Luxury Vibes AKJM Inc Bed & Breakfast

AKJM Inc's Bed & Breakfast; Luxury Vibes Marketing Plan

Question 1

The brand image constitutes the brand's perception in the minds of the customers that includes elements such as the idea of the company, beliefs, and the impression the customer holds regarding the brand. Luxury Vibes bread and breakfast varies from its competitors by offering customers a unique experience, one similar to a vacation yet offering a family setting feeling, making the company a high-end one. Luxury Vibes offers services that match those of a five-star hotel and integrate auxiliary services such as individual drives to the mountains, access to the beach, infinity-edge swimming pool, and one-of-a-kind spa services. Luxury Vibes's main competitors are luxury hotels and motels; however, it differentiates itself from its competitors through the identified auxiliary services (Rusmahafi & Wulandari, 2020). The provision of a family-like setting creates a relaxed environment, unlike in luxury hotels, motels, and resorts that customers perceive as more official premises. Conversely, Luxury Vibes is perceived as a more relaxed but high-end bed and breakfast that allows both active and passive engagement in their entertainment, unlike in luxury hotels, motels, and resorts where entertainment is passive.

Prestige pricing will be adopted to reflect the quality of the services rendered at Luxury Vibes. This approach is contrary to typical introductory pricing strategies, which depend on the market conditions and are often average compared to competitor pricing to attract customers (Zhou & Gupta, 2018). However, in the hotel industry, pricing is perceived as a determinant of the quality of services rendered; thus, offering an average price might create a negative brand image where Luxury Vibes is perceived as a subpar bed and breakfast. Since the product is in the introductory stage of the product life cycle, some of the considerations that will be taken into account are low revenue generation since the acquisition of customers takes time (Prasad et al., 2019). To attract customers and generate sales, offering customers discounts and incentives, such as a 15% discount and free spa treatments, to new customers will attract customers who seek luxury services and increase the customer lifecycle at subsidized prices that would otherwise be average in the luxury category. This strategy is suitable for individuals between 25 and 70 years who earn at least $70,000 since it is the buying ability and might be commenting more often than not where they might require services such as those offered by Luxury Vibes.

Due to changes in demand with seasons, the price will range between $200 and $300 per night depending on the season; the lower price point will be applied when there is low demand and the high price point when the demand is high (Rusmahafi & Wulandari, 2020). The competitors of Luxury Vibe's prices are within this range, and the application of a 15% discount or inventive to customers would result in the price being $170 and $265 in the low and high seasons, respectively. Customers would be invited to choose either a discount or an incentive for one of the auxiliary services rendered at the B&B. The discounted prices and incentives will be offered for three months and terminated if the business has already acquired sustainable customers or adjusted if this strategy does not work.

Questions 2

Luxury Vibes is a bend and breakfast subsidiary of AKJM Inc. that aims to offer customers incomparable experiences by merging the extravagance of a five-star hotel with a feeling of family. Luxury Vibes offers a holiday feeling characterized by activities such as beach visits and nature exploration, in addition to a one-of-a-kind spa that flows into an infinity-edge swimming pool with lounge chairs. A direct-to-customer distribution chain will be implemented to engage directly with customers (Beritelli & Schegg, 2016). since the company is in the introductory stage, direct distribution will be essential in matching the services offered by the company with what is advertised. Further, the company is yet to begin generating income which gives the collaborators in distribution a bargaining advantage and would result in the profit margins of the business declining.

The brand image of luxury service and experience and proficiency in service provision must be marketed professionally and customized to the unique target market and Luxury Vibes rather than generic approaches. The target market for the firm is biased towards the millennials who are technology savvy and accommodating of travel for experiencing the local culture of travel destinations; Luxury Vibes uniquely serves this market, and engaging with customers could help build a community of customers (Rusmahafi & Wulandari, 2020). competitors use distributors such as web platforms to purchase reservations or bookings where there is no differentiation from other competitors. Further, competitors in this category are well-established hotel chains with a higher bagging power with collaborators and distributors (Pearce, 2009). However, relying on online platforms, such as social media and a website, will be critical to creating brand awareness. Collaborations with travel agencies will be critical since they are along the value chain of hotels, and there are no additional costs incurred besides the brochure printing expenses.

Luxury vibes will have a website where customers can place reservations or bookings. The website offers direct contact with customers for further inquiry and engagement. The website will also be used for marketing services by ensuring the service or onsite promotions are available online (Rusmahafi & Wulandari, 2020). As established, the targeted market earning ranges from middle to high income and are dominantly young; a demographic that is technology savvy and prefers the convenience of interacting with the B&B directly rather than engaging intermediaries.

Question 3

Luxury Vibes is a luxury bed and breakfast that offers more than just accommodation but a holiday experience filled with activities of our customer's choice. The company is committed to rendering customers five-star extravagance and accommodating their needs and wants. The target market for international expansion is Italy due to the thriving hotel market and growing tourism trends. In 2020 there were 1 billion investments in the country's hotel industry, and it is projected to continue growing despite the impact of Covid-19. In 2020, the country recorded more than 63 million tourists. Tourism is predominantly in the cities: of Milan, Florence, Venice, and Rome ("Hospitality Industry in Italy 2022 - 27", 2022). Italy is ranked fourth internationally in the number of rooms and has recorded increasing rates of overnight stays. Therefore, Italy offers a unique opportunity where Luxury Vibes can leverage its brand equity during entry. Italy enjoys political stability and has a per capita income of $42,270. As such, there is a high buying ability among the local and international tourists. Notably, the country also hosts international competitions, such as Formula One, which attracts international tourists.

The business model of Luxury Vibes is at an international status, making it adaptable to different markets. The culture in Italy varies in cuisine, but the traveling culture is synonymous. Consequently, the catering will be adjusted by recruiting chefs locally. Italy's culture is synonymous with most cities in developed countries. According to the European Consumer Centre (ECC), the only specification is there has to be a charge for cancellation of reservations that also applies in leading luxury hotels across the globe. There is pervasive reliance on the internet to meet customers' needs. Therefore, the internet mediums, such as the website and social media, will still be used for marketing purposes. Further, the target demographic in this region is similar to that in the U.S. the pricing of services will be subject to the demand mechanism within the luxury category of the industry in Italy ("Hospitality Industry in Italy 2022 - 27", 2022). Notably, since the B&B aims to run at a five-star hotel standard, the charges will not differ from those charged in San Diego.