Sandals Presentation

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Marketing Research and Consumer Behavior Report for Sandals Resorts

Created a professional brand management market segmentation report for Sandals Resorts including a market situation analysis, psychographic, demographic, geodemographics, and product-related behavioral characteristics, consumer market segmentation analysis, identified Sandals Resorts target market, VALS2, PRIZM, consumer benefit segmentation, market size and sales potential, consumer decision process model, identified consumer problems and suggested marketing mix solutions to all problems, and identified opportunities for growth.

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Sandals Presentation

  1. 1. Sandals Resorts Team 5 Sara Huelsman Mike Huser Pat Hyland Stephanie Johnson Jill Kuefner Matt Mlazovsky
  2. 2. Market Situation Analysis Mike Huser
  3. 3. History of the Industry <ul><li>The Beginning </li></ul><ul><ul><li>Biblical Times </li></ul></ul><ul><ul><li>Greeks </li></ul></ul><ul><ul><li>Romans </li></ul></ul><ul><ul><li>Middle Ages </li></ul></ul><ul><li>Fifteenth Century </li></ul><ul><ul><li>New Innovation during this time </li></ul></ul><ul><ul><ul><li>Scenic Courtyards </li></ul></ul></ul><ul><ul><ul><li>Kitchen and Stables </li></ul></ul></ul>
  4. 4. History of the Industry Continued <ul><li>Le Grand Hotel Paris </li></ul><ul><ul><li>Electric lighting in the hotel </li></ul></ul><ul><li>Twentieth Century </li></ul><ul><ul><li>Resorts begin to develop along scenic terrain </li></ul></ul><ul><ul><ul><li>Mountains and Oceans </li></ul></ul></ul><ul><ul><li>1970’s and 80’s focused on convenience </li></ul></ul><ul><ul><ul><li>Airports, conference rooms, and health centers </li></ul></ul></ul><ul><ul><li>1991 the Industry declines </li></ul></ul><ul><ul><li>Industry currently has 30,000 companies </li></ul></ul>
  5. 5. History of Sandals <ul><li>Gordon “Butch” Stewart </li></ul><ul><ul><li>Appliance Traders </li></ul></ul><ul><ul><li>Jamaican Government </li></ul></ul><ul><li>Montego Bay </li></ul><ul><ul><li>1981 Bay Roc Hotel </li></ul></ul><ul><ul><li>First caribbean resort </li></ul></ul><ul><ul><ul><li>Jacuzzi’s </li></ul></ul></ul><ul><ul><ul><li>Satellite TV </li></ul></ul></ul><ul><ul><ul><li>Gourmet Dining </li></ul></ul></ul><ul><li>Continuous Expansion </li></ul><ul><ul><li>Sandals Royal Caribbean opens </li></ul></ul><ul><ul><ul><li>“ Stay at one, play at two” </li></ul></ul></ul>
  6. 6. History of Sandals Continued. <ul><li>Sandals 10 th Anniversary </li></ul><ul><ul><li>1,000 couples married </li></ul></ul><ul><ul><li>Largest all-inclusive resort in all of Jamaica </li></ul></ul><ul><li>Beaches Resort Introduced </li></ul><ul><ul><li>Beaches Negril, Turks and Caicos open </li></ul></ul><ul><ul><li>Intended for families </li></ul></ul>
  7. 7. History of Sandals Continued. <ul><li>Effects of 9/11 </li></ul><ul><ul><li>Lack of flight travel </li></ul></ul><ul><li>The great year of 2002 </li></ul><ul><ul><li>Sandals Grande St. Lucian </li></ul></ul><ul><ul><ul><li>Five-Star rating </li></ul></ul></ul><ul><ul><li>Crystal Award </li></ul></ul><ul><ul><ul><li>Lifetime achievement and accomplishments </li></ul></ul></ul><ul><li>Current Events </li></ul><ul><ul><li>Expansion of Beaches Negril </li></ul></ul><ul><ul><ul><li>Spa and waterpark </li></ul></ul></ul><ul><ul><li>2005 Sandals Dragon Bay is Introduced </li></ul></ul>
  8. 8. Competitors <ul><li>Direct Competitors </li></ul><ul><li>Secondary Competitors </li></ul><ul><ul><li>Radisson Hotels and Resorts </li></ul></ul><ul><ul><li>CNL Hotels & Resorts, Inc. </li></ul></ul><ul><ul><li>Host Hotels & Resorts, Inc. </li></ul></ul>
  9. 9. History of Brands <ul><li>Sandals </li></ul><ul><ul><li>For couples only </li></ul></ul><ul><ul><li>7 Sandals destinations </li></ul></ul><ul><li>Beaches Resorts </li></ul><ul><ul><li>4 Beaches destinations </li></ul></ul><ul><ul><li>For families </li></ul></ul><ul><li>Royal Plantation </li></ul><ul><ul><li>1 private island </li></ul></ul><ul><ul><li>Most exclusive and expensive </li></ul></ul><ul><li>Unique Villas </li></ul><ul><ul><li>Gated Villa Community </li></ul></ul>
  10. 10. Industry Sales $10,918 $2,380 $895 $881 2007 $9,925 $9,150 $8,436 $7,777 Disney $2,136 $1,917 $2,080 $1,913 Club Med $810 $733 $663 $600 Sandals $797 $722 $621 $561 Kerzner 2006 2005 2004 2003 Table 1: Industry Sales (in millions)
  11. 11. Industry Sales Continued.
  12. 12. Industry Market Share 5.8% Kerzner 72.4% Disney 15.8% Club Med 5.9% Sandals 2007 Table 2: 2007 Market Share Percentage Among Competitors
  13. 13. Current Newsworthy Items <ul><li>2007 World Travel Awards </li></ul><ul><ul><li>“ Caribbean’s Leading Hotel Brand” </li></ul></ul><ul><ul><li>14 th Consecutive year </li></ul></ul><ul><li>Everlasting Honeymoon </li></ul><ul><ul><li>1 free night to honeymooners </li></ul></ul><ul><li>“ Test Drive” Your Honeymoon </li></ul><ul><ul><li>Airfare and room for $99 per person </li></ul></ul><ul><ul><li>For couples getting married </li></ul></ul>
  14. 14. Forecasts for Sandals
  15. 15. Opportunities, Threats, and Future Trends to Watch For <ul><li>Opportunities </li></ul><ul><ul><li>“ WeddingMoon” and “Everlasting Honeymoon” </li></ul></ul><ul><ul><li>Not limited to one location </li></ul></ul><ul><ul><li>Strong brand image </li></ul></ul><ul><li>Threats </li></ul><ul><ul><li>Economic recession </li></ul></ul><ul><ul><li>Going Green </li></ul></ul><ul><ul><li>Increasing terrorist activity </li></ul></ul><ul><li>Future Trends to Watch For </li></ul><ul><ul><li>Internet Marketing </li></ul></ul>
  16. 16. Consumer Market Segmentation Matt Mlazovsky
  17. 17. Single Shannon & Bachelor Brett <ul><li>Age: 22-35 </li></ul><ul><li>Personal Income: $40,000 - $80,000 </li></ul><ul><li>Education: 4 year college degree </li></ul><ul><li>Social Class: Lower-Middle to Upper-Middle </li></ul><ul><li>Brand Loyalty: Spurious </li></ul><ul><li>Benefits Sought: A fun vacation with the opportunity to meet other singles </li></ul><ul><li>Product Knowledge: Moderate </li></ul>
  18. 18. Honeymoon Hannah & Hayden <ul><li>Age: 26-35 </li></ul><ul><li>Personal Income: $100,000- $120,000 dual income </li></ul><ul><li>Education: 4 year college, graduate degree </li></ul><ul><li>Social Class: Lower-Upper; Middle-Upper </li></ul><ul><li>Brand Loyalty: Strong </li></ul><ul><li>Benefits Sought: A relaxing honeymoon getaway </li></ul><ul><li>Product Knowledge: Extensive to moderate </li></ul>
  19. 19. Married Mark & Missy <ul><li>Age: 36-45 </li></ul><ul><li>Personal Income: </li></ul><ul><ul><li>$80,000 - $100,000 single $100,000 - $120,000 dual </li></ul></ul><ul><li>Education: Some College to Graduate Degree </li></ul><ul><li>Social Class: Lower-Upper; Middle-Upper </li></ul><ul><li>Brand Loyalty: Medium </li></ul><ul><li>Benefits Sought: Vacation away from the kids </li></ul><ul><li>Product Knowledge: Moderate </li></ul>
  20. 20. Family Frank & Felicity <ul><li>Age: 36-55 </li></ul><ul><li>Personal Income: $100,000 over $120,000 </li></ul><ul><li>Education: 4-year College Degree; Graduate Degree </li></ul><ul><li>Social Class: Middle-Upper; Upper-Upper </li></ul><ul><li>Brand Loyalty: Strong </li></ul><ul><li>Benefits Sought: All inclusive family vacation </li></ul><ul><li>Product Knowledge: Extensive </li></ul>
  21. 21. Anniversary Angela & Adam <ul><li>Age: 36-45 </li></ul><ul><li>Personal Income: $80,000 - over $120,000 </li></ul><ul><li>Education: 4-year College Degree; Graduate Degree </li></ul><ul><li>Social Class: Middle-Middle; Upper-Upper </li></ul><ul><li>Brand Loyalty: Medium </li></ul><ul><li>Benefits Sought: Relive their honeymoon </li></ul><ul><li>Product Knowledge: Extensive; Moderate </li></ul>
  22. 22. Retired Richard & Rhonda <ul><li>Age: 56 to 75+ </li></ul><ul><li>Personal Income: $40,000- $120,000 </li></ul><ul><li>Education: High School; College Degree </li></ul><ul><li>Social Class: Lower-Middle; Middle-Upper </li></ul><ul><li>Brand Loyalty: Strong </li></ul><ul><li>Benefits Sought: A relaxing vacation to spend time with each other and get away from the cold weather </li></ul><ul><li>Product Knowledge: Extensive </li></ul>
  23. 23. Psychographic Segmentation Sara Huelsman
  24. 24. Actualizers Self-confident. Enjoy the “finer things.” Receptive to new products and technologies. Skeptical of advertising. Frequent readers of a wide variety of publications. Fulfilleds Value knowledge. Little interest in image or prestige. Like educational and public affairs programming. Read widely and often. Achievers Image-conscious. Relatively affluent. Attracted to premium products. Average TV watchers. Experiencers Action-oriented. Follow fashions and fads. Spend much of disposable income on socializing. Buy on impulse. Listen to rock music. <ul><li>Single Shannon & Bachelor Brett </li></ul><ul><li>Honeymoon Hannah & Hayden </li></ul><ul><li>Married Mark & Missy </li></ul><ul><li>Family Frank & Felicity </li></ul><ul><li>Anniversary Angela & Adam </li></ul><ul><li>Retired Richard & Rhonda </li></ul>
  25. 25. Believers Traditional. Family oriented. Buy American. Slow to change habits. Look for bargains. Watch TV more than average. Strivers Image-conscious. Limited discretionary incomes, but carry credit balance. Spend on clothing and personal-care products. Prefer TV to reading. Makers Self-sufficient, hands on. Shop for comfort, durability, value. Unimpressed by luxuries. Read auto, home, mechanics, fishing magazines. Strugglers Restricted consumption. Concerned with security and safety. Brand loyal. Trust advertising. Watch TV often. <ul><li>Single Shannon & Bachelor Brett </li></ul><ul><li>Honeymoon Hannah & Hayden </li></ul><ul><li>Married Mark & Missy </li></ul><ul><li>Family Frank & Felicity </li></ul><ul><li>Anniversary Angela & Adam </li></ul><ul><li>Retired Richard & Rhonda </li></ul>
  26. 26. Prizm Cluster Profiles
  27. 27. Hometown Retired City Startups       Home Park Bench Seniors New Beginnings Blue-Chip Blues Pools & Patios Home Sweet Little City Urban Elders Red, White & Blues White Picket Fences New Empty Nests Brite Lites, Back Country Folks American Classics Big Sky Families American Dreams Executive Suites Families Old Milltowns Old Glories New Homesteaders Fast-Track Families Second City Elite Cul-de-Sacs Shakers Golden Ponds Multi-Culti Mosaic Boomtown Singles Kids & Movers and Low-Rise Living Suburban Pioneers Urban Achievers Beltway Boomers Big Fish, Small Pond Big City Blues Shotguns & Pickups Up-and-Comers Upward Bound Upper Crust Bedrock America Heartlanders Greenbelt Sport Bohemian Mix Money & Brains Family Thrifts Sunset City Blues Young Influentials Young Digerati Country Squires Crossroads Villagers Close-in Couples Traditional Times Mayberry-ville Urban Gold Coast Managers Mobility Blues Domestic Duos Middleburg Suburban Sprawl Winners Circle Young & Rustic Simple Pleasures The Cosmopolitans God’s Country Blue Blood Estates           Quintile 5 Quintile 4 Quintile 3 Quintile 2 Quintile 1
  28. 28. Single Shannon & Bachelor Brett <ul><ul><li>Urban Achievers </li></ul></ul><ul><li>Y2 Young Achievers </li></ul><ul><li>LowerMid Younger Singles </li></ul><ul><li>Urban Renters </li></ul><ul><li>Age <35 </li></ul><ul><li>White Collar, Services </li></ul><ul><li>High School/College </li></ul><ul><li>Go to movies, shop, Fitness Magazine </li></ul>
  29. 29. Honeymoon Hannah & Hayden <ul><li>Young Digerati </li></ul><ul><li>Y2 Young Achievers </li></ul><ul><li>Upscale Middle Age Mix </li></ul><ul><li>Urban Mix </li></ul><ul><li>25-44 </li></ul><ul><li>Professional </li></ul><ul><li>College Graduate+ </li></ul><ul><li>Cell phones, DVD collection, Wall Street Journal </li></ul>
  30. 30. Married Mark & Missy <ul><li>Beltway Boomers </li></ul><ul><li>F2 Young Accumulators </li></ul><ul><li>Upper Middle, Middle Age Families </li></ul><ul><li>Suburban Homeowners </li></ul><ul><li>35-64 </li></ul><ul><li>Professional, White Collar </li></ul><ul><li>High School/College </li></ul><ul><li>Go to H.S. sporting events, eat health foods, Business Week magazine </li></ul>
  31. 31. Family Frank & Felicity <ul><li>Blue Blood Estates </li></ul><ul><li>F1 Accumulated Wealth </li></ul><ul><li>Wealthy Middle Age Families </li></ul><ul><li>Suburban Homeowners </li></ul><ul><li>35-64 </li></ul><ul><li>Professional </li></ul><ul><li>College Graduate + </li></ul><ul><li>Fast food, Fortune magazine, golf vacations </li></ul>
  32. 32. Anniversary Angela & Adam <ul><li>Country Squires </li></ul><ul><li>F1 Accumulated Wealth </li></ul><ul><li>Wealthy Middle Age Families </li></ul><ul><li>Town Homeowners </li></ul><ul><li>35-64 </li></ul><ul><li>Professional </li></ul><ul><li>College Graduate + </li></ul><ul><li>Internet, USA Today, The Disney Channel TV </li></ul>
  33. 33. Retired Richard & Rhonda <ul><li>Traditional Times </li></ul><ul><li>M2 Conservative Classics </li></ul><ul><li>Midscale Older Single, Couples </li></ul><ul><li>Town/Rural Homeowners </li></ul><ul><li>55+ </li></ul><ul><li>White & Blue Collar, Farming </li></ul><ul><li>High School/College </li></ul><ul><li>Bob Evans, Hallmark Hall of Fame TV, Country Home magazine </li></ul>
  34. 34. Consumer Benefit Segmentation
  35. 35. High Low Low Luxuriousness High  Kerzner  CNL Hotels & Resorts, Inc  Host Hotels & Resorts  Club Med  Sandals  Beaches Price Luxuriousness Walt Disney Parks & Resorts   Radisson Hotels & Resorts Price
  36. 36. 5     2 5 Host 2 3 2     CNL       3   Radisson 1 5 1   2 Kerzner 4 2 4 4 3 Club Med   4 5 1 4 Disney 3 1 3 5 1 Sandals Expensive Relaxing/ Calming Experience Exclusivity Family Friendly Inclusive BRAND BENEFITS OFFERED BY BRAND  
  37. 37. 3 1 4 5 2 Retired Richard & Rhonda 3 1 4 5 2 Anniversary Angela & Adam 5 4 3 1 2 Family Frank & Felicity 3 2 5 1 4 Married Mark & Missy 3 1 4 5 2 Honeymoon Hannah & Hayden 4 1 3 5 2 Single Shannon & Bachelor Brett Expensive Relaxing/Calming Experience Exclusivity Family Friendly Inclusive MARKET SEGMENT BENEFITS SOUGHT BY MARKET SEGMENT  
  38. 38. Target Market Segmentation Jill Kuefner
  39. 39. TARGET MARKET DISCOVERY GRID BENEFITS SOUGHT BY TARGET MARKET   BRAND and TARGET MARKET Inclusive Family Friendly Exclusivity Relaxing/ Calming Experience Expensive Brand Sandals 1 5 3 1 3 Target Market Honeymoon Hannah & Hayden 2 5 4 1 3
  40. 40. Market Segment Overlap Sandals All-Inclusive Vacation Package Married Mark & Missy 6% Single Shannon & Bachelor Brett 2% Family Frank & Felicity 4% Retired Richard & Rhonda 11% Anniversary Angela & Adam 15% Honeymoon Hannah & Hayden 62%
  41. 41. An all-inclusive honeymoon vacation A relaxing and calming time to relieve post- wedding stress A perfect place to honeymoon with minimal planning needed at this romantic resort Hannah and Hayden will be able to de-stress, relax, and spend some quality time with each other after the wedding The Product Functional Benefit Practical Benefit Emotional Payoff The Benefit Chain All-Inclusive Vacation Package Honeymoon Hannah and Hayden
  42. 42. Benefit Segmentation SEGMENT NAME Single Shannon & Bachelor Brett Honeymoon Hannah & Hayden Married Mark & Missy Family Frank & Felicity Principle Benefit Sought Relaxing/ Calming Experience Relaxing/ Calming Experience Want a vacation away from the kids All-inclusive family vacation Demographic Strengths Young Singles Young, newly married couples Families Families Special Behavioral Characteristics Outgoing and enjoy being in a crowd of people Want a stress-free wedding and honeymoon Want to make kids happy Want to make kids happy Brands Disproportionately Favored Host, Radisson, Any singles vacations/cruises Club Med, Kerzner, CNL Walt Disney World Walt Disney World, Beaches Personality Characteristics Highly Sociable Focusing on love & a bright, successful future Laid back Image conscious, Like to have fun Life Style Characteristics Active Active Traditional, Value-Oriented Active, Quality-Oriented Life’s Motto “ Work hard, play harder” “ Life’s best moments are made in the company of loved ones” “ Family makes a house a home” “ Do it for the kids”
  43. 43. Benefit Segmentation Continued. SEGMENT NAME Anniversary Angela & Adam Retired Richard & Rhonda Principle Benefit Sought Relive their honeymoon Relaxing/ Calming Experience Demographic Strengths Middle Age Couples, Small Families Older Couples, Retirees with Family Ties Special Behavioral Characteristics Want to relax without having to worry about kids Want to revitalize their marriage, enjoy retirement Brands Disproportionately Favored Sandals, Club Med, Kerzner Club Med, Kerzner, Radisson Personality Characteristics Prefer to be active, don’t waste time Very traditional in their outlook on life Life Style Characteristics Active, Family Values Traditional, Value-Oriented Life’s Motto “ Life doesn’t slow down, so you better speed up” “ I may walk slow, but I never turn around”
  44. 44. Market Size and Sales Potential and CDP Model Stephanie Johnson
  45. 45. Total Market Size <ul><li>Market Size= 28,878,967 (males and females between the age of 21-75) </li></ul>
  46. 46. Market Segmentation Sizes <ul><li>Honeymoon Hannah & Hayden = 62% </li></ul><ul><li>Anniversary Angela & Adam = 15% </li></ul><ul><li>Retired Richard & Rhonda = 11% </li></ul><ul><li>Married Mark & Missy = 6% </li></ul><ul><li>Family Frank & Felicity = 4% </li></ul><ul><li>Single Shannon & Bachelor Brett = 2% </li></ul><ul><li>Total= 100% </li></ul>
  47. 47. Target Market <ul><li>Target Market: “Honeymoon Hannah and Hayden”= 25,224,878 people </li></ul><ul><li>Brand: Sandals Resorts All-Inclusive Honeymoon Package </li></ul>
  48. 48. Target Market Sales Potential <ul><li>Non-Users : 90% 22,702,390 </li></ul><ul><li>(Non-users may not go on a honeymoon, or may choose another destination or resort) </li></ul><ul><li>Users : (10%) 2,522,467 </li></ul><ul><li> (Sandals Market Share) .059 </li></ul><ul><li>X (Average Price Per Honeymoon Stay) $5,500 </li></ul><ul><li>Dollar Sales Per Year = $818,540,541 </li></ul><ul><li>$818,540,541 is the Total Sales Potential for Target Market “Honeymoon Hannah & Hayden” in the U.S. market only </li></ul>
  49. 49. Consumer Decision Model Honeymoon Hannah and Hayden
  50. 50. Consumer Problems and Solutions Pat Hyland
  51. 51. Exposure <ul><li>Honeymoon Hannah and Hayden are so busy with work and planning their wedding, they don’t watch a lot of TV, and therefore, don’t see Sandals advertisements on TV </li></ul><ul><li>Sandals only has a few ads online and these are only accessed when the consumer is online. </li></ul><ul><li>There are not a lot of advertisements on billboards or on the radio </li></ul>
  52. 52. Situation <ul><li>Due to their temporary strained budget because of the planning the wedding, they have less disposable income to spend on their honeymoon </li></ul><ul><li>They would prefer to go on a honeymoon closer to them as opposed to flying out of the country </li></ul>
  53. 53. Consumer Resources <ul><li>Many couples opt to save money rather than go on a honeymoon </li></ul><ul><li>Many couples decide on a cheaper honeymoon destination instead, perhaps one that doesn’t require airfare </li></ul><ul><li>Honeymoon Hannah and Hayden do not have the time to get away from work due to their hectic schedules </li></ul>
  54. 54. Marketing Mix Solutions
  55. 55. Exposure <ul><li>Promotion: Distribute catalog/pamphlet on Sandals to locations that wedding planners and couples often frequent when planning a wedding </li></ul><ul><ul><li>Pros </li></ul></ul><ul><ul><ul><li>Brides are excited and positive moods </li></ul></ul></ul><ul><ul><ul><li>Point-of-purchase displays </li></ul></ul></ul><ul><ul><ul><li>Expansion in media = better reach of target market </li></ul></ul></ul>
  56. 56. Exposure <ul><li>Promotion: Distribute catalog/pamphlet on Sandals to locations that wedding planners and couples often frequent when planning a wedding </li></ul><ul><ul><li>Cons </li></ul></ul><ul><ul><ul><li>There is no way to enforce other companies to comply with Sandals requests. </li></ul></ul></ul><ul><ul><ul><li>The brides may pick up a pamphlet, put it into her purse or wedding folder, and forget to look at it again. </li></ul></ul></ul>
  57. 57. Exposure <ul><li>Promotion: Attend more Wedding Expo’s </li></ul><ul><ul><li>Pros </li></ul></ul><ul><ul><ul><li>Capture attention of bride and groom </li></ul></ul></ul><ul><ul><ul><li>People can see visually what Sandals has to offer </li></ul></ul></ul><ul><ul><ul><li>Can hear feedback from couples </li></ul></ul></ul>
  58. 58. Exposure <ul><li>Promotion: Attend more Wedding Expo’s </li></ul><ul><ul><li>Cons </li></ul></ul><ul><ul><ul><li>May be overlooked because of big number of vendors </li></ul></ul></ul><ul><ul><ul><li>Costly, expensive </li></ul></ul></ul>
  59. 59. Exposure <ul><li>*Promotion : Talk with producers on the Style Channel to see if an episode of “Who’s Wedding is it Anyways?” can be featured at a Sandals Resort. </li></ul><ul><ul><li>Pros </li></ul></ul><ul><ul><ul><li>Can catch target market </li></ul></ul></ul><ul><ul><ul><li>The Brides-to-be can see what the experience is like at Sandals </li></ul></ul></ul><ul><ul><ul><li>May cause retention for those who see episode </li></ul></ul></ul>
  60. 60. Exposure <ul><li>* Promotion : Talk with producers on the Style Channel to see if an episode of “Who’s Wedding is it Anyways?” can be featured at a Sandals Resort </li></ul><ul><ul><li>Cons </li></ul></ul><ul><ul><ul><li>The taping of the episode may disrupt the experience of the couples who are vacationing at the resort during that time </li></ul></ul></ul><ul><ul><ul><li>Costly </li></ul></ul></ul><ul><ul><ul><li>The producers of the episode may hurt Sandals reputation </li></ul></ul></ul>
  61. 61. Situation <ul><li>Place: New outlets within the United States </li></ul><ul><ul><li>Pros </li></ul></ul><ul><ul><ul><li>The flights to resorts within the United States would save money for those with a limited budget </li></ul></ul></ul><ul><ul><ul><li>Honeymoon couples may feel better about traveling to places that are still considered to be under United States jurisdiction </li></ul></ul></ul><ul><ul><ul><li>Proximity </li></ul></ul></ul>
  62. 62. Situation <ul><li>Place: New outlets within the United States </li></ul><ul><ul><li>Cons </li></ul></ul><ul><ul><ul><li>Large risk that can result in loss of money </li></ul></ul></ul><ul><ul><ul><li>Moving into the states may damage image </li></ul></ul></ul><ul><ul><ul><li>No tropical areas in the states </li></ul></ul></ul>
  63. 63. Situation <ul><li>Price: Clearly advertise on the Sandals website and commercials what times of the year are the cheapest for a couple to vacation </li></ul><ul><ul><li>Pros </li></ul></ul><ul><ul><ul><li>Expand profits during slow times </li></ul></ul></ul><ul><ul><ul><li>It gives the couple more time to save money and the option of taking a later honeymoon </li></ul></ul></ul><ul><ul><ul><li>Will improve the pre-purchase evaluation of vacation packages </li></ul></ul></ul>
  64. 64. Situation <ul><li>Price: Clearly advertise on the Sandals website and commercials what times of the year are the cheapest for a couple to vacation </li></ul><ul><ul><li>Cons </li></ul></ul><ul><ul><ul><li>Couples may miss substitute lower price for amenities </li></ul></ul></ul><ul><ul><ul><li>This could ultimately hurt Sandals profits in the long run </li></ul></ul></ul>
  65. 65. Situation <ul><li>* Promotion : Develop a nationwide contest for 10 couples to win a 5 day honeymoon vacation at any of the Sandals resorts by sharing their engagement story </li></ul><ul><ul><li>Pros </li></ul></ul><ul><ul><ul><li>Viral marketing, ‘buzz’, word-of-mouth </li></ul></ul></ul><ul><ul><ul><li>Couples who previously thought they would never be able to experience the magical honeymoon vacation at Sandals now have that chance by simply sharing their story </li></ul></ul></ul>
  66. 66. Situation <ul><li>* Promotion : Develop a nationwide contest for 10 couples to win a 5 day honeymoon vacation at any of the Sandals resorts by sharing their engagement story </li></ul><ul><ul><li>Cons </li></ul></ul><ul><ul><ul><li>Giving away this many free vacations would be an expensive promotion for Sandals </li></ul></ul></ul><ul><ul><ul><li>Increase in employment </li></ul></ul></ul><ul><ul><ul><li>Time could be used elsewhere to advertise directly to the consumer </li></ul></ul></ul>
  67. 67. Consumer Resources <ul><li>Price: Special honeymoon deals for long weekends </li></ul><ul><ul><li>Pros </li></ul></ul><ul><ul><ul><li>Great opportunity for couples who feel like they cannot sacrifice a lot of time away from work </li></ul></ul></ul><ul><ul><ul><li>The reduced price will allow more couples to have a honeymoon </li></ul></ul></ul><ul><ul><ul><li>May cause repurchase and loyal consumers </li></ul></ul></ul>
  68. 68. Consumer Resources <ul><li>Price: Special honeymoon deals for long weekends </li></ul><ul><ul><li>Cons </li></ul></ul><ul><ul><ul><li>Couples may think rip-off </li></ul></ul></ul><ul><ul><ul><li>Overbooked rooms which can cause negative feedback and word-of-mouth </li></ul></ul></ul>
  69. 69. Consumer Resources <ul><li>Price: Partnership with airline to offer lower prices to Sandals locations </li></ul><ul><ul><li>Pros </li></ul></ul><ul><ul><ul><li>Lower price, more appealing </li></ul></ul></ul><ul><ul><ul><li>Convenient for couples </li></ul></ul></ul><ul><ul><ul><li>Couples will be more inclined to honeymoon at Sandals </li></ul></ul></ul>
  70. 70. Consumer Resources <ul><li>Price: Partnership with airline to offer lower prices to Sandals locations </li></ul><ul><ul><li>Cons </li></ul></ul><ul><ul><ul><li>Couples who have frequent flyer miles with another airline may be discouraged to go to Sandals. </li></ul></ul></ul><ul><ul><ul><li>Couples might avoid traveling to Sandals because the plane ticket prices are probably constant and non-negotiable. </li></ul></ul></ul>
  71. 71. Consumer Resources <ul><li>* Promotion : Establish a new eye-catching advertisement that shows not only the emotional value of honeymooning at a Sandals resort, but also how prices can be a lot lower then one would think </li></ul><ul><ul><li>Pros </li></ul></ul><ul><ul><ul><li>Emotional value </li></ul></ul></ul><ul><ul><ul><li>This will aid in the couples search for information about Sandals because pricing information is showed to them directly in the advertisement. </li></ul></ul></ul><ul><ul><ul><li>Will clear misconceptions about Sandals </li></ul></ul></ul>
  72. 72. Consumer Resources <ul><li>* Promotion : Establish a new eye-catching advertisement that shows not only the emotional value of honeymooning at a Sandals resort, but also how prices can be a lot lower then one would think </li></ul><ul><ul><li>Cons </li></ul></ul><ul><ul><ul><li>Advertising lower prices may lower the perceived status and prestige </li></ul></ul></ul><ul><ul><ul><li>Not all couples will agree that the emotional level of satisfaction will outweigh the financial dissatisfaction </li></ul></ul></ul>
  73. 73. Strategic Opportunity Mix
  74. 74. Strategic Opportunity Mix Diversification Strategy Marketing research Market segmentation Product differentiation Mergers, acquisitions, joint ventures Highest risk “ Diversification” Present Product New Product Present Market New Market Market Penetration Strategy Marketing research Product differentiation Gain market share Lowest risk “ Product Positioning” Product Development Strategy Marketing research Product development Product differentiation Medium risk “ Flanker Brand” Market Development Strategy Marketing research Market segmentation Product differentiation Heavy promotion Medium risk “ Market Segmentation”
  75. 75. Questions??

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