Product positioning and target market

I was in a meeting yesterday discussing about one of our hotels. The team told me that this hotel which is situated in a CBD area has a corporate business as a main target market. However, the hotel performance has not be good. And, I was explained that one of the reasons is because the corporate business in this area has dropped significantly in the past few years. It could be the case, or not.

This hotel was built and branded under an art theme. Originally, its rates were set higher than other hotels in the area because of its artistic differentiation. It didn’t work well so the rates had declined and the team took whatever markets they could find. The hotel lost its positioning.

Corporate marketing could be important. However, would they pay extra to stay at this hotel to have an artistic experience? I don’t think so. The problem is when the product positioning and the target market do not match, you struggle. The team need to figure out first on how to fix this mismatch. If not, they will struggle forever.

Apivut

3 thoughts on “Product positioning and target market

  1. Wow, that sounds like a bad problem to have, is it running at a profit or loss?

    Is there another business unit that is better suited to that property’s market?

    What options do you have, will the company have to sell the property, to avoid it become a bigger issue down the track?

    Liked by 1 person

  2. Good luck with that, I hope it turns around for you.

    It’s nice to be making good business decisions, as well as attracting happy new customers, and to be keeping the existing customers happy too.

    Like

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