CASE STUDY
From luxury to budget to no-frills and boutique… the major hotel giants are moving ahead with innovative concepts, and the outcome – a never before choice for business as well as leisure travelers. Forging ahead amid stiff competition and industry growth nearing maturity, hoteliers are constantly thinking of new value innovations. One such innovation gave birth to the no-frills concept, based on a typical Japanese capsule hotel along with considerable inspiration from low-cost airlines and first class accommodation on air flight. Particularly visible in popular regions of the US and Europe, they set a unique and distinct competitive position in the market. However, in an industry where customers identify their lifestyle with the hotel brands, known for luxury and comfort, how would no-frills budget hotels appeal to the customers? Given their strategic pricing, can these hotels earn sustainable profits amid competition from high-end as well as low-end hotel segments?
Answer the following question.
Q1. Discuss the development trends in the global hotel industry and its growth across the years.
Q2. Explain various operational aspects of hotel industry and their implications on the performance of the hotel companies.
Q3. Comment on Japanese capsule hotels, their characteristic features, and services offered.
Q4. Evaluate the success of these new concept hotels and identify their growth potential.
CASE STUDY
Unilever’s INR 55 billion ($1.36 billion) brand – Rexona, internationally spans across 90 markets worldwide commanding 14.5% share of the global deodorant market. In India, as one of the pioneer brands of Hindustan Unilever Limited (HUL), Rexona was worth INR 1.78 billion in 2006. With an annual growth rate of 28%, Rexona continued to compete as one of the core brands in HUL’s brand portfolio. Launched as a soap brand, Rexona’s journey through Indian fast moving consumer goods market has been a dramatic one. At the end of 2006, the brand managed to emerge as a mass deodorant brand, albeit with some hiccups. The case discusses the challenges faced by the popular brand, despite creating a market which was virtually nonexistent in India. The case also discusses the Indian consumers’ perception towards body odour and the challenges for Rexona in changing the consumer outlook towards deodorants. The case inculcates various dimensions of brand positioning and the challenges of repositioning a deodorant brand.
Answer the following question.
Q1. Mention the trends in the homecare and personal care market in India.
Q2. Discuss the challenges for Rexona in the process of brand repositioning
CASE STUDY
Mr. Rajesh Kumar a fresh chemical engineer with MBA in marketing developed a new detergent powders with special features. With limited capital available with him, he started manufacturing and marketing his new detergent under the brand name “Whitoo”. Mr. Kumar decided to price his detergent much lower than the other detergents available in the market. His objective was to make his product popular among the masses. His pricing strategy paid rich dividend as “Whittoo” became an instant success and the market demand was growing rapidly. With the help of new financial strength acquired Mr. Kumar developed a premium quality luxury bathing soap with a unique combination of colour, perfume, and size. The cost price of this luxurious price was high. However Mr. Kumar again priced it substantially lower as compared to similar soaps available in the market. He was selling his high quality soap at a low profit margin.
Answer the following question.
Q1. Name the pricing policy introduced by Mr. Kumar in the case of detergent powder?
Q2. Do you feel that Mr. Kumar committed a pricing mistake in the case of bathing soap?
Q3. Explain the net effect on profitability if Mr. Kumar had adapted skimming the cream pricing in the case of luxury soap?
Q4. Will you recommend below cost pricing to Mr. Kumar?
CASE STUDY
To build awareness amongst Malaysia’s Muslim community, Hong Leong Islamic Bank Berhad (HLISB) took a YouTube-first approach and produced a video in centered around the Malay culture of giving dowry. The first campaign they created was a six-minute video called “Amin eh Mano”, published in November last year. Relatable content isn’t just speaking the language of your target audience; it’s also about speaking to them – what tugs at their heartstrings, what makes them laugh, what engages them. ”We set out to first understand the psyche, the likes and dislikes of the typical Malay from what they eat, what they do, what they listen to, to what they watch,” shares Sairana Mohd Saad, Head of Branding, Communications & Corporate Social Responsibility at HLISB. “To hit the majority of the Malay audience, especially when a message is coming from an unknown Chinese brand like Hong Leong, I reckoned that we had to add in some exaggeration to accentuate the message and be seen as a company that understands the core of the Malay culture.” Thus the Negeri Sembilan dialect was strategically chosen for a localised tone. Weddings, which are a huge part of the Malay culture which emphasizes on kinship, became the subject of the video. The mini drama unfolds in the setting of a Malay kampung (village) one which the target demographic can easily relate to. “I wanted it to be not just tearjerker ad. It had to have a different touch one which no other brand ad had,” shares Saad. The success of “Amin eh Mano” is evidence that good longform digital content is effective in creating viewer engagement. YouTube Analytics viewer engagement chart shows that after the natural dropoff in the first 5 seconds, most viewers stayed on to watch the video almost to completion. Based on the success of this first video, HLISB is planning a series of YouTube videos as part of their online campaign. “HLISB will continue its series of unique storytelling in the hopes of winning the hearts and minds of our target audience. The stories are all based on teachings of the Qur’an and Hadiths, but most importantly, they are inherently connected with a strong story to the bank’s digital technology capabilities,” concludes Saad.
Answer the following question.
Q1. Describe the usefulness of the technology used by Hong Leong Islamic Bank Berhad (HLISB), for marketing.
Q2. Was the marketing goal and approach successful? Discuss in detail.