Introduction
By offering distinctive services or goods to a specific market group, organizations can leverage brand differentiation as a strategic method to differentiate themselves from their rivals. The purpose of brand differentiation is to create a competitive edge, enhance client loyalty, and increase customer satisfaction. This approach has been effectively employed by the Fullerton Ocean Park Hotel in Hong Kong, enabling it to differentiate itself from other hotels in the city. The hotel implemented the differentiation method, and this essay examines its practical application.
Analysis
On the southern tip of Hong Kong Island, there is a luxurious hotel called the Fullerton Ocean Park Hotel. Millions of people visit the renowned theme park, situated just a short stroll from the hotel. The hotel’s management recognized that they could utilize the nearby theme park to provide their visitors with a unique experience. They achieved this by employing the brand differentiation approach, which enabled them to offer guests a range of exclusive services and perks not available at other hotels in Hong Kong.
Market research was the first action the hotel took to implement its brand differentiation strategy. They picked families with young children traveling to Hong Kong to visit the theme park as their target market (Ghantous & Alnawas, 2020). They observed that this market segment was seeking a hotel that offered a family-friendly setting with kid-friendly amenities and activities (Foroudi, 2020). With this information in hand, the hotel staff set out to give its visitors a special experience.
The Fullerton Ocean Park Hotel made significant investments to develop a family-friendly environment that catered to its target demographic. They included several amenities and services, such as a kids’ club, an outdoor playground, and a swimming pool with a water slide, designed to keep kids entertained (Margossian, 2019). They also created several family-friendly dining options, including a buffet restaurant with a variety of kid-friendly foods.
The hotel offered several distinctive services not found at other hotels, while also establishing a family-friendly atmosphere (Alberti & Iannuzzi, 2020). Families who wished to escape the inconvenience of public transportation were drawn to the free shuttle service provided to and from the theme park (Deunk et al., 2018). They also developed a variety of tailored services, including a concierge service that could plan tours and other activities specifically for visitors.
The hotel’s differentiation approach has been highly effective, and it has grown to become one of the most well-liked family-friendly hotels in Hong Kong. They have developed a competitive advantage through the use of this method, which has helped them draw in a solid consumer base (Danso et al., 2019). Hotel management has demonstrated that companies can provide their clients with a special and worthwhile experience by understanding the demands and preferences of their target market and tailoring their services and amenities to meet those needs.
Conclusion
The Fullerton Ocean Park Hotel Hong Kong successfully employed a differentiation strategy to differentiate itself from its competitors and offer guests a unique experience. By conducting market research to identify its target audience, the hotel tailored its services and amenities to meet those specific needs, thereby gaining a competitive edge that enhances customer satisfaction and loyalty. Other businesses can learn from this model and implement similar tactics to distinguish themselves and offer customers a distinctive product or service.
References
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Deunk, M. I., Smale-Jacobse, A. E., de Boer, H., Doolaard, S., & Bosker, R. J. (2018). Effective differentiation practices: A systematic review and meta-analysis of studies on the cognitive effects of differentiation practices in primary education. Educational Research Review, 24, 31-54. Web.
Danso, A., Adomako, S., Amankwah‐Amoah, J., Owusu‐Agyei, S., & Konadu, R. (2019). Environmental sustainability orientation, competitive strategy, and financial performance. Business Strategy and the Environment, 28(5), 885-895. Web.
Foroudi, P. (2020). Corporate brand strategy: drivers and outcomes of hotel industry’s brand orientation. International Journal of Hospitality Management, 88, 102519. Web.
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Margossian, C. C. (2019). A review of automatic differentiation and its efficient implementation. Wiley Interdisciplinary Reviews: Data Mining and Knowledge Discovery, 9(4), e1305. Web.