CASE STUDY – I

The success of fabulous Anantara resort and Spa in Thailand is due to its effective marketing mix.
Firstly, the product they offer is unique. The location, in Thailand’s Golden triangle, allows visitors to see three
countries in one day and it is easily accessible. The resort offers five-star accommodation, a cookery school
and imaginative educational excursions, mahout training (learning to ride an Asian elephant) and exciting treks
through unspoiled forests.

Prices are to cover the costs of running the resort including keeping the elephants in the best
conditions and to make enough profit to meet the overall targets of the resort. Some of the profits are
donated to elephant conservation projects; in addition, pricing decisions are influenced by comparative prices
in other resorts, although Anantara claims to offer so much more than the typical resort location.

Promotion and advertising include publicity gained through travel companies brochures and some paid
for advertising in quality newspapers and magazines aimed at high-income travellers. In addition, free
publicity has been gained as the mahout training has attracted the attention of TV companies and daily
papers. The impressive website is another important form of promotion as it is both very informative and
persuasive by generating a quality image selling of Anantara holidays is mainly achieved through two main
channels. Firstly, block or wholesale bookings are sold to tour company operators and, secondly, the resort’s
own website is used for direct selling to tourists – avoiding the need to pay commission to other agents or
companies. All part os the marketing mix fit together well to present a coherent unique image to potential
tourists.

QUESTIONS:

1. List what you consider to be the key marketing decisions referred to in this case study.

2. Why it is important for all of these decisions to give tourists the same unique quality image of this business?

3. Why do you think the resort’s website is so important to successful marketing of the resort?
CASE STUDY – II

Try it, you'll like it: Sampling

Sampling has emerged as a critical marketing technique for a long list of companies, from Starbucks
and Stew Leonard’s to Viva and Vitamin Water. In a bid to broaden its appeal beyond lovers of espresso and
similar beverages, Starbucks recently introduced its everyday Pike Place Roast coffee with free 8-ounce sample
cups in all of its 7,100 U.S. stores. During the same week, some McDonald’s units in Starbucks’ hometown of
Seattle began offering free samples of the new McDonald’s espresso and latté drinks—an attempt to attract
consumers who want something more than an everyday cup of coffee. This is only one example of McDonald’s
using sampling to encourage trial of a new menu item. For instance, when it offered samples of its new
premium roast coffee, the company experienced a 15 percent increase in chain wide coffee sales.

Many fast-food restaurants have found sampling to be effective in inducing trial and purchase. For
instance, Wendy’s once held a nationwide hamburger sampling tour to attract noncustomers by giving away
thousands of free hamburgers at special events along with gift cards good for free hamburgers in local
Wendy’s restaurants. “It’s one thing to talk about a hamburger,” says a Wendy’s executive. “It’s another thing
to actually try it.” Pizza Hut held “Free Slice of Pizza Day” not long ago so that customers could try its improved
hand-tossed pizzas. On the first day of spring, Dunkin’ Donuts gave away 3 million cups of iced coffee
throughout the country to signal the start of the ice-coffee-drinking season.

Stew Leonard’s, a grocery chain based in Norwalk, Connecticut, always has some sampling going on in
its four stores: free cups of chicken chilli or clam chowder handed out at the front entrance, fresh-squeezed
orange juice offered in the produce section, and free cookies piled high in the bakery section. “It’s an
expensive form of advertising because of the extra labour and staff involved,” says the CEO. “But it’s also good
business. We usually double or triple sales of featured products.” And, he adds, customers who try something
and enjoy it may very well buy it the next time they shop at Stew Leonard’s.

Kimberly-Clark has used sampling to get consumers to feel the softness and strength of its Viva paper
towels. In thinking about how to give away a single paper towel as a sample, the company’s advertising agency
suggesting stitching it into magazines like Every Day with Rachel Ray and Reader’s Digest so that readers could
rip the towel out and try it for themselves. At the same time, Kimberly-Clark arranged to distribute Viva
coupons at supermarket checkouts. These kinds of marketing tactics have helped Viva boost market share and
become the number-two brand in the paper-towel market behind Bounty, the market leader.
 Kimberly-Clark has used sampling to get consumers to feel the softness and strength of its Viva paper
towels. In thinking about how to give away a single paper towel as a sample, the company’s advertising agency
suggesting stitching it into magazines like Every Day with Rachel Ray and Reader’s Digest so that readers could
rip the towel out and try it for themselves. At the same time, Kimberly-Clark arranged to distribute Viva
coupons at supermarket checkouts. These kinds of marketing tactics have helped Viva boost market share and
become the number-two brand in the paper-towel market behind Bounty, the market leader. room keys.
Others are the focus of contests and experiential activities. Students who participate in the “Sand Castle
Demolition” contest stomp through sand structures and dig deep for hidden bottles of Vitamin Water, for
instance. In Neutrogena’s Acne Stress Control tent, students can try out Acne Stress Control Power-Foam
Wash, register to win a big gift basket of samples, and stay for a free massage. Marketers also use these
contacts as an opportunity to research students’ likes and dislikes, shopping habits, and brand preferences,
looking for insights that will make their sampling programs even more effective during next year’s spring
break.

Case Questions

1. Why is sampling a good marketing tool to influence low-effort decisions?

2. In terms of choice tactics, explain the risk that Starbucks takes if consumers who sample Pike
Place coffee do not like it.
3. Why would Kimberly-Clark arrange to distribute coupons in supermarkets at the same time that
it had Viva towel samples stitched into magazines?
4. What role might normative influences play in the product decisions made by students who

receive samples during spring break?

CASE STUDY – III

STA TRAVEL INSURANCE

Juliana Valencia, La Trobe University
“Because anything can go wrong when travelling’
STA Travel is the world’s largest student travel organisation and prides itself on providing real value and
flexibility, genuine advice and first-hand experience in helping students travel to over 90 countries. STA Travel
offers numerous travel products such as flights, accommodation arrangements, land travel products, overseas
support and student’s cards as part of its dedication to providing young travellers with products and services
that make travel fun, affordable and safe.
One of the core product that STA Travel offers is travel insurance, which it has develop in conjunction with
industry partners that cater specifically to its travel market. The insurance plans that are offered as a result of
this alliance cover trip cancellations, interruptions, delays, lost or stolen baggage, delayed baggage, sickness
or accident, emergency evacuation, and accidental death and dismemberment. Travellers also receive 24-
hours travel and medical emergency assistance and emergency cash transfer services.
The choice to buy insurance as well as the travel of cover varies, and often depends on the needs of
consumers and the recommendations given by travel agents. Other factors such as the travel destination, what
valuable consumers take with them, safety and security concerns, the activities that the consumers are likely to
participate in and the consumers’ overall budget affect the decision to purchase travel insurance can vary
significantly depending on the type and length of travel as well as number of travelling companions.

Insurance: to take or not to take up?

Travellers, whether domestic or international, can suffer many possible misfortunes such as robbery, injury,
hospitalisation and even death. Such misfortunes can by caused by the traveller’s lack of familiarity with the
destination, lack of travel experience or just simply bad luck.
Although STA Travels strongly recommends travel insurance and promotes its benefits extensively some
consumers opt not to purchase it. For example international students may not purchase when travelling back
home for a holiday due to familiarity with the destination, a sense of security and perhaps already having some
form of insurance back home. But if their travel is disrupted by flight cancellations or loss of luggage, they
would not be compensated.
On the other hand, other consumers purchase insurance of they believe that its ability to solve a problem is
worth more than the cost of buying it and the hassles involved with trying to get a claim refunded. The point at
which consumers decide to purchase insurance occurs when they sense a difference between what they
perceive to be the ideal versus the actual state of affairs. It is at this point that consumers recognise that they
may actually have a need for insurance.

What do consumers need to know?

Insurance within the travel sector can be very broad, complex and detailed. There many companies providing
similar products. Which makes the search for specific information difficult? This means that consumers need to
embark on extensive information searches before deciding whether or not to take up travel insurance and
which one. as a result consumers may go through high levels of uncertainty before choosing a travel insurance
product.
During this phase, consumers may turn to the internet in order to compare different insurance provides. They
may also consult family and friends as well as other travel agents in order to seek different opinions.
STA Travel agents are obliged to offer travel insurance to every consumer but the consumer must choose
which specific policy they wish to purchase. When making bookings, STA Travel agents provide consumers
with a brochure that extensively covers the issues related to travel insurance policies. At same time, the
consumers are strongly advised to read the product disclosure statement and policy wording, and are
encouraged to ask questions and make further enquiries.

Choosing the type of insurance cover

Consumers can choose from a wide range of STA travel insurance policies.
Comprehensive insurance
Comprehensive insurance provides the highest level of insurance cover that a consumer can
purchase. There are five different levels of comprehensive plans that cover all destinations around the
globe. These policies can be purchased by non-Australian residents who are in Australia at the time of
purchase.
Visiting mates or relatives
This policy has been designed for those travelling to stay with friends or relatives overseas. It provides
medical, cancellation and personal liability coverage but doesn’t cover personal belongings (except in transit).
Such a policy recognises that consumers don’t need as much cover when they are staying in the homes of
people they know, as opposed to hotels or other types of travel accommodation. It is only for Australian
residents.

Travel lite
This policy suits the price-conscious consumer who wants a reasonable level of cover for medical,
cancellation, personal liability and luggage.

No frills
These plans are for younger consumers who are travelling with the bare essentials and want no-frills cover.

Acquiring travel insurance

After carefully weighing up personal needs and travel factors, consumers are able to purchase a specific policy
to suit their needs. STA Travels customers in Australia can purchase their travel insurance on-line, over the
telephone or by visiting any STA Travel branch. As an incentive, a 10 percent discount on any policy is offered
when the insurance is purchased from STA Travel.

Questions
1. As a potential traveller, how would you go about deciding whether or not to purchase travel insurance?
Incorporate the Consumer Decision Process model in your answer.
2. What are the basic strategies STA Travel could use to assist potential consumers’ need recognition
when considering the purchase of travel insurance?
3. Do you think that travel insurance is a low- or high-involvement product? Give reasons to support your
answer.
4. As a marketer at STA Travel, which stage of the Consumer Decision Process model do you think is the
most relevant and critical to consumer deciding on purchasing travel insurance? What would you do to
assist the consumer in these stages?