HOSPITALITY MANAGEMENT

Overview of the hotel

Palazzo Versace is a luxury hotel that is located near Southport Broadwater in Main Beach, and Marina Mirage shopping centre at Southport Spit on the Gold Coast, Australia (Palazzoversace.com.au 2021). It has been observed that the favourable location of the hotel, near the beach and the shopping centre has significantly supported the business in attracting the attention of tourist from all around the world. the hotel was inaugurated in the year 2000 and has developed different amenities in order to address the needs and requirements of the customers (Palazzoversace.com.au 2021).

Kim and Kim (2018) stated that quality of services is an important aspect that might be considered with the purpose of ensuring the profitability and growth of a service delivery based organization. In this connection, the managers and the employees in the hotel has taken the initiative of improving the quality of their service offerings in order to address the shifting needs and requirements of the visitors. Moreover, the hotel is also focused towards providing a vivid experience to the travellers and their clients, which might be considered as an attempt of winning over the trust and commitment of the same. Therefore, it might be stated that the proposition of quality proposition with continuous innovation in the list of products and services has supported the business in increasing the growth prospects and retaining the commitment or loyalty of the clients or the visitors.

Target audience

The identification of the target audience supports an organization in improving their positioning strategies. Lim, Jee and De Run (2020) stated that clear cognition on the target audience assists a business in developing a clear idea on the beliefs, values and buying behaviour of the customers which empowers the capability of influencing and persuading to make successful sales. Therefore, in this connection, the section would identify the target audience of Palazzo Versace in order to develop a coherent understanding on the expectations and values that has been leading the decisions of the customers. Palazzo Versace offers premium hospitality services to the clients.

The primary target audience of the organization are the travellers and visitors from all around the world, within the age range of 34- 50 years and belongs to the upper income groups. The primary target audience are well educated and are professionals in their respective careers or businesses and are mostly inclined towards making experience based hotel stays. The customers of the concerned organization are mostly inclined towards the exclusive staff behaviour, ambience, the experience of unique service propositions, and a personalized or customized service delivery process. Terech (2018) stated that the identification of the needs and expectations of the customers supports a business in developing and positioning offerings in order to influence sales. The proposition of premium quality hospitality services by the organization are thereby mostly directed towards meeting the expectations and needs of the customers who are willing to spend a quality time and thereby have a better experience.

On the other hands, the secondary target audience of the organization are the business executives and the leaders from the different other businesses. The chosen organization provides large hall rooms for the conduction of convocations, meetings and seminars along with suites for the stays. Therefore, the business leaders and executives from large businesses might be considered as the secondary target audience of the organization. The identification of the target audiences for the business has thereby supported in conducting an assessment of the success and growth related factors.

Overview of the brand and brand positioning in relation to its competitors

The brand offers a premium range of hospitality services that are customer oriented in nature. The brand was established with the purpose of providing the visitors and tourists with a luxury experience and an ambience of Versace. The vision of the brands is to develop and establish their market position as the world’s most efficient quality service provider. It has been observed that Palazzo Versace is one of the world’s fashion-branded hotel, which was established with the objective of combining design and sprit of Versace with a highly luxurious hotel concept (Palazzoversace.com.au 2021).

The organization is branded as a “destination within a destination” as it focuses towards providing the visitors with an ambience and a range of hospitality services for a complimentary Versace dream (Palazzoversace.com.au 2021). The quality of the service propositions has been most extensively contributing towards the development and growth of the brand in the Australian markets. The development of the brand as a fashion luxury hotel has not only attracted the attention of customers who are inclined towards receiving premium services but also created a sense of quality service and ambience of Versace that the hotel’s management board aimed at promoting.

The brand is positioned as a premium service delivery business while competing with the existing firms in the region. The brand charges slightly higher costs than that of the competing forces in the same markets. On the other hand, it has been observed that the hotel proposes a variety of quality hospitality services which supported the business in gaining a competitive edge over the other business players in Australia.

Aras et al. (2017) stated that positioning an organization or a brand as premium aims towards exploring the high cost of the propositions and improved quality of the offerings. In this connection, Palazzo Versace is positioned as a premium hotel brand as it provides with premium quality services, experience and ambience to the customers while charging a bit higher than that of the other luxury hotel chains in the markets. Therefore, the identification of the brand positioning criteria supports in developing clear cognition on the brand and its offerings.

The marketing mix of the of the business

Place: The place is an integral element in the marketing mix of a brand as it supports in identifying the locations where the offerings are made available by an organization. Camilleri (2018) stated that the increased availability of the offerings in different locations increases the scope of businesses to ensure an improvement in the sales volume. In this connection, it has been observed that the brand being a hotel has made their services available in the close vicinities of the hotel itself. The services are developed and provided in the same location as that of the location of the concerned business. Therefore, the identification of the place where the services are made available by the concerned organization is capable of contributing towards the increase in their sales volume while operating as per the strategic goals.

Price: The price of the service propositions that are offered by the organization are skimming pricing. According to Garachkovska et al. (2021), the skimming pricing strategy of an organization focuses towards attracting a higher price for the offerings made by a business than the cost of offerings made by the competing forces. It has been observed that the organization is focused towards providing the customers, tourists or visitors with an extensive premium experience for which an increased price of propositions is necessary to address the costs of operations. It was witnessed that the identification of the pricing strategy or the price of the offerings that are offered by businesses helps in calculating the annual sales and profitability over expenses. Therefore, the identification of the pricing strategy allows an organization in developing a coherent and comprehensive growth prospect in the global competitive markets.

Promotion: Promotions is an integral part of the marketing mix of any organization. Lahtinen, Dietrich and Rundle-Thiele (2020) stated that businesses promote with the purpose of reaching out to their target audience and make the same aware of the distinguished offerings. Moreover, Terech (2018) opined that promotions assists businesses in influencing the buying behaviour of the customers while developing their sales prospects. In this connection, the concerned brand has taken the initiative of utilizing a range of media vehicles and platforms in order to develop a distinguished awareness among the minds of the consumers and thereby influencing their buying behaviour at the same time. The organization’s website is integrated with different digital and social media platforms through which the business successfully creates awareness on the type of propositions. Moreover, it has been observed that the organization holds adverts in Trivago, Booking.com and TripAdvisor related sites in order to make the customers aware of the different areas of operations and offerings (Palazzoversace.com.au 2021). The use of wider range of media vehicles supports the business in gaining a competitive edge over the existing market players. Therefore, the utilization of a wider range of promotional vehicles and devices has supported the business in attracting and retaining the attention of the tourists and business executives from all around the world, while increasing their sales.

Services: The organization offers an extensive range of hospitality services, while addressing the shifting preferences and needs of the visitors. It has been observed that the business offers customizable or personalization related offers on the services in order to improve the experience of the visitors or tourists. The good service quality, efficient behaviour of the staffs and the ambience of the hotel has largely contributed towards its growth over the competing forces in Australian markets.

References

Aras, M., Syam, H., Jasruddin, J., Akib, H. and Haris, H., 2017, July. The effect of service marketing mix on consumer decision making. In International Conference on Education, Science, Art and Technology (pp. 108-112).

Camilleri, M.A., 2018. Market segmentation, targeting and positioning. In Travel marketing, tourism economics and the airline product (pp. 69-83). Springer, Cham.

Garachkovska, O., Sytnyk, O., Fayvishenko, D., Taranskiy, I., Afanasieva, O. and Prosianyk, O., 2021. Strategic Management of Brand Positioning in the Market.

Kim, M.S. and Kim, J., 2018. Linking marketing mix elements to passion-driven behavior toward a brand. International Journal of Contemporary Hospitality Management.

Lahtinen, V., Dietrich, T. and Rundle-Thiele, S., 2020. Long live the marketing mix. Testing the effectiveness of the commercial marketing mix in a social marketing context. Journal of Social Marketing.

Lim, W.M., Jee, T.W. and De Run, E.C., 2020. Strategic brand management for higher education institutions with graduate degree programs: empirical insights from the higher education marketing mix. Journal of Strategic Marketing, 28(3), pp.225-245.

Palazzoversace.com.au, 2021. Gold Coast Luxurious 5-Star Hotel | Palazzo Versace Gold Coast. [online] Palazzoversace.com.au. Available at: [Accessed 22 April 2021].

Terech, A., 2018. An introduction to marketing and branding. Generations, 42(1), pp.45-49.

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