Competitive Advantage

MARKETING MANAGEMENT

Do you live an intercontinental life? That is the question intercontinental challenges its audience to answer. InterContinental's new advertising campaign was the result of positioning work that has been on-going since late 2004 (PRNewswire, 2004)2.

With seven different brands positioned to target totally different market segments from rich holiday makers to corporate business mans to a budget traveller, Intercontinental has something to offer to all its customers and a solid loyalty reward system with 56million members; it seems that intercontinental has mastered the marketing techniques.

By analysing IHG’s portfolio with the help of BCG matrix model, (Appendix1, figure 1) we can see that IHG group is in very good state. Out of 7brands; 3 stand as Cash Cows generating revenue, 1 as Star, 2 as Question Marks and just 1as Dog. No wonder, it’s the biggest hotel operator in the world with soaring profits rising by 57% in 2011. IHG owes all of this to their strategic approach which has a clear focus on franchising and managing hotels rather than owning them outright. Enabling them to grow at an accelerated pace with limited capital investments.

IHG has recognised its competitors with larger portfolios such as Wydham Worldwide Corp which owns Ramada chain, Ritz-Carlton owner Marriott International Inc. and Hilton Worldwide. To stay ahead of them, IHG is constantly investing in its publicity and adverting campaigns and never loses to capitalise on the competitor’s mistakes, Like on February 2010 IHG launched an advertising campaign drawing attention to recent changes to Hilton loyalty points decrease by creatively targeting the Hilton loyalty card holders asking “lose something?” (Mary Elizabeth Hurn, 2010)3 and singed up a third-tier deal to sponsor London 2012 Olympic Games, which it intended to promote its Holiday Inn and Holiday Inn Express chains. (campaign live, 2009)4.

But advertising is only one element whose form and extent dependent on...