Improving Existing Loyalty Programme in H10 ... / ID: 735503

Author: Agate Ose (11)

Evaluation:

Published: 03.01.2014.

Language: English

Level: College/University

Literature: 31 units

References: Used

Time period viewed: 2011 - 2015 years

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Table of contents

Nr.	Chapter	Page.
	Abstract summary	1
1.	Introduction	1
2.	Problem statement	2
3.	Delimitation	3
4.	Methodology	4
4.1.	Data collection	4
4.1.1.	Primary research	4
4.1.2.	Secondary research	4
4.2.	Internal analysis	5
4.2.1.	Value chain analysis	5
4.2.2.	Organisational structure	6
4.3.	External analysis	6
4.3.1.	PEST analysis	6
4.3.2.	Porter’s Five Forces	7
4.3.3.	Competitor mapping	8
4.4.	SWOT analysis	8
4.5.	Customer Behaviour Analysis	8
4.6.	STP model	9
4.7.	The Seven P’s	10
5.	Description of H10 Hotels and Club H10	11
6.	Internal analysis	13
6.1.	Value chain analysis	13
6.1.1.	Sales and marketing	13
6.1.2.	Service	14
6.1.3.	HR management	17
6.1.4.	Conclusion	17
6.2.	Organisation structure	18
6.3.	Club H10 analysis	19
7.	External analysis	22
7.1.	PEST analysis	22
7.1.1.	Political and legal factors	22
7.1.2.	Economic factors	25
7.2.	Porter’s five forces – industry analysis	29
7.2.1.	Internal rivalry and competitors	29
7.2.2.	Threat of substitutes	31
7.2.3.	Buyer power	32
7.2.4.	Threat of new entrants and Entry barriers	33
7.3.	Competitor mapping	34
8.	Primary Research	35
8.1.	Qualitative research	36
8.1.1.	Interview setting	36
8.1.2.	Recruitments	36
8.1.3.	Moderator	36
8.1.4.	Moderator guide	36
8.1.5.	Answers	37
8.1.6.	Conclusion	39
8.1.7.	Bias problems	40
9.	Secondary research	41
9.1.	Tripadvisor.com	41
9.2.	Booking.com	44
9.3.	Conclusion	46
10.	SWOT	48
10.1.	Core competences	48
10.2.	Competitive advantage	49
11.	Marketing plan	50
11.1.	Customer behaviour analysis	50
11.1.1.	Identifying a need	50
11.1.2.	Establishing desires and preferences	50
11.1.3.	Information search	53
11.1.4.	Evaluation of possibilities	53
11.1.5.	Post-purchase evaluation	54
11.2.	STP model	54
11.2.1.	Segmenting	54
11.2.2.	Targeting	55
11.2.3.	Positioning	56
11.3.	The Seven P’s	57
11.3.1.	Product	57
11.3.2.	Price	58
11.3.3.	Place	58
11.3.4.	Promotion	58
11.3.5.	People	59
11.3.6.	Process	59
11.3.7.	Physical evidence	60
11.4.	Budgeting	60
11.5.	Monitoring	62
11.6.	Future scenarios	62
11.7.	H10 Costa Adeje Palace ****	63
12.	Conclusion	65
13.	Bibliography	67
13.1.	Books	67
13.2.	Internet resources	67
14.	Appendices	71

Extract

12. Conclusion
In order to answer the main problem proposal, answers to sub questions must be given first.
During the analysis it was determined that on average 1/3 of the total customers in H10 Costa Adeje Palace **** are already members of the loyalty programme. The data used to reach such statement were obtained from the hotel.
Despite this fact many members as well as regular clients were expressing their dissatisfaction with the hotel. The main reason for this was the dichotomy between the promoted and the received service in this particular hotel. The area that was criticised the most was the catering service in restaurants. Therefore extra efforts will be put into resolving this problem to avoid unwanted criticism.
Through qualitative research it was determined that the members would appreciate larger loyalty programme benefits. In their opinion there should be special offers available only for loyalty members as well as discounts for hotel services, for example SPA. Other clients suggested improving the user interface on hotel’s website as well as increasing the customer awareness of the loyalty programme existence.
In order to improve the customer tracking system and ease the work for reception and guest service employees a new computer system must be integrated. A network that would connect all H10 chain hotels throughout Europe would increase the response time to clients who need help. Moreover, it would make the hotels more adaptive to the changing environment as the information could be processed much faster.
To answer the main problem statement a marketing plan was created introducing new ideas that would increase customer perceived value to the whole membership programme and H10 Costa Adeje Palace ****. Since the main marketing decisions are made in Barcelona – the headquarters of the H10 group, the plan was created to bring benefits to all members, not only the ones who are visiting specific hotel.
The new marketing plan is proposing to make some considerable changes in the current membership programme. The new variations will increase the customer perceived value and are designed to attract more new members to the programme. One of the most challenging tasks will be to create the new partner network that will also award members with points with each purchase made with the “H10 friends”. This task includes high marketing costs, but is the most promising one in attracting customers in long term.…

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