In recent years the brand has moved squarely into the spotlight as the key to success in the hospitality industry. Business strategy once began with marketing and incorporated branding as one of its elements; today the brand drives marketing within the larger hospitality enterprise. Not only has it become the chief means of attracting customers, it has, more broadly, become the chief organizing principle for most hospitality organizations. The never-ending quest for market share follows trend after trend, from offering ever more elaborate and sophisticated amenities to the use of social media as a marketing tool-all driven by the preeminence of the brand.Chekitan S. Dev's award-winning research has appeared in leading journals including Cornell Hospitality Quarterly, Journal of Marketing, and Harvard Business Review. He is the recipient of several major hospitality research and teaching awards. A former corporate executive with Oberoi Hotels & Resorts, he has served corporate, government, education, advisory, and private equity clients in more than forty countries as consultant, seminar leader, keynote speaker and expert witness. Hospitality Branding brings together the most important insights from the author's many years of research and experience, all in a single, affordably priced volume (available in both print and eBook formats). Skillfully blending the knowledge of recent history, the wisdom of cutting-edge research, and promise of future trends, this book offers hospitality organizations the advice they need to survive and thrive in today's competitive global business environment.
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Extrait
h o s p i ta l i t y b r a n d i n g
he large body of researc publised by scolars in te dynamic field of os-pitality management as been slow to find its way into te classroom and te strategic, managerial, and operating practices of te ospitality industry. In te new series Cornell Hospitality Management: Best Practices, Cornell Uni-versity Press will publis sort books tat present, in distilled form, current researc findings on best practices in te ospitality industry. As recognized experts, te volume editors are ideally qualified to identify te best available researc and present it in a tougtful and coerent way tat serves bot te pedagogical needs of te classroom and te practical needs of te ospitality industry. he first books in te series will address ospitality branding, uman resource management, finance, operations and revenue management, food and beverage management, and design.
c o r n e l l h o s p i ta l i t y m a n a g e m e n t b e s t p r a c t i c e s
All rigts reserved. Except for brief quotations in a review, tis book, or parts tereof, must not be reproduced in any form witout permission in writing from te publiser. For information, address Cornell University Press, Sage House, 512 East State Street, Itaca, New York 14850.
First publised 2012 by Cornell University Press First printing, Cornell Paperbacks, 2012
Printed in te United States of America
Library of Congress Cataloging-in-Publication Data Dev, Cekitan S. (Cekitan Sing), 1959– Hospitality branding / Cekitan S. Dev. p. cm. Includes bibliograpical references and index. ISBN 978-0-8014-7819-2 (pbk. : alk. paper) — ISBN 978-0-8014-5203-1 (clot) 1. Hospitality industry—Marketing. 2. Branding (Marketing) I. Title. TX911.3.M3D48 2012 338.4'7910688—dc23 2012024820
Cornell University Press strives to use environmentally responsible suppliers and materials to te fullest extent possible in te publising of its books. Suc materials include vegetable-based, low-VOC inks and acid-free papers tat are recycled, totally clorine-free, or partly composed of nonwood fibers. For furter information visit our website at www.cornellpress.cornell.edu.
Clot printing Paperback printing
10 9 8 7 6 5 4 3 2 1 10 9 8 7 6 5 4 3 2 1
Contents
chapter 1
chapter 2 chapter 3 case study I
chapter 4 chapter 5 chapter 6 case study II
Preface
Part I. The Hospitality Brandscape
Hospitality Marketing and Branding:
Past and Future
Branding Challenges and Opportunities
Branding and the Internet
Carnival Cruise Lines
Part II. Global Branding Global Brand Expansion Branding beyond Borders Brand Strategies RitzCarlton Bali
Part III. Strategic Branding chapter 7 Brand Equity chapter 8 Brand Positioning chapter 9 Brand Extensions and Customer Loyalty case study IIITaj Hotels, Resorts, and Palaces
Part IV. Branding Execution chapter 10 Managing Marketing and Branding Relationships chapter 11 Brand Franchising chapter 12 Brand Partnerships case study IVGroupon
Acknowledgments
Bibliography
v
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3 13 21 30
41 51 63 72
83 93 102 112
123 134 143 154
165 169
Preface
his book distills te essence of my tinking about ospitality marketing and branding and brings te results of my academic work to a wider audience tat I ope will benefit from its insigts. Its contents cover over twenty years of scolarly labor, presenting studies undertaken wit te elp of many collaborators, wose contributions I ave acknowledged elsewere in te book. Altoug te capters are organized around four general temes, taken togeter tey represent an evolution in ospitality marketing and branding studies tat as brougt te development and management of tebrandsquarely into te spotligt as te focal point of teoretical analysis and industry success. Today scolars and industry leaders view branding in a new ligt. Wereas ospitality business strategy once began wit marketing and incorporated branding as one of its elements, suc strategy now begins wit branding and incorporates marketing witin te larger enterprise. he brand as become not only te cief means of attracting customers; it as, more broadly, become te cief organizing principle for most ospitality organizations. Over te past two decades, industry observers and te public alike ave witnessed an explosion of brands in every market segment and in every sector, from otels to restaurants to resorts to cruise lines. As a result te consumer can be easily overwelmed by a sea of sameness in wic it is increasingly dif-ficult to distinguis one brand from anoter, one positioning approac from anoter, one splasy media campaign from anoter. Brands unceasingly searc for te latest marketing ook and fall all over temselves to catc te con-sumer’s eye—and wallet. his never-ending quest for market sare follows trend after trend, from of-fering ever more elaborate and sopisticated amenities to novel, cross-sectoral brand affiliations to te use of social media as a marketing tool—all driven
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by te preeminence of te brand. Hospitality firms today use teir brand identities to generate brand value, oping to leverage te presence of a brand in te marketplace to attract customers, breed customer loyalty, and, ideally, create passionate lifelong brand campions. his book captures te most critical developments in te quest for brand value. Eac of its four parts includes presentations of empirical studies fol-lowed by a related case study offering an important application or illustration of tat part’s teme. Part I, “he Hospitality Brandscape,” begins in capter 1 wit an overview of ospitality marketing and branding studies over te past two decades and a look forward to te trends tat will define te next decade. hat is followed in capter 2 wit te igligts of a brand roundtable eld at Cornell University’s Center for Hospitality Researc in wic industry leaders and leading scolars sared ideas about te use of branding to drive business survival and success. Capter 3 ten presents an analysis of te use of Internet flas sales to market otel stays. Part I closes wit a case study reviewing te efforts of Carnival Cruise lines to differentiate itself in te burgeoning cruise market and offering suggestions for branding success. Part II, “Global Branding,” features tree studies tat offer insigts on ef-fective strategic approaces to branding in te era of globalization. Capter 4 discusses and analyzes strategies for global market entry; capter 5 compares te merits of francising and management contracting; and capter 6, acknowledg-ing te trend toward adopting a market orientation in global branding, analyzes te coice between a competitor orientation and a customer orientation. he case study for part II presents te main outlines of a fascinating legal case, sum-marizing te issues involved in a lawsuit brougt by a Ritz-Carlton otel owner against te parent brand, wic ad placed a co-branded resort carrying te Bulgari name (guided by Ritz-Carlton and initially promoted as suc) on te island of Bali. Part III, “Strategic Branding,” delves more deeply into branding as strategy. Capter 7 introduces an approac to managing brand equity using a system tat measures suc equity quantitatively. Brands using tis tecnique would be able to assess teir brand equity more effectively. Capter 8 offers an analytical framework wit wic brand marketers can assess and manage teir market positioning witin a competitive set by mapping tat position on a four-quadrant grid. Part III also includes, in capter 9, an analysis of te use of brand extensions to generate customer loyalty. he case study for part III
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p r e fa c e
describes an effort by a property under te Taj brand in Goa to undertake service innovation as a means of upgrading a property’s market position. Part IV, “Branding Execution,” offers tree studies tat examine te relationsips tat otel brands develop wit te properties tat carry teir brand names directly to te customer. To manage te use of its brand image to attract customers to its properties, a brand must develop effective relationsips—brand partnersips—wit its property owners and managers. Capter 10 argues tat understanding ow to reduce or eliminate opportun-ism is best approaced from a relational excange perspective rater tan from a transaction cost perspective. Capter 11 reports evidence tat francisor-francisee relationsips work best wen bot parties communicate openly and interact armoniously in a strong partnersip. he study presented in capter 12 sows evidence tat brand partners can reduce opportunism by adering to a set of relational norms. Finally, te part IV case study follows a small tour operator offering winery tours in te Finger Lakes region of New York State as it weigs te benefits and costs of partnering wit te online marketing brand Groupon. he purpose of tis book is to make all tese findings from scolarly researc available to anyone wit an interest in ospitality management and marketing, particularly tose wo appreciate te role tat branding as assumed. It strikes a balance between te wisdom of recent istory and te cutting-edge promise of future trends. Wile te principles recommended ere migt not guarantee survival or success, te researc sows tat tey can provide a competitive advantage to ospitality brands seeking to survive and trive in an increasingly cluttered brand world.