Market Segmentation
Discuss about the Generic Target Marketing Strategies.
The paper talks about the marketing concept that is required to be considered by the company for their products and services. The marketing concept is the philosophy that the company should evaluate the needs of the customers and the decisions formed by them to satisfy the customers. The company on which the case study is based is Crown Resorts which is one of the recognized companies who is performing its operations in the hospitality industry. The paper includes the different concepts of the marketing like market segmentation, target market and the marketing mix of the new product of the Crown resorts for its new product. In simple words, the segmentation includes the customer to whom a company is looking to offer new product and who all are the targeted customers. Along with this, it includes the marketing mix strategy which shows a product, pricing, place and the promotion of the new product.
The organization has recently introduced the facility of the new 1,500-seat Crown Ballroom. This Ballroom is newest and the most prestigious event space that the company offers to its customers. Crown resorts are one of Australia’s largest entertainment groups with the core businesses and investment in the integrated resorts sector. The company owns and operate 2 Australia’s leading integrated resorts which include the Crown Perth and Crown Melbourne Entertainment Complex (Crown Resorts, 2018).
The segmentation of the market is the process in which the organization divides broad customers into the sub-groups of the consumers. These customers include both potential and existing customers of the company (Chernev, 2018). Crown resort makes use of the segmentation marketing theory to integrate it with the new product of the company. There are 4 types of market segmentation which are generally used by the company. These types of segmentation are discussed below: –
Demographic segmentation: – This segmentation divides the customers of the company on the basis of the family, size, income, occupation, religion and many other variables. Crown resorts segment the customers who belong to the different age groups like 18-25, 25-40, and 40+ with the high-income group. The customers of the company can be bachelors, family, and singles. Most of the customer are businessmen, professional, and tourist who visit Australia.
Behavioral segmentation: – This market segment splits the customers on the basis of their behavior, usage and the decision-making pattern of the customers (Grant, 2016). Crown resort customers want the space where they can organize the event. The decision can be taken by the customers for organizing the events, marriage and corporate parties and meetings in the ballroom. Therefore, the company segments on the basis of behavior towards the ballroom.
Target Market
Psychographic segmentation: – This segmentation includes the people who are conscious of their lifestyle and the social status. Crown Resorts is attracting the customers who believe in lifestyle and the social status because of effective popularity and status of the resort. The company is one of the 5-star resorts who offer the premium accommodation facilities to their customers.
Geographic segmentation: – This is one of the major segmentation of the company which includes the region is the area where the company is looking to offer its services to the customers (Hollensen, 2015). Crown Resort Company has initiated this product in the market of Australia. Therefore, the company offers this service in their one of resorts that are available in Perth region of Australia. The customers to whom the company will consider in the segmentation belong to the market of Australia only.
The segmentation has been done by the company so that they can decide their target market. A target market is the marketing concept that defines the group of customers to whom the company will offer its services on the priority basis. According to the research the targeting includes primary target market and secondary target market (Kotler, 2015). Crown resorts make use of the differentiated marketing strategy in which the resort decided to target different segments (Chand, 2018).
The primary target market of the company is the customers who fall under the age group of 18-25. The company believes in offering the services to the high-income group customers. Along with this, the company primary target is the customers who believe that consuming the services of Crown Resort will add to their status. In addition, the company focuses on the customers who treat it as their lifestyles because there are many businesses who need the places like ballroom where they can arrange the business events and meetings.
The value proposition is the marketing statement that is used by the organization with the help of which they provide the summary of the use of the products and services to the customers. This statement convinces customers for the product or services that the company offer and this will add value to solve the problem of the similar offerings that are available in the market (Crown Resorts, 2018). It is very important to expend the required time and efforts to craft a compelling value proposition. It is essential because it forms the base for the company’s sales, marketing, and the product development efforts. All these aspects reflects that value proposition plays a vital role for every company.
Value Proposition
Crown Resorts make use of the value proposition as this is the way through which the company can attract the customers for their new product that is 1500 seat crown ballroom (True North, 2018). The value proposition statement is important for the company because the company can make them aware about the USP of the products that is a luxurious place with magnificent custom designed carpets, high ceilings, elegant cream paneling and superbly appointed crystal chandeliers (Crown Resorts, 2018). This marketing concept integrates with the new product of Crown resort to attract the customers for purchasing the product. The value proposition statement for the Crown resort new product is most prestigious event space that offers the place as you want it with a great view of Perth landscapes. Along with this, the values to the guests are also welcomed in the dramatic foyer before entering the main ballroom for an extravagant banquet or stylish cocktail reception (Crown, 2018).
Perceptual positioning is the position of the company or its products and service in the mind of the customers (Moutinho and Vargas-Sanchez, 2018). Crown Resorts and its products are highly appraised by the people of Australia due to which they are able to make highly recognized space in the mind of the customers. The positioning of the new product of the company is in the quadrant which reflects the high-quality services with the high prices. This is the fact that the services and the product of the company are high in prices but the resort always ensures that they are providing the delight experience to their targeted customers (Crown Resorts, 2018). Moreover, there are different competitors like Hilton hotel, Hyatt hotel, and many others but the spacious and well organize ballroom service is only provided by the Crown resorts which enhance the position of the company in the market.
Marketing mix refers to as the set of the marketing tools that are used by the firm to accomplish it marketing objective (Marketing Mix, 2018). Crown resorts also make use of this marketing theory in deciding the strategies related to the product, price, place and promotion strategies of the company for their new ballroom.
Product element: – Product is one of the major elements of the marketing mix that reflects a product is an item that is produced to satisfy the needs of the targeted group. This product can be in the form of the intangible or tangible which means that it can be in the form of the services or goods of the company (Bhasin, 2018). Crown resorts new product is the crown ballroom which is the Perth’s newest and the most prestigious event space where the best facility a customer can get.
Perceptual Positioning
The specialty of the ballroom is the pillarless ballroom with its magnificent custom designed carpets, high ceilings, elegant cream paneling and superbly appointed crystal chandeliers (Crown, 2018). In addition, this ballroom suits the needs of all types of customers because it is the most technologically advanced. The customers can make use of the entire space being it gala event for 1500 people or the luxurious wedding plan and others. Moreover, it includes the adjoining pre-function area with the spacious terrace and the views over all the Perth Landscape that can’t be missed by any person (Crown Perth, 2018).
Price element: – The price of the product is the amount that the customers like to pay for the product that satisfies his needs. Crown Resorts is considered as one of the 5 stars resorts which means it is the one of the luxuries resort due to which the pricing of the services is high for any of the product. Therefore, the pricing strategy that is used by the Crown resorts generally makes use of the premium pricing strategy in which they set high cost than their competitors (Maguire, 2018). The prices that the company will keep for the ballroom is high because there is no as such luxury event place are available in the market. Moreover, the company is willing to keep this price because they are aware that the service they are offering is equal to the high price that they are asking from the customers.
Place element: – Place is one of the important elements of the marketing mix strategies which show the distribution strategy that is implemented by the company to make the products available to the customers (Rushton, Croucher and Baker, 2014). The place, in this case, is the Perth resort of the Crown resort where the ballroom is situated which means the end users have to visit the place if they want to make use of the service that is offered by Crown resorts. The ballroom is multipurpose that boasts a pillarless design and the lighting systems which is adopted by the company to suit any style and type of celebration (Crown, 2018).
Promotion element: – Promotion in the marketing mix strategy is every essential concept to integrate with their business because it includes the tools that can be used by the company to boost the brand recognition and sales (Wilson and Gilligan, 2012). In simple words, it can be said that this marketing concept includes the ways through which the organization can generate the awareness in the market. Crown resort can make use of different types of advertisement to promote the products in the market. The below given are the ways that can be used to promote products.
Marketing Mix
Advertisement: – Company can promote its new service of the ballroom through print media or commercial. These both options are the best options that can be considered by the company while promoting it. Moreover, out of this TV commercial advertisement is the most suitable one for the company (Lancaster and Massingham, 2010). Crown resort can easily present their Grand Ballroom with warm gold and cream tones, ornate chandeliers, and high ceilings. This will grab the attention of the targeted customers.
Digital marketing: – Company can also make use of the digital marketing tool to promote the products in which they can make use of online advertisement and the use of the social media channels to generate the awareness in the market. Considering the fact that most of the targeted customers prefer online sources to check the available options on the internet and they prefer booking through online mode only (Wilson and Gilligan, 2012). The most common channels that are generally used by the company for checking the service review include Facebook, Twitter, Instagram, and YouTube. Therefore, this marketing tool will promote the ballroom service effectively.
In the end, it can be concluded that the Crown Resorts is putting efforts to form the good market in Australia. The new ballroom that is introduced by the resort provides an innovative option to the customers which will enhance the customer satisfaction. Crown Resorts segmentation include the different group of customers to whom the company is willing to provide the services. The company gives value to each and every customer due to which they make use of the differentiation targeting strategy in which they can target the multiple customers at a time. Along with this, the marketing mix strategy of the company for its new ballroom reflect the numerous strategy that the company makes use to promote the products.
References
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Chernev, A. (2018) Strategic marketing management. Chicago:Cerebellum Press.
Crown (2018) Grand Ballroom [Online]. Available from: https://www.crownperth.com.au/events-conferences/function-venues/grand-ballroom [Accessed on 27th May 2018]
Crown Perth (2018) Function Rooms & Venue Hire [Online]. Available from: https://www.crownperth.com.au/events-conferences/function-venues [Accessed on 27th May 2018]
Crown Resorts (2018) About us [Online]. Available from: https://www.crownresorts.com.au/about-us/crown [Accessed on 27th May 2018]
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Moutinho, L. and Vargas-Sanchez, A. eds. (2018) Strategic Management in Tourism, CABI Tourism Texts. Cabi.
Rushton, A., Croucher, P. and Baker, P. (2014). The handbook of logistics and distribution management: Understanding the supply chain. Kogan Page Publishers.
True North (2018) Crown towers Perth takes centre stage in high-end Australian tourism market [Online]. Available from: https://www.truenorth.com.au/crown-towers-perth-takes-centre-stage-in-high-end-australian-tourism-market/ [Accessed on 27th May 2018]
Wilson, R.M. and Gilligan, C. (2012). Strategic marketing management. New York: Routledge.
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