Question

Question 2 a) Analyse and suggest two (2) product mix pricing and two (2) price adaptation strategies that Raffles Hotel has adopted or could use to increase its revenue. (20 marks) b) Assume that you are a marketing research consultant. Explain the six (6) steps in the marketing research process when conducting a market research for Raffles Hotel after the makeover to find out how well the refurbished hotel has been received by hotel guests and suggest new marketing strategies that it could implement to attract new customers and increase its revenue. (28 marks)

Answer 1

Question 2

a) Two product mix pricing strategies that Raffles Hotel could adopt to increase its revenues are:

i) Offering a bundle of services at discounted prices: Raffles Hotel can offer some additional services at a discount to the users of its services. For instance, it can offer a discount of say 15% on food and beverages to the guests who stay at the hotel.

ii) Raffles Hotel can use another product mix pricing strategy by bundling the food and beverages package with the use of its conference hall. Thus the clients using its conference hall could be offered a discount on the food and beverages consumed by them. Or alternatively, a discount can be offered on the conference hall charges if the food and beverages service is also used by a client.

b) Six Steps In The Marketing Research Process:

As a marketing research consultant, I would explain the following six steps for conducting the marketing research for Raffles Hotel:

1. Define The Purpose of the marketing research: The purpose is the objective of the research to determine the objectives of the research. This research will have a two fold objectives: a) Finding out how the feedback of the guests about the refurbished Raffles Hotel and b) What new services can be offered or how the existing services can be enhanced to increase the revenue.

2. Preparing Research Design: This step will involve the finalizing of the research type and methods to be used by the Hotel such as survey, focus groups, exploratory survey etc. In case of Raffles Hotel, a survey would be the most appropriate research method.

3. Preparing a Research Instrument:  A research instrument is a tool for collecting of data. In case of Raffles Hotel, an appropriate survey questionnaire would need to be prepared for conducting the research.

4. Collecting Data: Raffles Hotel can use either its own staff or can hire a survey team to collect data on the survey questionnaire from its existing and prospective customers. The survey team will approach the target customers in person or over the phone to collect the data.

5. Analyze The Data: The data collected in step 4 will be collated with the help of a software such as an MS Excel spreadsheet. Once the entire data is collated, it must be analysed to identify the underlying trends to see if there are any problems that need be addressed. The data will help Raffles Hotel to find out where it needs to change its strategies or to formulate new ones for increasing its revenues.

6. Form Conclusions For Implementing: Theanalysis of the data will help Raffles Hotel to form conclusions about what the data really points towards. It will help the Hotel to idebtify new opportunities. It will also help the Hotel to find out where it needs to change its strategies or to formulate new ones for increasing its revenues. The conclusions so arrived at can be then translated into actionable plans for implementation.

I suggest here some new marketing strategies which, when implemented, will help Raffles Hotel to attract new customers and increase its revenues:

1. To attract new customers, the Hotel can enter into reciprocal tie-ups with reputed hotels/ hotel chains in other cities for offering special discounts for their customers who happen to visit this city.

2. Sending discount vouchers along with greetings sent to existing and prospective customers on special occasions suc as birthdays, anniversaries, etc.

3. Offering a First Timer Discount to new customers to attract them to experience the services of the Hotel

4. Improve its visibility through advertising in media as also olacing hordings of its facade and interiors at prominent places in the city