đề án
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BUSINESS SCHOOL
MAJOR PROJECT
MARKETING COMMUNICATIONS AT MELIÁ HANOI
HOTEL OF S.A.S-CTAMAD CO. LTD
HANOI, 2022
TABLE OF CONTENTS
TABLE OF CONTENTS....................................................................................2
INTRODUCTION...............................................................................................3
1.1 Rationale...........................................................................................................3
1.2 Research objectives...........................................................................................3
1.3 Research scope..................................................................................................4
1.4 Research structure.............................................................................................4
THEORETICAL FRAMEWORK AND LITERATURE REVIEW...............5
2.1 Marketing communications...............................................................................5
2.2 Marketing communications tools......................................................................5
2.3 Step to do communications activities..............................................................13
2.4 Environmental analysis...................................................................................14
2.5 SWOT analysis...............................................................................................20
RECOMMENDATIONS..................................................................................23
3.1 General strategy for improving communications activities in Meliá Hanoi
Hotel..................................................................................................................... 23
3.2 Recommendation for improving marketing communications activities in
Meliá Hanoi Hotel................................................................................................23
3.3 Conditions for recommendation......................................................................25
CONCLUSION..................................................................................................27
REFERENCES..................................................................................................28
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INTRODUCTION
1.1 Rationale
People's material and spiritual well-being has been steadily advancing in recent
years as the economy has grown. This has unmistakably demonstrated the
necessity of travel for all social groups across the world. The tourism and
hospitality sectors have become vital socioeconomic sectors in each particular
nation as a result of this tendency. Vietnam is not an exception to this trend; it is
well-known for its diverse landscapes and magnificent beauty of nature. The
historical culture of Vietnam has also been made known by a variety of priceless
human resources that have endured for countless generations, particularly Hanoi,
a destination of ancient cultural displays and old quarters. With the
aforementioned benefits, Vietnam has proudly risen to the top of the list of most
alluring travel destinations for both local and foreign travelers.
Due to the increasing demand for travel, a growing number of service suppliers
have enlarged the tourist sector, creating excellent circumstances for many
tourism-related enterprises, particularly hotels. Nevertheless, this has
unavoidably resulted in fierce rivalry amongst firms as they attempt to attract
clients. Therefore, hotel managers need to develop an effective business strategy
to boost revenue and profit in this sector, with the marketing communications
component being given high attention because it helps businesses find their target
customers and benefit from them.
Not going against the trend, S.A.S-CTAMAD CO. LTD has established the
luxurious Meliá Hanoi Hotel on Ly Thuong Kiet Street in the Hoan Kiem district,
thereby capturing a share of this market. After completing my internship at the
hotel, I understood that despite the Meliá Hanoi Hotel's long history of operation,
it has continued to develop and have a significant market share when compared
to other hotels of the same class. The COVID-19 epidemic, however, has been
severely affecting the world in 2020 and 2021, and the hotel sector is one of the
most affected economies. The devastating decline in income is clearly not an
outlier at the Meliá Hanoi Hotel. Vietnam consistently ranks among the tourist
destinations with the highest growth rates in the world, despite the fact that the
global tourism sector has been in "hibernation" for the past two years as a result
of the devastating effects of the Covid-19 outbreak. Therefore, the Marketing &
Communications Manager of the hotel must enhance marketing communications
activities for the company in order to rebuild the brand in the post-pandemic
period and seize the chance to be a successful competitor.
With the desire to research about Meliá Hanoi's marketing communication
activities and propose solutions to outstanding problems, I officially decide to
choose the topic:” Marketing communications at Meliá Hanoi Hotel of S.A.S-
CTAMAD CO. LTD” as my graduate dissertation topic.
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1.2 Research objectives
The objectives of this thesis are:
To synchronize marketing communications theory
To analyze the current situation of marketing communications activities at
Meliá Hanoi Hotel
To propose recommendations to improve marketing communications at
Meliá Hanoi Hotel
1.3 Research scope
This research is conducted at Meliá Hanoi Hotel
Time Scope: From October, 2022 to December, 2022
1.4 Research structure
The paper concludes four main chapters:
Chapter 1: Introduction
Chapter 2: Theoretical framework and Literature review
Chapter 3: Recommendations
Chapter 4: Conclusion
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THEORETICAL FRAMEWORK AND LITERATURE REVIEW
2.1 Marketing communications
2.1.1 Definition
Mr. Chris Fill and Mrs. Barbara Jamieson (2006, 1/12) said that “Marketing
communications are a management process through which an organisation
engages with its various audiences. By understanding an audience’s
communications environment, organisations seek to develop and present
messages for their identified stakeholder groups, before evaluating and acting
upon the responses. By conveying messages that are of significant value, they
encourage audiences to offer attitudinal and behavioural responses.”
2.1.2 Role of marketing communications
Marketing communications is a very successful method for influencing consumer
buying behavior, motivating consumers to spend more and buy more frequently.
On the other hand, marketing communications does not only serve as a bridge
between customers and companies, assisting them in determining the benefits
and drawbacks of various goods and services but it also helps promote staff sales
to boost overall sales performance. Businesses may now readily identify client
preferences and become more competitive in the market as business operations
become much more efficient.
2.2 Marketing communications tools
The marketing communications mix is made up of a collection of tools that may
be used to communicate with a target audience in a variety of ways and to
varying degrees of intensity. The media, or the channel via which marketing
communications messages are disseminated, are additional tools or techniques of
communication. Advertising, sales promotion, public relations, direct marketing,
personal selling and social media marketing are the six main marketing
communications tools.
2.2.1 Advertisement
2.2.1.1 Definition
Advertising is the process of bringing something to the public's attention, usually
through paid announcements that are distributed through print, broadcast, or
internet banner advertising. According to Philip Kotler and Kevin Lane Keller
(2012, 478), advertising is “any paid form of non-personal presentation and
promotion of ideas, goods or services from the sponsor evident by the print
media (newspapers and magazines), telecommunications (radio and television),
network communications (telephone, cable, satellite, wireless), electronic media
(audiotape, videotape, videodisk, CD-ROM, web page), and display media
(billboards, signs, posters)." In addition, Middleton and Clarke (2001) define
advertising within the tourism field as one classic method of communication
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employed by marketing managers as part of marketing campaigns to enhance
target audience awareness, comprehension, interest, and motivation.
2.2.1.2 Role of advertisement
Advertisement is an investment that helps to encourage consumption, a tool for
selling, a way for businesses to accumulate intangible assets, and a way for
businesses to measure how customers feel about their offerings. Without a well-
known brand, even high-quality items cannot ensure the company's success in
today's fiercely competitive market.
Advertisement not only informs customers about the goods and the company's
contact information, but it also raises consumer awareness of the businesses and
pushes them to purchase their goods. Additionally, advertisement has a
significant impact (thank to television technologies, digital techniques, sound and
color effects...). A compelling program and widespread advertisement might give
the appearance that the vendors are powerful and prosperous... The drawback of
advertisement is that it typically only sends a restricted message to consumers
since it is expensive, difficult to regulate, and difficult to evaluate direct
outcomes.
2.2.1.3 Advertisement media means
There are some methods of advertisement as follow:
Media advertising: Advertising on mass media, including TV, radio,
newspapers, magazines, and the internet, has a significant impact and may reach
a wide audience, but it also demands frequent use and substantial expenditures.
Each mass communication medium has common traits that include both strengths
and weaknesses. The organization's goals and capability determine the best
media for advertising.
Outdoor Advertising: The oldest kind of advertising is outdoor, which uses
panels and signboards to promote a product, service, or company. It seeks to
provide clients who are traveling or away from home a stronger impression of the
company. For this reason, the language of marketing communications, visual
design, and color schemes are combined in a way that will grab the attention of
bypassing audiences and give them a more complete impression of the business.
Additionally, technology has been added to the tools, tactics, and procedures of
outdoor advertising in addition to being enhanced.
Advertisement at outlets: Salespeople aim to draw in and persuade more clients
by discussing the functions, features, pricing, and other aspects of the product or
service. Leaflets, posters, hanging objects, and public video displays are some of
the materials utilized in this advertisement.
2.2.2 Public Relations
2.2.2.1 Definition
Public relations is a system of related activities in an organic, consistent way that
creates an image, an impression, a concept, a judgment or a certain belief that
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helps enterprises build and maintain mutually beneficial relationships between
businesses and the public.
2.2.2.2 Role of PR
Although it seems that PR is infrequently utilized, it has the ability to raise
consumer awareness, determine their preferences, and situate items in a way that
will safeguard them. Though PR includes free activities, in reality, businesses
frequently spend money on these activities in order to keep up positive public
relations with the mass media.
2.2.2.3 Main PR activities
Special events: By planning special events like news conferences, seminars,
exhibits, competitions, anniversaries, and sponsorship of sporting and cultural
events, businesses may highlight new products/ services or other company
initiatives.
Press releases: The press release serves as the fundamental building component
of any PR campaign that prioritizes narrative placement. Here, the key details
regarding the products or services are condensed in a style that will grab the
media's interest.
Community relations programme: Many businesses actively encourage their
staff to get involved in social programs including art exhibitions, charity, blood
donation, educational programs, environmental programs, etc. This strategy aids
firms in emphasizing their communications that are built on relationships with
the local community in order to develop a strong brand image among local
residents and stakeholders in general.
Sponsorship: A method whereby a business pays all or a portion of the
expenditures involved with a project or program in return for public support.
Although sponsorship is a costly strategy, it is becoming more and more common
as businesses look for opportunities to improve their brand recognition,
distinguish their products, and reach their target consumers.
2.2.3 Sales Promotion
2.2.3.1 Definition
According to Duncan (2002), sales promotion uses material incentives like
discounts or lower pricing to foster a sense of community and promote behavior.
Additionally, through transient incentives and displays, sales promotion
strategies are primarily created to promote customer purchase, dealer and sales-
force performance in the short-term.
Sales promotion is described by Middleton and Clarke (2001) as short-term
rewards presented as inducements to purchase, including temporary product
augmentation, which encompasses sales force and distribution network as well as
customers in the tourist sector. Additionally, marketing managers must
continually control demand in reaction to unforeseen occurrences in addition to
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the regular daily, weekly, or seasonal changes because of the sales promotion of
tourism items. Additionally, sales promotions are crucial tools in the marketing
arsenal of the majority of travel and tourist companies, since they are particularly
ideal for such short-term demand changes. Besides, the additional items that are
supplied are a value-added incentive to buy.
2.2.3.2 Role of sales promotion
An essential part of every company's operations at its present stage of
development is sales promotion. It offers companies the chance to establish
commercial contacts with both domestic and international partners.
2.2.3.3 Sales promotion activities
Additional products given to customers with a specific quantity of goods
Customers who spend a certain amount of money on a specific number of items
will be offered more of the same kind of products to encourage further purchases.
Sales bonus (quarter, month or year)
Cooperating advertisement with agents
Sample goods/ Free trials
Free trials or sample items are excellent ways to get potential customers to check
out a product or service with no risk or obligation on their part. Retailers may
provide free samples at the point of sale, and B2B or B2C businesses may
provide a free trial or demonstration of their goods or services so that leads and
potential consumers may try them out.
Coupons/ vouchers
Because coupons may be distributed in many different methods, such as through
website, social media, or print materials like receipts or product packaging, they
are flexible. Coupons are a terrific method to express gratitude to repeat
customers or to entice new ones to buy more. Those who have coupons will
receive discounts when they purchase a certain item.
Discount
The enterprises will pack some product bags of the same types together;
therefore, customers only have to pay the cost for a package. This is a method to
stimulate buyers through ensuring them to save a part of cost compared with the
normal price of the product. Another way is to reduce price of product compared
with the selling price metioned on the invoices for each purchase or in each
period.
Competitions/ Giveaways
Customers can compete in social media challenges that entitle them to prizes or
contests to see who can garner the most likes on a social media post that features
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the business. This is a fun way to promote businesses and appreciate consumers
for their enthusiastic patronage.
Bonus for frequent customers
To retain regular consumers, businesses frequently lower prices for them by a
certain ratio or in other ways, including by introducing products of a similar sort.
This promotion strategy is typically applied to wholesale operations.
Product's warranty
This is a crucial tool, particularly when clients are concerned about the caliber of
the goods. When it comes to the length of a product's warranty—one year, two
years, or three years—brands are competing more and more aggressively.
2.2.4 Direct Marketing
Shimp (1997) defined direct mail/direct marketing as the use of correspondence,
such as letters, catalogues, price lists, booklets, circulars, newsletters, cards, and
samples. With direct mail and direct marketing, we can inspire action, get a direct
reaction, and make sales since the audience is very selective, the message can be
tailored, the circulation can be capped at what is reasonable, and it can be utilized
to do all of these things. The drawbacks include the potential connection to junk
mail and the high cost of each exposure.
A message may be modified fast and simply, interaction is available, and the cost
is relatively low thanks to the Internet, including web pages and e-mail. The
visual display is constrained, an audience is not assured, and "hits" may not
always indicate interest are the drawbacks of the internet. Additionally, a sizable
portion of target audiences could not be online yet. Witt and Moutinho (1995)
claim that direct mail is one of the most effective forms of advertising for
businesses that cater to tourists, but it can be challenging to find the right mailing
lists for this purpose in the tourism sector. Previous visitors are the best sources
for mailing list information. The main goal of direct marketing is to increase the
cost-effectiveness of the utilization of marketing expenditures based on a
thorough understanding of clients and their behavior as well as direct
engagement with them (Middleton & Clarke, 2001).
Major direct marketing activities includes:
Email
This technique directly emails customers to persuade them to make a purchase;
the outcome can then be tracked and electronically measured.
Telephone
While typically unfavorable with customers, this method may nevertheless be
effective, which is why many businesses continue to use it. Telephone direct
marketing calls for meticulous planning and a lot of flexibility when speaking
with potential customers.
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Sales letters
Direct emails that aim to persuade the recipient to buy a certain item or service
without the use of a salesperson.
Infomercials
A type of dependent television ad that lasts longer than usual and typically
encourages viewers to get in touch with the business to buy their good or service.
2.2.5 Personal Selling
Personal selling is a process of communication, exchange, direct interaction, in
which the salesperson tries to convince his potential customers to buy the
company's products/services, or assist in providing information. information and
advice to create sympathy, build a good relationship, thereby creating sales
opportunities in the future.
Personal selling has a tendency to the following as compared to other marketing
channels, such as advertising:
Reduce resource use; cost is frequently negotiated.
Products are frequently rather complicated (e.g. financial services or new
cars)
The buyer and seller communicate after the sale to establish a long-term
connection.
Clients and prospects want particular data.
The acquisition typically entails significant financial outlays.
Of course, there are exceptions, but this is how most personal selling occurs. Five
steps make up the personal selling process, including:
Prospecting
Finding prospects, or possible new clients, is the main goal of prospecting.
Prospects should be "qualified," which refers to the process of determining if
they have the potential to become clients. If not, businesses risk wasting time.
Making first contact
This is the process a salesman goes through before meeting with a client, whether
in person or over the phone, by email, or in writing. A call will become more
concentrated with preparation.
The sales call
It is essential to be as enthused as possible about product or service. Customers
will not be enthusiastic if sales staff aren't. Instead of providing endless lists of
characteristics, concentrate on the actual advantages of the product or service in
relation to the unique requirements of clients.
Objection handling
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Salespeople deal with hurdles that customers place in their path through
objection handling. Some arguments could be too challenging to overcome, and
occasionally the customer might just grow to despise salespeople.
Closing the sale
This is a critical phase. Salespeople frequently quit without ever successfully
completing a transaction. Therefore, mastering closure techniques is essential.
2.2.6 Social media marketing
2.2.6.1 Definition
Evans and Bratton (2012) defined the basis of social media that relying on
personal empowerment and liberty as a result of the growth of the Internet and
the creation of social media. Consumers may actively engage in discussions
about everything on social media, from sports and technology to health and
tourism. In addition, they are outperforming marketers in their own field or word-
of-mouth marketing.
2.2.6.2 Role of social media marketing
Political strategies, national defense tactics, public policy, advertising, item
management, and even intra-organizational communication are now all becoming
increasingly interwoven with social media.
Social promotion is a natural component of promotion as the main goal of
advertising is to tell consumers about a company's products, who they are, and
what they provide.
Social media may be used to give consumers information about a
company's identity and the products or services they offer.
Social media may be helpful for connecting with people who would not
otherwise be aware of the products, services, or what the companies stand
for.
Customers perceive businesses as "real" owing to social media. If they
want people to follow them, they should communicate to them about their
character as well as the newest product information.
Social media may be used to connect people with coworkers who may be
working in the same sector.
Customers may connect and find the connections they seek through social
media.
2.2.6.3 Social media marketing channels
Facebook
Since its founding in 2004, Facebook has grown to become one of the most well-
known social networking platforms. Facebook had around 1.04 billion daily
active users worldwide in December 2015. Facebook's purpose, which is “to give
people the power to share and make the world more open and connected. People
use Facebook to stay connected with friends and family, to discover what’s going
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on in the world, and to share and express what matters to them.” (Newsroom,
2016). With so many people using Facebook every day throughout the world,
businesses have a lot of chances. Customers may easily learn about the business
and its products by visiting the company profile, which is simple to create and
doesn't cost any money. A user's newsfeed will automatically display the changes
if they have liked the corporate page. Facebook is perfect for establishing a brand
identity, notifying people of business hours, developing campaigns,
communicating with clients, gathering client feedback, exhibiting the company's
aesthetic attractiveness, and motivating clients to take action. (Facebook, 2016)
LinkedIn
Since its founding in 2003, LinkedIn has grown to become the largest
professional network in the world, with more than 400 million users across 200
nations. The main goal of LinkedIn is to connect professionals across the world
in order to assist businesses in expanding and succeeding. LinkedIn is a great tool
for businesses to increase brand recognition, find employees, and inform
potential consumers about their offers. What important is that the shared material
engage visitors, increasing the number of followers. It serves as a useful conduit
for developing client connections, particularly with business-to-business clients.
Since LinkedIn ought to be regarded as the most professional social networking
platform, posted information need to reflect that professionalism. Due to the
reputation of that particular social media platform, when a firm has a profile page
on LinkedIn, it may be seen as more trustworthy. (LinkedIn, 2016)
Twitter
Twitter (2016) reports that hundreds of millions of users send more than 500
million Tweets everyday, which are communications including text, images,
links, and videos. Users that are enthusiastic are eager to share information
instantly and learn about what is occurring across the world. However, engaging
with individuals and businesses on a global scale is what really interests people.
Because Twitter allows businesses to interact with people across the world and
reach a large audience, this has significant advantages for businesses.
There are several methods for businesses to benefit from Twitter. Every business
must be aware of what is going on in the world, therefore one of Twitter's key
benefits is the information it offers about certain groups, sectors, and customer
interests. Being active on Twitter helps a business build brand and consumer
recognition through consistent communication and promotion. Customers
frequently discuss certain products and services on Twitter, thus it is crucial for
businesses to engage with these users since doing so will help them create
networks of brand champions, influencers, and potential customers. Knowing
how to utilize hashtags for good is one of the important difficulties. A hashtag is
any word or phrase that starts with the # sign and is used to aggregate
conversations into certain subject categories. The use of popular hashtags will
probably increase the number of people who read your Tweets. (Twitter, 2016)
YouTube
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Launched in 2005, YouTube is a platform with one billion users. Additionally, it
can be used in 76 languages and is localized in 88 countries, which means that it
may be said to encompass 95% of the global Internet population. It is devoted to
finding, viewing, and sharing original video content. People and businesses may
connect, educate, and inspire others with YouTube. Additionally, it serves as an
effective distribution tool for unique videos produced by both big and small
sponsors. (YouTube, 2016)
YouTube (2016) claims that companies may create and operate their own
channels in the same manner as people. It is essential for businesses to begin by
introducing themselves and to be passionate about producing appealing material
that will attract members to the channel. Producing material that potential clients
would find fascinating and meaningful is the main goal.
Instagram
Instagram, which has more than 400 million active users, may be viewed as a
worldwide community. It is one of the biggest mobile ad platforms in the world
as a result. People are ready to receive visual inspiration, thus after being
introduced to clients on Instagram, enterprises may be seen differently. By
sharing stories with engaged audiences, generating action with their
advertisements, and exploiting the high-quality environment, businesses may
profit from Instagram. Instagram's major goal is to develop visual narratives
related to the business, the brand, and the provided goods. It is vital to remember
that one should constantly strive to achieve the predetermined objectives and stay
loyal to the brand. Businesses that are successful on Instagram have developed
recognizable brand photos that help people remember and recognize them.
Instagram relies heavily on hashtags, thus care must be made while using them.
(Instagram, 2016)
2.3 Step to do communications activities
Professor, Ph.D. Tran Minh Dao, developed a model of the marketing
communications process that consists of 5 phases and is presented in the
Principles of Marketing textbook (2002).
2.3.1 Determination of the receivers
Businesses must decide who will get their information before performing
marketing communications operations. The target consumers, including current
and future customers, who have an influence on the acquisition of enterprises, are
the receivers. Additionally, recipients might be people, organizations, or the
broader public. The choice of the appropriate receivers has a significant impact
on how firms choose to conduct communications.
2.3.2 Determination of the states relating to the purchase of the receiver
Once the receivers have been identified, it is time to ascertain the status of the
consumer purchase. What kind of replies do businesses anticipate from clients?
The ultimate aim of communication is to inspire the recipients to take a
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purchasing action. Businesses must ascertain the consumers' existing states, the
states that communications will transport them to, and the ways in which these
states impact the customers' purchasing decisions. Depending on these
conditions, the appropriate communications actions will be chosen. According to
Philip Kotler and Gary Armstrong (1991), communicators should be aware of six
distinct states relating to target consumers' purchasing decisions, including:
Awareness-about the product's existence
Knowledge - about aspects of the product
Opinion - in terms of liking or disliking the product
Preference - in terms of alternative products
Conviction-that the product will fulfill a need
Purchase
2.3.3 Selecting media means
In order to select the best communication channels, the communicators must base
their decisions on the recipients of information (target consumers) as well as the
language-related qualities of the medium. Communication channels may be
divided into two categories: direct communication channels and indirect
communication channels.
Although indirect communication is frequently more efficient, it is still the
primary strategy for promoting direct communication.
2.3.4 Select and design message
After determining the receivers' desires, communicators must create a powerful
message. Businesses create brands to communicate this idea.
2.4 Environmental analysis
2.4.1 External analysis
2.4.1.1 Macro-environment analysis of hospitality industry (PESTLE)
The hotel industry, often known as the leisure industry, includes a wide range of
service industries. It is crucial not just for the tourist sector but also for domestic
passengers. The hotel business has been around for a while. Every region of the
nation has hotels built in the new fashion. As a result, a large number of global
variables make up this field.
The hotel sector is without a doubt one of the greatest in the world, and there are
more luxury hotels than ever before. However, it also includes a number of
intricacies that call for a thorough examination.
The political, economic, socio-cultural, technological, legal, and environmental
variables that affect the global hotel sector are broken down in "PESTLE
Analysis of the Hotel Industry." In order to understand how the hotel sector is
performing in the present political and social climate, it is important to study
these elements.
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Political Factors
The hotel sector depends heavily on travel, which in turn depends on the laws of
the country. And as a result, the amount of revenue a government takes from the
hotel industry increases in direct proportion to how open it is to tourist laws. In
areas where there is political upheaval, the hotel industry suffers. But today, a
large portion of the earth is accessible to tourists.
The government is also introducing policies that benefit the hotel sector. The
growth of the hotel industry is aided by open borders and a cordial political
climate.
Economic Factors
Any significant economic shift has a significant impact on the hotel sector.
Luxury hotels make up a sizable portion of this sector. People's capacity to afford
luxury hotels is greatly impacted by recessions, tiredness, and other economic
effects. But at the same time, they also stimulate demand for low-cost lodging,
boosting some of the industry's vertical goods.
Another economic aspect that influences international guests' capacity to use
hotel services is foreign currency rates. The hotel sector is able to fly and employ
more people when the general global purchasing power increases. Developed
nations must focus on expanding their low-cost hotel sectors if they want to
attract more international travelers and expand their economies.
Social Factors
The present generation has demonstrated a tremendous interest in traveling.
Social media platforms that allow users to share their opinions and create peer
pressure to act further feed this. This has increased the opportunity for
expenditure to make sure that a wider range of individuals can use the hotel
business.
Hotels are now more often welcoming varied groups of guests and making sure
they are well-equipped to meet their needs. The majority of jurisdictions have
established via court decisions that such discrimination is not permitted. Many
hotels frequently provide discounts and other promotions to make sure that
guests may stay for longer and in greater comfort.
Technological Factors
In recent years, hotels have become increasingly technology-friendly. To offer
security and other amenities that make the visitor's stay more pleasant, nearly all
of them are equipped with CCTV cameras. Some of the most prevalent electrical
equipment that may be observed at every hotel are wifi systems, elevators,
intercoms, and others.
Online booking tools, either directly or through third-party applications, have
also contributed to an increase in hotel booking costs. The ability to reserve a
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spot online is also available to visitors from other countries. They may easily find
out all the crucial facts thanks to this as well.
Legal Factors
The development of the hotel sector depends greatly on the legal system of a
country. Today, almost all countries have conservative policies in place, which
has helped the travel and hospitality sectors. Tax concessions for the hotel sector
are already being offered by several politicians to help the sector's business. Both
hotels have commitments that they must uphold. This includes, among other
things, legislation governing cleanliness and safety. Before allowing a tourist to
utilize their services, hotels are becoming stricter about verification. This is
regarded as extreme given the rise in crime and terrorism throughout the world.
Environmental Factors
A country like Vietnam that experiences harsh weather has a difficult time
growing its hotel business. Due to guests' unwillingness to accept such
conditions, these hotels not only need to offer the amenities that might mitigate
such environmental consequences, but they also confront a lack of demand.
These influences have grown stronger in some areas as a result of the escalating
weather issue.
Politicians and environmental advocates alike are putting a lot of pressure on
hotels to reduce their carbon impact. This industry can lead to severe
environmental difficulties since it requires a large volume of waste products. As
a response to the climate catastrophe, several international hotel chains are
moving toward more biodegradable products.
This PESTLE hotel industry research should provide you with a comprehensive
analysis of the hotel business and how it functions on a worldwide scale. More
than ever, the hotel and leisure sector is seeing growth. For the reasons outlined
above, this tendency is anticipated to grow during the next ten years. Politics-
related problems, for example, represent a serious danger to its development.
2.4.1.2 The Porter’s Five Forces analysis
Typically, an industry may be defined as a collection of businesses that provide
goods and services to fulfill needs, functions, and uses. It may be broadly
described as a group of companies that produce goods and services and are near
substitutes for one another. A systematic series of actions designed to gain a
lasting competitive edge over rivals is referred to as a market strategy.
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Image 2.2 Porter’s Five Forces
(Source: Wallstreetmojo website)
Bargaining power of Suppliers
Porter (1980) emphasized that "Suppliers to an industry may be powerful if they
are more concentrated than their customers and their customers do not command
a significant share of their business because their customers do not represent a
potential long-term or major relationship", (for instance, irregular or bulk
purchasers vs sporadic or small customers). A consumer could be reluctant to
transfer suppliers if there could be one-time switching charges involved. If such a
change often entails a potential decline of the quality, image, or quality of the
retailer's product, this would have a negative impact on the customer's service.
"Suppliers have more bargaining power if their product is an important input in
the industry success. The supplier's input is crucial to the success of the
customer's product and service such as local tourist operators, thereby lowering
the customer's price sensitivity. There is a great demand for enhanced global
information and booking capabilities in the hospitality industry" (Kotler et al.,
1998, 761).
Though highly qualified employees, who are in high demand across the hotel
sector worldwide, are the only provider who can exert control over any
organization. Hotels experience minimal levels of indirect effects on their
competitiveness from this source and are not greatly impacted by the bargaining
strength of their suppliers compared to other industries. A hotel will need to
further differentiate itself within its own strategic group in order to preserve a
long-term cost advantage over possible rivals in higher strategic groups, such as
lodgings in the four- or even five-star levels.
Bargaining power of Customers
Porter (1980) mentioned that "the buyers of goods and services from an industry
may be powerful if they are more concentrated than the players in the industry
and are able to force down prices as well as reduce the industry's margin". They
will purchase in bulk from the market, which may either result in lower pricing
17
or higher costs as a result of increased demand for higher-quality goods and
services. Consumers can rapidly locate adequate alternative sources of supply if
there is no differentiation or price switching for the items and services they
purchase.
Due to the possibility of a sizable group of purchasers acquiring the supply
source, buyers might threaten backward integration. Price sensitivity rises if the
success of the buyer's item and service is not dependent on the industry's
feedback. Consumers have the chance to be powerful when purchases from the
industry account for a substantial amount of their total spending. Consumers may
gain low margins and be price sensitive if they do not pass on cost rises fast or
bear them because of low profit margins. This will occur to a number of inbound
tour operators or travel agencies in the majority of urban locations. Such
consumer segments have purchasing power because of their specialization or
large-scale hotel space sales. These groups will include significant corporations
like conference organizers, domestic and international airlines, and tour
providers. Purchasing hotel rooms is important for several leisure traveler
categories and for the majority of business traveler types. The purchasing power
of consumers in the market varies significantly depending on the targeted buyer
group of a hotel, but this element becomes particularly severe in situations of
oversupply or when hotel room purchasers are concentrated.
Threats of New Entrants
According to Michael Porter (1980), entrance barriers such as an economic scale
that involves the size and complexity of the operations necessary to achieve a
respectable cost structure are what make entry challenging for newcomers
Product differentiation (cost switching and customer loyalty made by
quality, reliability and brand image)
Capital requirements pertaining to the amount of money and financial
resources required to start and operate a firm.
Independent scale cost losses that go against the advantages already-
existed rivals own, such geography, patents, and expertise.
Access to distribution channels that have customer-accessible facilities;
government regulations like licensing, subsidies, or tax breaks.
Retaliation predicted from present rivals based on rivalry, a history of
fierce reprisal, and petting power.
The hotel industry is characterized by high fixed expenses overall and high
capital costs. The economic potential of the local hotel industry is enormous. Pre-
operational resources for design, furnishings, and equipment must be managed
from the beginning of the hotel project to ensure the most cost-effective use of
resources due to the high capital expenses.
Therefore, the hotel must seek to fill its rooms as efficiently as possible, both in
terms of the occupancy rate and the respective pricing charged. The two main
factors that enable hotels to distinguish themselves are a favorable location for
target consumers and reasonable service quality. The latter problem is based on
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the hotel industry, which is recognized globally for having high capital costs and
a high fixed cost to overall cost ratio. The economic potential of the local hotel
industry is enormous. From the beginning of the hotel project, strong capital
costs involve designing the most cost-effective use of resources for building,
furnishings, and equipment. The two main factors that enable hotels to
distinguish themselves are a favorable location for target consumers and
reasonable service quality.
Threats of Existing Subtitutes
Michael Porter (1980) indicated that "Current or prospective goods and services
that are capable of serving the same role can be replacement products. Substitute
goods, which are most much the result of technical advancement, can minimize
costs and/or offer higher quality results and better value". Due to technical
improvement, alternative items serve the same purpose, are less expensive, and
offer better service in addition to higher-quality performance (Porter, 1980).
Cheaper hotels might be replaced by hostels, motels, and staying with family in
the "lower" strategic groupings for tourist traffic. This market is extremely price-
sensitive whether it is low-income or cost-conscious.
It may also compete by offering a modern, pleasant, but reasonably priced hotel
in a well-known and handy location that tends to offer good value to budget-
conscious guests. The value of position to the target market is simple to
overestimate. The hotel operator may not be able to completely concentrate on
position to keep its market share in a climate of oversupply and ensuing intense
competition. Replacement products that are specific to the services and
operations of a hotel pose little risk.
If there is no oversupply for the hotel's target market, a hotel can only be exposed
to significant consumer demand if its marketing communications strategy
concentrates on luring tour groups. A hotel does not seem particularly vulnerable
to intense rivalry given the fragmented character of the business in its strategic
community and the projected growth rate of its target market. Strategic groupings
at the "higher" level (There is minimal potential for replacement items, for
instance, in establishments that cater primarily to business travelers or to those in
the upper middle and senior age groups). The hotel industry as a whole is neither
currently or soon to be seriously threatened by substitute products.
Competitive Rivalry
Porter (1980) asserted that the quantity and size of direct opponents determine
the intensity of the rivalry since numerous, equally matched competitors will
intensify it. This is because the sector's rate of development is outpacing the
intended demand increase. When switching costs and product difference are
minimal, the battle for market share becomes intense. Fixed cost competition is
become more intense, particularly in sectors with high maintenance expenses like
the hotel sector in the majority of major cities.
Except on weekends and during the holidays, there are significant demands for
price reductions to increase sales. There are capacity increases, and significant
19
capacity increases would upset the equilibrium between supply and demand and
fuel fierce competition. Businesses and industries may have different origins,
aims, and policies, as well as overlapping target clientele, despite poor or
detrimental feasibility and policies.
2.4.2 Internal analysis
When beginning communications, a company's internal strengths and limitations
should be properly considered, including the development plan, organizational
structure, management, finances, and human resource.
Development strategy: The communications plans would be directly
influenced by the desired outcome, position, and aim the organization
expects to attain.
Organizational structure: To perform communications operations
successfully, there must be effective connectivity between various firm
departments.
Management: The company's management have a big influence on the
choices that are made when putting communications efforts into action.
Finance: Operational expenses are associated with communications
operations. As a result, the development of these operations must be based
on the enterprise's financial resources.
Human resources: Without the proper investment in sales force and
competent people, a firm may find it difficult to promote sales and
communications efforts.
Brand: “Brand promotion is the combination between the efforts to
establish the communication channels and to encourage customers to sell
products, services; or ask for comments by shareholders" (David Aaker,.
Building strong brands). In the book Principles of Marketing, Philip
Kotler said that increasing brand awareness and brand loyalty are the main
goals of brand promotion. Therefore, having quality items at fair prices
and implementing efficient consumer communications are necessary for
brands to be developed successfully.
2.5 SWOT analysis
Organizations employ the SWOT Analysis approach for strategic management
and strategy formulation. It may be effectively utilized to construct business
strategy and strategic strategy. It is crucial to examine these ecosystems in terms
of strategic management techniques. This strategy of evaluating the business and
its surroundings is known as SWOT Analysis.
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Image 2.3 SWOT analysis
(Source: WallStreetMojo website)
Restaurants and hotels are included in the hospitality services sector. It is one of
the most prosperous companies in the world and makes enormous economic
contributions. This industry supports and employs hundreds of thousands of
people.
Without the hotels, the tourist sector would not have flourished. Nowadays,
travelers reserve hotel rooms online at various places based on their itineraries
and timetables.
When examining the commercial side of this multi-million dollar sector, to
succeed at this level, the hotel manager would require clear and strong business
strategy. There are several hotel chains that have locations all over the world.
The hotel's strengths, weaknesses, opportunities, and threats will be examined
together with the following areas in the SWOT analysis:
Strengths of the hospitality sector
o Safe & Cozy Environment Like Home
o Workplace Opportunities
o Large Profit
Weakness of the hospitality sector
o Expensive
o Costly Taxes
Opportunities for the hospitality sector
o Uniqueness
o Changing Prices
o Local and foreign tourists
o Booking online
Threats of the hospitality sector
The COVID-19 coronavirus epidemic has now prompted lockdowns around the
world. People can just stay at home and watch television. The public may only
21
purchase nutrient-rich goods from retail outlets. The hospitality industry, which
includes hotels and restaurants, has been the most severely impacted. People
weren't working and wasting their wages throughout this period. The first day
after the locked-down period ends, nothing will return to normal. Again, folks
must labor continuously throughout the year to save enough money for travel.
The hotel business thus had a downturn over the next two years before beginning
to rebound in 2022.
22
RECOMMENDATIONS
3.1 General strategy for improving communications activities in Meliá
Hanoi Hotel
To steadily enhance brand reputation in order to promote sales and maintain
Meliá Hanoi's position as the customer's first choice.
Professionalize communications efforts more and more to give customers the
impression that the hotel is connected and systematic.
Concentrate on communication strategies that may more successfully and
affordably reach clients.
Instead of focusing just on short-term particular objectives, communications
strategies are researched and implemented with a long-term perspective in order
to produce sustainable successes and grow a network of devoted clients.
3.2 Recommendation for improving marketing communications activities in
Meliá Hanoi Hotel
3.2.1 Marketing communication process
In order to speed up the marketing communication process, the hotel first
requires stricter control and assessment requirements.
Last but not least, the marketing and communication department has to
concentrate on the key products and services that customers frequently utilize
while conducting marketing communications. Not only are costs reduced, but
more effort can be put into these products and services to increase hotel sales.
3.2.2 Advertising activities
3.2.2.1 Enhancing advertisements on newspaper/ magazines
In order to convey the brand image and communications messaging, Meliá Hanoi
should increase the number of newspapers and magazines in which its
advertising are published, particularly certain well-known publications
concerning travel or lifestyle. Since customers are typically busier and less likely
to read thoroughly on the first day of the week, these adverts should be published
at the publication time during the middle or end of the week. In addition, Meliá
Hanoi should develop a little PR story to accompany each one-page
advertisement it now places in order to provide more memorable information.
“VnExpress”, “Đẹp Magazine”, “Harper's Bazaar”, etc. are a few suggested
newspapers and magazines.
3.2.2.2 Enhancing advertisements on the Internet
Internet is regarded as an efficient and affordable marketing communication
medium with the benefit of equating the temporal and spatial distance. Meliá
Hotels International Corporation is responsible for advertising on the Internet of
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all hotels belonging to the corporation's management. MHI owns a website
(melia.com) that can be utilized for advertising. Each hotel website of MHI has
different domain, Meliá Hanoi website is
melia.com/vi/hotels/vietnam/hanoi/melia-hanoi. To improve contact between
clients and the hotels, the website should also have a Q&A section.
MHI should use "searched word ads" in addition to placed banners on other
websites so that anytime clients look for information about the hotel market or
tourist sector, MHI and its services would show up at the top of every search
engine like Google Search,...
3.2.2.3 Enhancing advertisements on building electronics screens
Meliá Hanoi can book for advertisements on huge LED screens both in-side and
out-side commercial buildings such as Vincom Pham Ngoc Thach or Trang Tien
Plaza, etc. Additionlly, advertisements on LCD screens and Frame media in
office buildings, commercial buildings and apartments should also be expanded.
The ads’ content and layout should be attractive to gain attention but still follow
MHI’s theme. The logo and main color of Meliá Hanoi have to be stood out. The
message should be brief, clear, concise and succinct.
3.2.3 Public Relation
To maintain existing programs, Meliá Hanoi needs to further diversify its public
relations activities to achieve more success.
Marketing & Communications department needs to continue to carry out the
hotel PR work by focusing on building the hotel brand in a social - humanistic
and environmentally friendly direction. To accomplish this goal, the hotel should
mobilize “Meliá Hanoi Fund” from sales revenue, customers and employees. For
example, the hotel can ask guests to donate 1 USD / 1 room for the first night at
the hotel, each employee deducts the corresponding salary of 1 USD or more per
month and the hotel deducts about 0.1% of sales revenue. All proceeds will
spend on helping the poor and elderly, homeless children or sponsor poor
children to study, or can be transferred to social programs of large social
organizations namely UNICEF, etc. This plan needs to be implemented in the
long term so that the name and reputation of Meliá Hanoi in particular and MHI
in general are sustainable.
Since the establishment, Meliá Hanoi has only presented gratitude to customers
in the form of sending gifts on Tet holidays such as hamper for Tet, but has not
organized many customer gathering activities (Customer gratitude party) from
which to connect them to the hotel’s activities. Meliá Hanoi's customer
appreciation party should be held as a PR activity of Meliá Hanoi in which the
hotel will reveal more about business strategy to promote its brand and sales as
well. This is done with a purpose to introduce new sales promotion and to boost
the Meliá Hanoi Fund mentioned above. The hotel should take use of this
opportunity to publicize its brand and customer-focused approach.
24
3.2.4 Sales Promotion
Meliá Hanoi should create more attractive promotions and also conduct
marketing strategy to promote the promotions effectively like any other products
or services. Effective techniques to inform potential consumers about the hotel
sales promotion include in-store signage, websites, blogs, social media, email
marketing campaigns, text messaging, mobile applications, media releases,
brochures, and print and online advertising.
3.2.5 Direct Marketing
Public relations and sales promotion are combined with direct marketing. Email
advertisements should be sent to both current and potential clients. For this
action, Meliá Hanoi needs to create a database of clients. The client list will be
used as the source, and workers will be assigned to progressively maintain this
list.
Contacts with partners and clients should be made at their events, such as the
birthdays of the CEO or directors, celebrations at the place of business, and
national holidays. The Meliá Hanoi brand identity components must be properly
adhered to in the design of all papers, emails, etc.
Last but not least, Meliá Hanoi and the Marketing & Communications division
ought to summarize the results of these direct ads, assess client comments, and
derive lessons from past mistakes in order to develop stronger strategies
throughout time.
3.2.6 Personal Selling
Three fundamental competencies are required of salespeople:
Salespeople need to be adept at identifying the demands of the client.
They must be extremely knowledgeable about the products and services
that the retailer provides.
They must be able to persuade clients that the products and services
provided by their business can better meet their demands than those of
their rivals.
Therefore, Meliá Hanoi should create a program to help salespeople improve
these three fundamental selling abilities, including:
Choosing candidates who are qualified for certain sales roles.
Providing training and, if necessary, retraining.
Creating a suitable compensation strategy.
3.3 Conditions for recommendation
Positive outcomes need thorough coordination of all operations. However, there
are additional requirements for these activities' realization.
The Marketing & Communications Manager and the Director of Sales and
Marketing should think about spending money on the essential marketing
25
communications activities and have faith that the campaign will be successful.
These investments might not pay off right now, but they might in the long term.
Meliá Hanoi must set aside money from its commercial revenues in order to
adopt the aforementioned measures.
All Sales & Marketing employees, from senior management to lower levels,
should agree on the objectives and understanding of marketing communication
operations. Everyone has to be aware of both the overarching plan and their own
personal objectives and mission.
Need to recruit one to two more specialists in charge of marketing
communication activities for the hotel industry in the Marketing department.
With a long-term sales promotion vision, this person will clarify strategy and
steer marketing communications operations in the appropriate direction.
26
CONCLUSION
27
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