1. Marketing Mix – Please identify how the hotel addresses each marketing tool.a. Producti. Core productii. Facilitating productiii. Supporting product b. Pricing Strategiesc. Place aka Distribution Channels (Hint: consider grass roots or non-professional channels for your answers)d. Promotional Mix (What promotional tools does the hotel implement?)2. Market Segmentsa. What 3 market segments does the hotel pursue? Provide a brief description of each market segment.b. Based on your knowledge of positioning, write 1 positioning statement for each market segment that could be used in the hotel’s communication messages.i. ii.iii.3. Based on your understanding of Derived Demand, which of the two market segments hotel stays might be impacted? Why?4. What recommendations would you offer to Ryan to:a. Increase occupancyb. Improve REVPARc. Improve operations
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Apollo Hotel (100 points)
Case Study Analysis
After just 10 months of operation, Ryan Sawyer was proud of what he had
accomplished managing the Apollo Hotel, but he knew that much work remained.
The Apollo was owned by the Williams Cosmetic Company and was located in
Kentucky. The hotel had originally been built to serve as housing for students who
attended the Williams Cosmetology School and was converted to an eighty-two-room hotel
in September 2002 to serve the general public.
In addition to the hotel, the complex contained a manufacturing plant for personal
care products and the corporate headquarters of The Williams Cosmetic Company.
The Williams Cosmetic Company discontinued the operation of a cosmetology
school and decided to concentrate on the manufacture and sale of cosmetics. The hotel was
opened to use the existing building.
When the hotel opened, there were very few guests, almost no staff, and a limited
budget. The hotel had no brochures, Web site, or even a listing in the yellow pages.
Although Ryan had no previous hospitality industry experience, he was told to build the
business and turn it into a profitable operation.
Ryan held a bachelor’s degree in economics/business management from Colorado
State University. He had worked with a large regional bank and with JCPenney Company.
Marketing Strategy
Ryan decided that the hotel should be marketed to a wide spectrum of guests. Over
the years Mr. and Mrs. Williams had met many people through their church and community
work. These contacts proved useful in promoting the hotel.
The Convention and Visitors’ Bureau also proved to be helpful and referred many
guests. Ryan contacted the Little League and secured contracts for teams to stay in the
hotel by offering free lodging to referees on a double occupancy per room basis.
To entice guests during the season, Ryan decided to offer three nights for the price
of two if guest would make reservations two months prior to arrival and pay in advance.
This proved to be moderately effective.
A large electric utility company was offered very good rates to encourage their
crews to stay at the hotel. This resulted in many nights of occupancy.
US Military personnel were also encouraged to stay at the hotel through very good
rates. Ryan believed that with only eighty-two rooms, the best opportunity to fill beds was
to contact organizations rather than attempt to market to individual travelers.
Apollo Hotel by Kotler, Bowen, & Maken (2014).
The hotel seemed to be gaining a reputation as “value lodging” and had experienced
58 percent occupancy on average for the last four months.
Ryan observed that the company’s cosmetic items were not used or sold in the hotel
even through they were manufactured on the grounds. This was corrected by placing
Williams amenity products in the rooms and opening a gift shop in the hotel, which sold the
company’s personal care products as well as other traditional gift shop items.
Personnel
As a small, privately owned hotel not operating as a flag property, the management
of Apollo could explore different operational strategies. As an example, front-desk
employees were paid a commission on business that they brought to the hotel. This
encouraged them to “sell” the hotel to their friends and to organizations they knew such as
churches, schools, and clubs. Ryan said that with commissions, front-desk employees
average more income than their counterparts in other area hotels.
Ryan believed that his primary responsibility was to “keep the lights on” by
marketing the hotel and that operational decisions should be left to those responsible for
the operational areas. He held the belief that most people who desired personal growth
and responsibility could learn the operational tasks and would b find ways to do the job
better without top-down micromanagement. He also believed that all employees should be
crossed-trained and willing temporarily to accept responsibilities outside the primary
department. The maintenance man had once been asked to war a suite and serve as
bellboy during a heavy occupancy period. This seemed to work well.
All new employees were expected to learn how to clean rooms and make beds so
they could help with that important are in crunch times. The number-one criterion for
employment with Apollo was, “Are you willing to learn and willing to work?”
Employees were also expected constantly improve their professionalism. When
management needed decisions, department heads were expected to type up their proposal
and present it in a professional manner. This forced the department heads to think
through the proposal, take it seriously, and be prepared to defend it.
Openness to New Ideas
Ryan said he was open to new ideas from employees and others concerning ways to
improve occupancy and operations in the hotel.
Apollo Hotel by Kotler, Bowen, & Maken (2014).
Case Analysis Questions
Hotel Analysis
Please answer the following questions based on the information in the case study, please be
sure to use complete sentences.
1. Marketing Mix – Please identify how the hotel addresses each marketing tool.
a. Product
i.
Core product
ii.
Facilitating product
iii.
Supporting product
b. Pricing Strategies
c. Place aka Distribution Channels (Hint: consider grass roots or non-professional
channels for your answers)
d. Promotional Mix (What promotional tools does the hotel implement?)
2. Market Segments
a. What 3 market segments does the hotel pursue? Provide a brief description of
each market segment.
b. Based on your knowledge of positioning, write 1 positioning statement for each
market segment that could be used in the hotel’s communication messages.
i.
ii.
iii.
3. Based on your understanding of Derived Demand, which of the two market
segments hotel stays might be impacted? Why?
4. What recommendations would you offer to Ryan to:
a. Increase occupancy
b. Improve REVPAR
c. Improve operations
Apollo Hotel by Kotler, Bowen, & Maken (2014).

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