Marketing Case Study for Radisson

Topics: Marketing, Hotel, Carlson Companies Pages: 11 (3171 words) Published: March 15, 2011
Radisson Hotels & Resorts is one of the leading, full-service global hotel companies with over 420 locations in 73 countries.  They are passionate about “Yes I Can!” service philosophy which empowers employees to make sure that they are completely satisfied during the stay. With locations worldwide, Radisson has accommodations for every kind of need. From hosting small meetings, to orchestrating large group events, they take pride on developing mutually rewarding relationships with their meeting planners and delivering a consistently satisfying experience. Each Radisson has a number of trademarked guest programs, services, and facilities that range from loyalty programs to wireless internet access. The Radisson’s current slogan is “Stay Your Own Way.” &

1.Market orientation
By adopting a market orientation, Radisson has committed itself to satisfying its customers' needs over the long run. Although profitability, market share, return on investment, and other performance benchmarks ultimately determine the success of any strategy, a market orientation is meant to achieve such goals by providing customers with superior value on a sustained basis. Radisson’s market orientation comprises of three main components: • Customer orientation: the hotel focuses on acquisition, satisfaction, and retention of customers. • Competitor orientation: the hotel follows this to achieve cost advantages for a firm as it gathers information on its competitors' business practices, enabling it to reduce costs through adjustments to its value chain. • Interfunctional coordination: Radisson orients employees in all departments of a business unit toward understanding the firm's market in terms of both customers and competitors. Customer orientation over competitor orientation:

Hotels are challenged in developing economies to offer lowest cost to customers. This would seem to recommend a competitor orientation so as to achieve a cost advantage in developing countries. By contrast, developed countries typically feature highly segmented customers with differentiated needs and satisfactions as well as a greater number and variety of competitors. Here Radisson’s follow a customer orientation Therefore a less developed an economy is, the effect of a competitor orientation is followed. Competitor orientation over customer orientation:

When resources are difficult to get because of local constraints and dependencies. Radisson seems to recommend fostering a competitor orientation, because information about a firm's competitors helps to understand how other firms identifies resources and procurement .By contrast, there would seem to be less value in developing a customer orientation in such a market, because without access to critical resources, customer information is of little use. Thus, under these conditions, a competitor orientation is given preference over customer orientation. There are a few principles on which Radisson works:

• The more demanding the customers, the stronger should be the effect of a customer orientation on hotel’s performance. Conversely, the less demanding the customers, the weaker should be the effect of a competitor orientation on its performance • Radisson takes care of Interaction between good local business conditions and a customer orientation, as competitor orientation is less effective when local business conditions are good. • Customer demand is addressed most effectively with a customer orientation. Interaction between a customer orientation and high customer demanding ness is shown to be positive and significant in case of Radisson. Radisson, Carlson Hotels Worldwide flagship brand with more than 430 properties globally, had market share and strong awareness, but had to face declining revenues and reputation. But focus on franchisees and...
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