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B Y : K A W I N , N E T I , A M O R N R A T, P A N U , P A T,

Industry Overview
INDUSTRY SIZE INDUSTRY GROWTH

Hotel & Resort Market 300 trillion baht (Kasikorn res.)

Expansion rates 20102011


35% 30% 25%

Market share contributors

20% 80%
SME-owned
Industry Background

20% 15% 10% 5% Non- SME


Company

29% 21% 15%

0% South
Customer & Competition Issues & Objectives

North

East

Recommendations

Thailand Tourism Market Value


600,000 600,000 432,000 500,000 400,000 300,000 200,000 100,000 411,429

17% 555,556 Growt h

5% 168,000 Growth
144,127

8% Growth

2010 Market Value 2011 Market value

2011 Market value 2010 Market Value Thai Foreign Travellers Travellers Total

Industry Background

Company

Customer & Competition

Issues & Objectives

Recommendations

Cost

Value

Product/ service differentiation

Koh Kood Cabana


Company Background

KOH KOOD CABANA


Founded in 1993 by Mr. Sommai P.

Located in Trat province


The first-ever resort on Koh Kood Island Koh Kood Island Recognized as one of Thailands most beautiful beaches Possesses authentic beauty and privacy
Mission Statement
Koh Kood Cabana offers one-of-a-kind relaxation and affordability to the adventurous, passionate, yet budget travelers who seek a real natural atmosphere.
Industry Background Customer & Competition Issues & Objectives

Company

Recommendations

SUSTAINABLE COMPETITIVE ADVANTAGE DISTINCTIVE COMPETENCY


Private atmosphere Long private Beach front

Very Natural
Food

Industry Background

Company

Customer & Competition

Issues & Objectives

Recommendations

SERVICE RECOVERING STRATEGIES

KKCs Goal

To satisfy customers by providing them exceptional service quality

- Cuisine freshly prepared by the in-house restaurant - An array of complementary services - Well-equipped facilities

Industry Background

Company

Customer & Competition

Issues & Objectives

Recommendations

A BOTTOM-UP APPROACH
Key to KKCs success: Providing a healthy service culture to keep up with the aggressive beach resort industry

Satisfying the guests with the promised level of service


Service feedback from front-line service staff Empowerment of employees Open discussions with the owner Employee training sessions

Industry Background

Company

Customer & Competition

Issues & Objectives

Recommendations

CORPORATE STRATEGY

Political situation (Red vs. Yellow shirts) Seasonality (low and high seasons)

Target more Thai customers

Train and recruit occasional employees

Increase customer Provide more and loyalty satisfactionrooms and tents

Low awareness level Where is Koh Kood?

Improve communication methods, emphasis: Increase awareness of KKC first-mover authenticity and competitiveness locationKoh Kood

Industry Background

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Customer & Competition

Issues & Objectives

Recommendations

Industry Background

Company

Customer & Competition

PRODUCT & PEOPLE


Issues & Objectives Recommendations

Accommodation

Activity

Employee

Industry Background

Company

Customer & Competition

Issues & Objectives

Recommendations

ACCOMODATION

Industry Background

Company

Customer & Competition

Issues & Objectives

Recommendations

Accommodation

Activity

Employee

Industry Background

Company

Customer & Competition

Issues & Objectives

Recommendations

ACTIVITIES

The Klong Chao Waterfall


Free transportati on back and forth By truck or speedboat.

Snorkeling
Speedboat accomodat ion 1.5 hours to dive Gears are provided.

Karaoke
Dinning zone mini stage with free of charge

Eating Experienc e
Thai cuisines: seafood for lunch and dinner and internation al breakfast
Issues & Objectives

Others
Kayak boats Beach chairs Beach football and volleyball Sand castle building
Recommendations

Industry Background

Company

Customer & Competition

Accommodation

Activity

Employee

Industry Background

Company

Customer & Competition

Issues & Objectives

Recommendations

EMPLOYEE

10 FULL-TIME EMPLOYEES

SEASONAL EMPLOYEES

High turnover rate

Inexperienced and unqualified

Industry Background

Company

Customer & Competition

Issues & Objectives

Recommendations

PLACE

Industry Background

Company

Customer & Competition

Issues & Objectives

Recommendations

KOH KOOD CABANA

84 km southeast of Trat
105 sq. km area

Second largest island of the Koh Chang Marine National Park


Fourth largest in Thailand

Tapow Beach on the west coast Long white sandy beaches approximately 800 m.
Industry Background Company Customer & Competition Issues & Objectives Recommendations

PLACE ADVANTAGES
Isolated island from city lights Boasts real relaxation atmosphere unlike Pattaya or Phuket

PLACE DISADVANTAGES
Electricity not serviced in the area Underground water insufficient during summer and for heavy consumption

Industry Background

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Customer & Competition

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PRICE
Industry Background Company Customer & Competition Issues & Objectives Recommendations

PRICE & PACKAGE TOUR


Initial pricing strategy based on land costs plus the expected profit/year divided by the forecasted customer demand INCREASE IN COMPETITORS

Pricing strategy based on competitor pricing

Current accommodation outdated versus that of competitors

Ranked rank as a 3star resort

Industry Background

Company

PRICE LOWER THAN COMPETITOR


Customer & Competition

Issues & Objectives

Recommendations

KOHKOOH CABANA 3 Day, 2 Night Pricing package


Air-condition Bungalow Air-condition Bungalow VIP Deluxe (Bungalow) Tent Car park Children: Age 4-6 years (discount 50%) Children: Age 7-10 years (discount 25%) 5,500 Baht/person 6,000 Baht/person 6,500 Baht/person 4,200 Baht/person 100 Baht/ 3 days 2 nights

The above charts are suggested package recommended by Koh-Kood Cabana. It includes Speedboat takes customer from Trat pier to KohKood. All you can eat breakfast, lunch, supper, dinner Snorkel diving, visiting Klong Chao waterfall, Karaoke singing Speedboat takes customer back to Trat pier
Industry Background Customer & Competition Issues & Objectives

Company

Recommendations

PROMOTI KOH ON KOOD


CABANA

Industry Background

Company

Customer & Competition

Issues & Objectives

Recommendations

Clear blue sea, White sandy beach, Azure blue sky


Industry Background Company Customer & Competition Issues & Objectives Recommendations

Online reservations via the resorts Website Participation in travel fairs Limited marketing campaigns to advertise the resort No strategic marketing campaigns to directly capture the target group No supportive media to attract potential customers when exposed to competitors media in getting in touch with their customers

PROMOTION
Industry Background Company Customer & Competition Issues & Objectives Recommendations

PROCESS & PROGRAMMI NG

Industry Background

Company

Customer & Competition

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Recommendations

SERVICE BLUEPRINT
Physical Evidence Customer Actions Onstage Contact Backstage Contact employee employee actions actions
Make reservation for guests Carry guest bags and stuff to the boat - Driving boat -Prepare adequate amount of life jackets

Support Processes

Website/Advertising/ Make reservation Phone call/ Traveling Boots Parking spot Arrive at Trat koh Lobby Carts kood cabana pier Boat Life jackets Pier at koh kood cabana Carts Caf Lobby Travel to koh kood cabana by boat Arriving at koh kood cabana Relaxing while waiting for bags and stuffs at the lobby Check-in
Company

Reservation system

Demonstrate how to use a life jacket

Take guests to the Carry bags and stuff to lobby caf lobby Serving welcome drink Tell the day schedule Process registration Assign key
Customer & Competition

Prepare welcome drink Registration system


Issues & Objectives Recommendations

Desk lobby/keys
Industry Background

SERVICE BLUEPRINT
Physical Evidence Customer Actions
Getting lunch

Onstage Contact Backstage Contact employee employee actions actions


Serving food/ Taking order Give an instruction for snorkeling lesson Serving food/ take order Serving food Entertain guests by many activities Tell the schedule for the next day
Customer & Competition

Support Processes

Caf lobby Lunch Boats Snorkels Life jackets Food Caf lobby Dinner Karaoke Live music Caf Lobby

Snorkeling trip

Afternoon Meal

Prepared food Clean up -Prepare adequate amounts snorkel and life jacket -Clean up after done Prepared food Clean up -Prepared food -Clean up -Open music/karaoke

Dinner party

Industry Background

Company

Issues & Objectives

Recommendations

SERVICE BLUEPRINT
Physical Evidence Customer Actions Onstage Contact Backstage Contact employee employee actions actions
Serving food/ take orders
Serving food/ take orders Guide the way to water fall Explain the history of Klongchao water fall Serving food/ take orders Prepared food Clean up Prepared food Clean up Driving boats/cars Prepared life jackets Prepare food Clean up

Support Processes

Breakfast Caf lobby Lunch Caf lobby

Breakfast

Lunch

Boats/Cars Life jackets

Going to Klong chao water fall

Food Caf lobby


Dinner Karaoke Live music Caf lobby
Industry Background

Afternoon meal

Dinner party

Serving food Entertain guests by many activities


Customer & Competition

Prepare food Clean up Open music/karaoke


Issues & Objectives Recommendations

Company

SERVICE BLUEPRINT
Physical Evidence Customer Actions Onstage Contact Backstage Contact employee employee actions actions
Serving food/ take order Processing check out Carry bags and stuff to boats Prepare life jackets Prepared food Clean up Registration system

Support Processes

Breakfast Caf lobby Lobby desk Keys Carts Pier at koh kood cabana Boats Life jackets Parking spot

Breakfast

Check out

Back to Trat

Driving boat

Leave

Have a safe trip back and hope to see u again

Industry Background

Company

Customer & Competition

Issues & Objectives

Recommendations

SERVICE BLUEPRINT PROBLEMS

- Key man risk - No flexibility on to serve customers needs - Activities require a large number of staff for safety purposes - Both onstage and backstage operations require good communication skills

Industry Background

Company

Customer & Competition

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Recommendations

Convenience outgoing enjoy participating in all the activities

explore the beauty of nature adventurous

10%
Foreigners

90%
Thai
Industry Background Company Customer & Competition Issues & Objectives Recommendations

Decision-making Process

Travel Desire

Informatio n Search

Alternative Solutions

Decision

Advertising Promotional Pricing Marketing Promotion

Internet Travel Agency Peers and Families

Expectatio n Motivation Needs


Customer & Competition

Companies offers

VS
Issues & Objectives

Activities Seclusion Reputatio n Location

Industry Background

Company

Recommendations

CONSUMER EXPECTATION & MOTIVATION


Customer Expectation
Real nature Clean beach Nice weather Escape from their work

Customer Motivation
- Real nature Koh Kood Cabana could provide - Calm & Peaceful - Real escape from the work life and the light and sound of the city
Industry Background Company Customer & Competition Issues & Objectives Recommendations

CONSUMER NEEDS Resort Customer needs

Product: Accommodation
Acceptable room decoration Facility work well Convenience Good Facility maintenance Safety Private Activity offers -

Weaknes s
Issues & Objectives

Industry Background

Company

Customer & Competition

Service: Employee Treat customer in good manner Respond quickly to customer request Polite Consistence service quality Good service blue print On time service Understand your customers needs and be able to meet them Friendly Customer oriented
Recommendations

KOH KOOD CABANA CUSTOMER CHARACTERISTIC

Adventurous lifestyle Loves nature Budget travellers

Industry Background

Company

Customer & Competition

Issues & Objectives

Recommendations

FIT
Adventurous lifestyle Loves nature Budget travellers

Activity such as going to Waterfall, Snorkeling , climb mountain Thai style seafood which is only place available in Koh Kood

Nice, long beach for relaxation and seclusion

Prohibition of scooter, banana boat and any kind of vehicle to minimize pollution

Fixed pricing package with activities, food, and accommodation included at low price

Industry Background

Company

Customer & Competition

Issues & Objectives

Recommendations

Travel expectation, motivation, and needs

Self-esteem development Relationship Safety and Security Relaxation


Industry Background Company Customer & Competition Issues & Objectives Recommendations

MARKET SEGMENTATION

Industry Background

Company

Customer & Competition

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Market Segmentation and Targeting


Behavioral
Leisure holidays Businesses

Demographic
25 years old ++ Income: Middle class 40% : 10,000 to 50,000 35% : 50,000 to 100,000

Psychographic
Adventurous Save the Earth Experience-oriented
Industry Background Company Customer & Competition Issues & Objectives Recommendations

THE INDUSTRY TREND


Getting away from traditional model with

BUDGET & BOUTIQUE MODEL


Budget hotel
A hotel built with the most cost efficient way Value for money Functional benefit

Boutique hotel

Focus on delivering new experiences Luxury pricing Emotional side


Industry Background Company Customer & Competition Issues & Objectives Recommendations

THE INDUSTRY TREND


Getting away from traditional model with

EXAMPLE. LUB D HOTEL

Industry Background

Company

Customer & Competition

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Recommendations

THE INDUSTRY TREND


Getting away from traditional model with
Type: Budget Boutique Hotel Location: Silom & Siam Square Targeting: Backpackers, Young Adults

Industry Background

Company

Customer & Competition

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Recommendations

THE INDUSTRY TREND


Getting away from traditional model with

Focus on the design on most of services' elements

Industry Background

Company

Customer & Competition

Issues & Objectives

Recommendations

THE INDUSTRY TREND


Getting away from traditional model with

Focus on the design on most of services' elements

Industry Background

Company

Customer & Competition

Issues & Objectives

Recommendations

THE INDUSTRY TREND


Getting away from traditional model with

Focus on the design on most of services' elements

Industry Background

Company

Customer & Competition

Issues & Objectives

Recommendations

COMPETITOR ANALYSIS

Koh Chang
55 resorts and hotels Some of the beaches are rocky in parts Crowded tourist destination

Koh Mak
25 hotels and resorts Perfect for exploring and getting close to nature, bicycle through coconut plantations along the coastline

Koh Kood 9 resorts


Well preserved island Long beach front No electricity
Industry Background Company Customer & Competition Issues & Objectives Recommendations

COMPETITOR ANALYSIS
Chanta Resort Away Resort Peter Pan Resort Captain Hook Resort

Bai Kood Resort


Koh Kood Beach Resort

Competitive advantages: More modern designs and newer accommodations versus those offered by KKC
Industry Background Company Customer & Competition Issues & Objectives Recommendations

Competitor Pricing
Resort Name
3 days 2 nights package

Rating

TinkerBell (beachfront) Shantaa (2 queensize) Captain Hook (Delux Villa) Peter Pan (Delux Villa) Suanya (Standard) Cabana (Standard) Away Resort (Delux Villa) The Beach Natural (Garden view) Ao Phrao (Sea Beach)

8,453

7,458*

6,800

6,900

6,000

5,450

5,800

5,544*

4,296*

*Room rates per 2 nights Company Customer & Competition Issues & Objectives Recommendations

Industry Background

SITUATION ANALYSIS

Being the first mover on the island Satisfying target groups with outdoor, adventurous activities CRM: Owners (Mr. Sommai)s friendliness

W T

Poor infrastructure on the island (electricity) No marketing campaign Inefficient service blue-print

Capture the industry growth Increasing marketing communications to widen customer base

Competition rise of boutique resorts Natural disasters Fluctuation of currency Political instability

Industry Background

Company

Customer & Competition

Issues & Objectives

Recommendations

Where we are
1.

Where we want to be

The resort lacks qualified employees, causing customer dissatisfaction

Employee Service Improvement and Training Operational and marketing communication development

Empowered, competent staff, acquiring a serviceoriented perspective and managing problems athand without supervision needed.

Unable to retain customers or to attract new markets


Industry Background Company

Acquire a larger segment of the foreign market, while implementing backoffice procedures to better satisfy and retain.

Customer & Competition

Issues & Objectives

Recommendations

Recommendations
KOH KOOD CABANA

RECOMMENDATION I PROBLEM

EMPLOYEE SERVICE
CUSTOMER DISSATISFACTION

Industry Background

DECREASING IN OCCUPANCY RATE


Company Customer & Competition Issues & Objectives Recommendations

RECOMMENDATION I

OBJECTIV E
Increase the customer satisfaction Rate

IMPROVE SERVICE QUALITY


Industry Background Company Customer & Competition Issues & Objectives Recommendations

IMPLEMENTATION
Tracking customer satisfaction
- Interview customers to gain feedback on their satisfaction

Set up a supervisor team consisting of ull-time employees


- Responsible for training seasonal employees to perform quality at their best attitude

Intensive training On-the-job training Promoted to fulltime employees after three years of work at KKC
Industry Background Company

Retirement benefits Additional benefits Health insurance Increase employee Higher salary loyalty Compensation packages
Customer & Competition Issues & Objectives Recommendations

IMPLEMENTATION PLAN
Service Blueprint Improvements

Offer fixed schedules of activities and Enable guests to plan their time ahead meals

Set service standards for employees for th employees to work on timely basis
Work on a timely basis to achieve customer satisfaction

Provide discounts if unexpected things occur


Prevent bad impressions and possible negative WOM

Industry Background

Company

Customer & Competition

Issues & Objectives

Recommendations

RECOMMENDATION II
To attract new customers and increase the retention rate of existing guests

Industry Background

Company

Customer & Competition

Issues & Objectives

Recommendations

IMPLEMENTATION PLAN

Trave l Desir e

Information Search

Alternativ e Solutions

OBJECTIV E
Decisio n

Destination Promotions Pictures Testimonials

Develop an effective operational back office and enhance marketing communications

OPERATIONAL DEVELOPMENT

MARKETING COMMUNICATIONS

Industry Background

Company

Customer & Competition

Issues & Objectives

Recommendations

IMPLEMENTATION PLAN OPERATIONAL DEVELOPMENT ONLINE HOTEL BOOKING ENGINE


Upgrade

Direct contact

Efficient

Room availability checking Real-time updating occupancy and rates Electronic payment and receipts Customization of order Full search capability Reporting and sales analysis

Reduce service failures!


Issues & Objectives Recommendations

Industry Background

Company

Customer & Competition

IMPLEMENTATION PLAN

BENEFITS

Increase in direct sales from the Website Reduction in administration costs Maximize room yields Increase customer satisfaction and loyalty
Industry Background

World-wide focus to increase customer


Company Customer & Competition Issues & Objectives Recommendations

IMPLEMENTATION PLAN

OPERATIONAL DEVELOPMENT

Industry Background

Company

Customer & Competition

Issues & Objectives

Recommendations

MARKETING COMMUNICATIONS

Incentive to tour agency


Give more incentive to the agent if they could bring customer on week day (e.g., higher commissions) Above the standard percentage

Set up Special Activity and To make KKC more attractive in the eyes Event
of customer we A special event/activity during weekdays No repeat activity attract customers to come to KKC Mini concerts, special chef, spa, dive lessons, shows, etc.
Industry Background Customer & Competition Issues & Objectives

Company

Recommendations

MARKETING COMMUNICATIONS - IMPLEMENTATION


Set up teams Responsible for organizing events Developing new events in response to market trends

Special events are limited to MEMBERS ONLY! Drives customers to establish membership with KKC Special rates for members Spend nights at KKC Occupancy increases

Industry Background

Company

Customer & Competition

Issues & Objectives

Recommendations

THANK YOU FOR YOUR ATTENTION!

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