Home > Free Essays > Business > Strategy > Radisson Blu: Company’s Strategy
Cite this

Radisson Blu: Company’s Strategy Case Study


At present, the majority of companies operating at the international level are in a highly competitive environment. Hospitality industry is also characterised by intense rivalry since organisations functioning in that setting are the vivid examples of dynamically developing commercial companies, each of which is in a constant struggle for a place in the market. The purpose of this paper is to review Radisson Blu and analyse its targeting and segmentation strategies as well as other significant marketing aspects.

Segmentation and Target Market

To be able to determine the market, Radisson Blu personalises its services in accordance with the customer’s lifestyle and demographic status. In addition, they outline their strategy in accordance with the clients’ geographic location and activities preferences. Importantly, the enterprise sub-divides its customers and then provides each category with the differed services (Lockyer 2013). Overall, Radisson Blu aims to target the well-off people coming from different countries and seeking for the high-quality services. It is one of the global leaders in the hotel industry, and it has attained a significant market share both in the domestic and international markets.

Targeting Strategy

Notably, targeting proceeds after the initial segmentation has been performed. As stated earlier, the enterprise orients at wealthy people who can afford to pay the money for the hotel services of this level. Therefore, the main customers are business people who travel a lot. It should be noted that their strategy is rather efficient and successful due to the fact that the targeted customers prefer to resort to the services of Radisson Blu since they are already familiar with them and they respond to their demands to the fullest capacity (Pride, Hughes & Kapoor 2016).

Positioning and Product Range

In general, Radisson performs positioning with an emphasis on the features and characteristics of customers. It offers hotels that meet the needs of each guest as well as have an atmosphere for a comfortable stay and leisure. As the study conducted by the company evidenced, almost 95% of consumers choose Radisson hotels by such criteria as price, positioning, class of rooms, service, and location. Thus, through positioning, the basic elements of the brand are realised as a response to the needs of customers and all these elements are given equal importance (Pride, Hughes & Kapoor 2016). The enterprise includes 230 hotels in 50 countries. The geographic scale encompasses the countries of Europe, Middle East, and Africa. In addition to the guest arrangements, the enterprise offers its customers different packages with spa, recreation, and affiliate programmes. The service philosophy implies a holistic approach to pastime at Radisson Blu.

Strategic Techniques

Notably, Radisson’s Blu corporate strategy depends primarily on its spot in the BCG matrix. The enterprise belongs to the Stars category. It is one of the leaders in the market, and it rapidly dilates its scale. Apart from that, it has attained a significant market share. However, most importantly, Radisson Blu belongs to Stars since hospitality industry evidences an elevated growth rate (Radisson Blu 2017).

Place, Price, Promotion

It is worth noting that the management of Radisson has thought through the locations of hotels in order to meet customer’s requirements. In particular, this enterprise has several strategies for locating the facilities. For instance, some hotels are located in shopping areas for people with earnings above the average. The service package is a complete set of diverse offers. Another category of hotels is focused on servicing businesspersons and their short-term meetings with business partners. Also, some facilities are located in picturesque areas in order to create a comfortable environment for recreation and meetings. In addition, hotels can be built in the city centres, which is convenient for businesspersons and holidaymakers (Radisson Blu 2017). There is also another category of hotels within the Radisson chain providing long-term services to businesspersons. They are located in areas where there are many offices, convenient for business meetings.

Regarding the pricing strategy, the enterprise utilises several approaches to making profits apart from basic pricing. This strategy enables it to outdo the existing competition while attaining additional assets. One of the strategies is price discrimination in which the company sets varied prices for similar services. The hotel offers such alternatives as credit card payment, which provides the client with a discount and enables the company to alternate the price in accordance with the customer’s willingness to pay (Radisson Blu 2017).

Another approach is peak-load pricing in which the hotel charges either more or less during high and low seasons. Commodity bundling strategy is also rather common for Radisson Blu. For instance, packages with services are available for both residents and guests. In addition, the company also practices price matching widely. Radisson applies this approach to advertise their prices and attain greater market share since the majority of high-class hotel offer similar accommodation and service packages (Radisson Blu 2017). Within the particular price range, the hotel guarantees that if customer finds the same level of accommodation and services, but at a lower price, Radisson will cut the pricing down. Thus, it can be stated that prices are set in such a way to be able to become competitive though gaining profits.

The company uses promotion as short-term incentive impact on potential customers. However, more importantly, it serves as a measure to sustain customer interaction. Radisson Blu strives for making personal contacts with clients rather than employing mass advertising. It allows the company to sustain the private level of communication and make it client-oriented (Legrand, Sloan & Chen 2013). Nonetheless, the hotel also conducts sales promotions and keeps customers updated on the latest events by sending regular emails.

Extended Marketing Mix

The elements of the extended marketing mix include such domains as process, people, and physical evidence. Due to the fact that the contact with the staff (people) throughout the client’s experience generates impressions about the hotel itself, Radisson Blu carefully approaches training and monitoring of the employees. All the workers who contact clients undergo thorough preparation and meet the requirements of corporate culture. These measures are necessary to ensure that the staff meets clients’ expectations and contributes to the formation of a positive customer experience throughout interaction (Jauncey & Nadkarni 2014). In addition, the process of furnishing customer service is no less significant.

The impressions that clients receive during the execution of any service affect the formation of a general impression about the work of the hotel. The quality of the process can provoke word of mouth, which is advantageous for the hotel as it helps attract new customers (Jauncey & Nadkarni 2014). Nevertheless, often the service can be attributed to the category of intangible aspects; therefore, it is crucial for the clients to observe the physical evidence of high-class services that are provided. In order for customers to obtain physical evidence, Radisson offers such proof of quality as customer reviews, recommendations, certificates of quality and so on.


The recommendations for improving marketing mix can be concluded to the wider use of media. The company should make effective use of the website to stimulate sales since many customers are reluctant to receive email notifications and might disregard important updates. In addition, the active use of the website will allow and stimulate customers to share their reviews and experiences, which will enable attracting the potential clients (Hoque 2013). Apart from that, company blog would allow Radisson Blu to deliver the value to clients by stressing the benefits it could bring to them (for instance, investigation of new locations, services, promotional packages).


As for employment practices, Radisson Blu resorts to internal recruitment in the majority of cases. Since all the employees are highly skilled and qualified workers, almost every individual can perform various activities (Hoque 2013). Therefore, when a new vacancy is available, the hotel announces it through the internal network and the employees can apply for it.

Importantly, the diversity of the workforce is a crucial aspect for the hotel since it receives guests from all over the world. Thus, such an approach displays that the company encourages and appreciates the diversity and can tailor the diverse needs of its customers. To achieve greater employee satisfaction, the company has introduced incentive compensation system. It implies that employees receive monetary reward when they exhibit an outstanding performance when interacting with clients (Hoque 2013). Apart from that, the hotel awards an employee of the year who has been the most successful when working with colleagues and clients.


Thus, it can be concluded that the company strives for sustaining its spot in the market and surpassing its competitors. It is achieved through a thorough approach towards marketing mix and an attentive approach to the staff and clients. Despite the intense rivalry within the industry, Radisson Blu has been able to attain a great market share and achieve customer loyalty.

Reference List

Hoque, K 2013, Human resource management in the hotel industry, Routledge, London.

Jauncey, S & Nadkarni, S 2014, ‘Expo 2020: What must Dubai’s hospitality and tourism industry do to be ready pre- and post-event?’, Worldwide Hospitality and Tourism Themes, vol. 6, no. 4, pp. 381-386.

Legrand, W, Sloan, P & Chen, J 2013, Sustainability in the hospitality industry, 2nd edn, Routledge, New York, NY.

Lockyer, T 2013, Global cases on hospitality industry, Routledge, London.

Pride, W, Hughes, R & Kapoor, J 2016, Foundations of business, 5th edn, Cengage Learning, Boston.

Radisson Blu 2017, .

This case study on Radisson Blu: Company’s Strategy was written and submitted by your fellow student. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly.

Need a custom Case Study sample written from scratch by
professional specifically for you?

Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar

301 certified writers online

Cite This paper

Select a referencing style:


IvyPanda. (2020, September 13). Radisson Blu: Company's Strategy. Retrieved from https://ivypanda.com/essays/radisson-blu-companys-strategy/

Work Cited

"Radisson Blu: Company's Strategy." IvyPanda, 13 Sept. 2020, ivypanda.com/essays/radisson-blu-companys-strategy/.

1. IvyPanda. "Radisson Blu: Company's Strategy." September 13, 2020. https://ivypanda.com/essays/radisson-blu-companys-strategy/.


IvyPanda. "Radisson Blu: Company's Strategy." September 13, 2020. https://ivypanda.com/essays/radisson-blu-companys-strategy/.


IvyPanda. 2020. "Radisson Blu: Company's Strategy." September 13, 2020. https://ivypanda.com/essays/radisson-blu-companys-strategy/.


IvyPanda. (2020) 'Radisson Blu: Company's Strategy'. 13 September.

More related papers