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Contents
Executive summary ....................................................................................................................................... 3
Introduction ................................................................................................................................................... 4
Situational Analysis ...................................................................................................................................... 5
Internal Analysis ....................................................................................................................................... 5
SWOT Analysis ........................................................................................................................................ 5
Task Environment ......................................................................................................................................... 7
Micro environment elements .................................................................................................................... 9
External Environment analysis ............................................................................................................... 10
Marketing Objectives of Banana island resort ........................................................................................ 11
Marketing strategies ................................................................................................................................ 11
Market Segment .......................................................................................................................................... 12
Target Market...................................................................................................................................... 13
Position ............................................................................................................................................... 13
Marketing mix ......................................................................................................................................... 13
The Product ................................................................................................................................................. 14
Price ........................................................................................................................................................ 15
Place ........................................................................................................................................................ 15
Promotion................................................................................................................................................ 16
People...................................................................................................................................................... 16
Physical evidence .................................................................................................................................... 17
Implementation ....................................................................................................................................... 17
Evaluation and Control ........................................................................................................................... 18
Reference ................................................................................................................................................ 19
Annexures ............................................................................................................................................... 20

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Executive summary

This report consist of the current situation analysis of the Banana Island Resort which is newly
started its operation in Arugam bay , the report analyzed the market opportunities and how to
capitalize those opportunities in average cost effective way, since its new like any other
business it hs to face the competition from rivalry from its own industry.

The report also give reference to the fact that capital gearing and payback time is high due to the
heavy capital investment and the larger amount of working capital is to keep the human resource
intact.

The resort is suggesting to achieve the 75% of consistence of occupancy throughout the year to
achieve the set objectives so that would please the top management and their sense of security of
own investment.

This report has outline the business environment in such way to understand the task and macro
environment influence to the business and where the Porters five force analysis has explain the
internal environment facts that should take an account to carry forwards its operations.

As suggested by the report the pricing strategy would be the ‘penetrating strategy to capture the
market in short time to increase the awareness about the business establishment that would
eventually helps to create the positive brand for the business.

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Introduction
Banana Island Report is the newly established and operating beach resort, with 20 rooms and 5
independent villas, total consist of 55 employees. The Banana Island report is located in Arugam
bay which is from 320 Kms from Colombo east. The Report is catering to the local and foreign
tourist all around the year.

Tourism in Arugam Bay is dominated by surf tourism, thanks to several quality breaks in the
area, however tourists are also attracted by the local beaches, lagoons, historic temples and the
nearby Kumana National Park.

This report analysis the futuristic opportunities for the resort and the growth according to the
environment opportunities such as expansion of tourism in the country and due to the massive
direct foreign interments in near future.

Tourism in Sri Lanka has surged to a new limit of over 2 million arrivals in 2016, which is an
increase of 14.0 per cent over last year’s arrivals. (Source: Annual Statistical report of Sri Lanka
tourism 2016) for the forecast of next 3 years tourist arrives projected at annexure 01

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Situational Analysis

Internal Analysis
Banana Island resort is an architectural design beach resort started by an entrepreneur Geeth
Dissanayaka, prior to this Geeth is a real estate developer. The resort mainly catered to surfer
since lot of foreign and local surfer is the main attraction of Arugam bay.

SWOT Analysis
The SWOT analysis is where the resort is looking in to the current scenarios of the business and
the future perspective that could help to grow the business and sustain. Analysis take an account
of Banana Island Resort strength and weakness and to analysis the external threats and
opportunities that would help BI Resort to identify the key market risk, attractiveness and
competitiveness.

Strenght Weakness

Opportunities Threats

Strengths

• the locations the most prominent tourist attraction places in the country

• 20 rooms and 5 luxury villas

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 • 150 guest in house dining facilities

• good working capital

• good online and social media present

• train staff and experience chef and staff

Weakness

• relatively new

• lack of experience of the management of running a resort

• Completion from well establish and multinational hotels and resorts.

Opportunities

• Geographically vast development

• increase in tourism at a rate in the country

• international Suring festivals

• government positive objectives towards tourism

• recent increase in the consumer income pattern

Threats

• multinational hotel chains and their new development in the area

• hotel chain maintaining penetrating price with major credit cards

• New government legislation such as banning on alcohol purchase by women and women
working in bars.

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With consideration of above factors, it shows the tourism market is highly competitive and main
attributes of the market is

 Location
 Ambiance
 Price
 Service quality

Banana island is has the strength of the location since its located in heart of the tourist attraction
area and their human resource is definite added advantage. The main weakness is to explore is
that the management have the challenge of taking up this new venture since its new industry to
the management. Opportunities are there to grab, the increase number of tourism in the country
from international and domestic. Since the current increase in consumer income also a plus point
for more leisure activities in the country.

Task Environment
Task environment is a essential to identify for the business any change of variable to task
environment will directly affect the business. To elaborate task environment through Porter’s
five force analysis. This analysis will explore more strategic analysis and choices for the
company

bargaining
power of
the
customer

barging
Rivalry
threat of power of
among the
substitute the
industry
suppliers

barriers to
entry

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Barriers to entry – high

The industry need a heavily investment on real-estate and building cost even need to have a
substantial amount of working capital to run the business for the survival for the couple of years.
With those barriers to entry to the industry is high.

Threat of substitute – Moderate

As substitute the report mainly room renting or small guest houses run by local residence. Since
the country is not exposing to couch surfing or Air Bnb still the threat of substitute is moderate

Bargaining power of the customer – moderate

Since the resort carries the competitive pricing and the seasonal pricing involves it has very
moderate bargaining power of the customers with the targeted segment

Barging power of the suppliers – High

The supplier’s plays very major role in the hospitality industry, even from the simple travel agent
to the multinational chains need to have a good relationship with the suppliers to keep the
momentum going.

Rivalry among the industry – moderate

The geographic area of the Arugambay has newly developed hotels that cater for the specific
segment and for all clusters of segment since rivalry is moderate due to the standard pricing to
keep the competitive edge sharp.

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Micro environment elements

Competitor

Name Price Capacity Promotion

East beach surf 6500 15 Rooms Good social media

resort and viral presence
Water Edge resort 7000 10 rooms Good online and
social media
Kottukall beach by 20000 35 rooms Magazine, websites,
Jet wings social media, online,
agents local n
international
Coco bay resort 15000 20 rooms Agents, social media
websites
Surf and sand hotel 10000 25 rooms Agent, social media ,
websites

Consumers

The domestic customer has the advantage of travelling throughout the year whereas the
international tourist will visitation would be mostly the seasonal time, such as surfing months
from June to December and beach festival season. Mostly the consumers are categorize as below

 Surfers
 Leisure seekers
 Family vacations
 Beach and sand tourist
 Backpackers

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External Environment analysis

Political  Current political environment is favorable for the direct

foreign investment and thus shows the mass
constructions of star class hotel in Sri Lanka which
eventually attract lot of tourists
 Recent legislation of banning buying alcohol and female
working in bars are banned
Economy  Increasing interest rate has a somewhat negative effect on
credits and depreciation of rupee value also affecting the
exchange rate. But it would be a plus point for the tourist.
As well as the business since they are use international
currencies for transaction
Social  For the local community it would be a opportunity for
employments
 New business ventures such as boutique and small scale
restaurants and leisure suppliers such boat services, surf
board renting

Technological  Technology plays pivotal role as social media flat form use
the rating and revise for the places they visit. Even the rise
of tech apps such as Uber, Trip adviser being a favor
Ecological  Since its beach front it too have the ecological values to
keep from environmental pollution and oceans cleaners
Ethical The companies own code of ethics will be execute
Legal  Company act no 7 of 2007
 Accounting standards
 Tourist broad approvals

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  Public health inspectors
 law prohibiting the sale of any type of alcohol to women

Marketing Objectives of Banana island resort

The key marketing objectives are formed with SMART objectives format

 To have 75% occupancy trough out the operational year

 Increase the brand awareness locally and internationally
 To collaborate with major surf events and chains
 To survival the business in operation of 1st year and for next 2 years to maximizing the
profit.

Marketing strategies

Segmentation, Targeting, and Positioning

(1) Determine which consumer group to cater and targeted

(2) Select which ones we are best off trying to serve and, finally,

(3) Implement our segmentation by optimizing services for that segment and communicating.

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 Figure - Segmentation , Targeting and positioning

Market Segment

The market segment can be broken down to four quadrants which are,

Demographic - Under the demographic segment we will be considering the income level,
lifestyle and occupation and association

Geographic - There isn't a significant relevance geographically for the penetration of this
product. Developing new markets all island and globally.

Psychographic - The target segment would be the users who are looking for leisure, thrill seekers
or sportiness, adventurous.

Behavioral - This segment is mainly focused on the price sensitivity and the service quality from
the room services to ambiance, food and friendliness of the staff.

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Target Market

Local and international tourists.

 Surfing tourist (local or international)
 Beach and sand tourist (local and international)
 Picnic or leisure ( focus on local)
 Seasonal tourists

Position

The targeted market position for the product will be as an affordable, high quality services to
consumers ‘A trip to remember”
Unique selling proposition will be the total experience of leisure and adventure. Combine
promotion with all major credit cards
The tag line of Banana island Resort “recreation of your vacation” this statement brings strong
message to the mass, which will initially point the service and quality of life.

Marketing mix

The marketing mix refers to the set of actions, or tactics, that a company uses to promote its
brand or product in the market. Kotller 2001

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The Product

What we offer:

 The banana island resort has 20 rooms – Air conditioned and hot and cold water supply
with TV and free wifi enable. Locker facilities for the valuables
 5 luxury villas facing own private beach
 Larger swimming pool
 150 guest in house dining area.
 24 hours front desk operations
 Modern sustainable architecture
 Indoor sports such a pool and snooker , table tennis
 Outdoor activities surf equipment and boat riding , fishing, deep water diving
 Friendly and train staff
 Around the clock security
 On call doctor services

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Price

Price is the most vital factor to the banana Island Resort the chosen price element will be “price
penetration strategy”. BIR hoping to penetrate the resort market lowing prices with compare to
the its competitors to attract customers in 1st year of operation.

Name Price
Kottukall beach by Jet wings 20000
Coco bay resort 15000
Beach and sand hotel 10000
Banana island resort 8000

This price strategy will allow the customers to rethink about their options especially with
comparison of the prices with other competitor’s offers.

Place

Place as tool for marketing mix will consider the distribution or convinces to reach the product to
the end user.
Selective distribution system: through travel web sites and credit card suppliers and local and
international tour agents.

Websites
Banana Island
Resort Credit cards End user

Agents

Figure – Channel of distribution network of Banana Island Resort

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Promotion
Banana Resort Island is the new kid in the market the AIDA model will be use to carry out initial
promotions

 Attention
 Interest
 Desire
 Action
The methods are selected as informative and persuasive advertising where Banana Island resort
still in the growth stage of the product life cycle. Attention of the target market is very important
to inform about the product present in the market.
Selected methods are below the line, above the line and viral promotion strategies.
 Advertise on leisure and travel magazines
 Air plane onboard magazines
 Own web site
 Google adds
 Social media
 Joint promotion with credit cards
 Event promotions as free gifts.

The advertising budged determines by the zero budgeting methods since it’s at introductory level
of the product life cycle

People
 Well trained friendly staff
 Use of language procession
 Maintaining of standards

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Physical evidence
 Cleanness
 Use of sustainable materials to recreations
 Use of modern furniture

Implementation

 The price strategy as penetrating strategy will be the ideal as local tourist attraction

 Secondly the promotion strategy will focus on establishing the brand awareness as well as
joint promotions with all major credit cards.

 In brand awareness it would be advisable to use online presence such as tripadvicer.com,

makemytrip.com, Facebook and Instagram account which will update daily basis

 To develop a strong relationship with the suppliers and local communities much advisable

 The staff motivation is must since resort brand is depends on the service that customer
receives

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Evaluation and Control
This marketing plan is to observance and implement the above said objectives align with the
suggested marketing strategies to gain the favourable brand awareness of the establishment as
well as the said sales objectives to be achieved.

 The corporate budget will allocated the funds for the marketing budget where, budgetary
measurement actions will take in Couse to determine the deviations. maintaining the
working capital is crucial at this stage where 75% occupancy should be maintained
monthly basis
 Company in-house standards are been made to meet the expectation of the customers and
all other stakeholders
 Moral suasion chase the quality of human capital by consistence training and
development programmes to conduct and meet the said standards and keep the code of
ethics intact
 As any other business Banana island resort also need to capitalized future brand equity,
so the especial reference to customer satisfaction and maintaining fruitful relationship
with them
 Meeting and adjusting monthly breakeven is mandatory where that would give the
management a sense of direction

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Reference

1. Wilson R and GilliganC, strategic marketing Management , 3rd edition, Elservice

Butterworth-Heinemann, 2011
2. Ghosh,Biswanath ,Principles of Marketing Management, Concepts and Strategies,Sterling
Publishers, 2014
3. Porter, Michael E, Competitive Strategy 1st free press export edition,
Simon&Schuster,INC,2004
4. Michael E. Porter. "The Five Competitive Forces that Shape Strategy", Harvard Business
Review, January 2008, p.86-104
5. Annual Statistical report if Sri Lanka tourism 2016 , Government of Sri Lankan, Ministry
of tourism.

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Annexures
01

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