Case Study:

Segmenting, Targeting, and Positioning for the

Ellerbeck Mansion Bed & Breakfast Inn
Salt Lake City, Utah

Kacee Baucom
U0264152
University of Utah
Case Study
Pg. 2
Overview
The Ellerbeck Mansion was established in 1892. It has 4300 sq feet and is located near
downtown Salt Lake City. Its architecture is very classical and vintage in design. The Ellerbeck
Mansion includes six rooms, four of which have a private bathroom. Rooms range from $99-
$189 per night. On the main page of their website it has the words Private Historic Elegant
Friendly Comfortable Beautiful. All of these words are meaningful and descriptive in
helping us reach to the most appropriate target market.
SWOT Analysis
S Strengths of the Ellerbeck Mansion are that it provides high-end amenities while still
remaining comfortable and cozy. Their seasonally themed rooms are a fun detail that
makes their rooms relatable to their customers. The marble floors, cabinets, lamps, and
fireplaces are things that make the Ellerbeck Mansion feel more intimate and home-like
than a regular hotel. The location of the Ellerbeck Mansion is also nice because it
provides a relaxing stay away from the hustle and bustle in the heart of Salt Lake City,
but it is only blocks away from downtown attractions.
W The location could also be seen as a weakness. The Ellerbeck Mansion is farther from the
ski resorts which are one of the main reasons people from out of state visit Utah. With
only six rooms for guests, the Ellerbeck Mansion is not able to accommodate a large
group of people which could be limiting to their target population and overall revenue.
O An opportunity for the Ellerbeck mansion could be as the baby-boomer generation moves
toward retirement, older and wealthier couples might do more luxury traveling.
Additionally, travel sites such as Expedia or Priceline are becoming extremely popular
which opens up opportunities for making deals with those companies.
T Potential threats for the Ellerbeck Mansion could be the vast amount and variety of hotels
that can be found in downtown Salt Lake City. Most hotels can hold more people at a
lower cost than the Ellerbeck Mansion. In struggling economic times, the target market
for the Ellerbeck Mansion may diminish because it becomes more difficult to find people
who are willing to pay higher prices.
Case Study
Pg. 3
Market Segmentation
1. Demographic: There are many ways to segment the market demographically. Two that
would be meaningful for the Ellerbeck Mansion are age and marital status. The age and
marital status of the target market will determine what kind of services The Ellerbeck
Mansion provides. Older adults would traditionally look for a relaxed vacation while
teenagers prefer more excitement. Additionally, singles may enjoy a social scene while
couples might appreciate more intimacy. Possible target populations include:
a. Years of Age
i. 0-12
ii. 13-20
iii. 21-45
iv. 46+
b. Marital Status
i. Singles
ii. Couples
iii. Families of 3 or more
2. Geographic: Does the Ellerbeck Mansion sell services to a specific community, state, or
region? Segmenting the market geographically could be meaningful for the Ellerbeck
Mansion in deciding whether to spend resources marketing locally, nationally, or
internationally. Possible geographic target markets consist of:
a. Locals
b. People outside the state
c. People outside the country
3. Psychographics: Although the Ellerbeck Mansion may market to a certain demographic
or geographic group, their psychographics or lifestyles may still be very different. It is
important to determine the type of experience that the Ellerbeck Mansion wants to create.
The market could be segmented for people seeking:
a. High adventure
b. Tourism
c. Convenience
d. Relaxation
Case Study
Pg. 4
4. Behavioral: Price sensitivity and patterns of use are behavioral characteristics that the
Ellerbeck Mansion would want to consider. Higher-income earners may have more
interest in high-quality services and amenities instead of lower-income earners who may
seek more value based services. To determine a customers preferred price point, the
market could be segmented based on socioeconomic status such as:
a. Upper class
b. Middle class
c. Lower class
Primary and Secondary Markets
Primary: Based on the market segments, the primary target market was determined to be
couples. This is because all 6 rooms in the Ellerbeck Mansion have only one bed, big enough to
fit two people. It is an intimate environment and does not lend itself to be an extremely social
atmosphere. The couples population meets the segment criteria as it is measurable and
accessible. It is wide enough to include all kinds of couples young and old, married or not, but
eliminates the single population and larger traveling families.
Secondary: The secondary target market will be based on socioeconomic status and focus on the
upper class. The reason for this is because the Ellerbeck Mansions price point is above the
average hotel price in Salt Lake City according to sites such as TripAdvisor and Priceline. It
provides high class amenities that may not be affordable to people in the middle and lower
socioeconomic classes. The upper class population may naturally consist of older adults who
have built their wealth over the years, but by keeping our secondary population as upper class
and not limiting it based on age, we are able to market to wealthy young couples as well.

Case Study
Pg. 5
Competitors
1. The Majesty Cove Mansion has a comfortable, intimate feel much like the Ellerbeck
Mansion. The difference is that the Majesty Cove Mansion markets more to families
and/or large groups as it provides a game room, a movie theatre, and large meeting and
dining areas. It sleeps 25 people and reservations can be made at $799 per night for the
entire mansion. When divided among 25, the price per person is much less than the
Ellerbeck Mansion. The Majesty Cove Mansion is much closer to the mountains and ski
resorts which provides a different experience than the Ellerbeck Mansion.
2. Homewood Suites by Hilton in Salt Lake City is another primary competitor for the
Ellerbeck mansion. Homewood Suites is middle ground between an intimate mansion and
a regular hotel by providing larger, more fully equipped rooms than the Ellerbeck
Mansion. They are able to accommodate more people because they have more space and
they offer comparable prices to the Ellerbeck Mansion. However, their rooms arent as
upscale and private.
3. The Radisson Hotel is located in the heart of downtown Salt Lake City and provides a
comfortable stay for travelers. Unlike the Ellerbeck Mansion, the Radisson Hotel has 381
large hotel rooms and suites. This makes it more of a social environment. The Radisson
has a lower average price point than the Ellerbeck Mansion and seems to market to those
traveling for business as it provides larger spaces for business or group meetings. They
have high-end amenities, and a fairly high price point, but seem to target the working
class.

Case Study
Pg. 6
Perceptual Brand Map

This perceptual map took two important characteristics from the primary and secondary target
markets. One is that couples generally enjoy an atmosphere that is intimate and private. The
second is that upper class individuals more likely prefer to pay for deluxe amenities. The star
represents the most ideal balance of these two characteristics based on our primary and
secondary target markets. While the Majesty Cove Mansion provides high end amenities and a
private atmosphere for a large group or family, it is not intimate for a couple which is why it is
depicted closer to the public atmosphere. Based on this data, the Ellerbeck Mansion provides the
most private atmosphere and deluxe amenities to meet the needs of our target populations. By
decreasing the amount of people staying there at a time, they could increase the privacy and
more accurately reach the target population, however, this may decrease the revenue provided by
more people paying for a room at one time.
Positioning Statement
For couples of all kinds, Ellerbeck Mansion Bed & Breakfast offers ideal intimacy for a private
retreat. That is because it has the warm and personal feel of home, while maintaining the luxury
of a five-star hotel.
Ellerbeck
Mansion B&B
Majesty Cove
Mansion
Homewood
Suites by Hilton
The Radisson
Hotel
A) Couples
B) Upper Class
Perceptual Map of Salt Lake City Hotels
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Private Atmosphere
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Public Atmosphere
Yellow = Target Populations
Red = Competitors
Green = Ellerbeck Mansion