Industry background Organization background In this report, the Hong Kong luxury international hotel Shangri-la will be used. The first Shangri-la hotel was built in Singapore in 1971 and gradually became the most successful hotel in Asia and can be seen in many western countries, however, their major market is in Asia. Then they set stock exchange in Hong Kong in 1995. Competitors As we all know, nowadays, the tourist industry is developing fast that many countries need more international hotels.
Shenzhen is a seaside city, many tourist go to the beach, Sheraton is a five star holiday hotel, which means their aims are different from Shangri-la, because Shangri-la is luxury hotel but Sheraton is a resort hotel. However, they are still competitors, having different strategies. Hilton hotel is similar to Shangri-la, they are both luxury hotel and they both seated in the city centre in Shenzhen. Also in the international area they are competitors. Environment In the series of factor of environment, the factor influence Shangri-la most is the cultural, political and economic forces, which are belong to macro-environment.
It is a luxury hotel so they always need to face the changing situation of economic environment, when peoples income fall, it will affect their decision for hotel when they are travelling. The reason why cultural environment will affect them a lot is that they need to satisfy different customers in other countries, for example, they should justify style of decoration to make the local customers comfortable and make the customers from different cultures feel surprise and curious. Product categories A luxury hotel focus on bringing luxury services to customers because their main products are series of services.
Shangri-la hotel in Sydney, for example, they have Spa services in the hotel, which is base on Chinese Spa theory, is called Chi. They also open a romantic Blu bar at night, it is a wonderful place to have a little drink. Of course, they have the basic service of a hotel, hotel room services (Shangri-la hotel, 2010). Marketing segmentation Firstly, a organization need to know what kind of customer will use their product or services, so they need to know the marketing segmentation of their organization.
For Shangri-la, a luxury hotel, their segmentation focus on socioeconomic situation which is belong to demographic environment, customers behavior because they always face the high class customers, the customers who let them made the most of profits. Marketing targeting After segment the market, the organization need to target a specific market, or can be called the most important market to them from the segmentation. They can use undifferentiated marketing or differentiated marketing or concentrated marketing strategy. As a famous luxury hotel, Shangri-la use the differentiated strategy to distinguish themselves and their competitors.