Case Study Model Executive Summary The executive summary should include a concise statement of the problem, a short summary of the major points arising from your analysis, and the major recommendations from your analysis. Introduction The decision to include and introduction is left to the discretion of the writer. If it is included, the introduction should be brief and include information regarding the nature of the company, the product, the market, etc.). Problem Identify the problem in a clear, concise manner. Ensure that the problem is distinguished from symptoms. Don’t state the problem as choosing from between a number of alternative strategies. The problem should pose a question searching for a solution. Situation Analysis Most reports include some form of “situation analysis” (often referred to as SWOT analysis). In this phase it is important that you don’t regurgitate the facts of the case. The reader/listener is only concerned about strengths, weaknesses, opportunities, and threats that have implications for the problem or solution of the problem. Interpretive comments should be provided for strengths, weaknesses, opportunities and threats. Typically, strengths and weaknesses are internal in nature (e.g., corporate objectives, resources, expertise, etc.) while opportunities and threats are external in nature (e.g., competition, market characteristics, technology, social trends, etc.). Alternatives Identify a series of alternatives that could resolve the problem. Make sure those issues such as segmentation and targeting, positioning, and the pros and cons of each alternative are discussed 9 3. Case Materials Case 1 – InterContinental Hotels – Holiday Inn The Corporate Group InterContinental Hotels Group is a leading global hospitality company with more than 3,600 hotels and 537,000 guest rooms in 100 countries. Every year more than 120 million people choose to stay at one of the company’s lodging brands. Intercontinental Hotels Group has transformed itself from a hotel owner into a hotel management and franchise company. InterContinental operates in all segments of the hotel industry. The market is segmented on the basis of price and quality. The quality criteria include the nature and extent of services and amenities offered by hotels in each segment. Within the InterContinental Group are the following brands: ? InterContinental Hotels and Resorts (upscale) ? Crowne Plaza Hotels and Resorts (upscale) ? Holiday Inn Express (midscale to budget) ? Holiday Inn Hotels and Resorts (midscale) ? Holiday Inn Select (mid?range business travel) ? Hotel Indigo (upscale brand at affordable prices) ? Staybridge Suites (extended stay) ? Candlewood Suites (U.S. mid?market extended stay) While the list of brands is extensive they are not available in all of the countries InterContinental operates in. Canadian Operations The Canadian market is divided into three segments: luxury (upscale), mid?range, and economy. In Canada, in the luxury segment there are several InterContental Hotels and Crowne Plaza Hotels located in key urban markets. These brands offer consistently high standards, a premium list of services and amenities, along with a full complement of business services, excellent dining choices, quality fitness facilities and comprehensive meeting capabilities. InterContinental’s mid?range brand is Holiday Inn. Holiday Inn is a full?service hotel typically situated in convenient locations in and around cities. Holiday Inn offers comfortable guest rooms, restaurants and room service, a restaurant and lounge, swimming pool and fitness centre, meeting rooms, and 24?hour business services. Holiday Inn Select is also a mid?range hotel but it caters specifically to the business traveler. Throughout Canada and North America they are located near business centres and airports. Select offers business class rooms, 24?hour business services and comprehensive meeting services. Holiday Inn Express is InterContinental’s entry in the economy segment of the market. Holiday Inn Express appeals directly to value?oriented travelers who do not require an extensive list of services. Express offers comfortable, well?equipped rooms and a free breakfast bar featuring fresh fruit, cereals, eggs and pastries. This segment of the market is growing so Intercontinental plans to expand its presence here. 10 The Canadian Market As is the case in so many markets, the mid?range segment is being squeezed by growth in the luxury segment and economy segment. Factors such as employment (or unemployment), the price of gasoline, and the Canadian dollar have a direct impact on vacation and business travel. Purchase decisions are a matter of priority and trade?offs. Value (perceived value) provided is a source of purchase motivation. The market is segmented on the basis of price and quality (the extent and diversity of amenities offered). At the top end are hotels like Four Seasons who charge well over $200 per night but offer a full complement of personal and business services. At the bottom end are hotels such as Comfort Inn, Quality Inn and Roadside Inn, all of which are operated by Choice Hotels Canada. Holiday Inn Express competes in this category. Room rates are in the $89.00 to $139.00 range and include a free breakfast. Holiday Inn resides in the middle with competitors such as Radisson and Ramada. Holiday Inn and others offer a clean room, some business services, a restaurant, and a swimming pool. Rates are in the $109.00 to $169.00 range. From a product perspective Holiday Inn is taking steps to offer better value. Throughout North America, Holiday Inn is implementing a renovation program and all new hotels will conform to new standards. The new Holiday Inn prototype will have high?speed access (wireless and land line) in every room. The rooms will be designed to accommodate bigger work areas and each will have an ergonomic chair to appeal to the brand’s business traveler base, which typically makes up 70 percent of Holiday Inn’s reservations. Each of the new hotels will be redesigned outside and have an indoor swimming pool. The prototype has 145 rooms. The Marketing Challenge A new marketing communications plan must be devised to rekindle interest in Holiday Inn. The goal is to win back customers who have fled to cheaper mid?scale hotels or slightly more upscale hotels. The plan is to be targeted at domestic travelers. The challenge is to research the hotel market in Canada. As part of the research process you must identify the various market segments and develop a profile of the major competitors in each segment. The objective of is to firmly position Holiday Inn in its segment of the market and to devise an advertising strategy (creative and media) that will win back customers. The plan should consider business customers and recreational travelers (families). As you proceed with the plan you will be able to develop more specific objectives for its various sections. You may also consider other elements of marketing communications mix if they are relevant to achieving the objectives of the plan. For the purposes of devising this plan, the focus will be on the Ontario market only. The budget is $2.0 million for one calendar year commencing January 1, 2011.
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