Branding is a pinpointing spot
for products or services which assists to offer immediate identification and
can also help to exclude advertising cost (Clarke
and Chein 2007, P.164). O’Neill and Mattila (2004) also state, “brand name operates as a shorthand for quality
by giving the guest important information but the product or service sight
unseen. Giribaldi (2003) also describes “brand as a combination of attributes
which is communicated through name or symbol which can influence consumer mind
in buying decision process”. Cresta’s brand incorporates diverse products or
service without weakening the brand. Whether it be a multiethnic or a truly
genuine African experience. Cresta has
well accomplished brand as their hotels are spread all over Africa: Botswana,
Zambia and Zimbabwe. They still failing to branch out in to European countries.
so the question is what is Cresta doing wrong or where are they lacking?
Reference
Clarke, A. & Chein, W. (2007) international hospitality
management concepts and cases. New York: Rutledge
Giribaldi, V. (2003) the fundamentals of branding. [Online].
Available at: http://www.brandchannel.com (accessed: 11 November 2014)
O’Neill, J.W., & Mattila, A.S. (2004) Hotel branding strategy: Its relationship to guest satisfaction and room revenue. Journal of Hospitality & Tourism Research, 28: 2 , pp. 156-165.
Cresta has four getaways: urban heartbeat, urban oasis, African roots and African footprint. Which are made diverse to meet their differently market segment. Van Sister (2004 cited in Clarke and Chein. 2007) supports this by suggesting that “multibranding has become most popular brand strategies and used by many hotels. It is recognized that multibranding offers good opportunity to grow a business, simply because one brand cannot really cover all of the customer’s needs in all of the various segments of a market that have been targeted.
ReplyDeleteBut a hotel can internally brand within the organization (employees) in order to equip its staff with the brand message, for them to offer customer’s with the right service (Kotler, 2003). Which is what Cresta hotels are currently doing.
Nevertheless, Cresta has brands that meets different market segments meaning that their marketing strategies are successful, as they have managed to spread across Africa.
ReplyDeleteYes Cresta hotels has a successful multibrand but it is not as successful as Marriott Hotels. Marriott is one of the top international hospitality organization, they run and franchise hotels under sixteen different brands.
With that being said, Cresta is still not noticed internationally. The issue may be down to Cresta not having a strong brand name. Aaker and Joachimsthaler (2000) stated that firms ought to try to generate strong brands in all markets over an approach of global brand leadership, which is utilizing managerial framework, methods and philosophies to distribute brand-building properties internationally, to generate worldwide interactions and to improve an international brand approach which will direct and influence country brand tactics.
ReplyDeleteThat is true because multibranding can, be measured as one of the concepts brand policies, in order to bring such benefits professional services and constant administration with marketing effort from the hotels is needed (Clarke and Chein, 2007).
Marriott hotels has an international brand which is acknowledged by marketers and is recognized in the global market (Clarke and Chein. 2007). Whereas Cresta does not have that recognition and if they were to try to branch out in European countries they would have to consider the international brand issues. Issues such as cultural sensitivity, encoding and selective media transmission.
ReplyDeleteI believe franchising could be an easier way for Cresta to branch out in to the global marketing. Franchising allows hotels to increase capital invested. In this competitive industry, the gap of chance for a new or distinctive business ventures ends in short very rapidly. Franchising allows numerous organizations to be opened concurrently, while obtaining a tremendous advantage over competitors (Fransource, 2014).
Nonetheless majority of hotels in the US are branded and there is a strong, rooted and controlled franchise structure. While major hotels have strong brand recognition across Europe, also a large amount of privately run hotels. Rendering brand penetration in Europe by other hotels, plus Europeans have kept a fondness for local tradition or taste (Dla piper, 2012). So this is not attainable for Cresta.
Also the different laws in relation to franchising in Europe also make it difficult for organizations to attempt franchising there.
ReplyDeleteGoing back to the multibranding strategies, multibranding strategy can develop chances for customer relationship management, which allows firms to accomplish consumer requirements exactly. Customer relationship management focuses on using information about customers to create marketing strategies that develop and sustain desirable customer relationship (Pride, Hughes and Kapoor, 2008). Cresta could look at using customer relationship as a way to try and expand their organization globally.
That’s very true because the hospitality industry is all about dealings between service provider and customer. When a hotel is in operation, all operational fault will be seen as a not meeting customers’ expectations and hindering “brand assert” significance in customer’s mind. Brand is one of the most important property that a hotel can have. There is no popular brand that survives in a competitive industry without a devoted and happy customer (Rumambi and Djati, 2009)
ReplyDeleteA hotel can improves its market segment and customer growing degree by their consumer retention. This method certainly gives the hotel more competitive advantage than other marketing accomplishments in the sense of promotional platform. Also, it’s inexpensive for a hotel to provide quality service to its already there customers than trying to obtain new clients (Rumambi and Djati, 2009)
John (1999) suggests that the hospitality industry, has an inseparable service, there is interaction between customer and employee and it is a significant part of service delivery. Good relationships indications to good quality and good customer gratification. Good quality happens as inner relationships are nurtured. Good customers fulfillment occurs as particular customer desires and requirements are known better and aided better. Good quality and customer pleasure means customer retaining and resultant improved profitability (Gummesson’s model, 1999). For Cresta hotels, customer relationship is done the use of technology. They send their clients text messages, informing them about their specials, which is in line with their target markets requirements. Kanagal (2009) points out that “relationship technology leads to deep customer insights so useful in the formulation of effective marketing strategy. Information technology helps store extensive information about customer and give attention from the mind space of the marketer to the mind space of the customer”.
ReplyDeleteAn active connection between brand, operative management and marketing is the key to all successful hotels. But branded hotels who have a strong brand next to high service structure by ensuing its management standard are implemented, does not ensure high level of perception in their customer mind. (Rumambi and Djati, 2009)
ReplyDeleteA brand is essentially an assurance provided by the hotel to its customers that the product they offer will satisfy their needs. This is what makes a brand have vital part for hotels in their determination to please its loyal customer (Campbell, 2002). Customers’ approaches and involvement with a brand is what helps a hotel to distinguish its brand of a product competitors. But brand bonding or brand attachment only occurs when a customer’s sees what a hotel can provide them with. (Rumambi and Djati, 2009).
If you are looking for best branding solutions for your business growth then choose best branding agency for your business.
ReplyDelete