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SOL MELIA ANNUAL REPORT 00 COMP

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<strong>SOL</strong> MELIÁ IN THE 21 ST.<br />

CENTURY · BRAND STRUCTURE CHANGE<br />

t<br />

Simplifying things:<br />

New Sol Meliá Brand Structure<br />

The rapid growth enjoyed by Sol Meliá in recent<br />

years together with the development of the<br />

international hotel industry in general brought<br />

the company around to analysing its hotel portfolio<br />

and considering the possibility of introducing<br />

certain modifications aimed at simplifying<br />

and better segmenting its hotel products.<br />

After the purchase of Tryp Hotels, the incorporation<br />

of a new group of hotels provided an ideal<br />

opportunity for revisiting the subject of brand<br />

structure with the assistance of Infratest Burke,a<br />

world leader in ad-hoc market research and strategic<br />

brand positioning, and analysing the market<br />

perception of company brands and the characteristics<br />

they are felt to have.<br />

The results of the analysis made it very clear that<br />

the Meliá brand is extremely well known and<br />

respected and that the Meliá Confort brand is<br />

associated with Meliá but transmits no clear<br />

notion of the services its hotels might provide<br />

nor its category. The Tryp brand is very clearly<br />

associated with city locations and functional<br />

hotels. Sol and Sol Élite hotels are not seen to be<br />

any different from each other, while Sol Inn is a<br />

brand with limited recognition and confusion<br />

over its nature.<br />

The research also showed how the international<br />

hotel market concentrates a large number of<br />

properties in a limited number of brands and<br />

uses the concept of sub-brands for specialist<br />

market segments such as health, golf and congresses,<br />

amongst others.<br />

“Sol Meliá has<br />

decided to simplify<br />

and clarify its<br />

brand structure,<br />

eliminating those<br />

brands that may<br />

have created<br />

confusion or lacked<br />

high brand<br />

awareness, and<br />

repositioning the<br />

remaining brands<br />

in the market niches<br />

to which they are<br />

best suited”<br />

”<br />

Sebastián Escarrer,<br />

Vice Chairman<br />

1<strong>00</strong> (90)<br />

157 (111)<br />

8 (3)<br />

BRANDS - CATEGORY - SECTOR<br />

BRAND CITY RESORT<br />

Paradisus Resorts: exceptional “all inclusive”<br />

hotels located in exotic and very special<br />

destinations.<br />

Meliá Hotels & Resorts: prestigious,<br />

luxury hotels in the five star and superior four<br />

star categories, especially suitable for meetings<br />

and conventions.<br />

Tryp Hotels: located in major city destinations,<br />

providing excellent value for money for<br />

business travellers.<br />

Sol Resorts: great value for money and the<br />

widest range of sports and entertainment activities<br />

for the whole family.<br />

155 (137)<br />

5 STAR<br />

ALL INCLUSIVE<br />

5 STAR 5 STAR<br />

SUPERIOR 4 STAR SUPERIOR 4 STAR<br />

4 STAR<br />

SUPERIOR 3 STAR<br />

4 STAR<br />

SUPERIOR 3 STAR<br />

The company will be investing a<br />

total amount of 2,<strong>00</strong>0 million<br />

pesetas in carrying out the<br />

changes required to adapt to<br />

the new brand structure, 4<strong>00</strong><br />

million of which will be<br />

spent on an advertising campaign.<br />

As a result of the conclusions of the research, Sol<br />

Meliá has reorganised its hotel portfolio into a<br />

new brand structure:<br />

Sol Hotels & Resorts<br />

Tryp Hotels<br />

( ) Operating Hotels<br />

Meliá Hotels & Resorts<br />

Paradisus Resorts<br />

S OL<br />

M ELIÁ<br />

A NNUAL R EPORT 2<strong>00</strong>0<br />

49

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