NATIONAL ECONOMICS UNIVERSITY BUSINESS SCHOOL MAJOR PROJECT MARKETING COMMUNICATIONS AT MELIÁ HANOI HOTEL OF S A S CTAMAD CO LTD Supervisor Assoc Prof , PhD Le Thi My Linh Student name Hoang Ha My Stu[.]
NATIONAL ECONOMICS UNIVERSITY BUSINESS SCHOOL MAJOR PROJECT MARKETING COMMUNICATIONS AT MELIÁ HANOI HOTEL OF S.A.S-CTAMAD CO LTD Supervisor: Assoc Prof., PhD Le Thi My Linh Student name: Hoang Ha My Student ID: 11193486 HANOI, 2022 h TABLE OF CONTENTS TABLE OF CONTENTS INTRODUCTION .3 1.1 Rationale 1.2 Research objectives 1.3 Research scope 1.4 Research structure THEORETICAL FRAMEWORK AND LITERATURE REVIEW .5 2.1 Marketing communications .5 2.2 Marketing communications tools 2.3 Step to 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 h 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.SCTAMAD CO LTD” as my graduate dissertation topic h 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 h 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 h 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 wellknown 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 h 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 salesforce 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 h 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 h 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 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 h 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 10 h 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 Politicsrelated 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 16 h 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 not command a significant share of their business because their customers 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 h 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 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 alreadyexisted 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 Preoperational 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 18 h 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 pricesensitive 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 budgetconscious 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 h 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 20 h