ASSIGNMENT:

(CASE STUDY)
BANYAN TREE: DESIGNING AND DELIVERING A BRANDED
SERVICES EXPERIENCE

SUBMITTED TO:
DR. SAMAR RAHI
SUBMITTED BY:
KAINAT TANVEER
ROLL#
MBA21MBA052
PROGRAM:
MBA
SECTION:
A
SUBJECT:
SERVICE MARKETING

HAILEY COLLEGE OF BANKING & FINANCE

UNIVERSITY OF PUNJAB LAHORE
CASE STUDY BANYAN TREE

CASE STUDY
BANYAN TREE: DESIGNING AND DELIVERING A BRANDED
SERVICES EXPERIENCE
QUESTION # 1: What are the main factors that contributed to banyan tree’s Success?
ANSWERS:
Banyan Tree is basically a well-known and recognized resort and spa business in Asia. The
company was founded 1994 by Ho Kwon Ping and his wife Claire Chang. The company has 38
resorts and hotel, 79 retail galleries and 67 spas and 3 golf courses in 28 countries. Marketing
tagline Sanctuary for the sense. Following factors that contributed to banyan tree’s Success:
 Despite having minimal advertising, Banyan Tree achieved a global exposure and a
high level of brand awareness through the company’s public relations and global
marketing programs.
 Success factor of them was they accurately identified the gap that existed in the hotel
industry specially the Hilton ($340) and Shangri-La could not fulfil. There was a market
segment that wanted private and intimate accommodation.
 The other factor that leads to the success of the resort was the price gap between the
Aman resort ($650 to more than $ 7000) and other luxury resort that made HO the
founder for offering an innovative niche product that could bridge the price gap between
the markets.
 Target market for Banyan Tree Hotels and Resorts is the upper-class audience. The
services offered by the company are of premium quality therefore the customer is
charged higher prices for the romance and intimacy offered by Banyan Tree. The
customers for the spa are the premium and rich people who look for high quality of
services, food, and recreational activities. The target audience includes new wed couples.
 The success of the banyan tree is the service and offerings the concept of sense of place
to reflect enhance culture and heritage of destination
 Success of banyan tree: Offering the wedding packages and beautiful location of
Maldives dine in facility themed packages for people Thai musicians and other unique
services in natural setting Involving the local community also leads to the success of the
banyan tree and preserving the environments
7 Elements of service marketing also leads towards the success of Banyan tree because these are
efficient kind of promotional techniques for the success of business.
Product (Intangibility): Unlike the most other resorts then, BANYAN TREE RESORTS
comprised individual villas that came with a private pool, Jacuzzi or Spa treatment rooms etc.
BANYAN TREE offered a variety of aromatic oil massages, & face and body beauty treatments
using traditional Asian therapies.

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CASE STUDY BANYAN TREE

Price: Prices will vary as compare to its competitors, because they want to fulfill the gap of
sharp prices between Aman & Shangri-La Hotel. Bayan Tree resorts prices categories between
$600 & $1200 for the resort in Phuket & between $900 & $3500 for the resort in Seychelles.
Place: BTHR (BANYAN TREE HOLDINGS LTD with only one resort in PHUKET. After
the success of this the company worked quickly to build 2 other resorts:
 BINTAN ISLAND in Indonesia
 VABBINFARU ISLAND in Maldives
Introduced the new brand ANGSANA in 1999 in Dusit Laguna. Launched color of Angsana
resort & Spa, complete with an Angsana Gallery. Two hotels were launched under the color of
Angsana at China & Sri Lanka.
Promotion: Despite having minimal advertising, Banyan Tree achieved a global exposure and
a high level of brand awareness through the company’s public relations and global marketing
programs. Push strategy & pull strategy:
 Travel Magazines, Billboards, Select internet Sites
 Heritage & cultural view (sense of place)
 Public relation (TV travel shows, publicity in news etc.)
 Direct marketing (travel agents; suggest to clients)
Positioning: Continue with Banyan tree success
 Distinguished Luxury Resort Brand
 Positioned towards target market (Wealthy families, Retired Couples & Honeymooners
 Grow company’s current image
Differentiation (Be the leading luxury resort for competitors)
 Direct competition with existing highly premium quality of resorts and also with news
entrance)
Physical Environment:
The large canopies of the banyan tree also showed semblance of the shelter afforded by Asia’s
tropical rain forecast. HO & Chiang thus decided to name their resort Banyan Tree, & position it
as a “Sanctuary for the Senses.” The stage for guests to create unforgettable memories.
Process: BANYAN TREE’S website www.banyantree.com increasingly drove online bookings
and provided vivid information on the latest offerings of banyan tree’s fast-growing portfolio.
The management of marketing activities was centralized at its headquarters Singapore in order to
maintain consistency in brand building.
QUESTION 2: Evaluate banyan tree’s brand positioning and communication strategies.
Can banyan tree maintain its unique positioning in an increasingly overly crowded resort
market?
ANSWERS:

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CASE STUDY BANYAN TREE

Banyan Tree’s Brand Positioning:

"Brand positioning is an attempt to create and maintain a unique representation of the brand in
customer's mind, a representation that is expected to stimulate choice of that brand”. “Brand
positioning is an attempt to create and maintain a unique representation of the brand in
customer's mind, a representation that is expected to stimulate choice of that brand".
The idea of Banyan Tree was conceptualized when Ho Kwon Ping and his wife Claire Chiang
were staying at Banyan Tree Bay, also known as Yung Shue Wan, a small fishing village on
Lamma Island in Hong Kong. From an early start in 1994, Banyan Tree Hotels & Resorts has
grown into one of Asia’s most successful hospitality brands with numerous international awards
and accolades from publications like the prestigious Condé Nast Traveler and others.
Most of the resorts are initiated in isolated areas that expose the clients to quite environment. The
luxurious resorts are expensive & sport oriented while Banyan tree is less expensive and peaceful,
marvelous and romantic environment for customers.
Banyan Tree based on STP model:
Segmentation:
There exists a market segment that wanted private & intimate accommodation without the
experience of glitzy chain hotels.
Filled the price gap between the luxurious Aman Resorts (US$650-US$7000) and Shangri-La
hotel (Below US&350)
Build a resort comprising individual villas, exotic in architecture design and positioned as a
romantic and intimate escaped for guests. Banyan Tree Hotels & resorts were designed around
the concept of providing “a sense of place” to reflect & enhance the culture & heritage of the
destination. This villa is especially for 30-40 years of people, who are busy in their schedules so
they can come here to spent quality moment together. The segmentation is linked with
Customer’s analysis (Market trends & Needs of the customers)
Targeting:
Target market for Banyan Tree Hotels and Resorts is the upper-class audience. The services
offered by the company are of premium quality therefore the customer is charged higher prices
for the romance and intimacy offered by Banyan Tree. The customers for the spa are the
premium and rich people who look for high quality of services, food, and recreational activities.
The target audience includes new wed couples.
 Large sized income families in their 30’s to 40’s
 Evolve into global niche player
Targeting relates with Market focused strategy because services are wide range and market are
limited. Targeting is relating competitors’ analysis.

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CASE STUDY BANYAN TREE

Positioning: Create a strong image in the mind of Elite class. Positioned towards the wealthy,
couples looking for relaxation, Banyan tree positioned itself towards niche market to get
competitive advantage. They provide a lot of services like private pool, spa treatments, wedding
ceremonies underwater among corals, banyan tree galleries, etc. All these exclusive things create
positioning against services in the mind of customer.
Communication strategies:
International advertising agency was hired for the company’s marketing communications.
 Designed the banyan tree logo
 Came up with marketing tagline “Sanctuary for the sense”
 Initially extensive advertising was carried out for the short period of time to gain
recognition in the industry
 Then advertising in high end travel magazines in key market
 The advertisement was visual in nature.
Brand awareness through public relations and global marketing programs
 Relationships with travel editors & writers
 Website
 Targeted wealthy customers through agents
Unique positioning:
Sustainable development in growth of business.
 Unique service experience at banyan Tree
 Appeal to the Senses
QUESTION#3: Discuss whether the brand portfolio of Banyan Tree, Angsana, & Cassia,
as well as product Portfolio of beach resorts, services Residences, city hotels, spas, galleries,
& museum shops as a family. What are your recommendations to Banyan Tree for
managing these brands & products in the future?
Answer:
CENTRAL THEME: The romance of travel & the beauty of discovery of discovery the world.
Banyan Tree targeted the higher end of the luxury resorts market. The Banyan Tree brand
portfolio has increased comprising different Business lines, target groups and price segments.
Angsana: The first Angsana Spa was opened in 1999 at Dusit Laguna. Angsana was more
mainstream & contemporary, targeting wider market. Leveraging its strong brand equity, Banyan
Tree extended the brand to launch Angsana in 2000. In 2003 this company launched a unique
museum to get attention of consumers and, in 2015, 79 banyan Tree Galleries, heritage collection
by Bayan Tree.

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CASE STUDY BANYAN TREE

Cassia: While expanding the company’s network of hotels & resorts, spas, & retail outlets:
Banyan Tree holdings limited launched a new brand. Cassia, an exciting & bold new proposition
in the serviced apartment sector which targets the Asian middle class.
Product portfolio: Diversified portfolio of hotels, resorts, spas, galleries, golf courses and
residences are centered on award-winning brands such as Banyan Tree, Angsana, Cassia, Dhawa
and Laguna that offer exceptional design-led experiences in 48 properties and 13 countries
around the world.
RECOMMENDATIONS:
 Opening its platform to other sectors
 International Expansion
 Allow the customers to buy products for home
QUESTION# 4: What effect does the practice of corporate social responsibility have on
brand equity?
Answer:
There is Positive impact on Corporate Social Responsibility, because the wife (Claire Chiang) of
Ho Kwon Ping a strong advocate of Corporate Social Responsibility. Local Community involved
with Banyan Tree holdings. Company directly relates with public relations
 Use of local traders (Supply of Indigenous materials)
 Local Artisans (Traditional art and handicraft)
 Local Farmer and traders (purchase fresh produced)
 Whenever possible, the company supported other regional tourism ventures that would
benefit the local wider community & the visitor’s experience.
 Active caring for the natural & human environment
 Waste water also treated
 Minimized the impact on the environment
 Resort was built from scratch
 Toiletries such as shampoo, hair conditioner were non-toxic & biodegradable & filled in
reusable containers.
QUESTION#5: What potential problems do you foresee bringing Banyan Tree to the
America, Europe, & Middle East? How could banyan Tree address those issues?
Answer:
Cost would increase in sections such as America & Europe and quality of services would
decrease.
Banyan is doing business in its own traditions and heritage, as we know very well Traditions and
cultures are vary from each other’s country. In America & Europe the standard of herbs &
spice is different from those in Asia.

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CASE STUDY BANYAN TREE

Another problem can arise that is language issue because Banyan tree holding is Singaporean
company and the languages are English, Tamil, Malay and Mandarin Chinese.
Another 3 barrier will be religion Muslims in Middle East may have different moral code &
lifestyle with Asian.
Some of the behaviors are normal in Asia but can be regarded immoral in Middle East.
Banyan Tree can localize the middle manager and form a team of legal analysts to make sure all
of the services provided in Middle East is legal and moral.

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