From Evernote:

Victoria Court Case Analysis

Facts from the case:

Positioning: 

Wanted to create a positive image as a drive-in hotel. Wanted to enhance the image.

They wonder: Is repositioning (Changing of image) the key? Or are there other key elements?

Started as a drive-in hotels but commonly known ass motor hotels.

Location of the first hotel, Anito Lodge, is in Pasig City. 1976, 3 more motels in Pasig and Caloocan.

Early 80s, more sites in Sta Mesa and Pasay.

The company divided the areas covered into districts: North and South; to provide for a more efficient running of the sites.

1980s, they adopted the term motel.

1986, sites were divided between two sons.

Archie King: First Victoria Court. (Pasig)

Logo: Classy looking lady; Cautious and husshed pose: Privacy, Courtesy, Prompt and Efficient Service, World-Class Facilities, State-of-the-art Housekeeping.

At the time the paper was written, there are 9 motels.

Tenets: Quality, Service, Cleanliness, and Value.

Motels have become so bad a term that Velhagen couldn't even say he was in the motel business.

Situation Analysis

Victoria Court wanted to change the image of motels and remove the stigma and kinkiness attached to it. Their strategy is to reposition themselves as a high-end, high-quality drive-in lodge. Since Victoria court wanted to create a positive image and enhance its image continually, they took several actions to effect its strategy. Though there was no mention that sales were being eroded due to public stigma, they wanted to retain customers rather than lose them. There were more and more motels being built around metro manila. 

Mission: 

• Improve the image of the industry.
• Offer custom-made, top class, lodging facilities.
• Pursue Excellence in 
  • customer service,
  • product development,
  • people development,
  • contribution to community, and 
  • in dealing with business partners.

Problem: 

• Negative image of a motel.
• Employees did not buy into the proposition.

Strategy: Reposition

Action

• Employee Team Building - to align employees with management (Mission)
• Appeared more professional: Roomboys wear Polo Barong to look neat.
• Got rid of kinky themed rooms
• Discount Cards were controlled, only given to complainants. Managers' orientation was to give away discount cards to bring in people.
• Used hotel lingo in lieu of motel lingo
• Standard and Deluxe rooms to replace Garage/non-garage rooms; Suite is retained.
• Maintenance, improvement, and innovation
  • Rooms were renovated every 3 years.
  • Bought 2 old model automobiles to be used as bed
• Improved Food and Beverage 
• Carried premium alcoholic drinks (Offered wine)
• Targeted A & B Market
• Focused on attracting married couples through thematic rooms. (Saunas & Jacuzzi)

Problem Analysis

It is not clear for Victoria Court whether repositioning is the key to effectively change public stigma, they also wonder if there were other key elements. Some employees doubt repositioning and changing public perception will succeed. To them, a motel will always be a motel. While it is true that public stigma on motels will remain as long as there are naughty motels, what employees fail to see is Victoria Court's shift towards being a wholesome motel; not public perception of motels. The actions of Victoria court are okay, however, it's incomplete. Couples need to get out and do more activities together. Expecting couples to just stay in their room for the duration is like assuming they want to stay there in secrecy. If they really want to change public perception on their drive-in lodge, they should provide option to go out and do more. Since they are targeting the Class A and B market, the location should be reevaluated. They should offer a complete set of services aimed towards achieving a wholesome image in a location where A and B market abound. They merely have 9 at the time the case was written, some in the wrong locations. If they need to shift, it has to be complete. The shift, however, is sound.

Victoria court is the industry leader. Their logo - the classy silhouette of a lady in a cautious hushed pose, which to them symbolizes Privacy, Courtesy, Prompt and Efficient Service, World-Class Facilities, State-of-the-art Housekeeping - is readily recognized by all, albeit the negative connotation of the hushed pose. Their logo may be slowing down their shift as it, by itself, give out a naughty connotation.

Alternatives

The very problem they defined: Negative image of motels is not really a problem by itself. The case could have been more clear on this if a slowdown of sales is explicitly expressed. A brief mention of managers issuing discount cards to bring in more people is a sign that they could be having trouble getting people to come in. Perhaps this is the reason why they wanted to reposition. In the Philippines, motels almost equal intimacy in secrecy; it's public perception; it's almost a buzzword. A shift to a "wholesome" drive-in lodge, they believe, could bring in better sales; attracting married couples to a night of fantasy and adventure. They could achieve this better by providing more facilities reinforcing family oriented activities or intimate activities. They can create a Victoria Court Adventure Center, each site offering a different theme. A Jungle Safari theme in malate with able facilitators to care for kids. Standard activities like watching movies or watching national geographic in the "jungle". They can also offer a shopping center in Victoria Court and a romantic restaurant inside Victoria Court. This makes Victoria Court a truly wholesome drive-in adventure lodge, attracting married couples and families to make their fantasies come true.

If they choose to remain to be a drive-in lodge, they could chose to put up more drive-in lodges and target businessmen and vacationers. They can choose locations near airports, parks, tourist spots, and business centers. This, however is a poor option as they are targeting a small chunk of the market that big hotels already tapped into.

Decision

The shift is a sound strategy because more and more "motels" are being established. A drive-in lodge to experience a theme or a fantasy is attractive. This would give a real good and unique value proposition.