TABLE OF CONTENTS
Section Page Number
EXECUTIVE SUMMARY 1
I. TARGET MARKET OF THERMAE BATH SPA
I. 1. Demographic Characteristics 2
I. 2. Socio-Economic Characteristics 4
I. 3. Socio-Cultural Characteristics 7
I. 4. Occasional Buyer Behavior 7
I. 5. Psychographics (Lifestyle and Personality) 9
II. National Heritage in Hong Kong
II. 1. Feng Shui 10
III. THERMAE BATH SPA Promotions and AIDA Principle
III. 1. Promotion of Heritage to the Target Market 12
III. 2. Relevant AIDA Principles 15
IV. USEFUL FACILITIES IN THE SPA FOR PROMOTIONAL PURPOSES
IV. 1. Boston Consulting Group Product Portfolio Matrix 18
V. MERCHANDISING/ RETAILING OPPURTUNITIES TO CONSIDER
V. 1. Expansion to Asian Cuisine and Dining 23
EXECUTIVE SUMMARY
Thermae Bath Spa is under renovation and development funded by public and private organizations. It will aid in promotion of British tourism in particular and European history in general. However, there are marketing challenges that Thermae should confront as pro-active stance on the post-development phase where it will be operating. It will have increased market base that is global in nature. This study is found showed that Thermae can segment its market demographically (e.g. according to age), socio-economically (e.g. income groups), socio-culturally (e.g. differences in values), occasional buyer (e.g. lower-income groups) and psychographics (e.g. to show status of the well-off people). It also showed that every country has a heritage where companies can gain competitive advantage when exploited to tourists and other cultures such as Feng Shui tradition in historic China and Hong Kong. Third, the paper indicates how Thermae should promote its products using global geographical structure to maximize European heritage of the city of Bath where Thermae is located. In relation to this, marketing concept AIDA principle is evaluated based on the needs of the promotional activity of Thermae. Also, the paper used marketing models like Boston Matrix to evaluate the product line opportunities of Thermae where spa services remained to be the “star” which means it is high in cost and high is revenue portfolio. Although spa services are considered immune to competitive attacks, merchandizing opportunities in South East Asia (SEA) foods are evaluated and researched to entertain the highly mobile and lucrative purchasing power of the Asian population.
I. TARGET MARKET OF THERMAE BATH SPA
I. 1. Demographic Characteristics
The historical attributes of the water in the spa can attract people with hard-to-cure or incurable illnesses especially if they are obvious in skin, hair and external parts of the body. In addition, those who have curable but currently carrying certain external body diseases would also try to plunge in the miraculous spa. However, with three-decade long stoppage of medical prescription about the healing features of the spa, tourists from other countries especially those outside Europe would not likely be attracted with this feature unless they have family, friends or once exposed to the historical explanations of the spa. With this, European population is the most likely target market of the healing characteristic of the spa.
Those who are honing therapy sessions either physical or emotional can relax in the spa. In this veil, the spa management can bring-up ties with medical and rehabilitation institutions to maximize the opportunity. Those who have just finished an operation can improve their physical condition or those who are from emotional hardships can breathe well with the warmth and relaxing environment. In addition, scars from the operation or new-born delivery can also improve their physical conditions by “getting-in” in the spa. New-born babies and their mothers can also join services of the spa to increase emotional attachment. Those who are emotionally disturbed can be refreshed and also would view the world as a good place because of the scenery in the spa.
The water spa can also attract tourists who have just finished their European tour or cruises. The idea that their tour stop or perhaps conclusion will lead to a relaxing warm water relaxation is a good campaign. The rigors of long travel and seeing different tourist spots in Europe can be exhausting that each European package tour should be concluded with a visit in this historical spa. This is the best alternative for the hindrances given by health claims to attract tourists as warm water is really refreshing and relaxing a real good conclusion to finish the tour. For the Europeans, this campaign can cause regular (e.g. monthly) visits especially those who are working, old and carrying certain diseases. In effect, they will obtain a satisfaction from multiple spa objectives.
Those with families can use the spa as a regular place to relax, reunite and spend time with children. The warm and historic environment of the spa can set the right phase to give each other’s care and devotion. Children can feel that they are being loved and provided with warmth two-times than the regular home environment. Consequently, parents would have certain fulfillment of their role as child-raisers. For the couple, such environment can trigger affection to refresh and renew their old time relationship where sweetness and caring is the basic tenet. Historical places will set the mood to comeback to the past and reminisce happy and unforgettable moments.
For those who are single, young and always out of their homes/ families, the populous spa area can serve as the breeding ground to plant their emotions and adolescent tendencies. They can have a different out-of-town trip with their friends and partners in which the “couple-effect” above can also apply. This is a new environment far from the usual malls, pubs and party clubs which is the usual destination of these youngsters. In addition, the relaxing water can mitigate stress from families, studies or/ and part-time jobs. There is less need to be drunk because the warm water can serve as alternative to have a peaceful time of relaxation.
With the same rationale, oldies can use the spa site to meet their old-time friends and meet new ones. As they are usually segregated with their families or they are living in institutions, the populous site can provide the right place to feel that they are still included in the society because they can mingle with other people and have friends. In effect, not only that they can try the historical healing abilities of the spa but also be healed with its emotional and physical attributes. This admonition makes the elder people prone to be the best market of the spa because of their regular need for relaxation, source of health enhancement and improving their societal compatibility. With the increase of electronic communication and reduction of face-to-face channel, older people who have less knowledge or interest in e-communication can certainly impose regular visits to the spa. The stagnating population in Europe and its ageing population is also a great opportunity to increase the market of the spa.
I. 2. Socio-Economic Characteristics
Upper-income bracket is the primary market of the spa especially if they are tourist. This is because tourists who are below this class may not put emphasis of the place in lieu of other European sites that are more popular such as Eiffel Tower, London Bridge or the Big Clock including popular European cities such as Paris, London or Brussels. In contrast, those who are well-off financially can extend their trips to the city of Bath and get the services of the spa. In addition, going back to work will not make them too anxious unlike the working class because they are capitalists in their home countries which mean they can afford not to submit in any corporate-structure or be held accountable.
Their role as the primary market becomes more important if they are honing hard-to-cure illnesses not only on the external body but also include internal ones (e.g. cancer, heart diseases, etc.) which undermines their financial status. The inability to use such status would underpin their interests to visit the spa and would not stop until their illness has improved or has totally healed. This situation is a support to the development of other value-based investments near the spa targeted to the high-end market. For example, this group can access the spa services and can also purchase other disease-improving products (e.g. medicines and skin moisturizing soaps) to maximize the effect of the healing water. In this regard, the mushrooming of medical centers, hospitals and other institutions would be encouraged.
Middle-income bracket is a partial and rather irregular market for the spa. This is because there are other popular sites within Europe or miraculous spots in the Middle East. This makes the city Bath a second option to them for both vacation and healing purposes. The limited income of this bracket will also undermine other services available in the spa that will minimize the improvement of other tourist centers. However, this group can be an attractive segment if they can support their lack of buying power with their volume. They can schedule a group tour (e.g. for academic purposes) where their number can maximize the several services in the spa which would include representatives from the high-income bracket. Alternatively, the value of the services that the large scale tourists paid could meet the value of the services of their well-off but small number of high-income groups.
Because of their volume, middle-income groups can also aid in “filling” the empty spaces of the area to suggest other customers that the spa is a real tourist attraction. They can serve as an additional marketing tool for the spa which can provide savings for the management. They can also use word-of-mouth to their home countries that can increase the probability that the high-end segment participation can gain acceleration. It is like that the marketing campaigns of the management are supplemented with cross-border alliance unintentionally. With regards to European people, this group can have a greater chance to be a regular market base because of less transportation costs and historical relevance of the city of Bath to their cultures and preferences.
I. 3. Socio-Cultural Characteristics
Most of European population is Catholics and Christians which are re-classified by official religions. Since the city of Bath and the healing abilities are highly-inclined with miracles of the Divine, there exists high potential to attract the market easily. This segment will comprise the initial market of the spa after the development project. On the other hand, tourists are hardly bounded by religious beliefs especially if the emphasis is put on vacation and relaxation. The healing abilities of the spa can serve as a minor feature for those with a contrasting religion but will recover once historical merit and other services are obtained. Perhaps, the cultural constraints with regards to healing abilities of the spa is not a significant point as healing is intended for those that are old, with incurable diseases or believers. Religious sensitive customers can divert their primary objective in learning the history of Europe and appreciating the relaxing and beautiful features of the spa.
I. 4. Occasional Buyer Behavior
This group can be comprised by the traveling middle-income bracket that is usually given a chance to travel few times in their lifetime. They can also be old foreigners who would like to see the history of Europe and give-out appreciation. Relaxation, healing and social interaction is not the motivating force to this kind of tourists but rather the exploration part of the tour. In effect, their usual satisfaction arises from amazement of the surroundings (e.g. buildings) and also the feature of naturally-warmth of the spa. Their limited purchasing power serves as the bottleneck to regularly visit the site. In addition, for academic purposes, their exposures are limited perhaps one-time.
Another group that can be categorized as occasional buyer is the high-income bracket that failed to find a progressive improvement on their incurable illness. They can easily switch to other miraculous sites such as the Vatican City if they are not satisfied to the performance of the healing water. This is where the importance of medical centers and other attractions within the spa should be reconsidered to mitigate the probability of changing preferences. However, the possibility that they will come-back is not far-fetched that will be dependent on the performance of other miraculous sites. In the contrary, high-end market that is not necessarily dependent on healing capabilities rather on relaxation and potential health-related benefits of the spa are exempted to be categorized as occasional buyer.
Devotees of the spa who would go in the site at least annually because of the experienced improvement in health or emotional state are also an occasional buyer. They are satisfied with the features and services but are too busy, frugal and too far to regularly visit the site. This segment can also include those who have friends and relative within the outskirts and nearby cities of the city of Bath. The irregular visit can serve as an opportunity to try the healing water and enjoy the historical spots within the site. Low-income category is also prone to visit the spot especially those who are sponsored by certain institutions as a charity work or support to mainstream services. This can include a one-day visit in the spa and free acquisition of their services for out-of-the-school youths, isolated elders, paralyzed patients and others honing a certain therapy session.
I. 5. Psychographics (Lifestyle and Personality)
In this particular segment, high-income groups can be an attractive segment as the value-based services in the spa and its multi-million reinvestment is compatible to their social status. The historical scenery of the site will also enhance their compatibility to the classic and elegant European living. They would feel royal family by having an overnight with the old but applied with modern improvement of the buildings. They can also consume foods and drinks that are suitable to their tastes. A visit in the city of Bath can also indicate that they have financial stability and can afford extended European trips. D
Business people especially those that are well-established in their home countries as well as those highly-mobile businessmen would be attracted in the spa as a way of life. The area is a good relaxation alternative where the healing quotations can increase the functional utility of business people. Such idea is suited to the maximizing pattern of behavior of businessmen and other profit-oriented individuals. Every visit is an explicit indication that they are balancing their work-leisure-family domain efficiently. They will prevent boredom at work or the life itself and receive social and physical benefits by going to the spa. The experience will expand their life portfolio.
Models, celebrities and other players in the fashion industry which is Europe in known for can use the healing features of the bath to increase their skin and beauty quality. The spa area can also serve as social interaction platform for them where the latest fashion trend can be conversed. Like typical business travelers, these icons can relax in the spa and take a break in their usual “catwalk” environment which is also helpful for the designers themselves because they often work in an intense and complex manner. The relevance of the healing water can also be applied with potential models who wish to increase their employability in the fashion industry.
II. National Heritage in Hong Kong
II. 1. Feng Shui
There are numerous points about the concurrence of Feng Shui (FS) with architecture, or perhaps, the stricter filed of engineering ( 1983; 1994; 1994; 1998; 2001). FS is practiced for several thousand years within Chinese and other agreeing cultures that it inevitably played vital role in civilization and even sustainable development. FS schools and concepts also have merits in addressing some theoretical and modern built requirements including similarities with the Western approach. However, as local cultures continually suffered “identity shocks” due to globalization and technological diffusion ( & – 2004 ), FS is seemingly called for universality and its contemporary aspects should be emphasized in order to retain, or perhaps, enhance its global acknowledgement and practice.
Indeed, there is a problem of reducing FS recognition and practice. This idea is intensified by having dynamic and multicultural universities in Hong Kong that offer architectural courses for a vast diversity of cultures ( 2006). As FS is deeply ingrained and fixed in Chinese history and way of life, Hong Kong universities with an “open-minded” approach to enrolment and teaching could entail self-defeating strategy. To some extent, FS protects the Chinese culture from the overlapping Western and American imperialism. The effort is eminent with Mainland’s political and military ownership in Hong Kong and the former gradual but conservative acceptance to international economy.
Hong Kong is bounded with two distinct cultures; namely, Chinese and Western. Due to this, although at least 90% of the population has Chinese descents, the recognition and practice of FS is blurred especially noting that the country has developing individualistic attitudes which is a shift within the limits of the former collectivist culture ( 2004). The country has also one of the liniest open-economy where foreign traders can easily penetrate the local market ( 2003). This aggravates the blurredness of what will be the future of FS would be. On top of this, certain local universities such as the University of Hong Kong are maintaining a flexible approach in teaching architectural students ( 2006). In effect, social, economic and educational factors are seemingly detaching from FS continuing development and proliferation.
According to (1997), each dominating political ideology, economic principle, legal system, or perhaps the delicate religious order descends from an existing and dominant culture. The former are merely spots within a bigger latter. To rebuild a new culture entails exhaustion and elimination of a minority culture by a more dominant one ( 1996). As FS has natural and cultural values that significantly contributed to a stable and sustainable agricultural civilization in Mainland China ( 2001 ), the seemingly declining support of Hong Kong to its existence can indicate how the Western culture overtaken the Chinese culture. This can have policy implications not only for the country but also on the Mainland.
III. THERMAE BATH SPA Promotions and AIDA Principle
III. 1. Promotion of Heritage to the Target Market
Global functional structure is intended to integrate the functional departments of the company in the areas of production, marketing, finance, etc. This structure is lucrative for companies that has products/ services that does not face fierce and numerous competition, has market leadership and able to innovate ahead of competition. These features are very important for the company that is integrated by departmental functions because once competition delivers greater amount of innovation it will benefits of the strategy below its costs. Simply put, the lack of flexibility and local responsiveness in this structure overtakes the economies of scale and functional specialization because the market has a relative choice that can deliver their needs. Therefore, brand image is the most important aspect of this structure as it posts loyalty that can reduce competitive attacks on the company’s leadership.
Global product or divisional structure address the shortcomings of the functional structure especially when global markets are dispersed that require diversified product lines and different technologies. Although undermine economies of scale, its primary advantage is rapid growth in a specific market segment that can involve partly economies of scale especially when market characteristics are similar in more different countries. The strategic business unit (SBU) will concentrate on the needed response to specific markets by having its own functional design. As the design is intended to solve recurring improvements, markets are not only created but also maintained.
Global geographic structure is concerned with regional clustering of markets in different countries where marketing strategies are top priority. The product/ service do not necessarily designed to response to the needs of a particular market rather select a particular country which can absorb or accept their product/ service. The focus is trying to get the market base on strategic selection on where to introduce the product then subsequent marketing campaigns to solicit customer loyalty. Therefore, innovativeness is undermined by market knowledge, which is, determining the first the nature of the strategic problem before making a strategy on largely marketing aspect. As a result, market research and substantial marketing will serve as costs while simplicity in structure without the need of sharing resources and responding to local needs are the potential benefits.
A matrix structure is the combination of the three structures that is described as very complex and hard to implement in reality. In this structure, the functional, responsiveness and geographic characteristics of the earlier structures are integrated to come-up with an optimal strategy. However, this structure can pose managerial and accountability problems since there are too many supervisors in the organizational structure. They are scattered in the global management to administer innovation, responsiveness and geographic issues. However, having a dynamic structure have several problems in terms of complexity and lack of internal control and this is proven is many cases.
As a conclusion, the spa should adopt global geographic structure to be able to maximize the heritage assets found in the spa as well as the historical landmarks and building in the vicinity. There is no need to adopt the model of the original spa structure because this may be costly for the management which would not be returned by the slim customer base who are used to come-up with the design change. In addition, designing the original structure to the needs of a certain target market may reduce the impact of the historical surroundings that the spa is located. There will be lack of compatibility that will demise the role of the city of Bath in European’s history. In effect, governmental support will be lifted and the management is left alone in funding and taking the risks of the market.
Retaining the original structure of the spa will also retain its heritage value as European tourist spot. In addition, with the European design intact, different nationals, tourists and target segments can appreciate the area. This would lead to higher customer base and increase in visitors. As the market base increase, the cross-border marketers through word of mouth of the spa will also raise deepening importance of quantity rather than quality (e.g. services and structures designed for Americans) of customers. In addition, the European style of the spa and also the ambience can minimize the cultural hindrances that some foreigners may be constrained which lead to non-interest to the spa and the heritage. This is because as a tourist they are bound to observe respect to the structures as an outsider in European territory.
III. 2. Relevant AIDA Principles
Attention is important for the spa to penetrate foreign markets and European citizens that have little knowledge and interest with the historical landmark. Through advertisement and publicity, the spa can encourage first-timers as well as increase loyalty of common clients because of the increase penetration on different market segments. Regular clients would exemplify increase in interest as they are confronted with additional colleagues that will patronize the spa. This idea is concretize as new services and other important establishments will mushroom in the outskirts of the spa due to higher visitor volume. Also, with attention, irregular customers will have a second thought regarding their first and seasonal visit in the spa as its services and historical attributes are being talk all-over the world.
Attention can be obtained by highlighting the core advantages of visiting the spa like relaxation, healing in many sense, learning, socialization, expression of one’s lifestyle, nature appreciation, receiving warmth, doing business and mere enjoyment. Once these visitor benefits are advertised, there is an automatic market segregation in the process where families, pool of friends, educators, tourists, elder people and high-income bracket can view themselves as compatible with the services of the spa. The multi-objectives of visiting the spa can gain a general attention in all segments of the potential and actual market which can provide the maximum advantage for the management to receive populous operations.
Interest is the second stage of the AIDA concept wherein the potential market becomes leaner and actual market is proliferating. It is important as the generalized advertisement may mean little to each market segment and requires direct marketing rather mass-produced promotions. Interest is the missing factor in the attention stage because the market is merely informed and feedback from them is not yet recognized and accounted for evaluation of the recent campaign. Interest is indicated by queries, access to spa’s website, letter of intent, request for quotation, request for spa’s layout, and request for location map of going there. Without these occurrences, the effectiveness of attention stage cannot be evaluated properly. In effect, interest stage is the output the management of the spa is expecting from the attention effort.
Interest can be supported by word-of-mouth marketing from former and current customers of the spa. In fact, this can be the most crucial channel in which interest is marketed because as the saying goes “Experience is the best teacher”. Therefore, recommendation from the family and friends is important to the growth and stability of the spa and to obtain interest from its target market. Alternatively, management can induce promotional campaigns such as free entrance for children within a certain age limit to motivate the whole family from coming in the spa. Another, a package tour that is complete of every service (e.g. plane trip, hotel accommodation, food, spa access, etc.) in the visitor’s city Bath trip can be offered to minimize the problem of travelers in selecting the suitable travel agents or contacting their peers within Europe to assure that their trip will be “hassle-free”
Desire is a complex and ambiguous aspect of AIDA that the management would evaluate. Even though the query and interest stage provided the benefits of the spa that a certain customer wanted to obtain (e.g. relaxation), it is possible that there is a hidden agenda behind the trip. For example, the explicit objective of a visitor is relaxation but he is carrying a skin illness. He should be telling that he is in need of the miraculous water at the spa but preferred not due to religious constraints or just avoidance of being “different” and unusual to the eyes of the management and other knowing customers. In effect, desire is not relevant to in the development/ renovation stages of the spa because it may only distort visitor forecast and may not accurately indicate the volume of visitors and their potential service interests.
Lastly, action should be the final task and the focus of the AIDA principle. Every input that has been applied with the attention and interest phase should be re-checked in the ability of the spa to accommodate and provide the promised services. Advertisements are easily believed by foreigners especially if they do not know the culture and values of the European media and also the spa management. Problems in communication due to inability to filter implicit codes or gestures could destroy potential marketing success of the attention and interest phase. Therefore, action should be referred continuously which will necessitate monitoring operations and skills of the people/ workforce within the spa. Any difficulty and lacking in the operational situation of the company should change the methodology and element of marketing and promotional campaigns.
IV. USEFUL FACILITIES IN THE SPA FOR PROMOTIONAL PURPOSES
IV. 1. Boston Consulting Group Product Portfolio Matrix
Low growth (cost) and high share (revenue) is characterized by indirect services of Thermae which are healing water and historical buildings. As a cash cow, they generated higher revenues than costs from which their surplus was used to finance other products. The entry of non-European customers to Thermae promises an increase in demand of board and lodging aside from the spa-related services. To note, non-European customers relatively receives higher income than resident ones making them busier at work, thus, lesser time preparing “brown bags”. In addition, non-resident customers that do not have vehicles could use the bus service to send them to other hotels at a fair price that somewhat can create an operational integration for the benefit of Thermae.
To exploit the situation, Thermae will renovate larger cafeterias located within the chalets to prevent overcrowding and maintain customer satisfaction of foods. In addition, menu will be extended to include wide varieties of food choices that might introduce the untouched value of hot teas and coffees. Cafeteria renovation should be fast to take advantage of the outsiders’ demand. Renovation will be made in alternating manner, first at the base chalet and then the midway. Not accommodated customers will be suggested to go to restaurants or perhaps Alpine could install temporary cafeteria in the “brown bag” houses. The latter move is possible because resident skiers that mostly comfortable using “brown bag” tables would tend to be in small quantities at the moment because of the ongoing expansion of advanced terrains.
On the other hand, bus quantities should be increased in efficiently manner either purchasing second hand buses or renting them. They will operate exclusively for Thermae customers at peak periods especially on Christmas season and loosely, whenever which route within the state is deemed profitable, during off-peak periods. Repair and maintenance would increase but so is the bus income share.
High growth (cost) and low share (revenue) is portrayed in the partnering with travel agents, aid in the development of buildings and creation of jobs. As problem child, these activities consumed a lot of resources with long term potential. Most of its revenues were offset by professional fees excluding office supplies and other overhead expenses used in the tutorials. High cost was not primarily in financial matters, but more importantly, the under-utilization of the venture’s capabilities. Development of buildings and job creation should be the second priority, next to spa tickets and season pass, of Thermae to capitalize on spa enterprise. There should be instructions for all spa levels located within chalets, terrain and run areas. This progress would not only improve the revenues and maximize the potential of such areas but also can create additional value for non-European customers that are in-need of spa information.
The implementation is simple but creative. Professional spa servers will be invited for advanced spa tutorials, perhaps, once a month or as demand arises. Before the invitation, planning and scheduling is necessary for cost-efficient professional tutorial. This would support most of the European residents and other experienced non-resident spa customers and maximize the use of the terrain and run dedicated for advanced spa customers. On the other hand, especially at peak seasons, qualified Thermae workers could instruct at novice and intermediate levels that are most probably non-resident spa customers. To support this second idea, there will be audio-visual demonstrations of basic servicing techniques located at the base chalets while intermediate skiing techniques will be played on smaller but terrain-accessible midway chalets. Audio-visuals could be enhanced by actual demonstration of qualified workers. Thus, the process could minimize overhead costs in using function rooms, professional tutors’ fees during off-peak or low-demand seasons and the number of required teaching personnel.
High growth (cost) and high share (revenue) was eminent in Thermae’s primary offerings of spa services. As stars, they have potential to become good income in face of competition. The completed phase one of landmarks management recommendation was focused to enhance the capacity of the area to cater most of non-European customers either having intermediate to advance spa serving needs. However, this would contend the services of other competitors. It is to be considered that as private and profit-oriented corporations with multi-million investment, they had likely planned to avoid competition with Thermae cost-leadership due to government support and largely global scope. Thermae’s expansion to outside markets and foreign spa clients beleaguered its comfortable position. It could be driven out of the market if these companies would engage in a price war. With pressure to recoup investment on expansion, Thermae would have to increase prices that could lead to its loss on cost-leadership. To obtain its competitive advantage and avoid the unwanted situation, management should simplify its offerings against recent strategies aimed to provide different products to cater different markets.
Employing the tactic, Thermae should consider the history-long success of time-tested loyalty of European residents. It is a partially not-for-profit organization that releases it from the pressure to earn more. Besides, the provision of minimal fees and European-like family orientation of basic spa enjoyment are the task to prioritize. Preferring to limit its product to novice and intermediate spa customers could also limit the anxiety over Thermae’s financial difficulties on expansion. On the other hand, experienced resident skiers could temporarily choose other value-for-money spa areas.
The decrease in European demand, at least at the experienced level, entails the accommodation of outsiders who are characterized relatively as beginners compared to resident customers. The strategy is not by any sense anti-European instead strictly focusing on the phrase “basic” spa experience. Besides, within two years, some proceeds of the operation could be dedicated to expand the advanced terrains and upgrade amenities of Thermae. This action would also give Thermae enough time to lobby to government and private institutions’ intervention and funding. The waiting time would be a two-tiered, win-win scenario for European residents. First, they could retain the low-price service entitled for European aborigines. Second, they could benefit from new and better advanced terrains and amenities.
There are surely residents that would give negative reactions to this strategy; however, public forum can best solve conflicts to the seemingly aggrieved Europeans. Opinions will be studied with government officials and public institutions’ presence. If the latter are willing to give considerable amount that could expedite advance features without increasing Thermae’s prices and exhausting its limited liquidity, the management could immediately start the expansion. Otherwise, other options could be discovered along the forum, if necessary consecutive forums, in which each stakeholders should have a say and agree in their individual responsibilities and accountabilities.
V. MERCHANDISING/ RETAILING OPPURTUNITIES TO CONSIDER
V. 1. Expansion to Asian Cuisine and Dining
The primary marketing arms of the company to introduce the new product to other South-East Asian (SEA) neighbors are the tourists themselves. According to statistics, an estimated 7.9M tourist arrives in Malaysia annually which pours estimated B revenues. Because of this, the Thermae may see opportunity to benefit from the lucrative tourism areas in Asia and also healthy and profitable tourism business. With Asian focus, Thermae will basically serve the following market segments: namely, business, adventure, special-interest, honeymoons and sightseeing Trips; high Income travelers; budget-conscious travelers; families, students and seniors; and Asian/ non-Asian foreigners.
The company will offer personalized and budget foods inside the spa hotel. So businessmen from different SEA countries can enjoy the food of their own. The business will not live to fight low prices from competitors near the hotel but assures to have clean, convenient and “anti-racial discrimination” cuisines at a competitive price. It will not spoil its infancy trying to become the market leader within the vicinity. The important vision of the company is to attain the reputation of the only restaurant that offers “universal plate” for every citizen in South-East Asia. Also, it will not compete against other restaurants located at the adventure- and nature-based hotels of the country; rather, it will get the approval and loyalty of businessmen in the company’s view of the diversification prospects in other parts of the SEA.
In leisure places, people are not likely to think business, or even ponder about the name of the restaurant or taste of the food they have eaten. Their minds are occupied by comfort less with thinking. While in the urban place, businessmen are in focused, sensitive and sophisticated state of mind. They can easily recognize the smell, taste and aesthetic appeal of the dishes. As they go over their agenda and business plans, they must enjoy good food and service. The company will offer indigenous foods, teas, juices and some varieties of wine and liquor from SEA countries that people there considered favorites and vintage. Since most of the SEA countries are adept with spicy foods, this seasoning will cover most of the dishes. Line of cuisine is plenty maybe five types of favorite dish a certain country consumes will be made available.
FOOD FACTS
Political
Economic
Socio-Cultural
Technological
Brunei
Long-term leadership likely to be politically stable; Separate law governing system for Muslims and Non-Muslims
3% unemployment rate; 0.3% (2003) inflation rate; Brunei:$ 1.69 (2004); government provides free education and also subsidizes housing and rice; Focus in petroleum and natural gas results in only 10% of labor force in agriculture; No income tax; fre health care and pension
Relatively low population of 0.3M (2005); One half of which are temporary residents; Malay 2/3, Chinese 15%; Islam; Life of an average Bruneian revolves around Islam
Telephone service is excellent:
Burma
No guarantee of fair public trial; Democracy and human rights are harassed; Existence of rampant black market and unofficial border trade; Second largest producer of illicit opium in the world
Limited access to credit by the people
42.9M population; Any celebration connotes for a show, usually drama; 85% of Burman are Theravada Buddhist; Burmese is the predominant language
Telephone service barely meets the requirement
Cambodia
Existence of multi-party democracy; Investors feared dysfunctional legal system and political instability
Tourism is 15% up in 2004; 75% of population is in farming; 40% of the population is in poverty line
13.6M pop (2005); Most are Buddhist; 65% of pop are women; It also very common to see 3 or 4 generations living together; Education more important to men than women
Expensive and inadequate communication facilities in most parts
Indonesia
Recently change leadership in 2004; Armed separatists in some parts; Rampant corruption
Net-importer in 2004; High unemployment, poor infrastructure, fragile banking sector and unequal distribution of resources to other regions; Textile design is rampant; Recent tsunami killings and property destruction worth B
241M population mostly are Muslim; Over 300 languages are spoken
Telephone service is fair
Laos
Encouraged private enterprises in 1986; Established low tariffs in exports to United States; Poor military
80% of pop in subsistence agriculture; Inflation rate is 12.3% (2004); 1/5 of the pop live in urban, half engage in rice cultivation and live in rural areas
6.2M pop (2005); Well-defined social structure, differentiating between royalty and commoners; Lao-Lum 2/3 of population spoke; Three-fifths of the population adheres to Theravada Buddhism; Elite spoke English and French
Telecommunications is poor but improving
Philippines
Threats of communist rebels in the Southern part
Less affected by Asian countries due to M OFWs remittances; High oil prices, inflation and interest rates; 11.7% unemployment
85M (2005) population mostly Roman Catholic
Adequate telephone service
Singapore
Corruption-free environment
One of the world’s most prosperous countries with strong national trading links; Highly developed and with successful free market economy; Stable prices, GDP comparable with Big 4 of Western Europe, 3.4% unemployment; Zero labor force in agriculture
4.4M (2005); English is widespread; Diversity of races present; Old Singaporeans are keen with Chinese Opera
Excellent telecommunications; Half of the population is net-users
Thailand
Currently facing armed violence in its three Muslim-majority southernmost provinces
Increased consumption and investment spending with strong export growth; In 2004, a major tsunami took 8,500 lives and caused massive destruction of property; Labor force mostly in industry and services; 1.5% unemployed; Inflation is 2.8%(2004);
65.4 (2005) mostly are Buddhist commonly Theravada; Monks are common sights; Tolerant in behavior as long as not intend to insult someone
High quality system of telephone service
Vietnam
Committed to economic liberalization committed to economic liberalization; Experiencing ethnic protest
1.9% unemployment; 9.5% inflation
83.5 M (July 2005); Viet and no religions; Exercised triple religion: Confucianism, Taoism and Buddhism; Language is Mon-Khmer which is a combination of Tai and Chinese elements
Improving telecommunications
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Credit:ivythesis.typepad.com
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