Sustainability of a Brand During Rapid Global Expansion
Strategic Marketing Case Analysis
Banyan Tree: Sustainability of a Brand
During Rapid Global Expansion
[pic]
Prof. Julie H. Yu
The Chinese University of Hong Kong
February 2011
A project by:
Keevin Wong
Ian Leung
Daniel Lam
Ada Leung
Enoch Ma
Anna Laura Riemann
Table of Contents
1. Introduction 1 1.1 Company Background 1 1.2 S-T-P Strategy 2 1.2.1 Segmentation 2 1.2.2 Targeting 3 1.2.3 Positioning 3 1.3 Success Factors 4 1.3.1 Strong Brand Recognition 4 1.3.2 Integrated Capabilities 4 1.3.3 Triangular Business Scope 5 1.3.4 Experienced and Multi-disciplinary Management 5
2. Decision Situation 6
3. Proposed Alternatives 7 3.1 Banyan Tree Flagship Resorts in Europe 7 3.2 Strategic Partnership with Hotel Schools 8 3.3 Expansion of Spa Academy to Resort Branch 9 3.4 Spa Business Partnership 10 3.5 Creating a Sub-brand “Business Tree” 10
4. Decision Criteria and Evaluation 11 4.1 Flagship Resorts 11 4.2 Strategic Partnership with Hotel Schools 13 4.3 Expansion of Spa Academy to Resort Branch 13 4.4 Spa Partnership 14 4.5 Creating a Sub-brand “Business Tree” 14
5. Implementation and Recommendation 15 5.1 Spa Partnership 16 5.2 Strategic Partnership with Hotel Schools 17 5.3 Flagship Resorts 18
6. Conclusion 20
1. Introduction
1.1 Company Background
Banyan Tree Hotels and Resorts is a private manager and developer of premium boutique hotels, resorts and spas around the world. The first Banyan Tree resort opened in 1994 and was primarily targeting at highly affluent travelers expecting a luxury retreat. In 2000, Angsana was launched as the sister brand of Banyan Tree. Angsana targeted at a younger segment than Banyan Tree and pricing was typically 20-30% lower than at Banyan Tree resorts.
As of May 2006, the company manages and holds ownership interest in over 18 resorts and hotels, over 49 spas, more than 53 retail galleries and 2
Banyan Tree: Sustainability of a Brand
During Rapid Global Expansion
[pic]
Prof. Julie H. Yu
The Chinese University of Hong Kong
February 2011
A project by:
Keevin Wong
Ian Leung
Daniel Lam
Ada Leung
Enoch Ma
Anna Laura Riemann
Table of Contents
1. Introduction 1 1.1 Company Background 1 1.2 S-T-P Strategy 2 1.2.1 Segmentation 2 1.2.2 Targeting 3 1.2.3 Positioning 3 1.3 Success Factors 4 1.3.1 Strong Brand Recognition 4 1.3.2 Integrated Capabilities 4 1.3.3 Triangular Business Scope 5 1.3.4 Experienced and Multi-disciplinary Management 5
2. Decision Situation 6
3. Proposed Alternatives 7 3.1 Banyan Tree Flagship Resorts in Europe 7 3.2 Strategic Partnership with Hotel Schools 8 3.3 Expansion of Spa Academy to Resort Branch 9 3.4 Spa Business Partnership 10 3.5 Creating a Sub-brand “Business Tree” 10
4. Decision Criteria and Evaluation 11 4.1 Flagship Resorts 11 4.2 Strategic Partnership with Hotel Schools 13 4.3 Expansion of Spa Academy to Resort Branch 13 4.4 Spa Partnership 14 4.5 Creating a Sub-brand “Business Tree” 14
5. Implementation and Recommendation 15 5.1 Spa Partnership 16 5.2 Strategic Partnership with Hotel Schools 17 5.3 Flagship Resorts 18
6. Conclusion 20
1. Introduction
1.1 Company Background
Banyan Tree Hotels and Resorts is a private manager and developer of premium boutique hotels, resorts and spas around the world. The first Banyan Tree resort opened in 1994 and was primarily targeting at highly affluent travelers expecting a luxury retreat. In 2000, Angsana was launched as the sister brand of Banyan Tree. Angsana targeted at a younger segment than Banyan Tree and pricing was typically 20-30% lower than at Banyan Tree resorts.
As of May 2006, the company manages and holds ownership interest in over 18 resorts and hotels, over 49 spas, more than 53 retail galleries and 2