NATIONAL ECONOMICS UNIVERSITY BUSINESS SCHOOL MAJOR PROJECT MARKETING COMMUNICATIONS AT MELIÁ HANOI HOTEL OF S A S CTAMAD CO LTD Supervisor Assoc Prof , PhD Le Thi My Linh Student name Hoang Ha My Stu[.]
Rationale
In recent years, the growth of the economy has significantly improved people's material and spiritual well-being, highlighting the importance of travel for all social groups worldwide Consequently, the tourism and hospitality sectors have become essential to the socioeconomic landscape of each nation, including Vietnam Renowned for its stunning landscapes and rich natural beauty, Vietnam also boasts a historical culture supported by invaluable human resources that have persisted through generations Notably, Hanoi, with its ancient cultural displays and historic quarters, exemplifies this heritage As a result, Vietnam has proudly emerged as one of the most attractive travel destinations for both domestic and international tourists.
The rising demand for travel has led to an expansion in the tourism sector, benefiting many businesses, especially hotels However, this growth has intensified competition among firms vying for customers To enhance revenue and profitability, hotel managers must implement effective business strategies, with a strong focus on marketing communications to identify and engage their target audience.
S.A.S-CTAMAD CO LTD has established the luxurious Meliá Hanoi Hotel on Ly Thuong Kiet Street in Hoan Kiem district, capturing a significant market share despite the challenges posed by the COVID-19 pandemic Following my internship at the hotel, I observed that, although it has a long history, Meliá Hanoi continues to thrive compared to its competitors The hotel industry has faced severe impacts from the pandemic, leading to a notable decline in revenue However, Vietnam remains one of the fastest-growing tourist destinations globally, even as the tourism sector has been largely inactive To navigate the post-pandemic landscape, the Marketing & Communications Manager must enhance marketing strategies to rebuild the brand and position the hotel as a strong competitor.
I have chosen to focus my graduate dissertation on the marketing communication activities of Meliá Hanoi Hotel, specifically under S.A.S-CTAMAD CO LTD, with the aim of researching and proposing solutions to existing challenges in this area.
Research objectives
The objectives of this thesis are:
To synchronize marketing communications theory
To analyze the current situation of marketing communications activities at Meliá Hanoi Hotel
To propose recommendations to improve marketing communications atMeliá Hanoi Hotel
Research scope
This research is conducted at Meliá Hanoi Hotel
Time Scope: From October, 2022 to December, 2022
Research structure
The paper concludes four main chapters:
Chapter 2: Theoretical framework and Literature review
Marketing communications
Marketing communications serve as a strategic management process that enables organizations to connect with diverse audiences By analyzing the communication landscape of their target audiences, organizations can craft and deliver meaningful messages tailored to specific stakeholder groups This approach not only fosters engagement but also prompts valuable attitudinal and behavioral responses from the audience.
Marketing communications is a very successful method for influencing consumer buying behavior, motivating consumers to spend more and buy more frequently.
Marketing communications act as a vital link between customers and companies, helping to highlight the advantages and disadvantages of different products and services Additionally, it plays a crucial role in enhancing employee sales efforts, ultimately improving overall sales performance As business operations become more streamlined, companies can easily identify customer preferences, allowing them to gain a competitive edge in the market.
Marketing communications tools
The marketing communications mix consists of various tools designed to engage a target audience through diverse methods and intensities Key components include the media channels used to deliver marketing messages The six primary tools in this mix are advertising, sales promotion, public relations, direct marketing, personal selling, and social media marketing.
Advertising involves promoting products or services to the public through paid announcements across various channels, including print, broadcast, and online platforms As noted by marketing experts Philip Kotler and Kevin Lane Keller, this process is essential for capturing consumer attention and driving engagement.
Advertising is defined as a paid, non-personal promotion of ideas, goods, or services through various media, including print, telecommunications, electronic, and display formats (2012, 478) In the tourism sector, Middleton and Clarke (2001) describe advertising as a fundamental communication strategy used by marketing managers to increase awareness, understanding, interest, and motivation among target audiences.
Advertisement serves as a crucial investment that stimulates consumer spending, acts as a sales tool, and enables businesses to build intangible assets while gauging customer perceptions of their products In today's highly competitive market, a strong brand presence is essential, as even top-quality products cannot guarantee success without it.
Advertisement serves to inform customers about products and company contact details while enhancing consumer awareness and encouraging purchases It significantly influences audiences through advanced technologies like television, digital media, and engaging sound and color effects A well-crafted advertisement can create an impression of strength and prosperity for vendors However, the limitations of advertising include its high costs, challenges in regulation, and difficulties in measuring direct outcomes, often resulting in a restricted message to consumers.
There are some methods of advertisement as follow:
Media advertising encompasses various platforms such as TV, radio, newspapers, magazines, and the internet, allowing for extensive audience reach However, it requires consistent investment and frequent engagement Each medium possesses unique strengths and weaknesses, making it essential for organizations to align their advertising strategies with their specific goals and resources to choose the most effective channels.
Outdoor advertising, the oldest form of advertising, utilizes panels and signboards to effectively promote products, services, or companies It aims to create a lasting impression on clients who are traveling or away from home by integrating marketing communication, visual design, and color schemes to capture the attention of passersby Furthermore, advancements in technology have enhanced the tools, tactics, and strategies used in outdoor advertising, making it more impactful.
Salespeople at outlets focus on attracting and convincing customers by highlighting the product or service's functions, features, and pricing They utilize various advertising materials, including leaflets, posters, hanging displays, and public video screens, to effectively communicate these aspects.
Public relations encompasses a series of interconnected activities that work together to shape an organization's image and influence public perception This strategic approach fosters the development and maintenance of beneficial relationships between businesses and their audiences.
Public relations (PR) may appear underutilized, yet it plays a crucial role in enhancing consumer awareness, understanding preferences, and strategically positioning products While PR encompasses free initiatives, businesses often invest financially in these efforts to maintain favorable relationships with the media.
Businesses can effectively showcase new products, services, and initiatives by organizing special events such as news conferences, seminars, exhibits, competitions, anniversaries, and sponsoring sporting and cultural activities.
Press releases are essential for any PR campaign focused on narrative placement, as they distill key information about products or services into an engaging format that captures media attention.
Many businesses promote employee participation in social initiatives such as art exhibitions, charity events, blood donation drives, educational programs, and environmental efforts This approach helps companies strengthen their communication and foster relationships with the local community, ultimately enhancing their brand image among residents and stakeholders.
Sponsorship is a strategy where businesses fund part or all of a project's costs in exchange for public support Despite its high expenses, this approach is increasingly popular as companies seek to enhance brand recognition, differentiate their products, and connect with their target audience.
Sales promotion, as noted by Duncan (2002), leverages material incentives such as discounts to cultivate a sense of community and encourage specific behaviors These strategies are designed to enhance short-term customer purchases and improve the performance of dealers and sales forces through temporary incentives and promotional displays.
Step to do communications activities
Professor, Ph.D Tran Minh Dao, developed a model of the marketing communications process that consists of 5 phases and is presented in the Principles of Marketing textbook (2002).
Businesses need to identify their target audience before executing marketing communications The recipients of these communications include current and potential customers, as well as individuals, organizations, or the general public who can influence business acquisition Selecting the right audience is crucial, as it significantly affects how companies approach their communication strategies.
2.3.2 Determination of the states relating to the purchase of the receiver
After identifying the receivers, businesses must evaluate the status of consumer purchases and anticipate client responses The primary goal of communication is to motivate recipients to make a purchase It is essential for businesses to understand consumers' current states, the desired states that communications aim to achieve, and how these states influence purchasing decisions Based on these insights, appropriate communication strategies can be developed Philip Kotler and Gary Armstrong (1991) highlight six distinct states that are crucial for understanding target consumers' purchasing behavior.
Awareness-about the product's existence
Knowledge - about aspects of the product
Opinion - in terms of liking or disliking the product
Preference - in terms of alternative products
Conviction-that the product will fulfill a need
To choose the most effective communication channels, it is essential for communicators to consider both the target audience and the language characteristics of the medium Communication channels can be classified into two main types: direct and indirect communication channels.
Although indirect communication is frequently more efficient, it is still the primary strategy for promoting direct communication.
After determining the receivers' desires, communicators must create a powerful message Businesses create brands to communicate this idea.
Environmental analysis
2.4.1.1 Macro-environment analysis of hospitality industry (PESTLE)
The hotel industry, a vital component of the leisure sector, encompasses various service industries that cater to both tourists and domestic travelers With a long-standing history, hotels have evolved in design and functionality, reflecting modern trends across different regions This dynamic field is influenced by numerous global factors, highlighting its significance in the broader travel and hospitality landscape.
The hotel industry is among the largest globally, with a growing number of luxury accommodations However, it encompasses various complexities that require careful analysis.
The "PESTLE Analysis of the Hotel Industry" examines the political, economic, socio-cultural, technological, legal, and environmental factors influencing the global hotel sector Understanding these variables is crucial for assessing the current performance of the hotel industry within today's political and social context.
The hotel industry is significantly influenced by travel, which is governed by national laws Consequently, government revenue from hotels rises in direct relation to the openness of tourist regulations Political instability can adversely affect the hotel sector; however, a substantial part of the world is now accessible to travelers.
The government is also introducing policies that benefit the hotel sector The growth of the hotel industry is aided by open borders and a cordial political climate.
Economic shifts profoundly affect the hotel industry, particularly luxury hotels, which constitute a large segment of this market Recessions and economic challenges significantly influence consumers' ability to afford luxury accommodations Conversely, these economic downturns can increase demand for budget-friendly lodging options, thereby enhancing certain verticals within the industry.
Foreign currency rates significantly impact international guests' ability to utilize hotel services When global purchasing power rises, the hotel industry can thrive and create more jobs To attract more international travelers and boost their economies, developed nations should prioritize the growth of their budget hotel sectors.
The current generation shows a significant enthusiasm for travel, largely fueled by social media platforms that encourage users to share their experiences and create peer pressure This trend has expanded opportunities for spending, enabling a broader audience to engage with the hospitality industry.
Hotels are increasingly accommodating diverse groups of guests, ensuring they are equipped to meet various needs Legal rulings in many jurisdictions prohibit discrimination, reinforcing this commitment To enhance guest comfort and encourage longer stays, numerous hotels offer discounts and promotions.
In recent years, hotels have embraced technology to enhance guest experiences, with nearly all establishments now featuring CCTV cameras for added security Common electrical amenities found in hotels include wifi systems, elevators, and intercoms, all aimed at making visitors' stays more enjoyable.
Online booking tools, whether used directly or via third-party applications, have led to higher hotel booking costs These platforms enable international travelers to easily access essential information, enhancing their ability to make reservations online.
The growth of the hotel industry is significantly influenced by a country's legal framework, with many nations implementing conservative policies that benefit travel and hospitality To support this sector, various politicians are proposing tax incentives for hotels Additionally, hotels are increasingly focused on adhering to regulations related to cleanliness and safety, necessitating stricter verification processes for tourists before they can access services This heightened scrutiny is a response to the global rise in crime and terrorism.
Vietnam's hotel industry faces significant challenges due to harsh weather conditions, which deter potential guests To attract visitors, hotels must provide amenities that alleviate the impact of the environment while also addressing a decline in demand The effects of these weather-related issues have intensified in certain regions, further complicating the growth of the hospitality sector.
Hotels are facing increasing pressure from politicians and environmental advocates to minimize their carbon footprint due to the significant waste generated by the industry In response to the climate crisis, many global hotel chains are transitioning to more biodegradable products.
This PESTLE analysis of the hotel industry offers a thorough examination of global hotel operations, highlighting significant growth in the hotel and leisure sector This upward trend is expected to continue over the next decade, although political issues pose a substantial threat to its expansion Additionally, the analysis incorporates Porter’s Five Forces framework to further assess the competitive landscape of the industry.
An industry is defined as a group of businesses that offer goods and services to meet various needs and functions It encompasses companies that produce similar products and services, often serving as substitutes for one another A market strategy involves a systematic approach aimed at achieving a sustainable competitive advantage over competitors.
SWOT analysis
Organizations utilize SWOT Analysis for effective strategic management and strategy formulation, making it a vital tool for developing business strategies This approach allows for a comprehensive evaluation of both the business and its environment, highlighting the importance of understanding these ecosystems in the context of strategic management techniques.
The hospitality services sector, encompassing restaurants and hotels, is a thriving industry that significantly contributes to the global economy It provides substantial employment opportunities, supporting hundreds of thousands of individuals worldwide.
Without the hotels, the tourist sector would not have flourished Nowadays, travelers reserve hotel rooms online at various places based on their itineraries and timetables.
To thrive in the multi-million dollar hotel industry, a hotel manager must implement a robust business strategy Numerous hotel chains operate globally, highlighting the competitive nature of this sector.
The hotel's strengths, weaknesses, opportunities, and threats will be examined together with the following areas in the SWOT analysis:
Strengths of the hospitality sector o Safe & Cozy Environment Like Home o Workplace Opportunities o Large Profit
Weakness of the hospitality sector o Expensive o Costly Taxes
Opportunities for the hospitality sector o Uniqueness o Changing Prices o Local and foreign tourists o Booking online
Threats of the hospitality sector
The COVID-19 pandemic has led to global lockdowns, forcing people to stay home and limiting their shopping to essential, nutrient-rich goods The hospitality industry, particularly hotels and restaurants, has faced significant challenges, with many workers losing their jobs and income during this time As restrictions ease, a return to normalcy is unlikely, as individuals will need to work diligently throughout the year to rebuild their finances for future travel Consequently, the hotel sector experienced a downturn over the next two years, but began to recover in 2022.
General strategy for improving communications activities in Meliá Hanoi Hotel
To steadily enhance brand reputation in order to promote sales and maintain Meliá Hanoi's position as the customer's first choice.
Professionalize communications efforts more and more to give customers the impression that the hotel is connected and systematic.
Concentrate on communication strategies that may more successfully and affordably reach clients.
Effective communication strategies prioritize long-term goals over short-term objectives, aiming to achieve sustainable success and foster a loyal client base.
Recommendation for improving marketing communications activities in Meliá Hanoi Hotel
In order to speed up the marketing communication process, the hotel first requires stricter control and assessment requirements.
The marketing and communication department should focus on the primary products and services that customers frequently use, as this strategy not only reduces costs but also allows for greater effort to be directed towards enhancing these offerings, ultimately boosting hotel sales.
3.2.2.1 Enhancing advertisements on newspaper/ magazines
To enhance its brand image and communication, Meliá Hanoi should increase its advertising presence in prominent travel and lifestyle publications Ads should be strategically placed in the middle or end of the week, as customers are often too busy to engage with content at the beginning of the week Additionally, Meliá Hanoi should create a compelling PR story to accompany each one-page advertisement, ensuring that the information is more memorable for readers.
“VnExpress”, “Đẹp Magazine”, “Harper's Bazaar”, etc are a few suggested newspapers and magazines.
3.2.2.2 Enhancing advertisements on the Internet
The Internet serves as a cost-effective and efficient marketing communication tool, bridging both temporal and spatial gaps Meliá Hotels International Corporation manages the online advertising for its hotels through its main website, melia.com Each hotel under MHI operates with a unique domain, such as Meliá Hanoi, which can be found at melia.com/vi/hotels/vietnam/hanoi/melia-hanoi To enhance client interaction, it is essential for the website to include a Q&A section.
MHI should implement "searched word ads" alongside banner placements on various websites to ensure that whenever clients search for information related to the hotel market or tourism sector, MHI and its services appear prominently at the top of search engine results, such as Google Search.
3.2.2.3 Enhancing advertisements on building electronics screens
Meliá Hanoi offers advertising opportunities on large LED screens both inside and outside commercial buildings like Vincom Pham Ngoc Thach and Trang Tien Plaza Additionally, there is potential for expanding advertisements on LCD screens and frame media in office buildings, commercial spaces, and apartments To capture attention, the ads must be visually appealing while adhering to MHI’s theme, ensuring that the Meliá Hanoi logo and primary colors are prominent The messaging should be brief, clear, and concise to effectively communicate the intended message.
To maintain existing programs, Meliá Hanoi needs to further diversify its public relations activities to achieve more success.
The Marketing & Communications department should enhance the hotel’s PR efforts by promoting a socially responsible and environmentally friendly brand image To achieve this, the hotel can establish the “Meliá Hanoi Fund” by encouraging donations from guests, employees, and a small percentage of sales revenue For instance, guests could contribute $1 for their first night, employees could voluntarily donate $1 or more monthly, and the hotel could allocate 0.1% of its sales revenue The funds raised would support initiatives for the poor, elderly, and homeless children, as well as educational sponsorships, potentially partnering with organizations like UNICEF This long-term strategy aims to ensure the sustainable reputation of Meliá Hanoi and MHI.
Meliá Hanoi has traditionally expressed gratitude to its customers through Tet holiday gifts, such as hampers, but has not actively engaged in customer gathering activities To enhance its brand and sales, the hotel should organize a customer appreciation party as a public relations initiative This event would not only reveal the hotel’s business strategy but also introduce new sales promotions and support the Meliá Hanoi Fund By leveraging this opportunity, the hotel can effectively promote its brand and emphasize its customer-focused approach.
Meliá Hanoi needs to enhance its promotional offerings and implement a robust marketing strategy to effectively communicate these promotions, similar to other products and services To reach potential customers, the hotel should utilize various effective techniques, including in-store signage, websites, blogs, social media, email marketing campaigns, text messaging, mobile applications, media releases, brochures, and both print and online advertising.
Meliá Hanoi should integrate public relations and sales promotion with direct marketing by sending email advertisements to both existing and prospective clients To facilitate this, the hotel needs to develop a comprehensive client database, which will serve as the foundation for its marketing efforts Additionally, staff members will be designated to regularly update and maintain this client list.
Engaging with partners and clients during significant events, such as CEO or director birthdays, business celebrations, and national holidays, is essential Additionally, it is crucial to ensure that all communications, including documents and emails, align with the Meliá Hanoi brand identity guidelines.
Meliá Hanoi and the Marketing & Communications division should evaluate the outcomes of their direct advertisements, analyze customer feedback, and learn from previous errors to enhance their strategies over time.
Three fundamental competencies are required of salespeople:
Salespeople need to be adept at identifying the demands of the client.
They must be extremely knowledgeable about the products and services that the retailer provides.
They must be able to persuade clients that the products and services provided by their business can better meet their demands than those of their rivals.
Therefore, Meliá Hanoi should create a program to help salespeople improve these three fundamental selling abilities, including:
Choosing candidates who are qualified for certain sales roles.
Providing training and, if necessary, retraining.
Conditions for recommendation
Positive outcomes need thorough coordination of all operations However, there are additional requirements for these activities' realization.
The Marketing & Communications Manager, along with the Director of Sales and Marketing, should prioritize investing in key marketing communications activities, trusting in the potential success of their campaigns While these investments may not yield immediate returns, they hold the promise of long-term benefits.
Meliá Hanoi must set aside money from its commercial revenues in order to adopt the aforementioned measures.
All Sales and Marketing personnel, regardless of their position, must align on the goals and comprehension of marketing communication activities It is essential for everyone to be informed about the overall strategy as well as their individual objectives and roles.
We are seeking to hire one to two marketing communication specialists for our hotel industry's Marketing department This role focuses on long-term sales promotion strategies, ensuring that marketing communications are effectively directed and aligned with our overall objectives.
In today's global economy, the significance of marketing communications for businesses is on the rise Effective marketing communications enhance a firm's operational capabilities and provide numerous benefits Consequently, companies consistently prioritize the improvement of these processes.
A well-crafted business plan, effective management, an appropriate organizational structure, and adequate investment in marketing communications will significantly enhance the firm's sales and growth.
In this paper, I have examined the state of the hotel's marketing communications efforts at Meliá Hanoi in the aim that my recommendations would help it improve.
The paper could be filled with mistakes due to a lack of time and resources.Therefore, I will be grateful for any assistance with this effort.
Chuyển đổi số - Yếu tố quan trọng đối với sự phục hồi và phát triển bền vững của ngành du lịch (2022), truy cập ngày 19 tháng 12 năm 2022, từ
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