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TIM 314 Branding in the Hotel Industry

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Michelle Kim

on 24 April 2012

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Transcript of TIM 314 Branding in the Hotel Industry

Branding Branding in the Hotel Industry (cc) photo by Metro Centric on Flickr (cc) photo by Franco Folini on Flickr (cc) photo by jimmyharris on Flickr (cc) photo by Metro Centric on Flickr Christina Ly
Debbie Aurellano
Hanne Nagatani
Michael Aposporos
William Petersen
What is Branding? ? Brief History of Branding Visual Break Down of Research Project Housekeeping Marketing Department Current Trends Overall Results The End

Questions? Food & Beverage Department Improvements Method Green Practices
Research ?
F+B
Departmernt Housekeeping
Department Marketing
Department Influences Current Trends Results
&
Analysis Conclusion
“Due to hospitality’s high visibility around the world, the industry has not only the potential to save millions of dollars by “going green” but also become a channel for social change (Ryan, 2002).”




Promote positive brand image
Saves costs
Helps the environment
Increase employee morale



Investment
Intangible results
Not recognized by Consumer


Views Positive Negative Cons Pros Ultimately saves costs
Promote positive brand image

Initial investment is costly
Customer don't want to be part of process only know its there.

According to Roper Starch Worldwide and Cone/Coughlin Communications in 1993, 85% of customers showed positive attitude towards a company that engages in a cause of concern to customers, and 51% of sampled customers responded with willingness to pay extra for products or services associated with initiatives they are concerned for (Simon, 1995) Support Employees participate in implementing green practices
Raise employee morale Hotel Managers
Pros
Ultimately saves costs
Promotes Brand Image Cons
Initial invesment is costly.
Hard to measure results Employees According to Roper Starch Worldwide and Cone/Coughlin Communications in 1993, 85% of customers showed positive attitude towards a company that engages in a cause of concern to customers, and 51% of sampled customers responded with willingness to pay extra for products or services associated with initiatives they are concerned for (Simon, 1995)



Guests’ status (social, financial)
Type of Hotel (business, economy, mid-range, luxury)
Level of concern for sustainability
Region (Location)
Cultural Background
Education level

Green Practices & Marketing Influence Factors to Consider Housekeeping Green Practices Usage of safer chemicals, substitutes, or doing away with the whole product itself.
Proper monitoring of equipment to see that costs will not rise, due to repair negligence.
Replacing a rooms old equipment with new eco-friendly equipment
In-room recycling bins.
Washing towels/linens only when necessary.
Influences Employees Safer working environment
Less load on machines/labor
Extra steps needed to make a procedure more environmentally friendly
Additional and new training needed to perform these procedures with a green mindset

Managers Cost Varies between cost benefits and extra costs
Extra costs needed of the departments funding to run procedures in accordance to the green initiatives
Cutting back costs when it comes to: washing, replacements, repairs

More training to implement which can be costly
Varied cleaning times.
Employee productivity boost due to increased morale. Influences Employees Safer working environment
Less load on machines/labor
Extra steps needed to make a procedure more environmentally friendly
Additional and new training needed to perform these procedures with a green mindset

Managers Cost Training will be more extensive to explain procedures.
There will be an increase in procedures regarding the new training in conservation and recycling.
Management will have to be diligent in following up with the new procedures to ensure a functional system.
Follow state-required green initiatives.
F+B Green Practices Energy-Efficient Appliances.
Energy-Efficient Systems.
Procedures for food waste.
Recycling.
Eliminating the use of Styrofoam.
Procedures for water conservation.
Purchasing eco-friendly products. Ex: Switching out paper/plastic products to recyclable and biodegradable products.
Donating to charities. Practices can have high initial investment cost in short-run, but will see a return in the long-run.
F&B appliances that are energy efficient can range from $900-$1,150 in costs. (ENERGY STAR)
Results easily measurable when compared to original costs
Auditing and maintaining equipment/appliances will reduce cost by ensuring proper functions.


Influence on Customer Consumption Energy Water Waste According to the Green Restaurant Association, restaurants consume 1/3 of all US energy used by the retail segment.
The F&B department as well as Housekeeping, can reduce energy anywhere from using CFL lights, replacing appliances, or installing a eco-friendly ventilation system.

In Hawaii, restaurants are only allowed to serve water if requested.
Some appliances and fixtures that save energy can also save water.
According to the Food Service Technology Center, out of the $10 Billion restaurants spend, 80% is wasted by inefficient equipment and cooking.

According to the Green Restaurant Association, 95% of a restaurants waste could be recycled or composted.
Management in the majority of chain hotels don’t have time to pay attention to food waste or to train others.
The ability to predict demand and lack of food storage directly affects the amount of food waste.

Review Literature and Theories from the Hotel Industry & outside.
Interview Employees & Managers
Formulate results based on research & analyze areas of improvement
Conclusion Third Party Certifiers
Sustainabilty (industry is growing by the millions of rooms per year)
Want to cut costs.
Looking to attract eco-friendly tourists.
Get involved in surrounding community (charity, local suppliers)
Say they are green but are not certified by a third party.
Managers Customers Want to know there is green initiatives in place, but don't want to participate.
Health concious and want organic, fresh foods.

Employees Want a safe work environment.
More aware a green trends.
Want to feel connected to community. Third Party Certifiers The departments are greatly influenced in all aspects for good reason and bad reasons
The departments we researched overall seemed to support some form of green practice.
Hotels are not aware of third party certifiers
Not aware of long-term savings and too worried about short-term cost.
Customers are started to become influenced in their purchasing decisions because of green practices.
Analysis Flaws Most studies have been conducted in metropolitan areas.
We need to look at all departments for better results.
Different demographics and cultures have different views on green practices.
More in depth research neeeds to be done.
Purpose To better understand the influences of green practices on the industry and to assess any problems that we can possibly improve here in Hawaii and other places. Like fresh organic foods
Feel good about eating at the restaurant.
Usually more expensive. (good & bad) Brand Loyalty
“Brand loyalty includes some degree of commitment toward the quality of a brand that is a function of both positive attitudes and repetitive purchases” (Tepeci, 1999).

Four Stages of Loyalty
Cognitive Loyalty

Affective Loyalty

Conative Loyalty

Action Loyalty

Source: Oliver, R. L. (1997). Satisfaction: A behavioral perspective on the consumer.  New York: McGraw Hill.


Advantages of Brand Loyalty
Continued profit
Reduced marketing costs
Increases per-customer revenue growth
Increases in referrals
Increases in price premiums
Provides competitive advantage


Source: Tepeci, Mustafa. (1999) "Increasing brand loyalty in the hospitality industry", International Journal of Contemporary Hospitality Management, Vol. 11 Iss: 5, pp.223 - 230
Source: Deloitte’s 2011 Annual Business Traveler Survey
Source: Deloitte’s 2011 Annual Business Traveler Survey

Research Question
How does branding influence the customer purchasing decisions among hotels; and contribute to the  success of a hotel in the hospitality industry?
To answer this question we felt it necessary to further examine brand identity and brand loyalty.  What purpose does brand identity serve? Who contributes to the brand identity? Which aspects of brand identity promote brand loyalty? How does brand loyalty and brand identity pertain to brand equity? And, does effective dissemination of brand identity lead to brand loyalty, and ultimately promote brand equity?

#1 Threat to a Brand
Consistency
Employees
“A frequently neglected view is that the brand can be devalued by the exit of high quality providers.” - Mangan & Collins, 2002.
The Brand
“...although advertising creates brand loyalty, sales promotion creates brand switching. This axiom stems from a common belief that when consumers experience fewer differences between alternatives, they become more price sensitive and thus more vulnerable to competitive brands on sale.” (Jensen & Hansen, 2006)
Conclusions
Promote consistency throughout the entire brand.
Recomendations
Promotion of the Brand Identity begins with the Management
“brand supportive behaviour needs to be encouraged and modelled wherever possible, and that is the responsibility of management.” – King C. 2010

Ensure that your brand is consistent!

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