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Introduction

Luxury hotel offers upscale full service hotel facilities with luxury amenities, personalized and
professional service.
Indigo Hotel is established on 2004, offering breath-taking view of the sea perched on the
shore of Sepang, Malaysia. Indigo Hotel is the first five-star luxury hotel to have appeared in
the city. Indigo Hotel exudes a graceful and timeless elegance, presenting classic themes
accented with personality. The staffs of Indigo hotel engages guests with natural finesse,
always anticipating guests needs but never obtrusive.
Indigo Hotel has set clear marketing goals and objectives and always striving to achieve.
Indigo Hotel intending to provide a positive hotel experience to all of the guests. Therefore,
Indigo Hotel shows professionalism and quality in providing the optimum guest services by
applying skills and expertise in guest orientation to provide the best services and eager to
bring additional revenue through effective operations. Besides, Indigo Hotel take
accountability in delivering a tranquility atmosphere to all the guests. In addition, determined
to accomplish growth targets within the given time and budget.

Market Analysis
a) Segmentation

Geographic Segmentation
Geographic segmentation refers to a market segmentation strategy whereby the intended
audience for a given product is divided according to geographic units. Indigo Hotels
geographic segmentation mainly focuses on geographic location and climate. Indigo Hotel is
located in Sepang, Malaysia which is a town near to urban area like Kuala Lumpur. Indigo
Hotel is built at the seashore of Sepang, a very short distance at approximately half
kilometre to the seaside of Sepang. Guests can easily access to the seaside without using
any transportation. Besides, Malaysia is in summer throughout the year unlike the four
seasons country, therefore, Indigo Hotel manage to be beneficial because of the hot weather
in Malaysia enable Indigo Hotel to operate throughout the year.

Demographic Segmentation
Demographic segmentation refers to the market segmentation strategy whereby the
intended audience for a given product is divided into categories based on demographic
variables. Indigo Hotel focuses on income level, employment status and size of family in
demographic segmentation. In income level segmentation, there are three categories which
are low, medium and high income levels. Indigo Hotel targets the group with higher income
level since peoples with high income relatively have stronger purchasing power comparing to
the low and medium income level groups. High income people has more intention to spend
and enjoy, people chose Indigo Hotel because of the luxury facilities and professional
service offered by Indigo Hotel is what to seek for when people are used to living
comfortably. In addition, white collars and entrepreneurs are targeting by Indigo Hotel but not
blue collars. Blue collars normally seeking for cheaper hotel as the budgets for
accommodation always have a limitation. Moreover, rooms of Indigo Hotel are depending on
the family size of client. For instance, big family needs a Penthouse Suite while smaller
family needs only a Grand Deluxe Room.

Psychographic Segmentation
Psychographic segmentation refers to market segmentation strategy whereby the intended
audience for a given product is divided according to social class, lifestyle, or personality
characteristics. Social class are selected to focus by Indigo Hotel in psychographic
segmentation. Social class can be categorised into three level such as lower class, middle
class and upper class. Upper class refers to rich people who has ability to spend,
emphasizing on lifestyle and willing to enjoy the life. Middle class is the class of people who
are in the middle of a societal hierarchy and basically in between working class and upper
class. However, lower class referred to the group of people who employed in blue collars
and manual, normally struggling for live. Whereas, upper class is targeted since people is
looking for luxurious and the cost of room per night is slightly pricy for middle and worker
class.

Behavioral Segmentation
Behavioral segmentation refers to market segmentation strategy whereby the division of
the target market is made according to the patterns in which the people in the market live
and spend their time and money. Indigo Hotel looks into benefits sought, and occasion in
behavioral segmentation. For benefits sought, Indigo Hotel stresses on the extravagant
environment and the tranquil atmosphere. Furthermore, for occasion segmentation, Indigo
Hotel will be the choice for people demanding luxury who comes to the seaside at Sepang.
For instance, client will look for Indigo Hotel at the seaside of Sepang, but looking for
another hotel at another occasion.

b) Targeting

Indigo Hotel used differentiated marketing strategy which is also called multi-segment
marketing strategy. It is a market coverage strategy whereby a company attempts to appeal
to two or more clearly defined market segments with a specific product and unique
marketing strategy tailored to each separate segment. Typically differentiated marketing
creates more total sales than undifferentiated marketing, but it also increases the costs of
doing business. Indigo Hotel chooses to target at demographic segmentation because
opportunity obviously be seen at that sector. By targeting at the rich and big or small size
family, profitability of Indigo Hotel might increase. This is because high income group has
more willingness to spend to get to enjoy a better life. Indigo Hotel can also increase
competitiveness in the market as the brand recall and equity of Indigo Hotel with rich family
will be very high. The market share might increase and the chances of a new competitor
entering might be low. Optionally, the loyalty of customers towards Indigo Hotel might rises
at the same time once the satisfaction on service increases.

c) Positioning

Product (Service)

Indigo Hotel contains 280 guest rooms in total and all rooms are comfortably furnished for
business, enjoyment and pleasure. Five kinds of rooms are available to be chosen from, like
Superior Room, Grand Deluxe Room, Executive Room, Emperor Room and also Penthouse
Suite. All the rooms contains the basic features such as electronic keycard system,
individually controlled air-conditioning, 40 inch LCD TV with in house movie channels,
electronic safe, hairdryer, daily local newspaper, International Direct Dial (IDD) telephone,
executive working desk and also wireless internet access. Each different room comes with
different designs and different extra features. For instance, Superior Room furnished with
either a king-sized bed or twin bed; Grand Deluxe Room contains extra one king-sized bed
than Superior Room; Executive Room has splendid interior design than the two before;
Emperor Room contains classy wooden furniture and also splendid interior design by
famous designer; whereas Penthouse Suite is located at the top floor of the building, the
duplex and two-bedroom Penthouse Suite command expansive sea views from the floor-toceiling windows, yet, open floor plans enhance the spaciousness and residential ambiance
with living room and dining areas that are perfect for entertaining or hosting small business
gatherings. Besides, Indigo Hotel provides public facilities like infinite pool, lounge, coffee
and tea bar, conference facilities, spa and sauna, Jacuzzi and gym room while services
available are parking and bag services, multi-lingual staffs, babysitting, 24 hours room
service, 24 hours on call doctors, airport transfer and also laundry and valet service.

Price

The price of the rooms varies depending on the season. For normal day, Superior Room
costs RM459, Grand Deluxe Room costs RM529, Executive costs RM609, Emperor Room
costs RM759 and Penthouse Suite costs RM999. However, Indigo Hotel increases the price
of room by 10% during festive season with the reason of shortage of room exists due to high
demand.

Place
Indigo Hotel sit in Sepang and the district located in the southern part of the state of
Selangor in Malaysia. Since Indigo Hotel is luxury beach hotel, hence it targets the travellers
at Sepang seaside. The seaside, during festive season like holidays, number of guests
increases whereas during off-season like working days and school days, number of guest
will relatively decreases. Indigo Hotel set up guideposts at the main roads surrounding the
seaside in order for guests to get in easily.

Promotion
In order to increase companys revenue, Indigo Hotel pays times and efforts in promoting the
hotel. Indigo Hotel involves in MATTA fair, distributing brochures with detailed information
about Indigo Hotel to publics, providing room package at a cheaper rate for early birds.
Besides, Indigo Hotel advertise on billboards at highways near to the middle of city to attract
urban area peoples. Moreover, Indigo Hotel created value room deal on the most popular
group buying website in Malaysia, Groupon. Indigo Hotel offers a deal of 30% discount on
every room at a limited time period. After payment is done, people can download the
voucher directly and print it out then present it during check-in with the terms and condition
that reservation has to be made prior 2 weeks and only for first time guest. In addition, Indigo
Hotel invites blogger celebrities to have a stay in hotel and pay for the advertising post
written on the bloggers blog. Many people read blogs, people are more easily be seduced
with what favourite bloggers doing, having, wearing and using. Therefore, Indigo Hotel also
using this tactic to attract more blog readers in becoming the guests of the hotel. Instead of
hard-selling, Indigo Hotel held contests on social website like Facebook. For instance,
contestants are only required to answer simple questions about the hotel, after that share
the post to their timeline and tag 3 friends. The one with most likes may win the three nights
stay package. This action helps to promote the hotel by using powerful public forces.

Financial Information

[ Appendix A.1 ] Indigo Hotel gets funds from few methods. Firstly, Indigo does investing in
order to discover more profits. Secondly, corporation increases profit mainly by room
providing accommodation to customers. Thirdly, Indigo Hotel in collaboration with travel
agencies, agreements are made between Indigo Hotel and those agencies to ensure
symbiosis. Besides, Indigo Hotel receives income from providing places for meetings and
events. Moreover, Indigo hotel provides wedding package for all races with different price
range.
[ Appendix A.2 ] Indigo Hotel uses the funds in fund raising, management and of the hotel,
purchasing capital for hospitality usage, maintenance and improvement of the hotel and
lastly for administrative purpose.
[ Appendix A.3 ] Revenue growth of Indigo Hotel shows directly proportional in recent five
years, this means that Indigo Hotel is profiting.

Conclusion

This report has included that the four segmentation: geographic segmentation, demographic
segmentation, psychographic segmentation and behavioral segmentation for Indigo Hotel
which located at the seashore of Sepang, Selangor, Malaysia. Indigo Hotel targeting at
demographic segmentation using differentiated marketing strategy which is also called multisegment marketing strategy. Indigo Hotel has used marketing mix for positioning, marketing
mix includes product strategy, price strategy, place strategy and also promotion strategy.
Financial information of the hotel shows that Indigo Hotel is capable in growing and
expanding larger in the industry. However, Indigo Hotel needs to be optimistically aware,
rivals are increasing rapidly in this few years since hospitality industry is profitable. While
consumers are spending less, meaning that differences have to be made. Customers always
want engagement, Therefore Indigo Hotel engages on lateral thinking skills, embrace social
media, get networking to engage clients in an experience either personally or virtually and
keep the existing customers. Keeping existing customers are much easier than getting news.
Customers are becoming increasingly aware of the environment. Customers are not just
wallet, to be successful in the industry, it is logical to maximize customers moments of truth
and enhance customers hospitality experiences.

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