VICTORIA COURT - Case Study Analysis by R090205

VICTORIA COURT

Case Study Analysis

By: R090205 (CTG)

Situation
Even though the management is exerting their best effort to shift their image from a "motel" to a drive-in hotel, still there is a negative connotation not only on their place but on the whole industry. Considering their moves on changing the uniforms of their staff, using the hotel lingo, etc., changing the name from motel to drive-in hotel will not change their image. The stigma attached on the industry has been there for many years now and seems will be there for unknown period of time unless drastic and major transformation or even miracle will happen to change the perception of Filipinos on the industry.

Problem
Does management has the right strategy of changing the identity of Victoria Court from a "motel" to a drive-in hotel?

Alternatives

1. Victoria Group must accept the fact that they are in this industry with negative connotation no matter how they try to change their image from a motel to a hotel type. Market segments A and B are not the target markets of a motel. These market segments would rather spend their money to a hotel than taking the risk of being connoted as motel goers. The management must know their right primary target market (PTM).
2. Victoria Group will still continue to change the image of their place. The management will offer more promos for families, additional facilities for kids and lengthen the minimum number of hours of stay so customers will enjoy more during their stay.
3. Victoria Group must try to relocate away from their nearby competitors so people would somehow change their impression on the company.

Decision
Considering all the alternatives, the first option is the most realistic and urgent need of the Victoria Group. Before Victoria Group can even start formulating their strategies, they must first accept the fact that motel industry in the Philippines attached negative connotation of being the place they go for a particular reason, and they must know their correct Primary Target Market.

Action
To know their primary target market, Victoria Group must conduct a thorough market research. Market segments C and D are the common market for this industry. Thus, Victoria Court must still continue to innovate their place to differentiate them from competitors but consider spending at lower cost so that they don't need to increase their rates. Through this, they can easily convince the lower market to patronize their place especially those people who cannot afford to stay on four-star or five-star hotels. They should still continue to give discount cards or privilege cards where they are known of, for those customers who keeps coming back to maintain them.