term paper a final
TRANSCRIPT
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B Y : K A W I N , N E T I , A M O R N R AT, P A N U , PAT,
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Industry Overview
80%
20%
Market share contributors
SME-owned Non- SME
29%
21% 15%
South North East0%
5%
10%
15%
20%
25%
30%
35%
Expansion rates 2010-2011
Hotel & ResortMarket 300 trillion
baht (Kasikorn res.)
INDUSTRY SIZE INDUSTRY GROWTH
Customer &CompetitionCompany Issues &ObjectivesIndustryBackground
Recommendations
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2010 Market Value
2011 Market value
-
100,000
200,000
300,000
400,000
500,000
600,000
ThaiTravellers
ForeignTravellers
Total
411,429
144,127
555,556
432,000
168,000
600,000
Thailand Tourism Market Value
2010 Market Value
2011 Market value8%
Growth5%Growth
17%Growt
h
Customer &CompetitionCompany Issues &ObjectivesIndustryBackground
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Koh Kood CabanaCompany Background
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Founded in 1993 by Mr. Sommai P.
Located in Trat province
The first-ever resort on Koh Kood Island
Koh Kood Island
Recognized as one of Thailands most beautifulbeaches
Possesses authentic beauty and privacy
KOH KOOD CABANA
Koh Kood Cabana offers one-of-a-kind relaxation and
affordability to the adventurous, passionate, yet
budget travelers who seek a real natural atmosphere.
Mission Statement
Customer &CompetitionCompany
Issues &ObjectivesIndustryBackground Recommendations
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SUSTAINABLE COMPETITIVE ADVANTAGE
Long private Beach
front
Private atmosphere
Very Natural Food
DISTINCTIVE COMPETENCY
Customer &CompetitionCompany
Issues &ObjectivesIndustryBackground Recommendations
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- Cuisine freshly prepared by the in-house restaurant
- An array of complementary services
- Well-equipped facilities
SERVICE RECOVERING STRATEGIES
To satisfy customers by providing themexceptional service qualityKKCs Goal
Customer &CompetitionCompany
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Key to KKCs success:
Providing a healthy service culture to keep up with the
aggressive beach resort industry
Satisfying the guests with the promised level of service Service feedback from front-line service staff Empowerment of employees
Open discussions with the owner
Employee training sessions
A BOTTOM-UP APPROACH
Customer &CompetitionCompany
Issues &ObjectivesIndustryBackground Recommendations
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CORPORATE STRATEGY
Seasonality(low and high seasons)
Political situation(Red vs. Yellowshirts)
Target more Thai customers
Improve communication
methods, emphasis: first-mover authenticity location competitiveness
Provide more rooms and tentsTrain and recruit occasional employees
Low awareness levelWhere is Koh Kood?
Customer &CompetitionCompany
Issues &ObjectivesIndustryBackground Recommendations
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Accommodation Activity Employee
Customer &CompetitionCompany
Issues &ObjectivesIndustryBackground Recommendations
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ACCOMODATION
Customer &CompetitionCompany
Issues &ObjectivesIndustryBackground Recommendations
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Accommodation Activity Employee
Customer &CompetitionCompany
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ACTIVITIES
The KlongChaoWaterfall
Freetransportati
on backand forth
By truck orspeedboat.
Snorkeling
Speedboataccomodation
1.5 hoursto dive
Gears areprovided.
Karaoke
Dinningzone ministagewith free
of charge
EatingExperience
Thaicuisines:seafood forlunch anddinner andinternationalbreakfast
Others
Kayakboats
Beachchairs
Beach
footballandvolleyball
Sandcastlebuilding
Customer &CompetitionCompany
Issues &ObjectivesIndustryBackground Recommendations
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Accommodation Activity Employee
Customer &CompetitionCompany
Issues &ObjectivesIndustryBackground Recommendations
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EMPLOYEE
Customer &CompetitionCompany
Issues &ObjectivesIndustryBackground Recommendations
10 FULL-TIMEEMPLOYEES
SEASONALEMPLOYEES
Inexperienced and unqualifiedHigh turnover rate
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PLACE
Customer &CompetitionCompany
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KOH KOOD CABANA84 km southeast of Trat
105 sq. km area
Second largest
island of the Koh
Chang Marine
National Park
Fourth largest in
Thailand
Tapow Beach on the west coast
Long white sandy beaches approximately 800 m.
Customer &CompetitionCompany
Issues &ObjectivesIndustryBackground Recommendations
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PLACE ADVANTAGES
Isolated island from city lights
Boasts real relaxation atmosphere
unlike Pattaya or Phuket
PLACE DISADVANTAGES
Electricity not serviced in the area
Underground water insufficient during
summer and for heavy consumption
Customer &CompetitionCompany
Issues &ObjectivesIndustryBackground Recommendations
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PRICECustomer &CompetitionCompany
Issues &ObjectivesIndustryBackground Recommendations
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Initial pricing strategy based on land costs
plus the expected profit/yeardivided by the forecasted customer demand
Pricing strategy based on competitor pricing
Current accommodationoutdated versus that of
competitors
Ranked rank as a 3-star resort
PRICE LOWER THAN
COMPETITORCustomer &CompetitionCompany Issues &ObjectivesIndustryBackground Recommendations
INCREASE INCOMPETITORS
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Air-condition Bungalow 5,500 Baht/person
Air-condition Bungalow VIP 6,000 Baht/person
Deluxe (Bungalow) 6,500 Baht/person
Tent 4,200 Baht/person
Car park 100 Baht/ 3 days 2 nights
Children: Age 4-6 years (discount 50%)
Children: Age 7-10 years (discount 25%)
KOHKOOH CABANA
Pricing3 Day, 2 Night package
The above charts are suggested package recommended by Koh-Kood Cabana. It
includes Speedboat takes customer from Trat pier to Koh-
Kood.
All you can eat breakfast, lunch, supper, dinner Snorkel diving, visiting Klong Chao waterfall, Karaoke
singing
Speedboat takes customer back to Trat pier
Customer &CompetitionCompany Issues &ObjectivesIndustryBackground Recommendations
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PROMOTI
ONKOH KOODCABANA
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Clear blue sea, White sandy beach,Azure blue skyCustomer &CompetitionCompany Issues &ObjectivesIndustryBackground Recommendations
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PROMOTION
Customer &CompetitionCompany Issues &ObjectivesIndustryBackground Recommendations
Online reservations via the resorts Website
Participation in travel fairs
Limited marketing campaigns to advertise the
resort
No strategic marketing campaigns to directly
capture the target group No supportive media to attract potential
customers when exposed to competitors media
in getting in touch with their customers
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PROCESS &
PROGRAMMING
Customer &CompetitionCompany Issues &ObjectivesIndustryBackground Recommendations
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SERVICE BLUEPRINTPhysical Evidence Customer
Actions
Onstage Contact
employee
actions
Backstage Contact
employee actions
Support
Processes
Website/Advertising/
Phone call/ Traveling
Boots
Make reservationMake reservation for
guests
Reservation
system
Parking spot
Lobby Carts
Arrive at Trat koh
kood cabana pier
Carry guest bags and
stuff to the boat
Boat
Life jackets
Travel to koh kood
cabana by boat
Demonstrate how
to use a life jacket
- Driving boat-Prepare adequate
amount of life jackets
Pier at koh kood
cabana Carts
Arriving at koh
kood cabana
Take guests to the
lobby
Carry bags and stuff to
caf lobby
Caf Lobby
Relaxing whilewaiting for bags
and stuffs at the
lobby
Serving welcomedrink
Tell the day
schedule
Prepare welcome
drink
Desk lobby/keys Check-inProcess registration
Assign key
Registration
system
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SERVICE BLUEPRINT
Physical Evidence Customer
Actions
Onstage Contact
employee
actions
Backstage Contact
employee actions
Support
Processes
Caf lobby LunchGetting lunch
Serving food/
Taking order
Prepared food
Clean up
Boats Snorkels
Life jackets
Snorkeling trip
Give an instruction
for snorkeling
lesson
-Prepare adequateamounts snorkel and
life jacket
-Clean up after done
Food Caf lobbyAfternoon Meal
Serving food/ take
order
Prepared food
Clean up
Dinner
Karaoke Live music
Caf Lobby
Dinner party
Serving food
Entertain guests by
many activities
Tell the schedule
for the next day
-Prepared food
-Clean up
-Open music/karaoke
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SERVICE BLUEPRINT
Physical Evidence Customer
Actions
Onstage Contact
employee
actions
Backstage Contact
employee actions
Support
Processes
Breakfast Caf
lobby
BreakfastServing food/ take
orders
Prepared food
Clean up
Lunch Caf lobbyLunch
Serving food/ take
orders
Prepared food
Clean up
Boats/Cars Life
jackets
Going to Klong
chao water fall
Guide the way
to water fall
Explain the
history of Klong-
chao water fall
Driving boats/cars
Prepared life
jackets
Food Caf lobby Afternoon mealServing food/ take
orders
Prepare food
Clean up
Dinner Karaoke
Live music
Caf lobby
Dinner party
Serving food
Entertain guests
by many
activities
Prepare food
Clean up
Open
music/karaoke
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SERVICE BLUEPRINT
Physical Evidence Customer
Actions
Onstage Contact
employee
actions
Backstage Contact
employee actions
Support
Processes
Breakfast
Caf lobbyBreakfast
Serving food/
take order
Prepared food
Clean up
Lobby desk
KeysCheck out
Processing
check out
Registration
systemCarts
Pier at koh kood
cabana
Boats
Life jackets
Back to Trat Driving boat
Carry bags and
stuff to boats
Prepare life jackets
Parking spot Leave
Have a safe trip
back and hopeto see u again
Customer &CompetitionCompany Issues &ObjectivesIndustryBackground Recommendations
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Customer &CompetitionCompany Issues &ObjectivesIndustryBackground Recommendations
- Key man risk- No flexibility on to serve customers
needs
- Activities require a large numberof staff for safety purposes
- Both onstage and backstageoperations require good
communication skills
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Customer &CompetitionCompany Issues &ObjectivesIndustryBackground
Convenienceoutgoing
enjoy participating in allthe activities
explore the beauty of
natureadventurous
Recommendations
90%
10%Foreigners
Thai
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TravelDesire Information Search AlternativeSolutions Decision
Decision-making Process
Advertising PromotionalPricingMarketing
Promotion
InternetTravel Agency Peers andFamilies
Activities Seclusion
ReputationLocation
ExpectationMotivation Needs
Companies offersVS
Customer &CompetitionCompany Issues &ObjectivesIndustryBackground Recommendations
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CONSUMER EXPECTATION & MOTIVATION
Customer Expectation
- Real nature
- Clean beach
- Nice weather
- Escape from their work
- Real nature Koh Kood
Cabana could provide
- Calm & Peaceful
- Real escape from the work
life and the light and sound
of the city
Customer Motivation
Customer &CompetitionCompany Issues &ObjectivesIndustryBackground Recommendations
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CONSUMER NEEDS
Resort Customer needs
Product: Accommodation Service:
Employee- Acceptable room decoration
- Facility work well
- Convenience
- Good Facility maintenance
- Safety
- Private- Activity offers
- Treat customer in good manner- Respond quickly to customer
request
- Polite
- Consistence service quality
- Good service blue print
- On time service- Understand your customers
needs and be able to meetthem
- Friendly- Customer oriented
Customer &CompetitionCompany Issues &ObjectivesIndustryBackground Recommendations
Weaknes
s
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KOH KOOD CABANA CUSTOMER CHARACTERISTIC
Adventurous lifestyle
Loves nature
Budget travellers
Customer &CompetitionCompany Issues &ObjectivesIndustryBackground Recommendations
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FIT
Adventurous
lifestyle
Loves nature Budget travellers
Activity such as
going to
Waterfall,
Snorkeling , climbmountain
Thai style sea-
food which is onlyplace available in
Koh Kood
Nice, long
beach for
relaxation andseclusion
Prohibition of
scooter, banana
boat and any kind
of vehicle tominimize pollution
Fixed pricing
package with
activities, food,
and
accommodation
included at lowprice
Customer &CompetitionCompany Issues &ObjectivesIndustryBackground Recommendations
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Travel expectation, motivation, and needs
Self-esteemdevelopment
Relationship
Safety andSecurity
Relaxation
Customer &CompetitionCompany Issues &ObjectivesIndustryBackground Recommendations
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MARKET SEGMENTATION
Customer &CompetitionCompany Issues &ObjectivesIndustryBackground Recommendations
M k t S t ti d T ti
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Market Segmentation and Targeting Leisure holidays BusinessesBehavioral
25 years old ++
Income: Middle class 40% : 10,000 to 50,000 35% : 50,000 to 100,000
Demographic
Adventurous Save the Earth Experience-oriented
Psychographic
Customer &CompetitionCompany Issues &ObjectivesIndustryBackground Recommendations
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Budget hotel
THE INDUSTRY TREND
BUDGET & BOUTIQUE MODEL
A hotel built with the most cost efficient way Value for money Functional benefit
Getting away from traditional model with
Boutique hotel
Focus on delivering new experiences Luxury pricing Emotional side
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THE INDUSTRY TRENDGetting away from traditional model with
E X A M P L E . L U B D H O T E L
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THE INDUSTRY TRENDGetting away from traditional model with
Location: Silom & Siam Square
Targeting: Backpackers, Young Adults
Type: Budget Boutique Hotel
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THE INDUSTRY TRENDGetting away from traditional model with
Customer &CompetitionCompany Issues &ObjectivesIndustryBackground Recommendations
Focus on the design on most of services' elements
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THE INDUSTRY TRENDGetting away from traditional model with
Customer &CompetitionCompany Issues &ObjectivesIndustryBackground Recommendations
Focus on the design on most of services' elements
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THE INDUSTRY TRENDGetting away from traditional model with
Customer &CompetitionCompany Issues &ObjectivesIndustryBackground Recommendations
Focus on the design on most of services' elements
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COMPETITOR ANALYSIS
Chanta Resort
Away Resort
Peter PanResort
Captain Hook
Resort
Bai Kood Resort
Koh KoodBeach Resort
Competitive advantages: More modern designs andnewer accommodations versus those offered by
KKC
Customer &CompetitionCompany Issues &ObjectivesIndustryBackground Recommendations
C tit P i i
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Competitor PricingResort Name 3 days 2
nights
package
Rating
TinkerBell(beachfront)
8,453
Shantaa(2 queen-
size)
7,458*
CaptainHook
(DeluxVilla)
6,800
Peter Pan(Delux
Villa)
6,900
Suanya(Standard)
6,000
Cabana(Standard)
5,450
AwayResort(DeluxVilla)
5,800
TheBeachNatural(Garden
view)
5,544*
Ao Phrao(Sea
Beach)
4,296*
*Room rates per 2 nights
Customer &CompetitionCompany Issues &ObjectivesIndustryBackground Recommendations
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SITUATION ANALYSIS
Being the first mover on the
islandSatisfying target groups with
outdoor, adventurous activities
CRM: Owners (Mr. Sommai)s
friendlinessS
Poor infrastructure
on the island(electricity)
No marketing
campaign
Inefficient service
blue-print
WCompetition rise of
boutique resorts
Natural disasters
Fluctuation of currencyPolitical instability
Capture the industry
growth
Increasing marketing
communications to widencustomer baseO T
Customer &CompetitionCompany
Issues &Objectives
IndustryBackground Recommendations
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Employee
Service
Improvementand TrainingOperational and
marketing
communicationdevelopment
1. Empowered, competent
staff, acquiring a service-
oriented perspective and
managing problems at-
hand without supervision
needed.
Acquire a larger segment
of the foreign market,while implementing back-
office procedures to
better satisfy and retain.
The resort lacksqualified
employees,
causing customerdissatisfaction
Unable to retaincustomers or toattract newmarkets
Customer &CompetitionCompany
Issues &ObjectivesIndustryBackground Recommendations
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RECOMMENDATION I
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RECOMMENDATION I
PROBLEM
EMPLOYEE SERVICE
CUSTOMER DISSATISFACTION
DECREASING IN OCCUPANCYRATE
Customer &CompetitionCompany
Issues &Objectives
IndustryBackground Recommendations
RECOMMENDATION I
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OBJECTIV
E
Increase the customersatisfaction Rate
IMPROVESERVICE QUALITY
RECOMMENDATION I
Customer &CompetitionCompany
Issues &Objectives
IndustryBackground Recommendations
IMPLEMENTATION
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Intensive training On-the-job training
Promoted to full-time employeesafter three years ofwork at KKC
IMPLEMENTATION
Tracking customer satisfaction
- Interview customers to gain feedback on their satisfaction
Customer &CompetitionCompany
Issues &Objectives
IndustryBackground Recommendations
Set up a supervisor team consisting of ull-time employee- Responsible for training seasonal employees to perform quality
at their best attitude
Retirement benefits Additional benefits
Health insurance Higher salary Compensation
packages
Increase employeeloyalty
IMPLEMENTATION PLAN
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IMPLEMENTATION PLAN
Set service standards for employees for temployees to work on timely basis
Service Blueprint Improvements Offer fixed schedules of activities andmeals Enable guests to plan their time ahead
Customer &CompetitionCompany
Issues &Objectives
IndustryBackground Recommendations
Work on a timely basis to achievecustomer satisfaction
Provide discounts if unexpected things occur Prevent bad impressions and possible
negative WOM
RECOMMENDATION II
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RECOMMENDATION II
To attract new customers and increase the retentionrate of existing guests
Customer &CompetitionCompany
Issues &Objectives
IndustryBackground Recommendations
IMPLEMENTATION PLAN
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IMPLEMENTATION PLAN
Customer &CompetitionCompany
Issues &Objectives
IndustryBackground Recommendations
OPERATIONAL
DEVELOPMENT
Travel
Desire
InformationSearch
Alternative
Solutions
Decision
DestinationPromotions
PicturesTestimonials
OBJECTIVE
Develop an effective operationalback office and enhance marketing
communications
MARKETING
COMMUNICATIONS
IMPLEMENTATION PLAN
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IMPLEMENTATION PLAN
Customer &Competition
Issues &Objectives Recommendations
OPERATIONAL DEVELOPMENT
Reduceservice
failures!
Room availability checking Real-time updating occupancy and
rates Electronic payment and receipts
Customization of order Full search capability Reporting and sales analysis
ONLINE HOTEL BOOKING ENGINE
CompanyIndustry
Background
Upgrade Direct contact Efficient
IMPLEMENTATION PLAN
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IMPLEMENTATION PLAN
Customer &
CompetitionCompanyIssues &
ObjectivesIndustry
Background Recommendations
BENEFITS
Increase in direct sales from the Website
Reduction in administration costs
Maximize room yields
Increase customer satisfaction and
loyalty
World-wide focus to increase customer
IMPLEMENTATION PLAN
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IMPLEMENTATION PLAN
Customer &
CompetitionCompanyIssues &
ObjectivesIndustry
Background Recommendations
OPERATIONAL DEVELOPMENT
MARKETING COMMUNICATIONS
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MARKETING COMMUNICATIONS
Incentive to tour agency Give more incentive to the agent if they
could bring customer on week day (e.g.,higher commissions) Above the standard percentage
Set up Special Activity andEvent To make KKC more attractive in the eyes
of customer we A special event/activity during weekdays
Customer &
CompetitionCompanyIssues &
ObjectivesIndustry
Background Recommendations
No repeat activity attract customers
to come to KKC Mini concerts, special chef, spa,
dive lessons, shows, etc.
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Customer &
CompetitionCompanyIssues &
ObjectivesIndustry
Background Recommendations
MARKETING COMMUNICATIONS - IMPLEMENTATION
Set up teams Responsible for organizing events
Developing new events in response
to market trends
Special events are limited to MEMBERS ONLY! Drives customers to establish
membership with KKC Special rates
for members Spend nights at KKC Occupancy increases
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THANK YOU FOR YOURATTENTION!