Marketing CW01

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Marketing

Course WorkⅠ

-Caravelle Hotel -(Ho Chi Minh City, Vietnam)

Spring 2011

Date: 25th, March, 2011



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ACKNOWLEDGEMENTS

Thank to Ms Do hoi Yen for replying our e-mail gladly and supporting us. This report has

been made possible generally because of the help given by Ms Do hoi Yen, Managing Anemployee of marketing department of Caravelle hotel, therefore we would like to extend our

admiration and thanks to Ms Do hoi Yen. Her rapid reply is as well as providing important

information such as many types of promotional tools and history of the hotel. Her email was

helping us so much. Caravelle hotel had aided in putting together this report.



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CONTENTS

• ACKNOWLEDGEMENTS................................................................................ 2

• INTRODUCTION .............................................................................................. 4

• BACKGROUND ................................................................................................ 5

- History of hotel ................................................................................................ 5

- Stage of lifecycle ............................................................................................. 5

- Products and services it sells ........................................................................... 6

- Compare and contrast to theory ....................................................................... 7

- Promotion tool ................................................................................................. 7

a) Advertising ................................................................................................. 7

b) Sale Promotion ........................................................................................... 8

c) Personal Selling .......................................................................................... 8

d) Public Relation ........................................................................................... 9

e) Direct marketing ................오류! 책갈피가 정의되어 있지 않습니다.

• RECOMMENDATION .................................................................................... 10

• CONCLUSION ................................................................................................ 11

• REFERENCING ............................................................................................... 12

• APPENDICIES ................................................................................................. 13



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INTRODUCTION

The author chooses to research about Caravelle Hotel which is in Ho Chi Minh City,

Vietnam. The hotel is 5 stars hotel and it is located perfect place for business, shopping,

entertainment and historical site. One of the benefits of the hotel is locating 8kilometres from

international airport. 7 percentages of the guests are from domestic that use restaurant for

meeting hall and 93 percentages of guests are from international. 80 percentages of the

international guest visit Caravelle Hotel for business and the rest of percentages of the

international guest are Vietnamese.

Caravelle hotel has two restaurants, two bars, two lounges, a gaming club that is Las vegas

style and international boutique shops. In addition, the hotel got „World‟s Best Awards of Travel+ Leisure‟.

The purpose of the course work is learning how the hotel is marketing their hotel and

applies the marketing theory to realities. Therefore, we can realize that how the hotel is

worked for marketing.

The authors put some information of Caravelle Hotel that are history of hotel, stage of

lifecycle, products and services it sells, compare and contrast to theory, promotion tool and

the author‟s opinion and recommendation.



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BACKGROUND

History of hotel

Caravelle hotel is established in 1956, when the city was known as Saigon with different

name which is “Le cantinat” belongs to Intercontinental. The reason why the name of the

hotel is changed is Vietnam War in 1955. In 1976, Le cantinat is changed to Caravelle hotel.

In 2002, Caravelle hotel hosted the cast and swaggered filming Graham Greene novel “The

Quite American”, starring Michael Caine, Breendan Frasser.

During the 1960s, Caravelle hotel was home to the Australian embassy, the New Zealand

embassy, and the Saigon bureaus of NBC, ABC and CBS. On the morning of August 25,1964, at around 11:30 am, a bomb exploded in room 514, on the floor occupied mostly by

foreign journalists who were all our on assignment. Nine rooms were damaged; windows

were blown out of several cars parked in the street and a number of people were injured

without fatalities. (http://en.wikipedia.org/wiki/Caravelle_Hotel)

After the fall of Saigon in 1962, the hotel was taken over and operated by the government

and renamed the „Doc Lap Hotel‟ which is reborn individually hotel. And also, it remained

until 1976, when the Caravelle name was launched again.

Nowadays, the Caravelle hotel is famous for keeping the history of Vietnam between thetourists or customers who have stayed at the hotel.

Stage of lifecycle

By looking at the percentage of occupancy, which reached 70%-80% even during low

season, Caravelle Hotel is at maturity stage of the lifecycle. They keep doing advertisement

via famous magazine (e.g Saigon time, Cosmopolitan) , newsletter, and Internet to let

everyone know about the hotel. Although it‟s an old hotel, but mostly of the customers who

stayed there will give a good impression about the hotel. Starting from the service, the room,the bathroom, the housekeeping, and bar.(Tripadvisor.com)



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Products and services it sells

Caravelle Hotel has 335 guest rooms and suits with whole view of Saigon River and Ho Chi

Minh City. The floors and rooms are divided to non-smoking and smoking. In every single

rooms, there are a bath tub, Wi-Fi internet and throughout the hotel, a LCD Television

(movie channels are operating 24 hours), tea and coffee making facilities, a coffee/espresso

machine, bottled mineral water and it replenished daily, a iron and a ironing-board and baby

cribs upon request.

LCD projector, welcome tea or coffee, choice of set or buffet lunch, note pads and pens,

white board and markers, TV, video player, DVD player, Screen, Podium, microphone and

laser pointer in the banqueting room and meeting room that are elegant and stylish functionareas.

In Caravelle Hotel, there are two restaurants which named Nineteen and Reflections, two

bars named Martini and Saigon Saigon, two lounges called Signature and Lobby and a

gaming club which named Club Vegas.

The restaurant Nineteen is casual and cheerful. And buffet offered at breakfast, lunch and

dinner. Most of guests like the lively atmosphere of the restaurant. One of the city‟s most

popular meeting places and it placed in ground floor.

The restaurant Reflections is elegantly fine dining. It is placed in 3rd floor. And it is opened

only for dinner.

The Martini bar is adjoined Reflections restaurant. Local music band perform with piano,

violin, guitar and saxophone every 19:00. It is placed in 3rd floor as the Reflections restaurant.

The Saigon Saigon bar is in 9th floor so guests can watch the sun goes down over easily. The

bar is one of iconic bar and live entertainment nightly.

Signature lounge has great views of the opera house. That‟s why guests enjoy tea or coffee

and light refreshments with the perfect views. It is in 9th floor with the Saigon Saigon bar and

bright and relaxed environment is the best. Lobby

lounge is close-up view of the opera house. There are several leather armchair and Cuban

cigar and liqueur. It is placed in ground floor.

A gaming club, Club Vegas is operated like a casino. However, the guests really enjoy Club

Vegas even the size is smaller than casino. It has international gaming tables and lasts slots. It

is in 1st floor.

In addition, Caravelle hotel has a small shop for guests‟ shopping in the hotel. The guests

can buy the products of Louis Voitton, Gucci and DKNY etc in the shop.



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Compare and contrast to theory

“Giving out sales promotions undermine the image if exclusivity or prestige that you

wish to associate with your product or company“(Stettner, 2008), thus Caravelle Hotel

must be able to balance their sales promotion so it will not give a negative impact to the

image of the Hotel.

“A marketing strategy should be centered on the key concept that customer satisfaction is

the main goal” (ivythesis, 2009), as stated there, Caravelle Hotel has to think about

customer satisfaction as the main goal instead of just advertising all the time. Because by

giving a good satisfaction to the customers, they also can help us promote the hotel by

word of mouth, which is sometimes more effective rather than public marketing, and

moreover it is free.

“Every customer is VIP” ( Caravelle, 1976). Caravelle Hotel has applied this quote since

1976. So for them, they will treat every customer like a VIP because all of the customers

are important no matter he/she is staying in single standard room, suite room, or deluxe

room. By giving a bad impression to just 1 customer, it may bring a big disaster to the

company.

Promotion toolPromotion tool is an important in marketing strategies. It could help the demands and

suppliers meet each other in order to satisfy the demands of customer. Promotion tool could

help the hotel have more benefits and prestige through the strategies of products, prices and

allocations. It also considered as a tool for communication between the customers and the

hotel in order to keep the relationships with the VIP guests and so does the new one. For the

Hotel Caravelle Saigon, promotion tool is not only science but also arts. All the employees

must be very creative, flexible and skillful during the marketing process to reach the target

with the lowest outflow. The promotion tool of the Caravelle Saigon, like many other hotels,

is included:

I. Advertising

Advertising is the paid for non-personal communication in order for Hotels marketing teams

to bring the information of their products and services to the customers. According to

Caravelle marketing team, advertising is considered as a major activities of promotion tool

for attracting the attention from the customers, persuading them about the benefits of hotel

products that could make them thinking about coming back and using the hotel services such

as SPA, restaurants, bars, shopping malls etc. Using advertising method will being the push

factor for hotel to meet the demands from their customers so that they may find interested in



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the hotel during their “in-house” period. There are many ways for advertising included

newspapers, magazines, TV, radio, etc.

The advertising method could bring huge profit for the hotel because of its advantages;

using this method first the marketers must analyze their target market. Since the target marketof the Caravelle is people with high standard life, the foreign businessmen, and Vietnamese

who live outside country, the hotel marketer did advertising through television broadcast,

famous magazine and even in the internet that YouTube is one of examples.

Although advertising is a good method, it‟s also have many negative sides for example ,the

cost for doing advertising is expensive, besides that, it‟s could be happened when the people

who interested in these ads are not from your target market, it could be a very important

influence to you hotel profit, services. When using advertising method through broadcast and

radio, maybe the customers cannot go back to the important points in you‟re delivered –

information if they miss it. And normally people hardly pay attention on advertising, they

normally doing something else while watching TV, listening radio or reading newspapers, so

maybe the information that you want to deliver cannot go to your direct customers

II. Sale Promotion

Sale promotion is possibly considered as” every activity could help increasing the benefits

from customers through the short term promotion”. Marketers normally use the sale

promotion method when there are many competitors, when there are a lot of products or

services that have similarities in quality, function and price. Understanding the role of Sale

promotion, the marketing department of the hotel always promotes the customers many

special services or packages every month. For example, they give the customers room

promotion that stay for 3 nights, the guests will have 30% discount, or about the voucher on

food and beverages the guests, especially the VIPs one will have many discount on food and

beverages on the restaurants or bars during the time they stay at the hotel.

Using Sale promotion for a long time could be both positive and negative. It depends on its

attraction to the customer. If the customers find their interest in an old promotion, repeating

the purchase from them may give some profit for the hotel budget. On the other hand whenthe promotion is devalued the brands in the eyes of customer, it‟s now being a negative effect.

According to the sale department of the hotel, Sale promotion could be separated into

different kinds such as voucher, coupon, refund and rebate, gifts for the premium package etc

III. Personal Selling

In this method, the seller contact directly to the customer to persuade them using the

services of the Hotel, the products is selling after the seller talks to their target customers face

to face to by telephone. This method could help the marketing team to. Using personal sellingmethod may help the hotel saving time talking to the potential customers. The employees can



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have more chance to know about the information of the services they going to sell to their

customers, they‟ll be able to answer the question from guests and also have ability on

satisfying customers‟ demands. Personal selling is effective or not, it all depends on the

talents of sellers,

However, using personal method, the hotel may have to spend a lot of money for the cost,

it‟s would be many expenses in selling, because when the advertising cost can be up or down

but the force size is probably harder to vary. Base on the financing report of the hotel, they

have to spend more than $100 for one call. So that personal selling is also considered as the

most expensive method in promotion tool. That‟s also the reason why the Caravelle didn‟t

use these tools for worldwide

IV. Public Relation

Public Relation is the process that we use to create a positive image and customer

preference through third-party endorsement. Public relation provide many advantages for

hotel , it‟s also the cheapest way to do advertise the hotel to customer, moreover it is the most

effective part of promotion mix, and also the most believable method since all the

information is delivered form the third party.

One example of the Public Relation in Caravelle Saigon hotel is the hotel invite the agent

from many famous magazine such as Saigon time (the most famous English magazine in

Vietnam), Business traveler, etc coming to the hotel and enjoys the upscale services. The

result of this is Caravelle being the top hotel for businessman in Ho Chi Minh City, top 500

hotel of the world voted by Leisure+travel magazine. Moreover, participating in many social

charity and activities such as, earth hour, or nearest the major sponsor for charity for Japan

could help Caravelle have the sympathy from customers, it‟s would be the good things for

this hotel to spread out their brand name for attracting potential customers from not only

domestic but also the international market

However, using Public Relation can cause many disadvantages. First of all, it‟s would be a

risk of losing control during one event. For instant, in 1964, at 11:30 AM, a bomb exploded

in the hotel, at that time, there are a lot of foreign journalists, luckily no one died but thisbomb damaged 9 rooms and the hotel had to stop for such a long time then it had to change

the name to “Independence” until 1975. One more things is that during an event, the ceiling

of the hotel was suddenly collapsed it make 2 people hurts, and this situation has a bad effects

on the hotel Caravelle income on 2008. So we all could see that, PR is the most effective

method in marketing , it‟s also could bring us many trouble if we don‟t organize it well,

because if the bad thing happen during your event, you cannot control the information that

spread out rapidly and it‟s going to harmful for your products



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V. Direct marketing

Last but not least, the direct marketing is the system of marketing using one or many tools foradvertising to know how the products might influence to the customers (US DMA) Using this

method could bring many advantages such as

Contacting the right target market

Building relationship with the customers directly

The marketing strategies of the hotel can be invisible

The marketing team can also predict the result when using this method foradvertising

There are so many ways using direct marketing method. Caravelle hotel usually sentnewsletters for the customers directly to inform them about the promotion of the hotel for

every month via email, telephone, sending catalogue, online marketing etc. In the direct

marketing, all the strategies in non-public, the messages are usually sent to specific customer.

It‟s an interactive marketing tool since it allow dialogue between the marketing team and

the consumers, all messages sending can be altered base on the guests‟ response. In 2009,

there are more than 10000 emails that sent to the customers using direct method form

Caravelle which brings huge benefits for the hotel income especially in January and February

since it is New Year and Tet holiday

RECOMMENDATION

Appearing for more than 50 years, the Caravelle hotel Saigon still the most luxurious hotel

all over Vietnam, by using effectively promotion tool for attracting the customers, the

marketing team of this hotel is successful in bringing a large number of customers for the

hotel in every year, which means that, the hotel could have giant profit from these marketing

tool. However, not every marketing strategies is perfect, we also recommend them to change

a little bit from their marketing plan

Pay more attention on the domestic travelers, because, the Vietnamese also want to stay in

a luxury hotel with upscale service for their vacation trip.

During the time when conducting an important event, everything must be 100% under

control so that it would be nothing wrong happen.



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CONCLUSION

Caravelle is one of the famous hotels in Ho Chi Minh City, Vietnam. Although it has a

tough competitor of chain international 5 star hotel such as Intercontinental, J.W Marriot,

Sofitel, Hyatt and Riverside, Caravelle still able to survive and outnumbered its competitor in

winning the guests as we can see the occupancy rate reached 70-80% overall.

By using better way of marketing, public relation and other related promotional tools,

Caravalle will be able to attract more local customers.

The continued use of effective various promotional tools will bring more beneficial to

Caravelle. Moreover, it also can enhance the prestigious name of Caravelle.





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19) David Jobber, the McGraw Hill company, London, Principles And Practice of Marketing

4th edition.

20) Kotler, P. (2006) Marketing for Hospitality and Tourism. 5th Edition. USA, Pearson

APPENDICIES

CERTIFICATION OF SOP CARAVELLE HOTEL OUTLOOK

THE MAP OF CARAVELLE HOTEL A PORTCARD FROM CARAVELLE HOTEL



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ENTRY OF CARAVELLE HOTEL

A POSTER OF CARAVELLE HOTEL

A POSTER OF CARAVELLE HOTEL 2

MAIN TARGET MARKET OF CARAVELLE HOTEL

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Marketing CW01