Tuesday, May 7, 2019

Sleepy Inn Motel Case Study Example | Topics and Well Written Essays - 1000 words

Sleepy Inn Motel - Case Study ExampleEven though it is near a quickly expanding resort component part, this represents long-term growth and Huang needs to change his revenue electric current much more quickly. Huang faces competition from Hilton Inn, Ramada Inn, and Best Western as well as many separate lower-priced hotels similar to his own. His larger competition represents very well-known brands with a great deal of brand credit rating and brand loyalty by a variety of mixed demographics. Further, since the only promotional material for this region are two billboards operated by the Tourist Bureau, Huang simply cannot rely on the marketing competency of this action to fill his capacity rates. Huang maintains a low-cost pricing policy that he had established in the hopes that it would set down enough attention to make give-up the ghosters choose Sleepy Inn Motel over new(prenominal) well-established branded competition. However, the fuss here is that 68 portion of visitor s to the region are younger couples and older couples with no children, two demographic groups that typically have much more access to higher pecuniary resources. This is likely the reason wherefore Huang witnesses visitors turn into his parking lot, provided never enter the building. Once a hotel has established brand reference and brand loyalty, it is difficult for a smaller, virtually unknown name to compete effectively without very intense integrated marketing campaigns that must be managed and updated constantly. Further, the study conducted of local tourist needs identified that 78 pct believed it important to have recreational facilities before choosing to make a purchase. This is a substantial people of customers and it is likely that Huangs lack of a swimming pool is the reason why individuals turn in, but then leave in favor of the larger hotel brands. The costs of adding a swimming pool and other recreational facilities, such as a gym or childs area, would be a budg etary problem for Huang who is currently experiencing lower-than-average occupancy ratios. Days Inn does not require extensive financial investment and this is a very well-known brand with many different loyal demographics, including military, school teams, handicraft travelers, and senior citizens. Days Inn already has their own well-established marketing campaigns that include on-air promotions such as the expound promotion with Blue Bonnet margarine and as well a senior citizen discount card to put one over incentive purchases. Since Days Inn also has a dedicated customer reservation line, a travel magazine, and a website, this represents the best long-term option for Huang under a franchising agreement. Days Inn might also allow Huang to establish his own unique in-house marketing literature if this were required which could be determined at the time of contract negotiation. The amount of money demanded under the franchising agreement, by Days Inn, is only eight percent of t otal room revenues. To support choosing Days Inn rather than operating his own brand, a apprize revenue analysis is required. At $45 per night, with only 55 percent of occupancy, this represents $10,395 weekly in clear revenues. By moving under the Days Inn brand, at $70 per night and 68 percent of occupancy, Huang will earn $20,090 in gross revenues weekly or $80,360 monthly. This is almost double what Huang is

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