Harvard Case - Airotel Rumlang's Branding Challenge: A Conjoint Study
"Airotel Rumlang's Branding Challenge: A Conjoint Study" Harvard business case study is written by Stefan Michel. It deals with the challenges in the field of Organizational Behavior. The case study is 9 page(s) long and it was first published on : May 1, 2009
At Fern Fort University, we recommend Airotel Rumlang implement a multi-pronged branding strategy that leverages the insights from the conjoint study, focuses on differentiation, and emphasizes customer experience. This strategy should encompass repositioning the hotel to cater to a specific target market, enhancing the guest experience through targeted service improvements, and utilizing effective marketing channels to communicate the new brand positioning.
2. Background
Airotel Rumlang, a mid-range hotel in Switzerland, faces a branding challenge. While the hotel enjoys a loyal customer base, it struggles to attract new guests and compete with larger chains. The case study highlights the use of a conjoint analysis to understand customer preferences and identify key attributes influencing their hotel choices.
The main protagonists are:
- Airotel Rumlang's management: They are tasked with developing a successful branding strategy to attract new customers and differentiate the hotel in a competitive market.
- The conjoint study participants: Their preferences and feedback provide valuable insights into customer needs and expectations.
3. Analysis of the Case Study
The conjoint study reveals several key insights:
- Price sensitivity: Customers are price-conscious, and Airotel Rumlang's pricing needs to be competitive.
- Value for money: Customers prioritize value for money, seeking a balance between amenities and price.
- Location and accessibility: Convenient location and easy accessibility are highly valued.
- Amenities: While amenities are important, customers prioritize specific features like free Wi-Fi and comfortable beds over a wide range of amenities.
Applying the Marketing Mix Framework:
- Product: Airotel Rumlang needs to reposition itself as a value-driven hotel offering a specific set of amenities that align with customer preferences. This could involve focusing on specific target segments, like business travelers or families, and tailoring the offering accordingly.
- Price: The hotel should maintain competitive pricing while ensuring profitability. This could involve analyzing competitor pricing and adjusting the hotel's pricing strategy accordingly.
- Place: The hotel's location is a key advantage. Airotel Rumlang should leverage this by promoting its proximity to attractions and transportation hubs.
- Promotion: The hotel needs to communicate its value proposition effectively through targeted marketing campaigns. This could include leveraging online channels, social media, and partnerships with local businesses.
Organizational Behavior Considerations:
- Leadership: Airotel Rumlang's leadership needs to be committed to implementing the new branding strategy and fostering a culture of customer-centricity.
- Team Dynamics: Cross-functional teams need to collaborate effectively to implement the new strategy. This requires open communication, shared goals, and a focus on teamwork.
- Employee Motivation: Employees need to be motivated to deliver exceptional customer service. This requires clear communication of the new branding strategy and its impact on employee roles and responsibilities.
4. Recommendations
- Reposition Airotel Rumlang as a value-driven hotel: Focus on specific target segments like business travelers or families and tailor the offering to meet their needs. This could involve offering packages that include specific amenities and services.
- Enhance the guest experience: Implement targeted service improvements based on the conjoint study findings. This could include upgrading Wi-Fi, improving the comfort of beds, and offering more personalized service.
- Develop a compelling brand story: Communicate Airotel Rumlang's unique value proposition through targeted marketing campaigns. This could involve highlighting the hotel's location, amenities, and commitment to customer satisfaction.
- Leverage online channels and social media: Utilize online booking platforms, social media marketing, and content marketing to reach potential customers.
- Partner with local businesses: Collaborate with local businesses to offer packages and promotions that attract new customers.
- Implement a customer feedback system: Gather feedback from guests to continuously improve the hotel's offerings and ensure customer satisfaction.
- Train employees on the new branding strategy: Ensure employees understand the new brand positioning and are equipped to deliver exceptional customer service.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations align with Airotel Rumlang's core competencies in providing comfortable accommodations and excellent service. They also support the hotel's mission of providing a positive guest experience.
- External customers and internal clients: The recommendations are designed to meet the needs of both external customers and internal clients (employees). They prioritize customer satisfaction while also ensuring employee engagement and motivation.
- Competitors: The recommendations consider the competitive landscape and aim to differentiate Airotel Rumlang from larger chains.
- Attractiveness: The recommendations are designed to be cost-effective and have a positive impact on the hotel's profitability.
Assumptions:
- The hotel's management is committed to implementing the new branding strategy.
- Employees are willing to embrace the new brand positioning and deliver exceptional customer service.
- The hotel has the resources to implement the recommended changes.
6. Conclusion
By implementing these recommendations, Airotel Rumlang can effectively leverage the insights from the conjoint study to reposition itself as a value-driven hotel, enhance the guest experience, and attract new customers. This will require a commitment from leadership, effective teamwork, and a focus on customer-centricity.
7. Discussion
Alternative Options:
- Maintaining the status quo: This option carries the risk of continued market share decline and reduced profitability.
- Focusing on a niche market: This could be a viable option, but it requires careful market research and a clear understanding of the target segment's needs.
Risks and Key Assumptions:
- Resistance to change: Employees may resist the new branding strategy, leading to implementation challenges.
- Insufficient resources: The hotel may lack the resources to implement all of the recommended changes.
- Competition: Competitors may react to Airotel Rumlang's new strategy, leading to increased competition.
8. Next Steps
- Develop a detailed implementation plan: This plan should outline specific actions, timelines, and responsibilities.
- Communicate the new branding strategy to employees: Ensure employees understand the new brand positioning and their role in delivering exceptional customer service.
- Train employees on the new service standards: Provide employees with the necessary training to deliver the enhanced guest experience.
- Implement the new marketing campaigns: Launch targeted marketing campaigns to reach potential customers.
- Monitor the results: Track the impact of the new branding strategy on key performance indicators, such as customer satisfaction, revenue, and market share.
By taking these steps, Airotel Rumlang can successfully implement its new branding strategy and achieve its business goals.
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Case Description
Irene Fellner owns her family's three-star hotel in Switzerland. Facing decreasing revenues, she undertakes a conjoint analysis that suggests she should take on a brand name. She therefore considers joining the hotel chain Comfort Hotels as a franchisee. Learning objectives: This case is appropriate for teaching at MBA, EMBA or executive levels. In certain instances, it may also be taught in undergraduate courses as a means to illustrate the application of conjoint analysis. In particular, the case would be effective for market research, pricing, segmentation and hospitality courses.
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