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Daiwa house group
Daiwa Resort Corporation
    Daiwa Royal Hotels
         system
    (30 Royal hotels in
          Japan)
        Beppuwan
         Royal Hotel
           (BRH)
Beppuwan Royal hotel:
 300 room (with 30 different types)
 Location: Hiji City, Oita Prefecture
 Sightseeing: Jikokumeguri, Takazaki Monkey
  zoo, Africa Safari National park.
 Traditional place: Yufuin district, Kitsuki district.
 Facilities: wedding chapel, open-air hot spring
  baths, and conference rooms, garden pool, a full-
  fledged golf course nearby and relaxation esthetics
Current market Target:
                        Wedding Services




Current economic recession            Aim to new potential segment




                                        Penetrating to
                                         new potential
             Sustaining the
                                       segment which is
            recent Wedding
                                             APU
            Service Segment
                                         international
                                           students
1. Satisfaction of customer:
  Foreign languages support (English, Chinese,
   Korean)
  Lovable-Sanrio themed room
  Thoughtful preparation (sink example)
  Good Comment from customers on Travel-
   advisor Websites.
2. Diverse Dishes
 Japanese, Chinese, Western Styled Restaurants
 6 Restaurants in total
 Serving diverse foods such as: baked meat, Beppu
 special dishes and so on…
3. Unforgettable Image
 Good Services’ Quality
 Luxurious facilities: outdoor pool, pool (seasonal
 use), karaoke, and game center, LAN connectivity in
 high speed, outdoor
 baths, sauna, golf, tennis, chapel, bridal fair and so
 on…
the hotel is high ranked in some famous Wedding
 website such us zexy.net, mwed.jp, etc…
1. High Operation Cost
 Operating a lot of services as referred above:
 Tennis, Golf, Outdoor Pool, Cycling, Ocean seaside
 Swimming, Fishing, Hiking, Hot Spring, Large
 Baths, Relaxation Esthetics and so on…
 Unless it is a good business day when there are many
 customers using those services, otherwise it really
 costs a considerable amount of money to pay for
 employees who work to maintain and operate those
 services.
2. Less competitive Location

      Huge Ryokan            BRH is far
      System inside        from center of
          Beppu               Beppu




       Attractiveness of        Fukuoka,
      Shopping center of   Commercial center
        Hiji and Beppu      of Kyushu Island
3. Unaffordable Image
                Direct Survey Result




         5/40

                                       Unaffordable
                                       Acceptable
                       35/40
1.Considerable Location
 Not near center of Beppu or Hiji
 One side is Beppu Bay, one side is Mountain
 Ideal and natural place for Wedding Ceremony
2. Abundant part-time Working force

   Near Kamegawa area where is homing a lot of APU
    international Students
   APU international Student’s feature:
     Foreign languages support capability
     Low wage cost, do not cost a lot of insurance fees
     Hiring APU Students will help to solve expenditure cut-
     off problems, and improve many business.
3. Internationalization
 By employing international Students from APU who:
    Will be potential customers with reasonable prices
    Will bring BRH brand name to the world
    Will bring foreign customers to the hotel in return
1. Economic factor
 Current economic recession
 Expenditure cut-off although there were many
  stimulus packages had been taken place.
 Yen-high
        Hotel industry become more and more risky,
  and hard to develop sustainablely in this economic
  circumstance.
2. Wedding Segment becomes less potential

   Due to:
     Japanese modern lifestyle
     Japanese population is decreasing
Conclusion of SWOT
BRH is facing hard period. For a sustainable
  development, the hotel had better make use of APU
  international Students, who:
 As workers, they are an abundant part-time working
  force with low wage.
 As customers, they are affordable with reasonable
  price packages for middle class.
Current Target market: Upper Class,
Organizational entities.
 Wedding services


 Restaurant services        The most beneficial
                                 segments


 Leasing conference rooms
Product
 About 300 rooms in 30 different types
 Wedding services
 Restaurant services
 Other services: outdoor pool, pool (seasonal use),
 karaoke, and game center, outdoor baths, sauna, golf,
 tennis.
Place
 Location in Beppu bay
    Beautiful sightseeing
    Natural place for vacation (one side is Beppu bay and
     one side is Mountain)
 Assessable
    5 minutes walking from Oita Koutsuu Bus Stop
    5 minutes by taxi from Kamegawa JR Station
Promotion
 Internet marketing websites (with foreign languages
  support)
 Official hotel for guests of Harmony Land
 Room with adorable item of Sanrio such as Kitty
  themed room and so on…
Price
 For single room per night: around 6000 to 30000
 Wedding party for 90 guests: around
 2,375,800 (Includes: bridal fair, chapel and party with
 Nomihoudai (drink for free))
Objective 1
 the segment accounts for a high
  market share (deduction from          in low market growth rate
 direct survey, the hotel wedding            (current Japanese
 services have a good position in
         customer mind)                         economics)


                                                          Objective 2
                       Wedding Segment is a
                             Cash-Cow
                                                            penetrating to a new
                       strategic business unit               potential segment
                                                            which is international
                                                                  students



    Maintaining market
                                       Making improvements in the
  dominance by being price
                                                services
  leader in this year (2012)
Objective 1 implementation
  Activities:
     promoting the advertisement to get those couples
      awareness about our services in high-living standards cities
      such as Osaka, Tokyo, and Kyoto, with an acceptable price
      package.
     expanding the advertisement in those cities by Wedding
      magazines fromリクルート (Recruit Commercial
      Advertising Company)
Objective 1 implementation
  Timetable:
     According to Japanese culture, they often hold wedding
      ceremony in May or December
    before May or December 2-3 months, we will
      intensively promote the advertising in those large cities.
  Budgets:
     Using recent profit of Wedding segment and
     asking subsidy from Mother Company
 It is supposed to be around 2.500.000 to effort this
  objective.
Objective 1 implementation
  Performance standards: As a result, we expect that
  those couples from these large cite will supplement the
  decreasing part of wedding segment in Oita region in
  this year.
 we can sustain this segment and wait for new chances
  in the recovering economics in next year.
Objective 2 implementation
 Activities:
    Changing our employees systems so that international part-
     time working students will account for 35%-40% of our
     employee systems.
    providing special plans for APU students who are going to
     graduate in April and September each year, so that the plans
     are affordable and appeal to these students and their family to
     have a tour in Oita after graduating from APU.
    being sponsor for APU cultural weeks, we will help them print
     poster and in other PR activities of the cultural weeks so that
     our brand will appear on those PR channels.
Objective 2 implementation
 Timetable:
    this objective is long-term target,
    Carrying out continuously the objective for 3 years, and intensively
     in APU cultural weeks’ period and April and Septembers.
 Budgets:
    we will use the amount of money which was saved from hiring part-
     time workers instead of Japanese employees to support for this
     objective.
 Performance standards:
    in the next 3 years, we will be able to penetrate to this potential
     segment and make it become more and more profitable during
     graduate periods of APU.
    we are looking forward to possessing a young, willing and
     enthusiastic working force without spending a lot of money and
     time to find working force sources.

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Outline

  • 1. Daiwa house group Daiwa Resort Corporation Daiwa Royal Hotels system (30 Royal hotels in Japan) Beppuwan Royal Hotel (BRH)
  • 2. Beppuwan Royal hotel:  300 room (with 30 different types)  Location: Hiji City, Oita Prefecture  Sightseeing: Jikokumeguri, Takazaki Monkey zoo, Africa Safari National park.  Traditional place: Yufuin district, Kitsuki district.  Facilities: wedding chapel, open-air hot spring baths, and conference rooms, garden pool, a full- fledged golf course nearby and relaxation esthetics
  • 3. Current market Target: Wedding Services Current economic recession Aim to new potential segment Penetrating to new potential Sustaining the segment which is recent Wedding APU Service Segment international students
  • 4. 1. Satisfaction of customer:  Foreign languages support (English, Chinese, Korean)  Lovable-Sanrio themed room  Thoughtful preparation (sink example)  Good Comment from customers on Travel- advisor Websites.
  • 5. 2. Diverse Dishes  Japanese, Chinese, Western Styled Restaurants  6 Restaurants in total  Serving diverse foods such as: baked meat, Beppu special dishes and so on…
  • 6. 3. Unforgettable Image  Good Services’ Quality  Luxurious facilities: outdoor pool, pool (seasonal use), karaoke, and game center, LAN connectivity in high speed, outdoor baths, sauna, golf, tennis, chapel, bridal fair and so on… the hotel is high ranked in some famous Wedding website such us zexy.net, mwed.jp, etc…
  • 7. 1. High Operation Cost  Operating a lot of services as referred above: Tennis, Golf, Outdoor Pool, Cycling, Ocean seaside Swimming, Fishing, Hiking, Hot Spring, Large Baths, Relaxation Esthetics and so on…  Unless it is a good business day when there are many customers using those services, otherwise it really costs a considerable amount of money to pay for employees who work to maintain and operate those services.
  • 8. 2. Less competitive Location Huge Ryokan BRH is far System inside from center of Beppu Beppu Attractiveness of Fukuoka, Shopping center of Commercial center Hiji and Beppu of Kyushu Island
  • 9. 3. Unaffordable Image Direct Survey Result 5/40 Unaffordable Acceptable 35/40
  • 10. 1.Considerable Location  Not near center of Beppu or Hiji  One side is Beppu Bay, one side is Mountain  Ideal and natural place for Wedding Ceremony
  • 11. 2. Abundant part-time Working force  Near Kamegawa area where is homing a lot of APU international Students  APU international Student’s feature:  Foreign languages support capability  Low wage cost, do not cost a lot of insurance fees  Hiring APU Students will help to solve expenditure cut- off problems, and improve many business.
  • 12. 3. Internationalization  By employing international Students from APU who:  Will be potential customers with reasonable prices  Will bring BRH brand name to the world  Will bring foreign customers to the hotel in return
  • 13. 1. Economic factor  Current economic recession  Expenditure cut-off although there were many stimulus packages had been taken place.  Yen-high  Hotel industry become more and more risky, and hard to develop sustainablely in this economic circumstance.
  • 14. 2. Wedding Segment becomes less potential  Due to:  Japanese modern lifestyle  Japanese population is decreasing
  • 15. Conclusion of SWOT BRH is facing hard period. For a sustainable development, the hotel had better make use of APU international Students, who:  As workers, they are an abundant part-time working force with low wage.  As customers, they are affordable with reasonable price packages for middle class.
  • 16. Current Target market: Upper Class, Organizational entities.  Wedding services  Restaurant services The most beneficial segments  Leasing conference rooms
  • 17. Product  About 300 rooms in 30 different types  Wedding services  Restaurant services  Other services: outdoor pool, pool (seasonal use), karaoke, and game center, outdoor baths, sauna, golf, tennis.
  • 18. Place  Location in Beppu bay  Beautiful sightseeing  Natural place for vacation (one side is Beppu bay and one side is Mountain)  Assessable  5 minutes walking from Oita Koutsuu Bus Stop  5 minutes by taxi from Kamegawa JR Station
  • 19. Promotion  Internet marketing websites (with foreign languages support)  Official hotel for guests of Harmony Land  Room with adorable item of Sanrio such as Kitty themed room and so on…
  • 20. Price  For single room per night: around 6000 to 30000  Wedding party for 90 guests: around 2,375,800 (Includes: bridal fair, chapel and party with Nomihoudai (drink for free))
  • 21. Objective 1 the segment accounts for a high market share (deduction from in low market growth rate direct survey, the hotel wedding (current Japanese services have a good position in customer mind) economics) Objective 2 Wedding Segment is a Cash-Cow penetrating to a new strategic business unit potential segment which is international students Maintaining market Making improvements in the dominance by being price services leader in this year (2012)
  • 22. Objective 1 implementation  Activities:  promoting the advertisement to get those couples awareness about our services in high-living standards cities such as Osaka, Tokyo, and Kyoto, with an acceptable price package.  expanding the advertisement in those cities by Wedding magazines fromリクルート (Recruit Commercial Advertising Company)
  • 23. Objective 1 implementation  Timetable:  According to Japanese culture, they often hold wedding ceremony in May or December before May or December 2-3 months, we will intensively promote the advertising in those large cities.  Budgets:  Using recent profit of Wedding segment and  asking subsidy from Mother Company It is supposed to be around 2.500.000 to effort this objective.
  • 24. Objective 1 implementation  Performance standards: As a result, we expect that those couples from these large cite will supplement the decreasing part of wedding segment in Oita region in this year. we can sustain this segment and wait for new chances in the recovering economics in next year.
  • 25. Objective 2 implementation  Activities:  Changing our employees systems so that international part- time working students will account for 35%-40% of our employee systems.  providing special plans for APU students who are going to graduate in April and September each year, so that the plans are affordable and appeal to these students and their family to have a tour in Oita after graduating from APU.  being sponsor for APU cultural weeks, we will help them print poster and in other PR activities of the cultural weeks so that our brand will appear on those PR channels.
  • 26. Objective 2 implementation  Timetable:  this objective is long-term target,  Carrying out continuously the objective for 3 years, and intensively in APU cultural weeks’ period and April and Septembers.  Budgets:  we will use the amount of money which was saved from hiring part- time workers instead of Japanese employees to support for this objective.  Performance standards:  in the next 3 years, we will be able to penetrate to this potential segment and make it become more and more profitable during graduate periods of APU.  we are looking forward to possessing a young, willing and enthusiastic working force without spending a lot of money and time to find working force sources.