Market Shares

1. IMPROVING MARKET SHARES
ON HOTEL ROOMS
There are three types of companies – –
* Those who make things happen.
* Those who watch things happen.
* Those who wonder what happened!
(Anonymous)

2. Competitive Strategy –
Michael E Porter
 The Organization – Environment Fit
Operating within the current environment,
and adapting to change
* High entry barriers * Weak competitors
* Weak customers * Weak substitutes * Weak suppliers
 Company Effectiveness in a Changing Environment
* Overall Cost Leadership * Differentiation
* Focus on Niche Markets

3. Strategic Planning
Looking beyond the present situation and developing
long-term strategies to meet changing industry
conditions. Determining what makes most sense in the
light of your market position, opportunities & resources
* Cost Reduction * Innovation
* Diversification * Nichemanship

4. Consumer Markets
& Buying Behaviour
There is an old saying in Spain :
To be a bullfighter, you must first learn to be a bull.
(Anonymous)
Understand the needs, wants and buying behaviour
of your target market

5. Target Marketing
Helps sellers identify marketing opportunities better,
and then focus their marketing mix so as to reach the
target market
more effectively and more efficiently
 Market Segmentation
Divide the market into distinct groups of buyers

6. Target Marketing
 Model of Consumer Behaviour
~ Consumer: Who is the consumer
~ Brand : What is the product s/he buys
~ Occasion : When does s/he buy
~ Distribution : Where does s/he buy
~ Benefit : Why does s/he buy

7. Target Marketing
 Market Targeting
Select which market(s) to enter
Normally, segments of the market that could provide
80% of total revenues

8. Target Marketing
 Product Positioning
Competitive positioning and detailed marketing mix
Branding & positioning of your product(s) in the
prospect’s mind
Creating Consumers through ~
~ better understanding of consumer needs & wants
~ value-addition through better products & services
~ providing greater value than the others

9. Marketing Mix Focus on
Target Market
“Location, location, location” is not everything!
Market shares are governed by :
 Product
* Quality * Features * Brand Name * Size * Services
 Price
* Rack Rates * Discounted Rates * Credit Terms

10. Marketing Mix Focus on
Target Market
“Location, location, location” is not everything!
Market shares are governed by :
 Promotions
* Advertising * Personal Selling
* Sales Promotions * Publicity
 Place
* Distribution Channels * Coverage * Location

11. Develop A Marketing Strategy
 Define your target market, target segments, and
target consumer
 Understand consumer needs
 Based on consumer perceptions & needs,
define the key benefits of your products
 Support your products & services with
communication & promotion plans
 Develop a strong sales programme

12. Everybody Sells !
Remove Departmental Blinkers
 Update all on Product Knowledge
 Empower your people to sell
Encourage them to upsell at all times
* Push a higher category of room
* Push additional F&B items

13. MARKETIMG STRATEGIES FOR
INCREASING MARKET SHARES
Price Discount Strategy
Offer comparable products at a lower price
 Cheaper Goods Strategy
Offer a product of lower quality, but at a substantially
lower price
 Prestige Goods Strategy
Offer a product of much higher quality, at a
substantially higher price

14. MARKETIMG STRATEGIES FOR
INCREASING MARKET SHARES
Product Proliferation
Product Innovation
Improved Services
Distribution Innovations
Offer new channels of distribution
Intensive Advertising Promotion

15. Market Leader Strategies
Expand the Total Market
* New Users * New Uses * More Usage
 Protect Market Share
* Continuous Innovation
* Defensive Marketing Warfare

16. Market Challenger Strategies
Define Strategic Objective and Strategic Opponent(s)
* Attack Market leader
* Attack Other Challengers
* Attack Smaller Operators
 Build Market Share
* Offensive Marketing Warfare

17. Market Follower Strategies
Follow on the bandwagon of the market leader,
without being perceived as a threat

18. Market Nicher Strategies
Enter small but highly profitable market segments,
not normally covered by the market leader and main
challengers – specialized niche markets

19. Improving Market Shares
In Hotels
Hotel Chains v/s Management Companies
v/s Independent Operators
Individuality ~ Costs ~ Market Reach
Market Shares & ARR Yield Management

20. Improving Market Shares
In Hotels
Value Add Ons
Selling just a hotel room is no longer enough
Tie-Ups & Promotions
* Airlines * Cellphone Companies * Bank Credit Cards
* One-Time Offers * Fixed Time Period Offers
* Ongoing Offers
-- Visibility -- Reach -- Volumes