Home / Investment Capital

Evaluate Marketing Research, Market Segmentation, Target Market Selection and Marketing Strategy

Localities develop specific tourism plans in the area; call for investment in tourism. According to data from the Foreign Investment Agency (Ministry of Planning and Investment), in the first 8 months of 2008, Vietnam's hotel and tourism sector attracted 21 projects with a total investment capital of up to 8,773 million USD, far exceeding the total registered capital in the entire period of 1988-2007. Many bustling investment activities are taking place in many provinces and cities across the country such as Hanoi, Ho Chi Minh City, Quang Ninh, Da Nang, Binh Thuan, Can Tho, Ba Ria - Vung Tau...

The challenges facing Vietnam today are the global financial crisis, economic recession in many countries around the world, and a decline in tourism growth in many key markets. Vietnam's tourism industry is also directly affected by these impacts. The average room occupancy rate nationwide in 2008 was only 49%. 38

The leader in the construction and management of hotels in Vietnam today is Saigontourist. Saigontourist started operating in 1975 in Ho Chi Minh City, the city's first enterprise in the tourism industry. On March 30, 1999, Saigon Tourist Corporation was established by the decision of the Ho Chi Minh City People's Committee. It operates under the state-enterprise model, integrating the activities of many travel companies, tour operators, hotels, restaurants, etc., in which Saigontourist Company is an important partner.

Saigontourist Corporation has been ranked by Vietnam's national as one of the leading tourism corporations in Vietnam. It contributes greatly to the development of Vietnam's tourism industry: providing a wide range of services such as accommodation, food & beverage, tourism, entertainment, business, import & export, duty free shops, transportation, construction, hotel & tourism training, food production & processing.

In recent years, Saigontourist has been increasingly diversified in its operations, managing 8 travel service companies, 54 hotels, 13 resorts and complexes, and 28 restaurants with appointed facilities. It has also cooperated with more than 50 localities nationwide in joint ventures and has 9 joint ventures.

Maybe you are interested!



Evaluate Marketing Research, Market Segmentation, Target Market Selection and Marketing Strategy

38 According to the Tourism Information Center - General Department of Tourism, on the website of the "Institute of Tourism Development Research", information dated January 22, 2009

http://www.itdr.org.vn/vi/detailnews-a--c-104-d-1371.vdl

business with foreign partners, the most recent of which is joining the French Chamber of Commerce and Industry in Vietnam as a member. 39

As an official member of the Pacific Asia Travel Association (PATA); American Society of Travel Agents (ASTA); Japan Association of Travel Agents (JATA) and United States of Tour Operators Association (USTOA), through its relationships with more than 200 foreign travel companies in 30 countries, Saigontourist will continue to focus on strengthening and expanding the market, especially targeting international markets such as: Japan, China, Taiwan, Singapore, Korea, France, Germany, UK, Canada, USA .., promoting the development of new products in the fields of accommodation, resorts, tourism, shopping, MICE, river tourism and sea tourism through partners outside Vietnam. To ensure future growth, it will actively develop Saigontourist branches in the Southeast Asia region. With the motto "Brand - Quality - Efficiency - Integration", Saigontourist pays special attention to increasing business efficiency, improving service quality, expanding investment to upgrade existing equipment, developing new products, enhancing further promotion and marketing for campaigns targeting current and potential markets. With a strong driving force and vision for the future of the tourism industry in Vietnam, Saigontourist is moving forward. This can be seen in the development history of the system, the people working there are still continuing to strive to achieve their goals to expand the market and affirm Vietnam's position in the tourism sector in Asian countries. Some of the Vietnamese hotels that are members of Saigon Tourist are:

In the North, there are: Saigon - Ha Long Hotel; Saigon Hotel. In the Central region, there are Saigon - Kim Lien Hotel; Saigon - Kim Lien Resort; Saigon - Quang Binh Hotel; Saigon - Morin Hotel; Saigontourane Hotel; Saigon - Quy Nhon Hotel; Huong Sen Hotel; Yasaka - Saigon - Nha Trang Resort Hotel & Spa; Hotel Saigon - Da Lat; Saigon - Ninh Chu Hotel. In the South, there are Caravelle Hotel; New World Hotel Saigon; Sheraton Saigon Hotel & Tower; Rex Hotel; Hotel Majestic Saigon; Grand Hotel; First Hotel; Continental Hotel; Kim Do Royal City Hotel; Bong Sen Hotel Saigon;


39 Introduced on the official website of Saigon Tourist Corporation

Palace Hotel Saigon; Que Huong - Liberty 2 Hotel; Que Huong - Liberty 3 Hotel; Que Huong - Liberty 4 Hotel; ….

In addition to Saigon Tourist, Hanoi Tourism Service State-owned One Member Limited Liability Company (Hanoi Toserco) is also a state-owned enterprise, established in 1988 by the Hanoi People's Committee. Over time, the Company has achieved great success and has always been one of the leading travel companies in Hanoi and Vietnam. Hanoi Toserco's establishment decision is No. 637 dated February 10, 1993 by the Hanoi People's Committee. Vietnamese hotels belonging to Hanoi Toserco are: BSC Hotel (Kim Ma). In addition, 2 joint ventures, Hanoi Hotel (joint venture with Hong Kong) and Horison (belonging to the Swiss-bel-Swiss Group) are also under this company.

Some typical Vietnamese hotels

Riverside Hotel Saigon

Riverside Saigon Hotel is located on the old Quai des Belgiques (now Ton Duc Thang Street, District 1, Ho Chi Minh City) and was formerly the office of The CARIC, a French railway transport company, established in 1887. After 1975, the hotel belonged to the Saigon Transport Company, used at this time as a wine warehouse and a Seamen's Club. In 1993, the original property (just a 2-storey building in the old French architecture) was redesigned and rebuilt into six floors, in accordance with its new function as a hotel. The classic architecture, not only maintained, but also enhanced to create a unique beauty in harmony with the ideal romantic location of the Saigon River. The choice of decorative motifs has created the necessary symmetry for the facade of Riverside Saigon Hotel. Since 1998, The Riverside Hotel has belonged to Saigon Commercial Bank, with 73 rooms in total to provide accommodation services to business guests as well as tourists, in order to bring the highest convenience to them when staying in Vietnam in general and Ho Chi Minh City in particular.

On its website, the hotel's management only modestly identifies itself as a 3-star hotel, but on the website introducing 5-star hotels participating in the big promotion program to stimulate tourism "Impressive Vietnam", Riverside Hotel is proud to be one of the few Vietnamese hotels on the list.

Liberty Hotel

Que Huong - Liberty Joint Stock Company was officially established in July 1985, with the name Que Huong - Liberty Hotel. During the process of construction and development, the hotel has continuously improved the quality of services, amenities, and enhanced its professionalism. Until September 2004, Que Huong - Liberty Hotel changed its business type to Que Huong - Liberty Joint Stock Company.

Currently, Que Huong hotel chain has 6 hotels (Que Huong - Liberty 1 to Liberty 2, 3, 4, 6 and Metropole - Que Huong hotel) with 461 modernly equipped rooms, 2 famous wedding banquet restaurants in Ho Chi Minh City (Van Canh and A Dong restaurants), Thanh The Plaza commercial business area and Madagui tourist area in Lam Dong province. Over many years of operation, Que Huong hotel chain has affirmed its strong brand in the market through services providing comfortable bedrooms and competitive prices combined with maintaining the quality of service.

All rooms are modernly furnished with distinctive features and with the amenities that travelers expect. Our guests have a wide choice of food at the internationally award-winning restaurants located within the hotel.

Saigon Hotel

Saigon Hotel with 100 comfortable bedrooms, 3-star standard, located in the center of District 1, Ho Chi Minh City, near Ben Thanh market, theater, post office, church, ... convenient for sightseeing, shopping, entertainment, ... Each room is modernly decorated, fully equipped: air conditioner, cable TV, minibar, tea and coffee, hot water, cold water, bathtub, robe, ... There are restaurants, minibar, karaoke, massage, meeting rooms, conference rooms, souvenir shops, airport shuttle, car rental, currency exchange, flight and train ticket booking, ...

Dai Nam Hotel

As a 3-star international standard hotel, Dai Nam Hotel has 52 beautifully decorated, modern bedrooms, suitable for tourists as well as conference and seminar attendees. The hotel also has non-smoking rooms for those who request. Dai Nam's 52 rooms are divided into 5 different categories, with prices

also different: from Standard (50 – 55USD++/room night) to Superior, Deluxe Suite, Dai Nam Suite and the highest is Executive Suite (120 – 130USD++/room night). All rooms can be equipped with an extra bed, for 15USD. Guests receive free breakfast, 2 bottles of natural mineral water every day, 10% discount for lunch and dinner; 10% discount for food purchased at the hotel lobby; there is a pick-up service.

free fax

Hoang Anh Gia Lai Hotel Danang

Located in the center of the dynamic city, full of new vitality, with 23 floors - the highest in Da Nang today, Hoang Anh Gia Lai Da Nang is considered a new symbol of the largest city in the Central region. Hoang Anh Gia Lai Da Nang meets 5-star standards, 1.5km from the international airport next to shopping areas, shops and bustling commercial centers. The hotel has 180 comfortable bedrooms: superior, deluxe, and head of state rooms with spacious, luxurious space and full of necessary amenities, room rates range from 120 USD/night to 400 USD/night.

There is also the Majestic Saigon Hotel, the first 5-star hotel in Vietnam, operated and managed by Vietnamese people. The hotel was established in 1925 under French management, then when our country gained independence, it belonged to Saigon Tourist Corporation. In 2005, the hotel celebrated its 80th anniversary. The hotel has 154 rooms that meet international standards, also classified similarly to other foreign-invested hotels, room rates range from 155 to 415 USD/night; and a series of other 1, 2-star hotel systems are also very attractive to backpackers.

2. About the scale and class of Vietnamese hotels:


Most of Vietnam's hotels are medium-sized. The number of hotels with 20-100 rooms accounts for over 60% 40. In Hanoi, Ho Chi Minh City, Hoi An, Hue, Vung Tau, Nha Trang... there are also hotels with over 100 rooms. Hotels in other provinces and cities where the tourism industry is not yet developed and has not attracted many international visitors are mainly small-sized.

With such a system of small and medium-sized hotels, it is difficult for state-owned and private hotels to compete with hotels with capital investment.

Improving quality and service is not easy, especially when the number of guests increases, small hotels will face many obstacles in welcoming guests.

Regarding hotel rankings, there are over 150 state-owned hotels alone, accounting for nearly 50% of the total number of hotels ranked nationwide. Most of Vietnam’s hotels are only ranked 1-3 stars, a few hotels are ranked 4 stars 41. ( Majesty Saigon, Riverside Saigon Hotel, hotel system of Hoang Anh Gia Lai Group...)


Marketing activities of Vietnamese hotels​​​​​​


Previously, because the supply of hotel products was smaller than the demand, the hotel business did not have fierce competition, so the general situation was that product prices were often quite high and not commensurate with the quality of service. Domestic hotels in general and state-owned hotels in particular paid little attention to marketing activities and did not really understand the concept and its contents. The budget for these activities was non-existent or insignificant. There was no specialized department and professional marketing staff, so most hotels did not have a clear marketing strategy. In the past few years, especially in the face of Vietnam's accession to the World Trade Organization (WTO) in 2007, market competition became fierce, the rate of international tourist flow to our country grew slowly and was at risk of decreasing, and new businesses were interested in marketing activities.

1. Evaluate marketing research, market segmentation, target market selection and marketing strategy

Regarding marketing research and market analysis : In general, hotels with marketing departments have initially paid attention to marketing research, mostly specialized marketing research such as customer research, market segmentation, and marketing mix research. However, it is mainly research through secondary data sources (Research on desk) through questionnaires handed out in person.

or by the front desk interviewing hotels after guests have used their services. These methods of collection often lead to incomplete and unsystematic results.

In 2006, 80.57% of hotels researched market demand; 57.35% researched competition; 69.19% researched customers; 61.14% researched service development; 50.24% researched advertising. 42

The research methods used by hotels are often the same: direct interviews, letters, telephone calls, hand-delivered questionnaires or some other methods. Empirical research is hardly done by any hotel. At some hotels in Hanoi, Ho Chi Minh City and Quang Ninh: although hotels pay attention to marketing research, general market research, trend research, targeted marketing research... have not been conducted. Many hotels, especially small and medium-sized hotels, assign this task to the reception department, the content of the issues that need to be investigated mainly revolves around the level of customer satisfaction and has not paid attention to trends and the development of new products and services.

Regarding segmentation and target market selection : Most Vietnamese hotels are interested in market segmentation, some small hotels do not have a marketing strategy so they do not segment the market. Hotels with segmentation often choose from 2 to 3 different segmentation criteria, the most used criteria are by geography and by purpose of travel. Customer psychology, demographics and behavioral criteria are still rarely used.

Regarding the construction and selection of marketing strategies : Most Vietnamese hotels choose a differentiated marketing strategy, some hotels use a concentrated strategy, and the least undifferentiated marketing strategy. Even for hotels using a differentiated marketing strategy, the construction of a marketing mix strategy for each market segment differs mainly in price but pays little attention to service quality, leading to an imbalance between price and service quality.


42 According to information at the Hotel Marketing Conference - Professional care class, held in December 2008 at Ho Chi Minh City University of Commerce, http://prclub.com.vn/forum/index.php?showtopic=11580

2. Evaluate marketing mix elements:


2.1 Product policy

Like other hotels, the main products of Vietnamese hotels can be divided into the following 3 groups:

- Accommodation service : this is the main service of hotels. In general, Vietnamese hotels are divided into many types of rooms with different prices to satisfy the diverse needs of guests from standard to high-class rooms depending on location, area and amenities. Medium and higher rooms in big cities are equipped with radios, hot water heaters, refrigerators, etc. Low-ranking hotels often have only 1 or 2 types of rooms. Only large hotels really diversify the types of accommodation, making this service less monotonous and meeting the diverse needs of guests. Many hotels with beautiful locations (near the lake, near the old quarter) have not yet exploited this natural advantage to enrich their services in the packages provided to guests. (Lan Anh Hotel in West Lake uses rooms facing the lake as offices and kitchens, this is considered a very regrettable waste).

- Catering services : This service is often ineffective and rarely attracts outside guests. Recently, many hotels have focused on exploiting and serving wedding parties to increase revenue. In addition to some high-ranking hotels, there are often quite rich menus and different dining rooms serving the tastes of European or Asian countries, and traditional Vietnamese specialty dining rooms. The remaining hotels often have limited menus and only one common dining room.

In general, food and beverage products in Vietnamese hotels today cannot compete with restaurants specializing in food and beverage services in terms of price, food quality and service quality. Many tourists stay in hotels but eat outside, causing hotels to lose a significant source of revenue. This is the reality in 1-2 star hotels such as Nguyen Khuyen Hotel (Hanoi); Turtle Lake (Ho Chi Minh City); Hue 1, Hue 2 (Hue). The menu is still boring, the prices are unreasonable, leading to customers going out to eat.

Comment


Agree Privacy Policy *