The Banyan Tree: Branding the intangible Harvard Case Solution & Analysis

Introduction

Banyan Tree is basically a well-known and recognized resort and spa business in Asia. The company is based in Singapore. The company was founded by Ho Kwon Ping and his wife Claire Chang. The company has more than 25 resorts and hotel, 65 retail galleries and 68 spas which are located in more than twenty three countries. Banyan Tree has been a premium brand in the Asia Pacific market where it offers luxury spas, hotels and resorts in the Asian market. The hotel offers individual villas along with the private pool, spa treatment and the Jacuzzi services entertain the guest at the utmost level. The resort has mainly targeted the high end consumers and for this the hotel charge premium pricing because they offer exclusive services to the clients (Banyan Tree, 2014).

To offer the customers with high quality and superior services the company has its own training institute where they train their staff specifically for the customer service and customer satisfaction. The training academy of Banyan Tree has actually made the employees well equipped at handling customer services and offer them premium services. Banyan Tree offers exclusive values and culture that drives through the various heritages where Banyan Tree operates its business (Wirtz, 2011). Employees of the company are provided independence to actually divert the theme and the way it offers services to the specific customer according to their demand and wants. Another unique feature of the company has been its distribution network and the designated club, spas, spa products, retail galleries and the signature spa products. Banyan Tree has been one of the leading and renowned players in the tourism market where they represent the luxury resorts and spas in Asia (Wirtz, 2011).

However, with the recent success in the different markets across the Asia Pacific region, Banyan Tree plans to move it to the Chinese market. The idea of the company is to aim the Chinese market, which represents a big chunk of the audience where the company wants to become a global venture.

Market analysis

Main trends

PEST Analysis

Political Factors:

The political condition of Chinese market where Banyan Tree Hotels and Resorts is looking to expand itself in the Asian market to set up a resort. The political condition of the counter is sound because of the sound government of Chinese Communist party. People in this part of the world are satisfied with the political condition of the country and the citizen is also satisfied. The people of China have made the government to move and switch towards liberalization. Along with this, People’s Republic of China has 22 provinces (Simons, 2012).

Economic Factors:

The Gross Domestic Product of Chinese economy is $10.027 trillion with the per capita income of $7,000. The domestic retail market shows prosperous growth of 12% per annum as of 2013, and the country also holds a 27.5% share in the global luxury goods market. The tariffs in china are high but are subject to a declining slope. The tourism industry is on the verge of growth with more companies setting up their businesses in the fast moving economy. Along with this, China holds the record large number of billionaires. The tourism industry accounts for a total of over $48 billion in China. This shows that the economic condition is quite stable, and therefore Banyan Tree Hotels and Resorts should enter the market (Ries, 2000).

Social Factors:

The social growth rate in China has declined with the involvement of government where no family is allowed to have more than a child. However, still it is the fastest aging population because of the increased population. However, the growth percentage of population is on a decline (Simons, 2012). The income levels are higher in the East China as compared to West China, where the per capita income is slightly lesser. The style or the standard of living in China is quite the free style where people, do not worry about the environment and in fact focus on looking after their internal matters (Fill, 2009).

Technological Factors:

The technical attributes of China are quite advanced and it is one of the fastest growing country in terms of technology. The government has been of great support to develop an infrastructure which can further expand the technical innovation. Along with this, the energy consumption is low in the country. In the current technically advanced environment, Banyan Tree can actually establish itself with the unique offerings (Ries, 2000).

Target market

The target market for Banyan Tree Hotels and Resorts is the upper class audience. The services offered by the company are of premium quality therefore the customer is charged higher prices for the romance and intimacy offered by Banyan Tree. The customers for the spa are the premium and rich people who look for high quality of services, food, and recreational activities. The target audience includes new wed couples.................

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