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Read the case given below and answer the questions at the end of the case:

The pioneers in the field of holiday resorts in India were “Dalmia Resorts” and “Ornate
Club of India” Dalmia introduced the current of property time-share in which the
company transfers the property rights in equal proportions to the buyer via a sale deed.
Generally, the property is divided among fifty buyers each getting a time-share of 1/50th
of the year, i.e. one-week. Two weeks are kept for maintenance. Starting Holiday
Resorts (I) Ltd., started off in 1986, selling property time-shares with a lakeside resort in
Kodaikanal in Tamil Nadu. It is a public limited company with an equity base of Rs. 6.75
crores.

TIME-SHARING
Time-sharing is a concept giving the right to the buyer to stay for one week at the
Sterling Resorts for 99 years without having a right to the property. In a world moving
towards buying on credit, Sterling dares to ask the target buyer to pay in advance for
something that doesn’t yet exist, and when it does, Sterling grants him no control over
the product, let alone possession….

MARKET SEGMENTATION
According to the data furnished by sterling, its market segments are as given in Table 1.
TABLE 1 Market Segmentation of Sterling

Annual Income Mode of Employment


Self-employed Professionals
Below Rs. 90,000 Small Scale Young. Low income
Rs. 90,000 – 1,80,000 Small Scale Middle aged, middle
income
Rs. 1,80,000 and above Small and medium Middle aged, high
scale income

Besides individuals, big corporate houses were also considered.


MARKET TARGETTING
Individuals with annual income over Rs. 90,000 and big corporate houses were
targeted. Sterling’s target vacationer is the relatively better off but no rich family man in
his early thirties who is under constant work pressure and is yearning for a break from
worldly headaches. He is the caring, conservative husband-father who loves submitting
to his family chorus for a long overdue holiday. He finds hotels unaffordable and travels
arrangements difficult. For him a time-share week is found to be an affordable
alternative, with the added advantage of travel booking looked after by Sterling and the
freedom to cook ones’ own food in the cottage kitchenette. Sterling also has facilities for
meetings and conferences targeted at business houses.

MARKET POSITIONING
Sterling is positioned in the high price and high quality segment. Their communication to
customers is mainly through advertisements, in newspapers, business magazines, in-
fight magazines, and direct mail.

PRESENT LOCATIONS
With more than 50,000 time-shares, Sterling has 12 operating resorts, two each in
Kodaikanal, Ooty and Darjeeling and one each at Yercaud. Mussoorie, Goa, Manali,
Munner and Puri. The other resorts coming up are in Lonavala and Mahabaleshwar in
Maharashtra Coorg and Vorbett. Plans for several resorts on some of India’s most
popular holiday spots will be underway. The capacity at various resorts is as follows:

Place Number of families


Yercaud 50
Goa 120
Ooty 240
Kodaikanal 250
Puri 50
PRICES
The price of a time-share for a particular resort depends on the location of the resort,
the type of apartments and seasons. In addition to this, prices can be used as a
promotional strategy to promote a less demanded resort to even out the disequilibrium
in demand. There is also a provision to pay the amount in three installments within a
period of six months

FACILITES AND FEATURES


The living space in a resort comes in three standard sizes of fully furnished cottage
options — twin, regular and compact with a maximum capacity of six, four and three
adults, respectively. For including an even-spread in usage over the year, time-share
prices vary from a high in peak season called premium weeks to a low in lean season
called classic weeks. In between are the season weeks and the rice differences are
determined by the demand. Typically, the price of a time-share would range from a high
of Rs. 52,000 to a low of Rs. 32,000 for a regular unit.

Once bought, the week may be exchanged for one at another resort in the Sterling
network and, more importantly, a week some other time of the year in the same or
cheaper season band, provided sufficient notice is given to the company. The week
may also be split or carried over to the next year (accumulated), given some conditions.
The buyer is free to gift rent sell or bequeath his time-share.

Sterling keeps a portion of the unsold weeks which are let out daily tariff to “free
individual travelers”. At present, 30% of the 5000 weeks a year available at Sterling are
sold as time-shares. Also, “no shoes” and week transfer to other resorts ensure that
Sterling always has enough space to offer for normal non time-share hotel stay. The
money to keep the maintenance going forever comes from these hotel revenues. The
idea is to keep unit as a self-perpetuating business unit.
A premium week time-share holder can exchange his time- share with a premium
season for classic week. A season week can be exchanged with a season or classic
week, whereas a classic week can be exchanged with a classic week only. All
exchanges are done in the same calendar year. If a time share older is not going to use
his allotted week and he is not sure when he is utilizing it, he can float his week. Having
floated his week he can ask for reservations during other periods in the same year once
he decides to have a holiday. An unutilized floated week is automatically accumulated.
The time-share holder is also entitled to one split per year (in any combination, i.e. 1+6
pr 2+5 or 3+4 etc.) within his season classification. In classic period he can have any
number of splits. The company aids in booing of tickets through the help of travel agents
as well as pick-up of customer from bus or railway station, if they are intimated
beforehand for which they charge a nominal amount.

A beach resort, the residents are involved in indoor games, treks, bonfires, fishing,
expeditions and so on by a team of fun rangers. For kids there are mini-zoos and
playpens and hobby centers besides other recreation options. The company had
decided to use personal selling as a major tool of its sales effort, backed by strong
advertising. Group presentations rather than individuals contact selling are being
preferred.

Questions
(a) Devise an appropriate sales presentation strategy for Sterling Resorts.

(b) Design a complete sales plan, outlining sales targets, sales strategies, type

of territory and sales quota to be designed. In addition to the information


given, you may make appropriate assumption and state them