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In this report, Handu Hotel, a famous local hotel in the city of Chengdu, China, was chosen to be analysed using the 7P marketing mix.

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Introduction

7P Service Analysis on Handu Hotel Assessment item 3 - Report - Service Product Analysis MRKT19036 -Marketing of Service Products Term 2, 2011 Prepared and Submitted by First name, LASTNAME, Student ID First name, LASTNAME, Student ID First name, LASTNAME, Student ID Due Date: 22 September 2011 Date Submitted: 22 September 2011 Executive summary With the increasing concerns of qualities and strategic effectiveness of the service products via its marketing activities, the report is made to analyse the Handu Hotel's marketing strategies via the 7P's model. As for details, firstly, the background of Handu Hotel in terms of brief introduction and personal experiences towards this hotel had been offered by the report; after that, the 7P's analysis for Handu Hotel had been outlined through which the service product, pricing, promotion, place, people, processes and physical evidence of this hotel had been critically analysed and discussed based on personal experiences, relevant theoretical frameworks, as well as empirical studies from the recent literatures. Based on findings from the 7P's analysis for Handu Hotel, this report had also offered the recommendations for this hotel via four areas - price, promotional, people, and processes strategies. The recommendations could be concluded as following: * Price strategies of Handu Hotel shall be made more logic and flexible, through which the generic pricing strategy shall be decided and the flexible pricing strategies based on timing shall be made; * Promotional strategies of Handu Hotel is also not flexible and even outdated, based on which the collaboration with group buy websites for larger sales and development of B2B promotional strategies should be implemented by the hotel; * People strategies of Handu Hotel might need to be more specific and effective, thus the recommendation had been offered for a broader range of trainings offered and the focus of employee satisfactions not only by monetary ways, but also by psychological ways; * Process strategy of Handu Hotel might be lacking standardization, therefore standardization shall be built for the hotel's processes to allow the hotel to acquire higher efficiencies. ...read more.

Middle

3.3 Promotion Analysis Promotional strategies for the service industry might be focusing on two aspects of objectives - to attract new customers to come and enjoy the services, as well as to retain customers with suitable loyalty programmes (Cizmar and Webet, 2010). In terms of the hotel industry, according to Blankson and Stokes (2007), usually small hotel chain would make the promotional activities including small range of advertising, word-of-mouth strategy, as well as the loyalty programmes for the existing customers, also Cai (2010) had mentioned about the discounts for VIP customers and the collaboration with those "group buy" websites are the frequently seen strategies in Chinese hotel chain. With the consideration of the above analysis and linking to Handu Hotel's practices in its businesses, the promotional activities for this hotel might be including the following activities: * Advertising: Handu Hotel had developed various advertisements via different media, including the printed advertisements in the local famous newspaper Chengdu Daily, as well as the online advertisements in the travelling websites of China as well as the contracted travel agencies' portal (Heng and Cha, 2007). * Word-of-mouth strategy: Handu Hotel is focusing on word-of-mouth strategy among its customers like most of its competitors in this industry. In the lobby of this hotel, customers could see the manifesto of this company that "tell Handu to your friends is to tell a place of heaven to them", "tell your friends about our good, tell us about our bad", and etc. This might potentially guide the customers to tell their friends if they had a joyful experience in this hotel. Moreover, in order to stimulating the word-of-mouth effect among the customers, Handu Hotel would offer coupons for the customers when they are checking out, this coupons could be used by anyone except for the coupon receivers, through doing this the customers could invite their friends to go to this hotel after that. ...read more.

Conclusion

for the employees, through which the employees could have better understandings about their customers and also have boarder career paths in the future; * Secondly, Handu Hotel might need to focus on the staffs' satisfaction in their work not only through just saying it. Employees' satisfaction had been proved to directly linked to the customers' satisfaction, therefore, the employees' satisfaction is an important issue for the service providers, based on the concept of which, Handu Hotel might need to increase its mental rewards (not just monetary rewards) such as the recognition and appreciation for their employees, also the management of the hotel might need to show respect to the employees' efforts and should develop frequent employee surveys for identifying potential problems affecting the employees' job satisfaction. 4.4 Recommendation for Processes Strategy The processes strategy of Handu Hotel was roughly designed, which might be seemingly good, but actually the lacking of standardizations for its process would be bothering this hotel for more than a chaotic customer service when the hotel is growing larger, but also the complaints and dissatisfaction of customers together with the loss of reputation of the hotel. Actually standardization could make sure that all processes are under good management, and also standardization is a necessary way to allow the hotel to conduct total quality management within the organisation with the final result of raising customer satisfaction towards the services they received. Therefore, standardization shall be build for all the processes of the hotel, which could make the employees' efforts effectively guided in the current time and in the future. 5. Conclusion In conclusion, this report is generally about the 7P's analysis for the strategies of Handu Hotel, a typical service provider in China, based on the personal experiences and recent literatures. Other than the 7P's analysis for the hotel's strategies, four areas of recommendations had been proposed as well in terms of the areas of price, promotion, people, and processes, which might need the hotel to consider about and make adjustments correspondingly. ...read more.

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