Brand Management

Given the strength of third-party distribution portals and the
push toward commoditization, the hotel brand will become more
important than ever, particularly in the context of developing
customers’ loyalty. To draw again from the package goods
industry, Unilever and Procter and Gamble (to cite just two
examples) maintain a powerful brand lineup despite powerful
forces for commoditization. The hotel industry can draw from
these companies’ brand strategies. As explained in a recent
brand management roundtable at Cornell, P&G benchmarked
eight diverse brands that had grown far faster than their
competitive set (including Heineken, Louis Vuitton, and Zara).
The study found four critical elements of brand building :
• having an ideal,
• focusing on fundamentals to remain true to the brand’s
heritage,
• recognizing the importance of leadership (in the form of a
brand champion), and
• seeking engagement with customers
Hospitality Trensd 2012, EHL