The main purpose of hotel product placement is usually to allow customers to distinguish the hotel from other competitors. To achieve this goal, you need to do the following three steps:
Identify competitors and analyze competitors' products
Hotel competitor is actually a substitute for a hotel product, that is with the same or similar characteristics of the hotel (such as the same or similar area, hotel star rating, customer group, price, etc.). When hotels define their competitors, they often make mistakes, that is they simply use the star rating or business scope as a basis for their identification and consider hotels of the same star rating or other hotels with similar business scope as their competitors. In fact, the range of competitors for hotel products should be limited to the same or similar target market.
There is a simple test method to judge if a hotel product's in competition with similar hotel products: When the hotel reduces the price of the product, notice if the other party's customers have been transferred. If so, it means that the other party is a competitor. The more customers are transferred, the higher the degree of competition and vice versa.
After identifying competitors, the hotel must gather information about competitors' products through various channels and understand what products competitors offer to customers in the target market and their quality, quantity, price, features and other aspects are comparable to similar hotel products. What are the advantages and disadvantages, in order to clarify the position of the competitors' product and to lay the foundations for the adaptation of their own products.
Precise selection of competitive advantages and creating a market image
Through the previous step, the hotel conducts a detailed and in-depth research and analysis of advantages for competitors and their products in the target market and finds the advantages of the hotel. These advantages are the main basis for the placement of hotel products.
The hotel may face a situation where multiple competitive advantages coexist. It is not appropriate to emphasize all the advantages at this time, because sometimes it leaves customers with the feeling of "self-selling and bragging". In addition, too much information will lose focus, which does not favor the deepening of customers. Therefore, the hotel should use a specific method to choose between many competitive advantages, evaluate and select the most suitable project for the hotel and first determine the position of the hotel product in the target market.
Once the benefits of hotel products have been defined, various means must be taken to accurately and effectively disseminate the concept of placing hotel products in the target market. The advantages of hotel products will not be automatically manifested in the target market. In order for these advantages to play a role and influence customers' purchasing decisions, hotels need to create a clear market picture based on the features and benefits of the product. To skillfully communicate with customers in the target market, to attract their attention and interest and gain their approval.
When publishing and communicating with the target market, the hotel should try to avoid misunderstandings between the public due to inappropriate publicity, which will affect the hotel's advantages. For example, the placement communicated to the public is too low to show its own characteristics or the placement is too high, which does not conform to the actual situation, misleading customers into believing that the hotel is only dealing with advanced and high quality products at prices; or the position is ambiguous and can not be consolidated between customers. clear understanding.
Check the condition and adjust the position of the product
The customer's understanding of the hotel and its products is not static. Even if the placement of the product is very convenient, there will be discrepancies in the following cases:
1. Competitors in the target market launch new products, which are placed close to the hotel products, occupying part of the hotel products market, resulting in the reduction of the market share of the hotel products.
2. Customer preferences have changed so that the preference for hotel products is transferred to certain competitors' products.
When faced with the above situation, the hotel will have to take specific steps to adjust or even reposition its products according to the changes. Before making a decision to adjust or relocate, hotels should consider some of the following factors:
First, the hotel must accurately calculate the full cost of moving its product location from one target market to another.
Second, how will hotels be rewarded for placing their products in new locations.
The amount of profit depends on the number of buyers and competitors in the target market, how high the average purchase rate is and at what level the selling price of hotel products in the target market can be set. The hotel should carefully compare revenue and expenditure forecasts one at a time, weigh the pros and cons, and then decide whether to relocate the hotel's products to avoid hasty adjustments, which may lead to a situation where profits outweigh losses.
The placement of hotel products is important and practical for the operation of the hotel. It not only contributes to the establishment of the characteristics of the market of its own hotel and its products, to the creation of a unique image of the market, but also to the laying of the foundations for the formation of a marketing by the hotel. mixing strategy. If you want to promote the healthy development of your hotel in today's market competition, it is imperative that you do a good job of positioning your hotel products.
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