Canyon Ranch Case Study

Topics: Marketing, Customer relationship management, Customer service Pages: 7 (2434 words) Published: October 19, 2010
Canyon Ranch: A Case Analysis
Recreation is an important need of most individuals at present. With all the pressure acquired from work, a way to relax and relieve the stress is indeed necessary. Going to beaches and resorts is one good way to relax. Canyon Ranch, however, is not just any place for vacation. What makes this place different from others is its objective that is not only focused on bringing relaxation but also quality and healthiness in each of its clients. A vacation spot known for its health spas, Canyon Ranch has been considered a pioneer for setting the standard for health resorts since 1979. Currently, Canyon Ranch offers both health resorts and spaclubs in various places within the United States. In addition, Canyon Ranch enables its clients to experience quality and healthy living through its various amenities including fitness and outdoor sports, spa services as well as medical and nutritional consultations. Though Canyon Ranch has already been known for its standard and high class services and features, competition and change in business should still be considered. Hence, in spite of the success of Canyon Ranch as a health resort, this case analysis will concentrate on assessing the business’ abilities and areas for improvement. The main goal of this analysis is to suggest useful alternatives to improve the services offered by the resort. Part 1: SITUATION ANALYSIS

A. Analysis of the Firm
The mission of Canyon Ranch lies on the resort’s purpose to inspire both its clients and staff to commit to healthy and quality living. In addition, it is also the mission of Canyon Ranch to turn the hopes and intentions of the clients into enjoyment and fulfillment. Root Marketing Strategy

Canyon Ranch is a firm that does not rely on heavy marketing or advertising strategy. The company rather focuses itself on affiliations with dependable partners and on direct communication. Canyon Ranch is commonly referred to as a word of mouth referral business. Hence, the root marketing strategy of the firm is dependent on satisfied customers bringing other clients who have never been to Canyon Ranch before. Marketing Mix

Product. The product and services offered by Canyon Ranch is mainly divided into two categories. The first one is the Destination resort, which actually function as the main foundation of the company. These destination resorts are further subdivided into three departments, which include Health and Healing, Hotel and Spa. In these resorts, customers can avail numerous services such as fitness classes, lectures and outdoor activities. The other main product category of Canyon Ranch is the SpaClub. Although this category complements the destination resorts, it focuses on providing fitness, salon and spa services. This product line also lacks the Health and Healing aspect. Price. Compared to other similar businesses, Canyon Ranch offers price rates that are about 25 to 30 percent higher. Guests who wish to stay for three to four nights would typically spend two thousand to two thousand five hundred dollars per stay. Loyal customers are given the option of availing the benefits of centennial membership, which offers significant discounts and perks. With this feature, guests may acquire a 50% discount for room rates as well as a 10% discount on services. Place. The products and services of Canyon Ranch are distributed to different states in the US including Arizona, Massachusetts, Las Vegas and Florida. Hence, interested customers within the country can easily access the resort and spa by going to the company branch near them. In addition, the company is accessible online. Thus, the company is able to distribute its products and services to foreign clients through online marketing. Promotion. Rather than allotting substantial finances for advertising, Canyon Ranch depends on customer referral and word of mouth. Moreover, the company also has its own website, which describes all the...
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