The Market Segments That Chewton Glen Hotel Spa and Country Club Is Targeting - Case Study Example

Executive summary The purpose of this report is to determine the market segments that Chewton Glen Hotel Spa and Country Club is targeting in order to maximize its profitability and remain relevant in the market. A detailed study of the services that Chewton Glen offers and an analysis of the industry in which it operates has been carried out. A study to determine the level of Maslow’s Hierarchy of needs that Chewton Glen aims to satisfy has also been carried out. The study also involved an analysis of Chewton’s market strengths as well as the competition it faces in the market. Chewton Glen was found to have positioned itself as a hotel/resort Spa that offers quality health and fitness services to its customers. Thus, the hotel was found to offer safety needs to its customers regarding to their health and wellbeing. This is a factor that has led to its good reputation in the market. The results obtained from the study were of crucial importance in determining the market segments that Chewton Glen Hotel Spa and Country Club is targeting in its bid to retain its market relevance. Introduction The history of Chewton Glen Hotel, Spa and Country Club dates back in 1837 when it began as a country house up to 1950 when it was converted into a hotel by the Duval family. It operated as a hotel up to 1990 when it established an Spa in order to improve on the services it offered to its customers. Owing to the increased awareness of the importance of fitness and wellbeing; the hotel began improving its Spa in 2005 by equipping it with high-tech facilities as well as highly trained instructors. With these improvements, the hotel has become a preferred destination for guests who want to take advantage of its Spa facilities in order to improve their physical fitness and wellbeing (Hoffman, Bateson, and Kenyon, 528). It is as a result of this that the number of visitors to the facilities has been increasing every year. Chewton Glen attempts to position itself as a Hotel/resort Spa offering quality health and fitness services have born much fruits and Chewton Glen has now come to be known as one of the best Spa retreats not only in the UK but also in the entire Europe (Tim, 203). In fact, Chewton Glen is proud of being associated with some of the prestigious accolades and awards which include the Laurent Perrier Spa award and England’s leading Spa resort by the World Travel Awards 2006 among others. 1. Industry analysis The value of the world’s Spa tourism industry has of late grown to over US$40 billion with visits increasing to 131 million due to increasing number of consumers who have realized the benefits of Spa therapies and treatment. Competition has also increased compelling Spa facilities to offer specialized services so as to remain relevant in the market and hence consumers have a wide range of products from which to choose depending on their primary purpose and goals of visiting Spas (Bernard, and Pamela, 124). Spas are classified into eight types depending on the services offered. The types include mineral spring spa, cosmetic beauty spa, resort/hotel spa, medical spa, destination spa, day spa cruise ship spa and club spa. However, the Spa sector in which the Spa at Spa at Chewton Glen hotel and Country club operates in can only be classified as the hotel/resort Spa sector. This is because the Spa is owned and located in the hotel and provides professionally administered Spa services, fitness and wellness components, and spa menu choices. Furthermore, although the Spa is an integral part of the overall experiences that guests enjoy in this sector, Spa facilities are developed to add onto the list of services offered at the hotels/resorts and the initial purpose of establishing the resorts/resorts is not to offer Spa services. 2. The key strength of Chewton Glen Hotel, Spa and Country Club The key strength of Chewton Glen Hotel, Spa and country club lies in its history as a country house that was used by smugglers .The smugglers trail that guests can take if they wish to make their way to the sea front serves as a guest attraction not found in other places. Furthermore, tales about its history contribute to its charm and legacy (Janet, 102). Chewton Glen’s staff also contributes to its strength. The staffs are consummately conservative but also acknowledge guests every need in a quirky and perfectly sympathetic manner. The hotel was also among the first hotel to construct spas implying that the Spa is widely known. Furthermore the renovation of the Spa facilities in 2005 equipped it with high-tech facilities for guests interested in it. Additionally, the Spa has been awarded various awards owing to the quality services it offers. This coupled with its highly trained therapists and fitness instructors not only serve to market the Spa but also the entire hotel making it a preferred destination for many people. Competition Chewton Glen hotel, Spa and country club faces competition from other firms that provide similar services. In fact, there are over 1400 other Spas in Europe while the UK industry is worth $ 3 billion. Chewton Glen faces competition from urban retreats mainly found in Harrods, Knightsbridge and Harvey Nicholas which offer such services as beauty treatments and gentle massages (Hoffman, Bateson, and Kenyon, 524). Other competitors include the UK’s first public day Spa at London’s Bethnol Green which charge lower prices than Chewton Glen. Other types of Spas have also evolved including the green hotel Spas such as the Apex City Quay Hotel and Spa in Dundee. In addition to competition at home, Chewton Glen also faces competition from other parts of the world with the Spa industry being valued at over $40 billion. 3. Brand extensions that Chewton Glen Hotel would consider in its portfolio Chewton Glen has already established itself as a famous Brand in the Hotel/resort Spa sector. The hotel should therefore take advantage of its market position and venture to other areas with its brand name. One of the brand extensions that Chewton Glen should consider is establishing a separate medical Spa that will provide comprehensive medical and wellness care in an environment that will integrate Spa services with traditional complementary therapies and treatment (Joseph, 254). This is because Chewton Glen has already established itself as an Spa that offers quality wellness and fitness services. Therefore, venturing into medical field will not require a lot of advertisement as the medical Spa will target the same customers who visit the existing chew ton Glen spa. This is because the customers are expected to take advantage of the superior quality services offered by Chewton Glen. Chewton Glen could also take advantage of the smugglers trails and its proximity to the sea to establish a cruise-ship Spa. This is likely to provide experiences that are not encountered anywhere else thereby making Chewton to become a favorite destination for all types of visitors (Charles, 125). Another extension that Chewton Glen could venture into is establishing a green Spa so as to contribute towards improving the environment especially bearing in mind where Chewton is located. The advantage of venturing into brand extensions for Chewton is that it already has good reputation and many customers and therefore the new ventures are likely to be successful. 4. Maslow’s hierarchy of needs There has been increasing advocacy towards living a healthy lifestyle in order to improve one’s health and wellbeing. With this realization, Chewton Glen has established and improved its Spa to provide quality health and fitness services which its customers are in search of (Pete). Although tourism and travel is widely seen as a preserve for the wealthy, Chewton Glen provides services that are widely seen by its customers as a necessity for improved health and is therefore something they can not do without. Therefore although the services offered at the Spa are expensive, the customers consider them as a necessity for their wellbeing and not a luxury (Zeitham and Bitner, 305). In other words, Chewton Glen has positioned itself as a hotel that has been establish to satisfy the customers’ safety needs of health and wellbeing. This is done not only by provision of quality foods to guests but also through the establishment of the Spa which also focuses on the guest’s health and wellbeing. Therefore, by making the customers feel that Chewton caters for their safety needs of health and wellbeing, the hotel has ensured that the number of visitors increase every year since they value their health and wellbeing. 5. Segments targeted Chewton Glen was initially established as a hotel but in 1990, it established an Spa to add on to the list of services it offered to its customers. However, with the increased awareness of the importance of wellbeing, the Spa has become an integral part of the services offered by Chewton Glen. Chewton has since established itself as a wellness and fitness destination and has equipped its Spa with sophisticated facilities as well as highly trained staff who offer quality services. In so doing, Chewton Glen targets the health and wellness segment as well as the hotel Spa segment (Marc, 125). This is as a result of the realization of the value attached to wellbeing by customers who want to remain healthy. Chewton Glen would also want to take advantage of its history and its reputation to attract tourists (guests) and therefore continue to function as a guest hotel in addition to serving as an Spa. A look at the reasons that make people to visit Spas in UK reveals that they are interested in facials, pedicures as well as manicures. This is the reason that Chewton is targeting the segment in order to take advantage of the UK market (David and Kurtz, 231). By looking at customers’ wellbeing, Chewton is sure to always have them make a comeback and also lure their friends visit it due to the value attached to health and wellbeing. Conclusion As discussed above, Chewton Glen Hotel, Spa and country club has positioned itself as a favorite guest’s destination for health and wellbeing services. This is attributed to the increasing awareness of the value of health and fitness spas among the travelers/guests. The guests no longer view the services as luxuries but as necessities for their improved health. It is no wonder then that Chewton has seen its reputation rise to become one of the best Spas in UK. Chew ton should therefore take advantage of its rising reputation to focus on health Spa segment so as to become more profitable in the future. Chewton should also take advantage of its reputation to venture into brand extension in such areas as medical spas and green spas. This is because it already has a large pull of customers to consume its new products without wasting much money in marketing them. References: Hoffman, Bateson, and Kenyon A. Services marketing. Cengage Learning, UK edition, 2009. Bernard and Pamela P. 100 best Spas of the world. Globe Pequot Press, London, 2006. Janet D. Spa business strategies. Cengage Learning, London, 2008. Joseph S. Advances in Hospitality and leisure. Emerald group publishing, UK, 2008. Tom O. Spas: The cultural Economy of hospitality, Magic and the senses. Oxford University Press, oxford, 2004. Pete E, Spa marketing 2010 retrieved on 17 Nov. 2010 from http://docs.google.com/viewer?a=v&q=cache:D_v6nWA_VooJ:www.download- it.org/free_files/Pages%2520from%2520Chapter%252015%2520Spa%2520marketing- 8bee1c1e0caa19ce2134d089bf08fe1a.pdf+Spa+marketing+PDF&hl=en&pid=bl&srcid=ADGEESilL n612vo2UvWYJUssLDbwZg- dScKI3iuyaudjCZgVR58uFTIJrPbAkyP2OwAGp4T8lanaLDcTgCbDSUT7uEd-UiCkhs3jjXn1AAYJJO- IJ7wlUqVa6cy3ZhU7Y-0RoFs43Bn3&sig=AHIEtbQ9c0GD1dOsztExcpBCreOK30Y0lg Zeitham and Bitner M. Services marketing. McGraw Hill, Singerpore, 2006. Marc C, Understanding the Global Spa industry: Spa management. Heinemann, Butterworth, 2008. David and Kurtz H. 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