Surname 1
Name
Instructor
Course
Date
Banyan Tree Hotels & Resorts
Q1 .The main factors behind the success of Banyan Tree are several which were
attributed by the knowledge of Ho and Chang experiences on resorts that they had visited during
their numerous travel. The main factor is the positioning of this resort. They made an incredible
discovery that there was market niche that was not exploited by the mega luxurious resorts such
as Hilton and Shangri-La and this become their focal point in establishing Banyan Tree. The
market therefore needed a private and intimate accommodation which are differentiated from the
traditional expectations of glitzy chain hotels. Another factor is how their branding and
positioning strategy. Banyan Tree built their resorts and hotels using the local-inspired
architecture design to supplement the surrounding of the environment. The resorts and hotels
were design to mimic their location which brought the beauty of nature to the guests just at their
door step. It was positioned as a romantic and intimate escapade which drew guests from the
world given that the couples who visited their resorts and hotels will always have a romantic
holiday to remember. The product and services design and delivery is another factor that led their
success. For example the furnishing of the Banyan Tree villas were deliberately made to bring
out the anomaly of the local appearance and luxurious feel. Additionally, spa pavilions in
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Seychelles was built around the granite boulders and lush foliage that gave the outdoor
experience but still privacy was upheld. Employees were given the autonomy to vary services
delivery in relation to local culture and practices as long as they were consistent with the
company’s branding of providing intimacy and romantic services. Another factor that led to
success of Banyan Tree was through helping the surrounding community. For example, Banyan
Tree Galley were constructed from every company’s outlet which worked closely with
community cooperatives and nonprofit crafts to support local artisans by acting as an advertising
agent for their products. It also offered training to this local artisans about crafts and a write-up
followed to ascertain the credibility of those artisans. Since Banyan Tree was the first company
to venture into this kind of business it had the first mover advantage over its competitors and
hence made it enjoy the largest market shares.
Q2. For a business to be successive in the world today, brand positioning should be
timely and an in-depth research should be carried to ensure that it will be profitable in the long
run. Banyan Tree positioning was timely as it was able to identify a market niche that was not
exploited by the other companies. Its agenda to offer a romantic and intimacy experience was
appropriate as it brought a new feeling or rather an adventure to those couples who wanted to
have a romantic holiday to remember. It also has a very effective internal and external marketing
strategy. The idea of involving local communities through Banyan Tree Gallery was used as a
marketing strategy that lowered the cost of advertising while the outreach was good. Banyan
Tree communication strategies were excellent. Inviting travel editors and writers made it easy for
the company to create public awareness of its existence as there was a high possibility they will
draft an article about their experience in the resort. It also advertised only on high-end travel
magazines in specific markets.
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Banyan Tree can maintain unique sustainable positioning approach because of its locations
specific service and also the natural locations of these resorts which is distinct from other
competitors all over the world. Also the fact that it focuses on customer experience on what they
will remember after visiting their resorts it makes them unique. Hospitality, community
involvement and environment conservation is also its strong points which will be difficult for a
competitor to exploit.
Q3. The main objective of the Banyan Tree and Angsana was to provide a romantic travel
experience and embracing what nature has to give. This objective was realized by all other
product portfolios that were run under Banyan Tree Hotels and Resorts brand. Banyan Tree
mainly targeted the high end luxury resort market while Angsana was created as a contemporary
brand to target a wider market. The museum shops also blends well with the brand portfolio of
this company because it conserved the diverse and rich culture of Asian people which a
layperson could access with ease. Banyan Tree Galleries were built to facilitate the hotels to
retail their products while Banyan Tree Spa Galleries supported the spa outlets by selling spa-
focused products such as body care products, essential oils, candles among others.
Recommendation to Banyan Tree
1. Treating each brand independently. This will enable the company to be able to evaluate
the performance of each brand individually and its financial requirement. However, the
core objective of the company should still remain in these brands. For example, it should
market Angsana separately from the original family brand.
2. Explore new markets. Banyan Tree has the potential to expand its market to other parts of
the world especially in Africa where there is diverse culture heritage. It should use its
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guest list to determine where the majority of its customers comes from as that will
indicate which countries have a ready market for its product.
Q4. Corporate social responsibility is important to Banyan Tree because it improves its
public image to the people, creates a serene workplace for its employees, the customers are
satisfied and lower cost are experienced in running the business especially in advertisement cost.
It helps in building brand awareness especially when involving community in running of the
company. The building materials used to construct Banyan spa are indigenous and purchased
from local dealers which creates a reckoning that the company exists. It also establishes brand
credibility in the sense that Banyan Tree protects and saves the environment as it minimizes
cutting of trees when constructing new premises but instead uses them to design the appearance
and create natural atmosphere. The community will therefore have a positive attitude towards the
company. Banyan Tree strategy is to evoke a sense of romance adventure and the beauty of the
world which is facilitated by its effort no conserve the environment.
Q5. The cost of conducting business in America and Europe is very high which might
become a challenge to Banyan Tree which provides its products and services based on traditional
cultures. Also there is a problem on how the company will compete effectively with the big
hotels in America and Europe. In Middle East it is a new challenge given the marketing quote of
Banyan is “a senses of place” and the location of the country which is a desert. Another problem
is the fact that government policies will also differ with those of Asia.
To curb the problem of competition, Banyan should stick to its brand equity and CSR which will
be used to win the minds of customers by showing the quality of their products. They should also
ensure the Banyan marketing tagline is their main focus in providing services and hence devise
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different ways to produce their products. For example, it can launch a new brand to complement
the temperate settings of Middle East.
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