TARLAC STATE UNIVERSITY
COLLEGE OF BUSINESS AND ACCOUNTANCY
S.Y. 2017-2018
CASE STUDY 4:
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Gretchen Hotel
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Strategy Case: Gretchen Hotel
Gretchen Hotel is a five star upscale hotel situated in Manila. Being one of the most
popular hotels in the city, tourists and professionals frequent place. The hotel boasts of its
historicity as shown in the delicate architecture of the past while complemented by pieces of
furniture that harmonize the entire mood. Strategically well placed, there is an intense but gentle
ambiance of artistry and national pride. This hotel was named after the lady owner, Gretchen,
who passionately worked and to bring the best in the domicile service.
Today, Gretchen Hotel houses 375 cleanly maintained rooms of different sizes and three
restaurants: one for dining, another one serves exclusively Japanese food, and the other for
casual dining. Two swimming pools invite guests (children and adults) to relax and feel the cool
water. It is supplemented by a gym for physical and health aficionados.
On the ground floor are boutiques that sell antique items, shirts, bags, imported cookies,
medicine, and other items for casual needs. At night, one can hear a string of soft music that
soothes the otherwise tired travelers and professionals. The bar is suitable for quiet conversations
while one sips the relaxing mellow taste of the wines served. There are rooms for meetings and
other business discussions, equipped with technology gadgets and other communication
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requirements. In every respect, Gretchen Hotel is proud of its complete and state-of-the-art
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facilities.
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Gretchen Hotel has a total of 188 employees who are stationed in various service offices,
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starting with administration, front desk to concierge, bellboys, restaurants, housekeeping,
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maintenance, and other services offices. They render quality services to their customers and
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evidently, they are delighted with how the staff, supervisors, and managers perform their jobs.
Similarly, the daily room rates of Gretchen Hotel are affordable, including food and other facility
prices. Note that the Hotel does not impose extra or hidden charges. They are transparent and this
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makes their customer happy. While the old and current customers of Gretchen Hotel generally
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come back and patronize the Hotel, it is confronted with great challenge. Its average monthly
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occupancy rate is only 48.9%.
As the Manager of Gretchen Hotel, devise strategies to help increase the Hotel’s
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occupancy rate. Prepare an action plan.
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Title of the Case: Gretchen Hotel
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Time Context: October 2017
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Perspective: Manager
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Central Issue: Low occupancy rate despite of improved and high-end services.
Statement of Objectives: (For Internal Management)
1. Increased the hotel’s occupancy rate by at least 30% by the end of the year
Areas of Consideration: (For Internal Management)
1. General perception of customers (prospective customers) about the hotel.
2. Customers are limited to old and current customers.
3. Increased competition.
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Alternative Courses of Action:
1. Include upper middle and middle class customers in the target market segment.
2. Cater the needs of companies and other organization by offering rooms for business
discussions and meetings.
Decision Matrix:
Alternatives
Variables
1 2
Risks 3 4
Costs 3 4
Benefits 5 1
Ease of Implementation 3 4
Total 14 13
Conclusions: The management should focus on the first alternative which is widening their
target segment as it yields a higher accumulated points compared to the second alternative.
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Recommendations: Gretchen Hotel should widen their segment to include middle and upper-
middle class customers. They can also cater the needs of companies and other organization by
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offering rooms for business discussions and meetings.
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Action Plan:
Person
Activities Objective Division Cost Time
Responsible
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Build a long To appeal to the Marketing Marketing P 200, 000 Throughout
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term loyalty new target Department Head the year
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relationship segment.
with
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customers
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i.e. discounts,
special offers,
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frequency
programs and
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marketing
programs,
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and award
programs
Advertise To make Marketing Marketing P 250,000 Throughout
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online customers fully Department Head the year
through aware of the
social media services provided
by the hotel
Create a Web To allow IT Chief P 350,000 6 weeks
site or an customer to share Department Information
online their reviews and Officer
platform experiences to
other customers
or potential
customers and
for customer
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booking
Set up 24/7 To receive and IT Chief P 120, 000 2 weeks
toll-free act on customer Department Information
hotline complaints and Officer
(phone and e- recommendations
mail)
Gantt Chart: Year 2018
Activities Ja Feb Mar Apr May June Jul Aug Sept Oct Nov Dec
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Build a long X X X X X X X X X X X X
term loyalty
relationship
with
customers
i.e. discounts,
special
offers,
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frequency
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programs and
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marketing
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programs,
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and award
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programs
Advertise x x x x x x x x x x x x
online
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through
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social media
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Create a Web x x
site or an
online
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platform
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Set up 24/7 x
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toll-free
hotline
(phone and e-
mail)
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