Hawkins, Best & Coney, 2006). People agreed to the fact that promotional and loyalty schemes helps to attract people but to a limited extent. Since, target market consists of middle and upper class of the society. This class of people is willing to spend extra and doesn’t look to take benefit of the different promotions. Despite it promotion is an important tool to spread awareness and helps to create the required urge which will drive people to purchase a particular service or not (Robinson, 2005). People This aspect looks to the manner in which having quality employees determine the level and standard of services. It was analyzed through the survey that the respondents felt that people hold an important aspect for delivery of quality service. The research highlighted that consumers prefer destinations where the employees are able to understand the customer and provide with quality food. This makes people an important constituent of the services as having good chefs and waiters ensures better understanding of the customer (Palmer & Adrian, 2000). This thereby helps to develop a pool of loyal customers based on which the quality of service standard can be developed and better services can be provided. This thereby has relevance on the degree of service and helps to bring the required transformation in service Process Process is mechanism through which the manner in which services is passed on is determined and helps to play an important role in deciding the degree of services. The respondents reply to process showed that people don’t give much importance to the process but look to ensure that quality in the services is maintained (Barristow & Judge, 2006). The respondents look for the final services which are delivered to them and expect that the service provider will take carry of the necessary arrangements to ensure that the services rendered are of the highest quality. This is further matched by the fact that the service providers look to ensure that the process is clear and aims to maximize the satisfaction level of the customers. Physical Evidence This is an important aspect and considers different facets like presentation, layout and overall ambience. The research showed people look to ensure that the ambience and layout both of the food and restaurant is such that it pleases the customers. Since, the target market consists of middle and upper class of the society (Brassington and Pettitt, 2001). This class of people is willing to spend extra but desire some additional services and look towards ensuring that the entire process of providing services is better and helps to multiply the overall level of satisfaction. The survey also showed that people consider physical evidence an important area based on which the externalities and the surroundings help to understand the manner and degree based on which customer satisfaction will be determined. Critical evaluation of 4P’s for service provider The evaluation of 4 P’s out of the 7P’s for Royal Mail Hotel will help to chalk out a better understanding of the manner in which different aspect of the services have a role in determining the manner in which it impacts the service provider. Out of the 4P’s which is to be considered people is considered and the other details are as Product: Product is an important aspect for the service provider Royal Mail Hotel. People look at ensuring that the product which is served to them has the required ingredients and inputs which take to deliver a high service standard. The ability of the restaurant to work and deliver on the service standards helps to improve the level of satisfaction (Firoziyan, Hasangoli & Stiri, 2009). Since, people are willing to spend extra but desire some additional services and look towards ensuring that the product provided to them matches all the requirements with regard to taste, presentation, quantity and quality. This is thereby an important aspect of the service determination process and determines the manner in which the satisfaction of people will be ensured. Price: This is as aspect which differentiates Royal Mail Hotel from others as the price charged is high compared to others but the hotel has been able to ensure better quality. Price is an important consideration for people looking to consume the different kind of services because price has a link with quality service (Robinson, Davidsson, van der Mescht and Court, 2006). It is seen that people have an indifferent attitude to the price they have to pay for the product as paying additional price means that the customers are looking for better services and hope that the different needs and requirements of the customers can be satisfied. Price is thereby an important determinant as people willing to go to high class restaurants or hotels are willing to spend extra for some extra facilities (Barratt and Oliveira, 2001) Place: Royal Mail Hotel has an advantage as the proximity and easy accessibility has helped them to differentiate their services. This determines the possibility of the person to access the required place so that the services can be consumed. This is matched by the fact that the service provider should be situated at a place which can be easily reached and is mainly near important destination. It is seen that people prefer to visit hotels or restaurants which are at easy proximity and can be reached easily (Berkman & Gilson, 2001). This has an important bearing on the decision of choosing a particular restaurant or hotel and determines the manner in which the customer will be looking to visit the restaurant. People: Royal Mail Hotel has looked to determine the manner in which having quality employees determine the level and standard of services. It was analyzed through the survey that the respondents felt that people hold an important aspect for delivery of quality service. The research highlighted that consumers prefer destinations where the employees are able to understand the customer and provide with quality food. This makes people an important constituent of the services as having good chefs and waiters ensures better understanding of the customer. This thereby helps to develop a pool of loyal customers based on which the quality of service standard can be developed and better services can be provided (Achrol and Stern, 2008). This thereby has a relevance on the degree of service and helps to bring the required transformation in service Recommendations Based on the different inputs and market research carried out to find out the manner in which 7P’s of marketing will adhere to Royal Mail Hotel helps to bring out the following recommendations Royal Mail Hotel has to look to match quality with price. This will require that the management of the hotel concentrates on providing superior services to its customers as the organization already charges a higher price for its services. This will require that Royal Mail Hotel aims to provide quality service which is matched by consistency and quality in the service standards so that the business is able to deliver superior performance Royal Mail Hotel needs to look at hiring the best employee so that better understanding of the customer needs can be identified. This will help Royal Mail Hotel to develop the required parameters based on which better services can be provided. The overall impact will bring about a change in the manner services is provided and will help Royal Mail Hotel to ensure that the employees understand the different needs and requirements of the customers. Conclusion The report thereby analyzes the different aspect of Royal Mail Hotel by identifying the manner in which the business focuses on delivering superior performance by ensuring consistency in performance. This is matched by ensuring that the service standards are as per the targeted market. Royal Mail Hotel which looks to tap the middle and upper section of the society has looked to identify the dimension of 7P’s which will ensure better services. The report also analyzes the research carried out through questionnaire which highlights the different aspect of 7P’s and the relevance it has on service marketing. This is followed by relating the different factors to Royal Mail Hotel and identifying the manner in which working in the different directions will help to improve the overall service level. References Achrol, R. S. and Stern, L W. 2008. Environmental determinants of decision-making uncertainty in marketing channels. Journal of Marketing Research, 25 (1), 36-50. Arnett, D. B., Menon, A. and Wilcox, J. B. 2000. Using competitive intelligence: antecedents and consequences. Competitive Intelligence Review, 11 (3), 16-27. Berkman, H. & Gilson, C. 2001. Consumer Behavior Concepts and Strategies, Kent, Boston Brassington, J. and Pettitt, M. 2001. Principles of Marketing, 2nd Edition, Prentice Hall Barratt, M. A. and Oliveira, A. 2001. Supply chain collaboration: Exploring the early initiatives - part one. Supply Chain Practice, 3 (4), 34-47. Barristow, D. & Judge, T. 2006. Person-organization fit, job choice decisions, and organizational entry. 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Completely Very Quite Quite Very Completely Satisfied Satisfied Satisfied Average Dissatisfied Dissatisfied Dissatisfied 7 6 5 4 3 2 1 4. Rate the following on the scale of 1 to 7 where 1 states extremely poor and 7 is extremely good? a. Food Quality/ b. Service Quality c. Price Level d. Layout e. Variety of food f. Cleanliness g. Overall quality 5. Sex: Male / Female 6. Age: 7. Occupation 8. Any Comments Read More