This document provides an analysis for expanding the Impiana brand globally or regionally. It begins with background on Impiana Hotels & Resorts, which currently owns and manages hotels and resorts across Malaysia and Thailand. An analysis is then presented on the global hotel industry environment, and potential target regions/countries for expansion, including comparisons of Thailand, Vietnam, and Indonesia. The document outlines strategies for luxury market segmentation, positioning, and entry, addressing key challenges. It aims to establish Impiana as a global luxury boutique brand through regional expansion and developing country-specific marketing programs.

1. GLOBAL BRANDING

2. 1. Executive Summary
2. Background:
i. The Business
ii. The Brand to be Globalise/Regionalise
3. Analysis:
i. Global Environment
ii. Regional
iii. Potential Countries Comparison
iv. Destination Market
4. Strategies:
i. Luxury Segmentation & Positioning
ii. Luxury Market Entry
iii. Key Challenges
iv. Global Brand Objectives
v. Brand Pyramid
vi. Country Marketing Programmes
5. Budget and Schedule
6. Control Methods
7. Conclusion

3. 1. Executive Summary
1.
2.
3.
4.
5.
Impiana Hotels & Resorts is a Malaysian home grown
group established in 1994 by its chairman Datuk Seri
Ismail Farouk Abdullah.
The group currently owned and/or managed five in
Malaysia and three in Thailand
Created it’s latest business hotel, the Premiera brand
located at Menara Mara
Impiana is not yet truly a global brand in terms of
physical properties presence but a brand which known
globally in the travel and hospitality industry.
Thailand, in particular Phuket, is chosen as the
destination to regionalize the brand for the luxury
segment

4. 2. Background
- The Business
1.
Impiana Hotels & Resorts Management Sdn Bhd (IHRM), is Asean’s
leading luxury boutique and award winning 4-Star collection of hotels,
resorts and spas.
2.
The group first property was the Subang International Airport Hotel in
the 1980s. Today, the properties serves mid to top-tier travellers and is
defining a new standard in the hospitality industry.
3.
Under the brand name IMPIANA, the Group manages and owns three
city business hotels & a resort in Malaysia, two resorts (Patong, Phuket &
Koh Samui) and a Private Villas (Kata Noi, Phuket) in Thailand. The city
business hotels are set in premium business locations and the resorts, in
spectacular beach front.
4.
Impiana KLCC voted as “Top Customer Choice 2012 in Malaysia” in
HotelClub Hotel Award 2012

5. 2. Background
- The Business
Impiana Business Hotels
Kuala
Lumpur
Ipoh
• Impiana KLCC
• Premiera Hotel
• Impiana Ipoh

6. 2. Background
- The Business
Impiana Resorts & Villas
Cherating
Phuket
Koh
Samui
• Impiana Resort
• Impiana Resort Patong
• Impiana Private Villas Kata
Noi
• Impiana Resort Chaweng
Noh

7. 2. Background
- The Business
1.
The Group owns an award winning 5-star spa, namely Swasana
Spa. Swasana Spa well acclaimed plush wellness retreat
specializing in Asia’s treasure trove of spices to create a holistic
tranquil body and mind experience for guests.
2.
Swasana Spa are located in:
1. Impiana KLCC Hotel Kuala Lumpur,
2. Impiana Resort Chaweng Noi
3. Impiana Resort Patong

8. 2. Background
- The Business
1.
The group previously provided hotel development
consultancy services to 3 hotels in Putra Jaya until the
government decided not to proceed with the hotel
construction due to Asia Financial Crisis.
2.
The group also provided services that was the completion of
one hotel in Port Dickson and Kuala Lumpur that were
subsequently taken back by the property owners
3.
Hotel management team comprises of foreigners and locals,
led by the brand owner himself whose career began in the
hotel industry before becoming a businessman

9. 2. Background
- The Brand to Be Globalise / Regionalise
1.
The brand to be regionalized is IMPIANA a name derived from the Malay word
“Impian” which means dreams.
2.
Its first resort property is located in Cherating, Kuantan and hence it adopted a blue
color shell logo. The “shell” blue logo was changed to gold color in 2004 to reflect an
image of upmarket or premium for its city business hotels and resorts.
3.
As Impiana’s business is in hotels, resorts and spas, its services levels as well as its
properties offerings in terms of facilities, décor, and comfort are critical to its brand.
4.
Impiana first regional venture was the acquisition of a 2 star resort in 1995 that
subsequently was re-branded to be a 4 star resort property

10. 3. Analysis
- Global Environmental
Gannon and Johnson (1995) suggest expansion strategies of such global
chains falls into three main groups:
1. Asian hotel companies had relatively few properties
2. European Chains - more international than Asian
3. American Chains - least international
Internationalisation and size are not related. Some hotel chains have
decided to be represented outside their home country as a matter of
deliberate policy and others have concentrated on their home market.
Hotel Development in Southeast Asia and Indo-China / Aug 2000
http://www.hotelonline.com proposition:
1. Hotel chain penetration will be greatest by Asian chains, followed by
European, and then American.
2. Hotel chain market entry is most likely in those countries that provide
the highest potential return at the least perceived risk.
3. Hotel market entry mode will reflect the perceived level of return and
risk.

11. 3. Analysis
- Global Environmental
However, there is evidence to suggest that hotel companies do not rely
solely on these general criteria but take account of other specific factors.
For instance, hotels do not solely rely on internally generated demand:
1. Occupancies may be greatly influenced by international travel
behaviour.
2. It may also be the case that criteria used to determine general
market potential, such as market receptivity, are not deemed
significant for hotel market entry.
Dunning and Kundu (1995) identify a number of industry specific
variables such as size and nature of host city, availability of appropriate
inputs such as labour supply, and economies of supply.
Ref: Dunning, J.H. and Kundu, S.K. (1995) The Internationalisation of the Hotel
Industry, Management International Review, 35:2, 101 - 133 Dunning, J.H. and
McQueen, M. (1982) Transnational Corporations in International Tourism, UNTC:
New York

12. 3. Analysis
- Global Environmental
Other studies have adopted a qualitative approach to entry mode choice
by hotel chains:
1. Saunders and Renaghan (1992) investigated hotel development by
interviewing 28 hospitality executives working in Southeast Asia.
• They stress the potential importance of socio-cultural
difference.
• In their view, it is this factor that will ultimately ensure the success
or failure of an American or European chain's market entry
strategy.
2. Zhao and Olsen (1997) also identified socio-cultural concern as one of
eleven factors influencing entry mode choice.
• Other external (i.e. country specific) factors were political,
economic, technological, and ecological.
• They also found some factors, which they described as task
environmental factors, namely competitors, customer, property
location, partner characteristics and human factors.

13. 3. Analysis
- Regional
Hotel chains have to make a basic decision as to whether to have
representation in a country or not. There are a number of ways for
countries to be indexed in terms of their potential for market entry such
as The MSU-CIBER Index.
China emerges as the most attractive country for hotel entry. Korea is an attractive country for
general investment, it is less attractive to hotel chains; whereas Thailand is more attractive to
hotel entry than general investors. Indonesia has the least potential in both cases.
MSU-CIBER = Michigan State University – Centre for International Business Education and Research

14. 3. Analysis
- Regional
Relationship between Entry Mode Choice and Country Risk and Return
High
RETURN
Low
Hong Kong
Malaysia
1 franchised
29 contracts
Singapore
South Korea
16 contracts
China
Thailand
1 owned
2 joint venture
3 franchised
36 contracts
India
Philippines
Indonesia
27 franchised
28 contracts
Low
RISK
High
• Management contracts are by far and away the most dominant form of entry.
• Franchising is significant in those countries that have the highest risk and
lowest return, which may reflect this mode's characteristics.

15. 3. Analysis
- Potential Countries Comparison
THAILAND
VIETNAM
INDONESIA
Population
66.72 million
87.84 million
73.6 million
GDP per capita
income
2698.41 USD
757.40 USD
1206.99 USD
Religion &
Cultural Forces
• 89% Thai/Thai • 86.2% Kinh
Chinese
(Viet)
• 34.2%
Northeastern
(Isan)
• 33.7% Central
• 18.8% Northern
• 14.0% Thai
Chinese
• 13.3% Southern
• 11% Other (incl.
Malay, Khmer,
“Hill tribes”)
•
•
•
•
•
•
•
•
1.9% Tay
1.7% Tai
1.5% Muong
1.4% Khmer
Krom
1.1% Hoa
1.1% Nung
1% Hmong
4.1% Others

16. 3. Analysis
- Potential Countries Comparison
THAILAND
Political
Stability or Risk
Crime Index
Safety Index
International
connectedness
(by major
airlines)
Language
Climate/
Tourist Months
Currency
Currency
Exchange Rate
1MYR
VIETNAM
INDONESIA
7.0
High Risk
4.3
Moderate Risk
6.8
Moderate Risk
40.53
59.47
53.02
46.98
40.49
59.51
Thai Airlines
Vietnam Airlines
Garuda Airlines
Good
Low
Fair
Thai
Vietnamese
Indonesian
Peak: Nov -Apr
Low: Jul-Aug
Peak: Jul-Aug,
Low: Nov-Mar
Peak: Dec-Jan &
Jul-Sep
Low: Feb-Jun
Baht
Dong
Rupiah
9.44334 THB
6,885.05 VND
3,197.63 IDR

17. 3. Analysis
- Potential Countries Comparison
THAILAND
Slogan
Number of
tourists between
2011 to 2012
Tourist spent/
day
Tourist length of
stay
Country Major
attractions
VIETNAM
INDONESIA
Amazing
Thailand
Vietnam
Timeless Charm
Wonderful
Indonesia
Increased by
16%
(22 million)
Increased by
13%
(6.84 million)
Increased by
9.24%
(7.65 million)
50 USD
105 USD
140 USD
9
6
3
Bangkok, Pattaya,
Chiang Mai, River
Kwai, Phuket
Island, Koh Samui
Island and Krabi.
Ho Chi Minh City,
Dalat, Nha Trang,
Danang, Hoi An,
Hue, Hanoi and
Halong Bay
Jakarta, Lake Toba,
Bali, Medan, Ubud,
Kuta, Seminyak,
Yogjakarta, Nusa
Dua, Bandung,
Medan

18. 3. Analysis
- Impiana Regional Expension
—
—
—
—
—
—
—
2012 is the 5th year since the Global Financial Crisis (“GFC”) began
Although prices of hotel properties in many locations in Europe and
the USA have fallen, they remain unattractive to Impiana.
Impiana is concerned with the rate of return on its investment,
inability to manage faraway properties, declining global demand
which affect occupancy and other hotel revenue
Manpower issues- although most global countries face high
unemployment, the right talent is difficult to recruit.
As a result of the GFC, capital is still difficult to raise to partly fund
the new hotel
The political stability is uncertain if unemployment rate continue to
rise
Hence, Impiana chooses to expand in a growing market, ie. Phuket

19. 3. Analysis
- Destination Market : Phuket, Thailand
1.
Population of 503,000 million (as of 2013) local Thais.
2.
Highest per capital income in country
3.
Tourists growth in Phuket impressive over last 20 years (see chart
___)
4.
Tourist spent in dollars and length of stay highest in the region
(see chart ___)
5.
Religion & Culture: the majority of the population is Buddhist, but
there is a significant number of Muslims (30%). Buddhists –
moderate, caring, “sabai-sabai”, hospitable…
6.
4Ss attractions, liberal and tolerant government policies

20. 3. Analysis
- Destination Market : Phuket, Thailand
8.
Tourist arrivals in Phuket grew__% over the last __
years compared to other destinations in Thailand
(see chart ___)
9.
Despite no of rooms grew by___ over __ years,
occupancy remains attractive (see chart__)
10.
Average room rates for 5 star hotels and resorts
have grown from __ in 20XX to ___ in 20XX (see
chart__)
11.
Large pool of well-trained employees in the
industry

21. 3. Analysis
- Destination Market : Phuket, Thailand

22. Phuket continues
to be an attractive
destination after
Tsunami because
it is politically
stable and
relatively safe
from compared to
Bali.
Phuket is well
known compared
to resorts in
Vietnam which still
lack depth and
variety in terms of
entertainment,
shopping and
services.

23. 3. Analysis
- Destination Market : Phuket, Thailand

24. 3. Analysis
- Destination Market : Phuket, Thailand
Phuket has a wider range of liberal attractions compared
to Bali, offer fun to all segments of tourists.
Phuket is a strong brand known worldwide.

25. 3. Analysis
- Destination Market : Phuket, Thailand
Stronger growth in Phuket: 2010: 30% cf 2010 > 44% cf 2009
For Bali : YTD May 2012 growth rate of 8% year-on-year
Bali infrastructure problems have slowed its growth.

26. 3. Analysis
- Destination Market : Phuket, Thailand
Infrastructure
development
plays a very
important role in
making a
destination
attractive to
tourists.
The on-going
projects and
projects
proposed have a
direct positive
impact on the
tourists, thus
making Phuket
even more
accessible.
The value / size
of the projects
signify the
growing
importance of
Phuket as a
tourist
destination

27. 3. Analysis
- Destination Market : Phuket, Thailand
The GFC has affected /
reduced many tourists
from European
countries
China accounted for
22% of tourist arrivals
in Phuket.
There are 1,020,000
millionaires in China
(US$1.6M up) and
63,500 “super-rich”
Chinese (US$16M)
The average Chinese
millionaire is 39 years
old, and 60% of them
are male, 50% are
business owners, 20%
are professional
investors, and 15%
each are real estate
investors and highlevel senior executives.

28. Phuket
International
Airport,
gateway to
Phuket Island, a
paradise for
tourists in the
southern part of
Thailand.
10 airlines are
on service,
27,000 flights
and 12,000
tons of cargo
per year are
handled at the
airport.
Direct flights
from Shanghai,
Beijing,
Guangzhou,
Chengdu to
Phuket

29. ARR in the luxury
segment held on
well in 2011 / 2012
and outperformed
the overall market
despite GFC
and fewer arrivals
from Europe.
Hence it seems the
luxury segment is
not that price
sensitive given the
limited number of
rooms in this
segment
( 9% of all
segment rooms
supply).
> This is the
segment targeted
by Impiana

30. 3. Analysis
- Destination Market : Phuket, Thailand
A healthy
growth rate of
9% between
2013-2016 .
However, the
luxury and
upscale
segment
account for 29%
and 9%
respectively only
It allows Impiana
an entry into the
luxury segment
of ARR between
US$300-US$400,
boutique resort
with 50 rooms,
costing some US
$400K (RM1.2M)
per room

31. 4. Strategies
- Luxury Segmentation & Positioning
Physical Positioning
Impiana aims to differentiate from its competitors by offering a smart mix of
conventional with minimalist cum modern in its designs and finishings used
for rooms, public areas, food & beverage outlets.
Each suite has its own spa and massage private rooms, and opens to a private
pool that is also connected to a larger pool should the guests like to swim full
length.
In-house dinning served from its own private kitchen that also house a
personal cigar and wine cellar. The suite is technologically advanced and
operable using tablet.

32. 4. Strategies
- Luxury Segmentation & Positioning
Perceptual Positioning
Excellent service is a subjective or relative matter. Impiana aims to
set a new bar for service standards.
All service staff (including an assigned butler on call 24 hours)
will be trained to serve every guests are royalty. The food and
beverage served will be of the highest quality (and famous luxury
brands). A selection of wines.
The suites will also be “oxygenised” to give it constant
freshness. Reserved the same suite for returning guests.

33. 4. Strategies
- Luxury Market Entry
The Entry Strategy is based on the following decisions:
1.
2.
3.
4.
Target Product – Product designed to redefine the
meaning of luxury resort and spa experiences
Target Market - Premium guests- individuals or
small corporate groups with a minimum stay of 3
nights and spend of US$300- US$400 per room night
Goals Of The Target Market - Guests seeking a
different hospitality experiences whether on holiday
and/or business
Mode Of Entry – Fully owned property for brand
and capital appreciation, with a hotel management
contract for operating performance delivery,
flexibility & control

34. 4. Strategies
- Luxury Market Entry
5.
6.
7.
Time Of Entry – Decision to enter is made after
qualitative and quantitative factors are met and
property can deliver brand promise. Target
opening early Q3 to target year end holiday
travelers (Q4) and corporate meetings at start of
new year (Q1)
Marketing-mix Plan - Pre-determined guest-mix
in terms of country of origin, Rooms revenue mix
and F&B spent
Performance Control Check – comparison of
marketing mix vs industry vs comparable
properties, qualitative and quantitative controls
(see PPT #14.)

35. 4. Strategies
- Key Challenges - Uncertainties
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
World Economies
Stability of Selected Country Political & Economy
Tourist Arrivals
Construction Cost & Completion Control
Funding availability - Capex, Pre- and Post-opening
Market-Mix, Revenue Forecast
Culture, Religion, Financial and Taxation system
Staff of different backgrounds, experience, core values
Recruitment & Training
Service Standards
Reshaping service delivery, sales & marketing mindsets
Delivering the brand physical and perceptual
positioning

36. 4. Strategies
- Global Brand Objectives
—
The company’s business depends on local and foreign
guests. Expanding globally allows it to enjoy economies
of scale, attract foreign and local talent (who are attracted
to chain properties) and diversify its business risks
—
The brand has to be recognized not by its logo but a clear
brand promise and tagline which are currently missing.
Previously, the brand promise and tag line was “Rest
Assured. Always”.
—
Rest Assured is a promise to the guest that no matter
what their needs are (sound sleep, fully equipped
meeting facilities, high service standards, delicious meals,
wide variety of beverages etc), they can be assured the
needs will be met always. It is fulfilling, coherent and
consistent delivery aimed at all points of guests contacts

37. 4. Strategies
- Brand Pyramid
The 5 steps to making the Impiana brand strong:
Likelihood to attract and
retain/repeat guests
HIGH
LOW
Bonding
Regular personalized follow up even after
guests checked out
Advantage
Offers product and emotional benefits –as
per physical and perceptual positioning
Performance
Strict measure of actual delivery. Extensive
use of testimonies of highly satisfied guests
and repeat guests
Relevance
Communicate only those who can afford to
indulge without asking price as luxury is
assured
Presence
Communicate only those who can afford to
indulge without asking price as luxury is
assured

38. 4. Strategies
- Country Marketing Programmes
Programs
PrePostOpening Opening
International Trade Shows & Travel Agents
Y
Y
Local (Thailand) Trade Shows & Travel Agents
Y
Y
Local Press Releases, Advertisements , Bill Boards
Y
Y
Foreign Advertisements
Y
Y
Guess & Be My Guests -Quiz on Air
Y
Y
Hotel Intimate Joy Hunt
Y
Hotel Opening Cocktails
Y
Corporate Sign Up Programs
Y
Happy Business Happy Family Membership
Y
Online Challenge Deals
Y

39. 5. Budget & Schedule
ACTIVITY
BUDGET
BUDGET
RM
(MIL)
Feasibility
1.0
Consultancy
5.5
Land Acquisition
20.0
Construction
50.0
FFOE
6.0
Pre-marketing
2.5
Pre-opening
5.0
Operating
5.0
MONTH (M)
1-6
7-12
13-18
19-24
25-28
29-33
34-36
36-42

40. 6. Control Methods - Quantitative
ACTIVITY
BUDGET
BUDGET
RM
(MIL)
MAJOR COST COMPONENTS TO
CONTROL
(sub-budgets)
Feasibility
1.0
Internal, experts, travelling
Consultancy
5.5
Architects, M&E, C&S,
Land Acquisition
20.0
Acquisition cost, Authorities
Construction
50.0
Building development, ID, Landscape
FFOE
6.0
Furniture, fittings, operating equipment
Pre-marketing
2.5
Sales trips, collaterals, websites, agency,
advertising & promotions
Pre-opening
5.0
Staff, training, operating cost
Operating
5.0
Staff cost, selling cost Gross Operating
Profit (GOP)
Room Revenue &
Occupancy
Average Room Rate and Occupancy vs
Industry and comparable hotels

41. 6. Control Methods - Qualitative
FOCUS AREAS
PARAMETERS MEASURE &
CONTROL
Local Customs & Culture
Turnover rate,
Hotel Building & Facilities
Layout, easy access, completeness of
relevant facilities, operating efficiency
Customer Facing Staff – F&B,
Front Office, Housekeeping,
Recreation
Service standards , Communication
skills
F&B Outlets
Menu- variety of food & drinks, Interior
Designs, Layout,
Sales & Marketing
Guests -mix in terms of country of
origin, individual vs corporate mix,
efficiency response
On-line Booking
Social Media Tracker,
Tripadvisor
Reservation and paid bookings
Number of clicks, likes, posted
comments, compliments & complaints
Guests Satisfaction
Guest Satisfaction Survey

42. 7. Conclusion
—
Today’s environment is not static but highly dynamic.
—
GFC demonstrated the volatility of business and sociocultural implications might also affect entry mode decisions.
—
Hospitality industry specific variables such as size and
nature of host city, availability of appropriate inputs such
as labour supply, and economies of supply are equally
important for consideration
—
Hotel projects typically take three years from conception to
opening, during which time country and market conditions
may have changed dramatically.