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…show more content… The customers that make up this particular target market are homogeneous in their needs and expectations. They will expect privacy and luxury above all else. These target customers expect a plethora of services to be available to them whenever the need may arise. Exclusivity is anticipated, as well as over-the-top accommodations. They expect complete isolation and nature-heavy activities.
In order for this single target market approach to be profitable, Ben Ohau Lodge must provide superior value and satisfaction in order to gain a competitive advantage. Then, because their services fit so well to customers’ needs, they can charge a higher price and gain a larger share of the business in the market they are focusing on – wealthy, high-profile clientele with a love of nature, in need of a low-profile getaway. To meet these demands, Ben Ohau already provides big game hunting on a 28,000 hectare retreat, which is about a quarter the size of the New York City area, as well as photographic “safaris,” horse-trekking, golfing, and helicopter trips – all of which do not require hordes of security personnel. The company also expanded the quality of their accommodations, doubling the sizes of the rooms and installing glass panels that look out on breathtaking views. However, the lodge is small, with only 8 rooms, and is nothing compared to a five-star hotel one may find