Three concepts to understand the basis of this article.
The first is positioning about which I wrote previously. This word
shelters the “place” or “position” that our products occupy in the customer´s
head regarding of an intern absence (for more information check Maslow´s Needs
Scale). If you are thirsty, for example, the brand wants you to think about
their product (Coca Cola, Pepsi, etc.) and not the regular commodity: water.
The ideal scheme for the marketing manager of Coca Cola would be: I´m
thirsty, hence I´ll grab a freezing Coke. The core intention is the brand to
pop up in your head first. Remember, it took the company more than a century to
diagram this method. It´s not just about the product, because this has to be
constantly pushed by crossed communication and advertising and developing new
solutions to the always changing consumption habits.
Now, the positioning concept can be spited in two categories: organic
and artificial.
The first classification appeals to a natural status that flows on a
constant rhythm, without additives. The brand is not forced to become highly
recognized rapidly. Means that time is taken into consideration so the brand
can thrive on the right pace, without knocking down phases and to respect the
PLC (Product Life Cycle), which has its stages: the first one is investigation
and development, followed by introduction, then growth, through maturity and
finalizing with declination.
The second definition can be described as the organic antithesis, due to
the imposition of the artificial. It´s forced, the contrary of a natural status
without harmony and equilibrium.
Taking this concept and its two categories to analyze the hotel industry
(especially in Argentina what it applies to most mid-sized hotels): the
competition in the Palermo District (Buenos Aires) became fierce and
belligerent with the boost of Boutique Hotels and their owners had to plan
different and unique strategies to position themselves to reach maximum
occupation as soon as possible. Hence they end up entangled with the artificial
method: they hire third parties (Venere, Expedia, Booking, etc.) to avoid
vacancies. The sooner, the merrier. For this reason they contract enough staff
to satisfy the growing demand.
Depending on others the hotel works on its maximum capacity but
overlooking the actual scenario, there is something evil, which soon or later,
lunges the owner with a strident blow: due to the crescent inflation and a
frozen dollar (actual economic situation in Argentina) new incomes have to be
generated to keep the business structure. In that situation the proprietor
decides to close the third parties´ contract, thinking he made a savvy move to
gather more money, but the entire contrary occurs. The occupation falls drastically.
Why? The hotel has a fictional positioning, because it wasn´t due to its
own merits but the people who chose the hotel which appeared on the third
parties´ website which invest more than 6 million dollars a week just on Google
Adwords. Someone who thought about visiting Buenos Aires went directly to
Expedia or Booking, for example. As the hotel did not generate an organic
positioning in time it reflects the problems it can have.
