Marketing of Apollo Bay Beachfront Motel-Free-Samples for Students

Question: Discuss about the Marketing of Apollo Bay Beachfront Motel. Answer: Background The concept of brand value came up in the recent decades due to the increasing competition in the market. This is also due to the increased transaction that is taking place in tourism industry. Calendar year 2015-16 reflects a value worth $43.6 billion in Australian market (industry.gov.au, 2017). The companies now have to look after the interest of the customers desires and requirements to satisfy the needs a better way than their competitors, instead of just producing and selling the products. Aim The aim of the report will be to identify the existing value proposition of the company and to develop and deliver greater value to the customers. Company Profile The organisation selected for the study is Apollo Beachfront Motel located 163, Great ocean Bay, Apollo Road, Vic 3233. The motel offers world class service and modern rooms to its customers that come into three categories. They are twin, queen and superior queen rooms to their customers decorated with modern furniture and design. The company aims to satisfy the customers with a range of budgets, which made them to offer three different ranges of products. Competitors The company receive tight competition in the market from the competitors such as Cumberland Lorne Resort, Lord Ard Motor Inn, Coastal Motel and Mantra Lorne. Target Market The company offers their products and services to the tourists how come to visit the Apollo bay on holidays or weekends. To be more precise, the primary targets of the company are the couple tourists. Current Value The rating reflected in the third party trip advisors shows that the company has successfully positioned itself in the top of the motel list in the area. Moreover the rating also reflects the customer satisfaction level. The motel received a rating of 4.5 out of 5, which positions them as high end product in the market. Position The company has positioned themselves as luxurious in the operating market with modern facilities offered in their motel. Justification for value proposition Hence, it is necessary for them to constantly revise their value proposition and marketing plan to attain the competitive advantages. Moreover, a large number of youth from different parts of the country visits the beach in Apollo Bay in the weekends, which can be an opportunity to increase the profit. The report will identify the marketing plan for the same purpose. Research Methods Some of the marketing tools that have been used are STP, porters value positioning and VIRO framework for understanding the target market, customers value and competitors value proposition. These further help in designing and communicating future value for the product. STP STP stands for segmentation, targeting and positioning. The organisations use this tool for segmenting the target population that can be based on number of variables such as demographic, psychographic, lifestyle, belief and values, geographic and any other possibilities that can be incorporated as long it fulfils the need (Killen et al, 2012). Targeting on the other hand is the process of identification of the particular part of the segmented society the company wants to sell their products and services to. Different variables that plays active role in it can be size, money, accessibility and focused benefits of the target group (Hassan Craft, 2012). Positioning comes at the end of the cycle where the company decides how to position their product and services to attract the maximum number of targeted customers (Pyo, 2015). Organisations can implement BCG matrix in this part for positioning their product in the market. Figure 1: STP Use of STP for this report will help Apollo Bay Beachfront to identify the target market and provide necessary information required to design and communicate future value to the products and services. Porters Value Proposition This particular tool proposed by Porter offers the organisation to identify the customer needs and satisfaction through the product (E. Dobbs, 2014). It identifies three major aspects of value that are physical value, value of experience and the emotional appeal the customer receives from using the product (Ballantyne et al, 2011; Yunna Yisheng, 2014). The comparison of these values help a company determine the impact that the product might have on the target market. This can communicate the utility of the products to the customer and identify satisfaction level of the products offered to the customers. VIRO Framework Figure 2: VRIO Framework The company conducts competitive analysis by understanding the internal strengths with the help of VRIO framework analysis. The four variables in this model are valuable, rare, Imitate and organised (Chatzoglou et al, 2017). The resources of the company are considered valuable if they find success in address the perceived value of the customers. Rare variable on the other hand identifies the availability of the product in the market and the amount the competitors can offer to the customers. The third variable identifies the level competitors can attain in imitating the products offered (Lin et al, 2012). The final variable recognises if the company is organised that is required in capturing value. Current Value Analysis Customers perceived Value Customers perceived values are the cumulative value possessed by the customers from a product or service in relation to the price they had to pay for the product. It is determined by the satisfaction level of the customer after using the product or services (Boksberger Melsen, 2011). Hence, the amount of customers perceived value is directly proportionate to the product and service quality with the price of the product customer paid. Figure 3: Customers Perceived Value Apollo Bay Beachfront Motel provides world class services to their customers in low price. The primary target customers are the travellers who come in pair from various parts of the country and from overseas to spend some quality time (Li Green, 2011). They have modified their products accordingly to satisfy needs of the customers. The beachfront Motel offers three types of rooms to their products namely twin rooms, queen rooms ad superior queen rooms pricing accordingly from low to high. The rooms are decorated with modern furniture and appliances. The services on the other hand are satisfactory in case of Apollo Bay Beachfront Motel. Every single room in Beachfront Motel is equipped with modern appliances and features like free wifi, 32 LCD HD TV with free connection package, air conditioning and heating. Moreover, the customers also receive services like bar fridge and BBQ facilities (beachfrontmotel.com.au, 2017). The pricing of the rooms on the other hand ranges from $ 180 to $380 AU depending on the type of room as mentioned above. The services provided to the rooms are similar irrespective of their type. The provided services and products by the Apollo Bay Beachfront motel are comparatively low and affordable regardless of the location the motel is situated in. A study on the rating and review of the motel found on various third-party booking websites reflects a higher rating for the motel. For example, the rating data collected from the tripadvisor, an international booking website reflects four stars out of five that is considered as high rating (Tripadvisor.com.au, 2017). Moreover, the customers shares satisfactory reviews about the products and services provided by the company. This can conclude that the company is successful in satisfying their target customers with their products and services. Competitor analysis The primary competitors that have been identified in the market are Cumberland Lorne Resort, Lord Ard Motor Inn, Coastal Motel and Mantra Lorne. These are posing direct threat to Apollo Bay beachfront Motel by providing similar products and services to their customers. They have received rating ranging from four to five. This reflects that the competitors have gained success in satisfying their customers needs. The example of Cumberland Lorne Resort can be brought up for identifying the customer value provided by the competitors of the beachfront Motel. Cumberland Lorne Resort offers the customers a wider range of rooms to their customers. They offer their customers from single room to a resort that can hold the number of 6-10 guests (Cumberland.com.au, 2017). Moreover, they also provide a wider range of modern appliances similar to those provided by Beachfront hotel. In addition, they offer other devices like, hair dryer, grooming kits, and many more. Moreover, the room size offered by Cumberland is greater than that of Beachfront Motel. These are successful in attracting a wider range of customers. Moreover, the companies offer the customers both direct and third party travel agency booking facility to their customers that gives them a competitive advantage in the market. However, the price structure of the companies is higher, compared to the company under study. This is also evidenced in the reviews of the customers from different online booking websites. They have reflected their satisfaction in their reviews, mentioning the fact of high price that bothered some of the customers of these hotels. Beachfronts Current value Position Apollo Bay Beachfront motel has positioned them as luxury motel in low price. They provide a range of rooms and quality service to their target customers in comparatively low price to gain competitive advantage in the market they have positioned themselves in such a way to attract young couples who visits the Apollo Bay beach. Use of STP reveals that the company set values accordingly to the couples need and target the young couples from both domestic and international market (Hassan Craft, 2012). The price range offered to the customers also successfully addresses the complete section if the target population. The coupes can avail various priced motel room according to their budget with modern facilities attached to each of the rooms. A quality time with comfortable cosy experience is offered by the customers to their selected population. The rating reviewed from different third-party booking agencies reflects that the company is experiencing a high demand in the market and have su ccessfully positioned themselves in the given market. They are successful in meeting the target populations requirements. Marketing Promotion Plan Promotion mix is one of the elements of the marketing mix, where other elements are product, price, place, people, process and physical environment. Study of all the elements of marketing mix helps the company to position their products and services to the identified target market. The purpose of using promotional mix by an organisation is to communicate their products and services to customer segment of a particular society they want to attract (Hollensen, 2015). There are four primary elements that falls under the promotional mix. They are: Advertising Sales Promotion Personal Selling Public Relation Every company uses one or the other or all the four elements in the process of attracting the customers. There are certain objectives a company holds for their promotions. It in turn helps the company to focus on the message they need to convey. Objective of Advertising This mode of promotion includes a number of promotional activities that helps the company to reach out their target customers. The hotels are extensively using third-party booking agencies through which a company can promote their products to the customers and also sell their products and services (Sagala et al, 2014). The booking agency in turn charges a portion of the amount charged from the customers as commission. In modern times, the advertising primarily includes digital media promotion such as, television ads, audio advertising using radio, or even the social network advertisement. The companies using this method can best reach its target customers and better influence them for creating the need of using the products the company is offering. Beachfront motel can promote their products and services through television and radio within the country. Moreover, they can use the social networking platforms such as twitter, facebook, linked.in, instagram, pinterest and many more for r eaching out the target customers. Objective of Sales Promotion Beachfront Motel can also utilise the sales promotion for attracting the customers by offering them a significant amount of discount from their actual booking price. The objective of this promotion to significantly increase the demand of the products and services provided (Sedaghat, Sedaghat Moakher, 2012). Apollo Beachfront motel can utilise this promotion in attracting their customers in the lean season when the flow of customer is considerably low. It will be better for them to sell their products in low price than completely stopping it. For example, weak days are likely to attract a limited number of customers for Beachfront motel. They can increase the number of visitors using sales promotion method giving away the services in a price lesser than the actual one. Another purpose of sales promotion is to offer the potential customers a cheaper rate than the competitors in the particular market. It can provide the organisation competitive advantage. Personal Selling Opportunity for the personal selling is limited in case of tourism industry as the maximum number of customers tends to arrange their booking well in advance from the date of visiting the place. Advanced booking is the primary source for the industry, which makes it unnecessary for Beachfront motel to continue the personal selling (Matei, 2014). However, the motel also offers adventure packages unlike their competitors that make it necessary for utilising personal selling. However, the focus on this particular type can be minimised and can be limited to particular segment of promotion as mentioned above. Beachfront motel can also use their personal selling in case of services the customers may need during their stay in the motel. It will be useful as it has the potential to offer the customers an in depth knowledge about the range of services Beachfront motel offers. Moreover, the sales person can also promote their products and services through social network using it as communicati on platform. Public relation It helps in creating an image in the customers mind though organising events. This will make the customers try out the product for once, which in turn offers the opportunity for the company to increase brand loyalty (Al-Abdallah Abou-Moghli, 2012). Beachfront motel organises a number of events to make their trip memorable that will help building customer loyalty. Allocated Budget Promotion Type Quantity Cost per Unit Subtotal Advertisement $ 14,750 Social Media 60 $ 100.00 $ 6,000.00 Online Content 5 $ 750.00 $ 3,750.00 Third-Party Booking 10 $ 500.00 $ 5,000.00 Sales Promotion $ 4,500.00 Campaign A 1 $ 4,500.00 $ 4,500.00 Personal Selling $ 2,100.00 Event Package 6 $ 350.00 $ 2,100.00 Public Relation $4,500.00 Beach Party 3 $ 1,500.00 $ 4,500.00 $ 25,850.00 Table 1: Promotional Budget Source: Authors Creation Conclusion Conclusion can be drawn basing on the above discussion that Apollo Beachfront motel is one of the popular motels in the Apollo Bay. Their promotional strategy has served them well in attaining success. However, there is always scope for modification. The company needs to modify their promotional activities accordingly to increase the number of customers purchasing their products. Moreover, the customer value proposition and competitor value proposition in the given market reflects tight competition, which needs to be addressed; despite of the current value position of held by Beachfront motel. The motel needs to increase and spread their advertising strategy to cover a larger section of the target population both in national and international level. The study reflects that the social media promotion through television and radio will be useful in promoting the products in the national market. However, social network promotion has greater efficiency in attracting the international cust omers. The other mode of promotions will also provide benefits to the company as discussed. It will put Beachfront motel in advantageous position in the market. References Ballantyne, D., Frow, P., Varey, R. J., Payne, A. (2011). Value propositions as communication practice: Taking a wider view.Industrial Marketing Management,40(2), 202-210. Boksberger, P. E., Melsen, L. (2011). 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