Marketing Strategy Analysis In Efforts to Increase Market Share Company

Case Study: Grand Swiss-Belhotel Medan

Johanes Wilfrid Pangihutan Purba, SE., MM

Lecturer of Faculty of Economics Simalungun University

johanespurba@usi.ac.id

Abstract

Grand Swiss-Belhotel Medan is a five-star business hotel located in Medan, where it started
operations on 23 September 2008 with 242 rooms under Swiss-Belhotel International
management. Grand Swiss-Belhotel Medan during 2009-2010 ranks second from the average
market share of five-star hotel in the city of Medan amounted to 23.49% of the existing
market. The occupancy rate of first-class rooms is 71.25% in 2012. In this situation new
competitors will emerge, the competition is expected to increase, especially in the effort to
maintain, compete and seize the existing market share to become the market leader.

The purpose of this study is to evaluate marketing strategies that have been applied
effectively to increase the market share of Grand Swiss-Belhotel Medan. To achieve this
objective, a case study research approach is supported by survey activities of Grand Swiss-
Belhotel Medan guests, amounting to 100 people with is by simple sampling method (simple
random sampling method).

The research method used is qualitative method which is presented descriptively and
analytical tool used consist of, input stage with Internal Factor Evaluation (IFE) matrix and
External Factor Evaluation (EFE) matrix, matching stage with SWOT matrix and decision
stage by using Quantitative matrix Strategic Planning Matrix (QSPM).

The results showed that the promotion factor has a dominant level that is less to occupancy
room that is 2.68. Analysis of external and internal factors using the Internal Factor
Evaluation (IFE) and External Factor Evaluation (EFE) matrix shows that external influences
are greater than internal factors.

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Keywords: marketing strategy, market share

1 INTRODUCTION Competition to get guests in star hotels in
Medan is getting tight following the
In the midst of weak global economic increasing number of hotels in the city of
conditions, the hotel business opportunity Medan. In this case every existing hotel,
in Indonesia is growing. The hotel competing to offer products or services to
business in Indonesia is showing rapid attract the hearts of consumers or
progress, influenced by Indonesia's strong prospective customers, good service,
economy, the growth of new middle-class complete facilities or tariff war through a
society, and low interest rates spur the large discount that competes can indeed be
growth of hotels. The need for hotels is one or a weapon for each- each hotel to
increasing, as evidenced by the increasing win the competition. Medan City as one of
number of hotels and also the number of the entrance gate of foreign tourists
rooms. Starting for meetings between (tourists) and local tourists to North
individuals until large, requiring facilities Sumatra or Sumatra is the main factor
and function room ballroom, the holiday triggers the growth of hospitality business
just enjoy the soft music in the lounge in the city of Medan. Moreover, the area
until the performance of colossal of tourist destinations in North Sumatra
orchestra, promotion of regional (the entrance through the city of Medan) is
specialties, traditional to international as very much, so the level of visits to North
well as many more complete facilities, Sumatra continues to increase. Moreover,
luxury and sophisticated which is a series the position of Medan City adjacent to
of services for the satisfaction of guests neighboring countries such as Malaysia,
who come to the hotel. Singapore and Thailand which is the
For that the hotel will try to maintain the largest contributor of foreign tourists to
existence of its performance to achieve a North Sumatra, so the need for hotels is
certain growth rate. Hospitality services always increasing. Apart from being the
company seeks to seize market share with entrance gate of tourists, Medan City
its marketing strategy and also social which is the center of the economy in
service, with the ultimate goal to get North Sumatra and other areas are able to
maximum profit as well as optimal offer a wide range of facilities that can
customer satisfaction. Therefore, to spoil tourists so indirectly sparked the
achieve these goals the company seeks to growth of hospitality itself. Many tourists
produce a service that is then offered to who want ease in the move and Medan
the market. On the other hand, the market City is able to give answers to all the
(consumer) has needs and wants that needs of tourists so that many of them
require certain tools or means of who choose to stay at hotels that exist
satisfaction. Thus the market will find the today.
most appropriate services and can meet Grand Swiss-Belhotel is one of the five-
the needs or desires of consumers. star business hotels in Medan. Grand
Swiss-Belhotel Medan should always 2 THEORETICAL CONCEPTS
evaluate its performance, especially the
marketing strategy that has been done. Strategy Definition
Guests who come not only to stay, but According to David (2004), that strategy
there is a purpose for business activities. is a way to achieve long-term goals.
In achieving the marketing strategy, the Business strategies may include
hotel should be able to develop a diversity geographic extension, diversification,
and placement strategy in its target market acquisition, product development, market
and be able to provide other features of its penetration, employee rationalization,
competitors, create service creativity as at divestiture, liquidation and joint ventures.
home and meet customer desires. In Strategy is the process of determining the
addition, the hotel should also be able to plans of top leaders that focus on the
develop a map of its product position, in organization's long-term goals, along with
order to occupy a better position than its the preparation of a way or effort how to
competitors. So, the hotel can convince its achieve that goal.
customers that it has special advantages
over its competitors, whether it is quality, Corporate strategy according to Tjiptono
service, and so on. Companies should be (2008) is a strategy that includes all
able to read which competitors are a companies compiled by top management
serious threat to their products. to organize the activities or operations of
an organization that has one or more
Elements of the marketing mix include business units. The business unit strategy
product, price, place and promotion. is more directed to managing the activities
Marketing also includes research, and operations of a particular business
information systems and planning. When a unit. While functional strategy is a
marketer does a good job of identifying strategy within the framework of
customer needs, developing a good management functions (R & D, finance,
product and setting the price, distributing production and operations, marketing,
and promoting the product effectively, the human resources) that can support the
result is an attractive product and a business unit level strategy.
satisfied customer. One of the most
important parameters to assess the success Marketing Services
and profit of the hospitality industry is
Service is any action or activity which
through room occupancy rate. The
may be offered by one party to another,
occupancy rate of the hotel room is
which is essentially intangible and does
calculated by dividing the number of
not result in any ownership (Kotler, 2002).
nights occupied room (room night
occupied) with the number of nights There are several reasons why service
available room (room night available). marketing is necessary:
a. Each service is of different quality and According to SK. Minister of
nothing is exactly the same. Transportation. RI. No. PM 10 / pw.391 /
phb- 77, the Hotel is a form of
b. The level of community life or income commercially managed accommodation,
varies. provided for everyone to obtain lodging
c. The use of services has different services with meals and drinks.
disposable income. Hotel Classification
d. The existence of holiday factors that According to Sulatiyono (2002), the
greatly affect the demand for services. classification of star hotels is in general
e. The growth of the tourism industry based on the following requirements:
continues to increase over time. • Physical:
Definition of Hotel 1. Large / small hotel or lot / least number
The definition of hotels by Hotel of guest rooms:
Proprietors Act, 1956, in Sulatiyono a. Small hotel, hotel with 25 rooms or less.
(2002) are:
b. Hotel Medium, hotel with more than 25
The hotel is an owner-managed company and less than 100 rooms.
providing room for sleeping, food and
beverage service to people traveling and c. Hotel Medium, a hotel with more than
able to pay a reasonable amount according 100 rooms and less than 300 rooms.
to the service received without any special
agreement. While the understanding of d. Great Hotel, is a hotel with more than
hotels contained by Grolier Electronic 300 rooms.
Publishing Inc. (1995), states that: 2. Quality, location and building
The hotel is a commercial establishment environment.
that provides lodging, food and other 3. Facilities available for guests, such as
public services. reception room, kitchen, toilet and public
According to Minister of Tourism, Post phone.
and Telecommunications Decree No. 4. Equipment available for employees,
Menparpostel. KM 37 / PW.340 / MPPT- guests or hotel managers.
86, on the Business Regulations and
Classification of Hotels. Chapter I, Article 5. Quality of the building, which is meant
1, Paragraph (b) in the Decree (Decree) is the quality of building materials used,
states that: such as the quality of the floor, walls,
including the level of purity to the fire, the
purity of the sound coming from outside 2. Increase service productivity, in which
or from within the hotel. service is essentially an economic activity
that generates the time, place, form and
6. Space layout, and size of space. psychological needs that a person needs.
• Operations / Management 3. Extend heat penetration, then provide a
1. Organizational structure with job competitive product selling price with the
description and manual work in writing aim of increasing and maintaining sales.
for each position listed in the organization. Understanding Hotel Marketing and
2. Employment, specialization and level of Preliminary Marketing Principles
employee education are subject to hotel Hotel marketing is an activity that uses
classification rules. strategies and tactics, which are planned in
• Ministry such a way as to convey a 'story' of the
services a hotel can provide, by providing
1. Hospitality, polite and wearing hotel passionate stimulation to the guests to
uniforms. choose a hotel message to compare with
other options from competing hotels.
2. Service is provided with reference to
According to Philip Kotler, hotel
the needs and wishes of guests.
marketing is a science that aims to please
3. For 4 and 5 star hotels, service is open the guests and from the activities of the
for 24 hours. hotel to make a profit.

For the location of the hotel for example,

there are at least four aspects to note,
Hotel Management namely:
According Sulatiyono (2002), the a. Distance of hotel location with airport,
management of the hotel is a hotel trade center, shoping center, mall and
business activities based on the concepts other places of entertainment.
and functions of management.
Management and competition strategies b. Factors of accessibility, namely the
will be related to the following efforts: availability of public transport such as
buses or taxis to and from the hotel.
1. Increased managerial ability to use
management management techniques that c. Environmental factors are safe, clean,
can increase sales volume, reduce comfortable, and the parking lot park.
production failure rate (such as room or
d. Factors completeness of facilities, so
no-show cancellation rate).
that guests become more comfortable stay
for long in the hotel. Therefore the
procurement of facilities such as Effective marketing requires good
swimming pool, tennis court, mini golf, planning starting from determining the
night club, discotheque, pub, sauna or concept of quality, design, packaging,
karaoke will greatly determine the choice price, how to deliver products to
of people why they choose a particular consumers at the right time and amount, to
hotel. how to keep customers loyal to the
products they create.
For that the activities below are the
responsibility of the field of marketing According to Sulatiyono (2002), the initial
are: principles of hotel marketing are as
follows:
1. Marketing research and marketing
planning (Market Research and Planning) 1. The concept of marketing

2. Market analysis, demand and supply When a hotel implements the concept of
(Market Analysis) marketing, then all its activities will depart
from the belief that satisfying the needs
3. Product planning and development and desires of guests is a top priority.
(Product Planning and Development)
2. Market-oriented or guest-oriented
4. Setting target market (Targetting the
Market) If a hotel is market oriented or visitor
oriented then the hotel manager must act
5. Develop marketing strategies in accordance with the marketing concept.
(Marketing Strategy)
3. Meet and satisfy the needs, wants and
6. Establish pricing policy (Price Policy) goals of the guests. To be able to achieve
7. Setting a pricing strategy (Discount long-term goals in a fierce competition,
Strategy) hotels should realize that guest satisfaction
is the key to their success.
8. Develop service concept (The Service
Concept) 4. The existence of a definite market
share.
9. Formulate a marketing information
system (The Marketing Information At first each guest has different needs,
system) wants and goals, this fact encourages the
emergence of the concept of market share.
10. Develop marketing communications It means we are trying to get a group of
(Marketing Communications) people in the target market and market our
products to them.
11. Positioning Strategy
5. Have value and exchange process.
12. Promotions and Public Relations.
Some guests link the value to the price, Increasing the company's market share
but there are guests who consider the price also means how the company deals with
is not a benchmark of value. Price is the its competitors. Furthermore, it is how the
approximate value given by the guest on company is able to maintain the loyalty of
satisfying his needs and wants with what its customers to the company's products /
he has paid. Marketing is a process of brands. Or how the company managed to
value exchange between what the hotel attract subscriptions / consumers from a
offers and its guests. competitor company. A shifting market
share will be largely due to consumer
6. There is a product life cycle. behavior (consumer loyalty to a particular
This concept reviews that hotel products product).
and services move through four stages: (1) Marketing Mix Strategy
Introduction, (2) Growth, (3) Mature, (4)
Decrease. The marketing approach should The decision about the marketing mix of
always be adjusted to these four stages. each company depends on the type of
This is to avoid decline and is the key to company, covering the product produced
achieving long-term success. and the market served. The marketing mix
has an important role in marketing theory.
7. There is a marketing mix. Kotler and Armstrong (2001) define the
Each organization has a marketing mix marketing mix as the set of a set of
that includes factors that can be controlled controlled marketing variables that firms
and initially used to continue the needs of use to produce the desired response in the
a particular group. Furthermore, the target market.
traditional marketing mix includes four These four marketing tools must be
factors: product, place, promotion and combined appropriately in order to satisfy
price. the needs of the target market.
Market share 1. Product
Market share is a proportion of total (total) According Tjiptono (2006), service
industry sales, made by one company products is a form of service organization
within an industry. Market share data is offering aimed to achieve organizational
mainly used to evaluate the company's goals through satisfying the needs and
marketing capabilities. Increase in the desires of customers. Meanwhile,
amount of sales the company must also by according to Kotler (2000), the product
looking at industry sales. For example, the has the meaning of everything that can be
company's sales increased 5% but the offered to meet the needs and desires.
industry's sales increase is 10%, it does
not mean the company's market share 2. Price
increases.
Price mix decisions pertain to strategic d. Public relations
and tactical policies, such as price levels,
discount structures, payment terms, and 3. DISCUSSION
rates of price discrimination among The following is an evaluation of the
different customer groups. According to marketing mix dimensions of Grand
Tjiptono (2006), prices are defined as the Swiss-Belhotel to respondents.
amount of money (monetary unit) and / or
other aspects (non-monetary) containing The Value of Marketing Strategy Mix
certain utilities / utilities necessary to Dimension
obtain a service. Grand Swiss-Belhotel Medan

No. Dimension Value

1. Products 3,88
3. Place
2. Price 4,10
Place is a distribution decision regarding
accessibility of services to potential 3. Location 4,14
customers. This decision includes the 4. Promotion 2,68
decision of physical location,
intermediary, and non-location. Place The table above shows dimensions that
have values above 3 are: product, price,
plays an important role in making
and location. This indicates that the three
decisions in making effective sales or not.
dimensions are the factors that become the
4. Promotion reference of the guests to stay at the Grand
Swiss-Belhotel Medan, while the
Promotion is a form of marketing dimensions or other programs of
communication. Based on Laksana (2008), promotion are still not effective. This is
promotion is a communication from indicated by the magnitude of the weight
sellers and buyers that come from the right is still below 3.0.The Internal Factor
information with the aim to change Evaluation (IFE) matrix and the External
attitudes and behavior of buyers, from Factor Evaluation (EFE) MatrixAfter
unfamiliar to be a buyer and keep in mind separating the available strengths,
the product. In the traditional promotion weaknesses, opportunities and threats, an
mix there are various methods to IFE matrix (strengths and weaknesses)
communicate the benefits of services to and EFE matrix (opportunities and threats)
potential and actual customers, such as: with weights and ratings are
a. Advertising compiled.Internal Factor Evaluation (IFE)
Matrix
b. Sales promotion.

c. Direct Marketing
 Total Total
Rati Rati
Weig Score Weig Score
Internal Factor ng Internal Factor ng
ht (a) (c = a ht (a) (c = a
(b) (b)
x b) x b)
POWER 1. The
1. Strategic provision of
0.101 3 0.302 hotel 0.057 3 0.172
hotel
location facilities is
2. Most less
corporate 0.095 3 0.286 2. Promotion
market that has not
been 0.063 3 0.188
segment
3. Have effective and
executive 0.068 2 0.136 sustainable
business 3. Outsiders
center who do not
4. Hotels joined stay at the
hotel rarely 0.054 3 0.163
in the group
then the visit the
promotional 0.079 3 0.237 restaurant to
program is eat
also assisted 4. Insufficient
by SBI land for 0.052 2 0.104
5. Food at the additional
restaurant facilities
0.060 3 0.180 5. Limited HR
varies 0.063 1 0.063
throughout in marketing
the day 1.000 2.755
6. Image name Amount
as hotel 0.093 3 0.278
business in
Medan
7. Cooperation From the matrix obtained a total score of
relationship 0.076 3 0.229 2.755 indicating that the company already
with other has a good strategy in anticipating existing
companies internal threats. For the factor of strength
8. Ability to obtained the factor with the highest score
gather 0.068 3 0.204 of 0.302 is the location of a strategic hotel.
market
information As for the weakness factor, limited
9. Work skills marketing human resources with the
and 0.071 3 0.213 lowest score among other weakness
experience factors, that is 0,063.External Factor
WEAKNESS Evaluation Matrix (EFE)
 Total Total
External Weig Ratin Score External Weig Ratin Score
Factor ht (a) g (b) (c = a Factor ht (a) g (b) (c = a
x b) x b)
OPPORTU support
NITY 7. The
1. Medan city establishme
is popular nt of 0.060 3 0.179
as a place Medan as a
to hold tourist
meetings, 0.069 4 0.277 destination
conferences THREAT
, and 1. Consumers
organizing demand
national high on the 0.091 3 0.274
events quality of
2. It would be service
better if the 2. Indonesia's
restaurant is high 0.085 3 0.255
promoted to 0.072 4 0.289 inflation
an outsider rate
who is not a 3. Political
guest of the 0.116 2 0.233
and security
hotel situation
3. The growth 4. Target
of shopping markets 0.053 3 0.160
centers and 0.082 3 0.245
that are still
offices focused
increased 5. Competitio
4. The n in the 0.066 3 0.198
potential hospitality
market is industry
large and 6. The quality
the level of 0.075 3 0.226 of
tourist competitor' 0.079 2 0.157
visits to the s product /
city of service is
Medan tend still better
to increase 1.000 2.947
5. Shifting Amount
values and 0.066 3 0.198
culture in
society From the matrix obtained a total score of
6. Business 0.085 3 0.255 2.947 indicating that the company already
laws that has a good strategy in anticipating existing
external threats. The most perceived factor Husein Umar, 2004, Research Methods
for the company to expand the market is for Thesis and Business Thesis, sixth
the better if the restaurant is promoted to printing, PT. Raja Grafindo Persada,
outsiders who are not guests (score 0.289). Jakarta.
While external factors that are considered
most threatening or difficult to overcome Kotler, P. 2000, Marketing Management:
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Kotler, P. And K.L. Keller, 2007,

3. CONCLUSION Marketing Management, Issue 12, Volume
1, Issuer: PT. Index.
Based on the results of the analysis that
has been proposed, obtained some Kotler, P., 2001, Marketing Management,
conclusions as follows:a. From analysis Prentice Hall International, New Jersey.
and discussion of marketing mix known
that the average value of promotion _________, 2002, Marketing Management
dimension has less dominant level to (Translation). PT. Prehallindo, Jakarta.
occupancy room that is 2,68.b. Analysis of Laksana, .2008, Marketing Management;
external and internal factors using the A Practical Approach. Graha Ilmu,
Internal Factor Evaluation (IFE) and Yogyakarta.
External Factor Evaluation (EFE) matrix
shows that external influences are greater Nazir. M, 1999, Research Methods, Third
than internal factors. Printing, Publisher Ghalia Indonesia ,.
Jakarta.

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