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IMC Plan – Ace Hotel
MKX9261 – Integrated Marketing Communications
David Robert Fintell Faizan Baig (Pakistan) Evens Hsiung (Taiwan) Andy Kim (Australia)
Bernice Gao Yupei (Singapore)
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Executive Summary
Ace Hotel, a boutique hotel chain based in the United States, has seen major success in recent years due to the company's unique business model of immersing guests in a cultural experience and social hub. Entering into the Australian market, Ace Hotel will open its first overseas location in the Melbourne CBD. Priced at on average $200AUD per night, Ace's Melbourne location will boast 120 uniquely designed rooms, with art pieces by local artists. External factors for Ace to take into consideration during expansion include, most significantly, a strong economy and growing push for domestic tourism, the prevalence of cultural events in Melbourne, and a city culture that relates to the Ace brand image and culture. As a boutique hotel, main category competitors are few but well established, though typically higher in price. Further important factors to combat include low brand awareness and infrequency of purchase; Ace's unique model addresses the latter by turning the hotel into a verifiable social hub, attracting locals to its onsite cafe and events. Communication objectives for Ace Hotel's IMC strategy in Australia over the next 12 months are as follows:
1. Build brand awareness to 30% of the national target market by using print, digital, and social mediums.
2. Build brand awareness to 70% of the Melbourne-based target market. This will be hastened through word of mouth generated by locals visiting the on-site café and events.
3. To maintain a constant frequency with 5% of the national target market, social media will be used on a weekly basis to reinforce brand awareness and interest.
4. To reach 75% of the national target market with at least three exposures, advertising in print and digital mediums will be used, specifically around the times of events such as the Melbourne Food and Wine Festival, local film festivals, Fringe Festival, and L’Oreal Melbourne Fashion Festival.
In order to reach Ace's target market of 'experiencer' culturally enthusiastic professionals, 25-35 years old, located in Australian capital cities, and with a university degree, Ace will implement a number of media strategies, including the use of: print media (newspapers: The Age, Sydney Morning Herald, The Sunday Mail, Herald Sun, and magazines: Acclaim, Scoop Traveller, Travel Talk, Virgin in-flight magazines), social media (Facebook, Twitter, Instagram, Pinterest, Vimeo and Youtube), and online advertisements (travel sites). This varied media mix will allow Ace Hotel to obtain synergy, with broad reach and constant frequency on different platforms, reinforcing brand awareness and influencing interest and opinion. Imagery evoked in advertisements will be detailed, glossy photos of the hotel rooms and of the hotel lobby, demonstrating Ace's social hub status in action. Social media, on the other hand, will focus primarily on photos of events and product collaborations, as well as unrelated information, photos and videos that may simply be of interest to the target market; this method plays a significant part in cementing Ace's role as a brand that can permeate the lives of hotel guests beyond the hotel stay. An initial budget of $1,495,747, or 25% of yearly projected revenue, will be necessary for initial brand building, but will be slashed to an estimated 5% in subsequent years with an emphasis on social media use. Monitoring effectiveness will involve primarily measuring receipt of promotional offers, benchmarking against US standards, and monitoring guest reviews and comments on networking sites.
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Table of Contents
EXECUTIVE SUMMARY ............................................................................................................................................... 2
1.0 DEFINITION & SCOPE .................................................................................................................................. 5
2.0 SITUATIONAL ANALYSIS ............................................................................................................................. 6 2.1 EXTERNAL ANALYSIS ............................................................................................................................................ 6 2.1.1 INDUSTRY OVERVIEW ......................................................................................................................................................... 6 2.1.2 MACRO ANALYSIS ................................................................................................................................................................ 6 2.1.3 MAJOR COMPETITORS ......................................................................................................................................................... 6 2.1.4 MARKET SEGMENTATION .................................................................................................................................................... 7 2.2 INTERNAL ANALYSIS ............................................................................................................................................ 7 2.2.1 CURRENT BRAND IMC STRATEGY ................................................................................................................................. 7 2.2.2 SWOT ANALYSIS ................................................................................................................................................................. 7 2.2.3 FIVE FORCES ANALYSIS ................................................................................................................................................. 8
3.0 TARGET MARKET/AUDIENCE ........................................................................................................................ 9
4.0 MARKETING & COMMUNICATIONS OBJECTIVES ............................................................................... 10 4.1 MARKETING OBJECTIVES .................................................................................................................................... 10 4.2 COMMUNICATIONS OBJECTIVES ......................................................................................................................... 10
5.0 IMC STRATEGY ................................................................................................................................................ 11 5.1 MEDIA MIX ........................................................................................................................................................... 11 5.2 TARGET MARKET COVERAGE ............................................................................................................................... 11 5.3 GEOGRAPHIC COVERAGE ...................................................................................................................................... 11 5.3 REACH & FREQUENCY .......................................................................................................................................... 11
6.0 CREATIVE STRATEGY ................................................................................................................................... 12 6.1 POSITIONING ....................................................................................................................................................... 12 6.2 POSITIONING STATEMENT .................................................................................................................................. 12 6.3 BRAND IMAGE ....................................................................................................................................................... 12 6.4 APPEALS, EXECUTION STYLE & TECHNIQUES .............................................................................................. 13
7.0 MEDIA STRATEGY .......................................................................................................................................... 14 7.1 PRINT MEDIA ....................................................................................................................................................... 14 7.1.1 NEWSPAPER ........................................................................................................................................................................... 14 7.1.2 MAGAZINES ........................................................................................................................................................................... 14 7.2 DIGITAL MEDIA ................................................................................................................................................... 14 7.2.1 GOOGLE ADWORD ................................................................................................................................................................ 15 7.2.2 WEBSITE LISTINGS/INTERMEDIARY SITES .......................................................................................................... 15 7.2.3 PAY PER CLICK ................................................................................................................................................................ 15 7.3 SOCIAL MEDIA ..................................................................................................................................................... 15 7.3.1 FACEBOOK, TWITTER, INSTAGRAM, PINTEREST ............................................................................................... 16 7.3.2 VIMEO & YOUTUBE ........................................................................................................................................................... 16 7.4 PR EFFORTS ........................................................................................................................................................ 16 7.4.1 PRESS RELEASES .............................................................................................................................................................. 16 7.4.2 TRAVEL BLOGGER INVITES .......................................................................................................................................... 17 7.4.3 EVENTS .................................................................................................................................................................................. 17
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8.0 BUDGET ............................................................................................................................................................... 18
9.0 MONITORING & EVALUATION ................................................................................................................... 19 9.1 PRE-TESTING ........................................................................................................................................................................... 19 9.2 MEASURING PRINT MEDIA PERFORMANCE ..................................................................................................................... 19 9.3 MEASURING SOCIAL MEDIA PERFORMANCE ................................................................................................................... 19 9.4 MEASURING DIGITAL MEDIA PERFORMANCE ................................................................................................................. 19 9.5 POST-TESTING ......................................................................................................................................................................... 19
10.0 CONCLUSION .................................................................................................................................................. 20
11.0 APPENDIX ....................................................................................................................................................... 21 11.1 PERCEPTUAL MAP .............................................................................................................................................. 21 11.2 SWOT ANALYSIS ............................................................................................................................................... 22 11.3 FIVE FORCES ANALYSIS ................................................................................................................................. 22 11.4 TARGET MARKET ................................................................................................................................................ 23 11.5 POSITIONING ..................................................................................................................................................... 23 11.6 BRAND IDENTITY PRISM ................................................................................................................................. 24 11.7 APPEALS, EXECUTION STYLE & TECHNIQUES ........................................................................................... 24 11.8 PROJECTED REVENUE ........................................................................................................................................ 25
12.0 BIBLIOGRAPHY ............................................................................................................................................. 26
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1.0 Definition & Scope
Ace Hotel is a boutique hotel brand based in the United States that has found much recent success providing a unique cultural experience to guests. As a new entrant into the Australian market, Ace’s major competitors include both standard hotels in Melbourne as well as established boutique hotels such as The Prince and The Cullen, located in the culturally popular areas of St. Kilda and Prahran. Ace Hotel’s main target market consists of cultural enthusiasts, specifically creative professionals, coming to Melbourne from other Australian capital cities. Ace Hotel differentiates its offering from competitors by providing a cultural experience that permeates into a greater lifestyle, evidenced by the use of local artists in the design process, on-site café, events held at the hotel, and multiple fashion and lifestyle product collaborations. As a hotel, Ace sells primarily through online bookings, achieved through both the company website and various travel and accommodation websites. Located in the Melbourne CBD and with approximately 120 rooms, the average room price at Ace Hotel Melbourne is roughly $200AUD. The relatively low number of rooms and median price allows Ace to maintain a degree of exclusivity whilst attracting a diverse spectrum of consumers.
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2.0 Situational Analysis
2.1 External Analysis
2.1.1 Industry Overview
Emerging from a difficult period following the GFC, the Australian hotel and resorts industry is in large part driven by domestic tourism and business travel, both of which are expected to continue expanding. Expected to continue experiencing a slight decline in revenues and in the mature industry stage, the hotel market is stable and only moderately dominated by the four largest players. Victoria is the third most visited state, behind NSW and Queensland. Key success factors, critical for Ace Hotel’s entry into the Australian market, include developing a loyal customer base, obtaining a central, high profile location, managing seasonality of visits, and having a clear, defined position in the market.
2.1.2 Macro Analysis
Relevant macro factors affecting Ace Hotel’s IMC strategy are as follows: Economic
• The Hotels and Resorts industry is emerging from a difficult five years in which revenue stagnated due to weakened demand from both the corporate and tourist segments.
• Revenue declined in 2008-09 and 2009-10 as the global financial crisis brought havoc on consumer sentiment and business confidence.
• For this reason, industry revenue is estimated to decline by an annualized 0.4% over the five years through 2012-13.
Technological
• Growth in m-marketing provides opportunity for hotel industry.
2.1.3 Major Competitors
The Cullen The Cullen has been recommended as a modern, creative and overall highly regarded boutique hotel in Melbourne. The Cullen also serves segments including, cultural enthusiasts, creative professionals and couples between 20-30 years of age.
• The Cullen have a firm focus on interior décor, design and service quality delivery run in line with Ace’s service offerings causing strong competition
• The Cullen’s location strategy have resulted in success and satisfaction due to relevance and convenience to consumer segments
Ovolo Hotel Melbourne The Ovolo Hotel is an independent hotel/serviced apartment operator that provides a strong reputation for service, comfort and aesthetic appeals. The Ovolo has target segments that are middle age working professionals and travel enthusiasts.
• Ovolo’s service focus strategy has resulted in high customer satisfaction reviews. The Prince The Prince hotel has gained reputation as a luxury boutique hotel, with strong emphasis on modern and stylish interior designs and an award-winning Circa Restaurant to cater various events. They have gained firm recognition as a vibrant and overall highly ranked as a boutique hotel. Modern décor, on-going events and an in-house restaurant have suggested that ‘The Prince’ has segments targeting young adults (primarily 20-30) and cultural enthusiasts.
• The Prince serve as Ace’s core competitor in Melbourne due to the their target market segmentation strategy
• The Prince have brand image strategies that sell lifestyle which once again run into direct competition to Ace’s imaging strategy
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A summarized picture of the hotel market in Melbourne as related to Ace Hotel’s competition is found in Appendix 12.1 Perceptual Map.
2.1.4 Market Segmentation
As Ace Hotel is a hotel that attracts visitors of various purposes and ages, an ideal way to initially segment the market is by tourism product segment, as this allows insight into targeted marketing and advertising based on relatedly consumed media. Segments that may be most relevant to Ace Hotel are highlighted, and include:
• Attractions • Backpacker • Cultural • Events
• Food & wine • Business • Shopping
Marketing efforts targeted to the three highlighted segments of cultural tourists, events tourists, and business travellers will be included in Ace’s broader target market, and executed through media generally consumed by individuals who engage in these types of tourism/travel.
2.2 Internal Analysis
2.2.1 Current Brand IMC Strategy
Ace Hotel’s US operations do not currently include large amounts of advertising. Instead, the hotel chain focuses on crafting a strong and very visual brand image generated through word of mouth and press. The company’s in-house creative services firm, Atelier Ace, dedicates efforts to building awareness and interest through non-traditional methods such as extensive cross-branding, events and the hotels’ nature of being social hubs, and a heavy emphasis on social media. Ace Australia will place a similar emphasis on social media, whilst incorporating more traditional methods in order to combat low brand awareness.
2.2.2 SWOT Analysis
Based on the SWOT analysis found in Appendix 12.2, certain internal and external factors have been identified that may have an impact on Ace Hotel’s IMC strategy: Strengths
• Unique product with a stylish aesthetic, creating a memorable experience • Priced lower than typical boutique hotels • High quality service with consistently high ratings on travel websites • Recognizable branding through standardized color, style and imagery
Weaknesses
• Very low brand awareness in Australia • Infrequent interactions with customers / infrequent purchase. Social hub status aims to
combat this Opportunities
• Growing domestic tourism industry • Many festivals in Melbourne attract cultural visitors • Melbourne culture fits Ace culture (coffee, local art, fashion aesthetic)
Threats
• Risk of better funded competitors following successful Ace model
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2.2.3 Five Forces Analysis
Based on the Five Forces Analysis found in Appendix 12.3, the following factors have been identified that may impact Ace Hotel’s IMC strategy in Australia: Industry Competitors As a mature industry, competitors in Melbourne are abundant and established. Issues to consider:
• Similar product/service offering across competitors • Price sensitive consumers • Competitors may have greater funding for advertising/expansion
Bargaining power of supplier Suppliers are critical for Ace Hotel, as supplies such as food and beverages are critical for daily operations. Ace will need to strive to:
• Develop supplier relations for quality furniture and fixtures at competitive prices • Maintain relations for timely and quality food stock
Bargaining power of buyer Bargaining power of buyer in the case of Ace hotel is high. Buyers are powerful in that they:
• Are price sensitive and have many options for accommodation need • Loyalty is significant in the hotel industry; buyers choose brands that offer rewards and
incentives. Ace therefore must clearly and convincingly demonstrate its competitive advantage over substitutes
Threat of new entrants Threat of new entrants for Ace hotel is particularly low. This is because:
• Setup of a new hotel requires a significant financial investment • Boutique hotels constitute a minor portion of hotels in Melbourne, there is room for growth
Threat of substitutes Threat of substitutes for Ace hotel is moderate, characterized by price sensitivity and low switching costs. Substitutes for Ace hotel include:
• Other hotels and serviced apartments • New online-based guestroom/house services such as AirBnB • Informal accommodation such as staying with friends
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3.0 Target Market/Audience
Based on Appendix 12.4, Ace Hotel’s target market in Australia is similar to the primary market of customers in Ace’s US locations and can be described with the following segmentations: Geographic Segment
• Metropolitan, capital cities, as this is where the majority of Ace’s market of professionals and cultured travelers is found
Demographics • Males and females belonging to 25 - 35 years age group • Middle class creative professionals who are earning up to 80,000 AUD. • Undergraduate degree or higher. • Having a stable job and education suggests this target group is able to bear the expenses
of staying at Ace Hotel. Psychographic sections By applying the VALS segmentation model, Ace Hotel will select experiencers as target consumers. There are two main reasons for this:
• Experiencers have specific characteristics, such as young, passionate and they are willing to consume fashionable and excited products with higher price. Consequently, uniquely styled rooms by local artists can satisfy experiencers’ needs and provide memorable experience.
• Ace Hotel will regularly hold music and art events at the hotel, attracting locals and travelers alike.
Behavioral sections Ace Hotel can separate target consumers into two sections, user status and needs. Targeting potential users and new first-time users is the first expectation for Ace Hotel, and can be achieved by:
• Providing not only accommodation but also special life stage event for individual consumers. For example, customers can have weddings and parties in the open space in Ace Hotel, such as liberty hall in New York branch.
Consumers’ need and benefits is another angle to be considered as well, because:
• Although only 12% of the market are enthusiasts, the consumers in this group are willing to spend more money in purchasing and experiencing the thing they are interested in.
• As a result, they can bring more profit and resonance to Ace Hotel. • Moreover, Ace Hotel integrates local community and has frequent connection with local
vendors and artist, this kind of elements are another attraction for culture and art enthusiasts.
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4.0 Marketing & Communications Objectives
4.1 Marketing Objectives
As a company that has newly entered the Australian market, Ace’s marketing objectives are projected goals for the initial 12 months of business.
1. To reach an average room occupancy rate of 80% over the next twelve months. 2. To achieve revenue target of $7.08 million over the 12-month period. 3. To attain 5% market share of overall hotel industry in Melbourne CBD after 12-month
period.
4.2 Communications Objectives
Similar to Ace’s marketing objectives, communication objectives for Ace’s Australian IMC strategy involve building brand awareness from what is assumed to be approximately 0.1%, constituted by Australians who have traveled to the United States and perhaps come across the hotel chain whilst researching accommodation. The following objectives have been set for a 12-month period:
1. Build brand awareness to 30% of the national target market by using print, digital, and social mediums.
2. Build brand awareness to 70% of the Melbourne-based target market. This will be hastened through word of mouth generated by locals visiting the on-site café and events.
3. To maintain a constant frequency with 5% of the national target market, social media will be used on a weekly basis to reinforce brand awareness and interest.
4. To reach 75% of the national target market with at least three exposures, advertising in print and digital mediums will be used, specifically around the times of events such as the Melbourne Food and Wine Festival, local film festivals, Fringe Festival, and L’Oreal Melbourne Fashion Festival.
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5.0 IMC Strategy
5.1 Media Mix
We will use a media mix strategy of:
• Print (lifestyle magazines, newspapers, airline magazines) • Social media and websites advertising (Facebook, Instagram, Twitter, YouTube, Blogs,
Vimeo, Websites- specifically travel sites such as Agoda and Trip Advisor) • Word of mouth gained through PR efforts such as press releases and events held at the
hotel
5.2 Target Market Coverage
We will focus on achieving partial target market coverage. The media mix we have selected will reach a majority of our target market of cultural enthusiasts aged 25-40.
5.3 Geographic Coverage
We will advertise in the following cities:
• Sydney • Melbourne • Brisbane • Perth • Adelaide
5.3 Reach & Frequency
We will aim to achieve greater reach than frequency.
Frequency 40% Reach 60% As Ace Hotel is going to be a new brand in Melbourne and Australia as a whole, we are looking to reach out for more consumers as a whole, including our target customers so as to gain brand awareness.
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6.0 Creative Strategy
Ace Hotel will use the following types of images through chosen mediums: Print Media Imagery evoked in advertisements will be detailed, glossy photos of the hotel rooms and of the hotel lobby, demonstrating Ace's social hub status in action. A mixture of full page and smaller sized ads will be placed in Sunday editions of the chosen newspapers, alongside news on cultural events. Magazine ads will be full-page and smaller sized as well, depending on the time of year and surrounding editorial content. Digital Media Online advertisements will be standard banner ads depicting images of Ace Hotel, both the rooms, lobby and surroundings, as well as cultural events in Melbourne of interest to the target market. Images may flash within one banner ad to include these multiple scenes. Social Media Altered, vintage inspired images of the hotel and surroundings, as well as photos of events and product collaborations, as well as unrelated information, photos and videos that may simply be of interest to the target market; this method plays a significant part in cementing Ace's role as a brand that can permeate the lives of hotel guests beyond the hotel stay.
6.1 Positioning
As summarized in Appendix 12.5, Ace Hotel positions itself as a boutique hotel marketed towards culturally enthusiastic travelers across various consumer segments. Fulfilling basic category points of parity such as being in a central location, having clean, stylish rooms, quality amenities and a knowledgeable staff, Ace goes on to offer consumers the points of difference of obtaining a full cultural experience in a hotel that doubles as a social hub. Ace surpasses competing boutique hotels by collaborating with local artists to style the hotel’s rooms, creating a space that goes beyond unique design by adding human and cultural relatability.
6.2 Positioning Statement
“To culturally enthusiastic travelers, Ace Hotel is the only boutique hotel that can immerse guests in a full cultural experience. At Ace Hotel, our guests stay in unique rooms styled by local artists and
are surrounded by a social hub of culture and creative minds, and can meet like-minded locals and travelers alike without ever leaving the building.”
6.3 Brand Image
Based on the brand identity prism found in Appendix 12.6, the following brand traits of Ace Hotel will be evoked through the imagery found in Ace’s Australian advertising strategy:
• Physique: Minimalistic styling, identifiable typography and color scheme, iconic logo • Personality: Creative, cultured • Relationship: Social hub • Culture: Creative-types, conscientious consumers • Reflection: Stylish and fun urbanites
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6.4 Appeals, Execution Style & Techniques
Further information explaining appeals is found in Appendix 12.7.
Medium Objectives to achieve Appeals/Execution Styles Technique
Prints • To attract
consumers and
raise brand
awareness
• To raise brand
knowledge
• Emotional and
Rational appeal
• Transformational
and informational
styles
• Comparison
• Imagery
• Selling a lifestyle and
an experience
Internet &
Social Media
• To increase brand
likeability
• To increase brand
loyalty
• To create brand
awareness
• Emotional and
Rational appeal,
Transformational
and Informational
style for Facebook.
• Judgmental style for
YouTube and Vimeo
viewers
• Rational appeal and
informational style
from interviews
posted on YouTube
and Vimeo.
Combination of techniques
Facebook/Websites/YouTube:
• Informational
• Word of
mouth/Reviews
• Imagery
• Emotional appeal
YouTube interviews:
• Testimonials
• Comparisons
• Informational
• Emotional appeal
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7.0 Media Strategy
7.1 Print Media
There are three main reasons that Ace Hotel considers print media as one of media strategies: • Consumers have better recall when they expose to print media, especially in product-
focused print media. • Print media can accurately expose message to target consumers. • Synergy of print media and other media can have better performance and effectiveness.
Strategies:
• Place full-page advertisements in magazines like Acclaim, Scoop traveller, Traveltalk, and Virgin in-flight magazines.
• Selective months chosen in non-constant media will be July, August, November, December, January, February and May, coinciding with multiple cultural events in Melbourne.
7.1.1 Newspaper
Reasoning: • Newspapers not only provide readers with attractive images but also detailed information
about the company being advertised. • Mass audiences are exposed to newspaper: the Herald Sun has a record of 484,000 copies
within three months in 2011. Purpose:
• Increase brand awareness and target professional and travelling audiences Advantages:
• Cost efficiency: exposes mass audiences with fixed cost. • Different newspapers have their own loyal readers and this can be helpful to target
consumers. • Newspaper is an information resource that can be accessed easily.
7.1.2 Magazines
Reasoning: • Magazines like Acclaim, Scoop, Traveltalk, and Virgin in-flight magazines reach and
educate Ace’s target market in a relevant setting • High quality and glossy images may have positive persuasion.
Purpose:
• To create brand awareness about Ace Hotel among the target group. Advantages:
• Magazines target a specific demographic, such as people who belong to a certain trade or of a certain age group.
• By advertising in magazines within the industry, it is almost guaranteed to reach the intended audience.
7.2 Digital Media
There is a high likelihood for successful digital media awareness due to: • In 2008, use of the internet grew to 74% by people that were aged 15 years and over. • More than one-third (~35%) of the hotel room bookings in 2010 came from digital platforms
(OTA, GDS, etc) with expected growth trends in the future.
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7.2.1 Google Adword
Reasoning: • Approximately 44% of 363 million unique searches were searched through Google • High reach potential especially for an entry into a new market
Purpose: • Gain successful exposure and penetration into the Australian market
Advantages: • Has a high conversion rate as it provides a platform to optimize brand campaigns such as
awareness • Large consumer base with opportunities for brand awareness and promotions
7.2.2 Website Listings/Intermediary Sites
Reasoning: • High concentration of internet users with 74% aged 15 and over in Australia • Through various website listings, it is possible to achieve a larger reach required for content
distribution which is necessary to gain an increase in brand awareness and online booking potentials
• By placing specific advertising on intermediary sites such as Virgin’s Hotel section, Flight-Centre and various other sites it will allow for a wider brand awareness reach
Purpose: • To achieve marketing objectives to increase sales and gain high occupancy rates
Advantages: • Bookings after reading reviews are highly likely if hotels are placed in intermediary sites
such as Agoda and Trip Advisor • Important venue to raise awareness and develop word-of-mouth marketing
7.2.3 Pay Per Click
Reasoning: • To effectively capture brand awareness particularly in a new market • Develop a stronger reach to aid in developing awareness and sustaining competitive edge
Purpose: • Gain a competitive advantage in key terms from search engines such as Google or Yahoo!
Advantages: • Cost effective at targeting consumers that are searching for the Hotel service • Possibility for consumer segment growth by providing relevant offers according to search
queries
7.3 Social Media
Social media is a powerful and cost effective online platform; as such Ace Hotel US currently utilizes Facebook, Twitter and Tumblr to interact with customers through their personal social media accounts. Instagram and Pintererst will be added to the Social Media mix to increase imagery and frequency, enhanced by the prevalence of social media use on smartphones.
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7.3.1 Facebook, Twitter, Instagram, Pinterest
Reasoning: • Ace’s target market aged 25-34 is the largest group of Facebook users. • Ace Hotel in the United States has 19,159 likes on the Facebook fan page, 27,351 followers
on Twitter, 11,762 followers on Instagram and 874 followers on Pinterest, evidencing effectiveness.
• Social media allow customers to take a more active role as market players and reach (and to be reached by) almost everyone, anywhere and anytime.
• Moreover, social media is able to: o Reinforce message and help it go viral o Embrace and project brand’s personality o Allow for real-time, two-way communication o Allow communication at point-of-need
Purpose:
• Ace Hotel can achieve their objectives to increase likeability and brand preference at the same time encouraging effective communication.
Advantages:
• Build a positive brand image • Establish a relationship between the hotel and consumers, existing or potential.
7.3.2 Vimeo & YouTube
Reasoning: • Video search engines such as YouTube and Vimeo are widely used by companies to help
to build a strong community around their brand. YouTube is the most searched site after Google, and is even being used as a search engine similar to Google.
• There are 4 billion views per day on YouTube and potential customers might make their travel decision with video on YouTube. There are 31 subscribers and a total of 2,518 views on the Ace YouTube channel.
Purpose:
• Ace Hotel can achieve its objectives to increase brand awareness and brand knowledge. Advantages:
• Provide visual information to consumers. • Has a high potential for achieving reach due to video sharing and embedding functions. • Has a high potential for achieving frequency due to cost-free viewing and downloading
capabilities.
7.4 PR Efforts
As an attempt to bolster word of mouth and make known and reinforce Ace Hotel’s status as a social hub, various PR efforts will take place, such as sending out press releases when the hotel opens, inviting travel bloggers to stay at the hotel free of charge, and hosting a variety of events, such as concerts and art openings.
7.4.1 Press Releases
Reasoning: • Sending out press releases on Ace’s opening generates awareness amongst those with a
voice in media • May lead to articles or interviews on Ace
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Purpose: • Generate awareness amongst members of the press with the intent of the hotel being
objectively mentioned in various mediums Advantages:
• Little to no cost for possibly extensive reach
7.4.2 Travel Blogger Invites
Reasoning: • Inviting well-known travel bloggers, such as those behind Mr. and Mrs. Smith, founded by a
former Lonely Planet director, to stay at Ace Hotel for 2 nights, with airfare paid for by the Hotel, is an inexpensive way to generate interest in the hotel amongst both loyal followers of the blog, and those consumers who may stumble across the blog whilst searching for accommodation.
• Hotel stays are likely not to represent an expense to the company, and reach attained for the price of an airfare ticket within Australia is likely to be exceptionally cost-effective
Purpose:
• Generate user-generated in-depth reviews and testimonials on the hotel Advantages:
• Objective, reputable and trustworthy • Pictures of rooms and hotel will be included • May attain extensive reach
7.4.3 Events
Reasoning: • Reinforces Ace’s social hub status • Attracts locals • Opening event allows Ace to invite many members of the press
Purpose:
• Generate word of mouth and build relationships with locals and visitors Advantages:
• Attracts variety of individuals • Indirect publicity • Boosts status and appeal
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8.0 Budget
As this is Ace Hotel’s first year of operations in Australia, extensive advertising is required, and accounts for roughly 25% of projected yearly revenue (Appendix 12.8 Projected Revenue). This will be offset by investment funds for the hotel’s establishment, and a massive cut down in subsequent years to 5% of budget, consisting mainly of social media.
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9.0 Monitoring & Evaluation
9.1 Pre-testing
As Ace Hotel is selling a service and is new to the Australian market, it will be challenging for us to do pre-testing. As a result, pre-tests will be to evaluate the American marketing as well as overall performance and compare and improve.
9.2 Measuring Print Media Performance
• Give incentives (e.g. coupon offer) on the newspaper page and measure how many coupons have been redeemed.
• Ace Hotel can ask publishers the number of newspaper copies were distributed and estimate the efficiency.
• Promotional codes specific to each magazine will measure the effectiveness of each medium
9.3 Measuring Social Media Performance
In order to measure the effectiveness for social media, Ace can keep track of the number of followers and fans on the different social networks, demonstrating awareness in Australia.
9.4 Measuring Digital Media Performance
By measuring digital media performance though studies such as tracking, it is possible to obtain essential performance indicators such as customer satisfaction, purchase intentions, brand recall and attitude perceptions.
• Consumer reviews through intermediary site listing will be monitored • Post-testing tracking studies will be utilized in order to assess the effectiveness of digital
media distributions • By assessing consumer reviews and amount of clicks (cost per click) it is possible to
examine Ace’s brand equity and reach effectiveness
9.5 Post-testing
Despite a minimal need for pre-testing, it may be important to utilize post-testing measures to assess the effectiveness of the current marketing objectives (refer to 4.1 Marketing objectives) and communications objectives (refer to 4.2 Communications objectives). Tracking Studies
• Tracking studies will allow Ace to measure the percentage of market share capture throughout a one year period
• It will allow Ace to analyze the effectiveness of the various media distributions for awareness development, market share capture (see 4.1 marketing objectives) and attitudes towards Ace’s brand image
• Consumer feedback and reviews on website listings will be used to assess the effectiveness of sustaining a high occupancy rate (~80%)
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10.0 Conclusion
As a new entrant into the Australian market, Ace Hotel will be implementing a relatively extensive IMC strategy for a single hotel of its size. Messages will aim to portray Ace’s status as a boutique hotel positioned as a step above the competition, offering to guests rooms uniquely styled by local artists, a plethora of small, thoughtful touches, and the opportunity to be immersed in a dynamic social hub. Utilising a mixture of newspaper and magazine advertisements alongside online advertising and extensive social media use, Ace will obtain a degree of synergy that allows it to not only obtain reach, but also frequency, of ads for its generalized target market of culturally-enthusiastic professionals in Australian capital cities; social media and digital media advertisements will be utilised on a constant basis, whereas print media advertisements will be used primarily in the months prior to large cultural events in Melbourne, such as the Food & Wine, film, and other festivals. A budget of $1,495,747, constituting nearly 25% of projected yearly revenue, will allow Ace to rapidly raise brand awareness and interest, allowing the brand to shift to its current strategy of relying primarily on social media after this first year. Monitoring effectiveness will involve primarily measuring receipt of promotional offers, benchmarking against US standards, and monitoring guest reviews and comments on networking sites.
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11.0 Appendix
11.1 Perceptual Map
Figure 1: Analysis of service and price of competiting hotels in Melbourne
Figure 2: Visual Aesthetics vs Service Quality
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11.2 SWOT Analysis
Strengths Weaknesses
Internal 1. unique product 2. inexpensive price 3. quality service 4. strong brand image 5. location (in Melbourne CBD) 6. high brand awareness around the world
1. lower brand awareness in Australia 2. lack of interaction with consumers 3. level of resonance is not enough 4. less frequency purchase
Opportunities Threats
External 1. growing domestic tourism industry 2. regional visitors understand culture 3. many festivals in Melbourne to attract cultured visitors 4. lack of actual hotels with young vibe 5. Melbourne culture fits with Ace image (coffee, local art, etc.)
1. risk of better funded competitors following Ace model
11.3 Five Forces Analysis
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11.4 Target Market
11.5 Positioning
Market: Culturally enthusiastic travelers Category: Boutique hotel Points of Parity: Clean rooms, central location, quality amenities, knowledgeable
staff, stylish rooms and building interior Points of Difference: Cultural experience, social hub Competitive Points of Parity:
Rooms uniquely styled by local artists
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11.6 Brand Identity Prism
11.7 Appeals, Execution Style & Techniques
Ace Hotel being a boutique hotel is not only selling a common hotel service, but also a lifestyle and an experience to the customers. We are using both rational and emotional appeals in media mediums such as magazines, newspapers, internet and social media. Booking a hotel is comparably a high involvement purchase for most of the people. We will use different media to provide information and raise brand knowledge when potential consumers are making decisions. Through rational appeal, customers will understand the brand that will help increase brand likeability. On another hand, emotional appeal is used to gain brand awareness and allow consumers to learn about the brand through visual tools. Word of mouth is critical in selling the service and expanding the market too. Thus, we use the assistance of various hotel booking websites, blogs and social media for previous customers' reviews and experiences.
Physique
Picture(of(sender�
Picture(of(recipient�
Externaliza4
on�
Internaliza4
on�
�
Relationship
Reflection Self-Image
Culture
Personality
! Simple + iconic logo ! Street-style art in hotels Identifiable typography in orange-red, brown and black ! Minimalistic room styling, muted colors
Creative Cultured
Authenticity Creativity Dynamic Social Hub
! Creative, cultured, stylish + fun urbanites
I’m cool, have refined tastes, appreciate design + culture, and am fulfilled in life by pursuing what speaks to me
! Creative Conscientious Consumer
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11.8 Projected Revenue
*Assuming 80% occupancy rate per day
Occupancy rate: 80%
Number of rooms: 120 rooms
Average price: $200
Days per year: 365 days
Estimated revenue/year: $7,008,000
Marketing Budget (25%): $1,752,000
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http://www.tourism.vic.gov.au/marketing/marketing/market-segments Trip Advisor. (2013, May, 18) Trip Advisor: Circa The Prince Reviews. Retrieved May, 2013, from http://www.tripadvisor.com/Restaurant_Review-g255100-d723679-Reviews-Circa_The_Prince- Melbourne_Victoria.html Trip Advisor. (2013, May, 18) Trip Advisor: Ovolo Hotel Reviews. Retrieved May, 2013, from http://www.tripadvisor.com.au/Hotel_Review-g255100-d3190578-Reviews-Ovolo_Hotel- Melbourne_Victoria.html Wakolbinger, L. M., Denk, M., & Oberecker, K. (2009). The Effectiveness of Combining Online and Print Advertisements. Journal Of Advertising Research, 49(3), 360-372. Wotif Reviews. (2013, May, 18) Wotif Hotel Reviews. Retrieved May, 2013, from http://www.wotif.com/hotels/ovolo-hotel-melbourne.html Wang, J. (2010, October). How to make a scene. Entrepreneur, 28-36.