Contents

Introduction...........................................................................................................................................2

Concepts Discussed...............................................................................................................................3

Issues of the case...................................................................................................................................3

Answers to Study Questions..................................................................................................................3

Conclusion.............................................................................................................................................8
 Introduction
The hospitality sector has been one of the great contributors to the world economy, especially
the hotel and accommodation industry which has been on an boom throughout the last
decade mainly as a result of superior marketing strategies, better skilled workforce, increased
emphasis on presentation skills portrayed by the service providers in the industry,
customizable booking option has catalysed the increase in the tourism trend all around the
globe.

The Banyan Holdings limited is a brain child of Mr. Ho Kwon Ping and Ms Claire Ching
who established a single Hotel in Thailand observing the growing demand of tourists to calm
themselves and chill in an environmentally friendly environment which is primarily focused
on customers upholding the values of different cultures in a soothing green conscious habitat.
The Hotels have now became popular all over the world with branches in Seychelles and
Europe. With rising belief towards transition into a green economy, the world now is
attracted to businesses or service providers who are conscious of their carbon footprints and
use environmental friendly practices.

Banyan Tree Hotels and Resorts have been successful in incorporating these values in all
their services and merchandising. The hotel chain has been able to substantially gain
popularity so as to become a part of the lists of leading hotels preferred by tourists from
distant countries travelling to Asia, Even in the local market, tourists longing to experience an
aesthetic, green, romantic and serene tourist destination. It is one of the very few luxurious
hotels which are also comparatively light on the pocket with a strong brand name and high
customer loyalty.
 Concepts Discussed-
Importance of Effective Segmentation, Brand Positioning, Customization of services to cater
individual needs, Brand identity and Internal Marketing.

Issues of the case-

Expansionary Strategies, Customer Loyalty and Retention, Personalized Service Delivery,
Positive Growth in the dynamic business environment, Strategies to achieve a cutting edge
over rising competitors

Answers to Study Questions

Q1- What are the main factors that contributed to Banyan Tree’s success?

Answer-1 The following factors contributed to the success of Banyan Tree Hotels and
Resorts-

1. Affordable Luxurious Hospitality- Prior to the establishment of the Banyan Tree,

there existed a hole in the Hotel industry between the big chain global hotels. The
enormous contrast in the prices of accommodation made it easier for the company to
gain customers in the market. Banyan Tree offered reasonable individual villas,
customized packages for special occasions as required by the customers
2. Effective Targeting and Brand Positioning- The owners rightly targeted the
international and domestic tourists with focus not on luxurious accommodation but on
romantic experiences that was valued by its clients. This anchored well with the need
for international tourists seeking such services and helped the brand to position itself
as a serene yet affordable accommodation service provider .
3. Environmental Concern- Care for the social and natural environments helped the
brand to attract people from diverse backgrounds who had similar beliefs and praise
the aesthetics showcased by Banyan Tree Hotels and Resorts. The brand made sure to
make maximum efforts to preserve the land with or around them which served as an
attraction.
4. Superior Service Delivery- The services tailored by employees were dynamic and
according to the natives’ culture and traditions complying with the brand that focused
on relations and closeness.
5. Special Initiatives- The Hotel initiated “The Green Imperative Fund” that supported
community-based programs like building schools, promoting crafts of the locals and
restoring devastated coral reefs. The fund also set up a marine conservation office to
oversee current and potential areas susceptible to degradation. It is an eco-friendly
resort which uses recycled material everywhere is possible. The program had planted
 358,885 trees by end-2014 which clearly shows that they are nature lovers and want
to take up steps towards environmental conservation. This program and other similar
initiatives created a lot of brand awareness and served as a major source of attraction.
6. Embracing the Indigenous Culture- The company tailored local experiences with local
people for customers. This provided an exposure to the native culture and traditions
by employing the locals, hence providing job opportunity for them. For example, the
Banyan Tree Spa offered unique aromatic oils for massages which were crafted by the
locals, wedding packages which included the very unique under-water wedding
ceremony and a Thai boat dinner with live music.

Q2- Evaluate Banyan Tree’s brand positioning and communications strategies. Can Banyan
Tree maintain its unique positioning in an increasingly overcrowded resorts market?

The Banyan Tree has been successful in positioning itself as of the most unique luxurious
affordable chain of hotels and resorts and has a prime focus on providing an exuberating
experience in comparison to its other competitors which are expensive. The Banyan Tree
aims at preserving the nature and exposes the customers to the silent environment. Tourists
these days, are looking for an exact experience when they travel because they need a break
from the busy and noisy cities that they live in. The resort supports usage of recycled
material. Toiletries provided in the resort are eco-friendly and does not involve toxic
chemicals and they are available in ceramic containers instead of plastic. The merchandise
found in the gallery were made from eco-friendly recycled materials like elephant dung paper
stationery and photo frames made from discarded telephone directories – thus promoting
sustainability. The Brand Communication was made towards young millennial and
established, wealthy couples who wanted not only an enjoyable vacation; but also a
productive one.

Q3- Discuss whether the brand portfolio of Banyan Tree, Angsana, and Cassia, as well as the
product portfolio of beach resorts, services residences, city hotels, spas, galleries, and
museum shops fit as a family. What are your recommendations to Banyan Tree for managing
these brands and products in future?

The primary purpose of Banyan Tree is to the savor the experience of sentiment of its
customers when voyaging. In order to convey their objectives and build a strong public
image, it used various different Marketing programs and advertising campaigns. Worldwide,
"Banyan Tree became a member of Small Luxury Hotels" and one of the premier hotels in
the world.

Angsana was introduced after the lavish resorts were stable. This brand was more reasonably
priced and fashionable than the Banyan Tree. It ran as a stand-alone spa business in other
hotels. The colours of Angsana, a merchandise line of Angsana, were to enter the tourism
trade. The Angsana Spa was so well received that the company quickly set up five other such
spas in various hotels in Thailand. Banyan Tree Spa Galleries support the spa outlets, selling
more spa-focused merchandise such as signature aromatherapy amenities, essential oils,
candles, and body care products.

Cassia was a new approach to hospitality by Banyan Tree, it bridged the unseen gap between
a hotel and an apartment by providing a wonderful blend between residing and holidaying. It
provides a completely customizable experience to its customers. A truly connected
environment and clever design provides the space and dynamic atmosphere to enjoy living
while away from home. It is one of the most suitable residence option for young families,
couples, and group of friends.

Positioning was upheld as the most important marketing activity by Banyan Tree, as it made
its best attempt of making mindfulness about their image in ways that placed it apart from the
competitors. A durable brand implies a superior picture quality for a firm in this way keeping
the contenders under control. Its sustainability, importance to the market, and suitability
should be guaranteed. Brand positioning should realize support and financial goals for the
company. Brand identity plays a fundamental part in advertising the product of a company. It
reflects what the crowd effectively recognizes in view of the logo, colour and images. It
makes an clear distinction in the minds of the crowd from different contenders. It gives a full
impression of functions of a firm.

And as far as the question whether they all these units can work as a family is concerned, the
entire brand is centered towards youngsters, adventurous, married couples, these three brand
portfolios are supplementary and together form a logical unit where each works indispensably
but with the same purpose and values.

Some Suggestions are as follows-

 Citing a rise in competition, the brand must consider the option of platform
benchmarking which will have a long term benefit to all the brands in the umbrella.
  The company can consider the opportunity to combine the services and merchandises
offered by various brands under Banyan Tree and provide a bundle or package of
services as all its customers are middle-high end income population as it will help
create a new set of demand for all the products and services offered by different
brands under the umbrella.
 The brand can also consider diversification into allied industries like food and
beverages or the real estate as it will provide more security to the brand and widen the
scope of the business.

Q4- What effect does the practice of corporate social responsibility have on brand equity?

The Effect of Corporate Social Responsibility on Brand Equity can be understood as follows-

 CSR is considered as the biggest driver of mouth – to –mouth publicity as the

consumers are able to connect with the values and vision of the organisation building
an aspiration in their minds. CSR also inspires the customers to adapt more Socially
Responsible practices themselves. It serves as a step towards a better society which is
also appreciated and followed by others in the society.
 It polishes the public image of the brand especially acting as an attractive force to
some special stakeholders like the local population in the form of customers, NGOs,
Government who offer monetary or morale support above acceptance to the brand.
 With increasing influence of media in the minds of the public, CSR helps to portray a
positive media image and enhances the overall public relations that reassures
shareholders and market investors. The value attached to the firm in terms of
Goodwill is also enhanced.
 CSR is also a major determinant which establishes and organisation as unique and
develop the image of a trend-setter in the market. This removes many obstacles such
as exit from the Industry, lack of investments and builds a strong connection with the
respective regulatory or community bodies like the chamber of commerce.
 Effective and consistent CSR initiatives helps in building a strong brand loyalty so
and catalyze customer retention. It establishes a connect between the beliefs and
values upheld by the consumers and the positive impact aimed by the company
through CSR and strengthens the bond between the brand and its customers.
Q5- What potential problems do you foresee in bringing Banyan Tree to the Americas,
Europe and the Middle East. How could Banyan Tree address those issues?

Answer 5- The Potential problems that can arise while planning for extension are as follows-

 Fierce Competition- The pre-existing payers in the market have more knowledge
about the population and it might become a problem initially to understand the needs
and generate the ability to satisfy them better than their competitors.
 Increased Cost- The process of expansion involves high costs which sometimes act as
a biggest deterrent of expansion by most of the companies. These can be related to
infrastructure investment, logistics, operations, marketing etc.
 Decreased Profitability- We need to understand that the standard of living is much
higher in these countries because of which the company might find it difficult to
deliver high standard services while maintaining the similar profit margins.
 Brand Positioning- Banyan Tree Hotels and Resorts has the tagline- “Sanctuary for
the Senses” whereas other countries do not have similar greenery or are mostly
covered by deserts and customers look to get away from those surroundings whenever
it is possible.
 Governmental Policies- The policies of setting up of foreign companies are not very
flexible in various countries especially the middle eastern countries and the company
might have to adust their policies to meet the international standards.

Some recommendations to counter the potential issues that can be faced by the company are
as follows:

 Reinforcing their Culture- Newly recruited Executives must be made aware of the
Banyan Tree Company culture where they themselves are responsible for creating
unique experiences for their customers. The sense of employee inclusion to create a
unique experience must be retained.
 Adapting the Culture to Deliver Customised Services- The Banyan Tree Hotels and
Resorts are focused on the Asian Culture which may not always be popular in every
country, so they must explore more options to use the culture of those areas to their
advantage to create more unique experiences so that customers may return.
 Conducting a Market Study- A Market Study needs to be conducted as to how to
attract the niche customers that Banyan Tree hopes to attract in the mentioned
countries and cater to the services that are demanded by them and provide them a
 cutting edge over the potential competitors and attract more customers and also satisfy
them.
 Bundling Services and Packages- The company can consider the opportunity to
combine the services and merchandises offered by various brands under Banyan Tree
and provide a bundle or package of services as all its customers are middle-high end
income population as it will help create a new set of demand for all the products and
services offered by different brands under the umbrella.

Conclusion
Banyan Hotels and resort have established an unrivaled niche in Asia in the Hotel trade.
Presently, the prime Hotel chains in the globe such as the Hilton fail to rival it in Asia. The
founder of the Holding, Mr. Ho Kwon together with the Co-founder Ms. Claire Ching had a
lucid and defined vision that has seen them accomplish enormous strides in the trade. They
typify how a clear vision undergoes successful marketing to reap the benefits of their dream.
With a skilled marketing team, Banyan Holdings transformed this grand idea into a brand
name, which experiences universal acclamation. This is because it has collected tributes from
the UN. A brand is a special feature that is associated with either a merchandise or procedure.
If the service is of superior quality, the brand sells. The brand must make continous efforts to
serve its customer better and entice them to return with exciting new engagements and
offerings.