Pricing Strategy
Identification of a price for the products is considered to be one of the important issues, especially in ensuring the maximizing of the profit of the organization. However, the pricing must also guarantee that the company does not overprice its products; hence, giving its business the competitive status. One of the most effective pricing strategies is the cost combined with pricing strategy where the price is determined by the cost that the organization incurs in providing the core product or service. In fact, the most important feature of this strategy is that it demonstrates that the organization does not set price below the cost incurred in providing the good or service.
Based on the cost and pricing strategy, the price set for the rooms at Hampton Inn Hotel should be approximately $180 for the full service. However, considering the fact that there are different suits for different customers interests include the $240 package and the $300 package for the travelers, golf club members, and business class services. Other additional foods and services beyond the standard provisions will be given at a 70% mark up on the direct costs of providing the products and services. Therefore, this includes all custom menus provided by the hotel as well as additional services such as laundry that usually is not included in the standard service package.
The pricing strategy ensures that the hotel provides patrons with competitive prices in the industry with up to 40% discounts compared to the $500 pricing being offered by the current players in the industry. Secondly, the proper pricing indicates that the hotel attracts patrons from different economic classes which demonstrate that there is a product available for everyone. The pricing will, therefore, ensure that it attracts patrons to fill the currently available capacity. Although the prices are considerably lower as compared to other prices offered in the region, the hotel guarantees that the products and services presented are of the highest quality.
Promotion Mix
Promotion of the products offered by the hotel and the brand is considered to be among the major strategies for the organization. For instance, the Hampton brand under Hilton seeks to ride on the success of the Hilton hotels considering that it will be a franchise under the Hilton. Consequently, one of the key elements of the promotion mix will be the association of the hotel with the Hilton hotels which operate globally and possess general recognition. Notably, the Hilton brand is a globally trusted and by franchising, the Hampton Inn will be able to attract more customers with the experience of the Hilton in other parts of the United States and the world.
The second major promotion approach includes the use of the hotels website. Being the modern hotel, the Hampton Inn by Hilton has a fully developed website. Specifically, the website has fully integrated e-commerce capabilities which allow it to present the products and services of the organization on the market. The customers can book rooms through the website, and, at the same time, the website allows the customers to book services in other Hilton Hotels across the globe. Moreover, these services also give the opportunity to other hotels working under the Hilton brand from other parts of the world to book into the Hampton Inn. Apparently, the advantage of this is that the client can easily transfer the booking from one Hilton branded hotel to the Hampton Inn. Secondly, this promotion strategy allows the travelers to move easily around the world and book their hotels with much ease.
To continue, the other strategy that may be applied is through the use of the social media. In fact, the social media marketing strategies have become an important element of current marketing strategies. Being efficient strategy in marketing, the use of social media has totally revolutionized the way of conducting marketing. In the modern world, the use of such social media networks as Facebook and Twitter as well as Instagram may determine either the success or failure of a business since it is based on the understanding that the hotel maintains functional social media platforms mostly including Facebook and Twitter. The organization also runs a blog through which it publishes articles and other media to reach the potential customers.
The other channels in the marketing and the promotion include advertisements though the mass media. Such type of marketing focus on the prospective customers within the geographical location of the Hampton Hotel. With the help of advertisements the hotel offers the customers coupons that are redeemable within specified time and the objective of using such strategies is to inform the masses about the newly opened Hampton hotels. On the other hand, the coupons offered to the prospective clients, are used to attract customers to the hotel and in the process endear the hotel to the customers. In fact, this ensures that a sustainable business model is created by attracting the customers to the business for long-term relations.
The last element of the promotion mix includes the use of billboards along the major termini in the region including the airport and the major roads leading to the hotel. The billboards will contain information about services offered by the hotel. Additionally, the hotel will seek the endorsement of renowned celebrities in the region to be brand ambassadors of the Hampton hotel. Apparently, the association with renowned celebrities will help in marketing the brand of the hotel as a luxury brand that has been offered to the prospective customers at affordable prices. On the other hand, the billboards located in the major airports in the region will help in making it easy for travelers to identify appropriate hotel for their stay while staying in the region. This material was prepared by Mason Dillon, who is an essay professors reviews writer.
