Read the case study based on Maruia Hot Springs and answer following questions:
1. Conduct a SWOT analysis on the given organization in order to identify and evaluate the importance of the impact of external and internal environments on the organization's strategic options.
2. Apply Porter's five Forces Model to determine how well the given organization can compete in the marketplace.
3. Develop a vision statement and two specific, SMART objectives that will help the given organization achieve its strategic vision and improve its marketing strategies.
4. Segment the market for the given organization into different segments using four segmentation methods and present your findings.
5. Identify the target segments for the given organization and suggest a targeting strategy for the chosen segments and support with justification.
6. Use the four elements of positioning to construct a "Positioning Statement". Explain how the given organization can apply market research to develop the defined positioning statement.
7. Propose, with reasons, the best possible marketing mix strategies, using the 7Ps, for the given organization's product/service.
8. Provide an action plan to implement the best strategies of your choice. Your action plan should be focused on tasks involved to implement the strategy, the people who will be accountable for the tasks, the allocated budget for the tasks, the potential barriers to implementation, and time frame to complete the tasks so that the overall strategy can be implemented successfully.
9. Develop two standards to monitor the given organization's performance and demonstrate two control tools to control the implementation process.
10. Identify one internal and one external key stakeholders and evaluate the importance of the role of these stakeholders in achieving the success of the given organization. Propose and justify two effective communication strategies to engage with these stakeholders.
SWOT analysis of Maruia Hot Springs
Maruia Hot Springs natural thermal mineral based spring which is located in the Lewis Pass National Reserve. The property is mainly surrounded by pristine types of primary beech forest and high mountains as well. The term Maori or Maruia translates to shelter in the language of New Zealand. The site has been able to provide healing, relaxation and rejuvenation for centuries. Maruia has been used by the tired traders who had the responsibility to the treasured rocks from the origins to West Coast (Maruiahotsprings.nz 2018). The rehabilitation and health related bathhouses were used by European settlers in the later part of 1800s. The bathing pools were further supported internally by the cottages, a hotel, a chalet and cottages as well. The process of expansion of the hot springs was thereby driven by the levels of popularity of thermal mineral based water (Maruiahotsprings.nz 2018).
The report will be based on the analysis of internal environment based factors of Maruia Hot Springs which are able to affect its operations and position in the industry. The industry of operations of Maruia Hot Springs will be analysed with the help of Porter’s five forces analysis. The development of a vision statement based on SMART objectives will be discussed in the report in detail. The discussion will also provide an effective positioning statement for developing the position of Maruia Hot Springs in the market (Maruiahotsprings.nz 2018). Furthermore, an effective action plan will be provided in the report which will be helpful in the development of proper strategies in order to increase the profitability of the organization in the industry.
Strengths – The major strength of Maruia Hot Springs is mainly based on the services which are offered by the organization which include, facials, massage and hydrotherapy. This is helpful for the organization to gain high levels of revenues as compared to those which offer bathing based services only. The organization is located more than two and a half hours away from Christchurch (Ashton 2014). The surroundings of the organization are mainly based on the roughness and beauty and nature. The levels of rejuvenation and relaxation which are offered by the organization for centuries are unique in nature.
Weaknesses – The major level of weakness which is thereby faced by the organization is based on different internal employee related issues. The lack of effective management of employees and human resources is considered to be a significant weakness of the organization. Maruia Hot Springs has also not been able to develop a mission or vision statement which is based on the goals and objectives of the organization. The absence of effective human resource based practices have resulted in high rates of employee turnover (Barros, Hernangómez and Martin-Cruz 2016). The huge rates of turnover of the employees have resulted in the lack of proper effectiveness of the organization.
Opportunities – The opportunities which are thereby provided to the organization are based on different types of services which are offered by different organizations. Maruia Hot Springs can differentiate its operations with the other organizations with the help of the services that are offered. The organization has major growth based opportunities related to the industry in which it operates. The visitors have agreed to pay for the extra benefits which are offered to them by organizations. The future trends in the market will be helpful in the management of different business based activities (Baum et al. 2016). The levels of growth of the industry is around 14% the which is higher the rates of tourism expenditures.
Porter’s five forces analysis of the organization
Threats – The number of organizations which are operating in the industry have been providing high levels of competition to Maruia Hot Springs. The bathing opportunities are thereby offered by the organizations are offering tough competition to the organization. More than 60% of the total revenues in the industry are provided by 26% of the total number of establishments. The demands for transformational services have started increasing in the recent operating environment. The levels of competition can be considered to be major threats based on the operations of Maruia Hot Springs in the industry (Daspit et al. 2017).
Competitive rivalry – The levels of competition which are faced by Maruia Hot Springs in the industry are quite high. The services which are offered by different hot spring based organizations which range from small scale to large scale based operations. The small organizations which provide the relevant services mainly include, Oropi Pool which are located in Tauranga and Fernland Spa. The large organizations or competitors include, Hanmer Springs that is located in Canterbury (Demir, Wennberg and McKelvie 2017).
Bargaining power of the suppliers – The suppliers are not able to affect the prices of different services that are offered by the organization. Maruia Hot Springs is located in an area which is surrounded by natural resources which are helpful in providing the services to the tourists. The services are thereby totally dependent on the location of the organization and natural resources as well (Dobbs 2014).
Bargaining power of the customers – The major customers of Maruia Hot Springs mainly include, wellness tourists who aim at making travel based plans in order to improve their health and receive various benefits as well. The tourist market which has been developed by different wellness tourism organizations are able to increase the levels of bargaining power of customers in the industry (Dinica 2017).
Threats of the new entrants – The growing wellness tourism based industry has been able to affect the entry of different new organizations. New entrants have a major level of impact on the levels of profitability and revenues of Maruia Hot Springs. The new organizations in the industry include, small and large sized organizations. The relaxing environment which is offered by the new organizations that enter the market is considered to be a major competitor of Maruia Hot Springs (Dobbs 2014).
Threats based on substitute services or products – The sector based on wellness travel is booming in nature. The net worth of the sector is around 563 Billion Dollars. The successful hot springs are able to offer same levels of bathing based environment which is offered by Maruia Hot Springs. The substitute products which are thereby able to fulfil the wellness based needs of different tourists (Durand, Grant and Madsen 2017).
The wellness tourism based industry is highly competitive and growing in nature. Maruia Hot Springs has been able to compete effectively with the help of different relaxation based services.
Vision statement which can be developed by the organization is mainly based on the relaxing environment that is offered to the customers and development of a major position in the wellness market.
Vision Statement and SMART Objectives
S – Specific – Development of the human resource department of Maruia Hot Springs in order to reduce employee turnover.
M – Measurable – The major objective in this case is based on the reduction of high levels of turnover of the employees and increasing the organizational effectiveness.
A – Attainable – The goal which is being set with respect to SMART objectives can be attained with the help of proper training provided to the members of human resource management department.
R – Relevant – The goal is highly relevant to the operations of Maruia Hot Springs as the organization is currently facing many issues based effectiveness of the employees.
T – Timely – The time which is required for the proper development of human resource management department is one year.
SMART objective 2 –
S – Specific – Development of effective packages for the customers in order to fulfil their needs and demands related to spa experiences along with normal bathing environment.
M – Measurable – The goal can thereby be measured by analysing the levels of increase of number of tourists who visit Maruia Hot Springs.
A – Attainable – The second objective which has been set can be attained effectively with the help of proper services offered to them at appropriate prices.
R – Relevant – The goal is highly relevant for the profitability and revenues of Maruia Hot Springs in the Wellness tourism based industry.
T – Timely – The time which is required for the development of different combination based packages is around two years.
The two objectives which have been set by the organization will play a key role in the proper development of Maruia Hot Springs and its operations in the Wellness tourism based industry.
The process of market segmentation is a process which is used for dividing the customers into small groups based on different characteristics including income, age, behaviour and personality traits. The segments are thereby useful for proper optimization of advertising and optimization of products to the customers. Market segmentation can be considered to be a process which is used for dividing the target market into different approachable groups. Huge advantages are enjoyed by the organizations which are able to use market segmentation process in an effective manner (Dyer et al. 2015).
Demographic segmentation – Demographic segmentation process can be implemented by the organization is based on different factors like, gender, age, income, family size, religion, occupation, nationality and race. The target market of Maruia Hot Springs is divided based on these factors as the choice of packages and services differ with respect to their age and income based factors. The demand for wellness tourism has increased in last few years and the tourists who visit the organizations like, Maruia Hot Springs belong to different age groups (Engert, Rauter and Baumgartner 2016).
Behavioural segmentation – The behaviour of the consumers and decision making based patterns are able to affect the division of target market in an effective manner. This process of market segmentation is being used by the modern organizations much more as compared to the other processes. Behavioural segmentation can be used by Maruia Hot Springs in order to divide the group of customers with respect to the ways by which they enjoy the bathing services that are offered by the organization (Ethiraj, Gambardella and Helfat 2018).
Segmentation, Targeting, and Positioning
Psychographic segmentation – The psychographic segmentation process is based on lifestyle of the people, interests and the activities. This process is considered to be similar to the behavioural segmentation. However, the buying based behaviour of the consumers is taken into consideration in case of psychographic segmentation. The method of psychographic segmentation can be used by Maruia Hot Springs in order to divide the target segments and offer them with appropriate packages (Frynas and Mellahi 2015).
Geographic segmentation – The geographic segmentation process is used for dividing the potential customers into smaller groups with respect to their geographical location. The needs of consumers are thereby different in various areas. This method of segmentation can be implemented by Maruia Hot Springs in order to divide the customers based on the areas from where they belong. The business activities which are conducted by the organization are considered to be seasonal in nature. The organization thereby offers the services according to the levels of needs of tourists depending on the areas from which they belong (Gillovic and McIntosh 2015).
The target segment of Maruia Hot Springs are wellness tourists who are mainly interested in visiting the wellness spas and hot spring based areas in order to gain the effective health based benefits. The wellness tourists are known to spend much more as compared to the normal tourists in different tourism activities. Tourists in the industry mainly expect true experiences as compared to the disconnected offerings which are offered by the tourism industry (Hill, Jones and Schilling 2014). Different factors which are considered by the target market of Maruia Hot Springs include, immersion in the local culture, developing connection with the nature and mixing up the fitness activities. The tourists who are willing to spend huge amounts of money on different wellness based activities are considered to be a major target segment of Maruia Hot Springs (Hopkins 2015).
The positioning statement of an organization is based on four major elements which need to be considered in order to ensure that the statement is able to reach the target customers easily. The four major elements of positioning statement include, target audience, frame of reference, point of difference or benefit and reasons to believe. The target audience based element is based on the demographic or attitudinal description based on core prospect. The category of which the brand is a part is a major element of positioning statement (Hubbard, Rice and Galvin 2014). The benefits which are provided by the bank are also considered to be a significant part of the positioning statement. The positioning statement is also based on the promise which is made by the brand to the customers (Kasemsap 2014). Positioning statement which can be developed by Maruia Hot Springs in order to deliver its brand message to the customers is as follows,
“For tourists who visit New Zealand Maruia Hot Springs aims at providing exclusive bathing experiences at attractive costs as only Maruia Hot Springs is able to offer an all-round experience to wellness tourists”.Marketing mix of the organization
Marketing Mix Strategies using 7Ps
Marketing mix of an organization is helpful in the development of the marketing based strategies which can be applied in the industry. The business based activities are evaluated on a regular basis in order to develop the marketing strategies.
Product – The major products which are offered to the wellness tourists by Maruia Hot Springs include, bathing experiences and traditional bathing based experiences as well. Different facilities which are offered by the organization include, dining facilities, bathe and sauna based experiences and retreats as well. The tourists are also provided with an opportunity of exploring the area in which the organization is located (Meyer, Neck and Meeks 2017).
Price – The prices which are set for the services offered by Maruia Hot Springs are set with respect to the needs of wellness tourists. The target customers of the organization are a part of the premium group who are always willing to spend greater amounts for health and wellness based services. The premium customers are able to higher prices for better quality of services and high prices will act as a major driver of profitability for the organization (Oppewal, Huybers and Crouch 2015).
Promotion – The promotional activities will play a key role for the effective operations of the organization in wellness tourism based industry. Maruia Hot Springs can use different digital platforms in order to promote the services that are offered to the tourists. The website of the organization will also play a significant role in the tourism based activities which are performed by Maruia Hot Springs (Pearce 2015).
Place – Maruia Hot Springs has offered the services to tourists with the help of its establishment which is developed between pristine and beautiful natural environment. The organization will be able to operate in the industry in a profitable manner by improving the area in which it provides services to the customers.
Packaging – The ways by which services are presented or offered to the tourists are able to affect the levels of acceptability among the tourists. Maruia Hot Springs can thereby design the services with respect to different demands of the tourists. The attractiveness of promotional activities performed by the organization can have a major impact on the operations of Maruia Hot Springs in the industry (Pulido-Fernández, Andrades-Caldito and Sánchez-Rivero 2015).
Positioning – The organization needs to position itself in the industry with respect to the ways by which it is able to serve the customers. The wellness industry is based on different small and big sized organizations which offer similar services to the tourists. Positioning of Maruia Hot Springs will be in the premium segment and the services offered will be based on needs of premium tourists who except high quality based services (Shen et al. 2018).
People – Maruia Hot Springs has been experiencing major employee based issues in the past and this issue needs to be resolved in order to increase their effectiveness. The organization will be able to maintain its position in the industry with the help of proper contribution provided to the customers (Pulido-Fernández, Andrades-Caldito and Sánchez-Rivero 2015).
To develop the human resource management department of the organization.
Human resource management department.
Employees in different departments of the organization.
Lack of training to employees.
To develop effective packages which combine spa services and bathing services.
Customer service and branding department.
Services offered to the tourists with the help of natural resources available around the resort.
Lack of proper information based on packages offered to tourists.
The two major objectives which have been developed by the organization are based on the ways by which Maruia Hot Springs aims at increasing the levels of profitability and revenues. The effectiveness of the organization can be increased with the help of proper services that are offered by the employees. The lack of proper training and communication related barriers act as important barriers in the implementation of different objectives. The budget which has been allocated for the tasks is 5000 Dollars organization (Oppewal, Huybers and Crouch 2015). The objectives need to be achieved by the organization in order to operate in the industry in a profitable manner. The human resource management based department is able to play a key role in the ways by which the organization is able to operate in the industry. The contribution of employees will play a key role in the development of revenues of Maruia Hot Springs. On the other hand, the attractive packages will help in the development of a huge customer base of the organization.
The two standards which can be implemented in order to monitor and analyse the organizational performance are,
- The analysis of reduction in the levels of employee turnover due to implementation of improvements in human resource department. The reduction of employee turnover is considered to be an important factor which will help in the development of the organization. The employees need to be satisfied so that they are able to provide their services to the organization in an effective manner.
- The analysis of the increase in number of customers after development of new services that are offered to them in combination with the regular bathing based services (Durand, Grant and Madsen 2017). The increase in customer base needs to be analysed with the help of the website of Maruia Hot Springs. The organization needs to maintain the customer base in order to increase the levels of revenues.
The internal and external stakeholders of organizations are able to affect the revenues and levels of profitability in a huge manner. The stakeholders are also affected by the organizational operations and different activities as well. A major internal stakeholder of the organizational goal which has been set by Maruia Hot Springs are the employees or human resources. On the other hand, a significant external stakeholder of the organization are the tourists. The tourists are affected by services that are offered to the customers based on bathing and other spa based activities (Hill, Jones and Schilling 2014). A major communication based strategy which can be implemented by the organization is based on the developed of digital and social media based connections with the customers. The development of effective promotional strategies with the customers is considered to be another major communication based strategy which can be implemented in order to provide information based on different packages to customers.
The report can be concluded by stating that Maruia Hot Springs has been operating in the Wellness tourism based industry for a long time. However, the organization needs to implement effective strategies in order to survive profitably in the competitive environment. Different strategies have been suggested in the report based on which the organization will be able to increase its revenues in the market and further improve its position in the wellness tourism based industry.
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