marketing in hospitality industry final report

LIST OF PICTURESImage 1 Logo of Lotte Hotel Saigon...9Image 2 Lotte Hotel Saigon'''' organizational chart...15Image 3 Logo of Hotel Nikko Saigon...20Image 4 Hotel Nikko Saigon'''' organization

VIETNAM GENERAL CONFEDERATION OF LABOUR

TON DUC THANG UNIVERSITY

FACULTY OF BUSINESS ADMINISTRATION

MARKETING IN HOSPITALITY INDUSTRY

6 Vu Phuong Nhi 719H10157.Dang Ngoc Thanh 720H03998 Phan Thi Anh Thu 719H1041

Hồ Chí Minh, ngày 29, tháng 4, năm 2023.

TON DUC THANG UNIVERSITYFACULTY OF BUSINESS ADMINISTRATION

7 Phan Thi Anh Thu 719H104

100%

LIST OF PICTURES

Image 1 Logo of Lotte Hotel Saigon 9

Image 2 Lotte Hotel Saigon' organizational chart 15

Image 3 Logo of Hotel Nikko Saigon 20

Image 4 Hotel Nikko Saigon' organizational chart 26

Image 5 Lotte Hotel Saigon reviews from customers 50

Image 6 Lotte Hotel Saigon reviews from customers 51

Image 7 Reviews of Hotel Nikko Saigon from customers 51

Image 8 Lotte Hotel Saigon own website 54

Image 9 Hotel Nikko Saigon own website 55

Image 10 Summer Getaway Deal 56

Image 11 Family Weekend Staycation 57

Image 12 Say yes package 57

Image 13 Lotte Hotel Saigon' Facebook 58

Image 14 One Harmony 59

Image 15 JAL's flight 60

Image 16 Hotel Nikko Saigon' Facebook 60

Image 17 Compare the level of customer interest in hotels 61

Image 18 Special package for family customer 69

Image 19 Brand perception map of hotel A and B 72

Image 20 Traveler ratings of Hotel Nikko Saigon 73

Image 21 Traveler ratings of Lotte Hotel Saigon 73

Image 22 Lotte Hotel Saigon' website 74

Image 23 Lotte Hotel Saigon' Facebook 75

Image 24 "Start -up press conference" Miss World Vietnam 2023 75

Image 26 Miss Charm 76

Image 27 Agoda.com 77

Image 28 Customers' feedback 77

Image 29 Review video on Tiktok 78

Image 30 Hotel Nikko Saigon' website 79

Image 31 Post on Facebook 80

Image 32 Hotel Nikko Saigon on Agoda.com 81

Image 33 Review of Phu Quoc trip 82

Image 34 Wedding space 84

Image 35 Compare the level of customer interest in hotels 85

Image 36 The Canvas Restaurant 87

Image 37 Crystal Jade Palce 87

Image 38 Yoshino Ho Chi Minh City 88

Image 39 OTTIMO HOUSE TRATTORIA 89

LIST OF TABLESTable 1 F&B and Facilities of hotels 52

Table 2 Price list of room types of hotels 62

Table 3 Compare buffet prices at restaurants 63

TABLE OF CONTENTS

1 GENERAL INTRODUCTION OF HOTEL A AND B 8

1.1 OVERVIEW OF LOTTE HOTEL SAIGON 9

1.2 OVERVIEW OF NIKKO HOTEL SAIGON 17

2 ANALYZE AND COMPARE THE MARKET OF HOTELS A& B 27

2.1 ANALYZE THE MARKET OF LOTTE HOTEL SAIGON 28

2.2 ANALYZE THE MARKET OF NIKKO HOTEL SAIGON 30

2.3 COMPARE THE MARKET OF HOTEL A & B 32

3 IDENTIFY THE TARGET MARKET AND TARGETCUSTOMER PERSONA OF HOTELS A & B 36

3.1 GENERAL OVERVIEW OF THE TARGET CUSTOMERMARKET 36

3.2 THE TARGET MARKET AND TARGET CUSTOMERPERSONA OF HOTELS LOTTE HOTEL SAIGON 36

3.3 THE TARGET MARKET AND TARGET CUSTOMERPERSONA OF HOTELS NIKKO HOTEL SAIGON 40

4 ANALYZE THE 4PS HOTEL MARKETING MIX OFHOTELS A & B 44

5.1 LOTTE HOTEL SAIGON 62

5.2 HOTEL NIKKO SAIGON 66

6 MARKETING CHANNELS OF HOTEL 71

6.1 MARKETING CHANNELS OF LOTTE HOTEL SAIGON 71

6.2 MARKETING CHANNELS OF HOTEL NIKKO SAIGON 76

7 SUGGESTIONS TO IMPROVE MARKETING STRATEGYTO SELL PRODUCTS (SERVICES) OF LOTTE HOTELSAIGON 79

7.1 SUGGESTION 1: PROPOSING THE MARKETING CAMPAIGN

FOR LOTTE HOTEL SAIGON 79

7.2 SUGGESTION 2 82

BIBLIOGRAPHY 93

The hospitality industry is one of the most potential industries, also the mostlucrative business After the peak of the Covid 19 epidemic, the hospitalityindustry is recovering and has a high growth rate according to the USTechnavio research, the hospitality industry in Vietnam is expected to grow by$ 2.12 billion from 2021 to 2026 Therefore, the industry has become more andmore competitive, many managers or hotel owners are trying to find out severalnew ways of ensuring success and retaining customers Marketing plays anessential role in the service industry by helping to acquire and retain customersas well as seize market share in a competitive environment (Das, 2008) Thechallenge of optimized marketing productivity is even more critical to touristhotels as their “products” suffer from intangibility, heterogeneity,inseparability, simultaneity, and perishability (Yu & Lee, 2009) Because ofthese problems, the hospitality industry faces the difficulty of synchronizingsupply with demand (Zeithaml, Parasuraman, & Berry, 1985)

In this report, we will compare the marketing of two hotels which have thesame position, location, market segmentation and target market Furthermore,we study the influence of the 4ps marketing strategies - product, price, place,promotion - and the pricing strategies on the efficiency of the hotel operations.The aim is to analyze the relationship between marketing and hotelperformance, also show how effective of the marketing strategies in hospitalityindustry Our report still has some limitations that could offer for future Thecustomer reviews for the two hotels are aggregated Other reports may studydifferent reviews of each purpose of customer such as leisure, business, couple,family Another limitation is we just based on 4Ps marketing strategies andpricing strategies For hospitality industry, satisfying the needs of customers iscrucial which indicates a hotel’s performance We also suggest that the futurereports could base on more marketing strategies such as 7Ps, WOM,Influencers… to research and give suggestions to the hospitality industry

1 GENERAL INTRODUCTION OF HOTEL A AND B

My team is employees of the Marketing department at a Lotte Hotel Saigonoperating in Vietnam The competitor of Lotte Hotel Saigon is Nikko HotelSaigon due to the same classification and rating Both hotels are rated as 5-starhotels, which means they offer a high level of luxury and comfort to theirguests The location of these hotels is also quite similar, as they are situated inthe prime area of Saigon, making them easily accessible to tourists andbusiness travelers

While the classification and rating of these hotels are the same, their targetmarket and branding are slightly different Lotte Hotel Saigon targets leisuretravelers and business travelers, providing facilities like a swimming pool, spaservices, meeting rooms and conference On the other hand, Nikko HotelSaigon primarily caters to business travelers, offering state-of-the-art meetingrooms, conference facilities, and other business-friendly amenities Lotte HotelSaigon attracts many Korean guests; besides, Nikko Hotel Saigon has manyJapanese guests.

Despite the differences in their target markets, both hotels offer exceptionalservice and amenities to their guests They have well-appointed rooms withmodern amenities like flat-screen TVs, air conditioning, and free Wi-Fi Therestaurants at both hotels serve delicious cuisine from around the world, andtheir bars offer a wide selection of drinks for guests to enjoy

In terms of competition, both hotels strive to offer the best possible experienceto their guests They constantly upgrade their facilities and services to stayahead of the competition, ensuring that guests keep coming back With theirhigh ratings, prime location, and top-notch amenities, Lotte Hotel Saigon andNikko Hotel Saigon are two of the most sought-after hotels in Saigon, cateringto the needs of a diverse range of guests

In conclusion, Nikko Hotel Saigon is Lotte Hotel Saigon's competitor, as theyshare the same classification and rating, and located in the same prime area ofSaigon While their target markets and branding may be slightly different, bothhotels offer exceptional service and amenities to their guests They areconstantly striving to stay ahead of the competition by upgrading their facilitiesand services, ensuring that guests have a memorable experience during theirstay.

1.1 OVERVIEW OF LOTTE HOTEL SAIGON

1.1.1 History of establishment and developmentLOTTE HOTELS & RESORTS

A division of the Lotte Corporation, Lotte Hotels & Resorts manages luxuryhotels and resorts around the world When Lotte purchased the Lotte HotelSeoul from the brother of Lotte Group founder Shin Kyuk-ho in 1973, the firmwas officially founded.

Image 1 Logo of Lotte Hotel Saigon

LOTTE HOTELS & RESORTS BRANDS:

Premium Landmark Hotel:

SIGNIEL establishes a brand-new level of luxury while serving as a premierlandmark hotel SIGNIEL is unlike any other hotel because of its magnificentdesign and opulent environment, which gives its visitors a delightfulexperience.

Higher Level of Service Paradigm:

SIGNIEL aspires to be a destination that guests would like to visit at least oncein their lifetime SIGNIEL cultivates an amazing experience in a beautifullyconstructed space against gorgeous landscape by enhancing every moment withsincere services With its sincere attitude, SIGNIEL offers visitors a memorythat will stay with them for a very long time.

Brand Features:SIGNIEL Tailored ServiceAuthentic Korean Experience

Relaxing Lounge for All In-house GuestsWorld-class Gourmet ExperienceLuxury SPA

LOTTE HOTELSClassic Upper Upscale:

At flagship hotels in well-known locations around the world, LOTTE HOTELSpledges to provide the highest level of service A relaxing stay is guaranteedwith substantial and dependable amenities and services.

The essential key to authentic connection:

Each LOTTE HOTELS is linked to the essence of the place They link visitorsto authentic experiences in the area, and there is a strong bond between theLOTTE brand and their loyal visitors.

Brand Features:

Fine dining establishments with delicious foodRecognition service in a truly authentic way

L7 HOTELS

Locally Inspired Lifestyle Hotel:

L7 HOTELS encapsulates the distinctive characteristics of places with bolddesign and liberates the thrill of traveling via imaginative settings brimmingwith cultural encounters and inspirations.

To Inspire and Delight:

Explore the creativity and originality offered by L7 HOTELS through a vibrantcollection of artworks Visitors can enjoy a leisurely idle or be inspired toventure with the help of the stylish interior and friendly service.

Brand Features:Sustainability

Inspiring Spaces: Interior and designArt Collection

Common AreaBAR Floating

conferences, weddings, andother special occasions.

conferences, weddings, andother special occasions.Sustainability Lotte Hotel Saigon is

committed to sustainabilityand has implementedvarious initiatives to reduceits environmental impact.The hotel has received aGreen Lotus Certificationand has implementedprograms for wastemanagement, energy-savingtechnologies, andsustainable food sourcing.The hotel also supports localcharities and communityprojects, demonstrating itscommitment to socialresponsibility.

Nikko Saigon Hotel iscommitted to sustainabilityand has implementedvarious initiatives to reduceits environmental impact.The hotel has received EarthCheck's Silver Certificationand has implemented waterand energy saving programs,

programs, and eliminatingsingle-use plastic items Thehotel also supports localcharities and communityprojects, demonstrating itscommitment to socialresponsibility.

The hotel offers a variety ofdining options, includingItalian and Vietnamesecuisine, as well asinternational options Guestscan enjoy fine diningexperiences or casual mealsat the hotel's restaurants andcafes.

The hotel offers a variety ofdining options, includingChinese, Japanese, andVietnamese cuisine, as wellas international options.Guests can enjoy a finedining experience at thehotel's restaurants and cafes.

=> Lotte Hotel Saigon is its combination of convenient location, luxuriousfacilities, diverse dining options, and established brand recognition, providingguests with a high-end experience in the heart of Ho Chi Minh City.

=> Nikko Hotel Saigon is its blend of traditional Japanese hospitality, modernluxury amenities, tranquil location, and commitment to sustainability,providing guests with a peaceful and unforgettable experience.

3 IDENTIFY THE TARGET MARKET AND TARGETCUSTOMER PERSONA OF HOTELS A & B.

3.1 GENERAL OVERVIEW OF THE TARGET CUSTOMERMARKET

Hotel guests are consumers of hotel products who are not limited by thepurpose, the time and space of consumption And customers are the mostimportant market segment of the hotel.

For each hotel, the target customer market is the object the hotel needs totarget There are many criteria to segment target customers such as: age,gender, occupation, hobbies, travel motivation, education level, religion Each market segment has different needs and requirements for service qualityin the hotel when staying Research on target customers shows:

+ The higher the level of education, the more likely to travel.

+ People's living standards increase, the demand for travel also increases.This has created a big change in the ratio between basic services and additionalservices Thereby, it shows that the more experience people have, the morestringent the requirements for product quality and service quality are.3.2 THE TARGET MARKET AND TARGET CUSTOMER

PERSONA OF HOTELS LOTTE HOTEL SAIGON

The target market of hotels Lotte Hotel Saigon

Based on available information, Lotte Saigon hotel's target market can bedescribed in the following ways:

Lotte Saigon hotel's primary target market includes domestic customers fromdifferent regions of Vietnam, as well as international customers from variouscountries worldwide

Most international customers are from countries like Korea, Japan, andChina etc The common feature of this international tourist market isthat the demand for accommodation services is quite high Since mostof them are businessmen, traders, or tourists with significant incomesand purchasing power, quality is very important.

Domestic customers to the hotel come from the nation's regions andcities, including Hanoi, Da Nang, Nha Trang etc Mainly businesstravelers and individuals with high incomes They demand lodgingservices so they may rest after visiting, fulfilling, or working with high-quality standards.

Age: Lotte Saigon hotel targets a diverse range of customers, butpreeminent age over 30 due to their social rank and strong financialposition

Gender: According to recent statistics, in 2021, over 466 thousand ofdeparting South Korean tourists were male Approximately 337.2thousand were female The percentage of female Korean touriststraveling abroad is lower than males Lotte Hotel Saigon has customersmainly from Korea and accounts for the majority of the hotel'scustomers Therefore, it is expected that Lotte Hotel Saigon has a highernumber of male guests than female guests.

Income: The Lotte Hotel Saigon is geared towards customers with highand middle income, from $4,256 and up The average budget ofKoreans traveling abroad is 1 – 2 million Won (roughly $1,000 – 2,000per person).

Qualification: It is worth noting that South Korea has a high educationattainment rate, with over 70% of the population having completedsome form of tertiary education This means that it is likely that asignificant portion of Korean tourists traveling abroad have universityor college degrees Lotte Hotel Saigon has many Korean guests, somost of its guests have university or college degrees Additionally,many guests come to the hotel for educational purposes, such asattending conferences or workshops.

Purpose: According to a survey in 2016, the main purpose of travelingabroad for Koreans is leisure time / vacation and business / professionalactivity The most popular activities are enjoying the natural landscapewith 69.9%, relaxation / recreation with 69.2% and gourmet tours with54.6%.

Benefits Sought:

o Leisure travelers: the hotel location is close to the city's attractions,there are 6 restaurants and bars with different styles such as Chinese,Japanese, Italian and other modern amenities.

o Business travelers: organize meetings, conferences, seminars, .because the hotel has 4 modern conference rooms of high quality andinternational standards with diverse areas In addition, the hotel alsoprovides office services for guests who need to use a PC to check theirpersonal schedule, in addition, there are other services such as faxmachines, printers, or e mails

The target customer persona of hotels Lotte Hotel SaigonName: Lee Sang Woo and Kim So Yeon

Sang Woo and So Yeon are a married couple in their mid-40s Sang Woo worksas a marketing manager at a tech company So Yeon is an Investment Banker ina state-owned bank The couple has a teenage child Sang Woo and So Yeonenjoy taking family vacations once a year to bond and create lasting memorieswith their child

Demographic:Age: Mid-40s

Gender: Male and FemaleLocation: Seoul, South Korea

Income: High Household Income, the total income of both is about 12,5 millionKRW (approximately 9.395,88 USD)

Education: Both have university degreePsychographic:

Personality: Family-oriented, adventurous, and social

Interests/Hobbies: Travel, outdoor activities, family activities, trying newrestaurants

Values: Family, experiencing new things, creating lasting memoriesBehavior:

Takes one vacation per year with their family.