The document discusses Generator Hostel in Dublin and analyzes its business. It provides a SWOT analysis, identifying strengths like location and European network support, but also weaknesses such as high staff turnover. Market segmentation shows a focus on backpackers, students, and young travelers. A loyalty program called GeneRoyal is proposed to offer discounts and collect customer data to provide continued value. Overall, the document performs a strategic analysis of Generator Hostel and provides recommendations around segmentation, positioning, product development, and loyalty program promotion.

2. GENERATOR HOSTEL
DUBLIN
HTTPS://WWW.YOUTUBE.COM/WATCH?V=GBZ0AGPSABA

3. BUSINESS IDEA
Loyalty Program:
Creation in the client the will to look for Generator Hostel also in other
cities, in order to collect points and get discounts.

4. S W
TO
Weaknesses
•High staff turnover
•Booking coming from Internet
Intermediary
• No agreement (at the moment)
with the Guiness Museum
Threats
•General and external percepetion
of “hostels”
•Weather
•Competitors closer to the city
centre
Opportunities
•Dublin: attractive destination
•Social Networks
•Globetrotters and Gay segments
growth
Strengths
•Location
•Important European Network
•Economical and Management
support of a private equity firm
SWOT Analysis

5. Subculture,
Social class:
Modern open-
minded generation ,
from the middle class
CULTURAL FACTORS AND SOCIAL
FACTORS
Groups:
Membership groups-
social network
Reference groups-
classmates/co-
workers/family friends
Different social roles:
son/daughter/wife/hu
sband/worker
Relaxed and friendly
behavior

6. Age and status:
18-30+
Single/Couple/
Married
Occupation:
Students/
Occupied/Non
occupied
Active lifestyle
Social network
users
PERSONAL AND PSYCHOLOGICAL
FACTORS

7. - Cheap
- Not very clean
- Not very comfortable
- Only for young people
with small income
- Clean
- Fun
- Comfortable
- For everybody
PERCEPTION AND ATTITUDES

8. Need for a
holiday or a
trip/Not
pricy/Yet
comfortable
Search the
web/Ask
friends
about their
experience
Hotel 2*/
Hostel
Generator
hostel
-Share your
experience
-Write a
feedback
THE BUYER DECISION PROCESS

9. GENERATOR HOSTEL GUESTS

10. MARKET SEGMENTATION
• Backpackers & students
• Cheap
• Neat, clean & comfortable?

11. MARKET SEGMENTATION
International/European
customers
(females & males) Friends
Couples
Groups
Students &
backpackers
Families
Young business
people

12. TARGETING
Concentrating or undifferentiating marketing?Concentrating or undifferentiating marketing?
Couples
Young business
people
Friends

13. POSITIONING
1) Differentiation
2) Modern experience with extraordinary facilities
3) Engaging & active on social medias
USP

14. POSITIONING #1

15. POSITIONING #2

16. THE PRODUCT
Core Product • 106 rooms (private, triples, quadruples, dorms,
Jacuzzi Suite);
Facilitating
Products
Supporting
Products
Supporting
Products
Augmented
Prodcts
• 24 hour reception, reservation center, front desk
staff, wait staff, bartenders
• wi-fi, bar, conservatory, vending machines,
launderette, private showers, secure lockers,
travel shop, and pool tables;
• Nightly events at the bar, lounge, guided tours.

17. MOREOVER…
• Cutting edge design
• Cozy, rustic, modern
layout
• Wooden furniture,
Couches
• Young atmosphere
• Chill-out areas

18. THE BRAND
• Brand Name: Generator Hostel
• Brand Decision: differentiate itself from other hostels through
increased value proposition
• Brand Mark:

19. NEW PRODUCT DEVELOPMENT
• What? GeneRoyal – Generator Hostel Loyalty
Program;
• How? Form with info + «Potential» Card.

20. REASON FOR PRODUCT
CHOICE
Lowering costs
Reach all segments
Create loyal guests
Gather information for future offers
Objective?
Continued Purchase
(Direct) Pull Strategy
Generator
Hostel
Consumers
Direct Marketing Activities
Demand

21. • Generatorhostel.com: the booking engine
• OTAs
CHANNEL DISTRIBUTION

22. CHANNEL DISTRIBUTION & PRICE: WHAT’S
WRONG?
- June 4th, 2014
- 1 night
- 1 double room
Booking.com = 73,80 Euros
15% commission: - 11 Euros
Generatorhostel.com = 81,70 Euros
BUT…
BEST RATE GUARANTEED A WIN-WIN SITUATION

23. OUR PROPOSAL: THE
GENEROYAL
• Benefits: 10% discount on bookings
Free services for couples-students-families-groups
2 points collected per overnight
10 points = discounts on services
• What’s the gain? 100 rooms*4 guests, 1 night
Booking.com: (100*70,20)-(100*70,20*15%)=7020-1053=5967
GeneRoyal offer: (100*78)-(100*78*10%)=7800-780=7020

24. LOYALTY PROGRAM
PROMOTION
• The Message:
-What to say?
-How to say it logically/simbolically?
• Communication Channels:
-Personal + NonPersonal
• Source: Our Guests
• Nature of Promotion Tools
-Advertising: Website + Social Media
-Personal Selling: Telephone + Face to
Face
-Future Direct Marketing: Direct e-mails