De Silva, Hui, and Peralta; An Analysis about The Case of Banyan Tree by |1

THE CASE OF
ROYAL CARIBBEAN: THE FINEST JAMAICAN PATTIES
BRAND MANAGEMENT

Submitted to: Prof Regina C. Dy

Submitted by: DE SILVA, KRISTINE ANN MARGARETH
HUI, Christian
PERALTA, Nhympha

2 October 2013
Executive Summary:

The Banyan Tree Holdings Limited (BTHR), established by husband and wife Ho Kwon
Pin and Claire Chiang in 1994, had already expanded into 25 resorts and hotels, 68 spas, 65 retail
galleries, and two golf courses in 23 Asian countries in 2009, and had achieved more than 400
international tourism, marketing, hospitality and design awards for its flagship brand Banyan Tree.

The company, which had built its brand only through public relations, global marketing
programs and its marketing partners, has repeatedly built profitable resorts and hotels in
rainforests with little damage to the surrounding environment and has also contributed to the local
economies through the creation of employments and community development projects
successfully.

The resort market in Asia is becoming increasingly crowded with similar competitive
advantage as of the Banyan Trees however, eating some market shares in the hospitality industry.
























De Silva, Hui, and Peralta; An Analysis about The Case of Banyan Tree by |2

Statement of the Problem:
How can Banyan Tree Holding, Ltd. expand its niche Asian hospitality brands into various market
segments around the world, specifically to America, Europe and Middle East, without
compromising its strong brand name, values, and business practices?

Objectives:
To identify the factors that made Banyan Tree a competitive and successful brand.
To find the potential problems of bringing Banyan Tree brand to America, Europe and
Middle East
To enumerate the best ways Banyan Tree can enter the global market

Major Assumption:
A. Threats
- Economic: The resort market in Asia is becoming increasing crowded with similar
competitive advantage as of the Banyan Trees.
- Political: The key players in the hospitality business in America, Europe and Middle East
might strongly retaliate the coming of Banyan Tree, increasing the barriers to entry.
- Economic: The cost of doing business in America, Europe and Middle East is much higher.
B. Opportunities
- Social: The demand for an affordable romantic and intimate smallish hotel experience
rather than luxurious accommodation is increasing.
- There is a gap in the hotel industry that giants chains such as the Hilton and Shangri-La could
not fill.

Areas of Considerations:
A. Strengths
- The Banyan Tree has a strong support from its employees, who actually care about the
property and find ownership to the success of the business, and from the local communities.
- The Banyan Tree manages or owns 25 resorts and hotels, 68 spas, 65 retail galleries and two
golf courses in 23 countries.
- The Banyan Tree had won some 400 international tourism, marketing, hospitality and design
awards.
- The Banyan Tree can make profits from the resorts and hotels it builds in rainforests with
little damage to the its surrounding environment, while still contributing to the local
communities by creating job employments and promoting the culture and heritage of the
area.

B. Weaknesses:
- The firm lacks adequate knowledge on how to market the Banyan Tree and the Angsana
brands in the international market.

C. Corporate Vision, Corporate Values, and Brand Identity:
- The ultimate vision of the owners is to to string a necklace of Banyan Tree Resorts around
the world, not quanitity, but a number of jewels that form a chain around the world.
- The company believes in building profitable resorts that would benefit the surrounding
environment and contribute to local economies through the creation of employments and
community development projects.
- The Banyan Trees ethos is to conserve the local culture and heritage and to promote cottage
crafts.
- The Banyan Tree brand is positioned as a sanctuary for the senses, and all its businesses
were designed around the concept of providing a sense of place.
De Silva, Hui, and Peralta; An Analysis about The Case of Banyan Tree by |3

Theoretical Framework

A. To identify the factors that made Banyan Tree a competitive and successful brand.

In identifying the factors that made the
Banyan Tree a competitive and
successful brand, the Service
Marketing System framework for High
Contact Service is used. The framework
recognizes that in service, there are
three areas that need to be factored in
the Service Operation Systems, the
Service Delivery System, and the other
Contact Points.

The Service Operation System is
divided into two tasks the backstage,
which comprises of the technical core
of the firm, and the front stage, which
comprises of the firms interior and exterior facilities, equipments, and service people.

On the otherhand, the Service Delivery System considers two types of customers to address the
other customers or the indirect and THE Customer or the target customers.

As for the Contact Points, the firms could use advertising, sales calls, marketing research surveys,
billing statements, website, phone calls, mails, email, word of mouth, and chance encounters with
the service personnel. The firms target customers could also acquire contact through random
exposure to facilities and vehicles.

Analysis Banyan Tree
Backstage Technical Core -To provide romantic, intimate, private sanctuaries for the senses
Frontstage Interior
Facilities
-The furnishings of the villas were deliberately native, conveying
the exoticism of the destination with its rich local flavour and
luxurious feel.
Exterior
Facilities
-The resorts are designed using local materials to blend into the
natural landscape of the surrounding environment and to reflect
and enhance the culture and heritage of the destination.
-The natural foliage and boulders are used as the privacy screen.
-The villas were constructed around existing trees, in a rainforest,
and were built on stilts and platforms
Equipment -The products were all natural, non-toxic, biodegradable
indigenous products made from local herbs and spices, and filled
in reusable containers made from celadon and ceramic.
-The Banyan Tree spas relied mainly on the human touch instead
of energy consuming, high-tech equipment.
Service People -All employees are trained to the basic standard of a five-star
service establishments, and some of them were given a chance to
become guests themselves to understand what the guest
experience is
-All Employees were empowered to exercise creativity and
sensitivity and were allowed to vary the service delivery process
Figure 1: Service Marketing System for High Contact Service
De Silva, Hui, and Peralta; An Analysis about The Case of Banyan Tree by |4

according to local culture and practices as long as these were
consistent with the brand promise of romance and intimacy
-The employees reflect the countrys unique heritage
Contact
Points
-The brand awareness for Banyan Tree was generated largely
though public relations, global marketing programs,
advertisements in high-end magazines, and by its marketing
partners (LW and LX).

B. To find the potential problems of bringing in Banyan Tree brand to America, Europe
and Middle East

BTHR, in bring in its brand in the international market, could suffer due to lack of brand awareness,
lack of strong favourable and unique brand association, and the negative reactions from the
customers.

These potential problems could be identified
through the brand salience, which relates to
how often and easily the brand is evoked under
various purchase or consumption situation, the
brand performance, which relates how the
service meets the customers functional needs,
the brand judgement, which focuses on
customers personal opinions and evolutions,
the brand feeling, which are the customers
response and reaction with respect to the
brand, and the brand resonance, which relates
to the nature of relationship the customers have
with the brand.


The brand resonance model views brand building as an ascending sequential series of steps. It
ensures the identification of the brand with customers and associates the brand in customers mind
with a specific product class or customers needs. It also firmly establishes the totality of the brand
meaning in the minds of the customers by strategically linking a host of tangible and intangible
brand associations, and elicit the proper customer response in terms of brand related judgements
and feelings. Lastly, it converts brand response to create an intense active loyalty relationship
between the customer and the brand.

Using this model, Banyan Tree Holding, Ltd. could spot whether its Banyan Tree brand and service
offering are being accepted and embraced by the international market in their own country or not.
If the market wouldnt have a deep, broad, brand awareness about the Banyan Tree, if the market
does know who is BTHR, then it woudnt be able to ascend another step, performance, nor could it
get a positive accessible reaction from its target customer.








De Silva, Hui, and Peralta; An Analysis about The Case of Banyan Tree by |5

C. To enumerate the best ways Banyan Tree can enter the global market

BTHR mode of entry could be through indirect exporting, direct exporting, licensing, joint venture,
or direct investment.

For industries offering services, the licensing is a simplest and safest way to
engage in international market. But, among the modes of entry, it has the less
control over its operation and has the lowest profit potential and commitment;
whereas, direct investment is the riskiest mode but with the highest control,
profit potential and commitment. In direct investment, however, the market
demand should be, large enough in order to be successful.

Joint venture, on the otherhand, shares ownership and control between the
foreign and the local investors. The risk is neither high nor low as it is divided
by the partners involved. Knowledge about the geography and demographics
of the particular country could easily be gathered through the help of the firms
local partners.




Alternative Courses of Action
Threat
The cost of doing business in
America, Europe and Middle East
is much higher.
Opportunity
The demand for an affordable
romantic and intimate smallish
hotel experience rather than
luxurious accommodation is
increasing.
Strength
The BTHR can make
profits from the resorts
and hotels it builds in
rainforests with little
damage to the
surrounding
environment, while still
contributing to the
local communities by
creating job
employments and
promoting the culture
and heritage of the
area.
ACA 1:
Highlight to international
governments the job
opportunities the firm would be
bring in to their countries, and
the increase in its tourism
industry and the promotion of its
local culture and heritage through
its hotels and resorts to earn
some favors and supports from
them.
ACA 2:
Promote to the international market
the romantic and intimate smallish
but luxurious hotel experience the
firm would be offering to them along
with the promotion of its heritage
and environment.
Weakness
The firm lacks
adequate knowledge
on how to market the
Banyan Tree and the
Angsana brands in the
international market.

ACA 3:
Enter via Joint Venture to be able
to share some of the operation
cost to a local partner and to get
to know better the geography and
demographics of that particular
country.
ACA 4:
Highlight to international
governments the affordable but
unique luxurious hotel Banyan Tree
Holding Ltd would be bringing to
their country to aid the firm in
getting to know the target market
well.
Figure 2: Five Modes
of Entry into Foreign
Market
De Silva, Hui, and Peralta; An Analysis about The Case of Banyan Tree by |6



Recommendation

Action Plans