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