Published by MBA Skool Team, Last Updated: January 24, 2019
Marketing Strategy of Shangri-La Hotels analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Shangri-La Hotels marketing mix, help the brand succeed in the market.
Shangri-La Hotels marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Shangri-La Hotels Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Shangri-La Hotels marketing strategy can be explained as follows:
Shangri-La Hotels is one of the world’s leading hotel chains. Shangri-La Hotels has targeted upper class of society and thus falls in the premium segment. It has 5 brands under it which are:
1) Shangri-La Hotels
2) Shangri-La Resorts
3) Traders Hotels
4) Kerry Hotels
5) Hotel Je
It also has 2 clubs as well under its ambit:
1) Aberdeen Marina Club
2) Xili Golf and Country Club
It has positioned itself as a good of ostentation and each of the hotels and resorts have been ranked 5 star. It is a luxurious hotel chain which apart from providing basic high quality services ranging from spacious rooms, stylish décor, high-speed Wifi, walk-in-wardrobe to convenience facilities like parking facilities, 24*7 services, online booking facility and customer service, etc. The rooms are of 5 types depending upon the needs of the customers. In addition to that, it provides augmented services in its marketing mix product portfolio as well which eases the process of locating the service providers and save time and energy. Such services by Shangri-La Hotels include beauty salon, clinic, shoe-shine facility, valet laundry service, sport and leisure, special facility for physically challenged people, a babysitting and child care centre, gift shops, foreign exchange counter, florist, restaurants, bars, etc.
Shangri-La Hotels Price/Pricing Strategy:
Below is the pricing strategy in Shangri-La Hotels marketing strategy:
Shangri-La Hotels majorly adopts premium pricing strategy because of the customer segment it caters and the kind and quality of services it provides.
But a little variation can be seen in the price charged for say different types of rooms. Also any extra service which you avail is charged separately. There is provision of discounts and allowances as well in the off peak seasons to increase sales. In order to remain competitive, Shangri-La Hotels and resorts to competitive pricing strategy as well.
Shangri-La Hotels Place & Distribution Strategy:
Following is the distribution strategy in the Shangri-La Hotels marketing mix:
Shangri-La Hotels hotels are based out of Hong Kong and have their properties spread all over the world. The company has its presence in continents like Asia, Europe, Africa, America as well as Australia.
There are close 100 Shangri-La Hotels and resorts having more than 30,000 luxury rooms and services.
The promotional and advertising strategy in the Shangri-La Hotels marketing strategy is as follows:
Shangri-La has adopted several marketing strategies to increase its brand visibility. It has always emphasised the intent of providing hospitality willingly, from the bottom of their heart which is profoundly incorporated in their mission and culture of the organisation. Shangri-La Hotels has used mass media like TV, newspaper, magazines, hoardings etc. to reach out to a larger chunk of audience . It has adopted online promotion strategy as well through its own website and other social websites. Positive word of mouth has always acted as an invisible hand for Shangri-La. It has also received certain awards as well from internationally recognised organisations like Best Hotel Chain in the Asia Pacific, World’s Best Hotel Groups, etc. and AAA rating for its impeccable rating.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Shangri-La Hotels.
Employees and customers constitute stakeholders of Shangri-La Hotels. Target customers are upper class and those who have higher financial ability who come as tourists or businessman. They do not mind spending little higher but do not want to compromise with comfort level or status. As far as Shangri-La Hotel employees are concerned, they are trained and moulded in the way organisation requires them. It enables its employees to achieve not only professional but personal goals as well through learning and development. They are paid well and in turn offer immaculate services.
Shangri-La believes in fast processes be it check-in be it addressing complaints be it providing room service be it anything. It believes that customer’s time is precious and in this fast moving world where people are always running short on time, need to reach their respective places quickly any hassle or block in the service delivery process will lead to dissatisfaction of customers which is against the policy and values of the organisation.
Shangri-La hotels, their properties, decor etc are their biggest physical evidence. It refers to tangibles in intangible delivery. Brochure is the mot common physical evidence. In addition to this, business cards of managers, invoice of payment, interior of the hotel which includes outdoor swimming pool, salon, clinics, etc. All these things are consistent within the hotel chain but is heterogenous when it comes to comparing it with its competitors. Hence this concludes the marketing mix of Shangri-La Hotels.
About Shangri-La Hotels:
Shangri-La Hotels and Resorts is a Hong Kong based trading entity of Shangri-La International Hotel Management Limited. It was founded in 1971 by Robert Kuok as a deluxe hotel in Singapore. It is associated with hospitality industry.
The name Shangri-La was inspired by the mystical place Shangri-La in James Hilton’s novel, Lost Horizon which was published in 1933. This place, as is mentioned in the novel, was believed to cast a spell on its customers and encapsulated serenity for which it is widely known today.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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