Resort Management Written Report Assignment 2010

The Importance of Creating BrandRecognition in Resort Industry

Ardy Tristianto Diploma in International Hotel and Tourism Management

THE IMPORTANCE OF CREATING BRAND RECOGNITION IN RESORT INDUSTRY

Table of Contents
Cover Page Table of Contents ................................ ................................ ................................ .. 1 Introduction ................................ ................................ ................................ .......... 2 Brand and Consumer s Buying Decision ................................ ................................ ... 2 Brand as a Differentiation Tool and Value Escalation ................................ ................. 3 Minimizing Risk through Brand s Reputation ................................ ............................. 3 Concept of Brand Partnership ................................ ................................ ................. 4 Conclusion ................................ ................................ ................................ ............ 5 References................................ ................................ ................................ ............ 6

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industry, creating strong brand recognition is fundamental because a brand portrays the image and the level of service being provided by the company

brand is also used as a

measurement of the expectation built by the consumer.Moreover, a strong brand acts as an identity to differentiate one company to the other in the market (Murphy 2008). This paper analyses the importance of establishing a powerful brandin hospitality industry, specifically in resort businesses.

brands are powerful assets that must be carefully developed and managed. (Kotler et al. 2010, p. 239). From that assertion, it can be defined that a brand is indispensable for a product, acting as a trademark and communication tool that will be used to affect the consumer s preference and decision when buying a product.

Recommendation

Preference

The Brand-Customer Relationship Diagram (George 2003).

From the diagram above, the first and the most important phase is creating brand awareness. In resort industry, service quality is the key to differentiate one brand to the other. In the second and third phase, consumer will assess the value on which brand can fulfil their expectations. Subsequently, as they feel comfortable with one particular brand,

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ATING BRAND REC GNITION IN RESORT INDUSTRY

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THE IMPORTANCE OF CREATING BRAND RECOGNITION IN RESORT INDUSTRY

it will establish a preference and loyaltytowards that brand. Finally the company can benefit further as the loyal customer tends to promote the brand to the others who eventually will experience the cycle as well.

Relationship is personified either by the organization s name or by the brand name on the product itself. (deChernatony and McDonald 2003 p. 12). This statement suggests thatthere is a correlation between the service provider and consumer that is built by generating the awareness towards the brand.This results in either positive or negative assumption being visualized by the consumer on a certain product. Brand functions to

comprehensive understanding of the competitors and current market condition are crucially required (George 2003).For example the Marina Bay Sands Resort in

integrated resort company in the world (Las Vegas Sands Corp. 2010). Marina Bay Sands position themselves as the most expensive integrated resort with one of the biggest casino and convention centre in the world. In differentiating themselves with other integrated resorts also with their own franchisees they promote the integration of premium luxurious service gaming and entertainment with first class business facilities. This concept makes Marina Bay Sands as the biggest breakthrough in Asian resorts industry that upraises the consumer s acknowledgment towards that particular brand (Schneider 2010).

Moreover creating strong brand recognition also adds non functional benefits towards the products (Elliot and Percy 2007). It can alter the consumer s perception regarding the market of a certain product. By adding extra value through its uniqueness level of quality or simply by its prestige consumer is more likely to choose that particular brand. For instance a family prefer to use the service of a more expensive but well known hotel brand for their holiday than its competitors that offer cheaper rate.This may be due totheirpast experience and theimage of the hotel in the market which focuses on the functionality of the hotel itself in delivering their service to the customers.

Minimizing Risk through Brand s Reputation The success of a brand is measured by its reputation in the market. In hospitality industry service is the main selling point. Thus the reputation of a brand is essential in reassuring consumer to purchase their service. Since the visualization of the brand is only
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Brand as a

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THE IMPORTANCE OF CREATING BRAND RECOGNITION IN RESORT INDUSTRY

through experience a loyalty or an aversion towards that particular brand may develop based on the consumer s past experience. In addition this is strongly related to the consumer s attempt in minimizing the risk of their purchase ranging not only from the financial risk but also other risks in terms of psychological aspect time and functional purpose of that purchase (de Chernatony and McDonald 2003). Any consumer will expect to gain a value equal to what they have invested. In this case the sense of security that consumer can feel in choosing a particular brand can be evaluated by looking at the gap between the benefits that can be gained and the loss they could possibly suffered.

From the service provider point of view maintaining a positive image of the brand and applying preventive measurement towards situation that could harm their brand areobligatory. This required an effective risk management throughout the brand developing process. One example is the J.W. Marriott Hotel Jakarta. J.W. Marriott had suffered a devastating damage on their brand not only once but twice in 2003 and 2009 due to the terrorism acts. After the 2003 bombing J.W. Marriott managed to re establish their brand through enhancement in security and known as the most secure hotel in Jakarta since then (Wright 2009). However in 2009 it happened again. This time the impact was even worse as there were several Marriott branded hotels in Asia that also being attacked in a short period of time (Ibid).This seriously obliterates their image as it was practically a repetition of what happened before. Various procedures in improving the security have been taken since then. However their reputation has recovered just yet. This example shows how important it is to maintain positive brand recognition and to choose an extensive yet efficient approach in handling every situation that could harm it.

Concept of Brand Partnership One profitable approach in developing a brand is through partnership or what so called the co branding. Jean Noël Kapferer (2008) emphasises Co branding is necessary to increase the chances of success for a brand s extension beyond its original market . This statement explains that the integration between two brands or more is intentionally exalting the awareness toward the brand and at the same time expanding their market using its appeal which creates a new criterion of those brands. For instance is the

they opened the first Armani Hotel and Resort in the tallest building in the world the BurjKhalifa Dubai (Emaar Properties PJSC 2010). Using the popularity of BurjKhalifa as the tallest building in the world and the growing tourism development in Dubai integrate

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partnership between Giorgio Armani S.p.A. and Emaar Properties PJSC. In June 2010

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THE IMPORTANCE OF CREATING BRAND RECOGNITION IN RESORT INDUSTRY

with the legendary name of the Italian fashion brand Armani this resort rapidlycaptivate the world s attention and results in a new perception towards those brands.

Conclusion In conclusion creating brand recognition is vital as it providesbenefits in increasing and expanding the business of a resort in terms of profitability and market share .It can communicate the quality of serviceoffered to the consumer through their image and reputation as well as differentiating themselves from the other competitors. However a thorough understanding of the industry and its market condition effective riskand marketing management and consistency in delivering the best service to the consumerare unquestionably required.

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THE IMPORTANCE OF CREATING BRAND RECOGNITION IN RESORT INDUSTRY

References
deChernatony L. and McDonald M. 2003. Creating Powerful Brands. 3rd ed. Oxford: Butterworth Heinemann.

Elliot R. H. and Percy L. 2007. Strategic Brand Management.[online book] New York: Oxford University Inc. Available from: http://books.google.com/books?id=RikP8IqJlUUC [Accessed November 20 2010].

Emaar Properties PJSC. 2010. World s First Armani Hotel Unveiled in BurjKhalifa Dubai. [online] Available from: http://www.emaar.com [Accessed November 21 2010]

Value.[online] Available from: http://www.prophet.com[Accessed November 20 2010].

Kapferer J.N. 2008. The New Strategic Brand Management: Creating and Sustaining Brand Eq ty Long Term. 4th ed.[online book] London: Kogan Page Limited. Available from: http://books.google.ch/books?id=8PoItiB7bicC [Accessed November 22 2010]. Kotler P. Bowen J.T. and Makens J.C. 2010. Marketing for Hospitality and Tourism. 5th ed. New Jersey: Pearson Education Inc.

Las Vegas Sands Corp. 2010.Las Vegas Sands: Corporate Overview. [online] Available from: http://www.lasvegassands.com [Accessed November 20 2010].

Murphy P. 2008. The Business of Resort Management. Oxford: Butterworth Heinemann.

Schneider K. 2010. First Review of Mega Hotel the Marina Bay Sands. [online] Available from: http://www.news.com.au/travel [Accessed November 20 2010].

Wright T. 2009. Deadly Blasts Rock Jakarta Hotels. [online] Available from: http://online.wsj.com [Accessed November 21 2010].

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George R. 2003. Understanding Your Brand

Aligning Brand Eq ty to Drive Business

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