Waituiwa Lodge is an exclusive getaway located in New Zealand’s South Island with a going price of NZ$700 (approximately US$516) per night that offers various outdoor activities designed to attract the richest and most prestigious people in the world. The main appeal of the lodge is its extraordinary seclusion, providing elite with privacy that they require. While the company has shown success in their strategies, they are currently facing dissension from the locals about their exclusivity, offering services primarily targeted for the male population, and using promotion strategies that may not sustain long-term customer loyalty.
Waituiwa Lodge’s Marketing Strategy:
* Target market: Wealthy elite who enjoy traveling and the outdoors, looking for an exclusive vacation providing ultimate privacy and an escape from their everyday lives * Specifically, the lodge is interested in targeting prestigious and well known members of the world (i.e., presidents, celebrities, CEOs) * Marketing Mix:
* Product: An exclusive outdoor getaway complete with various activities including hunting, safaris, horse-trekking, golfing, helicopter rides and more * Price: NZ$700 per night (incredibly inexpensive for the given target market and compared to other elite options for hotels) * Place: South Island of New Zealand, 28,000 acres of secluded terrain inhabited by elk, deer, chamois and wapiti * Promotion: The primary promotion strategy is relying upon word of mouth, publicity and public relations
Problems: Currently, the lodge is not maximizing on its potential for the given target market. They need to alter aspects of their product offering in order to increase interest of the desired target market while also encouraging long-term customer loyalty. The promotion strategies used are not the most effective ways to advertise for long-run success, as there is no control over positioning of the brand. Lastly, the lodge has not been accepted by the local community and is currently dealing with negative feedback from New Zealand lobbyist groups.
Opportunities: Waituiwa Lodge has an opportunity to increase their profit and customer base by expanding their offerings, as well as by expanding promotion. This would also improve customer loyalty and create a more personalized experience. Lastly, the lodge can create a positive local image by giving back to the community in order to avoid further backlash and negative publicity.
Decisions: Waituiwa Lodge must develop a cost-effective way to expand amenities and consequently appeal to a larger target market while staying true to its position of providing a private elitist vacation. To avoid further negative publicity, the owners need to find the best way to appease the lobbyist group that is criticizing their business model. In addition, they also need to perform research to determine the most effective and controlled method of promotion.
1. Increase amenities to include a spa, five-star dining featuring dishes of game hunted by hotel guests, personalized planning with consultants before guests arrive, and vacation “thank you” follow-ups, all in order to increase customer loyalty (+) expand target market to include women, increase revenue in long-run, provide competitive advantage, and make vacation more personalized to specific guest needs/wants (-) start-up cost and fixed cost of new amenities are extremely high with risk of potential failure, necessary increase in staff, training and space would be expensive, disruption during construction period 2. Leave the lodge as is
(+) won’t incur any new product costs, current structure seems to be working as is (-) No sustained growth, possibility that the customer loyalty is short-lived, small target market Price Options:
1. Increase the price to NZ$2,000 (approximately US$1,474) per night (+) a large increase in revenue, will still appeal to...