Professional Documents
Culture Documents
Contents
Executive summary ....................................................................................................................................... 3
Introduction ................................................................................................................................................... 4
Situational Analysis ...................................................................................................................................... 5
Internal Analysis ....................................................................................................................................... 5
SWOT Analysis ........................................................................................................................................ 5
Task Environment ......................................................................................................................................... 7
Micro environment elements .................................................................................................................... 9
External Environment analysis ............................................................................................................... 10
Marketing Objectives of Banana island resort ........................................................................................ 11
Marketing strategies ................................................................................................................................ 11
Market Segment .......................................................................................................................................... 12
Target Market...................................................................................................................................... 13
Position ............................................................................................................................................... 13
Marketing mix ......................................................................................................................................... 13
The Product ................................................................................................................................................. 14
Price ........................................................................................................................................................ 15
Place ........................................................................................................................................................ 15
Promotion................................................................................................................................................ 16
People...................................................................................................................................................... 16
Physical evidence .................................................................................................................................... 17
Implementation ....................................................................................................................................... 17
Evaluation and Control ........................................................................................................................... 18
Reference ................................................................................................................................................ 19
Annexures ............................................................................................................................................... 20
2
Executive summary
This report consist of the current situation analysis of the Banana Island Resort which is newly
started its operation in Arugam bay , the report analyzed the market opportunities and how to
capitalize those opportunities in average cost effective way, since its new like any other
business it hs to face the competition from rivalry from its own industry.
The report also give reference to the fact that capital gearing and payback time is high due to the
heavy capital investment and the larger amount of working capital is to keep the human resource
intact.
The resort is suggesting to achieve the 75% of consistence of occupancy throughout the year to
achieve the set objectives so that would please the top management and their sense of security of
own investment.
This report has outline the business environment in such way to understand the task and macro
environment influence to the business and where the Porters five force analysis has explain the
internal environment facts that should take an account to carry forwards its operations.
As suggested by the report the pricing strategy would be the ‘penetrating strategy to capture the
market in short time to increase the awareness about the business establishment that would
eventually helps to create the positive brand for the business.
3
Introduction
Banana Island Report is the newly established and operating beach resort, with 20 rooms and 5
independent villas, total consist of 55 employees. The Banana Island report is located in Arugam
bay which is from 320 Kms from Colombo east. The Report is catering to the local and foreign
tourist all around the year.
Tourism in Arugam Bay is dominated by surf tourism, thanks to several quality breaks in the
area, however tourists are also attracted by the local beaches, lagoons, historic temples and the
nearby Kumana National Park.
This report analysis the futuristic opportunities for the resort and the growth according to the
environment opportunities such as expansion of tourism in the country and due to the massive
direct foreign interments in near future.
Tourism in Sri Lanka has surged to a new limit of over 2 million arrivals in 2016, which is an
increase of 14.0 per cent over last year’s arrivals. (Source: Annual Statistical report of Sri Lanka
tourism 2016) for the forecast of next 3 years tourist arrives projected at annexure 01
4
Situational Analysis
Internal Analysis
Banana Island resort is an architectural design beach resort started by an entrepreneur Geeth
Dissanayaka, prior to this Geeth is a real estate developer. The resort mainly catered to surfer
since lot of foreign and local surfer is the main attraction of Arugam bay.
SWOT Analysis
The SWOT analysis is where the resort is looking in to the current scenarios of the business and
the future perspective that could help to grow the business and sustain. Analysis take an account
of Banana Island Resort strength and weakness and to analysis the external threats and
opportunities that would help BI Resort to identify the key market risk, attractiveness and
competitiveness.
Strenght Weakness
Opportunities Threats
Strengths
• the locations the most prominent tourist attraction places in the country
5
• 150 guest in house dining facilities
Weakness
• relatively new
Opportunities
Threats
• New government legislation such as banning on alcohol purchase by women and women
working in bars.
6
With consideration of above factors, it shows the tourism market is highly competitive and main
attributes of the market is
Location
Ambiance
Price
Service quality
Banana island is has the strength of the location since its located in heart of the tourist attraction
area and their human resource is definite added advantage. The main weakness is to explore is
that the management have the challenge of taking up this new venture since its new industry to
the management. Opportunities are there to grab, the increase number of tourism in the country
from international and domestic. Since the current increase in consumer income also a plus point
for more leisure activities in the country.
Task Environment
Task environment is a essential to identify for the business any change of variable to task
environment will directly affect the business. To elaborate task environment through Porter’s
five force analysis. This analysis will explore more strategic analysis and choices for the
company
bargaining
power of
the
customer
barging
Rivalry
threat of power of
among the
substitute the
industry
suppliers
barriers to
entry
7
Barriers to entry – high
The industry need a heavily investment on real-estate and building cost even need to have a
substantial amount of working capital to run the business for the survival for the couple of years.
With those barriers to entry to the industry is high.
As substitute the report mainly room renting or small guest houses run by local residence. Since
the country is not exposing to couch surfing or Air Bnb still the threat of substitute is moderate
Since the resort carries the competitive pricing and the seasonal pricing involves it has very
moderate bargaining power of the customers with the targeted segment
The supplier’s plays very major role in the hospitality industry, even from the simple travel agent
to the multinational chains need to have a good relationship with the suppliers to keep the
momentum going.
The geographic area of the Arugambay has newly developed hotels that cater for the specific
segment and for all clusters of segment since rivalry is moderate due to the standard pricing to
keep the competitive edge sharp.
8
Micro environment elements
Competitor
Consumers
The domestic customer has the advantage of travelling throughout the year whereas the
international tourist will visitation would be mostly the seasonal time, such as surfing months
from June to December and beach festival season. Mostly the consumers are categorize as below
Surfers
Leisure seekers
Family vacations
Beach and sand tourist
Backpackers
9
External Environment analysis
10
Public health inspectors
law prohibiting the sale of any type of alcohol to women
The key marketing objectives are formed with SMART objectives format
Marketing strategies
(2) Select which ones we are best off trying to serve and, finally,
(3) Implement our segmentation by optimizing services for that segment and communicating.
11
Figure - Segmentation , Targeting and positioning
Market Segment
The market segment can be broken down to four quadrants which are,
Demographic - Under the demographic segment we will be considering the income level,
lifestyle and occupation and association
Geographic - There isn't a significant relevance geographically for the penetration of this
product. Developing new markets all island and globally.
Psychographic - The target segment would be the users who are looking for leisure, thrill seekers
or sportiness, adventurous.
Behavioral - This segment is mainly focused on the price sensitivity and the service quality from
the room services to ambiance, food and friendliness of the staff.
12
Target Market
Position
The targeted market position for the product will be as an affordable, high quality services to
consumers ‘A trip to remember”
Unique selling proposition will be the total experience of leisure and adventure. Combine
promotion with all major credit cards
The tag line of Banana island Resort “recreation of your vacation” this statement brings strong
message to the mass, which will initially point the service and quality of life.
Marketing mix
The marketing mix refers to the set of actions, or tactics, that a company uses to promote its
brand or product in the market. Kotller 2001
13
The Product
What we offer:
The banana island resort has 20 rooms – Air conditioned and hot and cold water supply
with TV and free wifi enable. Locker facilities for the valuables
5 luxury villas facing own private beach
Larger swimming pool
150 guest in house dining area.
24 hours front desk operations
Modern sustainable architecture
Indoor sports such a pool and snooker , table tennis
Outdoor activities surf equipment and boat riding , fishing, deep water diving
Friendly and train staff
Around the clock security
On call doctor services
14
Price
Price is the most vital factor to the banana Island Resort the chosen price element will be “price
penetration strategy”. BIR hoping to penetrate the resort market lowing prices with compare to
the its competitors to attract customers in 1st year of operation.
Name Price
Kottukall beach by Jet wings 20000
Coco bay resort 15000
Beach and sand hotel 10000
Banana island resort 8000
This price strategy will allow the customers to rethink about their options especially with
comparison of the prices with other competitor’s offers.
Place
Place as tool for marketing mix will consider the distribution or convinces to reach the product to
the end user.
Selective distribution system: through travel web sites and credit card suppliers and local and
international tour agents.
Websites
Banana Island
Resort Credit cards End user
Agents
15
Promotion
Banana Resort Island is the new kid in the market the AIDA model will be use to carry out initial
promotions
Attention
Interest
Desire
Action
The methods are selected as informative and persuasive advertising where Banana Island resort
still in the growth stage of the product life cycle. Attention of the target market is very important
to inform about the product present in the market.
Selected methods are below the line, above the line and viral promotion strategies.
Advertise on leisure and travel magazines
Air plane onboard magazines
Own web site
Google adds
Social media
Joint promotion with credit cards
Event promotions as free gifts.
The advertising budged determines by the zero budgeting methods since it’s at introductory level
of the product life cycle
People
Well trained friendly staff
Use of language procession
Maintaining of standards
16
Physical evidence
Cleanness
Use of sustainable materials to recreations
Use of modern furniture
Implementation
The price strategy as penetrating strategy will be the ideal as local tourist attraction
Secondly the promotion strategy will focus on establishing the brand awareness as well as
joint promotions with all major credit cards.
To develop a strong relationship with the suppliers and local communities much advisable
The staff motivation is must since resort brand is depends on the service that customer
receives
17
Evaluation and Control
This marketing plan is to observance and implement the above said objectives align with the
suggested marketing strategies to gain the favourable brand awareness of the establishment as
well as the said sales objectives to be achieved.
The corporate budget will allocated the funds for the marketing budget where, budgetary
measurement actions will take in Couse to determine the deviations. maintaining the
working capital is crucial at this stage where 75% occupancy should be maintained
monthly basis
Company in-house standards are been made to meet the expectation of the customers and
all other stakeholders
Moral suasion chase the quality of human capital by consistence training and
development programmes to conduct and meet the said standards and keep the code of
ethics intact
As any other business Banana island resort also need to capitalized future brand equity,
so the especial reference to customer satisfaction and maintaining fruitful relationship
with them
Meeting and adjusting monthly breakeven is mandatory where that would give the
management a sense of direction
18
Reference
19
Annexures
01
20