Institute International School of Business and Research

Name Karthik N
Reg. no PG18118
Batch PGDM 2018-2020
Subject Promotion & Relationship
Assignment 1 405
Lecturer L Surendra

This is an individual assignment.

Submitting report in soft copy before 17th April 2020.

Part A:

1. Case: Banyan Tree Hotels and Resorts: Answer the questions given at the end of
the case. (15 marks)

Ho Kwon Ping established the Banyan entity in 1994. This is with the Banyan Tree as its brand. A gap
that existed in the hotel industry triggered its establishment. The target market was clients who
needed privacy and intimate accommodation at affordable costs (Wirtz & Lovelock, 2009).

Today, it is ranked as one of the best luxury resort in Asia with 15 resorts and hotels, 35 spas, and 38
retail shops in more than 40 locations in 20 countries, a feat that even the big hotels took years to
establish (Wirtz & Lovelock, 2009).

The success of this resort firm is linked to its brand and the extension made to the brand, the swift
marketing strategy, communal participation and incorporation of the world marketing programs.
This addresses diverse concerns such as

1. The factors that contributed to accomplishment

2. Evaluation of Banyan Tree’s brand marketing procedures
3. Brand and product portfolio

Questions:

(a) What customer segment can BTHR aim for their Kerala project?

The customer segment can BTHR aim for their Kerala project are:

Five different brand segments: Banyan Tree Gallery, Angsana Gallery, Elements Jewelry By Banyan
Tree, The Museum Shop by Banyan Tree, and the recently launched Elements Spa Essentials.

• 52 collections of over 600 products.

• Partners 52 not-for-profit organisations

Successfully created two strong brands that enjoy top-of-mind recall for incredible getaways at
unforgettable locations like Kerala. Banyan Tree targets the discerning, affluent traveller seeking an
indelible retreat with its focus on romance, intimacy and rejuvenation. Its sister brand, Angsana, was
launched in 2000 to entice the younger segment with its refreshing spa treatments and indigenous
yet contemporary interior designs. From beach resorts to mountain retreats, from Kerala city
escapades to desert oases, each is created uniquely in a perfectly chosen location, designed to
reflect the heritage and culture of its surroundings, yet with a contemporary twist that is uniquely
Banyan Tree. Both the Banyan Tree and Angsana brands offer experiences that are much sought
after by their respective target markets and are well positioned to grow when the current global
situation improves.

Banyan Tree is a peerless resort hotel operator – but we have grown beyond this to a unique
business model with seven business segments generating multiple revenue streams. These include
Hotel Investments, Hotel Management, Hotel Residences, Spa Operations, Property Sales, Gallery
Operations, and Design and Other Services. With our wide-ranging multiple businesses, we
generated increasing revenues and profit contribution to our Group beyond the hotel investments
division. From 2004 to 2008, revenue contribution from business segments other than Hotel
Investments increased from a combined 38.8% to 50.3% and EBITDA contribution rose from a
combined 44.6% to 64.3% – a testament to our ability in being more than just a hotel owner. This
multi-brand, multi-business model is unique in the industry. It appeals not just to discerning
travellers, but also to affluent homeowners and astute investors. This formula is difficult to duplicate
and makes Banyan Tree such an attractive investment.

(b) Identify two differentiating factors that BTHR can consider for including in their
advertisement communication.

In the first two years after

Banyan Tree was launched,
the
company’s marketing
communications was
managed by an
international advertising
agency. e agency also
designed
the Banyan Tree logo shown
in Exhibit 5 and, together
with the management,
came up with the marketing
tagline
“Sanctuary for the Senses.”
In the first two years after
Banyan Tree was launched,
the
company’s marketing
communications was
managed by an
international advertising
agency. e agency also
designed
the Banyan Tree logo shown
in Exhibit 5 and, together
with the management,
came up with the marketing
tagline
“Sanctuary for the Senses.”
1. Individual Villas with
 Private pool
 Jacuzzi
 Spa treatment room

2. Culture and heritage of the destination

 Reflects in the architecture
 Furnishing
 Landscape
 Vegetation
 Services offered
 Privacy of the guests

 In
1. The resorts were designed to blend into the natural landscape
2. Used natural foliage and boulders as a privacy screen
3. The furnishing was deliberately native to convey the exoticism of the destination
with its rich local flavour and luxurious feel.
4. Service delivery process varied according to local culture and practices.

 Dinner on a traditional Thai long boat

 Accompanied by private Thai musicians
 Coupled were blessed by Buddhist monks
 In Maldives, wedding ceremonies are conducted under water

Banyan Tree Spa

 First tropical garden spa in the industry

 Offered variety of aromatic oil massages
 Face and body beauty treatments using traditional Asian therapies
  Choice of indoor or outdoor treatment
 Spa products were natural, indigenous and made from local herbs and spices
 Relied mainly on the ‘human touch’ instead of energy-consuming high-tech
equipment

Banyan Tree Gallery

 Items sold were made by local artisans

 Included traditionally woven handmade
 Handicrafts
 Tribal art
 Spa accessories

Advertisement communication

 International advertising agency was hired for the company's marketing

communications
 Designed the Banyan Tree Logo
 Came up with the marketing tagline “Sanctuary for the Senses
 Initially extensive advertising was carried out for the short period of time to gain
recognition in the industry
 Then advertised in high end travel magazines in key market
 The advertisement was visual in nature with succinct copy or showcase the awards
and accolades won

Brand awareness through public relations and global marketing programs

 Relationship with travel editors and writers

 Web site
 Targeted wealthy customers through agents

(c) Recommend suitable media class, vehicles and options for the advertisements.

To cross-promote spas and hotels to a wider, global audience, we identified and formed
relationships with strategic marketing partners during the year. Among our pre- and post-opening
sales and marketing activities were introductory offers for in-house guests at our hotels, e-direct
mailer campaigns targeting the local database, commissionable rates through tour operators, special
rates for nearby businesses, and direct tie-ups with the hotels to create visibility. Public relations
activities included media campaigns to generate awareness of the training of our spa therapists and
the expertise of Banyan Tree Spa Academies, as well as new spa openings and initiatives such as the
Body Rejuvenation Programme and Master Therapist Experience at Banyan Tree Spa Bangkok and
Phuket, and the opening of an Ayurvedic centre at Angsana Spa Allamanda Laguna Phuket. Our
strategic public relations efforts led to an increase in the awards and accolades for both our spa
brands.

Given the fierce competition in most locations, revenue growth was highly dependent on increasing
capture rate from in-house guests, regulars and members. This was the focus for our more
established spas. In order to differentiate ourselves from the competition, we emphasised service
consistency. We also continued to practise effective yield management, building base during non-
peak hours by offering discounts, whilst maximising revenue during peak hours. In addition, we
focused on enhancing the guest experience through value added services like supplementary
treatments and complimentary transfers.

Attractive discounts on advance spa sales at point of reservation helped to secure business prior to
guests’ arrival at the resort. At the same time, our memberships and rewards programmes
continued to attract customers and build loyalty. For example, discounts were given for repeat visits
and referrals. For Corporate and MICE companies, we offered attractive group discounts to create
goodwill.

2. Answer:

Campina, a Netherlands company, is known for dairy products like flavoured milk,
yogurt drinks, puddings, cheese variants etc. The company also has presence in
Belgium, Germany, Russia, Argentina etc. One of its advertisements for yogurt
‘Campina Optimal’ for the Netherlands market is attached. Identify the market
segment the advertisement is addressing. Also comment on the message the
advertisement is conveying to the identified market segment.

Campina Optimal 0.1% fat yogurt drink

The market segment the advertisement is addressing

ogurt, a food already considered to be healthy, can

benefit from health messaging and promotion. A market exists for yog-
urts containing added health benefits
Yogurt, a food already considered to be healthy, can
benefit from health messaging and promotion. A market exists for yog-
urts containing added health benefits
Yogurt, drink already considered to be healthy, can benefit from health messaging and promotion.

Yogurt consumers were categorized into four seg-

ments, based on the pattern of their utility values. Health Seekers (33%)
want healthy yogurts, but are not willing to sacrifice taste, the Product
Lovers (24%) eat yogurt because of the health benefits, Anti Healthy
Devotees (36%) are driven by the total taste, textural, and situational
experience of consuming yogurt, whereas Flavor Cravers (7%) are loya
Yogurt consumers were categorised into four segment based on pattern of their utility values Health

Seekers (33%) want healthy yogurt, but not willing to sacrifice taste, the product lovers (24%) drink Yogurt

Because of health benefits . Anti Healthy devotes (36%) are driven by the total taste, texture and

Situational experience of consuming.

This campaign says fat is not contained/visible which will push to drink more you healthy & active throughout
the day.

The Four Segments of Yogurt Consumers:

Preferences and Mind-Sets
T. Luckow
H. R. Moskowitz
J. Beckley
J. Hirsch
S. Genchi
ABSTRACT.
Yogurt, a food already considered to be healthy, can
benefit from health messaging and promotion. A market exists for yog-
urts containing added health benefits

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