term paper a final

7/30/2019 Term Paper a Final

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B Y : K A W I N , N E T I , A M O R N R AT, P A N U , PAT,


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Industry Overview

80%

20%

Market share contributors

SME-owned Non- SME

29%

21% 15%

South North East0%

5%

10%

15%

20%

25%

30%

35%

Expansion rates 2010-2011

Hotel & ResortMarket 300 trillion

baht (Kasikorn res.)

INDUSTRY SIZE INDUSTRY GROWTH

Customer &CompetitionCompany Issues &ObjectivesIndustryBackground

Recommendations


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2010 Market Value

2011 Market value

-

100,000

200,000

300,000

400,000

500,000

600,000

ThaiTravellers

ForeignTravellers

Total

411,429

144,127

555,556

432,000

168,000

600,000

Thailand Tourism Market Value

2010 Market Value

2011 Market value8%

Growth5%Growth

17%Growt

h


Recommendations


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Koh Kood CabanaCompany Background


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Founded in 1993 by Mr. Sommai P.

Located in Trat province

The first-ever resort on Koh Kood Island

Koh Kood Island

Recognized as one of Thailands most beautifulbeaches

Possesses authentic beauty and privacy

KOH KOOD CABANA

Koh Kood Cabana offers one-of-a-kind relaxation and

affordability to the adventurous, passionate, yet

budget travelers who seek a real natural atmosphere.

Mission Statement

Customer &CompetitionCompany

Issues &ObjectivesIndustryBackground Recommendations


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SUSTAINABLE COMPETITIVE ADVANTAGE

Long private Beach

front

Private atmosphere

Very Natural Food

DISTINCTIVE COMPETENCY




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- Cuisine freshly prepared by the in-house restaurant

- An array of complementary services

- Well-equipped facilities

SERVICE RECOVERING STRATEGIES

To satisfy customers by providing themexceptional service qualityKKCs Goal




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Key to KKCs success:

Providing a healthy service culture to keep up with the

aggressive beach resort industry

Satisfying the guests with the promised level of service Service feedback from front-line service staff Empowerment of employees

Open discussions with the owner

Employee training sessions

A BOTTOM-UP APPROACH




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CORPORATE STRATEGY

Seasonality(low and high seasons)

Political situation(Red vs. Yellowshirts)

Target more Thai customers

Improve communication

methods, emphasis: first-mover authenticity location competitiveness

Provide more rooms and tentsTrain and recruit occasional employees

Low awareness levelWhere is Koh Kood?




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Accommodation Activity Employee




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ACCOMODATION




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ACTIVITIES

The KlongChaoWaterfall

Freetransportati

on backand forth

By truck orspeedboat.

Snorkeling

Speedboataccomodation

1.5 hoursto dive

Gears areprovided.

Karaoke

Dinningzone ministagewith free

of charge

EatingExperience

Thaicuisines:seafood forlunch anddinner andinternationalbreakfast

Others

Kayakboats

Beachchairs

Beach

footballandvolleyball

Sandcastlebuilding




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EMPLOYEE



10 FULL-TIMEEMPLOYEES

SEASONALEMPLOYEES

Inexperienced and unqualifiedHigh turnover rate


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PLACE




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KOH KOOD CABANA84 km southeast of Trat

105 sq. km area

Second largest

island of the Koh

Chang Marine

National Park

Fourth largest in

Thailand

Tapow Beach on the west coast

Long white sandy beaches approximately 800 m.




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PLACE ADVANTAGES

Isolated island from city lights

Boasts real relaxation atmosphere

unlike Pattaya or Phuket

PLACE DISADVANTAGES

Electricity not serviced in the area

Underground water insufficient during

summer and for heavy consumption




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PRICECustomer &CompetitionCompany



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Initial pricing strategy based on land costs

plus the expected profit/yeardivided by the forecasted customer demand

Pricing strategy based on competitor pricing

Current accommodationoutdated versus that of

competitors

Ranked rank as a 3-star resort

PRICE LOWER THAN

COMPETITORCustomer &CompetitionCompany Issues &ObjectivesIndustryBackground Recommendations

INCREASE INCOMPETITORS


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Air-condition Bungalow 5,500 Baht/person

Air-condition Bungalow VIP 6,000 Baht/person

Deluxe (Bungalow) 6,500 Baht/person

Tent 4,200 Baht/person

Car park 100 Baht/ 3 days 2 nights

Children: Age 4-6 years (discount 50%)

Children: Age 7-10 years (discount 25%)

KOHKOOH CABANA

Pricing3 Day, 2 Night package

The above charts are suggested package recommended by Koh-Kood Cabana. It

includes Speedboat takes customer from Trat pier to Koh-

Kood.

All you can eat breakfast, lunch, supper, dinner Snorkel diving, visiting Klong Chao waterfall, Karaoke

singing

Speedboat takes customer back to Trat pier

Customer &CompetitionCompany Issues &ObjectivesIndustryBackground Recommendations


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PROMOTI

ONKOH KOODCABANA



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Clear blue sea, White sandy beach,Azure blue skyCustomer &CompetitionCompany Issues &ObjectivesIndustryBackground Recommendations


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PROMOTION


Online reservations via the resorts Website

Participation in travel fairs

Limited marketing campaigns to advertise the

resort

No strategic marketing campaigns to directly

capture the target group No supportive media to attract potential

customers when exposed to competitors media

in getting in touch with their customers


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PROCESS &

PROGRAMMING



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SERVICE BLUEPRINTPhysical Evidence Customer

Actions

Onstage Contact

employee

actions

Backstage Contact

employee actions

Support

Processes

Website/Advertising/

Phone call/ Traveling

Boots

Make reservationMake reservation for

guests

Reservation

system

Parking spot

Lobby Carts

Arrive at Trat koh

kood cabana pier

Carry guest bags and

stuff to the boat

Boat

Life jackets

Travel to koh kood

cabana by boat

Demonstrate how

to use a life jacket

- Driving boat-Prepare adequate

amount of life jackets

Pier at koh kood

cabana Carts

Arriving at koh

kood cabana

Take guests to the

lobby

Carry bags and stuff to

caf lobby

Caf Lobby

Relaxing whilewaiting for bags

and stuffs at the

lobby

Serving welcomedrink

Tell the day

schedule

Prepare welcome

drink

Desk lobby/keys Check-inProcess registration

Assign key

Registration

system



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SERVICE BLUEPRINT

Physical Evidence Customer

Actions

Onstage Contact

employee

actions

Backstage Contact

employee actions

Support

Processes

Caf lobby LunchGetting lunch

Serving food/

Taking order

Prepared food

Clean up

Boats Snorkels

Life jackets

Snorkeling trip

Give an instruction

for snorkeling

lesson

-Prepare adequateamounts snorkel and

life jacket

-Clean up after done

Food Caf lobbyAfternoon Meal

Serving food/ take

order

Prepared food

Clean up

Dinner

Karaoke Live music

Caf Lobby

Dinner party

Serving food

Entertain guests by

many activities

Tell the schedule

for the next day

-Prepared food

-Clean up

-Open music/karaoke



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SERVICE BLUEPRINT


Actions

Onstage Contact

employee

actions

Backstage Contact

employee actions

Support

Processes

Breakfast Caf

lobby

BreakfastServing food/ take

orders

Prepared food

Clean up

Lunch Caf lobbyLunch

Serving food/ take

orders

Prepared food

Clean up

Boats/Cars Life

jackets

Going to Klong

chao water fall

Guide the way

to water fall

Explain the

history of Klong-

chao water fall

Driving boats/cars

Prepared life

jackets

Food Caf lobby Afternoon mealServing food/ take

orders

Prepare food

Clean up

Dinner Karaoke

Live music

Caf lobby

Dinner party

Serving food

Entertain guests

by many

activities

Prepare food

Clean up

Open

music/karaoke



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SERVICE BLUEPRINT


Actions

Onstage Contact

employee

actions

Backstage Contact

employee actions

Support

Processes

Breakfast

Caf lobbyBreakfast

Serving food/

take order

Prepared food

Clean up

Lobby desk

KeysCheck out

Processing

check out

Registration

systemCarts

Pier at koh kood

cabana

Boats

Life jackets

Back to Trat Driving boat

Carry bags and

stuff to boats

Prepare life jackets

Parking spot Leave

Have a safe trip

back and hopeto see u again



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- Key man risk- No flexibility on to serve customers

needs

- Activities require a large numberof staff for safety purposes

- Both onstage and backstageoperations require good

communication skills


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Convenienceoutgoing

enjoy participating in allthe activities

explore the beauty of

natureadventurous

Recommendations

90%

10%Foreigners

Thai


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TravelDesire Information Search AlternativeSolutions Decision

Decision-making Process

Advertising PromotionalPricingMarketing

Promotion

InternetTravel Agency Peers andFamilies

Activities Seclusion

ReputationLocation

ExpectationMotivation Needs

Companies offersVS



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CONSUMER EXPECTATION & MOTIVATION

Customer Expectation

- Real nature

- Clean beach

- Nice weather

- Escape from their work

- Real nature Koh Kood

Cabana could provide

- Calm & Peaceful

- Real escape from the work

life and the light and sound

of the city

Customer Motivation



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CONSUMER NEEDS

Resort Customer needs

Product: Accommodation Service:

Employee- Acceptable room decoration

- Facility work well

- Convenience

- Good Facility maintenance

- Safety

- Private- Activity offers

- Treat customer in good manner- Respond quickly to customer

request

- Polite

- Consistence service quality

- Good service blue print

- On time service- Understand your customers

needs and be able to meetthem

- Friendly- Customer oriented


Weaknes

s


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KOH KOOD CABANA CUSTOMER CHARACTERISTIC

Adventurous lifestyle

Loves nature

Budget travellers



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FIT

Adventurous

lifestyle

Loves nature Budget travellers

Activity such as

going to

Waterfall,

Snorkeling , climbmountain

Thai style sea-

food which is onlyplace available in

Koh Kood

Nice, long

beach for

relaxation andseclusion

Prohibition of

scooter, banana

boat and any kind

of vehicle tominimize pollution

Fixed pricing

package with

activities, food,

and

accommodation

included at lowprice



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Travel expectation, motivation, and needs

Self-esteemdevelopment

Relationship

Safety andSecurity

Relaxation



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MARKET SEGMENTATION


M k t S t ti d T ti


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Market Segmentation and Targeting Leisure holidays BusinessesBehavioral

25 years old ++

Income: Middle class 40% : 10,000 to 50,000 35% : 50,000 to 100,000

Demographic

Adventurous Save the Earth Experience-oriented

Psychographic



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Budget hotel

THE INDUSTRY TREND

BUDGET & BOUTIQUE MODEL

A hotel built with the most cost efficient way Value for money Functional benefit

Getting away from traditional model with

Boutique hotel

Focus on delivering new experiences Luxury pricing Emotional side



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THE INDUSTRY TRENDGetting away from traditional model with

E X A M P L E . L U B D H O T E L



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Location: Silom & Siam Square

Targeting: Backpackers, Young Adults

Type: Budget Boutique Hotel



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Focus on the design on most of services' elements


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COMPETITOR ANALYSIS

Chanta Resort

Away Resort

Peter PanResort

Captain Hook

Resort

Bai Kood Resort

Koh KoodBeach Resort

Competitive advantages: More modern designs andnewer accommodations versus those offered by

KKC


C tit P i i


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Competitor PricingResort Name 3 days 2

nights

package

Rating

TinkerBell(beachfront)

8,453

Shantaa(2 queen-

size)

7,458*

CaptainHook

(DeluxVilla)

6,800

Peter Pan(Delux

Villa)

6,900

Suanya(Standard)

6,000

Cabana(Standard)

5,450

AwayResort(DeluxVilla)

5,800

TheBeachNatural(Garden

view)

5,544*

Ao Phrao(Sea

Beach)

4,296*

*Room rates per 2 nights



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SITUATION ANALYSIS

Being the first mover on the

islandSatisfying target groups with

outdoor, adventurous activities

CRM: Owners (Mr. Sommai)s

friendlinessS

Poor infrastructure

on the island(electricity)

No marketing

campaign

Inefficient service

blue-print

WCompetition rise of

boutique resorts

Natural disasters

Fluctuation of currencyPolitical instability

Capture the industry

growth

Increasing marketing

communications to widencustomer baseO T


Issues &Objectives

IndustryBackground Recommendations


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Employee

Service

Improvementand TrainingOperational and

marketing

communicationdevelopment

1. Empowered, competent

staff, acquiring a service-

oriented perspective and

managing problems at-

hand without supervision

needed.

Acquire a larger segment

of the foreign market,while implementing back-

office procedures to

better satisfy and retain.

The resort lacksqualified

employees,

causing customerdissatisfaction

Unable to retaincustomers or toattract newmarkets




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RECOMMENDATION I


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RECOMMENDATION I

PROBLEM

EMPLOYEE SERVICE

CUSTOMER DISSATISFACTION

DECREASING IN OCCUPANCYRATE


Issues &Objectives


RECOMMENDATION I


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OBJECTIV

E

Increase the customersatisfaction Rate

IMPROVESERVICE QUALITY

RECOMMENDATION I


Issues &Objectives


IMPLEMENTATION


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Intensive training On-the-job training

Promoted to full-time employeesafter three years ofwork at KKC

IMPLEMENTATION

Tracking customer satisfaction

- Interview customers to gain feedback on their satisfaction


Issues &Objectives


Set up a supervisor team consisting of ull-time employee- Responsible for training seasonal employees to perform quality

at their best attitude

Retirement benefits Additional benefits

Health insurance Higher salary Compensation

packages

Increase employeeloyalty

IMPLEMENTATION PLAN


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IMPLEMENTATION PLAN

Set service standards for employees for temployees to work on timely basis

Service Blueprint Improvements Offer fixed schedules of activities andmeals Enable guests to plan their time ahead


Issues &Objectives


Work on a timely basis to achievecustomer satisfaction

Provide discounts if unexpected things occur Prevent bad impressions and possible

negative WOM

RECOMMENDATION II


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RECOMMENDATION II

To attract new customers and increase the retentionrate of existing guests


Issues &Objectives


IMPLEMENTATION PLAN


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IMPLEMENTATION PLAN


Issues &Objectives


OPERATIONAL

DEVELOPMENT

Travel

Desire

InformationSearch

Alternative

Solutions

Decision

DestinationPromotions

PicturesTestimonials

OBJECTIVE

Develop an effective operationalback office and enhance marketing

communications

MARKETING

COMMUNICATIONS

IMPLEMENTATION PLAN


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IMPLEMENTATION PLAN

Customer &Competition

Issues &Objectives Recommendations

OPERATIONAL DEVELOPMENT

Reduceservice

failures!

Room availability checking Real-time updating occupancy and

rates Electronic payment and receipts

Customization of order Full search capability Reporting and sales analysis

ONLINE HOTEL BOOKING ENGINE

CompanyIndustry

Background

Upgrade Direct contact Efficient

IMPLEMENTATION PLAN


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IMPLEMENTATION PLAN

Customer &

CompetitionCompanyIssues &

ObjectivesIndustry

Background Recommendations

BENEFITS

Increase in direct sales from the Website

Reduction in administration costs

Maximize room yields

Increase customer satisfaction and

loyalty

World-wide focus to increase customer

IMPLEMENTATION PLAN


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IMPLEMENTATION PLAN

Customer &


ObjectivesIndustry


OPERATIONAL DEVELOPMENT

MARKETING COMMUNICATIONS


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MARKETING COMMUNICATIONS

Incentive to tour agency Give more incentive to the agent if they

could bring customer on week day (e.g.,higher commissions) Above the standard percentage

Set up Special Activity andEvent To make KKC more attractive in the eyes

of customer we A special event/activity during weekdays

Customer &


ObjectivesIndustry


No repeat activity attract customers

to come to KKC Mini concerts, special chef, spa,

dive lessons, shows, etc.


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Customer &


ObjectivesIndustry


MARKETING COMMUNICATIONS - IMPLEMENTATION

Set up teams Responsible for organizing events

Developing new events in response

to market trends

Special events are limited to MEMBERS ONLY! Drives customers to establish

membership with KKC Special rates

for members Spend nights at KKC Occupancy increases


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THANK YOU FOR YOURATTENTION!

term paper a final

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