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Tuesday, February 21, 2012

(MGM Mirage) Marketing Mix Strategy


7.RECOMMENDATION FOR MARKETING MIX STRATEGY

7.1 Product:

According to (Chan, Wong 2006) customers’ behavior on choosing hotel is affected by good hotel products and services. Therefore, MGM Mirage should provide the best products as well as services to meet or exceed customers’ expectations, so as to attract more customers. MGM Mirage is highly advised to enhance the product element in their marketing mix strategy. However, MGM Mirage’s products and services should be consistently offered in Singapore and Las Vegas. So that MGM Mirage can easily create a consistent image in customers’ mind (e.g. developing their casinos and hotels according to themes).
For meetings/conventions, MGM Mirage should accommodate delegates with elegant meeting rooms
. Each room need to be fully equipped with speakerphones, data ports, plus built-in screens, wireless access, projectors and audiovisual equipment, which will allow for convenience. It will also be viable to provide event rooms so that customers are able to hold their events there (e.g. wedding parties).

MGM Mirage can also offer luxurious guest rooms and suites, all appointed with custom furnishings, fine art, and conveniences such as high-speed Internet access, multiple phone lines, a minibar and electronic drapes that make customer feel comfortable. Additionally, they also need to build their unique botanical garden and water-dancing fountain in Singapore that is best known as water and music show, consistent with the Bellagio in Las Vegas.
As we know, Singapore is one of the most popular tourist destinations in Asia-Pacific region and customers have various choices of many luxury and famous hotels in Singapore. However, there are no water-dancing fountain and botanical garden offered by any hotel in Singapore. Thus, by doing this, MGM Mirage has their own advantages and might attract many customers including Singaporeans and foreigners.
Golf courses, spa, pool, bars and restaurants services/facilities, and high-class retail stores such as Dior, Chanel should be also being offered to customers.
Casino business is legal in Singapore; so therefore MGM Mirage can consider opening their casinos here. They have a high chance to gain customer’s positive impression and to easily satisfy customers’ need for gambling due to their many prior experiences in the casino industry.
In order to ensure high quality service to attract more customers and to satisfy or exceed customers’ expectations, MGM Mirage should provide both basic and augmented customer services assisted by friendly and well educated staff.
Basic customer services include: efficient customer registration and check out, prompt housekeeping services, clean guestrooms and providing customers with various means to make room/restaurant reservations (e.g. email, internet, phone).
Augmented customer services could include the implementation of waiting rooms (when they are queuing for registration) equipped with entertainment mediums, offering a wake-up call service (with a human voice rather than taped message), providing weather reports for the day, delivering a free glass of milk and a plate of homemade cookies to guests in their rooms or providing gifts (without having to be prompted), etc.

7.2 Price

(Chan, Wong 2006) claimed that good products and services could enhance customers ‘willingness to accept high prices. Therefore, MGM Mirage is suggested to implement the premium pricing strategy in their marketing mix due to their unique and high quality services and products provision. However, this strategy is fairly short term. Therefore, MGM Mirage is not advised to use this premium pricing strategy to compete in long-run in Singapore because; there are many competing luxury hotels and resorts here (i.e. two casinos/resorts have just newly opened).
MGM Mirage can use value-pricing strategy where value-priced products are priced a bit lower than premium products. MGM Mirage is also possible to use premium-pricing strategy at the beginning to test the market in Singapore. Then, when many competitors are competing and entering into the hotel as well as casino industry, MGM Mirage can switch to value pricing strategy and reduce their price or offer customers some promotions to compete more effectively in the tourism industry in Singapore.
Besides using price strategies, MGM Mirage should keep maintaining and improving their products and services provision, which will enable them to attract more potential customer and retain existing customers.
MGM Mirage’s customer target segments are mainly middle and high-income earners who place value on higher priced products and service. Therefore, they need to test various pricing levels of its products and services from premium-pricing strategy to value pricing strategy. This will lead them into finding the right pricing level, which will help maximize their profits.  

7.3 Promotion

There are many ways to create public awareness and interest through promotion strategy. When MGM Mirage first enters the tourism industry in Singapore, they should hold a conference and make a public announcement stating their presence. They could give also provide listeners with free brochures with detailed information about MGM Mirage.
(Chan, Wong 2006) stated that people are more influenced by hotel advertisements on TV and in travel magazines so on. So MGM Mirage can practice their promotion strategy in the media such as TV, radio, and newspaper, Internet or even sending messages to mobile phones, in order to advertise itself. They also can sponsor some important events in Singapore or other nations to create awareness. Sales promotions (special discounts) will also be needed at the beginning of special festivals/holiday seasons (Christmas, Lunar New Year).
In addition, MGM Mirage would also need to create their own Singapore website, which can provide separate specific information about their products and services. Another way to encourage customers to patronize MGM Mirage more often is to provide customers with loyalty programs (e.g. loyalty card that will give customers a certain privileges: restaurant / room rental discount). 

7.4 Place

(Chan, Wong 2006) commented that convenient hotel location is the one of influential factor for customers’ selection behavior. Therefore, MGM Mirage should choose an appropriate and convenient location with in Singapore: in order to attract more customers and ultimately, reap more profits.
The Singapore government has proposed a
new waterfront city at Tanjong Pagar, Singapore’s central business district: which allows for convenient access to public transportation and has a high volume of pedestrian and vehicular traffic. The new waterfront city could be developed and integrated with waterfront housing, hotels and others lifestyle attractions. It is definitely an excellent and viable location for MGM Mirage to expand its operations and ownership in the near future, Committee Proposes New Waterfront City At Tanjong Pagar (2010).

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