Segmentation, targeting, and positioning

Segmentation:

       When asked the companies who their customers were, they would answer “Everybody”. However, the company can rarely support satisfaction of everyone in market. Therefore, marketers must segment the market to various levels of potential customers. Market segments can be divided into demography, geography, psychology, behavior of customers. The company then enters which segments contribute to the greatest opportunities. For Fullerton Hotel, due to characteristics of tourism and hospitality, in order to segment market, it has used various variables to consider:

•        Corporate: This segment consists of the business travelers that is a very

  important segment because the room rates paid by them are among the highest the hotel

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  will be able to achieve.

•        Leisure: Leisure travelers come to hotel for a variety of reasons, including

  vacations, weddings, visiting friends and family, or any of a number of other
  nonwork-related reasons. Unlike the corporate travelers who may return to the same geographic

  area frequently, leisure travelers tend to visit a specific area or hotel less often through

  travel agent or recommend about the hotels.

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•        Long-term stay: In some cases, when guests check into a hotel, they plan to stay

  for a long time. These long-term or extended-stay guests are an emerging market
  segment.

Targeting:

       Companies do best when they choose their target markets carefully and prepare tailored marketing program. Today many companies are trying to sell products and services to the “small business market”. So they hire an advertising agency to develop a mass market campaign to small businesses, with little success. It would be better to focus on a specific industry or profession and to reach the corresponding small businesses through someone who has a standing in that industry or profession. In choosing a market, remember: It is easier to sell to people with money than to people without money. And try to sell to users, not buyers.

       For Fullerton, they focus on business guests market and attract them more. Business guests have special needs. Therefore, they desire the quality and services of hotel must be perfect. In fact, 80percent of its guests is business travelers in each year, especial American, Australian and New Zealand. Furthermore, Fullerton concentrates to expand guests’ groups as well. They make up a large portion of traveling public, heavily reply not only on the services of travel agency when reserving their rooms but also on internet for the same purpose.

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Positioning:

       According to Al Ries and Jack Trout, positioning means “the battle for your mind”. However, they also gave a new twist to the term: “But positioning is not what you do to a product. Positioning is what you do to the mind of the prospect” (Ries, A. and Trout, J. (1982) Positioning: The Battle for Your Mind).

       A company can claim to be different and better than another company in numerous ways: We are faster, safer, cheaper, more convenient, more durable, friendlier, higher quality, better value . . . the list goes on. But Ries and Trout emphasized the need to choose one of these so that it would stick in the buyer’s mind. They saw positioning as primarily a communication exercise. Unless a product is identified as being best in some way that is meaningful to some set of customers, it will be poorly positioned and poorly remembered. We remember brands that stand out as first or best in some way.

       To ensure the position of Fullerton, especial business guest market, they put their guests in the highest for services. Fullerton contacts with DOCOMO interTouch to supply high-speed wireless for their guest works. They always expand and develop technology to satisfy business guests’ demands. Besides, Fullerton also provides their promotion to refer to a special packaging of services for staying in groups and long term but with conveniences like larger rooms (or suite), cooking facilities, refrigerator, cleaning services and etc. that can create the environment for guests as home as possible. In fact, Fullerton presents the suite specials offer that enjoy 50% off rate for Palladian, Loft and Suites.

       No positioning will work forever. As changes occur in consumers, competitors, technology, and the economy, companies must reevaluate the positioning of their major brands. Some brands that are losing share may need to be repositioned. This must be done carefully. Remaking the brand may win new customers but lose some current customers who like the brand as it is.

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SWOT Analysis

       SWOT analysis is used to evaluate the strengths, weaknesses, opportunities, and threats of the company. An effective SWOT can help the manager in providing necessary strategies to improve the profit of the company. It is also used in decision-making process or pre-crisis planning and preventive crisis management.

• Strengths are the internal factors that are helpful to achieve organizations’ goals.
• Weaknesses are the internal factors that are harmful to achieve their goals.
• Opportunities are external conditions that are helpful to achieve their

  objective. Opportunities can be classified according to their attractiveness and

  their success probability.

• Threats are challenges posed by an unfavorable external trend or development

  that could do damage to their business’s performances. Threats should be

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  classified according to seriousness and probability of occurrence. Minor

  threats can be ignored; somewhat more serious threats must be carefully monitored.

       Realizing the SWOT importance, Fullerton Hotel also made it to develop their specific goals continuously.

Strengths:

       Fullerton Hotel has a strong reputation over the world based on its long-term history and classical architecture. Besides that, Fullerton Hotel has a convenient and strategic location. It is very close to Esplanade, Business and Finance Centre, also opposite with the riverside entertainment. Additionally, Fullerton is an available choice for guests who have higher standards. It provides luxurious rooms, comfort facilities, delicious restaurant, many activities for entertainment and leisure, special stylish Post Bar. Moreover, Fullerton is a King of service. It supplies the perfect service to its guests like a king with genuine, polite and loyalty staffs to ensure they are in a good moods.

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Weakness:

       Because Fullerton focus on business guests market that is the high level, the price therefore can not suit with others who want to enjoy. Besides, the hotel services sometimes do not make up the guests satisfactions. The food is cold in some cases, the table service is slow and internet fee is expensive as well. Those can not create the memorable experiences in guests mind for a long time.

Opportunities:

       Singapore Tourism Board launches S$90 million Boost Campaign to support tourism, healthcare and education sectors. This development of Singapore tourist industry will creates more chances for Fullerton to expand its guest population. Besides, Fullerton Hotel was ranked the top and got an award for luxury hotel in Singapore in 2007. Otherwise, Fullerton Hotel focuses on business travelers. Thus, business events in developing tourism period are the opportunities to attract more guests.

Threats:

       International famous and domestic hotels open their branch in Singapore more than before such as Scarlet, Golden Landmark, Carlton, Hotel Inter-Continental Singapore, etc. Moreover, these hotels also have their reputations for long time, so it makes the more critical competition in tourist market. Therefore, the understanding quality of hotel is the key factor.

       The economic downturn seems to be the reason for the decrease in private traveling abroad due to money is the problem for spending abroad. Hence, attracting international guests to travel is more difficult. Moreover, it has created a limitation to operate world business meeting or reference abroad.

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