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An Analysis of Saigon Morin Hotel in Hue City Thorough 7ps in Marketing Strategies

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TITLE An analysis of Saigon Morin Hotel in Hue city thorough 7Ps in marketing strategies INTRODUCTION The ability to market a hotel in the appropriate way to the appropriate market is essential to the success of the business. For this to succeed, those in key roles need to understand the product that they are selling and the market to which it is being sold. Managers maximize their returns through understanding the market they are operating in and applying those marketing techniques that can best attract guests.

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Hotels are a service industry.

Hotel products have the following characteristics: inseparability, intangibility, perishability, and variability. As society has changed, with people having more disposable income and more free time, there has been a growing awareness and desire by a greater number of people for service-orientated products such as hotels. Along with this growth, understanding is needed for the products that are being marketed. Since the early 1960s many marketers have been using the “4Ps” marketing mix: (1) product, (2) price, (3) promotion, (4) place.

Consideration is given to the change that would result from varying the product, price, promotion, and place in achievement of the organization goals. However, use of the 4Ps is limiting when considering a service orientated business such as a hotel as it does not adequately reflect the complexity of the product. In response to the limitations of the 4Ps marketing mix, Booms and Bitner (1981) proposed a 7P marketing mix. These 7Ps included the 4Ps, adding People, Process, and Physical evidence. STATEMENT OF PROBLEM

Marketing mix plays an important role in enhancing business efficiency of enterprises. Nowadays, it does apply to not only the material products but also the services, lodging service for example. The marketing mix has affected dramatically customer satisfaction, cutting edge of competitiveness of service enterprises… Saigon Morin Hotel is well-known as the leading hotel in Hue. However, it has been strived to overcome threats coming from the market. Above all, they are faced to the new potential competitors, such as Celadon Hotel, La Resident Hotel, Hue Green Hotel, etc…

PURPOSE In order to enhance the business efficiency of Saigon Morin Hotel, the study was carried out on the efforts putting the marketing mix into practice from the customer viewpoints, from which solutions was made to improve the marketing mix for the hotel businesses. The aim of my research is to assess the implementation of marketing-mix product stay at Hotel Saigon Morin, which focused analysis of state marketing-mix elements of the hotel, identifying constraint.

The purpose is to propose solutions to improve marketing-mix policies contribute to resolving the issues. METHODOLOGY Research of my topic will require the collection of many statistically figures and hard data. For this reason, I will collect a good part of the data from online sources and files. The theoretical framework is based on “Principles & Practice of Marketing” book by Jim Blythe. This framework illustrated the outline of marketing planning process for service organizations. However, the phase of formulating marketing objectives and strategies will be focused.

When researching the Saigon Morin Hotel, I will depend highly on files and documentation of statistical figures as well as my ability to collect information from managers and employees via the interview process. A good part of my research period will be spent in Hue city interviewing Saigon Morin Hotel customers and non Saigon Morin Hotel consumers alike to gain differing perspectives on the hotel industry. Interviews will be conducted with the help of my uncle who is currently working for Saigon Morin Hotel.

I plan to spend time in this hotel interviewing customers and employees of the hotel to understand how this hotel has personally affected the people. Furthermore, I plan to spend a brief period in this hotel interviewing the Sales and Marketing manager in order to understand how the people at base of this hotel industry have been impacted by the global expansion of this hotel. Lastly, observational skills will be essential in all stages of my research in order to gain a first-hand perspective of the role that 7Ps plays in the success of the hotels and analyze how 7Ps affected in the operation of this hotel industry. LIMITATIONS

This research has numerous restrictions that must be taken into account for including: a short time frame, my level of experience, my skills in research methods, language barrier. I remain optimistic that all the limitations foreseen can be overcome. DESCRIPTION OF THE HOTEL Built in 1901 by French, the Morin Hotel is one of the oldest hotels in Vietnam. Survived through many wars, this is more than a hotel. It is a part of the history of Hue city in the last 100 years. Now lovingly restored to its century-old glory, Saigon Morin is once ready to live up to its reputation as the choice of celebrities, intrepid adventures and businessmen.

The Hotel offers everything a discerning traveler would expect form a world class hotel without sacrificing the old world charm that made the Morin Hotel legendary. CUSTOMER SATISFACTION According to the statistics, customers staying in Saigon Morin Hotel stated that 88% people are willing to recommend this hotel to others. What is more, the level of this hotel among 123 people is listed below: Excellent: 52 people Very good: 45 people Average: 15 people Poor: 7 people Terrible: 3 people Ms. Phika from UK said “Great Hotel in Hue. We stayed in a deluxe river view room.

There are marble floors in the hall and bath, the rest is hardwood and it is creaky… no sneaking quietly to the bath at night. The room was bright, the lighting good with one window wall with a view of the Perfume River. The plumbing is very modern and cool. The king size bed is comfortable and elegant looking when you arrive. The pillows to sleep on were huge and gave neck pain the next day, so I ended up sleeping on a smaller decorator pillow. The staffs are very helpful and kind. The included buffet breakfast has a good selection and lunch is good at $9 U. S. for pizza/soup or sandwich.

The fitness area really needs a better lay out! Right now the bathrooms are in the restaurant, the equipment in an open area and a shower outside with a curtain. You would have to dry off and dress in the shower. Other than that, it is a wonderful five star hotel and we certainly would use it again. ” Ms. Susan Skate from Florida, America said: “Loved this hotel! I’ve been all over the world on business, and I’ve rarely had a bigger or more beautiful room, complete with lovely seating area with French doors opening onto a balcony that overlooked the riverfront street below.

Staff was friendly, food excellent and the halls were lined with vintage photos of the colonial days of Hue, perhaps Vietnam’s most beautiful city. If you’re here on business, internet connections were good, though allow time to see this fabulous city! ” RESEARCH RESULTS 1. Characteristics of the hotel guests source Customers primarily Saigon Morin Hotel is the tourists that require high quality good service and high affordability. Situation of customers and fluctuations target market of the hotel were studied through data in the period 2002-2004. Market primarily Saigon Morin Hotel is international guests.

International visitors in 2002 accounting for 94. 6% of total visitors in 2004 accounting for 92. 7%. Particularly in 2003, the proportion of international visitors was reduced to 86. 5% due to the impact of the Sars epidemic. Most come from France, America and Japan. Total number of visitors from these three markets account for more than 50% of international tourists and visitors from other sources in this market also tends to increase over the years in the period. Based on these statistics, the project has identified target market is the French market customers.

Two very large market potential for hotel focus is directed to the American market customers and customer markets in Japan. 2. Fluctuation on the number of guests to the hotel – the seasonal Observation chart shows the fluctuations of the number of visitors over the months in 2002 and 2004, we easily recognize the seasonal computer products stay in the hotel’s Saigon Morin. High season welcoming guests of the hotel is between October and March next year. At this season, booking a large volume, while the capacity of the hotel reception is limited, therefore, the planning reception guests are considered the most important work.

In the summer, although the peak season for domestic tourists but Saigon Morin Hotel start season away customers because the weather is too hot at this time – type the harsh summer climate is not suitable for travel habits calendar of most tourist Europe, America. Review the implementation of marketing-mix elements of the hotel Topics conducted evaluating the implementation of marketing-mix elements based on the reviews of customers about the marketing policies of the hotel. Likert scale used to measure customer perception of marketing policy of the hotel.

Assessment of clients felt made based on statistical frequency and point average (see table 1) Group 1: Average Scores on the satisfaction of customers with Product stay hotel |The criteria |Mean frequencies and statistics | | |n |Mean |Standard Deviation | |1 – Product Policy | | | | |Trademarks |125 |4. 7 |0. 96 | |Professional |125 |4. 09 |0. 74 | |Enthusiasm |125 |4. 22 |1. 28 | |Advantage position |125 |4. 46 |0. 85 | |Beautiful scenery |125 |4. 45 |1. 84 | |Comfort level |125 |4. 01 |1. 2 | |Sanitation |125 |3. 91 |1. 56 | |Safety |125 |4. 18 |0. 71 | |Food supplements |125 |3. 40 |1. 93 | |2 – Price Policy | | | | |Calculated satisfactorily |125 |3. 5 |0. 53 | |Competitive |125 |3. 72 |0. 98 | |Flexibility |125 |3. 27 |0. 64 | |Information for visitors |125 |3. 36 |0. 1 | |3 – Distribution Policy | | | | |Communication Arts |125 |3. 97 |1. 13 | |Identify and meet needs |125 |4. 10 |1. 28 | |Practices professional welcome guests |125 |3. 90 |0. 94 | |Gadget information |125 |3. 3 |0. 68 | |4 – Promotion Policy | | | | |Methods promote |125 |3. 74 |1. 12 | |Content Information |125 |4. 26 |0. 98 | |Effective |125 |4. 18 |0. 76 | (Source: The total number of sample surveys.

Apr point Likert: 5-Very satisfied, 1-Dissatisfied). ? * D? i v? i chinh sach s? n ph? m, di? m trung binh c? a cac tieu chi du? c danh gia kha cao, For policy products, the average score of the criteria are evaluated fairly high, above 4 points. However, the needs of customers around the fact that so very diverse in some criteria are relatively large standard deviations. ? For pricing, the average score in the range from 3 to 4 points and standard deviation of the statistics does not show that most large customers are not really happy with the pricing of the hotel.

Considering on the market aspects these results show the status of supply and demand larger customers to accept higher prices. Here, again explained the strategic pricing Skimming price of the hotel. ? For distribution policy, customers were able to evaluate better identify and meet customer needs by staff in the hotel. This is actually a strong point of the hotel because of the ability to identify and meet the needs of customers will stimulate more customer needs a new higher level, more diversified. ? For policy promotion, customers appreciate the content information of the hotel product. With the significant (? 0. 05), the average standard deviation is 4. 26 and 0. 98 has shown the influence of information content of the advertising message to the detailed evaluation of customer policy in promoting the hotel product. 3. Analysis of factors affecting the policy development for the product marketing mix-stay hotel By using the factors selected for study evaluation of marketing policies of the hotel as independent variables affect the overall assessment of policy marketing-mix of customers, we use the model feedback Stepwise Regression for the rules selected variables affect the feelings of many customers.

With a variable selection criteria for inclusion in the model is the probability of F ? 0. 05 and statistical criteria to make a variable from the model is statistical probability of F ? 0. 10; through the steps of current, Stepwise Regression method of selecting the factors have significant impact felt by customers for each marketing policy of the hotel. Regression models obtained from the specific results of data processing as follows: ? 2. 3. 1 K? t qu? phan tich cac nhan t? ?nh hu? ng d? n chinh sach s? n ph? m c? a khach s? n The analysis of factors affecting the policy of the hotel roduct Four-step implementation, the Stepwise Regression method selected four factors are related linearly to the customers feel about the policies of the enterprise product, the brand, safety, professionalism and advantages the location of hotels. ? The analysis of factors affecting the pricing of the hotel Two steps of implementation, Stepwise Regression method of selecting two factors have a major impact on customer evaluations of the hotel pricing is calculated by the price and adequate information about the ability to price policies hotel customers. The analysis of factors affecting the distribution policy of the hotel Regression Stepwise regression method was chosen two elements are related closely (linear relationship) with detailed reviews of customers about the distribution policy of the hotel is its pure in professional welcome guests Practices and the level of utility system needs to receive bookings for guests. Here are two factors that customers place the greatest concern expressed about the level of satisfaction in marketing distribution policy-mix of the hotel. The analysis of factors affecting the promotion policy of the hotel From the results on the treatment Regression Stepwise regression models, has identified two factors of group policies to promote products is related linearly to detailed reviews of customers about the marketing-mix policies. Thus, if the hotel focuses on content selection to promote an effective way to increase customer reviews a review on the content level of customer satisfaction marketing-mix policies of the hotel will increase 0. 207 points.

Similar explanation, we will see the impact of the selection methods to promote products to the effectiveness of marketing-mix policies of the entire company. People refer to the customers, employees, management and everybody else involved in it. It is essential for everyone to realize that the reputation of the brand that you are involved with is in the people’s hands. To be able to understand those characteristics it is necessary to comprehend the basic human characteristics of needs, wants, and demands. People, including employees, stakeholders, and guests, are the core component of the hotel industry.

A key part of marketing a hotel to the guest requires an understanding of the needs, wants, and demands of the potential and returning guest. ? Needs – human beings have many basic needs including food, clothing, safety, feeling of belonging, and so on. When these basic needs are not met the person takes one of two actions: (1) looks for an object that will satisfy the need, or (2) tries to reduce the need. These are influenced by individual personality and culture. ? Wants – communication of needs – wants are viewed as things that will satisfy needs. Demands – buying power of wants – people have many wants, but may only have limited ability to purchase; when a person has the ability to purchase a want it becomes a demand. The decision to purchase a hotel product normally begins with a need and is affected by some type of stimuli, for example a television commercial, a newspaper advertisement, or the Internet. In many situations the development of a need is a subtle process. Although it may be observed that some people suddenly express that they need something, often this is the outward expression of a developing inner feeling of need.

Training has to be on a wide perspective as, even nowadays, there is a big demand of basic training skills, the hotel industry will need, in the near future, a big number of well-trained staff at all levels of the structure, from top management to basic staff like waiters, etc. It refers to the methods and process of providing a service and is hence essential to have a thorough knowledge on whether the services are helpful to the customers, if they are provided in time, if the customers are informed in hand about the services and many such things. The development of needs in the consumer is a major component of marketing success.

In the selection process, customers make repeated decisions as they continually attempt to satisfy their perceived needs. Potential customers looking for a hotel room make a number of decisions when choosing where to stay. The process that they go through in the selection of a product is important for hotel management to understand. Management should know (1) that a particular hotel will be evaluated differently by different guests, (2) where a particular guest is satisfied with one hotel that they may be dissatisfied with another, and (3) the perceptions of guests change over time and with experience.

The decision process by potential guests is a complex process. All consumers are the same, they are influenced by numerous factors such as personality, culture and so on. When their needs are put into a condition where they can be communicated they then become wants. There are the things that a person perceives as having the power to satisfy their needs. This is the beginning of the search process, and the selection of alternatives that would have the ability to satisfy the needs. Although a consumer may identify many needs and wants, not all of these are converted into a demand for a product.

As a result of limited ability to purchase, only a few of the needs and wants may be converted into demands. The ability to purchase relates to the many factors that make up the individual, which include such things as age, income, life experience, gender, previous purchase experiences, etc. An important part of the marketing process is therefore to understand those characteristics that make us individuals and to try to recognize this in such a way that there is a large enough market to successfully target.

This process is called market segmentation. To adapt all organizational processes, public and private, in order to become highly competitive in the markets. 4. Other problems exist in the policy-mix Marketing By studying the status of development and implementation of policies for marketing mix products stay hotel, the project has discovered a number of problems exist as follows: First, the policy of the hotel product still matters inadequacies, not bring high satisfaction to customers.

The most noteworthy point is the system of complementary products of the hotel also monotonous and lack of tourists has found that demand true. Second factor in the pricing information of the product has not stay just lack sufficient flexibility has become a problem hindering attraction of the hotel guests. Thirdly, marketing plan of Saigon Morin Hotel was a matter of professionalism in the process of distributing products to the market (actually done work and selling) of the hotel still many problems to overcome. Finally, the existence of the work is to promote and advertise products.

Besides the way of marketing effectiveness, creating a good impression to customers, policies to promote products of the hotel is still a gap between supply and demand. 5. The solutions to improve the policy mix in Marketing-Hotel Saigon Morin • A good quality service when it meets the needs and expectations of customers. Therefore, the policy development products, hotels have researched the ability to match the product to market, especially the target market. • For high culture and art of receiving and processing feedback from customers.

Upon receiving the feedback from customers, the receiving departments must explain how, skillfully handled in the shortest time. • Hotels have agreed a methodology than science products, has had to rely on the specific objectives of the hotel as input costs, power use prevention and plans for sales but also to based on factors beyond the control of seasonal businesses such as computer, the competition in the market. • In reality, there are some guests are not as profitable but higher for hotels large effect in promoting the image and enhance the prestige of the hotel.

In this case, the hotel should not be too focused on sales targets which must seize the opportunity to perform activities public relations (PR – Publish Relation). • Hotels must continue to improve the system of distribution channels. Special consideration must be to develop more representative offices in the domestic market and a source of major customers such as Japan, America, Germany … • Activities to promote, promote products must consider two issues mainly the content and methods to promote products.

Depending on the object receiving the broadcast messages must be designed to match and bring the most effective. CONCLUSION AND RECOMMENDATION The hotel industry is highly competitive and the right knowledge about customer values and demands is essential to differentiate from competitors and gain sustainable competitive advantage. Implementing traditional marketing strategies is often no longer enough to achieve this goal. Relationship marketing has increasingly become more important, as this concept suggests more focus on retaining the customer and creating a win- win situation with a long- term perspective.

In traditional marketing there is more focus on acquisition. Most importantly a good balance between acquisition and retention directed to the right segments is essential for future success. Marketing-mix of the overall effort of the business, it is not just built for a tangible product, but also often made for products and services such as product staying. Elements of the marketing-mix is as extremely important role in directing the business operations of the hotel stay and raise the competitiveness of the hotel market.

Study of components marketing-mix policies of the Saigon Morin Hotel, we found that, besides the outstanding marketing can be effective for products of the hotel, there are still some problems exist as a system of complementary products also monotonous, lack of product has its own characteristics and meet the demands of the customer (product), pricing policy of the hotel still lacks flexibility, the valuation information to customers lack sufficient (Price), the procedure has not reached professional levels of expertise (distribution) and methods to promote the product not really effective, it is still a gap between supply and demand (Promotion). This reality requires the hotel to soon have the marketing policy adjustment in order to comply with the requirements of the market in the near future. Nh? ng v? n d? du? c nghien c? u va trinh bay trong d? tai nghien c? u nay s? khong danh gia h? t t? t c? nh? ng n? l? marketing ma khach s? n dang theo du? i, cung nhu nh? ng gi? i phap d? xu? t khong ph? i la hoan toan uThese problems are studied and presented in this research project will evaluate all the marketing efforts being pursued by the hotel, as well as proposed solutions are not entirely advantages Vietnamese. These elements are the marketing-mix tools, the specific objectives to help the hotel achieve common goals and strategic long-term, thereby, creating sustainable growth in the market. OUTLINE OF CONTENT 1. Introduction 2. Methods 3. Research Limitations 4. Description of the hotel 5. Customer satisfaction 6. Research Results 7. Conclusion and Recommendation