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广州金茂经济型酒店营销问题与对策---基于 4P 理论的研究

发布时间:2016-04-28 10:50

1 Introduction


1.1 Research Background

In the recent ten years with the rapid development of mass tourism, combined with the2008 Beijing Olympic Games and 2010 Shanghai world expo as a dose of forcedinjection to Chinese tourism industry , Chinese hotel industry ushered in theunprecedented development opportunity. As a kind of fast and convenient, economicaland practical in the hospitality industry, economy hotel is more popular withconsumers and developing rapidly. According to The First Half of 2014 ChineseEconomy Hotel Industry Analysis Report shows that as of the first half of 2014, totalnumber of budget hotels in China has reached 8,313, a total of 837,220 rooms. Since2005 and 2006, economy hotel entered into overdrive and stayed strong growth. Notonly numerous domestic economy hotel brands, but also famous international hotelgroups have entered Chinese domestic market, making the economy hotel industrymarket competition more intense. So improving the awareness of their own marketingand making the right marketing strategy are very important for the long-termdevelopment of economy hotels in the future.

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1.2 Research Significance

1.2.1Theoretical Significance

In the recent years, with the overwhelming development of budget hotel,the studies inthis area are on the increase accordingly.But there is little systematic study about howa specific long-established budget hotel should find its target market and make anapplication of 4P marketing strategy to improve its market competitiveness. Based onthe overview of the studies about the budget hotel, the author in this thesis seeks toexplore how the budget hotel should position itself in the market and how to exert itsadvantages by the means of 4P marketing strategy, to give some theoretical referencesto the budget hotels of the same kind.

1.2.2 Practical Significance

Guangzhou Jin Mao Budget Hotel, as a state-owned budget hotel in Guangzhou,should also face the fierce competition in the hotel market, despite the fact that by farthere is no radical reformation happening to its system. For the bondage ofconventional culture of state-own industry, the tendencies like “waiting” and “relying”are relatively severe. The traditional operation and management modes and marketingstrategies are still in use today.To be outstanding in the fierce competition andmaximize their profits, the hotels must improve themselves in competition and adjustthemselves to markets. Among all the hotel operation and management,the priorityshould be given to marketing. To realize the objective of maximizing profits andensure the stable and sustainable hotel development, we have to choose theappropriate marketing strategy and expand new marketing ideas. This thesis is toexplore the problems of market positioning strategy by the use of knowledge learnedfrom MBA courses. Considering the hotel actual operation,it is designed to putforward 4P marketing strategy beneficial to hotel development, constructive advice on4P marketing strategy and practical proposals, providing the hotel industry with somepractical references of the marketing in the meanwhile.

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2 Literature Review


2.1 4PTheory and Research Status

2.1.1 4PTheory

The Marketing Theory of 4Ps emerged in the 1960s in the United States, followingthe proposal of marketing mix theory. In 1953, Neil Borden (Neil Borden) coined theterm "marketing mix" in his inaugural speech in the American Marketing Association,which is intended to refer to that market demand to some extent is influenced byso-called "marketing tag" or "marketing element".

In 1967, Philip Kotler in the first edition of his best-selling book MarketingManagement: Analysis, Planning and Control, further confirmed marketing mix basedon 4Ps methods, namely:Product----Focusing on developing the function of product,demanding products have unique selling point, and placing the functional demands ofthe product in the first place.Price----According to different market positions, workingout different pricing strategies. The product pricing is based on the companies’brandstrategy, emphasizing the quality of the brand.Place----Companies do not face theconsumers directly, but rather focus on the cultivation of dealers and the establishmentof sales network. The contact between the company and consumers is carried outthrough distributors.Promotion----Many people narrowly understood Promotion as"promoting sales". In fact, it is very one-sided. Promotion should include branding(advertising), public relations, promotions and a series of marketing activities.

4Ps marketing theory actually studies the marketing problems from the perspective ofmanagement and decision. From the perspective of management and decisions, thevarious factors (variables) which influence marketing activities can be divided intotwo categories: one is the uncontrollable factors that marketers can not control themarket itself; marketing environment, including micro-environment and macroenvironment; the second is controllable factors that marketers can control their ownproducts, trademark, brand, price, advertising, channel, etc., and a variety ofcontrollable factors . 4Ps is the summery of all the controllable factors:

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2.2 The Theoretical Foundation

2.2.1 STPMarket Positioning 

TheoryThe concept of market segmentation was first put forward by US marketing scientistWendell Smith (Wendell Smith) in 1956, and thereafter, the US marketing scientistPhilip Kotler made further development and refinement of Wendell Smith theoreticaland eventually formed a mature STP theory - market segmentation (Segmentation),target market selection (Targeting) and positioning (Positioning). It is the core ofstrategic marketing. See Figure3-1

广州金茂经济型酒店营销问题与对策---基于 4P 理论的研究

Market Segmentation:In marketing, market segmentation is the basis for strategicmarketing activities, as well as the key to the development of marketing strategy. Aproduct can not meet the needs of customers. Therefore, companies must be taken todetermine the target market segments in the market to aim at the unique needs ofconsumers.The concept of market segmentation was first proposed by the US scientistWendell Smith in the mid-1950s. The market segmentation refers to that the companysegment the market according to the desire and demand of the consumers. If thecustomers belong to the same segment, their needs and desires are very similar. Ifthe customers belongs to different market segments, their needs and desires are verysimilar.Similarly, the company can segment the market segmentation according togeographical environment variables, demographic variables, consuming psychologicalvariables and consuming behavior variables. when the market is segmented bygeographical environment variables, consumers in different geographical environmentwill exhibit different characteristics of demand.Demographic segmentation refers tothat the company segment the overall market according to demographic factorsincluding age, sex, occupation, education, income, social class, etc.

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3 Introduction to Guangzhou Jin Mao Budget Hotel Marketing...................14

3.1 The Development Status of Guangzhou Budget Hotels.............14

3.2 The Marketing Status of Guangzhou Jin Mao Budget Hotel..............16

3.2.1 Introduction to Guangzhou Jin MAO Budget Hotel................16

3.2.2 The Marketing Situation of JM Hotel................... 20

4Analysis of JM Hotel Marketing Strategy.........................27

4.1 STP Marketing Analysis of JM Hotel........................26

4.1.1 Market Segmentation................26

4.1.2 The Selection of Target Market............29

5 4P Marketing Strategies for JM Hotel...................45

5.1Product Strategy......................46

5.2 Pricing Strategy.........................46


5 4PMarketing Strategies For JM Hotel


5.1 Product Strategy

Based on the target markets and market positioning, JM hotel should redesign itsproducts and services according to the demands of the business guests.Throughanalysis, the author think that the hotel’s target market position should be focused onthe average individual business guests and the supplementary market should betargeted at the small and medium conference groups, which the potential marketshould be aimed at the business guests from Middle east and north east china, whichshould become the future growth point. The hotel should adopt the strategy of marketcentralization, and devotes all the resources to the market of business guests. And thisinvolves designing the product to satisfy the business guests and the hotel should doits best to improve the coziness and comfort level of its products and services.

The hotel need the following reconstructing. Firstly, to replace the carpets with moresoft ones and wall paper with new and fresh ones. Secondly, to decorate the walls withpictures reflecting the custom, geography, climate,architecture and folk life in northeast china. In this way, it will make the room warmer and cozier, more characteristicof local uniqueness, familiar to the guests from northeast and fresh to those fromsouth.Thirdly,to replace the bedding with linen sheets and feather mattress, themattress good for sleep, the green pillows filled with cassia seeds and dry flowers.These measures is helpful for the guests to have a good sleep, which is a good way forthe brain workers to relax themselves. Fourthly, to place a safe in the room. It will bemore convenient for the guests to store money and valuable information. Fifthly,toprovide new bath towels, towels, hair drier and weighting scale. This will help the thebusinessman maintain good image. The cost for the shampoos in each room will beimproved by 100RMB, but the guests will be highly satisfied with the hotel. Thelast ,to replace the carpets with green ones, and the wallpapers should also be green.This is specially designed for the Middle east customers. And yellow should beforbidden, for yellow is Arabian’s taboo. And the hotel should prepare Alcoran for thecustomers believing in Muslim.

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6 Conclusion

Marketing Strategy as a guide throughout the enterprise business activities, plays animportant role to win the competitive advantage and the sustainable healthydevelopment for the enterprise. JM Hotel as a budget hotel in Guangzhou, relying onYuehai Groups, has a advantage in geographical location, facilities, social resources,but in the face of an increasingly competitive in hotel industry in Guangzhou, it mustwork out a suitable marketing strategy to increase market competitiveness, so that theenterprise can get a sustainable development. So this paper studies on how to make anapplication of 4P marketing strategy for JM Hotel under this background, whichwould have an important practical significance.

This paper selects Guangzhou Jin Mao Hotel as the study object, and makes asystematic analysis of the hotel marketing strategies through 4P theory by collectingand sorting its market information and management documents. First, the authormakes a brief introduction of the hotel basic situations and explores the problemsexisting in its marketing. And then in the part of analysis, the author uses 4P theory toanalyze JM Hotel’s marketing problems from four perspectives: product, price, place,promotion. Then the author segments the JM hotel market again according to STPtheory, and works out its target market, which mainly consists of business guests andconference guests, with the business guests from Northeast and Middle east area as itssupplement. And the author put forward further suggestions that the hotel shouldposition itself as a middle-end business budget hotel with Far East Style. Finallybased on the above analysis and 4P theory, the author designs the corresponding pricestrategy, product strategy, channel strategy, and promotion strategy, in the hope ofhelping the hotel out of its predicament.

reference(omitted)




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