Introduction
Park Hyatt Auckland, a sub-brand under the umbrella brand Hyatt, is one of the most luxurious companies operating in the hospitality industry. The firm, which is based in Auckland, New Zealand, was established in 2019 and has a variety of service portfolio, including hotel, food, beverage, spa, dining, and accommodation (“Company information”, n.d.). Due to its newness in the industry, compared to its competitors, this research explores how marketing is conducted and ways in which it can be improved to help Park Hyatt Auckland attain its ultimate goal of profit maximization and generation of wealth for shareholders.
Purpose of the Research
This paper will explore the role that marketing plays in Park Hyatt Auckland and some of the effects of internal and external environments on the entity’s marketing strategies. Also, the paper will examine the role that markets play in Park Hyatt Auckland and the specific market in which the business competes. Finally, the paper will explore the consumer’s behavior in relation to the company’s marketing communications, critique some of the marketing communication tactics currently used by the company to target consumer behavior, and make recommendations on how to improve the business.
1.The Role that Marketing Plays in Park Hyatt Auckland
The marketing focus of businesses is complex, and it surpasses the primary practice of promotion and selling. As the literature suggests, one of the roles of marketing, in firms such as Park Hyatt Auckland, is to develop a brand strategy (Karlicek, Chytkova, Horejs, Mohelska & Fischer, 2014). As a firm operating in the hospitality industry, Park Hyatt Auckland works towards differentiating its brand from other competitors and defining its customer base, which is made possible through the marketing function.
Brand strategies are broad and may differ from one industry to another. In this context, brand strategies are long term brand plans developed to create brand loyalty (Durmaz & Yasar, 2016). This marketing role is visible in the method that Park Hyatt Auckland uses to position and differentiate itself in the industry. For example, the firm adopts a rates-based strategy whereby services are offered at different rates depending on consumers’ needs and resources. Most notably, the company has rooms and suites suited for the needs of different travelers. For example, the park suite may be well-suited for a medium-high income family on holiday in Auckland (“Rooms + Suites”, n.d.). On the other hand, the presidential and chairman’s suites have relatively high rates and more luxurious amenities, which may suit business travelers staying in the city.
Marketing also plays a critical role in defining the company’s target consumers to enable the entity to meet the needs of the selected segment. For example, the company differentiates itself in the industry by focusing on high-end travelers in Auckland (“Hyatt hotels corporation”, 2018). This kind of segmentation enables the firm to customize its services and amenities to satisfy the needs of affluent leisure guests. Overall, marketing plays a vital role in developing a brand strategy and segmentation of the Park Hyatt Auckland’s consumers, to help the entity differentiate itself in the industry and promote its services among clients.
Besides facilitating the development of brand strategies, marketing also plays a core role in fostering marketing communications in Park Hyatt Auckland. This role is achieved through the tactical function of marketing, as suggested in the literature, which involves the administration of the marketing mix (Contreras & Ramos, 2015). Most notably, the activities involved in marketing, such as research of the existing market and consumer behavior, enables firms to develop appropriate marketing communications for their target customers. As stated by Gundlach and Wilkie, marketing communications are “the activities and sets of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners, and society” (cited by Vaxjo, 2014, p.5). In this context, marketing helps Park Hyatt Auckland develop effective marketing communications, such as websites and google my business, to help it communicate to its potential customers.
Internal and External Environments of the Organization
Marketing strategies are vital in Park Hyatt Auckland because they help the company achieve a sustainable competitive advantage relative to its rivals and attain its goals. However, as observed by Ibrahim and Harrison (2019), marketing strategies must be a match between a firm’s internal resources and skills and its external environment. Simply put, the internal and external environment surrounding the company affect its marketing strategies.
Overall, the evaluation of internal and external environments of Park Hyatt shapes the type of marketing strategies that would optimize the achievement of the business objectives. One of the external environments that likely shape the firm’s marketing strategies is the technological environment. For example, Collins (2012) notes that new technologies, such as the Internet, have brought revolutionary changes to the medium of promotion used by marketers. Therefore, for Park Hyatt Auckland to remain competitive in business, it must keep pace with promotional strategies associated with the new technologies. Similarly, the competitive environment also shapes the marketing strategies adopted by the firm. As noted by Collins (2012), a firm must monitor the activities of its competitors for it to take actions promptly in instances of threat. For example, the marketing strategies adopted by other participants in the hospitality landscape influence the promotional approach adopted by Park Hyatt to help it remain ahead of the competition. Overall, the internal and external environments shape the marketing strategies adopted by the company.
Recommendations
Based on the evidence presented, it is recommended that Park Hyatt Auckland should closely monitor and adjust its operations according to its internal and external environment to help improve its marketing performance. As avered by Collins (2012), marketers can only spot trends in the market by continually monitoring the environment in which their companies operate. For example, a current social trend that may present an opportunity for the business to attract and retain customers is influencer marketing. Studies reveal that influencer marketing is a viable solution for marketers who are willing to think outside the box while building relationships with their target market (Kadekova & Holiencinova, 2018). Continuously monitoring such trends in the external environment may help Park Hyatt develop better communication channels to improve its marketing performance.
Furthermore, it is recommended that the firm’s marketers should take a broader marketing approach to facilitate the attainment of Park Hyatt goals. As noted by Contreras and Ramos (2015), marketing stretches beyond promotion, and it constitutes of both strategic and tactical functions. Therefore, the company’s marketing team should not only focus on sales and advertising, but also on the tactical role that would help enhance the brand’s strategy and marketing communication.
- The Role that Markets Play in the Business
A business market refers to the people or entities that a firm chooses to sell its products and offer its services to. Overall, a business can either select a target or mass market, depending on its marketing plans. In this context, Park Hyatt Auckland follows a targeted market approach which involves differentiating some aspect of its marketing, such as price, for different groups of customers selected (Principles of marketing, 2010). Fundamentally, the company targets high-end guests by providing elegant and luxurious accommodations (“Hyatt hotels corporation”, 2018). The entity further differentiates its services by providing different accommodations with varying amenities and prices.
In business, target market selection is vital in decision-making about a company’s marketing approach. As noted by Aghdaie and Alimardani (2015), a target market is the heart of many other marketing decisions, such as the ideal market mix and distribution channel. In Park Hyatt Auckland’s context, the market selection is vital in influencing the businesses’ marketing mix. By identifying the target market, the company’s marketers can determine the market’s needs and link them with the most appropriate distribution channel, services, facilities, promotions, and communications. For example, Park Hyatt Auckland offers luxurious services such as parking and recreational facilities which match its target market’s requirements, which constitutes of high-end guests. Furthermore, the company utilizes a website booking system (WBS) as its distribution channel to help clients make early bookings for purposes of convenience.
While Park Hyatt Auckland generally operates in the hospitality industry, its primary focus is in two markets- the accommodation and food and beverage sectors. The company offers luxurious rooms and suites for individuals traveling away from their homes or business people in need of temporary housing in other countries. Additionally, the company provides an option for individuals dining away from their homes in its luxurious restaurant.
Despite being new in the hospitality industry, Park Hyatt Auckland is highly competitive in the accommodation and food and beverage sectors. Most notably, the company derives its competitiveness from both internal and external factors such as facilities. As noted in a prior survey conducted among hotel managers in the Romanian hospitality industry, the management could raise their firm’s competitiveness by improving the accommodation and alimentation standards’ aspect (Tuclea & Padurean, 2008). The managers justified this view by arguing that the majority of the hotel clients are more exigent because expenses are supported by the organization, and thus, they pay more attention to the available facilities, accessibility, and functionality (Tuclea & Padurean, 2008). Similarly, Park Hyatt Auckland operates in a highly competitive market that has numerous participants. The company’s modern facilities, including luxurious accommodations with multiple amenities and parking spaces, distinguish it from its rivals and makes it the number one choice for guests.
Besides facilities, geographical location is also a source of the company’s competitiveness. Studies show that among the qualifying and strengthening factors of a destination is location, safety, and price (Cohut, 2017). In this context, Park Hyatt Auckland is perfectly located on the water’s edge, offering an expansive view across Wynyard Quarter’s Lighter Basin (“Park Hyatt Auckland”, n.d.). The positioning of the company in Auckland provides beautiful scenery of the waters, prompting clients to choose the facility as their number one point of destination
Recommendations
From the information presented, it is evident that Park Hyatt has a significant market share in Auckland’s hospitality industry. However, the company’s management should consistently update the available technology to offer its target market with the best customer experience. As discovered in a study conducted in Romania, managers can increase the competitiveness of their companies by transferring technology and know-how (Cohut, 2017). Similarly, Park Hyatt should monitor the technology used in other international hotels and integrate it into its system to improve its internal performance and customer experience. Secondly, given that the hospitality industry is highly competitive, it should ensure that it maintains a high quality of its services to enhance its preference among customers and retain its market share. As noted in a previous survey, service quality is a source of competitiveness for firms in the hospitality industry (Tuclea & Padurean, 2008). If promoted in Park Hyatt, quality service would help the firm attract and retain more clients.
- Explore Buyer Behavior in Relation to The Company’s Marketing Communications
The Relevance of Buyer Behavior to the Company in its Marketing Strategies
Consumer behavior is a very critical aspect of the marketing efforts of any successful business. As noted by Auf, Meddour, Saoula, and Majid (2018), this concept involves “the study of people’s needs, motivations, and thought processes used in choosing one product over another and the patterns of purchasing different goods and services” (p.178). Buyer behavior is vital in Park Hyatt marketing communication strategies because it enables the company to understand the different dimensions of the consumers, such as likes and expectations, and use this information to develop a strategy that can effectively send the right message to the target group and stir their desire to seek the company’s services.
How the company Adapts its Marketing Communication
Fundamentally, Park Hyatt Auckland adapts its marketing communication by first assessing the behavior of its customers and selecting a strategy that matches the identified behavior, and that can convey messages about its services directly or indirectly to the customers. For example, as noted, a distinct behavior among the company’s consumers is that they are high-end clients, both domestic and international, seeking accommodation and other recreational services. An understanding of this behavior guides the company’s marketers to adopt communication strategies that can send a message of persuasion to potential clients, such as a well-structured website that captures the company’s unique features and offerings and which is easy to navigate.
Marketing Communication Tactics Used by the Company in Relations to Buyer Behavior
Among the most visible communication tactics used by Park Hyatt Auckland is social media. The company has a significant presence in social media sites such as Instagram, where it has almost two thousand followers. Although the firm’s social media following is relatively small, it is ideal because it not only helps to publicize its operations by informing clients about existing services but also enable the formation of a strong relationship between the entity and users from distinct backgrounds (Kapoor, Tamilmani, Rana, Patil, Dwivedi & Nerur, 2017; Vinerean, 2017; Wang, Chen, Nie & Wang, 2019). Besides, this communication tactic aligns with the firm’s consumers who, due to their high-end lifestyle and exploration of luxurious destinations, are likely to be subscribed to at least one social media site.
Besides social media, the company also utilizes a website as its communication tactic. Arguably, this tactic suits the entity’s consumer behavior, which is characterized by high-end international consumers in search of luxurious accommodations and recreational facilities. From the information contained in the company’s website, it is evident that Park Hyatt effectively utilizes this tactic to send a message of world-class dining facilities and luxurious accommodation options that matches the consumer’s behavior.
Furthermore, the company also uses Search Engine Optimization (SEO) as one of its communication tactics. Based on an analysis of the company’s customer base and their behavior, it is evident that this tactic is ideal for achieving the company’s objectives and goals. As noted, the company’s clients are mainly travelers or individuals exploring the city. Arguably, most travelers rely on the Internet to search for some of the most luxurious places to dine and spend their days away from home. SEO enables the company to enhance its web properties and makes its information naturally accessible to its potential consumers.
Recommendations
Overall, the communication tactics used by Park Hyatt Auckland considerably suit its consumers’ behavior. However, a few changes and improvements may be made to enhance the business. First, as noted, the firm has a relatively low social media following. Therefore, the company should consider celebrity endorsements in its social media tactic to enhance the breadth of its audience. As noted by scholars, transferring the positive image and characteristics of a celebrity onto a brand can help marketers trigger consumers’ intent to purchase a service (Schouten, Janssen & Verspaget, 2019; Freire, Quevedo-Silva, Senise & Scrivano, 2018). Similarly, endorsing a celebrity that has a vast social media following would help the company communicate its message to a larger pool of consumers and trigger the intent of consumers to purchase the entity’s services.
Second, the company should also consider utilizing a combination of several communication tactics to reach its customers who exhibit distinct behaviors. Undeniably, Park Hyatt Auckland has limited communication strategies, probably because of its newness in New Zealand’s industry. As the entity continues to grow in the industry, it should consider using other tactics such as TV adverts to target potential consumers that rely on this channel of communication for information.
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