Banyan Tree Essay
1. One of the main factors that contributed to Banyan Tree’s success is their public relations and global marketing programs. They allowed Banyan Tree to achieve global exposure and a high level of brand recognition with only minimal advertising. Banyan Tree founders, Ho Kwon Ping and Claire Chang, worked hard to build a strong brand so they could maintain a sustainable competitive advantage. They were also able to target the niche market that wanted private, intimate accommodations without the expectations of glitzy chain hotels.
They spotted a large price difference between the very expensive resorts and the relatively cheap ones, and they realized they could fill that gap. They also built their resorts differently. Banyan Tree is compromised of individual villas that give guest they privacy they have been seeking. They put a lot of work into the physical and emotional environment their resort would provide for guests. 2. I personally think it will be difficult for Banyan Tree to maintain it’s unique positioning in the future.
As I was reading this case I thought multiple times how there are now several resorts built just like this one. I think Banyan Tree can continue to be successful, but other resorts are already trying to push them out of their position. Banyan Tree could just become one of the many when it comes to resorts. 3. I think their brand portfolio of Banyan Tree, Angsana, and Colours of Angsana all fit as a family. Many companies do this strategy. I know in the music industry there are a lot of smaller record labels that are owned/part of a large label.
I also think their other services such as the spas and galleries fit too because they are closely tied to the theme/values of Banyan Tree. However I would recommend that Banyan Tree doesn’t expand too far. Everything they offer should be somehow related to Banyan Tree. If they don’t keep everything related they could start to get unfocused. 4. The practice of corporate social responsibility can greatly increase brand equity. Practicing corporate social responsibility gives the company a positive reputation. Not only does it look good to prospective customers but it also keeps the local community happy.
Companies that don’t practice corporate social responsibility can fail for a number of reasons such as not meeting environment standards or having the community complain so much it gets bad press. 5. A potential problem I see with Banyan Tree expanding to America, Europe, and the Middle East is that all their resorts are based around this Asian theme. They will have to decide what changes they will make to fit each new place. For example if I went to a Banyan Tree resort in Thailand I would enjoy an Asian theme.
On the other hand, if I went to the Middle East I wouldn’t want an Asian theme; I would want a Middle Eastern theme. To address that issues Banyan Tree should conduct extensive market research to investigate what their market would want. Another problem I could see with Banyan Tree expand to other continents is that it could get too big to easily manage. It was founded on the basis that it was different than all the chain hotels, so they need to maintain that private feeling guest expect when staying at a Banyan Tree resort.