Major project marketing communications at meliá hanoi hotel of s a s ctamad co ltd

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[.]

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 MyStudent ID: 11193486

HANOI, 2022

TABLE OF CONTENTS

TABLE OF CONTENTS 2

INTRODUCTION 3

1.1 Rationale 3

1.2 Research objectives 3

1.3 Research scope 4

1.4 Research structure 4

THEORETICAL FRAMEWORK AND LITERATURE REVIEW 5

2.1 Marketing communications 5

2.2 Marketing communications tools 5

2.3 Step to do communications activities 13

2.4 Environmental analysis 14

2.5 SWOT analysis 20

RECOMMENDATIONS 23

3.1 General strategy for improving communications activities in Meliá Hanoi Hotel 23

3.2 Recommendation for improving marketing communications activities in Meliá Hanoi Hotel 23

3.3 Conditions for recommendation 25

CONCLUSION 27

REFERENCES 28

1.1 Rationale

People's material and spiritual well-being has been steadily advancing in recentyears as the economy has grown This has unmistakably demonstrated thenecessity of travel for all social groups across the world The tourism andhospitality sectors have become vital socioeconomic sectors in each particularnation as a result of this tendency Vietnam is not an exception to this trend; it iswell-known for its diverse landscapes and magnificent beauty of nature Thehistorical culture of Vietnam has also been made known by a variety of pricelesshuman resources that have endured for countless generations, particularly Hanoi,

a destination of ancient cultural displays and old quarters With theaforementioned benefits, Vietnam has proudly risen to the top of the list of mostalluring travel destinations for both local and foreign travelers

Due to the increasing demand for travel, a growing number of service suppliershave enlarged the tourist sector, creating excellent circumstances for manytourism-related enterprises, particularly hotels Nevertheless, this hasunavoidably resulted in fierce rivalry amongst firms as they attempt to attractclients Therefore, hotel managers need to develop an effective business strategy

to boost revenue and profit in this sector, with the marketing communicationscomponent being given high attention because it helps businesses find their targetcustomers and benefit from them

Not going against the trend, S.A.S-CTAMAD CO LTD has established theluxurious Meliá Hanoi Hotel on Ly Thuong Kiet Street in the Hoan Kiemdistrict, thereby capturing a share of this market After completing my internship

at the hotel, I understood that despite the Meliá Hanoi Hotel's long history ofoperation, it has continued to develop and have a significant market share whencompared to other hotels of the same class The COVID-19 epidemic, however,has been severely affecting the world in 2020 and 2021, and the hotel sector isone of the most affected economies The devastating decline in income is clearlynot an outlier at the Meliá Hanoi Hotel Vietnam consistently ranks among thetourist destinations with the highest growth rates in the world, despite the factthat the global tourism sector has been in "hibernation" for the past two years as aresult of the devastating effects of the Covid-19 outbreak Therefore, theMarketing & Communications Manager of the hotel must enhance marketingcommunications activities for the company in order to rebuild the brand in thepost-pandemic period and seize the chance to be a successful competitor

With the desire to research about Meliá Hanoi's marketing communicationactivities and propose solutions to outstanding problems, I officially decide tochoose the topic:” Marketing communications at Meliá Hanoi Hotel of S.A.S-CTAMAD CO LTD” as my graduate dissertation topic

1.2 Research objectives

The objectives of this thesis are:

To synchronize marketing communications theory

To analyze the current situation of marketing communications activities atMeliá Hanoi Hotel

To propose recommendations to improve marketing communications at Meliá Hanoi Hotel

1.3 Research scope

This research is conducted at Meliá Hanoi Hotel

Time Scope: From October, 2022 to December, 2022

THEORETICAL FRAMEWORK AND LITERATURE REVIEW

2.1 Marketing communications

2.1.1 Definition

Mr Chris Fill and Mrs Barbara Jamieson (2006, 1/12) said that “Marketingcommunications are a management process through which an organisationengages with its various audiences By understanding an audience’scommunications environment, organisations seek to develop and presentmessages for their identified stakeholder groups, before evaluating and actingupon the responses By conveying messages that are of significant value, theyencourage audiences to offer attitudinal and behavioural responses.”

2.1.2 Role of marketing communications

Marketing communications is a very successful method for influencing consumerbuying behavior, motivating consumers to spend more and buy more frequently

On the other hand, marketing communications does not only serve as a bridgebetween customers and companies, assisting them in determining the benefitsand drawbacks of various goods and services but it also helps promote staff sales

to boost overall sales performance Businesses may now readily identify clientpreferences and become more competitive in the market as business operationsbecome much more efficient

2.2 Marketing communications tools

The marketing communications mix is made up of a collection of tools that may

be used to communicate with a target audience in a variety of ways and tovarying degrees of intensity The media, or the channel via which marketingcommunications messages are disseminated, are additional tools or techniques ofcommunication Advertising, sales promotion, public relations, direct marketing,personal selling and social media marketing are the six main marketingcommunications tools

2.2.1 Advertisement

2.2.1.1 Definition

Advertising is the process of bringing something to the public's attention, usuallythrough paid announcements that are distributed through print, broadcast, orinternet banner advertising According to Philip Kotler and Kevin Lane Keller(2012, 478), advertising is “any paid form of non-personal presentation andpromotion of ideas, goods or services from the sponsor evident by the printmedia (newspapers and magazines), telecommunications (radio and television),network communications (telephone, cable, satellite, wireless), electronic media(audiotape, videotape, videodisk, CD-ROM, web page), and display media(billboards, signs, posters)." In addition, Middleton and Clarke (2001) defineadvertising within the tourism field as one classic method of communication

employed by marketing managers as part of marketing campaigns to enhancetarget audience awareness, comprehension, interest, and motivation.

2.2.1.2 Role of advertisement

Advertisement is an investment that helps to encourage consumption, a tool forselling, a way for businesses to accumulate intangible assets, and a way forbusinesses to measure how customers feel about their offerings Without a well-known brand, even high-quality items cannot ensure the company's success intoday's fiercely competitive market

Advertisement not only informs customers about the goods and the company'scontact information, but it also raises consumer awareness of the businesses andpushes them to purchase their goods Additionally, advertisement has asignificant impact (thank to television technologies, digital techniques, sound andcolor effects ) A compelling program and widespread advertisement might givethe appearance that the vendors are powerful and prosperous The drawback ofadvertisement is that it typically only sends a restricted message to consumerssince it is expensive, difficult to regulate, and difficult to evaluate directoutcomes

2.2.1.3 Advertisement media means

There are some methods of advertisement as follow:

Media advertising: Advertising on mass media, including TV, radio,

newspapers, magazines, and the internet, has a significant impact and may reach

a wide audience, but it also demands frequent use and substantial expenditures.Each mass communication medium has common traits that include both strengthsand weaknesses The organization's goals and capability determine the bestmedia for advertising

Outdoor Advertising: The oldest kind of advertising is outdoor, which uses

panels and signboards to promote a product, service, or company It seeks toprovide clients who are traveling or away from home a stronger impression of thecompany For this reason, the language of marketing communications, visualdesign, and color schemes are combined in a way that will grab the attention ofbypassing audiences and give them a more complete impression of the business.Additionally, technology has been added to the tools, tactics, and procedures ofoutdoor advertising in addition to being enhanced

Advertisement at outlets: Salespeople aim to draw in and persuade more clients

by discussing the functions, features, pricing, and other aspects of the product orservice Leaflets, posters, hanging objects, and public video displays are some ofthe materials utilized in this advertisement

2.2.2 Public Relations

2.2.2.1 Definition

Public relations is a system of related activities in an organic, consistent way that

helps enterprises build and maintain mutually beneficial relationships betweenbusinesses and the public.

2.2.2.2 Role of PR

Although it seems that PR is infrequently utilized, it has the ability to raiseconsumer awareness, determine their preferences, and situate items in a way thatwill safeguard them Though PR includes free activities, in reality, businessesfrequently spend money on these activities in order to keep up positive publicrelations with the mass media

2.2.2.3 Main PR activities

Special events: By planning special events like news conferences, seminars,

exhibits, competitions, anniversaries, and sponsorship of sporting and culturalevents, businesses may highlight new products/ services or other companyinitiatives

Press releases: The press release serves as the fundamental building component

of any PR campaign that prioritizes narrative placement Here, the key detailsregarding the products or services are condensed in a style that will grab themedia's interest

Community relations programme: Many businesses actively encourage their

staff to get involved in social programs including art exhibitions, charity, blooddonation, educational programs, environmental programs, etc This strategy aidsfirms in emphasizing their communications that are built on relationships withthe local community in order to develop a strong brand image among localresidents and stakeholders in general

Sponsorship: A method whereby a business pays all or a portion of the

expenditures involved with a project or program in return for public support.Although sponsorship is a costly strategy, it is becoming more and more common

as businesses look for opportunities to improve their brand recognition,distinguish their products, and reach their target consumers

2.2.3 Sales Promotion

2.2.3.1 Definition

According to Duncan (2002), sales promotion uses material incentives likediscounts or lower pricing to foster a sense of community and promote behavior.Additionally, through transient incentives and displays, sales promotionstrategies are primarily created to promote customer purchase, dealer and sales-force performance in the short-term

Sales promotion is described by Middleton and Clarke (2001) as short-termrewards presented as inducements to purchase, including temporary productaugmentation, which encompasses sales force and distribution network as well ascustomers in the tourist sector Additionally, marketing managers mustcontinually control demand in reaction to unforeseen occurrences in addition to

the regular daily, weekly, or seasonal changes because of the sales promotion oftourism items Additionally, sales promotions are crucial tools in the marketingarsenal of the majority of travel and tourist companies, since they are particularlyideal for such short-term demand changes Besides, the additional items that aresupplied are a value-added incentive to buy.

2.2.3.2 Role of sales promotion

An essential part of every company's operations at its present stage ofdevelopment is sales promotion It offers companies the chance to establishcommercial contacts with both domestic and international partners

2.2.3.3 Sales promotion activities

Additional products given to customers with a specific quantity of goods

Customers who spend a certain amount of money on a specific number of itemswill be offered more of the same kind of products to encourage further purchases

Sales bonus (quarter, month or year)

Cooperating advertisement with agents

Sample goods/ Free trials

Free trials or sample items are excellent ways to get potential customers to checkout a product or service with no risk or obligation on their part Retailers mayprovide free samples at the point of sale, and B2B or B2C businesses mayprovide a free trial or demonstration of their goods or services so that leads andpotential consumers may try them out

Coupons/ vouchers

Because coupons may be distributed in many different methods, such as throughwebsite, social media, or print materials like receipts or product packaging, theyare flexible Coupons are a terrific method to express gratitude to repeatcustomers or to entice new ones to buy more Those who have coupons willreceive discounts when they purchase a certain item

Discount

The enterprises will pack some product bags of the same types together;therefore, customers only have to pay the cost for a package This is a method tostimulate buyers through ensuring them to save a part of cost compared with thenormal price of the product Another way is to reduce price of product comparedwith the selling price metioned on the invoices for each purchase or in eachperiod

Competitions/ Giveaways

Customers can compete in social media challenges that entitle them to prizes orcontests to see who can garner the most likes on a social media post that features

the business This is a fun way to promote businesses and appreciate consumersfor their enthusiastic patronage.

Bonus for frequent customers

To retain regular consumers, businesses frequently lower prices for them by acertain ratio or in other ways, including by introducing products of a similar sort.This promotion strategy is typically applied to wholesale operations

Product's warranty

This is a crucial tool, particularly when clients are concerned about the caliber ofthe goods When it comes to the length of a product's warranty—one year, twoyears, or three years—brands are competing more and more aggressively

2.2.4 Direct Marketing

Shimp (1997) defined direct mail/direct marketing as the use of correspondence,such as letters, catalogues, price lists, booklets, circulars, newsletters, cards, andsamples With direct mail and direct marketing, we can inspire action, get adirect reaction, and make sales since the audience is very selective, the messagecan be tailored, the circulation can be capped at what is reasonable, and it can beutilized to do all of these things The drawbacks include the potential connection

to junk mail and the high cost of each exposure

A message may be modified fast and simply, interaction is available, and the cost

is relatively low thanks to the Internet, including web pages and e-mail Thevisual display is constrained, an audience is not assured, and "hits" may notalways indicate interest are the drawbacks of the internet Additionally, a sizableportion of target audiences could not be online yet Witt and Moutinho (1995)claim that direct mail is one of the most effective forms of advertising forbusinesses that cater to tourists, but it can be challenging to find the right mailinglists for this purpose in the tourism sector Previous visitors are the best sourcesfor mailing list information The main goal of direct marketing is to increase thecost-effectiveness of the utilization of marketing expenditures based on athorough understanding of clients and their behavior as well as directengagement with them (Middleton & Clarke, 2001)

Major direct marketing activities includes:

Personal selling has a tendency to the following as compared to other marketingchannels, such as advertising:

Reduce resource use; cost is frequently negotiated

Products are frequently rather complicated (e.g financial services or new cars)

The buyer and seller communicate after the sale to establish a long-term connection

Clients and prospects want particular data

The acquisition typically entails significant financial outlays

Of course, there are exceptions, but this is how most personal selling occurs Fivesteps make up the personal selling process, including:

Prospecting

Finding prospects, or possible new clients, is the main goal of prospecting.Prospects should be "qualified," which refers to the process of determining ifthey have the potential to become clients If not, businesses risk wasting time

Making first contact

This is the process a salesman goes through before meeting with a client, whether

in person or over the phone, by email, or in writing A call will become moreconcentrated with preparation

The sales call

It is essential to be as enthused as possible about product or service Customerswill not be enthusiastic if sales staff aren't Instead of providing endless lists ofcharacteristics, concentrate on the actual advantages of the product or service inrelation to the unique requirements of clients

Objection handling

Salespeople deal with hurdles that customers place in their path throughobjection handling Some arguments could be too challenging to overcome, andoccasionally the customer might just grow to despise salespeople.

Closing the sale

This is a critical phase Salespeople frequently quit without ever successfullycompleting a transaction Therefore, mastering closure techniques is essential

2.2.6 Social media marketing

2.2.6.1 Definition

Evans and Bratton (2012) defined the basis of social media that relying onpersonal empowerment and liberty as a result of the growth of the Internet andthe creation of social media Consumers may actively engage in discussionsabout everything on social media, from sports and technology to health andtourism In addition, they are outperforming marketers in their own field orword-of-mouth marketing

2.2.6.2 Role of social media marketing

Political strategies, national defense tactics, public policy, advertising, itemmanagement, and even intra-organizational communication are now all becomingincreasingly interwoven with social media

Social promotion is a natural component of promotion as the main goal ofadvertising is to tell consumers about a company's products, who they are, andwhat they provide

Social media may be used to give consumers information about a

company's identity and the products or services they offer

Social media may be helpful for connecting with people who would not otherwise be aware of the products, services, or what the companies stand for

Customers perceive businesses as "real" owing to social media If they want people to follow them, they should communicate to them about their character as well as the newest product information

Social media may be used to connect people with coworkers who may be working in the same sector

Customers may connect and find the connections they seek through social media

2.2.6.3 Social media marketing channels

Facebook

Since its founding in 2004, Facebook has grown to become one of the most known social networking platforms Facebook had around 1.04 billion dailyactive users worldwide in December 2015 Facebook's purpose, which is “to givepeople the power to share and make the world more open and connected Peopleuse Facebook to stay connected with friends and family, to discover what’s going

well-on in the world, and to share and express what matters to them.” (Newsroom,2016) With so many people using Facebook every day throughout the world,businesses have a lot of chances Customers may easily learn about the businessand its products by visiting the company profile, which is simple to create anddoesn't cost any money A user's newsfeed will automatically display the changes

if they have liked the corporate page Facebook is perfect for establishing a brandidentity, notifying people of business hours, developing campaigns,communicating with clients, gathering client feedback, exhibiting the company'saesthetic attractiveness, and motivating clients to take action (Facebook, 2016)

LinkedIn

Since its founding in 2003, LinkedIn has grown to become the largestprofessional network in the world, with more than 400 million users across 200nations The main goal of LinkedIn is to connect professionals across the world

in order to assist businesses in expanding and succeeding LinkedIn is a greattool for businesses to increase brand recognition, find employees, and informpotential consumers about their offers What important is that the shared materialengage visitors, increasing the number of followers It serves as a useful conduitfor developing client connections, particularly with business-to-business clients.Since LinkedIn ought to be regarded as the most professional social networkingplatform, posted information need to reflect that professionalism Due to thereputation of that particular social media platform, when a firm has a profile page

on LinkedIn, it may be seen as more trustworthy (LinkedIn, 2016)

Twitter

Twitter (2016) reports that hundreds of millions of users send more than 500million Tweets everyday, which are communications including text, images,links, and videos Users that are enthusiastic are eager to share informationinstantly and learn about what is occurring across the world However, engagingwith individuals and businesses on a global scale is what really interests people.Because Twitter allows businesses to interact with people across the world andreach a large audience, this has significant advantages for businesses

There are several methods for businesses to benefit from Twitter Every businessmust be aware of what is going on in the world, therefore one of Twitter's keybenefits is the information it offers about certain groups, sectors, and customerinterests Being active on Twitter helps a business build brand and consumerrecognition through consistent communication and promotion Customersfrequently discuss certain products and services on Twitter, thus it is crucial forbusinesses to engage with these users since doing so will help them createnetworks of brand champions, influencers, and potential customers Knowinghow to utilize hashtags for good is one of the important difficulties A hashtag isany word or phrase that starts with the # sign and is used to aggregateconversations into certain subject categories The use of popular hashtags willprobably increase the number of people who read your Tweets (Twitter, 2016)

YouTube

Launched in 2005, YouTube is a platform with one billion users Additionally, itcan be used in 76 languages and is localized in 88 countries, which means that itmay be said to encompass 95% of the global Internet population It is devoted tofinding, viewing, and sharing original video content People and businesses mayconnect, educate, and inspire others with YouTube Additionally, it serves as aneffective distribution tool for unique videos produced by both big and smallsponsors (YouTube, 2016)

YouTube (2016) claims that companies may create and operate their ownchannels in the same manner as people It is essential for businesses to begin byintroducing themselves and to be passionate about producing appealing materialthat will attract members to the channel Producing material that potential clientswould find fascinating and meaningful is the main goal

2.3 Step to do communications activities

Professor, Ph.D Tran Minh Dao, developed a model of the marketingcommunications process that consists of 5 phases and is presented in thePrinciples of Marketing textbook (2002)

2.3.1 Determination of the receivers

Businesses must decide who will get their information before performingmarketing communications operations The target consumers, including currentand future customers, who have an influence on the acquisition of enterprises, arethe receivers Additionally, recipients might be people, organizations, or thebroader public The choice of the appropriate receivers has a significant impact

on how firms choose to conduct communications

2.3.2 Determination of the states relating to the purchase of the receiver

Once the receivers have been identified, it is time to ascertain the status of theconsumer purchase What kind of replies do businesses anticipate from clients?The ultimate aim of communication is to inspire the recipients to take a

purchasing action Businesses must ascertain the consumers' existing states, thestates that communications will transport them to, and the ways in which thesestates impact the customers' purchasing decisions Depending on theseconditions, the appropriate communications actions will be chosen According toPhilip Kotler and Gary Armstrong (1991), communicators should be aware of sixdistinct states relating to target consumers' purchasing decisions, including:

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

Purchase

2.3.3 Selecting media means

In order to select the best communication channels, the communicators must basetheir decisions on the recipients of information (target consumers) as well as thelanguage-related qualities of the medium Communication channels may bedivided into two categories: direct communication channels and indirectcommunication channels

Although indirect communication is frequently more efficient, it is still theprimary strategy for promoting direct communication

2.3.4 Select and design message

After determining the receivers' desires, communicators must create a powerfulmessage Businesses create brands to communicate this idea

2.4 Environmental analysis

2.4.1 External analysis

2.4.1.1 Macro-environment analysis of hospitality industry (PESTLE)

The hotel industry, often known as the leisure industry, includes a wide range ofservice industries It is crucial not just for the tourist sector but also for domesticpassengers The hotel business has been around for a while Every region of thenation has hotels built in the new fashion As a result, a large number of globalvariables make up this field

The hotel sector is without a doubt one of the greatest in the world, and there aremore luxury hotels than ever before However, it also includes a number ofintricacies that call for a thorough examination

The political, economic, socio-cultural, technological, legal, and environmentalvariables that affect the global hotel sector are broken down in "PESTLEAnalysis of the Hotel Industry." In order to understand how the hotel sector isperforming in the present political and social climate, it is important to studythese elements

Political Factors

The hotel sector depends heavily on travel, which in turn depends on the laws ofthe country And as a result, the amount of revenue a government takes from thehotel industry increases in direct proportion to how open it is to tourist laws Inareas where there is political upheaval, the hotel industry suffers But today, alarge portion of the earth is accessible to tourists

The government is also introducing policies that benefit the hotel sector Thegrowth of the hotel industry is aided by open borders and a cordial politicalclimate

Economic Factors

Any significant economic shift has a significant impact on the hotel sector.Luxury hotels make up a sizable portion of this sector People's capacity to affordluxury hotels is greatly impacted by recessions, tiredness, and other economiceffects But at the same time, they also stimulate demand for low-cost lodging,boosting some of the industry's vertical goods

Another economic aspect that influences international guests' capacity to usehotel services is foreign currency rates The hotel sector is able to fly and employmore people when the general global purchasing power increases Developednations must focus on expanding their low-cost hotel sectors if they want toattract more international travelers and expand their economies

Social Factors

The present generation has demonstrated a tremendous interest in traveling.Social media platforms that allow users to share their opinions and create peerpressure to act further feed this This has increased the opportunity forexpenditure to make sure that a wider range of individuals can use the hotelbusiness

Hotels are now more often welcoming varied groups of guests and making surethey are well-equipped to meet their needs The majority of jurisdictions haveestablished via court decisions that such discrimination is not permitted Manyhotels frequently provide discounts and other promotions to make sure thatguests may stay for longer and in greater comfort

Online booking tools, either directly or through third- party applications, havealso contributed to an increase in hotel booking costs The ability to reserve a