2.

Reasons for Success

2.1 Unique Selling Point
In a 2014 interview with Skift ("About Skift", 2017), then CEO Greg Dogan explained that the
common thread in each of the groups hotels is the unique Asian Heritage and hospitality which
comes from the heart. The Asian heritage are touch points in each hotel, whether in the
architecture or the Chinese teas and restaurants through to the traditional Asian dishes, offered in
99% of all hotels worldwide (Oates, 2014). Building globally on the uniqueness which made the
group the leader in Asia Pacific.

2.2 Customer Loyalty Program

The Golden Circle ("Golden Circle Frequent Guest Programme", 2017) frequent guest program
recognizes and award guests for their loyalty and members enjoy exclusive privileges across the
group. Guests receive personalized attention based on historical preferences and membership
includes benefits from partnerships and alliances with Taj InnerCircle (largest loyalty program in
India), KrisFlyer (SIA loyalty program), and Hertz Car Rental to name a few.

Figure 10: Golden Circle members receive exclusive privileges and benefits from a number of strategic
alliances and partners ("Shangri-La Hotels and Resorts | Golden Circle Frequent Guest Program", 2017)

2.3 Technology
A new CRM3 Platform integrates seamlessly with the Golden Circle Loyalty Scheme. The
Serenata IntraWare product also provides e-marketing, and assures that guests are given the
correct data during their stay ("Serenata Hospitality CRM", 2017). This software was a massive
boost for the company in its online marketing effectiveness and helps them stay on top of their
guests needs. Identifying the need to make better use of their customer data, ensures the
ongoing success of the groups policy to know each guest personally and make them feel part of
the family. It also allows for their hotel staff to be more empowered to provide customized
services to guests (Ady, 2015).

2.4 Identifying Changing Markets

Shangri-La were never caught up in their historical success, and identified the rise of millennial
travelers (Mohn, 2014). The Hotel Jen brand was specifically launched in 2014 to cater for this
disruptive market, with a separate management team solely focused on this demographic (Oates,

3
CRM = Customer Relationship Management
pg. 8
2014). With millennials estimated to make 320 million international trips by 2020 (Lim, 2016), the
Group were early adopters, identified the potential of this market, and positioned themselves to
drive growth and further success from this group. Recognizing alliances for mutual benefit allows
for continued success.

Figure 11: The Resonance Report on U.S. Millennial Travelers, showing 58% of respondents in the age group
18-35 preferring full service hotels/resorts when travelling (Resonance Consultancy, 2015), indicating the
importance of this growing market segment.

2.5 Segmentation, Targeting, and Market Position

Shangri-La have very successfully implemented this process in order to gain competitive
advantage and not to confuse their clientele (Pettigrew, & Whipp, 1998). Clear segmentation of
the kind of customers they want to serve by using a differentiating strategy (Chamberlin, 1969)
upper middle class to upper class; targeting to serve the identified segment by leveraging on their
unique attributes, and finally implementing the targeting by positioning the product and price
correctly ("Segmentation, Targeting, and Positioning", 2017).

pg. 9
 Figure 12: The Segmentation, Targeting, and Positioning Process

2.6 Service Training Program

Shangri-La invests heavily in employee training and development through its Global Academy
("Global Academy", 2017). The program offers training in leadership and hospitality modules and
allows staff to develop and grow their careers. The resulting factors are that staff are made to feel
valued, are then motivated and in turn are willing to provide and satisfy guests needs and
ultimately gain customer loyalty (Roll, 2006).

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