The Shangri-La Hotel – London : Why Shangri La extended the brand to London ?

Aubier Laure, Cuquel Lisa, Houssier Sophie, Lu Elise, Weber Axel

Economie / Market Economic History of UK

• The first country to industrialize • Led the industrial revolution (19th century)• The heart of global finance

London

• Economic growth : 3.5% in 2015 • 2.7% growth in the rest of the UK

• UK GDP : 2.942 Trillion $,• Singapore GDP : 306,77 Billion $

The Tourism Industry in both cities

• Singapore : 77% of the tourist are from Asian countries,

• 10% are from Europe.

London : the majority of the tourists are Europeans

Chinese tourists, is a constant growing market.

Legal aspect• Managed hotel• Contract for 30 years• Shangri La : active member in CSR • UK supports social responsabilty with

subsidies

Demography

 • Immigration : 21.2% of Londoners• In 10 years, the percentage of ethnicity has been increased by 12%

2001 2011 % Envol

All Ethnicities

7 336 900 8 217 500 12,0%

White 5 216 100 4 912 100 - 5,8%

Black Other

169 200 357 000 111 %

Chinese 198 400 502 900 153,5 %

Singapore and London are cosmopolitan cities, business and tourism centers

London : 3% others

9,1% indians

13,3% malays

73,3% chineses

Singapore :

Professor Geert HofstedeThe six dimensions of national cuture

The Lewis Model

The Lewis Model suggests that:• According to the Levis Model, British are mostly Linear active and partly linear

active. Singaporeans are mostly Reactive and partly linear active.

British are mostly: Singaporeans are mostly:- Polite but direct - Courteous - Confronts with logic - Never confronts - Sticks to facts - Never lose face - Truth before diplomacy - Diplomacy over truth - Limited body language - Good listener And also: And also:

- Looks at general principles - Task oriented - Statements are promises - Highly organized

S.W.O.T

Strength Weaknesses• The highest skyscraper of

Europe

• The hotel has been awarded a total of 14 times, which highlights the quality of its services

• Located in the biggest business center of Europe

• Very new hotel

• Innovative concept

• Most opinions that are shared on tripadvisor are very good

• The hotel hold the 34th to the 52th levels of the bulding → not a real visibility on the ground

• Very bad communication between services :  eg : the kitchen is over two floors (sources the guadian) and pretty bad for foods (very long way)

• New technology improperly used : Receptionnist as robot : not very good at customer relations

• The hotel has no spa which is a real weakness in competition

S.W.O.T

Opportunities

Threats

• London is now the most visited city of the world ahead of Paris

• The past 20 years has seen an overall increase in the total number of visitors to London,(thanks to the 2012 Olympic Games )

• The hotel has a large number of business clients and London includes important business center (a conference and business destination.)

• The fact that the hotel is owned by a Chinese group may allow them to acquire a large part of Asian and Chinese clients

• Recent trends show that luxury hotels have grown at a rapid pace in London. The competition in the near future will be cut-throat and intensive as more and more rooms will be added to the industry.

• London has 81 luxury hotels comprising 11,514 rooms open, according to STR Global, with an additional three luxury hotels comprising 453 rooms under construction.

• The Geopolitics of europe is unstable (Uncertainty created by terrorist activities.)

Marketing Mix - Product

Marketing Mix - Product

Marketing Mix - PromotionLondon : 38 000Singapore : 92 000

London : 5 600Singapore : 3 696

https://www.youtube.com/watch?v=rUgMr50k4DgNumerous youtubers upload room tours videos and opinions

• Skimming strategy * Double Room from 467€ / sing : 264

• Premium strategy * Until 19 000€ / ppt : 1 000

Marketing Mix – Price

Marketing Mix – Place