white paper Brand Strength Part 2: Do the price based market segments make sense to travelers?
ONLY ONE IN THREE TRAVELERS IN A RECENT SURVEY SAID THAT FOUR SEASONS HOTELS BELONGS IN THE “LUXURY” SEGMENT, WHILE 58% SAID RITZ CARLTON BELONG IN THAT GROUP.
ore startling is the opposite side: more than one in three believe Four Seasons hotels belong in the same segment as Marriott, Sheraton or Westin Hotels. More than half of the respondents suggest that Marriott is in the same segment as Four Points or Crowne Plaza, while nearly a third see Four Points in the same segment as Hampton Inns.
So what? The purpose of branding is to help people make sense of the ever growing landscape of choices. The fundamental role of a brand is to clarify the nature of the product relative to price and other potential options (position). The art of branding is to do this in such a way that the product is relevant and clearly differentiated: i.e. meets the specific needs of the customer(s) and does so in ways that other brands cannot. All other components of brand strength (such as awareness, empathy, trust) are important, but are moot if the customer does not know what the product is or where it fits in the competitive landscape. 416.967.3337 www.proteanhospitality.com © 2013
The hospitality industry adopted a price based segmentation strategy
some years ago. Quite rightly, the industry designed a stratified hierarchy of price-based segments in order to clarify for marketers, operators, owners, developers and finally, customers, what brands competed with each other and therefore what could be expected from each brand.