1. Situation for Lilypad : Lilypad manages 12 hotels and resorts. These hotels are iconic properties located in beautiful areas. Each of these boutiques has to deal with the management of the customers, and each hotel is quiet independent in order to take some decisions. Problem: The issue is that when a cutomer goes in one Lilypad Hotel, he usually doesn’t go and visit another Lilypad’s Hotel. That’s mean there is a very bad customer loyalty. Andre doesn’t have found the right balance between the corporate brand and the properties.
In order to solve this problem, Andre Cleary thinks about positioning the hotels under one corporate brand. He thinks that with this strategy, Lilypad could dim its cost and attract more customers to visit other Lilypad Hotel. Does he really have to create connection between each hotel? 2. Brand analysis Brand salience: Lilypad Hotel are premium Hotels situated in exceptional place. When a customer expects for iconic property with food of quality and architectural details, its needs are satisfied with Lilypad Hotel. Brand performance:
These hotels are sophisticated and stylish place. They offer spectacular city views and a customer service very efficient. Each property has an implicit promise: no other hotel in the area will offer to guests the same kind of culturally travel experience. Brand imagery: Lilypad can target business travellers but also leisure travellers. However, both of them have to be culturally curious and in the upper class. The value and the promise of Lilypad is to offer cultural experiences and beautiful views. Brand judgement: Lilypad Hotels are luxury hotels which mean high quality.
This quality is notified by added value like exceptional views and quality customer service. Brand feeling: When a customer goes in one of Lilypad Hotel, he feels certain that he will be provided an exceptional place; he trusts the property because he knows that it will respect its expectation. Brand resonance: Lilypad Hotel doesn’t really have a real community. We notice that the customer loyalty is very low. For instance, only 5% of visitors to a Lilypad Hotel had stayed at more than one of the company’s other properties, which is very weak. Target market:
We have noticed that each property doesn’t target the same market. On the whole they target quite rich person. But then, it can be business travellers, leisure travellers or adventurous person. This is crucial to have an identified target in order to create a coherence. 3. Different brand: (I don’t really understand this part so I tried to sum up) The Maritime: It is the company flagship hotel. Betsey T Hale manages it with its own money, and she wanted a spacious hotel. The decor feels of the old captain’ haunt, and there are fresh cut flowers and high threat counts.
This means that this hotel is just like she wants; it doesn’t look like other hotel. La Plaza: The marketing and sales managers think that Lilypad leave huge opportunities. They think that a solution would be to invest a significant amount of money in marketing, to increase cross-property. They want big connection between properties, and they don’t have the same wish as Betsey to be unique. Rio: This is more a guest house than a hotel; it is for ecominded and adventurous person. This place doesn’t fit to customer exigencies.
It needs more things for business travellers, like TV channel, wifi or food from their home-country. 4. Recommendation: Build a corporate brand: Building a corporate brand will can create a long-term value to Lilypad. With this strategy, the company will can cross-promote the properties under one brand; it will have a more important impact on consumer behaviour. The idea to create common objects is evident. However, it requires caution. For instance, if they create Lilypad’s bathrobes, they don’t have to be made in China, because it would decredibilize this premium brand and detract the customer experience.
Although putting Lilypad’s name on towel or other still influence consumer behaviour. Then, Lilypad will share its public relation between its properties, in this way, they will benefit of strong relationship with the press. In addition, with this strategy, the properties will can offer common services and buy supplies in bulk. They will be linked to Lilypad’s Hotel and Resort. For example, this connection will can be made with Internet, Lilypad website has to promote all of the properties and provide information and events.
The brand will have to opportunity to create a community with the Social Networks. However, in order to use this strategy, it is crucial to clarify what the brand represents in order to be coherent in construction of the corporate brand identity. The clarity is something which is crucial in these situations. We have seen that the marketing approach of each property works for the moment, however, if a corporate brand is created, it is important to create a clear corporate brand strategy.
It will be important to clearly set up the brand and keep its promise. We also have to underline that building a corporate brand can represent a financial risk. In fact, if one of the properties has a really bad image, the entire group will feel this effect and be affected. This is why it is important that any linkages don’t compromise the value of each property. Sum up: Andre needs to proceed with caution in order to create connections among its brands, but this require any sacrifices and an important clarty.