Part I
Phuket or Phuket Island is situated on the west coast of the Andaman, area of the Indian Ocean. Phuket is one of most important travel destination of Thailand. It offers natural splendor surrounded by the beach and mountains. Features just like a powder white sandy beach and the stunning blue waters known as "Pearl" of the Andaman Sea.
Phuket has all facilities needed, Phuket international airport which is ready to facilitate traveler from all over the world.
Nowaday, Phuket is heart of Andaman coast traveling which is waiting for many millions of local and foreign visitor to see it.
Phuket, a location approximately 543 square kilometers or 339, 375 rai, the province is the 75th largest in the united states or second smallest of the country after Samutsongkhram province. However, it's the major island of Thailand, length of the island from north to south about 48. 7 km and the widest measurement from east to west and approximately 21. 3 kilometers. Island surrounded by the Andaman Sea with over 30 of large and small islands in its territory.
The word "Phuket" have been distorted from the Malayan "BuGit" which means mountain and the initial use of the word "Phukej" which in the language of the Tamil people means "Glass Mountain" is the term used for the Tamil people calls "Mani Klam". Besides, Phuket also has other names from days gone by such as LeamTakoh Jungceylon Silan Thalang and Thungkha etc.
Phuket is a long historic city. Before, formerly part of the Kingdom of Pornlink. Until Sukhothai age, it became a part of Takuapa town. The island had a reputation as a land of rich tin mines because the tin is the most in the united states. The chance of long-excavated within the last 500 years, metropolis was a little town at Thalang with Thai nobleman stayed and protected interests from trading with foreigner. Furthermore to mining, the rubber plantations, coconut orchards and fishery were found commonly in the island.
Later in the entire year 2328 meet up with the reign of King Rama I, a war had caused the army and Myanmar army troops had invaded into the lands west beach in Thailand from Ranong Chumporn Chaiya to Nakhonsrithammarat. While the Bangkok's armies were in battle at Kanchanaburi, cannot move troops to help out immediately. Myanmar had hit Takua Pa and Takua city and camped around Thalang city and wait to hit Prachuap. In those days, Phraya Thalang (Phaya Pimon Alya Khan) passed away recently and had not set a fresh ruler yet. His wife Madam Chan and sister named "Muk" were gathering troops and inhabitants. Help set up two large camps to safeguard city. Myanmar troops can't break through the camp, a month passed no foodstuffs supplied to Myanmar troops and withdraw all troops finally
Bravery of them in this was courage and great advantages to the country. So King Rama the fantastic ordered Royal decoration for the lady Chan as "Thao Thepkasattri" and Muk as "Thao Srisoonthorn" It is pride to the citizens of Thalang until today.
Later, during the reign of King Rama 5, he gathered the western seaside towns and named as "Territory Phukaj" and the year 2476 has been canceled territory system then changed to "Phuket Province" since then.
Today, Phuket province is divided into 3 districts named Muang Thalang and Kathu.
State its mission, vision and major goals.
Mission Statement:
"Phuket will deliver the best leisure experience as well as the fresh of environment. As the guts of diversified sanitarium and wellness tourism place, people visit Phuket to escape from confusing life stress or illness and its life can be recovered here. Phuket experience provides people back to good"
Vision Statement:
"To make Phuket and perimeter province the world's choice of relax and revitalize"
Major goals:
To drive the strategy of the Phuket province, development goals are set as following
1. Become a center for world-class marine health tourism destination.
2. To raise the quality of life of people and maintains its unique identity of the neighborhood culture.
3. Management and utilization of natural resources and environment to keep it balance and sustainable.
Analyze challenges and developments in relation to its marketing.
Phuket is one of the global most attractive travel destinations for many years and it has been developing in term of facilities, commercial and sightseeing. They are good to facilitate and support the traveler to visit Phuket conveniently. However, the environment of Phuket has been decaying gradually. The famous Pathong beach is crowded by booths shops and people caused dirty and garbage around the length of beach that reduce the beauties of Pathong in nowadays.
The rapid change of city also lead the amount of criminal and robber increasing in recent year and it's been concerned with the security of traveler both Thai and foreigner.
Challenge for development of destination marketing is how to sustain Phuket name in term of its intrinsic beauties with charming culture of Thailand and create more attractive place continuously. The chance of developing Phuket to successful travel destination isn't only create reputation to single Phuket itself. Band of provinces around Phuket can make attractive places portfolio bigger and different.
Development of Phuket before, it had been developed along with the group of city side strategically. And link in upper south provinces as well as national and international which can say that Phuket has changed in a certain level. The problem of a growing trend of tourism growth in Asia Pacific continued. Thereby enhancing opportunities for Phuket Using the prevailing base support various development opportunities that will occur relative to the following situation.
World-class tourism reputation.
Economic growth and significantly increasing of investment in the tourism and healthy and Elderly.
Linked to regional and international development (Development of travel industry also enhances the typical of local products services and educations).
Development of tourism and fishery industry.
Government supports strategically.
Alert of global environment concern standard of living and sustainable development.
To grasp existing chance, Phuket may position itself as health spa or health resort. Forest and beach resource of Phuket are attractive enough for normal travel and it can be developed typically with the introduction of the whole country but Phuket can differentiate itself and benefit from its natural resources and sightseeing. Revitalize spa or resort that target to the people who escape from disorder of metropolitan, stress or in dealing with treatment of sickness can be good story to communicate to target visitors.
Solid direction must be set and roadmap should be launched from government sector. Roadmap must gathering idea from entrepreneur around Phuket and provinces around. The band of leading resort and hotel in must be selected and pioneers to the projects as well as other investor who are professional in field of health spa or sanitarium.
Explain the destination's marketing strategies.
Background
Phuket is one of the most famous holiday destinations and has undergone rapid and investment of international healthcare. Phuket can now offer the highest standards of welfare and health care, blended with Thai hospitality. The principle of medical service with world-class hospitality warm and charming Phuket is conducive to health and fitness destination on the planet. There is certainly more to Phuket than its white sand beaches, fantastic bargain shopping, water and land sports and entertainment.
Phuket hospitals provide patients usage of highly qualified medical personnel. We emphasize that international accreditation of key factors of success and a warranty in our commitment to the best of medical services.
The rapid changes inside our world today lead us to the era thorniest issue. The entire world has changed, both positively and negatively, and development are most afraid of our humanity is the introduction of the disease. In other words, easily may say, the disease does not have any barriers; people living all over the world would have the chance to experience almost any illness or disease. And most of the time, the disease can be cured for the license period. With this belief, Phuket is the best place for treatment; we have the edge as it pertains to the availability of services. And you found that there seemed to be no time to queue or a long wait for medical treatments in Phuket.
Situation Analysis
In Thailand, health tourism is merely in the first stage and trend of growth is vague with no direction from government. However, opportunity of significantly growth is exist, from many important factors such as attractive resort town, good standard of medical services and lower cost of living. Therefore, global trend of wellness tourism is growing but Thailand continues to be laggard, big chance to satisfy demand of patient or retire folks from developed country.
SWOT Analysis
Strengths
Tourism resources are uniquely beautiful and diverse world-renowned.
Appropriate and isolated location.
A strong and diverse economical base.
The availability of infrastructure and service facilities.
Have a unique culture.
High standard of wellness and medical services.
Low cost of living and medical services expense.
Weaknesses
Security and tourist exploitation.
Participation of citizens and public mind.
Control and keep maintaining standards of service.
Dependence of foreign workers.
Appearance of an all natural earthquake risk area the tsunami.
Language and Culture Barrier
Lack of medical staffs.
Opportunities
World-class tourism destination.
Economic growth and investment in tourism, health and older people.
Traveling Thailand is strongly support from government sector.
Threats
Uncertainty of local political situation.
Instability of global economic.
International terrorism, international conflict and epidemic disease.
Obsolete of laws and regulations.
Destination's marketing strategies of Phuket could start from its resources, people and culture. This to create the complete picture of culture and leisure activities occurs spontaneously. Main strategies
Assign strategic tourism of Phuket Pangnga and Krabi. Position and this is of each provinces must stated obviously and use to communicate to target visitors.
Development competitive functions of Provinces, defines each one evidently and develop core capability, resources and commitment of neighborhood.
Encourage residents to help promote their hometown to visitor. Sponsor local merchant or facilitator doing business at their place rather than move to Bangkok.
Recommendations for this destination to pursue in the future.
Phuket is generally well known in global travel destination from its quality beach resort and natural sightseeing. Target of bringing health conscious people to take an interest to Phuket is merely to improve up communication of new story in club and sanitarium for patient and elder.
The plan of doing this could be implemented by government and placed into national development in tourism sector and keep monitoring the result and success rate among investor. Serious support from Thailand Authority of Tourism (TAT) is needed, new investor or existing player in resort industry may be supported in monetary promotion or tax policy.
The uncertainty of local political is one of major obstacle to future and influenced to sustainable development of Phuket's destination marketing. Different policy of different political parties may lead the introduction of Phuket and TAT policy support to the plan out of track. This may extremely influent decision of investor initially as well.
Comment on your learning from studying this destination and preparing the project.
Major resources of studying this destination are from internet and secondary data collected by TAT. Phuket is one of most interesting Thai travel destination and in focus of several study therefore information aren't so hard to find. The precise type of data to manipulate is the structure of process in government and it support that needed to counted on the project. Data is complex and hard to exactly verify getting the true direction of organization under any political control.
Part II
You are requested to draft a NEW strategic plan for the selected case, never to show or analyze the prevailing one. At least 8 pages
Strategic Tourism Business Plan
Select tourism products (spa)
Do the external environment analysis:
-Society (POlitical, Economic, Technology, Socio-culture, International influence)
-Task (customer, competitor, supplier, workforce, laws and regulation, shareholder)
Do the internal environment analysis:
-Structure, culture, resource (organization structure, business proprietor, shareholder, board of mgt, org culture, staff, techno and appliances)
Do the merchandise benchmarking with one competitor
Do the product and market positioning: SWOT, segmentation
Set the organization direction (vision, mission, goal, objective)
Design/suggest tourism business strategies
-(Corporate(growth, stability, retrenchment strategy)/
-Business(promotion mkt, product, priceing, /
-Functional Level Strategies(HRM) )
Six Senses Destination Spas are dedicated to transforming the approach to life of its guests via a complete immersion into healthy and mindful living. They provide structured and individualized programmes that blend holistic fitness activities, organic and natural fishetarian and raw foods cuisine, wellness education, self-discovery classes, relaxation and renewal. Preventative wellness is a simple component, combined with sound nutritional and naturopathic knowledge, which gives guests having the ability to consciously support their health insurance and longevity, overcome and alleviate stress, and live a far more healthful life, www. sixsenses. com/Six-Senses-Destination-Spas/index. php.
Six Senses Destination Spas is found in Karon beach where in fact the sand is white and clear view of seaside while slightly folks have water activities around because it is danger zone of windy and advanced of sea wave.
The goals of the business are first to be profitable and introduce healthy course and program that works well and create buzz among group of health conscious people which help create spa brand recognition.
Vision
Become leading mixture on medical and beauty spa to meet up with the needs of clients in health and beauty by merging the Thai traditional know-how and modern medical innovation by the entire year 2015.
Mission
Set new standard of value added spa by blending folk wisdom together with modern science of treatment and science of beauty with healthcare team to increase customer satisfaction. Total solution of healing and treatment would be the top of program that prospects customer looking for not only local customer but also in global market.
Objective
To create a distinctive Thai spa massage and special therapist for global market.
Report more than 10 million sales revenues by end of first year.
Maintain average 25% of profit after tax after 2 years of operation.
Maintain client return rate not less than 60% by the end of second year.
Become initial choice of destination spa among potential target by end of first year.
External environment analysis
OPPORTONITIES
The distinctive traditional Thai massage and the outstanding Thai hospitality presented through the well-trained therapists
As for the federal government, it's been doing its utmost in promoting Thai spas. For instance, Thailand is scheduled to carry "ISPA Asia Pacific Conference & Exhibitions" in 2006, which, according to Watchara Phannachet, Deputy Minister of Industry, will be beneficial to the economy generally. Moreover, the government has provided training to personnel in the spa industry to enhance the standards of Thai spas. The Thai Spa Association and the Thai Spa Operators Association were set up to bring together all those involved in the local spa industry to steer Thai spas in the same direction, http://www. thaispaassociation. com/
In 2004 the Thai government implemented an insurance plan to develop Thailand into a health service centre. The strategy is to make Thailand the centre for health services in Asia by the entire year 2010.
With the Thai governments' promotion of Thailand as the "Healthcare hub of Asia", and "Tourism Capital of Asia" the near future outlook for the Thai tourism industry seems promising. The continuous increasing number of visitors and the growing demand for medical treatments, it is anticipated that Thailand is a potential market for Danish suppliers of equipments, products and accessories for the hotel, spa and health related sectors.
As people decide to change their habits and pursue healthier lifestyles because Higher rates of heart disease, increases in the incidence of cancer, record numbers of clinically obese people, and different other health scares have all drawn attention to the need for healthy lifestyle choices. Additionally, as modern medicine has progressed, doctors and scientists have greatly expanded their understanding of the human body, exposing many health risks that were previously unknown. One-hundred years ago, doctors touted excessive sun exposure as beneficial, and heroin/cocaine combo sets, complete with syringes and needles, were bought from department stores. It really is now common knowledge that too much sun can cause skin cancer, smoking can bring on a variety of painful deaths, and eating somewhat too much ice cream can pack on the pounds, increasing the risk of diabetes and heart disease.
Last 1-2 years back, almost all of spa businesses were open in hotels and resorts. This caused consumers some inconvenience to receive service and services fees of spa situated in hotel or resorts are relatively greater than standalone spa in the similar standard and quality. From premium price of spa in hotel forces those to focus on only hi end segment of customers. Therefore, stand-alone spa business which will offer high quality and charge at medium or medium high can fulfill large demand on the market. There are approximately 40% total annual growths from a space of market conditions, most of that are open for not super premium like offering in resort and hotel.
Support from government is also in form of way to obtain funding which easier than previously and cost of finance is decreasing from the trend of global interest rate.
THREATS
The intense competition on the market, data from 585 spas operating in Thailand state that 51% were day spas and 49% were destination spas co-located with accommodation.
In the first stage of spa procedure in Thailand, it is always available in major hotels and resorts but spa business is highly popular among consumers in recent day. Enabling the investors and entrepreneurs to get started on businesses as stand-alone and this kind of spa are increasing everywhere in Thailand contributes to higher level of competition.
And substitute of spa products that help relieve stress, or healthy are also abundant. Generally, consumers will get products likes a fitness center in office buildings stand-alone or even in retail center, massage services are plentifully available in common commercial building. Other substitute is activities which people can join without cost likes aerobic, running or bicycling in public areas Park. Consumers have many choices in selecting the service by certain activities, those can be done without cost or really cheap to pay and people can access this type of activity easier than spa in additional.
A newcomer in the spa industry is medical spas. The principal purpose with medical spas is to provide comprehensive and complimentary therapies and treatments. Treatments primarily proposed by medical spas are laser surgery, colon therapy, weight control, and different diagnostic packages aimed at analyzing one's individual health situation.
Problems perceived by the tourists as medical spa may only be using the old science of treating diseases such as Treatment with acupuncture actually, the Spa can not only do that. It's very meaningful medical spas
Investment and operating cost factor, the most recent import figures are collected during 2004, where 80% of the medical and medical equipment was imported. The primary suppliers are USA with 40 percent of the total exports, accompanied by Japan (17 percent), Germany (14 percent) and UK (7 percent). In 2004 the Thai medical equipment market was worth approximately USD 371 million (Baht 14, 270 million or DKK 2, 261 billion). With positive expectations for the healthcare sector it can only be assumed that the value of the equipment market increases considerably in the foreseeable future.
Bargaining power of suppliers of products used in spa services is also rather high. Products such as heat and bowl system Jacuzzi sauna and steam room are mainly component in spa business but this group of products is needed to supply from international vendor then import through few local distributors. So this problem can flatten selection of quality product for a small business operator or new comer, http://www. wikinvest. com/concept/Health_%26_Wellness
Internal factors analysis
STRENGTHS
Results-orientated approach is the way Six Senses Destination Spas proved to customer. After customers experience our program, they trend to invite friends or relatives to try too. This is actually the way to sustaining existing customers and attracting new customer to the business.
A well-researched of every Thai traditional program to ensure the benefit and avoid negative affect possibly happened to customers. This to prevent unexpected negative result and also enhance product development dimension of Six Senses Destination Spas, long-term focusing.
Experiences and good attitudes of staffs recruited is essential, not only giving intensive training to new staffs and periodically training to update existing staffs for permanent development but also looking for new staffs who are prepared with experiences and attitudes toward spa services.
WEAKNESSES
High procedure cost associated with spa components, equipment maintenance and payroll which reflect capability of both operation staffs and medical staffs. However, Six Senses Destination Spas can't avoid these kinds of cost since it will keep the business at the top among other spa operators on the market.
The capacity to services in limited level of customers. As the necessity of highly trained staff and specific equipments, limitation to variety of services offering daily might not flexible enough if demand of Six Senses Destination Spas increase too quickly.
Limited area coverage. As planned to locate on Karon beach area, coverage part of business that customers may looking for accommodation or resort around our place as well.
Product benchmarking with major competitor
The main competitor who's offering luxurious range of beauty and health spa service in our sight is "Let's Relax Spa".
Let's Relax day spa was established year 1998 in Chiang Mai City. Even as we continue our excellent services, our valued clients tremendously spread the news in our exceptional services in our professional therapists. Therefore, within our gratitude, we make it a spot to grow daily to last better and to suit your every need from treatments to branches. Let's Relax now has 6 day spas conveniently located throughout the kingdom, Chiang Mai, Pattaya, Phuket and Bangkok. www. letsrelaxspa. com/index. php?p=aboutus
Strengths of the above services can be found: the proximity of the service of luxurious spa chain, prime location (Bangkok, Chiangmai, Pataya and Phuket) and name recognition. The weaknesses of the competitors will be the general insufficient promotion and penetration in international market.
Our competitive advantage is widely open, and provides us the possibility to service a big population that's not currently well served. Once you include our service works energy.
Competitive Profile Matrix (CPM) to reveal the competitive dimension of Six Senses and Let's Relax
Product and market positioning
Six Senses Destination Spas will automatically position itself as one of the best health spa in Phuket and Thailand southern area as well as among global spa arena. Bearing in mind that none of the other opponents may offer exact range of services we will, or that their staffs can be capable and trained like ours, and there are no health salons in our kind in the region, we will be in a position to provide services for some of Phuket population are not being exploited.
There are no exact competitors, and some nearby opponents in Phuket and its own perimeter. Six Senses Destination Spas also have corporate due with premium travel agency and higher grade credit card company.
Market Segmentation
Our target market will be divided by beauty spa and club. Beauty spa customers will be all ages and sexes, since club is relatively associated with specific band of customer especially elders. We anticipate that the beauty spa salon will also affect health salon happen in the same way. Thusly, our marketplace segments will be male and female professionals and retirees, age from 28 years, with individual incomes above THB 60, 000 or household income above THB 200, 000.
Design/suggest tourism business strategies
Business and marketing strategy
Main strategies
1. Concentrating on brand awareness by using advertising.
2. Facilitate customers to access our place because they build network and transportation from major location in Phuket.
3. Building community relationships and word of mouth through the unique service and quality, friendly and supportive, and to establish the absolute reliability in our services.
Promotion Strategies
Our promotion strategy has two components
Promotion of the first phase will give attention to advertising, during and half a year after our opening.
Advertising in second phase will give attention to all integrated communication and advertising in the long-term and maintain awareness of brand and keep feel of top health spa in one of the best destination of the world.
First phase
Advertisement
We use local newspapers, local radio and magazines of social health, local, local television, mailings to all households in the immediate five mile radius, and mailings to all local affairs to premium wellness database.
Internet
Selective with related content website and our alliances will be used to penetrate international target customers.
Alliances
Services profile of Six Senses Destination Spas will be located on our alliances resort hotel and hospital. Some real premium travel agency will be offered with this privileged services to its customers.
Second phase
Advertisement
We will continue steadily to place advertisements in local social and health magazines this year. Mail-outs will be achieved again to both our customers and follow database a year later following the opening. Radio and television set will be when we have special sales in the most stressful times of the entire year. Television ads aren't certain, we will evaluate effectiveness before implementing other case by case.
Internet
We will continue to have a comprehensive website. After six months, and certainly following the first year, we will measure the viability of experiencing the mark clients of advertising on our site, and vice versa, we will evaluate the viability of advertising on the target customers of your websites (if applicable).
Social network such as facebook and twitter will be implemented after having a year or when we have build customers base to create connectivity among experienced customers and this might form and spread out our reputation of services to the network easier.
Alliances
This kind of advertising will be done as soon as we've grown beyond our threshold of profitability. We will also form alliances with an advertising company with whom we share common business objectives. We will also implement mutual benefits with our neighbors and restaurant business that will donate to the neighborhood visibility. Advertising promotions with some restaurants may also be discussed.
