Client Goals:

Explore product positioning.

Conduct research to determine whether customers could meaningfully differentiate between a suites and non-suites product offering. Based on outcome, study would provide direction on how best to communicate brand differences and position the two offerings relative to each other and key competitors.

Identify unique segments that:
  –Share similar lodging usage patterns
  –Share similar needs and desires
  –Represent substantial revenue potential
  –Are identifiable/targetable

Realities:

Company owns two distinctly different kinds of properties—one aimed at business and upper-economy travelers, the other at more budget-conscious travelers.

Business was down across the industry after 9/11.

Praxis Strategy:

Praxis designed an online consumer segmentation and brand positioning study based on 45-minute, in-depth interviews with over 3,000 economy business and leisure travelers. A representative sample was supplemented with business and leisure customers from the company’s own database.

Measurable Results:

Results indicated that the company’s two products were not perceived as substantially different. Based on research input, client was able to confirm that it was necessary to more clearly define and market the attributes of each, which resulted in a totally revamped marketing program and a corporate decision to acquire a new brand to better address the budget market.

Results also identified substantial upside opportunity by selectively targeting two distinct segments of business and leisure travelers.

Segments represented substantial revenue potential, and shared attitudes and needs that were consistent with the current product offering.

 

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Case Study:
Major Player in the Economy Lodging Market