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FOUNDED 1909
WEBSITE www.radisson.com
RADISSON BLU
The first Radisson hotel was built in 1909 in Minneapolis, Minnesota, United States.
It is named after the 17th-century French explorer, ranger and furrier Pierre-Esprit
Radisson. The hotel was purchased in 1962 by Curt Carlson (1914–1999).
Radisson Hotels & Resorts is a worldwide chain of 435 hotels with a total of
102,000 guest rooms, in 61 countries.
Radisson Hotels & Resorts is one of the leading, full-service global hotel companies.
It has its business over 420 locations in 73 countries. They are passionate about
“Yes I Can!” service philosophy which empowering the employees to make sure that
they are entirely satisfied for the duration of the stay. This is a major international
hotel company. In 1962 the establishment was bought by Curt Carlson (1914-1999)
as it is still owned by Carlson. With the headquarters of the parent company
Carlson; the companies are located on the suburbs of Minneapolis, Minnesota, the
city where the first Radisson Hotel was built. The company started the business with
around 250 staffs. Fifty feminine staff survived in the hotel as did some of the chefs.
Radisson Blu has a long and successful history of delivering truly leading edge,
stylish and sophisticated international hospitality – dating back more than 50 years
to the highly acclaimed launch of the world’s original Designer Hotel.
Today, Radisson Blu is bigger and stronger than ever. Now, the leading upper-
upscale hotel brand in Europe, with more than 380 hotels open or under
development around the globe; powerful growth – and a brilliant, dynamic
reputation.
Radisson Vision & Mission:
KEY AMENTITES:-
1.Well-equipped gym
2.Multi-purpose sports court
3. 24-hour room service
4. Sauna facilities
5. Indoor pool
6.Car rental desk
7.Currency exchange
8.Limo service
9. Luggage storage
STRUCTURE OF HOTEL INDUSTRY:
RADISSON BLU PROFILE
Iconic, stylish and sophisticated, Radisson Blu creates excitingly individual
hotels for individual minds. They delight travel savvy, modern guests with a
genuine, inviting ambiance. and create excitement with our stunning, leading
edge design. And strive to engage each and every guest through our innovative
and very relevant range of holistic facilities and services, including fast Free
Internet. Radisson has packaged it all neatly together, with our unique Yes I
Can! service ethos and our 100% Satisfaction Guarantee.
It’s a perfect equation that adds up to a highly individual - and unforgettable
– 360° hospitality experience, unrivalled anywhere in the world today.
1) Ritz-Carlton Hotel
2) Choice Hotel
3) Hyatt Hotel
4) Maldron Hotel
5) Marriott Hotel
6) Barbeque Nation
7) Four Seasons Hotels
8) The Doyle Collection Hotels
9) The Chester Field
10) IHG
VARIOUS DEPARTMENTS IN RADISSON WHICH WORKS
TOGETHER:-
SALES & MARKETNG DEPARTMENT
Marketing is the study and management of the exchange process. It involves the things that
the property will do to select a target market and stimulate or alter that market demand for
the property services. A marketing manager in the hotel industry is responsible for
maximizing a hotel's revenues by developing programs to increase occupancy and make
profitable use of its accommodation, meeting and leisure facilities. A hotel marketing
manager must maintain awareness of the factors that influence the hotel industry and gain a
deep understanding of the needs and attitudes of a
hotel’s customers. A hotel marketing manager will be responsible for coordinating marketing
and promotional activities to meet customer needs, working closely with other hotel staff to
ensure customers are satisfied with the facilities and their time there.
A typical hotel should usually have Sales & Marketing division. A typical Sales &
Marketing Division is composed of four different departments.
Public Relations Marketing and sales division can be varied with the size, type, and budget
of the hotel to hotel. Small hotel only have one person who is handling all the sales activities
related to the hotel business. But large hotel have organized sales and marketing division
with no of key personnel. A sales department is particularly very essential in large hotels and
those with convention and banquet facilities. The General manger participates actively in this
area for and basic reason. First sales and their development is a long-range activity of the
hotel and the second sales poof the hotel interwoven with the image of the hotel has in the
eyes of public and GM wishes to enhance that images. This department may have Sales.
Manager who assists the GM on sales calls. The GM and Sales Manager prepare a budget for
the year sale of rooms and the conference hall. They try and achieve the budget by the end of
the year. This is done with a lot of planning and research. This would be achieved by a
contract with one or more travel agents in and outside the town. And for selling the
conference hall the sales team should contact various companies and other business firms.
The main function of this department is to increase the sales volumes of the different
services offered in the hotel, be in terms of rooms, food, beverages, clubs, restaurants, spa
etc. Usually the tools adopted by the department to make the guests accustomed with
different services and offerings in the hotels
The other core areas of its consideration are as follows
Conduct a market Audit
Analysis of market competition.
Market place analysis.
Formulation of new schemes and niche offerings.
Selection of profitable market segments.
Positioning the property, Establishing the objective and action plan.
PESTEL ANALYSIS:
Economic Trends: Change in personal income, inflation and interest rate and the rate of
unemployment are generally focused in the macroeconomic environmental analysis. The
recent growth of GDP has made luxury of hotel Radisson more reasonable to the common
public, but intermittent exchange rates, the inflation and tax rates pose negative impact to the
tourism industry.
Political and Legal Trends: The macro political environment analysis will identify changes
in the position politicians take on issues. A current example is a shift towards greener
policies in the developed world. The macro legal environment analysis is closely linked to
the political environment (politicians tend to make the laws), but also includes trends in court
decisions – such as liability compensation. As a luxury accommodation sector hotel
Radisson gets huge government incentives for the development of new hotel projects, as new
hotels will ultimately increase a country’s GDP. On the other hand government charge big
amount of taxes on the star categorisation of the hotel. As a hotel Radisson must comply
with all health and safety laws and suffers from serious consequences if not obeyed
Radisson uses subdivision marketing process where the market is separated into sub-groups
and these groups are given dissimilar hotel services. As an Ill – known brand, Radisson for
the most part serves to the advanced income earners of different countries. Since Radisson
hotels comprise hotels in several countries and work internationally by capturing most of
market share of not only state but also global market, as a result the market is divided
internationally different countries and diverse culture of different countries.
TARGETING:
After dividing the market into subgroups customers are selected according to their
requirements Hence, targeting is a procedure that takes place after segmentation is
completed.
Radisson provides services to only those who can manage to pay for to pay for high – end
lavishness services. Thus, a new target market of recently Added couples fit best with the
resources (services) Radisson can provide. The rate per night is surely being high enough
and the suits provided could be changed for fitting a honeymoon couple’s needs. At present,
Radisson serves mainly to business class travellers and highly educated and high income
earners. Mostly these customers visit Radisson regularly but not with their families. Thus the
new target of newly Added couples will be a profitable idea for Radisson.
MARKET POSITIONING:
Market positioning is introduction of a product into exacting position in a marketplace by
referring to the user’s perception. Positioning is an indispensable implement that as it allows
the customers to generate their personal observation of the product. The illustration in their
mind is the representative of the clients and this make them encompass the potential of to
choose a superior product.
After targeting a new market section of the newly married couples, Radisson needs to as Ill
make an intuition on its hotels as being the ideal one for the wedded couples.
It is also extremely necessary to look for the competitor while incoming this new
marketplace. Radisson must place itself in a worse form than its competitor while beginning
the deal as they have to generate an image such as “Best for the Best ”.
PRICING STRATERGIES FOLLOWED BY RADISSON:
Due to the competition of five star hotels industry in worldwide that is going to be tighter
and tighter, many five star hotels conduct particular pricing strategy to yield even greater
profit besides using basic pricing. In some markets, managers can enhance profits above
those they would earn by simply charging a single per-unit price to all consumers. In our
chosen hotel Industry Radisson several pricing stratergy have been followed as few of them
listed below:
Price discrimination
Price discrimination is the practice of charging different prices to consumers of the same
service. In this case, hotels can earn higher profit by charging different prices for the same
service. In some cases hotel offers special “discounts” for consumers who will book rooms
and pay it with credit cards. In this way they are able to charge different prices to different
consumers depending on each consumer’s willingness and ability to pay.
Peak-load pricing
Most hotels have periods in which demand is high and periods in which demand is low. For
example, when holiday season, number of urban people from outside prefer going at hill
station and travelling during short holiday periods, mainly due to their constraint budgets and
limited time. As a consequence, four and five star hotels located in hill stations and
shopping area, such gain more benefits
Commodity bundling:
A significant amount of sales revenue of hotels also comes from the usage of ballrooms and
meeting rooms. Ballrooms are particularly popular for wedding occasions and special
corporate events, while meeting rooms are often chosen by corporate and governmental
departments from other provinces as places to meet up. For example, five-star hotels offer
wedding package for wedding occasions, not only ballroom as place for the occasion but also
other services, such as catering, pre-wedding photo, and parking voucher. All those services
are grouped together into a bundle and price charged to customers depends on the service
offerings.
Block Pricing:
By packaging units of a product and selling them as one package, hotels can earn more profit
than by selling per unit price of service. They have to pack identical services together and
offer low price than per-unit of service. This pricing strategy called block pricing which
identical product are packaged together by forcing consumers to make all-or-none decision
to purchase. This way is expected to be able to increase profit received by a hotel.
Price matching:
In hotel industry, pricing strategy is one thing that can be used to attract consumers. Each
hotel competes to satisfy its customers while it also earns more profit on that. But, in cases
where trigger strategy does not work, there is another way that can be used by hotels to attain
higher profit. A hotel can use a price matching strategy to advertise a price and promise to
match any Low price offered by a competitor.
With our Best Rates Guarantee you can book any hotel at radissonblu.com and be confident
you are receiving the best hotel room rate available on the IB – guaranteed. If you find a
Low rate within 24 hours of booking and at least 48 hours prior to your arrival date, submit a
claim and I will honour the Low rate and discount it by 25%. Book today!
A disinterested mix of this aspect is needed to put together and retain cost-effective customer
interaction.
Radisson has focused on promotion policies that relate to customers at individual level,
because of this it has stay left from mass advertising and mass medium outlet, and has
decided on an close communication approach in order to preserve a connection with
consumers on a private level. Also, sale promotions such as coupon are sent using online
mail list. Radisson at present has an conventional email list, where it update consumers on
the subject of new product, promotion, and events happen. Radisson is pretty discerning in
choose electronic Medias. It chooses the exact media for the promotion of advertisement, as
a customer can understand. As an example Radisson uses newspaper Jakarta post
demonstrating accurate media at foreign market booth and FM smart for radio.
Several distribution channels can be used to as a distribution strategy for a service industry
like Radisson to bring out a new product or promotion to the customers. Companies may
focus on a particular channel as a distribution strategy but sometimes selecting or using
several channels help the company to maximise the link between customers and them; as
consumers has more option to choose from and the service is available in different forms. In
a service industry Radisson operates its distribution as direct sales in personal and through
internet. As customer can book their rooms through internet and always get the update of
new product and promotions.
2-d): 3P’s OF EXTENDED MARKETING MIX:
The marketing mix is the premeditated or prepared part of a marketing arrangement.
“The marketing mix is the set of controllable set of tactical marketing tools – product, price,
place and promotion- that the firm blends to produce the response it wants in the target
market.”
It is also called as 4ps the 7Ps. The 4Ps are price, place, product and promotion. The services
marketing mix is also called the 7Ps and includes the addition
of process, people and physical evidence. Services Marketing Mix refers to the
amalgamation of promotion activities associations engage in to prop up and sell ethereal
service, as contrasting to physical goods. Marketing professional and individual use
numerous strategies to create a center of attention and preserve their consumers. These
actions encompass of diverse perceptions, the most significant one being the marketing
blend. Marketing tactic is incorporated with the selling program, or marketing mix. The
marketing mixes conventionally include variables such as price, product, promotion, and
place. Here is an extend to conceptualize the function of the supplementary 3Ps and how
they ought to be managed, in particular in the service business like hotel Radisson Blue.
PEOPLE:
Referring to the distinctiveness of services discussed, services are not concrete and
necessitate be forming and using concurrently. “The value of people in the service delivery
system becomes extremely important in the co-creation of value.” . Consumers connect the
charge of the service to the distinctiveness of the service contributor. This involves a
remarkable need for the service provider to comprehend their involvement to the service
eminence. If there is a divergence of the predictable assessment by the consumers to what the
consumers are presented, there will be a discernment breach.
PHYSICAL ASPECTS:
Physical aspect sometimes termed as customer service. It has got the place at the circle of the
expanded marketing mix as it got significant impact on the other components of extended
marketing mix. That is the only tangible part of the service a hotel can provide. As for
instance for our case studies hotel Radisson Blue the compactness and tidiness of the
reception desk, the rooms and other amenities outline component of the physical feature of
the service. The character of the service deliverance together with the lead-time is as Ill part
of the consumer service. Customer service does have an effect on the other apparatus
because it is almost the amalgamation of the presentation of all workings of expanded
marketing mix.
PROCESS:
The service provider need to be sound conversant of the means the service is breed and
delivered to the consumers. In this case the feature of message, communication purpose and
strategy forms components of process information. There should not be mystification
connecting this constituent of marketing blend and that of customary marketing mix up,
promotion. Process information is concerning the temperament of the service formation and
deliverance structure while advertising is about informing potential and existing consumers
about the accessibility of the product-service. Since consumers are not able to see the service
they will construct assurance on the in sequence set to them by service provider about the
entire procedure about the service. Some consumers are confrontational, so they will require
details regarding the procedure of the service. Once the service contributor is not in no doubt
about the in sequence he is giving about the service of the method, customers can entity the
offer.
BIBLIOGRAPHY
The information provided in this project is collected from various sources like;
www.wikipedia.com
www.Wikipedia.org