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Study Questions
1. What are the main factors that contributed to Banyan Tree’s success?
2. Evaluate Banyan Tree’s brand positioning and communications strategies. Can Banyan
Tree maintain its unique positioning in an increasingly overcrowded resorts market?
3. Discuss whether the brand portfolio of Banyan Tree, Angsana, Colours of Angsana, as
well as the product portfolio of beach resorts and city hotels, spas, galleries, and museum
shops fit as a family. What are your recommendations to Banyan Tree for managing these
brands and products in future?
4. What effect does the practice of corporate social responsibility have on brand equity?
5. What potential problems do you foresee in bringing Banyan Tree to the Americas,
Europe and the Middle East. How could Banyan Tree address those issues?
Banyan Tree’s success might be attributed to an overall well designed and executed external and
internal marketing program, and in particular:
• Choice of target segment
• Positioning and branding strategy
• Product/service design and delivery
• Aggressive internal marketing
• Winning the support of local communities and public interest groups
• Pioneer status: first mover advantage
• Pro-environmental business practices
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Banyan Tree – Branding the Intangible
experience that would both provide relaxation and create quality time for them to spend quiet
moments together.
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Banyan Tree – Branding the Intangible
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Banyan Tree – Branding the Intangible
2. Evaluate Banyan Tree’s brand positioning and communications strategies. Can Banyan Tree
maintain its unique positioning in an increasingly overcrowded resorts market?
Brand positioning is timely and appropriate in today’s hectic and stressful lifestyles
• Banyan Tree was positioned as a sanctuary that offered couples an exclusive romantic and
intimate holiday experience.
• Positioned on such timeless attributes as romance and intimacy between couples, the
positioning is timely and appropriate in today’s increasingly hectic and stressful lifestyle,
where many couples are busy with their careers and have little time to spend together.
• Banyan Tree’s offering of an avenue to get away from it all and spend quality time together
while relaxing and de-stressing would appear to be valued benefits sought by today’s busy
couples.
• Being the first and only resort to be positioned as such, Banyan Tree occupied a unique
position in the luxury resorts market when it first started.
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Banyan Tree – Branding the Intangible
• Banyan Tree had tried to appeal to “the senses,” focusing on the overall customer experience
and working on what the customer will ultimately bring home—memories. Judging from its
success so far, it appears that even if competitors come up with similar lower-priced service
products, it is unlikely that they would be able to replicate the total Banyan Tree experience so
quickly.
Perceptual mapping could be used to visualize the market positions of Banyan Tree and its sister
brands relative to competitors in the industry. An example of a positioning map with the
attributes price level and romantic versus sporty image is shown below:
EXPENSIVE
-AMAN RESORT
-BANYAN TREE
SPORTY ROMANTIC
-HILTON -ANGSANA
COLOUR OF ANGSANA
LESS EXPENSIVE
3. Discuss whether the brand portfolio of Banyan Tree, Angsana, and Colours of Angsana, as
well as the product portfolio of beach resorts and city hotels, spas, galleries, and museum
shops fit as a family. What are your recommendations to Banyan Tree for managing these
brands and products in future?
From luxurious six-star Banyan Tree resorts to small, individual Colours of Angsana branded
hotels in exciting locations, these properties were bound together by one central theme: the
romance of travel and the beauty of discovering the world.
• Banyan Tree targeted the higher end of the luxury resorts market
• Angsana was more mainstream and contemporary, targeting the wider market
• The Colours of Angsana range of boutique hotels catered specifically to the soft adventure
tourism segment, locating in remote and exotic places that cannot justify the premium prices
charged by Banyan Tree villas
The various brands thus served to cater to different segments of the hotels and resorts industry,
made distinct by price and benefits offered.
Banyan Tree Bangkok, with its urban location and standard hotel rooms, did not fit well
with the Banyan Tree family of beachfront resorts and the individual-villa concept.
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Banyan Tree – Branding the Intangible
Four broad product lines: accommodation, clubs, spas, and retail outlets
• Banyan Tree’s products and services could be classified into essentially four product lines:
hotels and resorts, clubs, spas, and retail shops, under various brands and sub-brands.
• Banyan Tree’s properties and spas could be classified under the business of travel and leisure.
• The retail shops augmented and helped to extend the overall service experience through the sale
of products that consumers might use at home to replicate and remind them of the Banyan Tree
experience. Also, the arts and crafts sold at the shops not only served to reinforce Banyan
Tree’s brand personality, but also fitted in the travel industry, with the sales of indigenous
products that tourists could buy as souvenirs.
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Banyan Tree – Branding the Intangible
• Multiple brand extensions might result in brand dilution; but having too many individual
brands might confuse potential customers: they may wonder about the differences between the
various brands.
• As the number of service outlets grows, there is also the need to ensure the consistency of
service quality across a large number of service outlets. Some students might suggest training
all employees at a central academy however that some employees might be uncomfortable with
such an arrangement. Also, there is a risk of losing the personal touch and unique service
culture of the locality. So try to make differences arrangement to employees at other place.
4. What effect does the practice of corporate social responsibility have on brand equity?
Brand equity refers to the marketing effects or outcomes that accrue to a product with its brand
name compared with those that would accrue if the same product did not have the brand name
Investopedia Says:
Brand equity is created through aggressive mass marketing campaigns. Good examples of
companies with strong brand equity are corporations such as Nike and Coca-Cola, whose
corporate logos are recognized worldwide.
Some marketing researchers have concluded that brands are one of the most valuable
assets that a company has.
Business would embrace responsibility for the impact of their activities on the
environment, consumers, employees, communities, stakeholders and all other members
of the public sphere.
Positive brand equity is created by effective marketing including via advertising, PR and
promotion.
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Banyan Tree – Branding the Intangible
o Example:
In the case of Banyan Tree Holdings, the effect by practicing CSR is positive to the
Brand Equity.
From my point of view, since the organizations itself could won so many award, so it
shows how positive and effective the practice of CSR have on Brand Equity.
The dedicated committee of CSR, headed by Claire Chiang who is also the CEO of
Banyan Tree Holdings focus on issues such as:
o Actively caring for the natural and human environment (e.g.: environment and
eco friendly)
o Pride and respect among staffs (e.g.: take a good care on staff welfare)
o Give positive image to Banyan Tree Holdings (e.g.: well-known 5 star hotel and
resorts in the world)
o Increase Banyan Tree profit of the year and increase customer. (e.g.: on the first
quarter 2008, Banyan Tree earns S$90.1 million in cumulative unrecognized
revenue at the end of 1Q 2008
o Enhance Banyan Tree brand equity (e.g.: being awarded for many award)
The company has based its brand on the two main beliefs of the organization. Banyan Tree
resorts would become a "Intimate moments" and Banyan Tree would be an environmentally
sensitive and a socially responsible organization.
Branding is started right from the locations of the Banyan Tree resorts and has been consistent
through the designs, the facilities offered, and the ambience created in each of the resorts. In line
with the " a sense of place" theme, Banyan Tree has placed a strong emphasis on the locations as
a key element of the brand identity. The company has chosen exotic locations with exclusive
access to sun-bathed beaches, exciting environments and a good transportation infrastructure to
connect the resorts to main destination highlights.
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Banyan Tree – Branding the Intangible
Concern for the nature and environment surrounding the resorts has been a trademark of Banyan
Tree. Many environmentalists appreciate their efforts to burture and protect the surroundings of
their resorts. True to its belief that environmentally sustainable and socially responsible tourism
is compatible with making profits, Banyan Tree has established the Green Imperative Fund to
extend financial assistance to environment conservation and community projects. It has also
taken a conscious decision to minimize damage to the natural environment when building new
resorts. The company built villas around trees and boulders rather than cutting or excavating
them.
It proved to be a successful way of breaking away from an Asian commodity business and
changed the focus onto its brand on the two main beliefs.
5. What potential problems do you foresee in bringing Banyan Tree to the Americas,
Europe and the Middle East. How could Banyan Tree address those issues?
AMERICAS
o The potential problem is more on the cost to be invested since in America the cost
of living is higher than Asia.
o How to compete with legendary hotel and other luxury hotel
EUROPE
Same problem with America where it is more to the investment cost and competitors.
MIDDLE EAST
o Since Banyan Tree is a leading player in the luxury resort and spa in Asia, matter
arising is in Middle East they cannot bring their tagline marketing as “a senses of
place” to reflect and enhance the culture and heritage of the destination
o This is because in Middle East environment is more to dessert and not same as
Asia where the environment is tropical rainforest or Green World.
o Another problem is the government policies at Middle East is differ to Asia.
From the 3 countries, the most problem could be seen is actually same but what can
BTHL do in order to expand their hotel and resort all over the worlds.
Is the strategy that had brought fame and success to BTHL in Asia workable in the rest of
the world?
How could Banyan Tree mindful in the brands’ focus and to be careful so that it will not
dilute the brands?
Notice that though Banyan Tree also tried to appeal to travelers from developed countries,
specifically the States and Europe, the costs of setting up shop in such places were also high and
very expensive. So, Banyan Tree resorts were built in places that were a few hours’ flight away
from major cities in Europe and America, to make them more accessible to their target market in
the developed countries, and yet locate the resorts in attractive, exciting, and exotic places, such
as Mexico and Morocco, where cost structures were low and labor was relatively inexpensive
compared to the developed countries.
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Banyan Tree – Branding the Intangible
Even though they have to face with all the potential problem but still through researches done
they still can address those issues and settle down the matter arising.
To make sure they can compete with other competitors they need to stay with their brand
equity and CSR to show the quality of their products by observation of all competitors at the
country.
They also need to search result of a study how they could attract customer and to show that
their product is best and good.
Need to make sure that Banyan Tree marketing tagline is still the main focus and careful not to
dilute the brand.
Try to differentiate product from the local luxury resort and hotel.
Promote something new to the customer so they wont fell regret to come again.
• Other locations may not offer the low-cost structure that Banyan Tree is currently familiar with.
Therefore how Banyan Tree’s strategies could be replicated in other countries where cost
structures might be different alike is goes to 3rd country which is need developing.
• Tropical forests might not be available in temperate countries, and so the relevance of the
Banyan Tree brand in such locations would be lost. A possibility would be for the company to
launch a new brand name that would reflect the temperate settings of such locations should the
company be interested to venture into temperate countries.
• The culture, values, and norms of service staff in other non-Asian countries may be distinctly
different from those of Asian countries. Thus, the compatibility of Asian hospitality in non-
Asian settings is suspect.
• Further, current services of Banyan Tree are based on Asian therapies and remedies. Would
these be compatible or appropriate in a non-Asian location, e.g., Europe or America, with
different settings, culture, heritage, and norms?
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