Cinnamon Cathedral Hanoi Hotel: Business Strategy Analysis
|✓ Paper Type: Free Assignment||✓ Study Level: University / Undergraduate|
|✓ Wordcount: 2955 words||✓ Published: 9th Nov 2020|
I – INTRODUCTON
Cinnamon Cathedral Hanoi Hotel is a unique hotel located in the center of Hanoi. It’s surprising by the mixture of classical and modern beauty, the consistent combination of European decorative style and Asian smell and materials.
It was born by a passionate businessman namely Nguyen Viet Dung. He came from a quite village Nghia Dan district Nghe An province, Vietnam where is well known for learning and hard-working spirit. He stepped in tourism industry since he was 21 years old as a young and ambitious French freelance tour guide. By amazing effort, he established “Discovery Indochina Company Limited” in 1st January, 2004 at his house’s address: 218/29/22 Lac Long Quan Street, Buoi ward, Tay Ho district, Hanoi, Vietnam with Taxation Identification number 0101433176 (National Business Information E-Gazette service,2004). Through more than 15 years of operation, developing with bigger scale, Discovery Indochina Company limited changed the main office many times and has maintained at number 69, Quan Thanh Street, Ba Dinh district, Hanoi, Vietnam for nearly 10 years (Contact, discoveryindochina.com). It has been taking part in many sectors of hospitality industry as following
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The remarkable successes should be 10 cruises namely “Le Cochinchine Cruises” float on Mekong Delta in the south of vietnam which tend to introduce floating southern cultures in the south of Vietnam (Boat, lecochinchine.com). Secondly, Discovery Indochina Co.,LTD is well known as Trip Advisor who designs creative and impressive trips which focus on the variety of the historical and cultural values and in accordance with the responsible tourism (destinations and prime attractions, discoveryindochina.com). Especially, the most incredible spirit children are Cinnamon hotels. Cinnamon Cathedral Hanoi Hotel located in 38 Au Trieu Street, Hoan Kiem District, Hanoi, Vietnam whichhas two other siblings including Cinnamon Hanoi (26 Au Trieu Street, Hoan Kiem District, Hanoi, Vietnam) and Cinnamon Saigon ( 74 Le Thi Rieng Street, District Number 1, Ho Chi Minh city, Vietnam) and one cousin namely Villa Du Mekong (Hoa Qui, Hoa Khanh, Cai Be, Tien Giang, Vietnam) (contact, cinnamonhotel.net).
This paper only focus on Cinnamon Cathedral Hanoi Hotel in the purpose of analyzing its vision, mission, market segments, and communication channel, as well as the bottleneck and how overcome.
II – VISION AND MISSION
Unlike other great ambitious start up with dream of building the global hotel chain, Mr Nguyen Viet Dzung has his own tastes. He has been growing up and being influenced by French culture during the dominated French colonial period of time. When Vietnam got the independence after 1975 and has gone up to Socialist Republic, many French architectures were damaged or destroyed, a lot of historical and cultural values used to be forgotten. The Cinnamon Cathedral Hanoi Hotel was born in the aim at holding on a little French culture inside Hanoi. The hotel is considered as friendly second home for guests who vibrate the previous gorgeous beauties and excite about the mysterious charms in Hanoi.
The success is not how much money the hotel makes; it is about how satisfaction the customers review. The staffs are expected to get 100% feedback from their guests with 99,9 percent happiness. While most of hotel pay a lot for marketing and advertising, the hotel pay attention in continuous quality improvement. In fact, following the dramatically increase in the number of tourists visited Hanoi, Cinnamon Cathedral Hanoi Hotel expects to earn 15 percent income increase per year without increasing Room Price, but the Room fill-in rate and extra service development.
The vision and mission lead the hotel’s operation via the decoration, the standard of building, the languages using as well as the atmosphere and location. Cinnamon Cathedral Hanoi Hotel is beside closely to the Saint Joseph Cathedral, which is identical French construction. The church, where the guests are able to listening to the bell ring once per couple of hours, appears in the name of hotel. The entrance door’s width is 2,2 meter and its height is 3,5 meter accordance with usual French doors. Every rooms have large windows with natural wind come in. Cinnamon smell appears every corner of hotels from lobby to the closets even on the beds. All receptionists wear “Ao Dai” uniforms which are traditional girl dress and speak fluently French and English. The Hotel promotes traditional performance for example Water Puppet Theater and created the Street food tour which lead guests visit the local people to enjoy the family lifestyle and sample the home-cook and tour guide are staffs, sometimes is receptionist, sometimes is housekeeping.
Cinnamon Cathedral Hanoi Hotel commits with the travellers that they provide friendly and courteous services; everything is in working order as clean and comfortable as possible. They give a pro-nature and eco-friendly stay.
III – MARKET SEGMENTATION
It cannot be denied that Market segmentation is one of the fundamental principles of marketing because the hotel, in fact, is not able to serve all of their customers in a market caused by the diversification of needs and preferences (Journal of Marketing,Vol.21, No.1 (Jul.,1956,pp. 3-8). The correct targeted audience identification plays important role in hotel’s effectiveness and efficiency. There are various uses of the term “Market segmentation” in literature with such a lot of explanation and comparison, mentioning framework in both the current theoretical economic work of Rosen (1974) and Lancaster (1979) and the more traditional economic theory described by Chamberlin (1965) (Journal of marketing, Vo.51, No.2 (Apr.,1987, pp.1-10). By analyzing four main factors including geographic, demographic, psychographic and behavioral will provide the general image of the guests who Cinnamon Cathedral Hanoi Hotel looks for.
Hanoi, Vietnam is located in the center of Asia where takes a couple of hours to fly to China, Korea, Japan, Singapore and others. Therefore, it is reasonable that the number of hotel’s guest accounts for more than 30 percentage coming from Asia such as Korea, Japan, Indonesia, Singapore, especially china tourists when 95 percent Hanoi visitor is Chinese people (Minh,Thu, Hanoi's international visitors increase by 25% during 9 months, hanoitimes.vn). The 60 percentage belongs to Australia, European, especially, French England, and Germany. The remained percentages stand by occasional local tourists or other countries such as Israel, Pakistan, and others.
The hotel focuses on the travellers from above 25 to under 60 years old because coming to busy city as Hanoi, they should be adult enough to travel, independent income to pay, and healthy enough to walk a lot. There is not much difference between male and female visiting the hotel even tourists coming with family or groups of friends or couple because the decoration follows minimalist style with neutral color gamut. The Christians seems prefer staying next to the church because they are comfortable with the bell ring. The hotel only has 8 rooms with a half is double and a half of Twins, it could be added extra beds if the guests prefer stay triple or family have children. According to the standard to star classification, it is only 1 star because of limited number of room, but the quality is closed to 3 stars. The normal size of each room is about 25 to 30 meter square. In the tiny place as Hanoi Old Quarter – the center of Hanoi tourism while local residence lives 3 generations within small 25 meter square house, the dimension of the room is desired space already. Therefore, the hotel’s price is nearly closed to 3-star hotel where users should be from medium income to cover it. Even it costs a little compare to the Hotels closed but because of the excellent services, the safety and security, the customers are ready to pay without any suspicion.
Walking around the tripadvisor.com, it is clearly to see that most of reviews were written by tourists who loves to travel and travel quite often as at least ocean a year. Tracking to nick name Ikuko I who just wrote the review in Cinnamon Cathedral Hanoi Hotel tripadvisor fanpage on September 2019, his timeline clearly described that he traveled and left comment every year (ikukoi701, tripadvisor.com). One of amazing thing in hotel is that the big sector coming to Cinnamon Cathedral Hotels is advised by Friends, family, relatives via word of mouth. Because of the chaos in the e-marketing, the users are doubt about the reality then they prefer to believe the advices from who they know well.
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In general, the customers coming from Europe especially French, Germany or from other developed countries or the Asian tourists who are willing to pay $75 USD per night have very high standard of option. Reading the review of customers is obvious to realize that the cleanliness, the location, the view of the room, the attitude of staffs always get the attention. The extra services, surprising gifts and luckily upgrade are extremely high appreciated.
IV – COMMUNICATION
Cinnamon Cathedral Hanoi Hotel approaches customers via both online and offline. It’s great that the incredible experiences of the previous travellers become the travel tips of the following guests. Cinnamon Cathedral Hanoi Hotel said that 40 percent guests coming from the suggestions of the last visitors. In order to visualize the memories which the guests easily share with their friends, the staffs create a video to record the experience during their stay. For example, in a video: Hanoi Foodie Tour, the hotel staffs ride motorbikes carry the tourist behind and move around Hanoi for tasting the local foods, it is starting and closing by images of the hotels and Hanoi Cathedral Church (Hanoi Foodie Tours, Vlog1, youtube.com). Actually, the hotel takes a huge advantage of marketing while working in the network of Discovery Indochina. The European tourists coming to Vietnam tend to have long trip from the north to the south of Vietnam and they usually using a professional trip advisors and follow their suggestions, then the guests stays in the Cinnamon Saigon will stays in Cinnamon Cathedral Hanoi Hotel because the familiar atmosphere and standard. Quarterly, Discovery Indochina Co.,LTD organizes Volunteer tours for company and invites the tourist who loves the responsible and sustainable tourism which create a beautiful and friendly image for hotel (Responsible travels, discoveryindochina.com).
Being aware of the strong effect of E-marketing, social networks on the attracting customers, the manager of hotel find great benefit on Free-online-marketing. The hotel has not only main marketing channels as website cinnamonhotel.net, discoveryindochina.com, tripadvisor.com, booking.com, agoda.com, vi.hotels.com, hanoi.hotelvietnam.me, yellow.place and others where the finder are easy to look for the information with quick Q&A. Besides, the staffs create many accounts to join in many blogs, take time to write and share about the experiences while travelling to Vietnam and travel tips. By creating many high quality writing or letter, many accessing accounts visit and leave their questions and travel planning. They start with chatting as friends and give suggestion and create the trust before advising to visit the hotels.
V – BOTTLENECKS
Hanoi gets favor from mother of nature with four seasons in a year including spring, summer, autumn and winter which promote the variety of scenery and local foods and beverages. Unfortunately, the benefits of the weather bring the drawbacks from anyone working in the tourism in Hanoi because of the seasonal characteristic. In fact, More than 80 percentage of income collect from the fall (October) to at the end of the spring (March) in the following year. How to keep the loyal staffs stay with the hotels and still maintain their income in the Low season are questions which make headache to the hotel manager.
The Hotel manager builds solidarity culture in business, hotels seems a home for staffs take part in. The outdoor activities and volunteer connect the members together. The rooftop is repaired as a room for any staff works overnight or temporary lives. Hotels pay insurance for staffs working at least 3 continuous months in the hotels and they guarantee to work with at least 1 years. The manager applies cross-training method and multiple functions which help any staff can switch the position or replace easily. During the summer, hotel receives university student for internship period of time to prepare potential labor resource for high season and the students will be trained in actual working environment, practice English and French with tourists
Low season is great chance for hotel to open and test new services. Hotel focuses on training courses to apply new technique in service as massages, bartender, cooking. The Staffs in the hotel are encourages to lead the tours as cooking class, walking street food tours, bicycle street food tours, motorbike street food tours, home visit, shopping tours. Furthermore; the staffs are free to keep tips if the tourists leave in the front office with available envelope.
The hotels located in the Hanoi Old quarter get the same trouble with Cinnamon Cathedral Hanoi Hotel. Some of hotels use the ground floor as coffee shop, several hotels reduce price to welcome domestics customers or low budget packet tours. Most of them open souvenir shops in front of the doors or open new types of service. Some options use temporary staffs or retired labor in the purpose of reducing cost in this period of time.
VI – CONCLUSION
In conclusion, Cinnamon Cathedral Hanoi Hotel currently deals well with its seasonal characteristic struggles. The clear and correct market segmentation, marketing and positioning strategies leads the hotel operation in the right way. The hotel is fair play by concentrating on sustainable values such as building the high quality services more than reducing cost to attract customers. Thanks for great location, nice decoration, friendly attitude, surprising extra caring services and volunteer activities, hotel build remarkable beautiful images in customer’s eyes. However, the satisfaction of the customer at the moment could not guarantee to future success of the hotel. When customer’s demand and need change rapidly, and the market are more and more competitive, it is essential to continuously improve services, renew but preserve the soul and unique points of Cinnamon Cathedral Hanoi Hotel.
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