Improving Existing Loyalty Programme in H10 Hotel Chain
|4.2.1.||Value chain analysis||5|
|4.3.2.||Porter’s Five Forces||7|
|4.5.||Customer Behaviour Analysis||8|
|4.7.||The Seven P’s||10|
|5.||Description of H10 Hotels and Club H10||11|
|6.1.||Value chain analysis||13|
|6.1.1.||Sales and marketing||13|
|6.3.||Club H10 analysis||19|
|7.1.1.||Political and legal factors||22|
|7.2.||Porter’s five forces – industry analysis||29|
|7.2.1.||Internal rivalry and competitors||29|
|7.2.2.||Threat of substitutes||31|
|7.2.4.||Threat of new entrants and Entry barriers||33|
|11.1.||Customer behaviour analysis||50|
|11.1.1.||Identifying a need||50|
|11.1.2.||Establishing desires and preferences||50|
|11.1.4.||Evaluation of possibilities||53|
|11.3.||The Seven P’s||57|
|11.7.||H10 Costa Adeje Palace ****||63|
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.…