Associate Prof. Guntalee Ruenrom, Ph.D. & Ajarn Yayus Mak
MBA English Program #3
Kotchaphan | Laochareon | 518 27814 26 |
Ratanapong | Sanpote | 518 29421 26 |
Thanan | Sastarasadhit | 518 28530 26 |
Karit | Yuvaboon | 518 28094 26 |
For the Course of
2605691 Seminar in Marketing Management
Faculty of Commerce and Accountancy
QUESTION 1 : Identify the primary issues in the case.
Between 1997 and 2005 a series of crisis severely challenged the hotel industry and stake holders, especially in asia region, which never before have so many issues that causes a crisis that ...view middle of the document...
Price competition was experienced in 2003 – 2005 and new hotels competitive advantage.
In order for the company to be sustainable in the global market place, it can no longer just rely on competing with costs from manufacturing efficiencies and low cost production. Banyan tree created unique value proposition by offering total brand experience to customer which becomes the unique selling proposition, to be discussed in the following section.
QUESTION 2: What value propositions does Banyan Tree offer as an experiential brand?
An experiential brand goes beyond simply delivering its core products or services. It connects customers with emotions, desires and lifestyles that all together deliver the total “outcome” or “experience” of the brand. The value proposition of an experimental brand does not only aim to offer consumers with functional value, but also emotional values through conceptualize interactions with consumer and bring them along the pathway to see, to feel, to use, to remember and to experience it.
Banyan tree offers customers with more than just a luxury place to stay for the holidays. It has combinations of signature features of the hotel such as a tropical garden spa is also a crucial tool in delivering brand experience through its distinctive products and services authenticated by Banyan tree’s secret know how. As a result, Banyan tree delivers its value proposition to customer when they stay at the hotel as a luxury retreat with romance, intimacy and rejuvenation.
In addition, Banyan tree focuses on CSR campaign as one of their core brand building strategy. This creates value to banyan tree as an aspirational brand in the eye of their customer. Consequently, the customers are willing to pay premium price to banyan tree and their loyalty is enhanced, as they believe in Banyan tree’s value.
QUESTION 3: Evaluate Banyan Tree’s evaluation plan. What are the potential risks that Banyan Tree should be aware of and how can it mitigate such risks? Based on current resources, is it realistic and achievable?
Banyan tree evaluates the expansion to new locations based on critical criteria which are:
* The natural beauty and the feature that can go along with banyan tree brand characteristic
* Potential to achieve high price-to-cost ratio
* Accessibility of the location
* Potential market demand
* Potential to establish a premium niche position in the location
* The existing basic infrastructure of the location
Despite carefully selecting the locations through mentioned critical criteria, Banyan Tree involves uncontrollable risks which are:
* Legal and political instability
The instable political situation can greatly affect the business and profitability of Banyan Tree in the long –run. Given the example of Thailand market, the latest political unrests has caused fears for tourists causing the slum in the whole hospitality industry.
* Inconsistent quality standard due to cultural diversity