Marketing Case Study On A Brand- Airbnb

The focus of today's article will be on Airbnb's business path. It is an intriguing case study because it shares many vital lessons for startups and expanding businesses. When it comes to home rentals, Airbnb is at the top. Our marketing case study about the company will mainly focus on the overall value of the accommodation giant. Furthermore, the story of creating a robust digital presence is also worth mentioning here.

The Market Capitalization figures indicate that the company has grown fabulously during the past 10 years. Moreover, there has been a significant shift in its popularity from the days of its inception. Survey told us that in April 2023, the approximate net worth of Airbnb is $73.18 Billion.

Marketing Mix and Product Strategy are the most highlighted factors in our case study. Airbnb presents incredible opportunities for customers to enjoy fabulous staying options within budget. Moreover, the company knows how to connect with people. It deploys all the 4Ps essential to run the business profitably. A proper Marketing Mix Model is in place for desirable results. Let us now check out our findings from the case study.

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The Case Study In Full Detail

Now it is time to look at AirBnB's inception and existence timeline.

Airbnb became a legal entity in 2008. However, it had a long voyage ahead of it. Joe and Brian, the two founders, were roommates who met while studying at RISD. They were both struggling to pay the rent and seeking alternative income methods. Then there was a big event coming up in their city. So, it occurred to them to provide homestay services to travelers. They created an elementary and primitive form of the website to receive booking requests.

Moreover, they also purchased a few air mattresses (which would eventually inspire the name of their firm) for the homestay service. So, this was the beginning of a long and successful journey. Now, coming to the main part.

In this case study, we will divide the overall initiatives of the company into two parts- Marketing Mix and Product Strategy.

The effectiveness of the marketing strategies depends upon the marketing model. Airbnb always has the right promotional tools to accelerate the growth rate. Furthermore, another crucial aspect of favorable marketing is setting the right price for the right product. Airbnb knows how to deal with the increasing demand without sacrificing its financials. It implements effective strategies to ensure that every customer is happy.

Today, more than 220 countries are offering services of AirBNB, the operating cities being over 1,00,000. The company's online site helps the customers connect with it efficiently and book the preferred accommodation. Additionally, you can taste uniqueness in almost every service of this home rental entity. They can provide exclusive rooms on reasonable rent in some specific person's home too. The adequate filters are there on the portal to support quick booking through mobile or computer.

A crucial point of Airbnb is its product strategy, which outlines the scope of its offerings. Airbnb founders initially owned and rented a single room. However, the connecting factor here is their internet platform. So, if we look at Airbnb's actual offering, it serves as a bridge between lodging seekers and providers. Its home-sharing network allows users to rent a room in someone's house, condo, or apartment. Though it began in a single room in San Francisco, it has a worldwide presence today.

Furthermore, its product approach is broad in scope. Folks can do more than just rent; they can customize the interiors to their preferences. This is not available using traditional hotel booking techniques.

Prices and Place Strategies of Airbnb

Now, another important thing which we concentrated on in this study is why people favor this company so much. The answer lies in its cost-effectiveness. Airbnb promises to give the required luxury without compromising the budget. Thus, the relatively low price range has made it one of the favorites for accommodation seekers.

They realized consumers would pick hotel rooms even if they were more expensive. People, on the other hand, like to live in pleasant and home-like environments. Therefore, Airbnb engineers began to work on this concept. Even at lower rental rates, Airbnb makes more money than any average luxury hotel in a year.

It is clear from this observation that the company's price strategy involves offering a sum below the market average. According to the top management, this is a superb way of capturing people's attention among the cut-throat competition. Therefore, without a doubt, Airbnb always stands out in the crowd and creates a prominent place.

Similarly, it sets specific parameters to maintain the position in the minds of the people. Travelers always want accommodation within the city or near the primary tourist spots. Airbnb understands these desires of the public and sets its place strategies accordingly. The location of every Airbnb accommodation is not very far from the central point. As a result, no issue with conveyance or transportation occurs as you choose this company for a comfortable stay. ?

What Else Does The Company Do?

We saw various options when we examine Airbnb's marketing model and methods. It did not work on a single or double model but on several and in a synthesized fashion. They made a perfect cocktail out of all the current tactics, extracting the most from each. Apart from the above strategies, the company focused on some more vital areas.

·????????Promotion Strategy

As previously said Airbnb employs a cocktail of marketing methods. Therefore, it promotes its services through both physical and online modes. Initially, its marketing techniques mainly targeted local customers such as students, laborers, and international travelers. They used hoardings, banners, and bus advertising to accomplish this. Moreover, they primarily used social media platforms for this purpose on the internet. It is worth noting that word-of-mouth from customers also performed wonders for its advertising.?

·???Influencer Marketing Strategy

Many TikTok and Instagram influencers have given product and service reviews. Their product reviews help companies reach millions of shoppers at once. Thank you to the million followers who read the reviews.

Furthermore, Airbnb also benefited from it since it pursued an influencer marketing strategy. Its marketing plan is one of the most well-thought-out we have seen. Airbnb has cooperated with various influencers to tap into an untapped client base. This clientele is usually influencers' followers who see Airbnb's services when the influencer publishes videos about their stay at any of their accommodations. Their evaluation serves as advertising, allowing additional people to learn about Airbnb services.

Furthermore, when individuals see a renowned influencer using Airbnb's accommodation service, their confidence level rises. People believe that if a celebrity endorser uses it, the services must be excellent; therefore, they also go for it.

Undoubtedly, the study shows how practically Airbnb operates. Moreover, it aims at leaving an unforgettable impact on the travelers’ minds. Given a choice, people will love to rent a room here instead of going to expensive hotels. ?

Points To Note

Airbnb is thus an inspiration for many. The operational flow and work pattern have proved that it sets a well-formulated plan to achieve the goal. As we have seen, Airbnb began haphazardly, but it grew over time. As a result, this case study of marketing strategy of Airbnb is a food of mind, especially if you are an aspiring entrepreneur. During the study, we also talked with the entrepreneur of this fantastic idea. It was evident how satisfied the person was to have an enthusiastic team behind him.

Every visitor will get a seamless experience after coming to Airbnb's rooms. The company occupies the leading position for booking space in various parts of the world. Furthermore, Airbnb also has a Referral Program to connect with more people in the process. So, try your luck and fix the room for the next trip.