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La Hacienda Del Sol Case Solution

Solution Id Length Case Author Case Publisher
1601 614 Words (3 Pages) Elizabeth M.A. Grasby and Neeta Khera Ivey Publishing : 905A11
This solution includes: A Word File A Word File

The Hotel La Hacienda del Sol has been impacted negatively because of very few customers in winters. This has been going on for the past several years. The reason is an inefficient sales team and a marketing strategy not developed for the correct target audience. It is recommended that the sales function be outsourced, and the marketing be done for the Mexicali as well as the American audience by selecting appropriate marketing channels.

Following questions are answered in this case study solution

  1. Abstract

  2. Problem Statement

  3. Analysis

  4. Strategic Alternatives

  5. Recommended Action Plan

Case Analysis for La Hacienda Del Sol

2. Problem Statement

The winter sales at La Hacienda del Sol had been comparatively lower than that in the summer for the past several winters. The main problems identified for this seasonal variation were the lack of a professional sales team and the incongruent decisions of the sales and marketing teams.

3. Analysis    

The reasons analysed for the decline in sales each winter is the inconsistencies in targeting and pricing. Most of the customers come from San Diego and Los Angeles. However, the attracted customers consisted of students, seniors and couples, and families spending up to $500. When the targets were set, the promotions and distributions did not work to achieve these targets. The investment was not done in the most viewed mediums. Also, due to this inconsistency in promotion and targeting, the brand image was not consistent. Such a brand image failed to attract many customers during off-seasons although the peak seasons had had the hotel running at 100% capacity.

4. Strategic Alternatives

The alternatives for sales are to either outsource the sales function or hire a professional sales team. The outsourced sales function would be based on a contract whereas, hiring a team would mean salaries, incentives, and bonuses be given to them. If the team is outsourced, the contract can be attained through the choice between the best sales outsourcers. Since the outsourced sales team would be efficient, there would be no requirement of investment in training. The costs of an outsourced team would be lower. The skill set would be greater and the risk of turnover costs would be lower. However, the risk of confidentiality would be present, and the business would lose control of the sales function. Also, the internal talent would not be developed if this function is outsourced and the hotel would remain dependent on the outsourced team for sales.

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