1. Brøchner Hotels: company profile 3
2. SWOT analysis 4
3. Critical success factors: 4
- 3.1 Choice of Hotel design 5
- 3.2 Choice of supplier 5
- 3.3 Strong customer relationship on primary and secondary market 5
- 3.4 Public relations 5
- 3.5 History and culture 5
- 3.6 Distribution channels 6
4. Challenge 6
- 4.1 Challenge 1: Hotel Herman K and Hotel Ottilia 6
- 4.2 Solution 1: Hotel Herman K A/S and Hotel Ottilia 6
- 4.3 Consequences 1: Hotel Herman K A/S and Hotel Ottilia 7
5. Challenge 7
- 5. 1 Challenge 2: Market saturation 7
- 5.2 Solution 2: Enter new markets 7
- 5.3 Consequences of solution 7
6. Major external threat: COVID-19 7
7. Challenge 8
- 7.1 Challenge: Major cancellations on bookings 8
- 7.2 Solution 1: Focus on last minute bookings 8
- 7.3 Solution 2: Ensure to be at the forefront in competing for the longer-term bookings 8
- -7.4 Solution 3: Monitor how the situation is unfolding in local areas 9
- 7.3 Consequences of solution 9
8. Method Reflection 9
9. Appendices 10
- 9.1 Market positioning 10
- 9.2 Growth strategy 10
- 9.3 Generic growth strategy 11
- 9.4 Pestel 11
- 9.5 Financial analysis 13
10. Bibliography 14
Brøchner Hotels is a Danish-based company with 6 subsidiary hotel companies based in Central Copenhagen.
They strive towards offering a unique experience for their customers, collaborators, and employees. Brøchner Hotels mission is to operate different hotels where the customer experience is the center of the whole process.
Brøchner Hotels offer a variety of hotels such as hostels and three-star hotels all the way up to five-star hotels. The price of the experience they offer does, therefore, depend on the choice of the hotel.
Brøchner Hotels was established in 1982 in Copenhagen and is owned by Søren Brøchner Mortensen the day today. The company went from generating a profit of 60.5 million DKK in the financial year of 2017, to only making a profit of 9.1 million DKK in the financial year of 2018.
Mission: Brøchners mission is to create extraordinary experiences through their hotels in an authentic and local environment.
Strategic vision for 2020: The company wants to achieve 600 rooms in Copenhagen, 120 outside of Copenhagen and 120 outside of Denmark within 2020. Brøchner Hotels is focusing on becoming bigger in the market by expanding.
3.1 Choice of Hotel design
Brøchner hotels do not compromise on either design or interior when building a hotel.
They have chosen to go with a type of hotel that is called boutique hotels. This means that the hotels are small but centrally located and are very much about the general aesthetic and outward appearance.
They try to blend in with the local surroundings which for their Copenhagen hotels is a danish design and this concept of hygge.
3.2 Choice of supplier
In order to deliver the promised experience to their customers, the choice of their suppliers are really important.
Brøchner Hotels offer a differentiated experience compared to its competitors, which means that if they are not able to deliver the unique experience they have promised their guests - they will simply choose another hotel chain next time.
Brøchner Hotels serves food which is around 90-100% organic, which means that the company’s supplier needs to have the ability to offer and maintain the quality of their products.
3.3 Strong customer relationship on primary and secondary market
Brøchner hotels place great value on creating strong customer relationships in their primary market but also their secondary market.
This creates value for the company as they are of interest both for the hotel guests, but also outside people looking for a restaurant, bar etc.
To strengthen their primary market and to make sure that the visiting guest wants to come back, Brøchner uses loyalty programs.
These programs include special offers for their guests, e.g. they can get the eighth night for free. Such programs help Brøchner to keep the guest loyal to the hotel which is crucial for the success of the business.
To strengthen their secondary segment, Brøchner tries to break down the barrier that a hotel is only targeted for tourists and international guests.
Therefore, they have implemented a concept called Staycation, offering a “vacation in their own city” with good offers on breakfast and drinks.
Furthermore, they work actively with planning events across their hotels, making their hotels interesting for the guests spending the night but also people from outside.