Using the case of Shangri-la hotel, this study will highlight the specific branding and brand positioning strategies used by this particular hotel company. In relation to the need to serve the price-sensitive customers a.k.a. the brand switchers, this study discussed the advantages and disadvantages of using a separate brand name. At the end of this study, the bsuiness benefits associated with the use of brand extension strategies were tackled in details.
Shangri-la is one of the most well-established hotel brands worldwide. In 1971, the first Shangri-La hotel was built in Singapore (Shangri-La, 2013a). Eventually, the company decided to expand its business operation in other countries. Throughout the entire Asia Pacific region, Europe, North America and the Middle East, Shangri-La hotels and resorts own at least 72 five-star hotels under the brand name Shangri-La (Kuhm, 2011; Shangri-La, 2013b). With the use of brand extension, the company is using the brand name “Kerry” and “Traders” to serve the hotel needs of people who are more price conscious (Kuhm, 2011).
Branding is more than just the use of a company name, logo, or a trademark (Kotler, 2000, p. 404). In response to the business success of Shangri-la Hotel as a brand, this report will focus on discussing and analyzing how this particular company was able to create competitive advantage with the use of effective branding strategies. As part of going through the main discussion, this report will first discuss the branding strategies used by Shangri-la Hotel and how this company was able to benefit from its branding strategies. Eventually, this report will tackle the significance of branding and brand positioning in the contemporary international tourism. Prior to conclusion, this report will identify and discuss potential problems or limitations which may have impede the business success of Shangri-la Hotel. Based on the