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Magazine and Gate Restaurant Magazine. According to Brand’s valuable global brands 2012, the brand value of Four Seasons in 2012 is 376 million SAID, and the brand contribution (is the profitability of brand for the business contribution), is level 4 (level 5 is maximum). Those are the core competencies to add value endowed on services of Four Seasons Hotel Hong Kong. Making decision, administration department needs to consider the effect to its brand. For example, when hotel want to increase the market share, targets are not suitable to attempt to the lower price arrest, because it disobey hotel’s high-class impact.
Secondly, we can know that great employees’ abilities and high cognition to acknowledge of work are distinctive competencies of Four Seasons Hotel Hong Kong for micro internal environment. “At Four Seasons, each learning activity aims to have an impact on the guest experience and support the culture of the Company. By investing in and committing to effective training at all levels, we build competence and confidence in our employees, thus enabling us to sustain a competitive advantage in service excellence. ” (From Four Seasons website- http:// bobs. Freemasons. Mom/wrong-headedness’s/learninganddevelopment/pages/ LearningandDevelopment. Asps) Improving employees’ abilities, Four Seasons Hong Kong services are commended, also appraised to a star-5-level-3 hotel by International Hotel & Restaurant Association (II-RA). Administrator(s) must consider the balance of training and working time when there is redeployment, but not only focusing on the input of management. W-weaknesses, are the characteristics that place the team at a disadvantage relative to others. The brand equity is the core competency of Four Seasons, however, controlled by he brand equity is also the weakness of Four Seasons.
Four Seasons position is luxury, to show the high service quality and brand equity. Holding the position, Four Seasons is unsuitable to adjust downward the pricing of services/product to accommodate the market, that means high end consumption crowd and companies are the only target audiences for Four Seasons. Because of the limited number of those audiences, customer retention is much more important, and it makes the cost of driven customer satisfaction to build up business-customer relationship for Four Seasons is precious.
Opportunities, are the elements that the project could exploit to its advantage. Technological Environment of macro environment Technology always has been seen to have reduced the manpower and the energy required by the people. For example the used in Vitas is way below the standards when it comes to hotel management software, replacing past complicated procedures, also helps to cut down the salary cost for those department. Throwing in the fixed budget with less fixed cost, capital can be used effectively to build up the largest marginal benefits.
Socio-cultural environment of macro environment and employees Different cultures change and merge under globalization, companies are more easily to recruit properly qualified employees from the world. People are able to deviate their own countries to contact a better opportunity of work, including people with knowledge and quality, multinational corporation I. E. Four Seasons can build up the talent pool with a lower cost. Making decision in democratic leadership style companies, administrators find out problems with employees comments and helps to develop companies, Four
Seasons is an example to show how properly qualified employees help to build up brand equity. Threats, are elements in the environment that could cause trouble for the business or project Political Environment of macro environment Hotel industry as well as tourism industry, is effected by government policies directly. For example Hong Kong government is now planning to contract the degree of freedom for mainland individual visitor. The number of individual visitor will be decrease, including a part of high end consumption crowd, and the competition between high classic hotel will also be enhanced.
Economic of macro environment Hong Kong is the international and financial centre, which has many foreign tourists arriving with the sole purpose meetings. Developing tourism industry early, high end consumption crowd is attracted to shopping in Hong Kong. However, Hong Kong economic is weakening because of global economic, also losing the value of recreation and commerce because of the development of near cities I. E Shanghai. Economic recession drives the demand of hotel industry in Hong Kong to drop off, and it is now the biggest threat to Four Seasons which from fountainhead.
Environmental factors of macro environment and suppliers Raw materials of products (include the tools which are using in service) are from nature, the supply for those materials is directly controlling the pricing. Raw materials pricing rise sharply overtime having natural disasters, the variation between hotel and suppliers expectation enhance the conflict, that is effecting cost price of services for hotel to customer. Considering long-term partnership, high payment is need to the cost of business-business communications, which is also a high cost price. Market segments of Four Seasons Hotel Hong Kong
The chosen product of Four Seasons Hotel Hong Kong is Executive Travel Package. The package is mixed up by independent Executive Club Package and Travel Package after knowing the travel intentions of businessmen. Demographics segmentation “Segmenting buyers by tangible, personal characteristics such as their ages, incomes, ethnicity, family sizes, and so forth is called demographic segmentation. ” Marketed to segments, it is chosen the prominent demographic characteristics to segment customers, mainly in income and gender. Income, segment to middle class customers and high income group customers.
Four Seasons provides services to customer with high brand equity, middle-class customers and high income group customers are the target audience of Four Season, who has the potential ability for charge. According to Brand’s valuable global brands 2012, the brand value of Four Seasons in 2012 is 376 million USED, and it is paid at least STUD’S and average USED 660 per person for each package. Gender, men and women have different physiological and other needs, and also shop differently. For example when traveling, women are most likely to go shopping; men are most likely to take a stroll or go to bar.
Promoting the Executive Travel Package, it is needed to provide variation services to different gender customers. Geography segmentation “Geographic segmentation explains why the checkout clerks at stores sometimes ask you what your zip code is. ” Four Seasons Hotel Hong Kong is established in Centre, where the economy center is in Hong Kong. Customers come from different countries with different reasons, and there are a big cultural difference between domestic and international customers, including pricing feature and material. It also needs adjustment for the promotion, such as the process of market selection.
Target strategy The selection of potential customers to whom a business wishes to sell products or services. The targeting strategy involves segmenting the market, choosing which segments of the market are appropriate, and determining the products that will be offered in each segment. A business offering multiple products can determine if the various segments should receive one generic product (such as in mass marketing), or if each segment should receive a customized product (multi-segment), based upon the market’s diversity, maturity, the level of competition and the volume of sales expected.
Choose the differentiated marketing strategy. In Four Seasons Hotel Hong Kong, most of the middle class customers are for business by own or by companies, other are for travel or visit relatives; high income group are equally for business and travel, and part of people are both for business and travel. Differentiated marketing strategy, Four Seasons provides separate offerings to customer. Provides unique benefits, to provide different extent convenient to middle class and high income group. It at the expense increase in the cost of management but also can increases the total sales in the packages.
Buyer behavior As said before, customers in Four Seasons are mainly for business and travel. For business, it is a mode of organizational buying, company buys packages for members to have business activities in Hong Kong, organizational buying is more careful to compare the price of packages, which means it is more difficult to let organizational buyers buy the new Executive Travel Package with a higher price. It shows a big divergence to personal buying. Personal variables, are significant in different genders. Women pay more attention to the maintenance of body; men care more about the entertainments.
Choosing the package, women mostly select the package with Spa facilities; men mostly select the package wit entertaining facilities, such as swimming pool and bar. Lifestyle, is showed at the income segment. For high income group, people respect to the quality of services, even are requested for a higher payment; for middle class, people consider the costs and make balance between price and service quantity. Under different lifestyle, high income group spend more money to get better service, it helps Four Seasons enlarge the profits. Helping to maximize the profits is the main benefits of segmentation.