Market Environmental Factors
While the luxury lodge appears to be a profitable business model, the operation of OML is actually fragile to many market environmental factors.
First at all, the public’s attitude towards animal protections can have great influence towards OML’s big-game reserve business. Since the big-game reserve is a lucrative cash flow for OML, it is highly possible that more and more followers appear on the market, leading to more animals sacrificed. If the number of animal shot keeps increasing, the public will show aversion towards OML and thus force OML to considering again about its big game reserve service. In addition, if laws or regulations that aim to protect animals suddenly become more severe, OML may have to close the big game reserve. Partly relying on safari shooting to gain cash back, OML needs to find out other cash cow service in a short period if certain animal-protection laws or regulations come out.
Secondly, the restriction on the usage of territorial air space will also force OML to cancel or limit the supply of its helicopter trips service, which is an important part of its service package. Considering the safety issue and noise problems, local government may come up with regulations with specific restriction on the private helicopters. Thus, OML have to redesign its package or way to provide helicopter trips service.
Third, an intense market competition may push OML to improve its service quality, to come up with new recreational service and to spend more efforts in business development and customer relationship maintenance. Currently, in the local luxury recreation market, there are limited number of suppliers who are able to provide service that can really satisfy the rich travelers’ high standard as many rich travelers often complain about the comparably low standard. Therefore, OML’s large space and service can be a competitive advantage. However, if more participants come into the market with similar standard of facilities and services, OML may be unable to operate smoothly as it currently does. There may be price wars due to homogenous competition. Competitors may all work hard to hire talented designers and managers to help enhance their attractiveness. Meanwhile, marketing and business development will be vital for OML.
OML’s Global Strategy and Customer
Global Strategy
Because many rich travelers are unsatisfied with the facilities and service quality of New Zealand’s luxury accommodations, OML pays great attention on facilities and service. For instance, it adopts high-quality South Island furniture and fittings, arranges ten full-time staff and two seasonal guides and provides diverse recreational activities. With the top-ranking quality, OML relies solely on positive comments from customers. In other words, its main global strategy is to secure a high quality service to satisfy its customers and to motivate its customers to recommend it to more people.
Market Segment Characteristics
OML targets at the world’s very wealthy, such as movie stars, successful entrepreneurs and etc. Although the population of the market segment is very small, the purchase power the targeted customers are amazing. Usually, price isn’t an important factor for them when choosing among different luxury recreational service providers.
They demand high reliability, quality and a wide range of service.
Quality is essential to those super wealthy. Having experienced different services, the very wealthy people are hard to satisfy as they have a much higher standard than the majority.
Since a lot of the very wealthy are celebrities, they demand high reliability as they don’t want to leak their private daily schedule to the public and they also don’t want to be disappointed by the misleading advertisements. Thus, they are more likely to believe the recommendations from their friends who also belong to the very wealthy class.
A wide range of services is vital for them since limited choices of services are too boring for them and won’t make them feel interested. Diverse services can better satisfy their need.
Current Marketing Mix
The price of OML is around NZ$700 per night. OML provides customers with high-end facilities and services located at a quiet and large area with attractive landscape. The OML is well-designed and provides a wide range of recreational activities trying to meet needs of different types of customers. At present, OML doesn’t have any specific promotion plans other than relying on interpersonal recommendations from the previous customers.
Courses of Actions to Secure Success
Estimate the Maximum Operation Capacity
Since OML currently solely relies on previous customers’ positive comments, the customer experience is a determinant for OML’s success. To promise good customer experience, OML must make sure that the very wealthy customers won’t complain about the service. If they choose a service, they won’t get bored or disappointed. One of the most important method to avoid such unpleasant things to happen is to make sure OML runs within its maximum operation capacity.
With limited landscape, services and number of staff, OML should come up with the maximum number that it is able to provide service at once. In that way, the very wealthy won’t feel desolated or boring.
Create CRM System
Even the former customers are really satisfied with the service, it is not sure that they will recommend the OML to others. Therefore, OML should establish a CRM system which can inspire the former customers to spread the message. The CRM system can not only record customers’ personal information, feedback and other data but also provide new information and delivery promotion activities to previous customers.
For instance, since the targeted customers are hardly price-sensitive, OML can come up with some exclusive rooms, activities or events that are fancy but only accep