Case Study: Major Brands – External Marketing

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Case Study: Major Brands – External Marketing

Case 1: Hotel Brand Positioning (An External Marketing Example)

Before Hiring Ethridge

A new hotel brand had strategically positioned itself on the industry price-continuum in the low-mid-scale position, in-between a mid-scale hotel and an economy hotel. The rationale was to take away market share from the older brands in the mid-scale segment by offering a higher quality product at a slightly lower price, while taking away business from the older economy brands by offering a better product at a slightly higher price.

After Hiring Ethridge

The company asked Ethridge to conduct an image study to confirm whether the market perceived the brand to be positioned this way relative to competition. Ethridge conducted our Marketing Opportunity Analysis study and made two important discoveries.

  • First, the market perceived the quality (price/value) of the new hotel to be so good that it rivaled some of the upper-mid-scale hotels, well above the intended lower-mid-scale position.
  • Second, people who had traditionally been staying in the older, more run-down mid-scale brand hotels were willing to pay more for the value of this new brand to stay in a newer, higher quality hotel.

These discoveries led the new brand to increase its price point (average daily room rate) and re-position itself in the upper-mid-scale position, supported by a national brand image positioning advertising campaign. As a result of discovering that the perceived price/value of the brand allowed it to charge more, the hotel was able to be far more profitable than management originally intended the brand to be. Furthermore, as a result of this increased profit margin, the hotel brand was able to see more franchisees on building hotels of this brand. This caused the brand to be one of the fastest growing hotel brands in the world.

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