INTRODUCING THE CASE
“BANYAN TREE”In the year 1994 founded by “Ho Kwon Ping” , a travel enthusiast and former Journalist.
Ho earlier use to manage his family business competing mainly on cost.
One year after the opening, they had to close their factory.
Ho then realized that a low cost strategy would be difficult to follow and decided to build a strong brand to maintain a competitive advantage.
The idea of entering the luxury resorts was inspired by the gap in hotel industry that giant chains such as Hilton and Shangri-La could not fill.
There existed a market segment that wanted private and intimate accomodation without the expectation of glitzy chain hotels.
Ho saw potential for offering an innovative niche product that could also bridge the price gap in this market.
BRAND ORIGINHo came up with the idea of building a resort
comprising individual villas, exotic in architectural design and positioned as a romantic and intimate escapade for guests.
The brand had its origin from the Banyan Tree Bay which was a fishing village on Lamma Island in Hong Kong.
Ho remembered it for its large canopies of the Banyan Tree resembling the shelter afforded by Asia’s tropical rainforests and also he remembered it to be a sanctuary of romance and intimacy.
THE SERVICE OFFERINGIndividual villas.Private pools.Jacuzzi or spa treatment room.Concept of providing “a sense of place” to
reflect and enhance the culture and heritage of the destination.
Natural landscape of the surrounding environment.
Rich local flavor and luxurious feel.
PRESERVING THE ENVIRONMENT
Resorts were built from scratch using raw materials as far as possible, and at the same time minimizing the impact of the environment.
Villas in Rainforest constructed around existing trees.
Fresh water supply obtained by desalination, and not the underground water-table disrupting the ecological system in the long run.
Toiletries provided were nontoxic and biodegradable.
Treatment of waste water and recycling of it for irrigation of resort
Branding Services
• What is a Service? “A service is any activity or benefit that one party can
offer to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product”.
Kotler and Amstrong (1997, p. 265)
• What is a Brand?“…….. a name, term, sign, symbol or design, or a
combination of them, which is intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of their competitors”
American Marketing Association
Steps in Branding Services
Role
Architecture
Positioning
Development
Organisation
Business System
• Role:- Understanding the customer needs and designing the message.
• Architecture:-Choosing the brand architecture Single brand:One message common for entire product
range eg:Sony,Gilette Tiered brand: -Sub-brands benefits from parent brand
image eg:Fanta,Sprite from Coke Multiple brand:-Various product lines under single brand
eg:Lux,Surf from Unilever• Positioning:-Communicating the value proposition• Development:-Using idea promotional strategies• Organisation:Execution of the strategy( Having a brand
management team)• Business system:Integrating different levels and systems
BRAND ARCHITECTURE
• House of Brands
• A Branded House
• Sub Brands (under a Master Brand)
• Endorsed Brands
Branded House vs. A House of Brands
Taj MalabarTaj KrishnaTaj Mahal PalaceTaj Bengal
Tata – The Branded House
ITC Welcome groupWelcome HotelsFortuneHotelsWelcome Heritage
ITC – A House of Brands
House of Brands
• House of Brands strategy – each independent stand-alone brand creates more market impact.
• Eg:ITC Welcome group,Welcome Hotels,Fortune Hotels,Welcome Heritage
• Allows firms to clearly position brands on their functional benefits.
Banyan Tree- A House of Brands
Angsana ResortsColours of AngsanaAngsana City ClubAngsana spa
Brand Portfolio of Banyan Tree
Banyan Tree Portfolio
Oberoi Spa Endorsed Brands
Portfolio
Angsana Portfolio(Shadow Endorsed)
Challenges in Services Branding
• Intangibility• Commoditization• Complexity• Inconsistency• Real-Time
Goods Services Services Branding Implications
Tangible Intangible • Service brands cannot be patented• Service brands cannot be inventoried• Service brands cannot be readily displayed or
communicated • Pricing service brands is difficult
Standardised Heterogeneous • Service brands face difficulties delivering on promises
• Service brand quality depends on many uncontrollable factors
Inseparability Simultaneous production
• Customers participate in the service brand transaction
• Employees may affect the service brand outcome• Customers may affect one another in the service
brand transaction• Satisfaction of service brand is influenced by
expected and perceived behaviour of service provider and customer
• Mass production of service brands is difficultNon-perishable Perishable • Service brands face challenges to build and sustain
image and reputation to retain customers• Fluctuating demand can cause problems for
branding services
Promotional Mix• Advertisements in high end travel magazines in key
markets• Public Relations• Global Marketing programs(Built relationships with travel
editors and writers)• Online Reservations• Creating brand ownership among employees• Participation of guests in environmental conseravation
programs.• Revitalizing local communities• Community outreach programs• Care for the environment
CONCLUSION
“Branding plays a special role in service companies because strong brands increase customers’ trust of the invisible purchase. Strong brands enable customers to better visualise and understand intangible products. They reduce customers’ perceived monetary, social, or safety in buying services, which are difficult to evaluate prior to purchase. Strong brands are the surrogates when the company offers no fabric to touch, no trousers to try on, no water melons or apples to scrutinise, no automobiles to test drive.”
Berry (2000, p. 128)
MARKETING MIX OF BANYAN TREE RESORT.
MARKETING MIX
PRODUCTPLACEPRICEPROMOTIONPROCESSPHYSICAL EVIDENCEPEOPLE
PRODUCTS
• DINING Dinner of the spirits ( created unique dining concept
of Thai ethnicity) Sense of place(enhance the culture and heritage of
destination) Sanya rak dinner cruise(experience the ultimate
romantic dinner by experiencing traditional music).
• SUITS Two bed room villa Pool villa Lagoon pool villa Deluxe villa Spa pool villa
• RESTAURENTS SPECIALITIES Saffron(renowned for its creative selection of
THAI cuisine)
Water count(enjoy ASIAN –AMERICAN buffet breakfast )
Tre (among the exclusive double pool villa area a
romantic restaurant with peaceful environment) Lobby bar
• THEMED PARTIES Banyan beach barbeque(night parties beneath the
stars) Thai baan nork dinner(full of thai foods and also the
demonstrations how to prepare the thai food) Black and gold dinner(sail into a night of style ans
treat yourself to an unforgotable memories by listening to our own music
• SPA Variety of aromatic oil massages.Constructed around large Granite boulders and lush
foilage to offer an outdoor spa experience in complete privacy.
Face and body treatment using Asian therapies.Products are indigenous natural products made from
local herbs.Relied mainly on human touch.
• GALleryItems made by local artisans and included traditionally woven handmade fabrics, garments, jewellery, spa accessory and oil massage.
PRICE Prices were based on the variety offered in products.Rack rates for Phuket started from US $500 and over
to US $2,500 again in Seychelles it ranged from US $1,200 to US $4,400.
PLACES THAILAND THAILAND
CHINA UAE
MOROCCO SEYCHELLES
GREECE JAPAN
AUSTRALIA KUWAIT
INDIA (BANGALORE) EGYPT
TAIWAN
INDONESIA
MALDIVES
MEXICO
PROMOTIONS Worlds premium resort.Worlds extensive spa facilities, elegant architecture
and luxurious abodes.Senses in the privacy of your very own sanctum.When it was launched marketing communication was
managed by an international ad agency.LogoTagline : “Sanctuary for the Senses”It promoted as providing romantic and intimate
“smallish” hotel experience rather than luxurious.
Best available ratesEarly bird advantageBest of Banyan TreeRomance in BangkokExecutive packageWedding dreams- EternityBintan at your doorstepsOnline exclusive package
PROCESS
Training the employees.Freedom to employees.Greeting guests.Remembering first names.Called back guests.
PEOPLE Receptionists Bell boys Laundry servicemen Butlers Room service Chauffeurs Managers Cleaners Assistants for guests Chefs Waiters etc
PHYSICAL EVIDENCEArchitectureFurnishingLandscapeVegetationLong tailed boatsGranite BouldersReading LightsLush Foliage
Air-conditioned busesCanteensTelevisionsTelephonesRefrigeratorsNontoxic and biodegradable toiletriesTraditional art and handicraft from local artists and
local craftsmen in the Banyan Tree Gallery.
Thank You