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THE SERVICE MARKETING ACTIVITIES OF

INTERCONTINENTAL HANOI WESTLAKE

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 TABLE OF CONTENTS

A. INTRODUCTION 3
1. Introduction about InterContinental Hanoi Westlake 3
2. Executive summary 3
B. EXTERNAL FACTORS – FIVE FORCES MODEL 4
C. MARKETING STRATEGY 6
1. Segmentation 6
2. Targeting Strategy 7
3. Positioning 8
4. Differentiation 8
D. MARKETING MIX 9
1. Products 10
2. Place 15
3. Price 15
4. Promoting 16
5. Process 17
6. Physical Environment 18
7. People 19
8. Recommendation 20
E. SWOT ANALYSIS 22
F. CONCLUSION 24

A. Introduction

1. Introduction about InterContinental Hanoi Westlake

InterContinental Hotels & Resorts is a luxury hotel brand created in 1946 by Pan Am's founder

Juan Trippe. It has been part of InterContinental Hotels Group since 1998. As of November

2020, 210 InterContinental hotels were featuring over 71,045 rooms worldwide.

InterContinental Hotels and Resorts have been on the international scene for over 60 years with

properties located in more than 60 countries. In 2007, InterContinental Hanoi Westlake opened

its door to the public in December.

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The InterContinental Hanoi Westlake is located on the largest lake’s peaceful waters and is

adjacent to the famous 800-year-old Golden Lotus (Kim Lien) Pagoda. Ideally situated just

minutes from the Old Quarter, the hotel offers a welcome haven from the bustling city center.

With the combined comforts of the ever-tranquil West Lake, spacious accommodation, luxurious

facilities, and attentive Vietnamese hospitality

Adorned with 318 stylish guestrooms and suites alongside five distinctive restaurants and bars,

an open-air pool, an extensive fitness center, a dedicated meeting center, and an exclusive Club

InterContinental Lounge, InterContinental Hanoi Westlake is designed to offer a complete sense

of comfort and harmony.

2. Executive summary

The report is based on the comprehensive analysis of the strategy that The InterContinental

Hanoi Westlake has taken in the past, present, and the strategy that the company needed to take

in the future to remain in the same position that they are now.

This report shows the strategic marketing plan of The InterContinental Hanoi Westlake. The way

that they have been doing in the previous days and the way they are doing now. And also the

marketing that they can do in future. With the older references, the report shows the plan for The

InterContinental Hanoi Westlake. This report contains a short introduction of the company,

company analysis, marketing plan component, situation or market analysis, and competitor’s

analysis. The report also shows the product and services that InterContinental Hanoi Westlake

can provide in the future. 

B. EXTERNAL FACTORS - FIVE FORCES MODEL

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 Threats of new entrants: Low

Hanoi is considered one of the most ideal destinations in Vietnam for tourists. The

development of the tourism industry and the improvement of living standards also

increase domestic customers’ travel and resort needs. Otherwise, building a 5-star hotel

requires a large amount of capital, estimated from tens to hundreds of millions of dollars

including construction, design, staff training costs, etc. The ability to access distribution

channels is relatively challenging so this makes entering into this industry more difficult.

Currently, the business environment in Vietnam is relatively open and the regulatory

policies to enter the industry are not strict. Therefore, the threat of new entrants is low to

the InterContinental Hanoi Westlake Hotel.

 Bargaining power of suppliers: Low

5-star hotels need to attract experienced staff to be able to serve customers better.

However, this is not a big problem for hotel managers because these hotels have high

standard staff training programs and the demand to work at hotels is also high. There are

many standard equipment suppliers for hotels so the switching cost for Intercontinental

Hanoi Westlake Hotel among suppliers is low. This makes the bargaining power of

suppliers against Intercontinental Hanoi Westlake Hotel.

 Bargaining power of buyers: High

Because of COVID-19, the travel industry has almost frozen, leading to a serious

decrease in resort and tourism demand while the number of hotels is very large. The

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 buyers’ cost of switching is relatively low. Now the bargaining power of buyers is high

for Intercontinental Hanoi Westlake Hotel.

 The threats of substitutes: High

In the current economic downturn in the world due to COVID-19 as well as in Vietnam,

this greatly affects the choice of customers. The price difference between a 5-star hotel

and a 3-star and 4-star hotel is huge. In addition, 1 to 2-star hotels, and other

accommodation services such as motels, guest houses, inns are also interchangeable

products so the buyer switching costs are low. Thus, the threat of substitutes is high for

Intercontinental Hanoi Westlake Hotel.

 Threats of rivals: High

The hotel industry is a fragmented industry, so there is a relatively high level of

competition. Moreover, the number of businesses involved in the hotel business is huge.

There are thousands of businesses currently doing business in this field in Vietnam so the

switching cost is low. The industry exit cost is relatively high due to the high cost of

infrastructure, along with a large number of employees. This is also a factor that makes

the level of competition in the industry increase. Thus, the competitive rivalry against

Intercontinental Hanoi Westlake Hotel is high.

C. MARKETING STRATEGY

1. Segmentation

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 Intercontinental Hanoi Westlake had segmented their customers into three categories

which are demographic, psychographic and behavioral segmentation.

Base for

segmentation

Demographic Guests are divided into different Age: 25 - 55

segmentation segments based on age, gender, This segment contains mostly

income, family, educational level, married people who have stable

occupation, etc. finance, career as well as family

life.

Gender: Male and Female

Income: high income

Psychographic Guests are divided into different

Both leisure and business customers
segmentation segments based on their social class,
who demand high-quality service,
lifestyle, and personality
upscale enjoyment and chasse
characteristics.
fashionable life

Behavioral Guests are also divided on the basis of Benefit sought: 

segmentation their knowledge, attitude, use, or -Experience luxurious and cozy

response to a product or service. resort space in the heart of the city

-A place for meetings, conferences

and events

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 2. Targeting Strategy

The InterContinental Hanoi Westlake is a service focused firm that offers a narrow range of

services to a fairly broad market. The hotel has defined a clear customer goal:

 Short-term business travelers: 20%

 Long-term visitor: 35%

 Vietnamese business travelers: 8%

 Guests of conference, seminars, and international events: 7%

 European tourists: 12%

 Asian tourists: 12%

 Other guests: 6%

In defining this targeting strategy, the hotel focuses primarily on the guests who it can best serve,

which are:

 European market: the most interested visitors are French customers

 Asian market: the most interested visitors are Chinese, Korean, and Japanese

 Domestic market: short-term business customers from provinces and cities

Currently, InterContinental Hanoi Westlake is trying to focus on serving more domestic

customers since the number of international arrivals dropped sharply due to the impact of

COVID-19.

3. Positioning

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IHG group is one of those few firms to start the luxury hotel chain business in the world. Even

today the brand never compromises the quality of its product including the InterContinental

Hanoi Westlake. Whenever it comes to this hotel, people think about the luxurious hotel at a

reasonable price with great services. Even though the hotel does not target the luxury market

segment but still manages to give the luxury feel to the customers which makes them feel that

they are valued. 

Hence, the positioning of the InterContinental Westlake is a hotel with luxury amenities and

services.

4. Differentiation

Brand differentiation has always been the goal of InterContinental Westlake throughout its

construction and development process. The hotel always puts the customers as the center in all

activities or in other words, every business idea of the hotel starts with the customers. Eric

Pearson, Marketing Director of InterContinental Hotels Group shared: “Positioning and

Differentiating the Brand is the deciding factor, but the important thing is that they have a

similarity between the real condition and the customers’ perception.” 

The strategy of Intercontinental Westlake is to differentiate itself from the competitors by

investing in luxurious design, comfort, and customer service. Touch screens are installed in the

hotel lobby to help customers have a glance at restaurants or theaters.

The reception staff are fluent in English and assist guests with the necessary information before

they even arrive at the hotel. Each room is equipped with luxurious Gilchrist & Soames

bathroom facilities, Keurig coffee machines, spacious showers, computers, and 42-inch TVs.

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All services performed by the hotel come from the customers’ ideas. The hotel realizes the needs

of the guests from the stage of finding a room to check out. It always listens and improves the

incomplete to bring the most comfort to visitors while staying here. Whether people come to

InterContinental Hanoi Westlake for the purpose of relaxation, business, or business travel, the

hotel always ensures that all guests' needs will be fully met, from the most little things. In this

way, InterContinental Hanoi Westlake creates a differentiated customer experience that few

competitors can make.

D. MARKETING MIX

InterContinental Westlake Hotel is one of Hanoi's most well-known luxury hotels. For them,

hospitality services are the main product in their marketing mix. They are determined by how

well they can meet the requirements and desires of guests. The hotel as a product is further

divided into several brands, such as Novotel, JW Marriot, Sheraton and others. Each brand has

its own style and theme that distinguishes it from the competition. JW Marriot, on the other

hand, is one of the most competitive competitors. InterContinental has a nearly identical concept

for these businesses, but they applied the same concept to the location, environment, and guests

ease, which helped InterContinental become so popular in Hanoi.

1. Products

In this part, we will use The Flowers of Service model to analyze the products sector between

InterContinental Westlake Hotel and JW Marriot Hotel.

  InterContinental JW Marriott

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Information InterContential_the British hotel Marriott has a broad range of

company which is one of the most operations with nearly 30 hotels. It

dominant, superior and leading hotel aims to provide excellent quality

groups in the world. Its vision “ Great customer service and facilities for .

hotel guest love “ shows that they want By using the same concept with the

to be a great hotel full of love for location, environment and according

customers. Nowadays, they have a hotel to the convenience of customers, it

brand with the best reputation in Hanoi. makes JW Marriott in Hanoi.

Order taking Both hotels frequently update their range of rooms on web pages or travel

applications with detailed information and pictures so that customers can easily

choose for their needs. Moreover, customers can directly book rooms at the

reception in the hotels.

Billing Customers can easily get all price information about different rooms through

the website, flyer, counter, customer’s service centre and hotline. At their hotel

lobby, many counters are waiting for customers to check in or make payment so

customers do not need to waste their time waiting.

Payment With the online payment, customers could use internet banking or enter credit

card numbers online. With the offline, they may use both insert cards of cash

for their payment at the reception counter.

Consultatio InterContinental and Marriot offer training and inspiration to their employees

n regarding services they need to offer, this includes the information of type of

rooms, the furniture in every room with extra services and how the customers

could fulfill their expectation and needs.

Hospitality InterContinental is divided into various JW Marriott provides lodging

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room types to meet the diverse needs of services worldwide in various

customers. All rooms are equipped with segments. Marriott also offers

modern facilities and expensive lodging services under the

aesthetic furniture to bring a luxurious premium, select and timeshare

stay space. Besides accommodation categories. It is furnished with

services, the hotel also offers a number homely surroundings and

of additional amenities. Other services equipped with several amenities

to serve customers such as Buffet like free room service, payable

InterContinental, bar area, swimming laundry-service and tea/coffee

pool, outdoor playground, fitness maker in every room. Marriott

center, etc. These services are the has a large number of restaurants

factors that keep customers staying that offer diversified cuisine

longer in order to increase revenue for options to meet the varied food

the hotel. Especially in the COVID 19 interests of its guests. Moreover,

pandemic, they are delivering an it has entered into a partnership

enhanced IHG Way of Clean deal with Sun Line and has

programme to make sure the guests successfully entered the cruise

safety and flexibility. business. In addition, with the

effect of COVID 19, providing a

safer environment for their guests

and associates is a top priority.

By following the public

regulations, practicing social

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 distancing, and wearing masks,

they ensure the safety for their

guests.

Safekeeping InterContinental provides many Customers can fully enjoy the service

safekeeping services such as child care, provided since they provide a variety

parking for vehicles, baggage handling, of safekeeping services. For

etc, however, pets are not allowed in the example: caring for possessions

hotel. With all these services, guests customers bring with them, child

staying in the hotel could feel more care, security personnel, caring for

satisfied and comfortable. goods purchased (or rented) and

others.

Exceptions - The special request in advance of - With the special request in advance

service delivery: InterContinental of service delivery, Marriott provides

supports medical or disability needs for the children needs, medical or

guests, dietary requirements, children’s disability needs for guests.

needs, etc. - Handling special communication: If

- Handling special communication: there are any complaints, customers

They overcome complaints by the can directly contact the manager to

customers at counters and give have suggestions and solutions.

customer suggestions. For example, - Problem solving : With all the

guests are unsatisfied about the room issues about accidents, service

service, or the response from staff. failures or medical emergencies,

- Problem solving : InterContinental Marriott would provide service for

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 helps their customers in resolving help.

difficulties caused by accidents or - Restitution: refunds and

service failure. For instance, if customer compensation are also supported in

injured in hotel, they would help them the hotel.

to have medical treatment.

- Restitution: refunds and compensation

for the dissatisfied customers using the

services in the hotel.

2. Place

InterContinental lies in Westlake, one of Hanoi's most well-known neighborhoods, and is near to

the 800-year-old Golden Lotus (Kim Lien) Pagoda. InterContinental emanates a simple elegance

that makes guests feel welcome, relaxed, and free to be themselves, with a breathtaking view and

a quietly powerful world-class luxury hotel.

Beside that, JW Marriott Hotel Hanoi is located in the new Central Business District of Hanoi.

The airport is nearby, and the National Convention Center is only a short distance away. The Old

Quarter and Hoan Kiem Lake are both neighboring sites of interest. The JW Marriott experience

reflects the surroundings genuinely, brings a sense of harmony and wellness, and creates

wonderful lasting memories.

3. Price

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With InterContinental Hanoi Westlake, the price for the standard room will be 3,000,000 VND

to 5,000,000 VND/ night.It divides the market into divisions based on the guest's standard of

living, such as high scale, luxury, or midscale, and sets prices appropriately. For some products,

it also employs an optional product pricing model, in which it charges a basic price and different

rates for the extras that come with it.

However, the price of the JW Marriot Hotel  will be between 3,000,000 VND to 7,000,0000

VND for 1 night. Their primary goal is to provide the best goods at the best price. Marriott sets

their hotel prices by balancing value and quality, and their pricing approach is maintained

without losing their brand reputation.

4. Promoting

In today's fiercely competitive environment, the image promotion policy is very important. The

purpose of the company is to let customers know and be impressed by their products. However,

due to various factors, the cost of advertising activities is still relatively limited, so the name and

reputation of Intercontinental Hanoi Westlake Hotel has not been widely promoted and well-

known in proportion to the resources of the hotel.     

The promotion activities of the hotel are currently applied such as: 

-   Most products (soap, face towels...), hotel transaction documents, menus, invoices... have

logos, mail addresses, phone numbers of the hotels so that guests can easily contact the

hotel.

-    The hotel regularly prints and folds leaflets (in English, French, Chinese ...) which

provides some information about products and services through images of the hotel's

facilities and equipment. It also provides information about current activities at the hotel.

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-       The hotel also conducts advertising programs on social media specializing in Facebook,

Instagram, Tiktok, online newspapers and so on to introduce themselves.

-       The hotel gets professional reviews from an online newspaper or review outlet like

Traveloka, Agoda, Booking, etc. Therefore, it can reach hundreds of potential consumers

and increase bookings.

-       The hotel produces its journals, newspapers, calendar printing then send to customers

and partners through customer conferences, exhibitions, seminars, fairs. On holidays, the

hotel also offers promotions and discounts to attract guests.

JW Marriott

The hotel's advertising efforts are now being implemented such as developing the best

hotel app for mobile devices and tablets to make booking easier and more convenient. To

promote themselves, the hotel also runs advertising programs on social networks,

focusing on Facebook, Instagram and newspapers on the internet.

=> Being aware of the important role of advertising in the market as well as competition,

in the coming time, Intercontinental Hanoi Westlake hotel is establishing a large-scale

advertising strategy in domestic and foreign magazines to introduce the name of the

hotel, participate in receptions and attend large international seminars.

5. Process

The InterContinental Westlake Hotel 

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 Because of the determination of the target market and the audience of international

tourists, direct sales of products and services without any middle stage is very difficult to

do. Therefore, the establishment of relationships with tourism companies, domestic and

foreign travel caves is a great interest to Intercontinental Hanoi Westlake Hotel, because

this is the village that provides the main guests for the hotel. Intercontinental Hanoi

Westlake Hotel has signed contracts with many reputable partners such as Vinatour,

Vietnam tourist, SaiGon tourist, ... 

In addition, the hotel uses the form of distribution on the internet through online booking

sites such as: vinabooking.vn; booking.com... More than two-thirds of the hotel's guests

are coordinated by these partners. In addition to efforts to expand the network through

travel and travel companies, Intercontinental Hanoi Westlake Hotel also strengthens its

relationships with representative offices, representatives of foreign companies such as

Coca-Cola, Ford, Panasonic ... This is a distribution channel specializing in coordinating

the market of public and business travelers. Although the number of guests is not much

and is not the target market of the hotel, they also bring a relatively large income.

JW Marriott

 The Marriott hotel has collaborated with Grab. The hotel has reserved access to

Grab's customer base via Grabfood, Grabpay, Grabads consumers can also pay for

their meals using the Grabpay app. Moreover, JW Marriott hotel also has

established partnerships with tourism companies, local and foreign travel agencies

to approach a large number of customers.

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 =>  In general, Intercontinental Hanoi Westlake hotel has followed a reasonably thorough

procedure, collaborating with a number of trustworthy partners to improve their business.

6. Physical environment

 The significance of creating an appealing environment has grown in popularity

among academics and hospitality managers as a major aspect in attracting and

delighting clients in the hotel business. Facility aesthetics can influence customer

responses such as emotions, attitudes, satisfaction as well as behavior. The

InterContinental Hanoi Westlake Hotel takes pride in providing a pleasant

environment for its guests. It is decorated with exquisite, modern and luxurious

interiors that have satisfied customers. In addition, the good attitude of the

employees also received positive reviews from customers. They are satisfied with

the service as well as the facilities of the hotel. Furthermore, the hotel places

clients at the heart of all activities, or, to put it another way, every hotel business

idea begins with customers.

 JW Marriott Hotel is also fully equipped with all of the most elegant and modern

facilities. Employees are also trained how to provide attentive service to

customers.

=> Intercontinental Hanoi Westlake has their own professionally skilled, well-trained,

and capable employees. In order to create the most pleasant environment for their guests,

the hotel has also concentrated on interior design and installation.

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 7. People

In hotels, people play a significant role in completing products and services. As a result,

each department has a clear distribution of functions and major tasks. 

The hotel continuously provides opportunities for hotel employees to grow their

businesses. At the same time, create a positive mood among the hotel's personnel by

encouraging them to join trade unions and taking care of their well-being. The hotel aims

to connect the various elements of the hotel and, when necessary, can support other

departments with work that has to be done. The hotel is headed in the right direction. 

JW Marriot’s staff positions are likewise clearly defined; everyone is well-trained and has

excellent professional capabilities. 

In addition, the hotel pays generously for its staff based on their seniority, and position

staff are entitled to bonuses on public holidays and overtime.

=> In light of the current scenario and growth tendency in the tourism service industry,

the Intercontinental Hanoi WestLake hotel can be seen as having made the appropriate

steps in terms of business strategy and marketing mix.

8. Recommendation

   Product

 To ensure a nice rest for guests, the hotel must swiftly spend in upgrading and adding

new equipment (the equipment has deteriorated due to the hotel's operation).

 With food and beverage products, the hotel needs to build more extensive menus to

express its own culinary style.

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  Currently, the Intercontinental Hanoi Westlake Hotel has a full variety of necessary

supplementary services to satisfy the needs of visitors, although these services are still in

short supply. The hotel should include the following amenities: a club or karaoke room, a

reading room with international literature and magazines in English, French, and Chinese,

as well as literature about Vietnam.

Price

The hotel must implement a multi-price strategy, with varying pricing for different

customers. Organizations that bring in a big number of clients should be given

preferential prices, with certain incentives for loyal customers or guests who book early.

 Promoting

 To encourage consumers, the hotel needs to increase its public relations efforts. To

introduce and advertise itself to the foreign market, the hotel should attend international

tourism exhibitions. In addition, the hotel can host culinary events from many countries,

such as learning about Korean and Japanese cuisine, etc.

 Television, radio, and especially travel-related magazines are all good places to advertise.

During the tourist season, the hotel should expand its advertising in the travel guide

magazine or in the travel TV channel. 

 Create advertising messages that are meaningful, original, remarkable, and sophisticated.

 During Covid-19, the hotel might improve its image by registering as a quarantine facility

or distributing supplies to places affected by the outbreak.

 =>  In order to get the best results, the hotel must regularly observe, review and evaluate the

promotion activities of competitors. From this activity, the hotel can draw to see what it has

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achieved and what weaknesses and strengths compared to the competitors, then the hotel will

take advantage of certain opportunities and overcome its limitations.

 Process

-  The hotel should collaborate with travel and tour companies to create high-quality package

tours that provide tourists with comfort and refreshment as they enjoy those products and

services. 

-  The hotel can link, joint venture, and lease a travel consultancy office. It is obligated to

advertise and introduce hotel products and services to clients

-  The hotel should sign contracts with all international booking platforms as soon as possible,

along with selecting and working closely with reputable travel agencies all over the world.

  Physical environment

-  Have comfy lounge furniture that helps customers to unwind. Always vary the music so that

consumers are not bored, or allow them to choose their own music.

-  Add indoor plants for improved health.

-  Reduce noise levels in each individual room.

People

-  Make training an everyday priority and not just a one-time event.

 - Create a nice environment for new employees so that they can focus on serving clients with a

pleasant attitude. 

E. SWOT ANALYSIS

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To evaluate the competitiveness of Intercontinental Hanoi Westlake hotel in the segment of the

5-star Hanoi hotel market, I used the SWOT matrix.  Through that, we can identify the strengths

and weaknesses of the hotel and the opportunities and challenges the hotel is facing at present -

June 2021. 

Strengths Weaknesses 

 It’s a hotel belonging to THG Group -  Price difference between a 5-star hotel

a large corporation in hotel and 3-star and 4-star hotels is huge.

management in the world.  Threat of substitutes is high for

 Beautiful location, right on the surface Intercontinental Hanoi Westlake Hotel.

of West Lake, convenient for travel.   It takes a long time to move between the

 Modern facilities, 5-star standard.  areas , it’s hard to serve the needs of

 Unique architecture, including 1 main guests. 

house and 3 large living rooms by the  The size of the meeting room, the party

West Lake, including many room room is still small to meet the

types and a high-quality management- requirements of customers.

level workforce.  There are not many activities to

advertise the hotel yet.

Opportunities  Threats 

 There are many programs and new  Newly opened hotels in Hanoi such as

products to attract loyal customers to JW  Marriott, Lotte with modern

the hotel. facilities, larger-scale are threatening

 Receive many positive feedbacks on the market share of Five-star hotels.

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 websites such as Agoda, booking.com,  Located right next to Sheraton Hanoi - a

TripAdvisor ... large 5-star hotel in Hanoi with many

 Can attract many foreign guests competitive incentive programs. 

because it’s a hotel belonging to a  In the low season, the number of

large corporation in hotel management visitors to Hanoi decreases, this is a

in the world. challenge for all 5-star hotels in Hanoi.

 Because of COVID-19, the customers

are gradually turning to cheaper options

like homestay or 3-4 star hotels.

F. CONCLUSION

The hotel has devised a realistic marketing plan based on a thorough understanding of the market

mechanism as well as the present business mechanism. This demonstrates the hotel's market

awareness and responsiveness. The hotel has placed a strong emphasis on consumers, which is

critical to its success. Although the hotel has done a good job in certain areas of marketing

strategy, it still has to work on the weaknesses in order to provide the greatest experience to

guests. With further expansion and improvement of the operating system, Intercontinental Hanoi

Westlake Hotel will continue to maintain its position as one of the most popular hotels among

clients.

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 REFERENCES

“JW Marriott Hotel Hanoi.” Marriott International, [online] Available at:

<www.marriott.com/hotels/fact-sheet/travel/hanjw-jw-marriott-hotel-hanoi/.>

InterContinental Hotels Group PLC. n.d. InterContinental Hotels & Resorts. [online] Available

at: <https://www.ihgplc.com/en/our-brands/intercontinental>

Hanoi.intercontinental.com. n.d. InterContinental Hanoi Westlake. [online] Available at:

<http://hanoi.intercontinental.com>

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