Published by MBA Skool Team, Last Updated: February 06, 2019
Marketing Strategy of Radisson 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 Radisson Hotels marketing mix, help the brand succeed in the market.
Radisson Hotels marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Radisson Hotels Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Radisson Hotels marketing strategy can be explained as follows:
Radisson Hotels is one of the leading hotel chains in the world. Radisson Hotels is a branded House which has 7 brands operating under it. They are as follows:
- Radisson Collection
- Radisson Blu
- Radisson Red
- Park Plaza
- Park Inn
- Country Inn & Suites
The hotel rooms have full facility ranging from air-conditioners, attached bathroom to refrigerator, bathrobes, slippers, etc. What makes the service different is the other amenities like wake-up facility, spa, sauna, doctor-on-demand, Jacuzzi, hair salon, etc. It also has to suit individual needs several dining options where different types of cuisines are served. All the services are a part of its marketing mix product portfolio. Although its primary target customer segment is the high profile clients, it sub-categorises its customers and caters to their specific needs. Say, Radisson Red is targeted at young travellers, Park Inn at a midscale group of hotels. Differentiated by location-in a primary city versus a secondary market-Radisson Blu is a luxury line targeted at upper upscale segment, Radisson Green at upscale segment respectively. Needless to say, it faces tough competition from Hilton, Ritz, Starwood Hotels, Four Seasons, Marriott etc.
Radisson Hotels Price/Pricing Strategy:
Below is the pricing strategy in Radisson Hotels marketing strategy:
Radisson primarily has adopted a premium pricing strategy as it is aware that its guests- business travellers, honeymooners, leisure travellers, etc.- will not mind shedding additional bucks for such good of ostentation and maintaining their status and quality.
But again there is a POD(point of differentiation) here. Radisson Hotels have high and mid premium pricing strategy to serve the respective customer segment. In addition to this, it has implemented promotional pricing strategy by offering a few incentives to its loyal and regular customers.
Following is the distribution strategy in the Radisson Hotels marketing mix:
Radisson Hotels are present in 70+ countries at over 900 locations with headquarter being at Minnetonka in the United States. Radisson Blu operates at 150+ places in Asia, Europe and Africa, Park Inn at 120+ locations.
What is worth noting here is that it decides the location of each of its hotels under each of its brands strategically by say being closer to airports and at posh and urban localities.
Radisson Hotels Promotion & Advertising Strategy:
The promotional and advertising strategy in the Radisson Hotels marketing strategy is as follows:
Radisson Hotels uses a combination of several marketing strategies to promote its product.. Yes I Can! is a training program focused on guest satisfaction. It is a type of Internal Marketing Strategy (or Relationship Marketing) wherein the hotel’s front-line service employees are trained on how they can serve their customers to the best of their abilities. It aims to achieve 100% Guest Satisfaction and is so confident that it allows its customers ‘No Payment’ option if the service can’t be made right. Not only this, it also believes in individual attention and relating with its customers on personal level. In line with this strategy is its word of mouth promotion strategy. Radisson believes that if its guests are satisfied and happy, they will spread positive word of mouth and will, in indirect way, act as agents of the company promoting it. Needless to mention, it also offers to its regular patrons coupons for upgradation to reward their loyalty. Lat but not the least is the tie-ups it has with numerous travel agents and offers incentives to increase its customer base. In this manner it attracts, retains and increases the count of its regular and loyal and potential patrons.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Radisson Hotels.
Radisson is a premium hotel chain and hence focuses on people experience. In a service industry the employees play a vital role in the success of the business. They are the face of the organisation. The touch points, highs and lows determine the extent to which the organisation is able to achieve its goal. Through Yes I Can!, it not only trains its employees to enhance the delivery of service but also inculcates in them sense of ownership. Its customers also interact with the agents which have tie-up with the brand interact with the guests on personal level and thus play an important role in adding to the brand value of the company.
The buying exposure of those visiting the hotel starts right from the point when a room is booked. As everything is getting digitalised at a great pace, so is the booking system at Radisson Hotels. The target segment, which comprises of upper segment of people, now prefer to make bookings online or via agent and the offline booking is somewhere going behind the scene. Radisson Hotels has a dedicated team of digital specialists which creates innovative channel campaign and shares relevant news. Then comes the actual utilisation of the service, i.e., check in at the hotel. The valet parking facility is available at the entry. Then comes the reception counter where the entry is made, then going to the room, living for the certain period and then check out. This is well managed by the front-line employees and by those who have tie-ups with the brand. It is made sure that customers are satisfied fully through its services.
As the Radisson brand falls in the premium category and is perceived as conferring high status to its customers, it accordingly has the infrastructure at all its service offering centres. From the point of entry to the point of exit, it has well furnished rooms, technologically advanced equipment, premium range of products, clean and fresh environment and ambience in accordance with the needs and purpose of booking. Say, for a Board Room Meeting, the set up is different and for a Birthday Party, the setup is different. Hence this completes the marketing mix of Radisson Hotels.
About Radisson Hotels:
A subsidiary of its parent company Carlson Rezidor Hotel Group, Radisson Hotels is an international hotel company of American origins. It has its association with Tourism and Hospitality industry and core business being dealing with resorts and hotels. It has 7 brands operating under it. Found in 1909, it has its presence in more than 70 countries.
Its tagline is “Hotels That Love to Say Yes!” (to all) which is in line with its vision of being one of the top three hotel companies in the world and of course for its guests, owners and investors. It sees its offering as a power to create between people and communities meaningful connections and mutual understanding.
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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