Ben Ohau Lodge Case Analysis Essay

896 Words Sep 14th, 2013 4 Pages
Case Analysis – Ben Ohau Lodge

Ben Ohau Lodge, located in the high country of New Zealand, is a high-class resort aimed at the world’s most exclusive clients. Started by a New Zealander and his Indonesian friend, this pricey resort provides every accommodation a particular segment of wealthy clientele could ever ask for. Understanding the market brought about a breakthrough opportunity for Ben Ohau Lodge, and it has led to some success.
Relying solely on promotion via word of mouth, publicity, and public relations, the retreat has built a relatively steady base of customers. These customers fall into some rather exclusive dimensions. Some of the qualifying dimensions include the need for a safe and secure vacation spot, offering
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Hiring more staff is an important step for this firm, as top-notch customer service will lead to complete satisfaction, which will lead to positive word of mouth and positive promotion for the company. Negative word is all that is needed to send Ben Ohau Lodge completely out of business. Currently, the company is not advertising, which is a good idea in order to keep the exclusivity and privacy that they can now boast. At present, the Lodge costs 700 New Zealand Dollars per night, which works out to be $569 in US currency, and 429 Euros. In comparison to the elite five-star hotels around the world that can cost up to $35,000 per night, the Ben Ohau Lodge is extremely cheap. The company would do well to raise this price, even to just around $2000-$4000 a night. This will allow them to hire more staff, provide better accommodations, and also provide the customer with a feeling of elitism and exclusivity, something this particular target market desires.
To improve the experience they offer, Ben Ohau Lodge could conduct market research to better understand the needs of their target market, which is not an easy task. Their customer base is mainly foreign. They are also part of the elite upper-class, a relatively small, exclusive group that is not very easily reached or accommodating to inconveniences.
By improving their product slightly, Ben Ohau Lodge will be able to cater to their target market segment –

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