International Marketing

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Banyan Tree Hotel and Resorts

John Kaendera

MBA6400 International Marketing
Professor Paul Herbig

Banyan Tree Hotel and Resorts Banyan Tree Hotels and Resorts had become a leading player in the luxury resorts and spa market in Asia. As part of its growth strategy, Banyan Tree had launched new brands and brand extensions that included resorts, spas, retail outlets, and even museum shops. The company had to contemplate how to manage its brand portfolio and expand its business while preserving the distinctive identity and strong brand image of Banyan Tree, its flagship brand. In this case study we will answer the following questions:

1. How would you describe the appropriate target market(s) for Banyan Tree?  How wide is its geographical reach-local, regional, global?

The target market for Banyan tree is the high end market. These are couples that are well off and are able to pay $2,500 for four nights. The target audience is couples that are interested in romance and appreciate the finer things in life. Moreover, these are people that want excellent service but not at a very high prices. Those that are looking at a place to relax are the persons that come to the Banyan Tree.

In general the target segment was those in their 30s and 40s that wanted luxury accommodation that stressed romance, intimacy, privacy and rejuvenation. It targeted those that sought private individual villas that had love-nests for couples. Some other target audiences are corporate clients. The companies could hold their corporate meetings, retreat or special conferences at the Banyan Tree. The target audiences were high spending companies like financial companies, information technology companies and aerospace industries. Banyan Tree also targeted companies that wanted to conduct off site training programs including team-building programs.

The reach of Banyan Tree is global. The season is that its sales offices are located in the USA, UK, Thailand, Taiwan, South Korea, Singapore, Japan, Hong Kong, Australia and Germany.

In short, Banyan Tree is targeting high end, premium customers that are seeking a few days of privacy among exclusive surroundings. Those that are seeking luxury at reasonable prices are the targets of Banyan Tree. Such couples are spread all over the world and belong to the upwardly mobile and successful person in their 30s and 40s. Companies that are seeking an off site venue for training programs are also targets for the Banyan Tree.

2. In these markets, who are the main competitors? What are the competitive advantages of Banyan Tree (country-or firm-specific advantages)? Disadvantages?

The main competitor of Banyan Tree is Aman Resorts, Four Seasons and Ritz Carlton. The other competitors are Le Royal Meridian Phuket Yacht Club and resorts within Laguna Phuket. These competitors are based on location. The competitors had the advantages of offering room rates as low as $150 per night. Moreover, the competitors offered a multitude of facilities like water sports and golf, dining options, day trips and excursions, and health and beauty treatments. These resorts also provided facilities like kid's club for the families that patronized them.

The Le Royal had captured the high end of the luxury market and other competitors offered mainly room and suite type of accommodation. Many offered accommodation close to a beach.

Banyan Tree has competitive advantages are that It offered exclusive love-nest type of accommodation that was based on romance, intimacy, privacy and rejuvenation. The Banyan Tree offered an experience to its customers. It focused on having individual villas and this was an option not being offered by other top-class hotel chains.

The competitive disadvantage of Banyan Tree is that it is not the lowest priced accommodation in the category, nor is it the highest of the top end accommodation. Moreover, Banyan Tree would not be...
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