Cabo_Case | Loyalty Program | Customer Relationship Management

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  Cabo San Viejo: RewardingLoyalty MKTG 6140 Customer RelationshipMarketing Ainsworth A. Bailey, PhDFall 2!! Meagan Ayers ã Mike Hofman ã Christopher Bomer ã Ashley Barnes Jason Graven ã Dineshkumar Chandrasekharan  ISSUE Cabo Can Viejo is now a#ed with de#iding on whether or not to i$%le$ent arewards&loyalty %rogra$ and i so, how to go abo't $a(ing this #hange. BCKGR!U # Cabo San Viejo was o'nded in !)** in Pal$ S%rings, Cali ornia by Da+e andFloren#e Bl'$enthal as one o the nations -rst and leading health and wellnessbrands. he o'nding was ins%ired by a s'##ess 'l li e #hange by Da+e and the two#reated a %la#e where s$o(ers, o+erweight %eo%le, and others #o'ld go to eelbetter and learn how to li+e ha%%ier and healthier li+es. Mission Statement  Cabo San Viejo see(s to hel% %eo%le 'nlo#( their hidden %otential so they #anbe#o$e healthy, ha%%y, 'lly sel /a#t'ali0ed indi+id'als. Oferings D'e to the a#t that wellness $eans di1erent things to di1erent %eo%le body, $ind,so'l, rela3ation, lose weight, et#45, the 'll/ser+i#e, o+ernight destination resortstri+es to o1er $any di+erse a#ti+ities to ens're that e+eryone who #o$es to CaboSan Viejo #an -nd what they are loo(ing or in order to be 6healthier78 whate+erhealthier $eans to the indi+id'al.Cabo San Viejo o1ers n'$ero's a#ti+ities s'#h as si3 gy$nasi'$s, weight trainingroo$s, s9'ash and ra#9'etball #o'rts, a $editation area, s(in #are and bea'tysalons, $assage roo$s, sa'na, stea$ and inhalation roo$s, whirl%ools, %ri+ate s'nbathing areas, o'r %ools, a #ross/training %ool, a9'ati# thera%y, strength traininge9'i%$ent, a dri+ing range, and a nine/hole gol #o'rse. hey also o1er a 'll rangeo wellness ser+i#es in#l'ding $ore than  daily -tness #lasses and a#ti+ities,wellness le#t'res, wor(sho%s or stress $anage$ent, disease %re+ention and weightloss, healthy #oo(ing #lasses, n'tritional #ons'ltations, alternati+e $edi#ineawareness %rogra$s, and s%a treat$ents.Sin#e the o%ening o Cabo San Viejo, o'r s$aller CaboDayS%as ha+e been o%enedin ;ia$i, <ilton <ead, SC, As%en, C=, and on >ant'#(et ?sland in ;assa#h'setts. hese day s%as are not as e3tensi+e as the Pal$ S%rings lo#ation be#a'se theyo%erate as 6an entirely di1erent b'siness.7 hey are a day s%a that is o#'sed%ri$arily on the %a$%ering %art o wellness and are not o+ernight resorts. Customers  Cabo San Viejo #an a##o$$odate a $a3i$'$ o 2@@ g'ests and their goal is to(ee% o##'%an#y le+els at the o%ti$'$ le+el 2*5 thro'gho't the year. he rates or the roo$s are %er o##'%ant and the $ini$'$ stay is  nights. ;ost g'ests are9'ite a#ti+e and s%end an a+erage o  %er day on a##o$$odations and!. on ser+i#es. Cabo San Viejo re#ei+es abo't , new g'ests %er year:*E o g'ests are e$ale8 *E ha+e heard o the resort by word o $o'th8 $ost#o$$on reasons or +isiting are rela3ation, being healthy, s%a treat$ents, and-tness8 )E rate their stay highly8 $ost g'est li+e in western Cali ornia8 2E o -rstti$e g'ests ret'rn within / years8 and 2E o re%eat #'sto$ers ret'rn withinanother / years. he s'$$er is the $ost #hallenging ti$e o the year and be#a'se o this, theyred'#e the roo$ rates by E, whi#h brings in a di1erent #lientele base than 's'al.Be#a'se o the dis#o'nt, this #rowd is generally yo'nger and less a'ent. Go' seethese g'ests ta(ing 'll ad+antage o their stay be#a'se these g'ests eel theysho'ld $a3i$i0e e+ery dollars worth. Marketing and Sales  he $ar(eting and sales de%art$ent s%ends abo't 2.*, !.2, and !.)2 $illiona year on $ar(eting, ad+ertising, and sales res%e#ti+ely. he $ar(eting de%art$enthandles %ri#ing and %ro$otions with the goal o $eeting s%e#i-# re+en'e ando##'%an#y targets. he $ar(eting goal is not to ed'#ate %eo%le abo't Cabo SanViejo b't to rather e+o(e 6the right e$otions so %eo%le are re$inded that they wantto eel good.7 he $ost widely 'sed or$ o ad+ertising is s%ent on brandawareness online, radio, and %rint5 with o##asional $oney s%ent on %artnershi%e1orts. Competition Hhile Cabo was one o the -rst wellness resorts, a new trend in wellness has#reated -er#e #o$%etition ro$ all (inds o b'sinesses. Cabo San Viejos -rst#o$%etitors were other $ajor destination s%as a#ross the whole #o'ntry and theonly di1eren#es were the di1erent target o1ers. ?n re#ent years howe+er, new%layers are e$erging as #o$%etitors in#l'ding day/s%as, bea'ty salons, high/endhealth #l'bs, #r'ise shi%s, and +a#ation resorts. Regional Sales ;anager Claes VanIandt stated, 6Here #o$%eting against e+erybody be#a'se a lot o %eo%le ta(e one+a#ation a year.7 S$!T  %&SIS Strengths Cabo San Viejo is regarded as one o the nations -rst and leading health J wellnessbrands, 9'i#(ly be#o$ing one o the best destination resorts in the world. he  <ealth Resort was o'nded in !)** and was renowned as the nations 6%re$ier total+a#ation & -tness resort7 by a leading $aga0ine jo'rnalist by !)@2. Lo#ated in Pal$S%rings, Cali ornia, Cabo San Viejo draws #lientele ro$ all o+er the world d'e to itsstrong re%'tation o being the best at what they do. he sta1 at the resort i.e.%ersonal trainers, g'est ser+i#e agents, et#.5 is +ery riendly, well +ersed, ande3%ertly trained to enhan#e the g'est e3%erien#e and $a(e the$ want to #o$eba#(. he sta1 is %art o the reason why the resort has s'#h a high #'sto$ersatis a#tion rating d'e to their dedi#ation, #o$bined with the $anage$ent o  #a%a#ity not o+er-lling the resort to 'll #a%a#ity, allowing g'ests to ha+e Ke3ibilityin their daily a#ti+ities5. eaknesses So$e o the strengths o Cabo San Viejo also %lay a %art in so$e o theirwea(nesses. he high a$o'nt o %a$%ering ea#h g'est re#ei+es #o$es at a high%ri#e8 $a(ing a tri% to the resort rather 'nrealisti# or those who arent in a high ta3bra#(et. he a+erage ho'sehold in#o$e o g'ests e3#eeds !, ann'ally,whi#h $eans that it is $ostly an a%%ealing destination or the wealthy. his $issesa rather large %ortion o their %otential $ar(et8 e3#e%t or in the s'$$er when theylower their %ri#es. D'ring the s'$$er $onths, Cabo San Viejo sees an inK'3 o lessa'ent #'sto$ers who want to get e+ery dollars worth o their tri% be#a'se its ala+ish +a#ation or the$8 this a#t'ally leads to $'#h lower %ro-ts thro'gho't thes'$$er. Another $ar(et seg$ent that the <ealth Resort see$s to $iss is the $alea'dien#e sin#e statisti#s show that */@E o their g'ests are e$ale.Another wea(ness that Cabo San Viejo see$s to ha+e is the la#( o a loyalty%rogra$, whi#h #'sto$ers eel is i$%ortant be#a'se the #'sto$er ser+i#e a%%earsto be hit or $iss. Go' ha+e g'ests saying 6why did she get Kowers7 or 6why doesthat wor(er re$e$ber that g'ests na$e, b't not $ine7 whi#h is leading to jealo'sy, dissatis a#tion, and #ertain indi+id'als eeling rather '%set.  he last wea(ness addressed is that Cabo San Viejo has a la#( o #ross/ 'n#tional%ro$oting. he CaboDayS%as dont ad+ertise the Cabo San Viejo <ealth Resort and+i#e +ersa. his is a (ey $ar(eting tool that they are $issing o't on be#a'se itdoesnt re9'ire any o'tside $ar(eting, its si$%ly ad+ertising other ser+i#es ro$within. <a+ing lo#ations in ;ia$i, <ilton <ead, or As%en, the day s%as #o'ld easilyad+ertise the resort and do $ore to get g'ests interested in ta(ing a bigger+a#ation. Opportunities Hhile Cabo San Viejo has been a s'##ess 'l heath resort, the #o$%any is interestedin ways they #an #ontin'e to be one o the to% +a#ation s%ots or health #ons#io's#ons'$ers. =ne o%%ort'nity or the #o$%any to grow wo'ld be to e3%lore new'nta%%ed #ons'$er $ar(et seg$ents. he #'rrent #lients or the resort in#l'de
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