The GoodNight Inn’s Strategy
Anton Cahoon is the manager of the motel GoodNight Inn. During the first two years of operation occupancy levels have remained far below average level for the motels classification. Therefore, he wants to make a change and explore opportunities to increase the occupancy levels and profitability.
We will use the following framework to help analyze and evaluate the possible strategies Anton should follow, ultimately coming to a final marketing strategy and reasons for pursuing that strategy:
Customers: He currently does not focus on a target market, instead relying on people to find his motel as they head towards the tourist area.
From the aspect of the motel itself,…show more content… From this analysis we can conclude that the target market in which promotion should be aimed at is people who have higher incomes and thus able to afford the benefits of requiring additional facilities. We can also identify that they are longer staying visitors with quite a large percentage booking in advance; therefore tools such as a website would be necessary to attract them.
Evaluation of Potential Strategies:
Strategy 1: Make minor changes to the current operations. A few minor but potentially beneficial changes Anton could make to his business in terms of marketing strategy would be the use of more promotional materials and advertising signs. However this method, without the use of a website, can be seen as having little impact on attracting a wider customer range. Furthermore minor changes cannot solve the whole problem, therefore major changes such as the addition of a restaurant or recreational facilities can be seen as the best option to pursue higher revenue and sales.
However it is not realistic for him to achieve this on his own without an established brand image such as Holiday Inn behind him. He himself lacks the experience and managerial skills of running a restaurant. If he did indeed include a restaurant in his hotel it would seem that he would have to employ a manager to run it, however the costs would outweigh the potential revenue earned. Without joining a chain, creating a website would be costly and not