Case Analysis – Ben Ohau Lodge
Ben Ohau Lodge, located in the high country of New Zealand, is a high-class resort aimed at the world’s most exclusive clients. Started by a New Zealander and his Indonesian friend, this pricey resort provides every accommodation a particular segment of wealthy clientele could ever ask for. Understanding the market brought about a breakthrough opportunity for Ben Ohau Lodge, and it has led to some success. Relying solely on promotion via word of mouth, publicity, and public relations, the retreat has built a relatively steady base of customers. These customers fall into some rather exclusive dimensions. Some of the qualifying dimensions include the need for a safe and secure vacation spot, offering luxuries and amenities. They must also be in the upper social class, meaning they fall into the top 1% of the income bracket. This means that by default, the customers will be foreign rather than New Zealand locals. According to the Forbes List of Billionaires for 2013, only 3 of the 1426 are from New Zealand. One of the most defining dimensions of this market segment is a love of nature and isolation. Not all wealthy people fall under this category. Ben Ohau Lodge does not provide spas, shopping, or upscale dining, all of which would be attractive to a large segment of a wealthy market. Another defining dimension is the ability to be out of contact for the length of the vacation. Internet and cell phone service is at a low, if available at all. Many of the world’s wealthiest people need to be in constant contact with their business associates, which would place them out of the target market segment. Looking at their resources, the Lodge needs to keep their market segment small, focusing in on the prominent, wealthy figures who appreciate the seclusion of the New Zealand countryside and the activities inherent to that environment. Ben Ohau Lodge has defined a market segment that is homogeneous within itself, extremely different than...
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