The Different Marketing Options of Hidden Valley Cabin - Case Study Example

Contents Executive Summary 2 Introduction 3 Scope of the report 3 Situational Analysis 4 Environmental Factors 6 SWOT 7 Findings 8 Financial Viability 9 Change in current operation 11 Services 11 Conclusion 12 Recommendations 12 References 14 Executive Summary It has been more than 24 years since Hidden Valley Cabin has been operating in the tourism industry. Hidden Valley Cabin apart from providing the amenities to customer who stays at their resorts provides them with arrangements for tours, different packages and so on. Their location adds to their advantage. Hidden Valley Cabin has differentiated itself from others by converting their resort into an eco-friendly one. This has made it a differentiator. Also getting various certifications is helping Hidden Valley Cabin to market itself. In this report we look into the different marketing options Hidden Valley Cabin has. We also look into the situational analysis to find out areas where Hidden Valley Cabin can work. The marketing evaluation will help to identify the external factors affecting Hidden Valley Cabin through Porter’s Five Force Model. The SWOT will help to find more information about Hidden Valley Cabin. The financial viability helps to look into the feasibility of options and the way how solar energy can be harnessed for future projects. The recommendations based on the findings follow a logical manner with the most feasible being the first and following on. Working on this will help Hidden Valley Cabin grow and earn more. Introduction Hidden Valley Cabin has been promoting tourism in Australia by differentiating itself from others by ensuring that they are the first to offer eco-friendly resorts. Their location above sea level has added an advantage and helps to save vital energy. The preserving of environment is ensuring that Hidden Valley Cabin get the nod of environmentalist and this could act as a weapon to market itself. Apart from this the pleasure to stay and contribute to the environment is finding many takers. Hidden Valley Cabin by differentiating itself from others is looking for means to promote itself. Hidden Valley Cabin is also looking for the use of solar in future and the feasibility of having it due to the high cost involved. Hidden Valley Cabin has an opportunity here to tap as tourism is rising and is contributed largely by the education sector. Scope of the report The report tries to evaluate the following factors Looking into the different marketing strategies that can be employed to market its resort Finding the different market segments where Hidden Valley Cabin can promote its resort based on the customers wants Finding the financial viability of Hidden Valley Cabin to go ahead with solar energy for further development considering the cost involved To look into the changes that Hidden Valley Cabin needs to come up in its operations to ensure growth Situational Analysis This analysis shows the present state of tourism in Australia. Based on this Hidden Valley Cabin can prepare its strategy. Some of the factors considered are Market Background: The tourism in Australia is growing. The largest contributor here is the education sector. As education sector is on an upswing the retrospective effect will be seen on the tourism market. The initiatives of the government will further give it a push. The factors contributing most has been the tourist from abroad. This is bound to grow given the country projecting itself as a differentiator. The new initiatives by the entire tourism sector are seen as a root cause for further expansion. Market Size: “The estimated market size for Queensland Tourism Industry is $48 million”. (Queensland Tourism Industry, 2010) This is bound to move up. The different programs launched to attract more tourists will add to it. The initiatives taken all around the country and with some major events taking place this will grow. Growth Rate: The tourism industry over the years has shown impeccable growth. This has contributed to the foreign exchange kitty as well. “The overall tourism industry has shown a dip by 1.2% due to global recession”. (Tourism in Australia, 2009) When we compare it to other economies it has outperformed despite the dip. With the recession getting over the positive trajectory is going to take over and will help the sector. Competitors: The level of competition is high. With various different resorts offering tourist similar packages with slight differentiation in the offering is making it tough. New entrants are finding it tough to cope with it. Here, the providers who have been able to market themselves well have grown. This has been fuelled by the fact that they have differentiated themselves. Hidden Valley Cabin being a differentiator has scope where it can stand out. Market Segments: The tourism industry attracts all people. Different tours and packages are designed based on the needs, wants and living standards. However, the Tourism Queensland, 2010 has divided the entire market into the following segments. It covers all crowds and present people on the basis of wants and livelihood. They are Active Explorers “are people preferring destinations”. (Tourism Queensland, 2010) Stylish Travellers are “people preferring places where they can distinguish themselves from the crowd”. (Tourism Queensland, 2010) Self Discoverers are “people preferring new places” (Tourism Queensland, 2010) Unwinders are “people preferring places to recharge themselves”. (Tourism Queensland, 2010) Connectors are “people preferring places where they can meet their friends and relatives”. (Tourism Queensland, 2010) Social Fun Seekers are “people preferring places where they can spend time with their known ones”. (Tourism Queensland, 2010) Environmental Factors These factors are beyond the control of individual firm. “Environmental factors affect the entire industry and needs to be considered in decision making because a change in it can bring about major changes in the decision pattern”. (OPPapers, 2010) The factors are Government: The tourism industry has “been supported by the pro tourism polices drafted by the government of Australia which is stable”. (OPPapers, 2010) The government is also adopting polices to promote Australia. This has helped to improve the brand. More and more tourist is pouring in and is a good sign for the tourism sector. Technology: “The integration of technology in tourism has made it more viable for tourist as tourist can book their packages and look at the different photos and amenities they get”. (Hidden Valley Cabins, 2010) The tourist can look at different packages and decide according to their budget. Even different blogs help as people get information about how people liked it. Demographics: The demographics of Australia include ages of all kind. The sector contributing the most is the education. The demographic are also willing to spend and are looking for new avenues. To add to it is the standard which has grown and is a boom for every sector. Culture: The culture is outgoing. The population has a mix of people and they prefer to socialize. This is an opportunity for the tourism sector. The culture is such that tourism industry can grow. This is an avenue for companies to tap and look for alternatives to move. Economics: The economic situation is sound. Recently, the country is going through recession but will soon find a way out. The standard of living is also high. This reflect the strong roots the country has in economic development which will help every sector to use it to their advantage. SWOT the analysis of these factors will help to find the areas where Hidden Valley Cabin can work so that they can grow. They are as Strengths Differentiator by offering eco-friendly resort Location where people can enjoy different activities Different packages and tours as per the requirements Less overheads like electricity costs Different certification from environmentalist regarding to emitting carbons Weakness Over reliance on solar energy which if falters might have serious effects The high cost for customers might not appeal all group of customers Opportunities The growing tourist markets Government norms supporting more tourist Moving into the overseas market with similar business model Threats Rising cost of solar equipments Other competitors following the same model and using solar or wind energy Findings The above analysis helps to identify the following findings for Hidden Valley Cabins Hidden Valley Cabins can market its resort among the entire segment keeping an eye on those like active explorers; Stylish explorers and self discoverers as this segment are willing to spend extra for something new. Hidden Valley Cabins can uses techniques like marketing itself as a differentiator and the first one to care for the environment along with giving the same pleasure tourists wants Hidden Valley Cabins can trade in carbons with the needy as they are saving carbons and this money can be used to further develop their resort. Hidden Valley Cabins can market it that being a differentiator it provides tours and packages according to the needs of tourists thereby ensuring customer orientation Hidden Valley Cabins by using technology can “promote over the internet by loading different photos, amenities and living and also creating blogs where people load their experience”. (Promote your tourism business, 2010) Hidden Cabin Valley can use their location for marketing by “projecting the scenic beauty, peace and calmness customers get along with their contribution to the environment”. (Hidden Cabin Valley, 2010) Hidden Cabin Valley with “the help of environmentalist and the different certification they have received can market by claiming that the customer who stays here gets a certificate as a token for love for their contribution to the environment”. (Hidden Cabin Valley, 2010) Hidden Cabin Valley can also highlight “the different workshops where the customer can learn the benefit of solar energy and use it in their own life”. (Hidden Cabin Valley, 2010) They can also project the different development that their resort is going to encounter in coming days Financial Viability The financial viability for Hidden Cabin Valley seems sound. The following provides the details. It has been taken from Hidden Valley Cabins, bookings and prices, 2010 Single room cabins cost: $139 Double or twin cabin cost: $149 Triple room cabin cost: $159 Family: $169 Homestead rooms for single: $69 Homestead rooms for double: $79 Total rooms: 6 cabins, 4 homestead, 23 single beds and 31 double beds Based on the conservative approach the total revenue for Hidden Valley Cabin is $149*6+ 69*4+ 23*149+ 31*159 = $9526 Cost for solar panels “for 1 kilo watt is $ 6000-$8000” (Solar Energy cost, 2010) Required solar energy for Hidden Valley Cabin is 421 kilo watt based on square feet of 32,000 Total cost = $8000 * 421= 33368000 Return on Investment= Revenue/ Investment = 9526 * 365 / 33368000 = 3276990 / 33368000 = 10.4% Hidden Valley Cabin can also trade in carbons with the needy which will help them to ensure that they have more money for activities like marketing. This will further add to the revenue and ensure that the return increases. The reason that has not been considered is that the income from the carbon trading will help to meet the expenses for marketing and other recurring ones. Thus, Hidden Valley Cabin has the feasibility of moving ahead with the different projects based on the revenues. Change in current operation Hidden Valley Cabin due to its operation in the tourism industry doesn’t have to bring a magnitude change. Hidden Valley Cabin needs to ensure that they promote themselves accordingly and this will help them to get customers. Changes in current operations: Hidden Valley Cabin needs to be aggressive. This will help them market well. Also a basic change and see that they don’t waste the renewable sources will improve operation. This will help to keep cost under check. Management Team & Staff: Hidden Valley Cabin team needs to integrate the advantage of an eco friendly resort in their daily routine. The management needs to ensure that the renewable batteries are charged and not wasted so that they run for a long period of time. Service Hidden Valley Cabin has to stress on services. This is the mot important in a tourism industry. It spreads good words about the company. This can be done by working on the following Equipments: Hidden Valley Cabin needs to ensure that there are equipments available. Like batteries have a life so Hidden Valley Cabin should have it in their stock. They should also have extra panels in case the need arises. Having proper equipments will ensure that they always work within the limits. Information: Hidden Valley Cabin should communicate the information. Customers as well as employees should know when to witch off lights and fans. Proper communication methods and displaying information will solve this. Training: Hidden Valley Cabin should ensure trained staff. This will help to ensure that customers are satisfied. It will enable to deliver good service as that is prime important. Training will also ensure that Hidden Valley Cabin is able to get talent for the future. Training should also be provided for repairs as there are chances that something goes wrong. Feedback: Hidden Valley Cabin should ensure continuous feedback. This will help to improve the quality of service. It will also help Hidden Valley Cabin recognize are to work on. Feedback will help Hidden Valley Cabin to grow and ensure better service. Conclusion Hidden Valley Cabin thus based on the revenues has the potential to tap the correct segment. The opportunity this segment provides with the push form the government should act as a boost for Hidden Valley Cabin. The fact that they are different and have the backing of environmentalist can be further used. Hidden Valley Cabin also has the option of getting money from carbons. The resort by projecting and working on different marketing tactics can increase their share. Hidden Valley Cabin also has the opportunity of moving ahead as this sector has the potential for growth. Recommendations On the basis of the findings and financial viability of the different options available to Hidden Valley Cabin I recommend the following in the order of priority Hidden Valley Cabin should look to market the resort as the eco-friendly one looking for all the segments with a special focus on those who are potential ones. Hidden Valley Cabin should market itself as a differentiator and with the backing of environmentalist of being the first eco-friendly resort will help. At the same time they should provide information to the customer that by living in the resort they are contributing to the environment by reducing carbon emission Hidden Valley Cabin should also look forward for using more of solar energy as the option is viable which will help to bring a change in its style of operation. Hidden Valley Cabin can market over “the internet by loading different photos, packages and benefits available”. (Promote your tourism business, 2010) They can also make use of blogs where people load their experience. It will help the tourist and the resort as they will know areas to work on Hidden Valley Cabin should also look to design special tours and packages and look to market those based on the profile of the people. Hidden Valley Cabin can also consider to improve their horizon by expanding their brand of business References Hidden Cabin Valley, (2010), retrieved from < http://www.hiddenvalleycabins.com.au/environmentally_friendly.html> on March 12, 2010 Hidden Valley Cabins, (2010), “Australian Tourism guide”, retrieved from http://www.hiddenvalleycabins.com.au/ on March 12, 2010 Hidden Valley Cabins, (2010), “bookings and prices”, retrieved from http://www.hiddenvalleycabins.com.au/bookings.htm> on March 12, 2010 Hidden Valley Cabins Website, (2010), retrieved from on March 12, 2010 Hidden Valley Operations, (2010), retrieved from on March 12, 2010 OPPapers, (2010), “Environment factors”, retrieved from on March 12, 2010 Promote your tourism business, (2010), retrieved from < http://www.tq.com.au/marketing/promote-your-tourism-business/promote-your-tourism-business_home.cfm> on March 12, 2010 Tourism Queensland, (2010), retrieved from < http://www.tq.com.au/tqcorp_06/marketing/understanding-our-consumer---tq-domestic-market-segmentation/understanding-our-consumers---tq-domestic-market-segmentation_home.cfm> on March 12, 2010 Tourism in Australia, (2009), retrieved from < http://www.ibisworld.com.au/industry/default.aspx?indid=1903> on March 12, 2010 Queensland Tourism Industry, (2010), retrieved from < http://www.tq.com.au/tqcorp_06/resource-centre/plans--strategies/queensland-tourism-strategy/queensland-tourism-strategy_home.cfm> on March 12, 2010 Read More