Marketing Analysis of Banyan Tree Hotels and Resorts - Case Study Example

Running Header: Banyan Tree Student’s Name: Instructor’s Name: Course Name & Code: Date of Submission: Executive Summary Mr. Ho Kwon Ping led Banyan Tree in positioning itself towards providing private and intimate accommodations. Tree Hotels and resorts has become a leading player in the spa and luxury resort market in Asia. Banyan Tree has launched new brands, brand extensions including retail outlets, spas, retail, and museum shops. The company has succeeded due to factors including its unique services and extensive marketing strategies. High levels of standards have also led to company being at a better position than its competitors are. Services like aromatic massage and other romantic intimations are other services that have played a greater role in brand positioning of the company. Increased brand awareness has also contributed greatly towards its positioning. Brand management has enabled Banyan to highlight how special its services are as compared to its competitors. Banyan Tree Brand positioning has played a key role in ensuring its services are placed at a better position in its customer’s mind. This has worked hand-in-hand with communication strategy. They are various recommendations that Banyan require to put in place as well as various market actions towards bringing change in its operations. The success of Banyan Tree can be attributed due to its knowledge that it knew the value of customers. It also created the brand and even applied the understanding in shaping truly differentiated customer experience (Abraham, 2005, p. 68). Introduction Banyan tree Hotels and Resorts are the leading player in spa markets and luxury resorts in Asia. Banyan tree started its operations in 1994 in Phuket, Thailand. It has grown into leading developer and manager of niche and premium hotels, resorts, and spas in Asia-Pacific region. Banyan Tree Holdings Pte Ltd (BTHL) owned, managed, and operated 35 spas, 38 retail shops, 15 hotels, and resorts. These are located in more than 40 locations in 20 countries (Steven, 2006, p. 65). Ho Kwon Ping who is a travel enthusiast and former journalist founded banyan Tree. Banyan Tree operations began with only one resort in Phuket. The Company was so successful after the launch that, it built two other resorts at Vabbinfaru Island in the Maldives and Bintan Island in Indonesia. Other regions include Bahrain, Thailand, Seychelles, and Bangkok. Banyan Tree was named after a fishing village on Lamma Island in Hong Kong referred to as Yung Shue Wan in local dialect. Ho decided to name his resort Banyan Tree positioning it as a sanctuary for intimacy and romance. Banyan Trees resorts has individual villas with private pool, spa or Jacuzzi. The Banyan Tree has architecture, vegetation, landscape; furnishings and services offered reflect and enhance destination’s heritage and the culture. Services provided at Banyan Tree are determined in terms of customer satisfaction but not relying on the typical service standards within hospitality industry. Some of the services provided include variety of aromatic oil massages and body and face beauty treatments (Banyan Tree, 2010). Banyan Tree Success Various factors have contributed to the success of Banyan Tree internationally. Variation of service delivery according to the local practices and culture and at the same time being consistent with intimacy and romance is a major factor that contributed to its success. The high levels of standard offered played a key role towards the success of Banyan Tree. The service standards were determined in terms of customer satisfaction other than usual service standards in the hospitality industry. The products and services offered at Banyan Tree were visualized with the intended customer experience in mind (Jean-Noel, 2008, p. 143). Such services included the intimate moment’s package particularly for couples. The couples are provided with a variety of aromatic massage oils in order to inspire their intimate moments. Other services that played a key role towards success of Banyan Tree face and body beauty treatments using traditional Asian therapies in addition to a choice of outdoors or indoors treatment. The international marketing through international advertising agencies was also a key booster towards its success. They mainly emphasized on romantic and intimate experiences that were provided by the hotel other than luxurious accommodation like that which was provided by its competitors. Their excellent service with low cost also contributed greatly towards its success (Trout & Rivkin, 1996, p.342). Increased brand awareness contributed largely towards success of Banyan Tree. This was through global marketing programs and public relations. This increased the editorial coverage on Banyan Tree products and services. Positioning/Brand management is a process of determining how to differentiate the product a firm is offering from that of its competitors in consumer’s mind. It can also be referred to as management decisions on marketing that communicate to stakeholders on the brand, personality, characteristics, and product (LeMasters & Heffring, 2002, p.132). This is towards differentiating it from that of its competitors. Banyan Tree services are different from that of its competitors because it does not only concern itself from luxurious appearances and life but rather the satisfaction of customer. This is through offering intimate moment package that most customers did not forget. Banyan Tree has positioned itself due to its intangible, experimental nature of services. A well-defined positioning helped Banyan Tree prospective customers get a mental fix on its brand and in particular special services it offered. These contributed greatly towards success of Banyan Tree in its operations and providing services as compared to its competitors. Effective positioning and good brand management played a key role in its success (Schmidt & Chris, 2002, p. 54). Brand Positioning and Communication Strategies Brand positioning is a way of identifying the product or services brand’s best location in the minds of the customers with regard to the competitors. Proper positioning assists towards facilitating brand understanding (Michael, 2010, p. 167). Banyan Tree created and fostered a foundation in the minds of its customers about its unique products and services. Banyan Tree provided the services that ensured consumers preferred them in preference to other competitors. The services it provided were far much ahead and different from that of its competitors. Services like body massage and intimate moment package for couples positioned itself in the minds of prospective customers such that it acquired a good reputation among hospitality services providers. Services at Banyan Tree were determined in terms of satisfying customers other than typical service standards in the hospitality industry. Services like decoration of guests’ rooms with incense, satin sheets, candles, and chilled bottle of wine or champagne contributed greatly towards brand positioning. Other services were outdoor bath with flowers and bath oils as well as aromatic massage oils that inspired those intimate moments. Creation of brand ownership among employees assisted towards delivery of special experiences for the guests. This is through training employees on basic elements of five-star services. Marketing communication assisted Banyan Tree towards informing its customers about the services and their values. It also assisted in persuading customers about their special products/services, which offered solution to customer needs. Marketing communication reminded customers of the availability of the services they offered hence motivating them to go for them at the Banyan Tree Resorts. The marketing strategies created a powerful, tangible image that made Banyan Tree Resorts to gain high credentials and reputation (Audrey, 2003, p. 125). Marketing communication strategies ensured that customers were assured of efficient and satisfactory services. Banyan Tree is capable of maintaining its position in the increasing overcrowded resort and hospitality market. This is only if it continues to utilize its strategies and improving its services. It should also continue offering its exceptional services to its customers. The unique service experiences at Banyan tree will keep it in its top position. Brand and Product Portfolio Angsana is the sister brand of Banyan Tree that was launched in 2000. Angsana Tree inspires it for its crown of Golden flower. Angsana resorts are design as chic, vibrant, and contemporary to live life sense and spontaneously to the moment. Angsana resorts are found in Bintan, Indonesia, Maldives Velavaru, Great Barrier Reef, Australia, and Bangalore, India. The colors of Angsana joined the Angsana Portfolio in 2003. This boutique hotel collection is the cultural tourism and soft adventurer sector. The brand portfolio of Banyan Tree, Angsana and Colors of Angsana had a central theme of the romance of travel as well as beauty of discovering the world. Product portfolio of beach resorts, city hotels, spas, galleries and museum shops also fit as a family. These are part of brand extensions as well as launch of new brands by Banyan Tree. Product portfolio also assists towards increasing its services and products globally. Banyan Tree targets the higher end of the luxury resorts market while Angsana assists in targeting the wider market. The colors of Angsana range of boutique hotels catered for soft adventure tourism segment, which is one part of entire romance industry. Therefore, there is need of having them as a family in conjunction with associated portfolio of beach resorts and city hotels, museum shops, spas, and galleries. The importance of having it as a family is to assist Banyan Tree in managing its brand portfolio as well as preserving distinctive identity and its strong brand (Fan, 2002, p. 183; Holt, 2004, p. 98). Some of the major theories that Banyan Tree utilized were marketing strategy, branding, and positioning or marketing. Positioning created an image gained a certain position in the minds of customer for their services and other associated products. These have enabled brand portfolio to become well established and as one family together with Angsana and colours of Angsana. Branding has also assisted in lowering the marketing cost as well as making quicker identification with increased international business in the brand portfolio (Darin & Chad, 2000, p. 67; David, 2004, p. 89). Banyan Tree should emphasize more on marketing and positioning in the competitive hospitality market. It should also lay a lot of emphasizes on marketing strategy to enable it focus on limited resources on the greatest opportunity. This will enable it achieve a sustainable competitive advantage among its competitors with increased market share in hospitality industry (Subroto, 2005, p. 132). Banyan Tree should ensure it has stronger marketing strategy towards gaining more dominance in future of the targeted market niche. Other areas that Banyan need to put into consideration towards its prosperity include advertising, internet marketing, and public relations. It should market its unique services through extensive marketing. This will ensure it gains a good percentage of market shares hence a leading market share (Gardner and Garett, 2008, p.89). Marketing Actions They are three major marketing actions that will assist in bringing change in Banyan Tree Resorts. They include developing an integrated marketing communication plan. This plan should integrate and incorporate key strategies for public relations, marketing, and advertising. This will assist Banyan Tree in becoming successful as well as bringing change in its functions. Second marketing action is developing a stronger positioning statement and compelling message as well as offer to the target market (Hunt, 2002, p. 231). This will bring change in the company by ensuring that the market share is increased through effective marketing. The third marketing action is clearly defining the market objectives and strategies. Marketing plays a key role towards bringing change in any organization. Therefore, Banyan Tree should ensure it puts in place key objectives or strategies towards achieving desirable change within hospitality industry (Glenn, 2010). Conclusion Banyan should put more efforts in marketing and putting into action more effective marketing strategies. It should market its unique hospitality services through extensive marketing in ensuring its market share is increased. Stronger marketing strategies should be emphasized in ensuring effective and increased market share. Integration of key strategies such as marketing, public relations, and advertising will ensure there is increased market share in the competitive hospitality industry (Uma, 2006, p. 139). Banyan tree Hotels and Resorts have the largest spa markets and luxury resorts share in Asia. This is mainly due to its unique services that include aromatic oil massages, body, and face beauty treatments and intimate moment package particularly for couples. Success of Banyan Tree can be attributed to various factors including its unique services that are different from those of other competitors. The intimate experience and international marketing are other major contributors of success in Banyan Tree Resorts. Banyan Tree provided the services that were more preferred to other competitors. Marketing communication strategies ensured that Banyan Tree assured customers of their unique quality services. The brand portfolio in Banyan Tree, Angsana and Colors of Angsana fits to be a family as part of service and marketing expansion internationally (Rita, John & Sameena, 2004, p. 152). They are three main market actions that Banyan require to put in place in order have positive change. They include developing an integrated marketing communication plan. The second market action is developing a stronger positioning statement and compelling message as well as offer to the target market. The last market action is defining the market objectives and strategies. References Abraham, P. (2005). International encyclopedia of Hospitality management. London: Butterworth-Heinemann. Audrey, G. (2003). Services marketing and management. New York: SAGE. Banyan Tree. (2010, October). Banyan Tree Resorts and Hotels. Retrieved October 2, 2010, from http://www.banyantree.com/index.php/en/offers/ Darin, G. & Chad, M. (2000). The Banyan Tree: Creating the Enduring Growth Company. Calcutta: Orion Business. David, A. (2004). Brand portfolio strategy: creating relevance, differentiation, energy, leverage, and clarity. Victoria: Simon and Schuster. Fan, Y. (2002). “The National Image of Global Brands”, Journal of Brand Management, 9(3), 180-192. Gardner, H. and Garett, E. (2008). Marketing Theory: Evolution and Evaluation. New York: John Wiley & Sons. Glenn, J. (2010, August). Ten Strategic Marketing Actions to Ensure Success in Your New Year from Your Strategic Thinking Business Coach. 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