FACULTY OF ARCHITECTURE, PLANNING AND

SURVEYING UNIVERSITI TEKNOLOGI MARA

CAWANGAN PERAK, KAMPUS SERI
ISKANDAR BSc. (HONS) CONSTRUCTION
TECHNOLOGY

PRINCIPLES AND PRACTICE OF MARKETING

(MKT420)

ASSIGNMENT 2: CASE STUDY OF Shangri-La

Hotels (Malaysia) Berhad

Shangri-La Hotels (Malaysia) Berhad

NAME:
AMIRUL AMRI BIN ZAMRI
(2017772373)
AP 256 5A

PREPARED FOR:
SIR JAMALUDIN YAHYA
Table of Contents

1.0 INTRODUCTION.....................................................................................................................1
2.0 MARKET SEGMENTATION STRATEGIES..........................................................................3
3.0 MARKETING TARGETING STRATEGIES...........................................................................4
4.0 MARKET POSITIONING STRATEGIES................................................................................5
5.0 RECOMMENDATION AND CONCLUSION.........................................................................6
7.0 REFERENCES..........................................................................................................................7
1.0 INTRODUCTION

In spite of growing rivalry in the domestic and global market, strong guests’ demands, fast
progression of technologies and on-going economic uncertainties, Shangri-La Hotels
(Malaysia) Berhad (SHMB) is still poised for success. The outlook of Shangri-La hotels
businesses for 2014 appears to be encouraging. In a highly competitive industry, Shangri-La
hotels continually honoured worldwide recognition for their extraordinary service and Asian
hospitality. For instance, in 2015 Shangri-La Hotel Kuala Lumpur was named the Top Hotels
in Malaysia, Top Hotels for Romance, Top Luxury Hotels and Top Hotels for Service by
TripAdvisor Travellers’ Choice Awards.

Furthermore, Shangri-La Kuala Lumpur has once again retained the position as one of
the best eco-friendly hotels in Asia by winning the ASEAN Green Hotel Award 2014-2016
for the fourth time running, having previously been awarded the awards in 2008-2010, 2010-
2012 and 2012- 2014. Three other SHMB such as Shangri-La Tanjung Aru Resort & Spa,
Kota Kinabalu, Shangri-La Rasa Ria Resort & Spa, Kota Kinabalu and Shangri-La Rasa
Sayang Resort & Spa, Penang were also honoured with this award. During the twelve months
to 31 December 2014, SHMB registered marginal increase in the revenue to RM513.679
million from RM511.225 million recorded in 2013. Specifically, Shangri-La registered higher
revenue of RM487,458 from hotels and resorts segment in 2014 compared to RM485,487 in
2013.

Throughout 2014, SHMB generally enjoyed more favourable market condition as

leisure and business travel continued to grow at a healthy pace. The reinforcement of its
leadership position and competitiveness within the industry by maintaining and enhancing the
quality of its portfolio through on-going capital investment programmes, underpinned by
product and service innovation, while maintaining unrelenting focus on delivering the highest
standards of service to guests definitely improved the financial performance and operational
effectiveness. In today’s highly competitive and rapidly evolving market, numerous hoteliers
are still facing several challenges.

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 Hence, why certain hotels succeed in a dynamic competitive environment while rest
fail? The answer might be simple and straightforward, but it is not easy. Hotels that grow and
change are hotels that know how to build resilient strategies that secure and sustain
competitive advantage. The notion of strategy building and sustaining competitive advantage
are at the very heart of business success. In view of that, this case is about the true
competencies of Shangri-La hotels in overcoming the challenges in the 21st century based on
the right strategy formulation, market segmentation, targeting strategies and positioning
strategies to achieve the corporate goals as well as helping Malaysia to attain high income
nation in 2020.

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2.0 MARKET SEGMENTATION STRATEGIES

Basically, companies cannot avoid the process of segmenting and targeting their market
nowadays. Because market segmentation is dividing the market in to smaller group so
companies could target the customer and consumer easily and develop the right product to
satisfy market need and wants. This could probably bring companies to reach higher places
and achieve higher sales and profits. Bata market segmentation is comprised of demographic
and psychographic.

2.1 Demographic segmentation

Demographic segmentation is market segmentation according to age, race, religion,

gender, family size, ethnicity, income, and education. Demographics can be
segmented into several markets to help an organization target its consumers more
accurately. With this type of segmentation, an organization can categorize the needs
of consumers.

2.2 Psychographic segmentation

When its obvious groupings of target segments seem to have radically different needs
and responses to offerings and messaging, this is a major indicator it is a good time to
look at psychographic segmentation. This method is a powerful way to market the
same product to individuals who otherwise seem very heterogeneous. Many expert
marketers say this approach will ultimately yield the greatest payoff, in many ways:
purchase amount and frequency, lifetime value, loyalty, and more. Finally, once its
completed the segmentation, it will be easy to develop and execute against marketing
personas – which basically brings each segment to life for everyone involved in
crafting different parts of marketing plan.

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3.0 MARKETING TARGETING STRATEGIES

Hotel Shangri-La is a multi-segmented market. So it is using Differentiated target marketing

strategy. Hotel Shangri-La Company has covered the whole industry hotel market with
its different types of segments, offers and services. Whatever the situation of, Hotel Shangri-
La is there to serve. It has every kind of room. If high class, high income people want to have
a luxurious room. Hotel Shangri-La can fulfil their demand. If a lower class, low income
people want a room just to cover sleep for a night; Hotel Shangri-La has something to serve
them also. By offering product and market variations to segments, Hotel Shangri-La gets
high sales and a stronger position within each market segment. Developing a stronger
position within several segments creates more total sales than undifferentiated marketing
across all segments. By using this strategy, Hotel Shangri-La is also making huge
amount of profit worldwide.

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4.0 MARKET POSITIONING STRATEGIES

Positioning is customer’s perception of a product in relation to alternatives on

the market. It’s being an important part of marketing strategy, positioning has been given due
attention in Hotel Shangri-La marketing strategy. Hotel Shangri-La is positioned as superior
quality, peace, attractive and nice viewer. Hotel Shangri-La “it is in our nature” .Sometimes
consumers are overloaded with information about products and services. Customer’s attitudes
towards Hotel Shangri-La services and products regularly observed and measured. It helps
Hotel Shangri-La identify the scope for new services and also reposition the current. To have
a better position in people’s mind, Hotel Shangri-La has differentiated their brand from
other competitors. Their product quality differentiates them from other competitors
easily. People believe that they will find best product there without any doubt.

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5.0 RECOMMENDATION AND CONCLUSION

In brief, from the analysis we know that market segmentation targeting and positioning are
very useful in marketing for product success. Hotel Shangri-La Company is the leading
multinational services and product accessory in the world by positioning itself as a peaceful
place, high quality and affordable product. The company need to have information about
current market situation and also give concentration to the customer needs and wants to make
a marketing research for making the product successful.

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7.0 REFERENCES

BozidarJakovic. (2014). Marketing and Commercial Activities Offered on Croatian Five-Star Hotel
Web Sites. Procedia Engineering, 112-120.

DariuszDabrowski. (2019). Market orientation and hotel performance: The mediating effect of
creative marketing programs. Journal of Hospitality and Tourism Management, 175-183.

Pelsmacker, P. (2018). Digital marketing strategies, online reviews and hotel performance.
International Journal of Hospitality Management, 47-55.

Plaza, M. (n.d.). 4 Ps Of Marketing. Retrieved June 1, 2020, from Mage Plaza:

https://www.mageplaza.com/blog/4-ps-of-marketing.html