Position is the place of a product(s) or brand that occupies in consumers’ minds relative to competing offerings. Positioning is the process of developing a specific marketing mix to influence current and potential customers’ overall perception of a brand, product line or organisation. Positioning assumes that consumers compare products based on important features. (Robert and Heath 2012, 629)
2.0 Segmentation Profile
Hotel 81 considers all four major variables of geographic, psychographic, demographic and behavioural to segment their market. For geographic, Hotel 81 is strategically located at near town areas, like Chinatown. This offers tourists an affordable alternative compared to hotels, which are located at town areas. This location makes it easy for tourists to travel around Singapore, as well as attracting them as Chinatown is one of Singapore’s tourist spots. It also has other branches situated at Geylang and Joo Chiat, the well-known red light district areas in Singapore.
Psychographic segmentation is also considered as these areas suit customers who have night lifestyle. According to the Servicescape conceptual framework, customers might stay at Hotel 81 for more reasons than satisfying their physiological need of shelter and sleep. Examples may include parties and intimate night for couples. (Tombs and McColl-Kennedy, 2003).
For demographics, income segmentation is considered. Hotel 81 caters to customers with a lower income, and priced their rooms in a lower and affordable rate. In behavioral segment, Hotel 81 seeks to provide benefits to customers like quality, service and economy. Hotel 81 prides itself as a finalist in numerous tourism and service awards. An one hour free trial of room is also offered to its customers. Light users’ usage rate is also considered to its customers, e.g: providing hourly room service.
3.0 Buying Behaviour
The appearance and atmosphere of Hotel 81’s physical facilities
References: Kim, W.G., Ma Xiaojing, and Kim Dong Jin. 2006. “Determinants of Chinese hotel customers’ e-satisfaction and purchase intentions.” Tourism Management 27: 890- 900. ProQuest Kusum L Lee, W.K., and B.C.Ghosh. 1990. “Strategies for Hotels in Singapore.” Cornell Hospitality Quarterly 31: 74 – 79. ProQuest Lovelock, C Pompper, Donnalyn, 2005. "Position and Positioning." Encyclopedia of Public Relations. Ed. Robert L. Heath. Vol. 2. Thousand Oaks, CA: Sage Reference, 2005. 629-631. Gale Virtual Reference Library.