WONTONMEEN: REPOSITIONING A HOSTEL DURING A PANDEMIC
CASE STUDY SOLUTION
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pl
SYNOPSIS
m
Sa
Located in the heart of Sham Shui Po Hong Kong, Wontonmeen was a hostel that not only
accommodated backpackers and tourists but also served as a collaborative community space that hosted
art, culture, design and music workshops. Wontonmeen was a hub for the local creative community.
n
At the onset of the COVID-19 pandemic, most foreign backpackers could no longer travel to Hong
io
Kong, a trend that continued well into 2021. Wontonmeen’s operations were adversely affected.
Consequently, Patricia Choi, owner and founder of Wontonmeen, was exploring the feasibility of
repositioning to attract new customers, which would involve pivoting from her traditional customer
t
lu
base of foreign backpackers to serving local staycationers.
To explore the repositioning decision, an online survey was conducted along with consumer interviews
So
to better understand the staycation market opportunity. The data provided useful information about the
feasibility of repositioning the hostel to attract local consumers. With the data, Choi could qualitatively
and quantitatively assess the risks and benefits of repositioning.
OBJECTIVES
• Better appreciate the challenges of making marketing decisions as a small business owner in a fast-
changing environment with limited resources;
• Gain experience in conducting a thorough analysis of consumers, competitors, and a company’s
positioning to guide evaluation of and inform a major strategic marketing decision;
• Increase comfort with making decisions involving limited and inconclusive data;
The Case Solution Starts From page 5
,• Understand some of the potential biases and weaknesses of survey-based data;
• Be able to build a marketing plan that supports the repositioning efforts of a small business with
limited resources.
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pl
m
Sa
n
ASSIGNMENT QUESTIONS
tio
1. Consider why it is important for a small business entrepreneur like Patricia Choi to enjoy her work,
and why planning is so badly needed but often neglected by small businesses. Be specific.
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2. What (if any) sources of bias could be present in market research?
3. What conclusions can be drawn from the market research? How do these conclusions help inform
the attractiveness (or not) of repositioning to the staycation consumer? How do these conclusions
So
help inform decisions related to new/altered service offerings, pricing, and/or communications?
4. Evaluate the risks and benefits (i.e., advantages and disadvantages) of repositioning to staycationers.
This qualitative and quantitative analysis should involve a comparison of repositioning to staycationers
versus maintaining the current focus on foreign backpackers and/or additional alternatives.
The Case Solution Starts From page 5
, e
pl
m
Sa
n
tio
lu
So
ANALYSIS
1. Consider why it is important for a small business entrepreneur like Patricia Choi to enjoy
her work, and why planning is so badly needed but often neglected by small businesses. Be
specific.
Becoming an entrepreneur can be a long process for some individuals. Other individuals seem to
achieve success overnight. It is very likely that some students in the class may have significant
experience with entrepreneurship. Identify and encourage these students to share their perspectives.
Ultimately, entrepreneurs are involved with their business 24/7, so if they do not enjoy it, the
perseverance required for success can be a struggle.
Owners and managers neglect planning because:
The Case Solution Starts From page 5
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pl
m
Sa
EXHIBIT 4: ANALYSIS OF FINANCIAL FEASIBILITY
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Max Customers 120 $28,000
Mixed Dorm (10
Price
$250 per
# Bed/Room
tio # of Type of
Room
Projected Revenue per
night
Total Customers per
room
lu
beds/room) person 10 beds/dorm (1 guest/bed) 2 $5,000 20
Double Room $500 per room 1 double bed (2 guests per bed) 10 $5,000 20
So
Family Room $800 per room 5 bunks (1 guest per bed) 5 $4,000 25
Deluxe Double Room $550 per room 1 double bed (2 guests per bed) 10 $5,500 20
1 extra-large double bed (2 or 3 guests per
Deluxe Triple Room $600 per room bed) 5 $3,000 15
Superior Double Room $550 per room 1 large double bed (2 guests per bed) 10 $5,500 20
The Case Solution Starts From page 5
CASE STUDY SOLUTION
e
pl
SYNOPSIS
m
Sa
Located in the heart of Sham Shui Po Hong Kong, Wontonmeen was a hostel that not only
accommodated backpackers and tourists but also served as a collaborative community space that hosted
art, culture, design and music workshops. Wontonmeen was a hub for the local creative community.
n
At the onset of the COVID-19 pandemic, most foreign backpackers could no longer travel to Hong
io
Kong, a trend that continued well into 2021. Wontonmeen’s operations were adversely affected.
Consequently, Patricia Choi, owner and founder of Wontonmeen, was exploring the feasibility of
repositioning to attract new customers, which would involve pivoting from her traditional customer
t
lu
base of foreign backpackers to serving local staycationers.
To explore the repositioning decision, an online survey was conducted along with consumer interviews
So
to better understand the staycation market opportunity. The data provided useful information about the
feasibility of repositioning the hostel to attract local consumers. With the data, Choi could qualitatively
and quantitatively assess the risks and benefits of repositioning.
OBJECTIVES
• Better appreciate the challenges of making marketing decisions as a small business owner in a fast-
changing environment with limited resources;
• Gain experience in conducting a thorough analysis of consumers, competitors, and a company’s
positioning to guide evaluation of and inform a major strategic marketing decision;
• Increase comfort with making decisions involving limited and inconclusive data;
The Case Solution Starts From page 5
,• Understand some of the potential biases and weaknesses of survey-based data;
• Be able to build a marketing plan that supports the repositioning efforts of a small business with
limited resources.
e
pl
m
Sa
n
ASSIGNMENT QUESTIONS
tio
1. Consider why it is important for a small business entrepreneur like Patricia Choi to enjoy her work,
and why planning is so badly needed but often neglected by small businesses. Be specific.
lu
2. What (if any) sources of bias could be present in market research?
3. What conclusions can be drawn from the market research? How do these conclusions help inform
the attractiveness (or not) of repositioning to the staycation consumer? How do these conclusions
So
help inform decisions related to new/altered service offerings, pricing, and/or communications?
4. Evaluate the risks and benefits (i.e., advantages and disadvantages) of repositioning to staycationers.
This qualitative and quantitative analysis should involve a comparison of repositioning to staycationers
versus maintaining the current focus on foreign backpackers and/or additional alternatives.
The Case Solution Starts From page 5
, e
pl
m
Sa
n
tio
lu
So
ANALYSIS
1. Consider why it is important for a small business entrepreneur like Patricia Choi to enjoy
her work, and why planning is so badly needed but often neglected by small businesses. Be
specific.
Becoming an entrepreneur can be a long process for some individuals. Other individuals seem to
achieve success overnight. It is very likely that some students in the class may have significant
experience with entrepreneurship. Identify and encourage these students to share their perspectives.
Ultimately, entrepreneurs are involved with their business 24/7, so if they do not enjoy it, the
perseverance required for success can be a struggle.
Owners and managers neglect planning because:
The Case Solution Starts From page 5
, e
pl
m
Sa
EXHIBIT 4: ANALYSIS OF FINANCIAL FEASIBILITY
n
Max Customers 120 $28,000
Mixed Dorm (10
Price
$250 per
# Bed/Room
tio # of Type of
Room
Projected Revenue per
night
Total Customers per
room
lu
beds/room) person 10 beds/dorm (1 guest/bed) 2 $5,000 20
Double Room $500 per room 1 double bed (2 guests per bed) 10 $5,000 20
So
Family Room $800 per room 5 bunks (1 guest per bed) 5 $4,000 25
Deluxe Double Room $550 per room 1 double bed (2 guests per bed) 10 $5,500 20
1 extra-large double bed (2 or 3 guests per
Deluxe Triple Room $600 per room bed) 5 $3,000 15
Superior Double Room $550 per room 1 large double bed (2 guests per bed) 10 $5,500 20
The Case Solution Starts From page 5
