Service marketing is an essential element in nay business because it shows the strength along with that weakness which can be solved to be on the top position. In this study there is a case of Banyan tree hotel and resort that is at the moments offering services only to the couples with cheaper price and good amount of comfort. The SWOT, Porter's five forces and 7 P's of service marketing theory shows the proper problems along with that solution that can be used to be in the top position. The Banyan tree hotel and resort main targeted customer are couples with an age of 30 to 40 and providing rooms at a very cheaper price. The positioning of Banyan tree hotel and resort is now in the top because of its positive brand image and good service quality.
Service marketing is the process of economic activities by a business to its client. Service marketing includes a process of selling the telecommunication, treatment of health, air travel and much more. In the business service, marketing is an important skill along with that it is tough as well. Service marketing is important because it is used as the key differentiator and customer retention of a service. In addition to that, it also focuses on the making of relationship with the customer that can be helpful for the company. The theories that are used in this study are SWOT analysis, 7 Ps of marketing and Porter's five forces. In this study, there is an analysis of the case study of Banyan tree hotel and resort with the help of the theories that can be applied to make the marketing strong. Moreover, there is a brief discussion regarding the positioning of the market along with that the market condition.
Background of the business
Banyan Tree Hotel and Resort is noted as the leading developer and manager of the premium hotels as well as spas in the Asia Pacific. The Hotel has 25 resorts and hotels, 68 spas along with those 65 retail galleries. Banyan Tree Hotel and Resort is located in more than 55 locations in 23 countries. The revenue of Banyan Tree Hotel and Resort has increased by 30% to $104.9 million as well as the operating profit has also increased with 8% to $36.7 million. In addition to that, Banyan Tree Hotel and Resort has seven operating business segments that include the investments in terms of hotel, hotel residence sales, spa operation and much more. The marketing business of Banyan Tree Hotel and Resort is mainly managed by the international advertising agency. Banyan Tree Hotel and Resort has won huge awards from the Business Traveller Award, Seychelles Best Resort and Best Hotel for Rooms. The idea of entering in the luxury resort was mainly inspired from the gap of the hotel industry. Banyan Tree Hotel and Resort offers various services such as private pool, Jacuzzi or any kind of spa treatment room, which is mainly designed for the guest along with utmost privacy. All Banyan Tree Hotel and Resort were mainly designed to provide a sense of place while enhancing the culture as well as the heritage of the destination (banyantree.com, 2017).
Marketing condition mainly denotes the number of competitors; level in terms of competitiveness along with that the market's growth rate. After the launch of Banyan Tree Hotel and Resort their marketing communication was mainly managed by the international advertising agency. In addition to that, the agency has also designed the logo of Banyan Tree with a tagline of Sanctuary for the Sense. At the beginning of launch Banyan Tree Hotel and Resort, they promoted as the romantic and intimate smallish hotel rather than any kind of luxury accommodation. In the opinion of Lusch & Vargo (2014), market size and market growth are mainly estimated with the arena of differentiation of marketing. The marketing conditions of Banyan Tree Hotel and Resort was mainly set for the guest in terms of creating memories, which are unforgettable.
The advertising of Banyan Tree Hotel and Resort was carried for only a short period in order to gain the recognition of the industry. In the recent time, Banyan Tree Hotel and Resort has increased with a high-level travel magazine in the hotel sector. As per the view of Gummesson (2014), there is a requirement to increase the marketing condition because it is the heart for a successful marketing.
In the marketing aspect, the market positioning is denoted as the perception of a customer, which is related to the brands. In addition to that, the market positioning is referred to the process while establishing an identity of the brand in certain ways. As opined by Rust & Huang (2014), the positioning of a brand it shows the strategic process which is involved at the time of marketing brand. There are some of the brand values of Banyan Tree Hotel and Resort, that include the caring of the human along with that of natural environment too. Banyan Tree Hotel and Resort has a strategy for a brand value that customer and employees can identify as well support in their own life values.
Banyan Tree Hotel and Resort is using the cost leadership strategy for attempting a position which can attract the customer from other rival hotels in the marketplace. Banyan Tree Hotel and Resort is offering fewer prices than others offer and serving more comfort at a cheap price. In the opinion of Cronin & Cronin (2016), a company is using a differentiation business strategy that attempts for the position itself from the minds of the consumers. Banyan Tree Hotel and Resort is using a target where they provide greater service at a low price rate.
The target market is mainly involved in terms of breaking a market while focusing on some key segments as well as the desire of the close related service, which is offered to the customers. The target market for Banyan Tree Hotel and Resort are mainly the couples those are between the age of 30 to 40. In addition to that, the hotel also targets the premium market as well as provides luxury comfort at a cheap price. In the opinion of Kindström & Kowalkowski (2014), the target market is required to set some of the objectives that can be helpful in a good position in the market. As per O'Cass & Sok (2013), the hotel has mainly targeted the couple because the hotel is mostly designed for the couples regarding their intimacy and comfortable. Another reason for the target market for couples because of most of the time there 84 percent of the guest are couples those are looking for intimacy and romance.
Explaining the key aspects of case study with respect to service marketing and principle
The SWOT analysis provides a clear view regarding the future opportunities and their threats, which are required to be solved. In addition to that, there is some strength of which is making a position in the market as well as some weakness those are required to be solved to gain a position in the competitive market. In the opinion of Ganesh & Haslinda (2014), strength shows the strong point of a hotel. Banyan Tree Hotel and Resort main strength is their design and process of innovation because it is a place like a paradise where visit and fall in love with the ambience. As per Rust & Huang (2014), in addition to that, the structure of Banyan Tree Hotel and Resort can be visible from the space as well as the master of the Banyan Tree therapist provide an experience of the true power of the human touch. Moreover, Banyan Tree has stayed with their recent culture in terms of providing services to the guest.
There is some weakness as well that are required to be solved in order to be first in the competitive market. The main weakness of Banyan Tree Hotel and Resort is that it is mainly known for their ecological culture experience that can automatically face some problem and even more if they open their branches to other big cities then it could lose their identity. On the other hand, there are some weaknesses as well like it is to some extent is hampering the natural resources. In the view of NDU, Nnolim & Nwaizugbo (2014), opportunities provide a scope to be better in terms of service marketing in the competitive hotel markets. Banyan Tree Hotel and Resort provide a management service such as brand; they have a strong brand image and brand recognition in the higher segments of a hotel. As per Liang Ma & Qi (2013), in addition to that, the hotel is one of the leading hotels in the world. The main threat for the hotel is their government allegation along with that competitor where many others are planning to open in the same place of Banyan Tree Hotel and Resort.
Porter's five forces
The Porter’s five forces is a tool that is used for the analysation in terms of competition in the business. The Porter's five forces are important because it provides a shape of the competition that is within the same industry. In the opinion of Grönroos & Gummerus (2014), Porter's five forces include the bargaining powers of the suppliers, a threat of new entrants, bargaining power of buyers, a threat of substitutes and the industry rivalry.
Figure 1: Porter's five force
Banyan Tree Hotel and Resort has a strong investment capital of $200 million for the first resort of Laguna Phuket. Hence, it is hard to enter in the sector along with that the non-performing cannot exit easily before entering the market. Moreover, the second mid-range brand Angsana Resort and spa room rate are only $200 - $500 night, which is lower than the Banyan Tree Hotel and Resort. Hence, Angsana Resort price is lower than the 40% of the Banyan Tree Spa. In addition to that, the threat of substitute service makes sure that the brand could extend in some new some channels like the e-travel as well as into the aspects of the leisure and lifestyle. As per the view of Gonzalez-Padron & Ferguson (2015), bargaining power of buyers in terms of individual maximum guest was couple and this hotel is cheapest for the couples that cost around $2500 for four nights. As per Daghfous, Jeremy Ashill & Roger Rod (2013), bargaining power of suppliers come mainly from the electric, food, advertising and furniture. In addition to that, there are various threats from the existing competitors. The main threat is from Le Meridien Phuket Yacht club and resorts because they offer the service of $150 per night and provide the same kind of facilities. Hence, it is seen to some extent the Banyan Tree Hotel and Resort has some threat from rivals but it has a positive image so, it is leading a top position.
Banyan Tree Hotel and Resort 7 P's of the marketing mix in terms of service shows the services that are available for the guest those have come to visit. There are rooms which are provided for the rent along with that are training are provided to the customised outdoor for team building.
The price of Banyan Tree Hotel and Resort are not that much high. As per Yadav & Dabhade (2013), the price of a room is $250 to $500 per night, pavilions and villas are $400 to $4000 per night.
The place of Banyan Tree Hotel and Resort is mainly 60% for the travel agencies. In addition to that, they do their business with 8 nations within 16 resorts.
The promotion of Banyan Tree Hotel and Resort is done through the medium of travel magazines, word of mouth along with that websites.
Banyan Tree Hotel and Resort physical evidence are good in terms of providing the proper services. In the opinion of Schultz, Patti & Kitchen (2013), the physical evidence mainly denotes the service, which is experienced by a guest.
The hotel uses the process of individual advertising to be on the top. Moreover, there may be some issues that can be issued because they mostly maintain their traditional culture of service.
The main targeted people of Banyan Tree Hotel and Resort are the couples those are aged between 30 to 40.
Figure 2: 7 Ps of Marketing Mix
From the above study, it is found that there are various threats for Banyan Tree Hotel and Resort along with that there are opportunities also those are helping for gaining a position in the competitive market. Moreover, most of the targeted customers are the couple because it is mostly a holiday destination.
For the development of an organisation, it is required to set some specific goals that are helpful for achieving the target to be in the top position. The set price is required to be affordable for all kinds of guest. In addition to that, there is a requirement of improving the services for guest. Moreover, the services are required to be for all kinds of guest not just only for the couples. The weakness that is found is required to be solved as soon as possible. The government allegation is required to be solved by following the proper rules and regulation of the hotel industry.
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