Business Strategies For Frenz Hotel In Malaysia

Frenz Hotel: Market Entry and Expansion Strategies

The purpose of the following report is to draw upon the various ideas on the several business strategies in the hotel and hospitality industry. The business strategies are very important for making a place in the market and the complex business environment of the contemporary times. The hotel and hospitality industry has become a very competitive industry for the past few years and it has become quite difficult to make strong grounds in this industry properly. The organizations that enter this industry will always take some time to settle in and increase their market share effectively.

The organization that has been chosen for this report is a very new one in the hostel industry. It is the Frenz Hotel in Malaysia. In this report, the various business strategies will be discussed for the chosen organization. The market entry strategies and the subsequent expansion for the organization will also be discussed for this organization as well. The macro environment and the micro environment for the organization will also be discussed. The various issues that the organization might face will be highlighted for the betterment of the organization. The ways the organization could improve their amenities and services will be focused as well.

The chosen organization for this paper is the Frenz Hotel at Kuala Lampur in Malaysia (Frenzhotel.com.my 2018). This hotel has been opened very lately and the market entry strategies for this hotel are very important for them. This is an international hotel. The location of this hotel is at the Jalan Tuanku Abdul Rahman and Jalan Masjid India Shopping square. The area is a very populated one and thousands of tourists come to Malaysia every year to quench their thirst of travelling new cities and countries. The location for this organization is the Golden Triangle that is considered to be the most populous marketplace in the Central Business District.

The hotel is very much furnished as per the international standards. It has around 86 boutique styles furnished rooms and the designs are very prolific and made to attract the luxury loving customers. The location is so much favorable for the customers since Petronas Twin Towers and Bukit Bintang shopping and entertainment hub is not far from the place (Frenzhotel.com.my 2018). The tourists can enjoy good rooms, quality food and proper luxury as they desire in this hotel. As per the mission of the hotel, they always focused on providing the ‘Malaysia Boleh’ or the ‘Can-Do’ service that will attract the customers for their best kind of services (Frenzhotel.com.my 2018). According to the experts, the hotel staffs are very sincere to their works and they always keen on providing the customers with the supreme services indeed.

The guests are the most important for them and they look to satisfy their needs and desires in the most ways indeed. They do not leave any opportunity to make their guests feel the perfect comfort. This will be the most important thing for them to discover (Perreault, Cannon and McCarthy 2015). They use the latest technology for the communication with the customers and their internal employees in the best ways. As per the scholars, this becomes helpful when they face any problems and they have to make the proper arrangements to mitigate their problems. They also try to keep the price of their rooms at an affordable price so their guests can book the rooms to get a compact and comfortable family experience.

Frenz Hotel: Amenities and Services

In order to assess the business strategies of the organizations like the new market entrant Frenz Hotel, it is very much important to discover and analyze their internal environment as well. They are looking to develop their market share and brand equity by providing the best facilities to their customers while they are very much concerned about the welfare of their services and amenities. As discussed by the several scholars, the brand equity can only be gained if they improve their services as per the needs of the customers. The customer feedbacks and ratings will be very much valuable for them (Perreault, Cannon and McCarthy 2015).

• The Frenz Hotel has a very strong infrastructure that will cater to the needs of the guests in a fantastic manner. This thing will be very much important for the organization to provide the best services to the customers for the future betterment (Baker 2014).
• The natural beauty is excellent for which the customers are attracted towards them. The customers look for the special things that will be very much valuable for the fulfillment of their experiences. As per Solomon et al. (2014)this will be very important to earn the trust of the customers or the guests.
• The multi-cultural aspects for the hotel are also a very important aspect for the future success and market expansion for the hotel. The employees of the organization belong to several ethnic backgrounds and this has come to be one of their major strengths indeed. The collectivism is their main strength area and they are very good at working among the cultural diversity (Solomon et al. 2014).
• The accommodations for the guests are awesome in this hotel. The transport facilities are abundant since the location of the hotel is located at the heart of the country capital. The experts have recommended the factthat these transport facilities between the hotel, airport and the main locations of the city are very frequent for the advantage of the guests.
• English is the language that is generally used to communicate with the foreigners. The local people have a very good knowledge of English and this language is widely spoken for the benefit of the European and American guests (Solomon et al. 2014).
• According to the critics,the boutique hotel category will give them the proper improvement for the brand image. Thus their brand image will surely improve.

• The profit margin is very much low for the people in the hotel. Though this is an international hotel, the GDP of the country has not reached a high in the last few years. Therefore, the economic growth of the overall Malaysia is very slow indeed (Armstrong et al. 2015).
• One important thing has been observed in this scenario that the service quality of the hotel has not been so much up to the mark for the organization in the past. This is why the experts have suggested that they will have to work on that as well.
• The food quality has been criticized in some of the review ratings by the guests. This has created a negative impression on their brand image.

• The Frenz Hotel in Kuala Lampur have several opportunities before them to improve their services for the best interest of their management (Armstrong et al. 2015).
• They can increase their brand equity by shifting their advertising techniques more on the technology based solutions. In the words of Solomon et al. (2014),This will surely impact on the better and positive ways for the hotel.
• There are many historical sites in the country. The hotel authorities can start a package for the customers so they can go on to travel those places by the arrangement of the hotel itself. This will create a good impact on the customers (Fifield 2012).
• However, they can also opt to increase their services and qualities for the guests by accessing the Budget Carrier. This will surely improve their quality and lead them to have the competitive advantage (Hawkins, Mothersbaugh and Best, 2013).

• The regional safety has been considered as a major threat to the operations of the organization in the best ways indeed. The various things like the life threatening diseases and the natural disasters will also impact negatively on the smooth flow of work for the organization (Fifield 2012).
• The country is an island country located on the bank of the ocean. The scholars have saidthat the effects of Tsunami might affect their business and turn it upside down as well.
• The rate of the tourists might fall down owing to these things as well. The degradation of the environment will also have a negative impact on their operations badly. The pollution has been a main cause for the hotel and tourism industry in Malaysia. This will impact negatively for the Frenz Hotel.

The analysis of the external environment for the organization is very much important for the organization Frenz Hotel as well. The various issues in the external environment could be analyzed and their survival in the boutique hotel category could be evaluated properly (Hawkins, Mothersbaugh and Best, 2013).

The various elements will be discussed in this section for the PESTEL analysis on the Frenz Hotel

Malaysia is a democratic country. The various factors could be evaluated on the basis of the interference of the Malaysian government on the various issues they face. They have several challenges in operating the boutique hotels. Some of the critics have suggested that the company will look to implement the several things to formulate their strategies. These strategies will help them to get an edge in the competitive environment (Martin and Schouten 2012). As the scholars have said, The taxation policies, the various legislations for the hotel industry within the country and other things would be very much important for the organization to focus on. The ethics of marketing designed by the Government will surely help them to gain an insight on how they could fix their strategies. The organization would like to enter the complex market as they will surely look to improvise the various challenges for their benefits as well (Gordon 2012).

Malaysia is considered to be a country where the open economy is very much evident. This is why the various issues will be discussed on the background of that as well. The economic growth of the country is not strong and this has been the main reason for the backdrop of the Frenz Hotel in the international level. As Gordon (2012) has suggested that the competition is very much fierce for the boutique hotels. It has become quite difficult to increase the market share since there are many problems regarding it (Huan and Sarigöllü 2014). One important aspect has been raised in this segment that the Frenz Hotel will look to keep the prices of their rooms down. This is because they want to be available to all sorts of people in the market environment as well. According to the experts, They should take certain strategies by which the organization could gain the profits by making two segments of the rooms like the low cost rooms for the middle class travelers and the high budget rooms for the business class travelers. This will surely cater to increase their profits in the best ways as well. They have to give a percentage of their maintenance costs to the government as well (Huan and Sarigöllü 2014).  

Internal Environment Analysis

Malaysia is a country that has people from the different ethnicities and the different classes. Thus integrity in the social structures can be observed in this country. As per the critics have suggested the people from different religions like Muslim, Hindu, Christianity and others exist together in this country. This has been their major strength in providing the best kind of services to all the people indeed. The organization will have to look forward to the psychology of the guests in accepting this multi-cultural aspect indeed (Singh 2012). The values, norms and beliefs of the people will have to be maintained in this case for the people in the best ways. The culture of Malaysia will have to be retained in this scenario as well. The drug addicted tourists will not be accepted by the youth. This will ruin their brand reputation (Jurevicius 2013).

The tourism industry in the country is a very competitive industry. This is why the Frenz Hotel will have to implement the several strategies related to technology to upgrade their operations as a boutique hotel. As per the scholars the boutique rooms in the hotel will be furnished with the latest designs of home décor and the Wi-Fi technology will always be present in the rooms. The business travelers come there for their professional purposes. This is why they will need the internet. If the hotel authorities can provide them with the high speed free internet it will carry a strong positive message to the guests (Jurevicius 2013). The LCD screens should be put up in the different places of the hotel. Thus the organization should get the advantage of the technological devices within their premises. The online information exchange programs should be set up along with the property management software being installed. These strategies will surely cater to their success (Singh 2012).

As this Frenz hotel is an international hotel in the boutique hotel industry, The sustainable business practices for the nature should be addressed by the organization in the best ways indeed (Belch et al. 2014). The environmental degradation will have to be managed and the organization will have to get rid of the industrial wastes in a way that these things do not harm the common people indeed. Singh (2012) has suggested that they can begin the solar lighting resorts in some of the areas within their premises for the guests. This will prevent the environmental degradation in a large manner indeed. The environmental pollution within the country should be controlled positively as well. The industrial wastes could be recycled indeed in several manners (Koekemoer 2014.).

The tourism acts and the discrimination laws by the government should be maintained by Frenz Hotel in Kuala Lampur. This is a very important practice for the organization from the various aspects as well. As highlighted by Singh (2012), the employment laws should be followed to prevent the employees from any kind of discrimination. The organization must abide by the consumer laws of the country as well. The promotional activities should be handled by maintaining the laws as well.

External Environment Analysis

The evaluation of the marketing strategies remains incomplete without discussing about the four P’s of marketing. Thus the marketing strategies for Frenz hotel could be highlighted properly (Luxton, Reid and Mavondo 2015).

The best products they could offer are their boutique hotel rooms. The elegance of the rooms will be the best products to attract the tourists and the guests. The meeting space for the guests can be decorated beautifully as well. The interior decoration of the rooms should be made based on the preferences of the customers (Parente and Strausbaugh-Hutchinson 2014).

The pricing strategies for booking the rooms should be made in the cost-effective ways. This means the middle class people should be able to experience the quality of their service as well (Naeem, Bilal and Naz 2013). According to the experts the business class travelers will surely have a glimpse of their services and products as they chose to book the costliest suites in the hotels. Thus both the active segments will drive them to acquire the best services.

The promotion of the new Frenz Hotel in Kuala Lampur should be made through both the online and offline methods. This will surely help them to attract more customers and increase their market share. As some critics have suggested the offline marketing and advertising strategy should be based on the distribution of the banners on the streets, the news channels, the print media like news papers and all. The online promotional strategy will center on the use of the social media platforms and their websites.

The location of the hotel is an important aspect for acquiring their success. As it is situated at the heart of the city, this will be a very strong point for them to gain the brand equity in their favor indeed.

There are some certain ways or strategies by which the Frenz Hotel can improve their brand strategies in the best ways. There are some elementary components that will be needed to address the brand equity for the boutique category hotel Frenz in Malaysia.

Frenz hotel has made many promises to the customers or their guests regarding their service quality and the ways they will provide the guests with all the facilities (Wagner and Hollenbeck 2014). However, it has been noticed that all the organizations have not been able to fulfill their promises. The authority of the Frenz hotel must take the steps in the way that all the promises are fulfilled. Otherwise, the customers will lose the trust on them. This will ruin their reputation the worst ways.

The customers always buy the products or avail the services if they have a proper knowledge about it. As experts have said if they do not know what are the good points about the products they will never buy it (Wagner and Hollenbeck 2014). It is the responsibility of the service providers to educate the customers about these things. The Frenz hotel must do their advertising in a way that their customers must be able to know the strong points about their services and products. Thus they can draw their customers (Campbell, Coff and Kryscynski 2012).

PESTEL Analysis on Frenz Hotel

The consumer brands must address the needs of the industry market they are working in. Just like that there have not been many international hotels that could provide their rooms to both the middle class and upper class families (Hill and Brierley 2017). This is why Frenz hotel will look to provide the several customers with these facilities. As per Fraering and Minor (2013) this will surely increase their popularity among the customers indeed. The good behavior and sincere response of the employees will also add to this as well as per the critics.

The Frenz hotel must present themselves in the way that the get the respect from the guests. The humble behavior of the employees and their sincere response to the problems of the customers will make them the most preferred brand in the hospitality industry (Fraering and Minor 2013).

The ways they can develop their market as a newcomer in the industry are:-

One important aspect in this scenario is the fact that they should always be genuine and provide the best materials to their customers within the due time. As described by Fraering and Minor (2013) when the international tourists book their rooms through online mode, they should always always be honest and genuine. This will bear the good impression on the minds of the guests and the guests will recommend their brand to the known ones. This will increase their following as well (Lewis 2013).

The customers or the guests should always want that the brands they use should be relevant and worth of their money. As per the critics, Frenz hotel must develop their infrastructure in a manner that they can cater to all these needs of the customers in the positive manner. The language barriers should be overcome by the organization through their interpreters.

It is indeed very important for Frenz hotel to be very much active in the social sphere. They have to perform their CSR activities so they can get the respect of the community as well. They can opt to donate to the local charities and people who have been affected in the various natural disasters (Panayotou 2016).

It is very important for the Frenz hotel to develop and prepare the customer profiles so they can be attentive to what the customers want or need from them. The scholars have opined that the target customers should be the people who come to Malaysia for some business purposes. The international tourists can also be their chief customer segments as well. However, they can stay in touch with these people through the online social media platforms (Shirley, Boruff and Cutter 2012). These platforms will validate them to assess the needs and desires of the company. The geographic and demographic target segments should be developed by Frenz hotel as per the desires and needs of the guests. According to the experts these customer profiles will indeed be very much helpful for them.

As the critics have suggested it is indeed very important to build up a proper brand identity for the boutique hotel industry. The impact of social media marketing will be very much helpful for them The Frenz Hotel in Malaysia will look to provide the proper advertisements. The advertisements in the social media will give them the boost to come into the forefront indeed (Shirley, Boruff and Cutter 2012). These things will have to be implemented in order to gain the competitive advantage over the rivals. The brand reputation can be improved only when the common people will come to know of the hotel’s strong points.

It is very important for the Frenz hotel to communicate with the customers and the guests. They should raise the awareness among the customers that they will provide the best services in Malaysia. The only way to gain the competitive advantage is to stay one step ahead of their competitors. As the customers always want the best facilities from the brands the customers shifting is a very common notion in the marketing process of the hospitality industry (Shirley, Boruff and Cutter 2012). The Frenz hotel must understand that the customers are very much sensitive. If their emotions are being hurt by any of the company employees, they will surely los that customer. In this scenario, they should always look to provide the best resources to the customers through making the proper customer surveys. As per the scholars the feedbacks from the customers should be utilized to improve their service delivery and service quality. Frenz hotel should also maintain the ethical standards within the business. This will be a huge boost for the retention of the customers. According to the experts the talent development and employees retention programs by the HR department will assist them to provide the best services to their guests all the time.

The cultural sensitivity should also be protected by the Frenz hotel as well. The legal endowments should be followed by the hotel so the customers can be provided with hassle free operations. These things are really very important for the organizations in the first place. The organization should always be very much loyal to the customers all the time (Panayotou 2016). Thus the customer satisfaction can be achieved as well. If any question mark arises on their reputation they will have to eradicate these negative impacts. The organization should be able to identify the needs of the customers in the best ways and provide them with the things that they rightly deserve.

Conclusion:

As per the discussion, the report can be concluded by saying that there are enough opportunities for Frenz hotel to expand within the country. The organization has a strong potential to gain the competitive advantage. The customers have certain desires from the company and the company is liable to provide them with all the facilities indeed. The Frenz hotel has faced several challenges in the market place like the communication barriers and the service quality issues. The customer reviews have not been good enough for them. This is why they will have to tackle with these issues and solve them to improve their services. the environmental aspects will have to be focused in a better way as well so they can provide the sustainability. The organization should be able to provide the best opportunities for the employees about their career growth. The good communication skills of the employees will also act to be a positive force for them. They have the potential firepower to gain the competitive advantage and they have to utilize that only.

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