Strategies For Improving Maruia Hot Springs’ Marketing Strategies

SWOT Analysis

Strength-the organization is now under new management (Australians and New Zealanders) which is focused on renovating the organization’s infrastructure through the gained wealth experiences from other hot springs. This will lead to the repackaging and development of new offering that will define the organization’s product service delivery. Additionally, Maruia Hot Springs is located in the beautiful Lewis pass national reserve surrounded by pristine primary native beech forest and rugged high mountains which is a beautiful attraction site for tourist in the long run(Dobbs, 2014).

Weakness-there is a high organization ineffectiveness and poor managerial practices that have led to a high employee turnover rate. moreover, the lack of a vision and mission statement further deteriorates the proper directive of the firm to achieve its goals and objectives and have’ an increases market share over its rivals.

Opportunities – the industry is growing and more consumers are looking for more experiences than the regular bathing services offered at the firm. This gives Maruia an opportunity to tap into additional service market of the industry that will increase its consumer base which will lead to an increased revenue generation in the long run. Moreover, the development of the infrastructures on the primary native beech forest and rugged high mountains will complement the organization’s natural environment which will increase the organization consumer base (Grant, 2016).

Threat- there is strong competition from the successful hot springs that are gaining momentum in the market. Moreover, their rapid growth and development in the industry are allowing them to premium services for the high-end consumers which have increased their revenue generation in the long run. consumers in this industry often have a change in taste and preferences which is guided by the growing future trends that require the firm to adapt to these changes effectively in order to stay on par with the competition in the market (Dryglas, 2016).

Supplier bargaining power-the supplier power is generally higher in regions that have few players in the industry, however in regards to Maruia hot springs the supplier is generally low as the management is able to purchase services from suppliers that meet, they quoted prices. Moreover, there are many suppliers in the industry offering different quality and prices ranges that make it effective for the organizations to choose a supplier who meets their intended quality and price in the long run. Therefore, the supplier power in the indirectly through the organization’s perspective is low (Dryglas, 2016).

Buying bargaining power- most consumers view such a destination as a form productive meeting. reward or vacation, their choice depends on the offerings or the experiences they want to achieve. additionally, identifying Maruia springs as a destination it means that the consumers will adhere to the publicized prices of the various products and series offered by the organization. Therefore, this literally means that the buying power is generally through the organization’s perspective

Competition-. there is strong competition from the successful hot springs that are gaining momentum in the market especially in the overseas. Moreover, their rapid growth and development in the industry is allowing them to premium services for the high-end consumers which have increased their revenue generation in the long run (Erba? and Perçin, 2015),

Porter’s Five Forces

The threat of substitution – being a small business, the firms faces the threat of consumers switching to other firms due to the availability of other products and services that the Maruia hot springs don’t have. Moreover, this could be fueled by the differences in prices and location of the organization as well as the growth and the devilment of foreign firms and hotels that offer similar products overseas.

The threat of new entrants – The thermal or minerals springs industry is growing at a high rate where 2013-2015 the industry experienced a 10.4% growth translating to the 51-billion-dollar industry. However, it is expected the industry will grow to a tune of 4.8 % annually up to 2020. This presents an opportunity for new firms to establish themselves in the markets with an easy and effective transition to the future and growing trends that meet consumer change in taste and preferences. Therefore, this will result in a significant reduction in Maruia market share if the firms do not take drastic measures to counter the threat of the new entrants.

Vision statement- to ensure guest are exposed and connected back to nature while offering memorable experiences and in the long run, growing to become the leading hot springs in New Zealand and the neighboring regions by 2030

• To reduce the employee turnover and improve on the human resource and management practices that will lead to effective and quality product service delivery.
• repackaging and development of new offerings that will define the organizations increase in consumer base which will lead to an increase in revenue generation and an increase in the industry share in the country.

Demographic segmentation-this is the grouping the various variables or a subset of the populations into age, gender family size or income. However, in regards to the Maruia hot springs, its subset in demographic segmentation of the market is mainly based on income and family size variables. Income due to the fact they most of the products that are currently offered are the middle-class society who are able to afford the prices set. Moreover, due to future renovation, the firm is planning on introducing premium packages that will focus on high-end consumers. The family variable is also crucial as most families travel during the holidays in order to spend time with their loved ones since more than half of the bookings made are from families going on vacations.

Behavioral segmentation- this market segmentation divides the population based on the buying patterns i.e. behavior, usage, and decision-making pattern. For example, as the case of the firm, there are many consumers or tourist who seek services offered by the spring often during the summer than in the winter. Therefore, this makes it easy for the firm to adapt to this buying pattern by recruiting more employees based on contracts so as to adapt to the low seen ad ensue minimally loses are gained.

Psychographic segmentation- depicts the  lifestyle of people, their activities, interests as well as opinions to define a market segment. However, aspects of behavioral segmentation are also put into consideration in regard to consumer buying patterns based on consumers lifestyle, social standing as well as Activities, interests, and opinions. Therefore, there is a tourist whose interest and opinions relate to the firm’s products and services such consumers are essential for the growth of the industry.

Geographic segmentation- geographic segmentation isolates the market based on geography. This kind of market division is critical for the advertisers as individuals from different areas have diverse prerequisites. they may have distinctive motivations to utilize indistinguishable item from well. Geographic segmentation enables the firm to draft customized adverts for prospective consumers in order to lure them into visiting the hot springs. This plays a major role in increasing the consumer base as well as the generation of revenue.

Market Segmentation

Demographic segmentation -the targeting strategy that can be used here is the Differentiated (Segmented) Market Targeting since the firm is focused on targeting the family subset and the income subset. Income due to the fact they most of the products that are currently offered are the middle-class society who era able to afford the prices set. Moreover, due to future renovation, the firm is planning on introducing premium packages that will focus on high-end consumers. The family variable is also crucial as most families travel during the holidays in order to spend time with their loved ones since more than half of the bookings made are from families going on vacations. Therefore, this will allow the firm to design advert and campaigns that are aimed at luring these segments to the hot springs which would be to increase revenue generation and consumer base in the long run (Liu et al , 2018).

Behavioral segmentation- the targeting strategy that can be used here is the Concentrated (Niche) Market Targeting since the firm is focused on targeting similar patterns of consumer behavior that will be essential in defining the future of the industry. The niche targeting will assist the firm in focusing on the key elements that will determine the change in buying patterns and what has initiated the behavior .this will give the firm an opportunity to respond appropriately in the future.

Psychographic segmentation- like behavioral segmentation the targeting strategy that can be used here is the Concentrated (Niche) Market Targeting since the firm is focused on targeting similar patterns of consumer behavior that will be essential in defining the future of the industry. However, in this case, the targeting strategy will additionally focus on consumer lifestyle, social standing as well as Activities, interests, and opinions. Therefore, there is tourist whose interest and opinions relate to the firm’s products and services such consumers are essential for the growth of the industry these tourists will be studied and targeted through effective responses such as an advertisement, development of infrastructure in the organization’s environment to compliments the needs of the consumers (Alt and Iversen,2017).

Geographic segmentation- the targeting strategy that can be used here is the Micromarketing – Narrow Market Targeting since the firm is focused on identifying the consumers who are regulars at the firm and finding their place of origin. After this identification, the firm can initiate promotional strategies focused on reaching those locations as well as their surrounding areas and luring prospective consumers to the destination which will lead to the growth and development of the firm.

Target audience-visiting tourist who visit New Zealand are generally the target audience

The frame of Reference – Hot springs (category of the industry or reference of the brand purpose in the market)

Point of difference- most compelling or motivating that brand can own is” Connect with nature as your sauna and bathe in mineral hot springs and take in the views of the river and surrounding mountains while later Indulge in the middle of this picturesque national reserve and explore the area on a number of hiking trails around the property”

Vision Statement and SMART Objectives

Reason to believe- gives you the ultimate experiences

Position statement -For all tourists visiting New Zealand , Maruia Hot Springs is the best hot springs facility that allows you to Connect  with nature as you sauna and bathe in mineral hot springs and take in the views of the river and surrounding mountains, while  Indulging later in the middle of the picturesque national reserve and explore the area on a number of hiking trails around the property, because only Maruia Hot Springs gives you the ultimate experiences.

Price strategy- this refers to the value of a product or service preferred in a facility like Maruia hot springs which mainly. It depends on the costs of production, segment targeted, the ability of the market to pay, supply – demand and a host of other direct and indirect factors. However, pricing must be flexible to cater for both the middle class and the high-end consumers by creating quality packages that cover the middle and the high-end consumers, this will lead to increased consumer base and the development of the firm in the long run.

Product strategy- this refers to the actual service or packages being sold to consumers’ in the facility. First and foremost, the products or service offered must be of quality and delivered with effectiveness so as to prevent damage to the brand. This strategy will be essential in ensuring the organizations ensures it has an effective product service delivery (Cross, Belich, and Rudelius,2015).

Place strategy- the strategy will assist the firms in making accessibility of the facility easier and better through the deployment of effective means such as the use of helicopters of high-end consumers and collaborating with the local government in ensuring the roads as maintained a sustained from time to time. This will ensure consumers have an easy time when heading to the destination.

Promotional strategy- acquiring and retaining a consumer is significantly different and difficult at times. Through the use of promotional strategies, the firm can come up with packages that have a discounted price for loyal consumers so as to motivate them to continue with the relationship with the firm. Moreover, it is essential to create awareness of the firm’s brand, product and service to the public through the use of conventional media such as TV and Radio or through the use of social media channels. This will play a long way in increasing the consumer base and loyalty in the long run (Dobbs, 2014).

Process – the delivery of the service by the firm matters to a client who as paid a significant amount of money. It will determine if the client is satisfied or happy with the service offered at the facility and whether he or she will promote the brand or tarnish it in the process. Therefore, this strategy is entirely focused on ensuring the firms has quality product service delivery.

Physical evidence -regardless of the service being tangible or intangible there must be proof of physical evidence where the facility can showcase some of its infrastructures to the world thigh the use of their offal website, brochures as well as the use of advertisements such as billboards which are conspicuous enough. This prevents any suspicion that may arise when making payments for bookings

Target Segments and Targeting Strategy

People- employees must have effective and the right set of skills in order to achieve customer satisfaction and build a stronger relationship. However, it essential to implement employee performance monitoring and identify gaps that can be fixed through additional training and seminars in order to ensure quality product service delivery.

Build an action plan team- a designated team will be initiated in order to identify any possible amendment to the identified strategies, It will comprise of 12 members 4 from each department (finance, administrator, marketing,) which will be headed by the research manager

Finding the gap- this is basically mapping the gap between the firm current positions to the intended position in future. This will be efficient in determining and developing appropriate goals objectives that will lead to the growth and development of the firm (Hubbard, Rice and Galvin, 2014).

Identify the consumers- mapping of the consumers through engagement and interaction where identifying a common pattern that can be used to the firm’s advantage in ensuring a consistent flow of consumers during peak and low seasons

Study the market- identify the growing trends in the industry as well as the competitive advantages of the major rivals in the region

Identify the right strategies- choose the right strategies that can be implemented as soon as possible according to the current status and business environment depending on short-term and long-term mapping objectives

Build an action plan team- each department will be comprised of the head, staff and the best performer, moreover, each proceeding will be documented and presented every week at the staff weekly meeting (Cramer, 2017).

Finding the gap- the findings in this stack can be fact-checked by a third party such as a consultant practitioner or a firm in order to have an independent party in the matter.

Identify the consumers- interviews can be conducted on willing consumers and recorded as evidence of their origins which will be proved through attachment of the documents.

Study the market- this can be fact checked by other members of the departments or the hiring of an independent party.

Identify the right strategies- accountability can be achieved through fact checking from consultant or employee of the firms and identify any possible amendments.

standard: Team Participation-Fully Successful Standard in a monitoring  program that monitors the  elements at five levels (to meet this standard, all of the bullets listed must be present or occur):

• Each team member should typically demonstrate a willingness to assume other responsibilities as needed;
• Each team member should generally share knowledge of office procedures/equipment with other members of the team.

Fully Successful Standard in a monitoring program that monitors the elements at five levels (to meet this standard, all of the bullets listed must be present or occur):

 Therefore, the research manager must be satisfied that

• The methods used to conduct research and analysis must be scientifically sound
• The methods used to conduct research and analysis must accurate

team implementation report- this tool will be essential in recording the activities conducted by the team members with regards to the ongoing implementation process in the firms which will keep the research manager on par with the process (Nguyen, et al, 2018)

Budget control tool This tool is essential in the monitoring and control of funds that have been allocated to each task. This will prevent a scenario where there might be a misuse of funds in other tasks, therefore, delaying the whole process.

Positioning Statement and Market Research

Internal stakeholder-Board of directors is a good example of an internal stakeholder they play a significant role in developing policies that are implemented by the department heads in order to ensure the firm is on the right track towards achievement of goals and objectives (Stacey, 2016).  

External stakeholder -government entities in the region and the city have interest in the organization’s activities and how affects the community as well as the surrounding environment as it regulates policies and standards that have to be followed (Eshuis, et al 2015)

Involvement- stakeholder involvement is very crucial to the success of the firm, it allows timing of policies development and implementation. Moreover, solving the arising or pending issue is far much easier and effective when stakeholders are involved in every critical aspect of the firm’s activities (Pinheiro, 2015).

Use of communication plan- the effective use of a communication plan will allow a review of the methods that will be used for communication with the stakeholder. Additionally, this will create a continuous dialogue which with all stakeholders where they will be receiving information concerning the firm and giving inputs as well (Hawn and Ioannou, 2016).

References

Alt, J., & Iversen, T. (2017). Inequality, labor market segmentation, and preferences for redistribution. American Journal of Political Science, 61(1), 21-36.

Cramer, J. (2017). Corporate Social Responsibility and Globalisation: an action plan for business (pp. 43-57).. Routledge.

Cross, J. C., Belich, T. J., & Rudelius, W. (2015). How marketing managers use market segmentation: An exploratory study. In Proceedings of the 1990 Academy of Marketing Science (AMS) Annual Conference (pp. 531-536). Springer, Cham.

Dobbs, M. (2014). Guidelines for applying Porter’s five forces framework: a set of industry analysis templates. Competitiveness Review, 24(1), 32-45.

Dryglas, D. (2016). STRATEGIC POSITION OF A TOURISM DESTINATION IN THE LIGHT OF SWOT ANALYSIS: A CASE STUDY OF NEW ZEALAND AND AUSTRALIA SPA RESORTS. Proceedings of the GEOTOUR 2016, 116.

Erba?, E., & Perçin, N. ?. (2015). Competitive Importance Performance Analysis (CIPA): An Illustration from Thermal Tourism Destinations. Business & Economics Research Journal, 6(4).

Eshuis, J., Braun, E., Klijn, E. H., & Zenker, S. (2015). How Stakeholder Involvement Influences the Impact that Place Marketing Has on Other Policy Fields. In The 3rd Institute of Place Management Conference 2015.

Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition4(2), 30-45. John Wiley & Sons.

Hawn, O., & Ioannou, I. (2016). Mind the gap: The interplay between external and internal actions in the case of corporate social responsibility. Strategic Management Journal, 37(13), 2569-2588.

Hubbard, G., Rice, J., & Galvin, P. (2014). Strategic managment: Thinking, analysis, action (pp. 43-57). Pearson.

Liu, J., Liao, X., Huang, W., & Liao, X. (2018). Market segmentation: A multiple criteria approach combining preference analysis and segmentation decision. Omega, 24(1), 32-45.

Nguyen, N. M., Killen, C. P., Kock, A., & Gemünden, H. G. (2018). The use of effectuation in projects: The influence of business case control, portfolio monitoring intensity and project innovativeness. International Journal of Project Management, 36(8), 1054-1067.

Pinheiro, R. (2015). The role of internal and external stakeholders. In Higher Education in the BRICS Countries (pp. 43-57). Springer, Dordrecht.

Stacey, R. D. (2016). The chaos frontier: creative strategic control for business (pp. 43-57). Butterworth-Heinemann.

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