Their language, cuisine and habits vary, and as such, the industry needs to respond to the changing requirements of their visitors. The high spending Chinese market is also one the group must work on to capture; this will be no easy task as the brand conscious, tech oriented Chinese traveler who spends the bulk of his holiday budget on shopping will currently find little of interest locally. Specialized products like theme parks, soft adventure and sports tourism need to be developed including restaurants, high-end shopping malls and entertainment centers.
(Market Segmentation Study Guide, 2012) In short, STP Analysis helps to find a correct segment in which to market our product, identifying the proper target market and positioning the product to create maximum profits. (Higley, 2013) 2. 1 Segmentation Segmentation always comes first to the process of STP analysis; it’s a common technique that’s normally engaged by the companies that have large and varied marketplace in order to view different consumer needs and categories in the overall market.
In another word, it is also assisting to organize the total marketing into smaller groups of customers with shared traits or interests to enable efficiency and effective advertising. (Kokemuller, 2013) There are number of approaches as segmentation variables to segment the market and it should be measurable, sizeable and reachable, some of the examples are show as following: Geographic Segmentation This approach divides markets into different geographic units; these units included regions, countries, city or town size, population density and climate. Demographic Segmentation
This approach consists of dividing the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race and nationality. This is one of the most frequently employed segmentation variable because its ease of measurement and high availability. Psychographic Segmentation Nevertheless, people in the same demographic group often have very different lifestyles and personalities. This approach divides a market into different groups based on social class, lifestyle or personality characteristics. Behavioral Segmentation
This approach divides customers into groups based on the way they respond to, use or know of a product. It can groups consumers in terms of occasions, usage, loyalty and benefits sought. 2. 2 Target Audience After the market segmentation analysis and evaluation has been done, the firm will select one or more of the market segments to form part of their marketing program. The market segment that they select is then referred to as a target market. Therefore, a target market is simply one of the many market segments available to the company that the firm has deliberately selected for the purposes of their marketing programs.
Market Segmentation Study Guide, 2012) 2. 3 Positioning Positioning process consists of three stages. First of all, the marketers identify a set of possible competitive advantages on which the position can be based, then select the most appropriate competitive advantages and, at last, communicate and deliver the developed position to the target market (Kotler et al, 2003). A hotel can differentiate itself from others and gain competitive advantages, but offering unique product or the same product as competitors but with some peculiarity in price or other attributes.
Utrasun and Gutierrez (2005) consider, that establishing the hotel and defining the positioning strategy requires a decision, whether this hotel will conform the position of the competitor or will be differentiated. The researchers also note that combination of both strategies is possible. Locating the hotel close to competitors and positioning the product similar to others can become an advantage because of the economic and institutional environments. On the other hand, locating the new hotel far from its competitors in geographic and product aspects will help to escape the local competition and achieve the competitive advantage.
A new business should differ from its competitors on those dimensions in which localized competition would erode its rents and should conform to competitors on those dimensions that offer the potential to deliver agglomerative and legitimacy rewards” (Utrasun and Gutierrez, 2005:385). After selecting a target market, the organization needs to consider how it will construct its marketing program to achieve success. When you attempt to market your brand, you typically do so against one or more competitors vying for the same customers or offering similar solutions.
To succeed in gaining customers, creating sales and building loyalty, you must develop a distinctive positioning strategy. This is an outline of the way in which your product or service uniquely meets the needs or desires of the particular target market. In some cases, you can effectively position by promoting an obviously superior quality or benefit. Other times, offering a customized or unusual solution to a market with unmet needs works. Formulating your strategy helps guide the development and presentation of persuasive ad messages. (Kokemuller, 2013) CHAPTER 3 3.0 Company and Competitor Analysis A company and competitor analysis is one of the most critical parts of a company marketing plan. We can establish what makes our products or services unique through this evaluation and thus, we may find out what attributes we should play up in order to attract our targeted market. Furthermore, we should always clear that what our competitions’ strengths and weaknesses are, and one of the ways we can uncover this information is by conducting a competitor analysis. (Job, 2013) 3. 1 SWOT When it comes to tourism, the hotel industry is very important.
In fact, it is a supporting service that affects the presence of tourists in a certain place. How else can tourists stay in a place if there are no hotels? The SWOT analysis is vital to determine if the industry is helping in the achievement of tourism goals. By identifying the weaknesses, the hotels can better address potential problems in the future. SWOT stands for strength, weakness, opportunity, and threat. Therefore, in this competitor analysis, we would need to describe the products or services that we offer and how it compares to what the competition has to offer.
Doing a SWOT analysis of our main competitors can form part of this description, it is one of the useful techniques for understanding our Strengths and Weaknesses, and for identifying both the Opportunities open to us and the Threats we face. (Mind Tools, n. d. ) To be a leading Hotel Group, we always work with challenges. Customer service excellence is a key focus of our training regime. Other extensive programmes with focus on areas such as operational excellence, ethical conduct and continuous improvement programmes are carried out on a regular basis.
These deliver a two pronged advantage – high quality service for our guests and satisfying personal development and knowledge building for our staff. Further, training is also provided in language proficiency, first aid, leadership and softer skills such as grooming and personal hygiene. 3. 2 Competitive advantage A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices.
When a firm sustains profits that exceed the average for its industry, the firm is said to possess a competitive advantage over its rivals. The goal of much of business strategy is to achieve a sustainable competitive advantage. Michael Porter identified that there are two main types of competitive advantages: comparative advantage and differential advantage. (Porter, 1985) Comparative advantage, or cost advantage, is a firm’s ability to produce a good or service at a lower cost than its competitors, which gives the firm the ability sell its goods or services at a lower price than its competition or to generate a larger margin on sales. A differential advantage is created when a firm’s products or services differ from its competitors and are seen as better than a competitor’s products by customers. Porter suggested four “generic” business strategies that could be adopted in order to gain competitive advantage. The strategies relate to the extent to which the scope of a business’ activities are narrowing versus broad and the extent to which a business seeks to differentiate its products.
(Riley, 2012) The four strategies are summarized in the figure below: CHAPTER 4 4. 0 Strategy Visualise a getaway with a pristine white sandy beach accompanied by a refreshing sea breeze and accentuated by the rustle of waves just beneath your feet. Now imagine that scene to be just a mere an hour and a half’s leisurely drive away from the Kuala Lumpur city centre. Those words perfectly describe the upcoming Golden Palm Tree Sea Villas and Spa situated at the ambitious 5,000-acre mixed development paradise in Sepang Goldcoast.
Slated for an end October 2009 completion of which then minute touches will take place, the resort with 393 units of sea villas is expected to be operational as soon as April 2010. An unparalleled retreat, the new resort with villas over the sea is a first in Malaysia that takes the shape of a palm tree and the world’s first that is built on stilts. It stretches a lengthy 1. 5 kilometre out to the well-sheltered Straits of Malacca. Its location is nature’s refuge with two nearby mangrove sanctuaries as well as a planned educational orchard and lagoon.
The mangroves teem with a wide variety of flora and fauna, includingmigratory birds. It is even said that the daily sunset casts a relaxing atmosphere there. Developer Sepang Goldcoast Sdn Bhd, a joint venture of Permodalan Negeri Selangor Berhad (PNSB) and Sepang Bay Sdn Bhd, has even taken the extra precautionary step to safeguard the environmental quality of the area by working closely with the Malaysian Nature Society (MNS). Besides periodic third-party water analysis and immaculate care for waste management with German technology, the developer has taken themselves to task for the maintenance of the public beach near the resort.
Steven Yap, the head of sales and marketing of Sepang Goldcoast have said that the contractors of the development will ensure that debris from the site was frequently cleared so that pollution is kept to a minimum during constructions. Furthermore, the boulevard leading out to the clubhouse and sea villas of the resort is car-free. Buggy transport is prepared for resort guests and residents, as long as they can resist the urge to instead walk to soak up the enchanting ambience of the surrounding. 4. 1 Unique Selling Propositions
Comfortably situated in the new golden triangle of Sepang, this green home is just about 45 minutes away from Kuala Lumpur International Flight terminal (KLIA) and Affordable Provider Terminal (LCCT). Our Vacation home stretches along the beautiful borders of the impressive straits of Malacca, influencing breath taking sights of the ocean. Flaunting Polynesian-Maldivian styled villas, our 393 villas can be found in various assortment and dimensions to satisfy the tastes of customers. With a touch of tropical Malaysian decor, our spaces provide comfort and contemporary centers.
We feature comforts like fitness center, library, TV space, variety of eating venues and bars, dress shops, and a Day spa catered to indulge our customers. Golden Hand Tree Iconic Hotel & Health spa additionally rests in a perfect location that allows scuba diving, water sports, excursions, snorkeling and several other leisure tasks. Supplying a remarkable location and impeccable resort establishments which are unequalled. 4. 2 Competitor The competitor of Sepang Gold Coast Palm Tree is Sepang Gold Coast Morib.
Sepang Gold Palm Resort a 5 star award winning sea villas provding spacious and luxurious accommodation that offer a blend of modernity and tradition in its interior styles while Sepang Gold Coast Morib a 4-star resort stay away from the city overlooking idyllic beaches and lush fauna of Morib’s coast. Morib gold coast is a lower end apartment style accommodation located near Morib which is a water theme park sits within the resort’s main square unlike the unique features of Golden Palm Tree Iconic Resort and Spa is the layout resembles a palm tree.
There are diferent types of accommodation in the town. But the two main hotels, which offer hospitality services to business people, are Sepang Gold Coast Golden Palm Tree Resort and Sepang Gold Coast Morib. The segments served by these hotels are business and leisure travellers. All the hotels are strongly positioned at the midscale and upscale hospitality market and the brands of the hotels are known all over Europe and in other parts of the world. The hotels have positive images and are known for their high standard service and customer loyalty relationship.
The hotels provide the customers with standard set of services and facilities; they offer various customer loyalty programs and packages for different customer segments. From the review of the customers from the internet survey research who had experience of staying at these hotels or accommodating the guests of the company there, expressed an opinion, that the hotels are “too standard and inflexible” and people did not feel cosy there. This statement, first shows that people try to escape standardization and inflexibility in services and facilities.
Only Gold Coast Morib Hotel was mentioned to be “a cosy hotel with nonstandard rooms”, but the size and capacity of the hotel does not meet the demand. At the same time Golden Palm Resort was mentioned to be “flexible with meal timing”, which is very comfortable for business guests, as they can arrive late at night and leave early in the morning. Gold Coast Morib targeted the local visitors and the package are entrance tickets to the resort’s water theme parks featuring an amalgamation of slides, a few pools, and a water canal that snakes around the fixtures.
Majority of the guests would go together with family by bringing their kids because of the water park as kids used to play water. For the better sale, they deal with GROUPUN to make a attract package stay for holiday. As a competitors, we have our own outstanding attraction. The spectacular five star over water villa resort stretches out nearly one kilometre into the sea facing the sheltered waters of the straits of Malacca. The breathtaking beach frontage on Malaysia’s accessible western coastline, Golden Palm Tree is presented in semi-detached and detached design that blends with the environment.
This stretch on the easily accessible western coastline is still secluded and unknown to many – shores and waters are still untouched, which makes it a perfect ‘hide away’. Sepang’s coastal city development named ‘Sepang Gold Coast’ is destined to become one of South East Asia’s top tourist destinations. Most of the foreigner’s touched down place because of the good aspects. The design combines Polynesian-Maldivian styles with a touch of tropical Malaysian finishing – which blends to a harmonious and typical local identity. Unique all water villas certainly offers extreme indulgence for those who are looking for exclusivity and seclusion.
It’s an amazing place especially for honeymoon and relax. 4. 3 Environmental Factors As within any industry, the hospitality industry has a number of uncontrollable variables that affect those involved in management or ownership of hotels such as place, technological, political, regularly, social and etc. Knowing what these factors are is important for us working in this capacity because it provides us with an opportunity for contingency planning. Table: Touristic sector impacts on sustainability dimensions Sepang Gold Coast is definitely award winning development in Sepang.
This resort development was built to adapt to the cultures of a global village and aims to be an international tourism location. Offering magnificent living, this multi-billion ringgit integrated development consists of 2 areas on a 5000-acre piece of land in order to create Asia’s largest coastal paradise. The 2 different areas are the Gold Palm Tree Water Villas and the Tropical Cluster Village. Taking a leaf off of Dubai’s famous palm tree island residential area for the rich and famous, the Gold Palm Tree Water Villas area is a residential retreat for those seeking an idyllic retreat from the hustle and bustle of city life.
As mentioned above, the other development here is the Tropical Cluster Villas which is situated at the heart of Sepang Walk. Combining tropical Malaysian and modern design, these villas offer a casual yet luxurious lifestyle. The village comprises of 1 block of low rise ‘villas’. These apartments range from a 1 bedroom suite that is 500 sf big to 3-bedroom 2,050 sqf penthouses complete with a private jacuzzi and pool. There is also a sky gym and sky lobby, glass lifts, loi ponds attached to the resort’s pools, landscaped gardens, and is also fully furnished.
It has the longest resort pool in Malaysia. Other facilities include restaurants, fitness spa, multi-purpose hall or conference room, cycling track, and a jogging track. Prices range from RM593,400 to RM1,151,150. This area is about 5 minutes walk to the Golden Palm Tree Water Villas. Sepang Gold Coast, the coming international beach and eco-tourism getaway along with the only complete beachfront integrated development in Malaysia. Basically 25 mins drive by Kuala Lumpur International Airports (KLIA). The development of 22km long sandy seaside is sure to set a place on the map of world-wide tourism.
Amazingly placed amid the tropical beachfront, Sea-Tropics Village, a guarantted investment in a spectacular site developed to a higher standard. Sea-Tropics Village as the second phase offers 13 clusters and a tower block of 289 luxury tropical homes of true distinction. All apartments are tropical-themed, entirely furnished apartment and penthouse units designed around an 800ft swimming pool and will enjoy direct access to the 800ft swimming pool which is Malaysia’s longest resort pool. The Sea Tropics Cluster Village is tastefully designed with a contemporary tropical feel to enhance the ambience. The studio apartments offer built-up areas of 516 sq ft, 581 sq ft and 873 sq ft. The two-bedroom apartments (with built-up areas of 985 sq ft and 1001 sq ft) come with Jacuzzis, while the penthouse units (offering a lavish 2,050 sq ft) lead directly to the spa pool. Modern facilities at the Sea Tropics Cluster Village include a gym, restaurants and a business centre, as well as function rooms accommodating up to 400 people. Management also intends to offer yoga and tai chi classes and fishing expeditions to enhance the holistic lifestyle here.
With its abundant natural assets including a 22km sandy beach and 17km riverine mangrove sanctuary, Sepang Goldcoast was conceptualised as an integrated holiday destination catering to international holiday-makers and travellers. Its offerings include hotels, a gastronomic paradise, spas, township, Malay kampong homesteads, aquarium, horseback riding, kayaking and more. Ideal Location – The great location of Sepang Gold Coast means speedy access to the Kuala Lumpur International Airport (30 minutes away), the Sepang F1 Circuit (30 minutes), Putrajaya and Cyberjaya (45 minutes).
The interconnectivity of the highways and rails render even KLCC a mere 75 minutes away. Leaving the World behind Villas at the five-star Golden Palm Tree Sea Villas and Spa exhibit hints of Polynesian and Maldivian architecture, while its interiors are lined with modern Malaysian flavours. They will all come fittingly furnished. Besides the promise of breathtaking views and great vibes, serving guests and residents of the villas is a clubhouse with comprehensive facilities for everyone. Recreational facilities include convention hall, gym and sports centre,educational centre and library.
For business travellers, there will be meeting rooms, a one thousand capacityconvention hall and business centre. When the resort is open, there will be plenty of leisure activities like archery, cycling, water sports and many more. In an endeavour to deliver top-notch experiences to visitors, their well-being and needs will be attended to by specially-trained hospitality officers. Both tourists and locals can delight in a gastronomic dining experience not only at the resort’s two restaurants, but also at food kiosks nearby. Savoury local cuisine like steamboat, ikan bakar, satay and plenty more are available.
Come June 2010, there is a plan to build a chapel by the beach catering to weddings. According to Keith Chan, director of sales and marketing, Golden Palm Tree Resort & Spa, there have been numerous enquiries from locals hoping to hold their weddings at the resort – and it is not even open yet. Besides weddings, there were also interests from companies wanting to hold their annual getaways, corporate meetings and such. Advance booking for such activities are already open. It is expected that the villas will go for RM450++ per night for guests.
The Golden Palm Tree Sea Villas and Spa will be managed by Hong Kong-based hotelier Swiss-Belhotel InternationaL. Idyllic getaway for everyone Although the Golden Palm Tree Sea Villas and Spa is conceptualised to be a tourist destination, the awe-inspiring development caters to both holidaymakers as well as astute property investors. There is an eight per cent guaranteed return for the first two years for investors of the villas. Steven Yap says that the leaseback scheme will be very attractive as it is a triple nett programme. This means that it even covers investment pre-brand, insurance, maintenance and sinking fund.
From the third year onwards, the revenue will have the resort expenses deducted first before distributing the investment returns. Doing so eliminates unnecessary surprises that other in-the-market rental return practices may have. What’s common is that investors of those programmes will get their returns along with possible maintenance and repair bills i. e. when their furniture or air-conditioning breaks down. With investors from all over the world, it is not practical to shut down specific villas while waiting for repairs. Therefore, what the Golden Palm Tree Sea Villas & Spa offers to all investors is a hassle-free plan for maintenance.
This way, should something in a villa breaks down and needs replacement or repairs, it gets paid by all the investors instead. For the first year of operation, Keith Chan has projected a 70 per cent occupancy for the resort. Investors have four villa designs ranging from studio to three-bedroom, two-bathroom units. The Travellers villa features a built-up area of 570 sq ft and are priced from RM571,815 while the Canary Palm villa that is equipped with two bedrooms features a built-up area of 883 sq ft and are priced from RM977,100.
Those looking for something larger can consider the 1,345 sq ft 2+1 bedroom Ivory Palm villa or the 2,422 sq ft Royale Palm villa. They are priced from RM1. 43 million and RM2. 45 million respectively. The Royale Palm villas are located at the end of every ‘branch’ and offers direct access to the sea World Wide appeal Heavily promoted overseas as a new tourism destination in Malaysia, the Golden Palm Tree Sea Villas & Spa have since attracted investors from over 20 countries. Buyers of the resort homes are from the United Kingdom, Dubai, Korea, United States, France, Hong Kong, China and many more.
Local investors have also jumped into this investment opportunity. The developer, Sepang Goldcoast, have also stated their intention to register the Golden Palm Tree Sea Villas & Spa into the Malaysian Book of Records for their uniqueness and architectural feat. Effortless accessibility The Golden Palm Tree Sea Villas and Spa is situated in Sepang. It is just 30 minutes away from the Kuala Lumpur International Airport as well as the Sepang F1 Circuit. Meanwhile, the country’s administration hub of Putrajaya and technology hub of Cyberjaya is only 45 minutes out. Top of Form
Bottom of Form 4. 4 Recommended Strategy If there’s any place where customers are likely to be paying attention to the type of service they receive, it’s within the hospitality industry. From restaurants to hotels and everything in between, our job as a hospitality service provider is to maintain customer happiness and satisfaction. Keep our customers at the forefront of our operational plans to hold our hospitality business afloat. Technology Technology continues to develop unimpeded. The hospitality industry, like many others, is affected by technological changes.
As new technologies are made available, companies within the industry are forced to adapt to the changes or get left by the wayside. For example, changes in computer hardware and software options may make it necessary for a large national hotel chain to replace its entire computer infrastructure on a periodic basis. Customer Expectations Gone are the days when customers were happy just receiving “please” and “thank you” or getting service with a smile. Although those go into the recipe for proper etiquette, it’s just not enough.
Satisfied customers are looking for a memorable experience and dynamic service where it counts. From receiving quick service to bending the standard practices — such as extending a guest check-out in a hotel or customizing a menu item in a restaurant — customers want to feel as if their business is appreciated. To be on the receiving end of customers’ satisfactory ratings in surveys and among their network, anticipate their needs and be able to have our staff deliver accordingly. Deliver On Promise One key factor in keeping our guests engaged and coming back is to deliver as we promise.
From being consistent to making sure they get the same awesome service to doing what we say we will do, don’t drop the ball when it comes to what we say we’ll offer. Customers are more likely to get frustrated when we reel them in on a big promise such as special services or premium products and it’s not the case. Avoid saying that we are luxury if our services are mediocre or in developing gimmicks that excite customers only to disappoint them throughout the process of working with us. Customer Loyalty Happy customers are loyal customers. Not only is it important for us to provide stellar service, but awesome products as well.
Make it a point to be on the fast track for keeping up with trends that our customers may follow such as building personal assistance services for travelling customers or making special concessions for avid repeat consumers. Be sure we have items on hand so when our customer needs us and our products, everything’s available. A customer who has to continuously wait for us to do our part may grow tired, no matter how loyal, and venture off to our competition. Keep customers loyal by focusing on them at all times. Let Them Vent Give our customers an outlet for telling us about poor experiences.
When we have customers who have had a negative experience, make it easy and clear for them to not only tell us about it but get it off their chest to us and not someone else. Don’t patronize customers when they are disgruntled by shooing them off with little to no plans for recourse. Make it a point to correct issues that went wrong and look into those that could stand some improvement. Capture communication methods for keeping in contact with our customers so that we can alert them when changes and improvements occur. CHAPTER 5 5. 0 Customer Analysis
A customer analysis is a process of determining customer segmentation, purchasing behaviour, value and motivation so as to better target marketing and also increase sales. This is usually done through customer satisfaction measurement, customer focus groups, field testing among others. Target markets are derived from segments, but as distinct from segmentation, focus on more narrow groups of customers, on specifically one part of the market (Lewis and Chambers, 1989). An illustrative example here can be the business traveller segment, which is quite broad, as it may include the people from different spheres of business: salespeople, account travellers, self-employed – all these people have different interests and thus different expectations from services in hotels, that’s why should be divided into different sub segments, which are target markets. Illustrates the combination of different categories of segmentation: segmentation into business and leisure traveller (trip descriptors), and segmentation from benefit perspective (tourist descriptors), where the motives for different hotel market segments are depicted. 5. 1 Who are the customer Market Segment: Business Traveler
Defining a market segment is a prerequisite of success as the company recognizes the needs and compatible target markets. This helps to produce a proper service, at a proper time and for the people who need it. Business travel market segment is represented by the business travellers. Business travellers are “the people travelling for purposes which are related to their work” (Davidson in: Swarbrooke and Horner, 2002:3). As Page (2007) notes, business clients seek for time-savings, very demanding concerning services, facilities and time, but less price sensitive than leisure travellers.