a. Who would be the target market attracted to the offer of gohotels.ph? b. Identify the marketing mix of gohotels.ph and compare it with other value hotels. What are their strengths and weaknesses? How could gohotels.ph offer an amazingly low price as low as P388 plus vat per room night? C.

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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CASELET
1. gohotels.ph, a property of Robinson's Land, began test marketing
its value hotel in May 2010 at its building along Edsa beside
Robinson's Pioneer Street. It has about 200 rooms in the Edsa site
but has chosen to have 60 to 100 rooms in each of their subsequent
sites in the provincial areas. Its pricing is unique because it utilizes
the revenue management model of the airline industry where
prices would vary depending on demand, in this case, occupancy
numbers. Thus, a 16 to 22 square meter room can command a price
as low as P388 plus value added tax (VAT), or as high as P3,000
plus VAT, averaging about P1,550 plus VAT per room per night
booked via internet. While the prices are low, the room boasts of
a comfortable bed with two types of pillows (hypoallergenic and
chiropractic), a clean private bathroom with rain shower, free wifi,
LCD TV, convenient location with safe surroundings secured by
CCTV and safety cabinet.
On its first month of its test market and despite using mostly viral
marketing and press write ups to create awareness, it experienced an
occupancy rate higher than most hotels -- 60 to 80% on most days with
two of those days fully booked, thus creating an innovative business
model in the hotel industry with new basis of competition.
a.
Who would be the target market attracted to the offer of
gohotels.ph?
b. Identify the marketing mix of gohotels.ph and compare it with
other value hotels. What are their strengths and weaknesses?
How could gohotels.ph offer an amazingly low price as low as
P388 plus vat per room night?
C.
Transcribed Image Text:CASELET 1. gohotels.ph, a property of Robinson's Land, began test marketing its value hotel in May 2010 at its building along Edsa beside Robinson's Pioneer Street. It has about 200 rooms in the Edsa site but has chosen to have 60 to 100 rooms in each of their subsequent sites in the provincial areas. Its pricing is unique because it utilizes the revenue management model of the airline industry where prices would vary depending on demand, in this case, occupancy numbers. Thus, a 16 to 22 square meter room can command a price as low as P388 plus value added tax (VAT), or as high as P3,000 plus VAT, averaging about P1,550 plus VAT per room per night booked via internet. While the prices are low, the room boasts of a comfortable bed with two types of pillows (hypoallergenic and chiropractic), a clean private bathroom with rain shower, free wifi, LCD TV, convenient location with safe surroundings secured by CCTV and safety cabinet. On its first month of its test market and despite using mostly viral marketing and press write ups to create awareness, it experienced an occupancy rate higher than most hotels -- 60 to 80% on most days with two of those days fully booked, thus creating an innovative business model in the hotel industry with new basis of competition. a. Who would be the target market attracted to the offer of gohotels.ph? b. Identify the marketing mix of gohotels.ph and compare it with other value hotels. What are their strengths and weaknesses? How could gohotels.ph offer an amazingly low price as low as P388 plus vat per room night? C.
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