Morgans Rock

5C Marketing Analysis of Morgan's Rock Hacienda & Ecolodge
4P Marketing Analysis of Morgan's Rock Hacienda & Ecolodge
Porter Five Forces Analysis and Solution of Morgan's Rock Hacienda & Ecolodge
Porter Value Chain Analysis and Solution of Morgan's Rock Hacienda & Ecolodge
Case Memo & Recommendation Memo of Morgan's Rock Hacienda & Ecolodge
Blue Ocean Analysis and Solution of Morgan's Rock Hacienda & Ecolodge
Marketing Strategy and Analysis Morgan's Rock Hacienda & Ecolodge
VRIO /VRIN Analysis & Solution of Morgan's Rock Hacienda & Ecolodge
PESTEL / STEP / PEST Analysis of Morgan's Rock Hacienda & Ecolodge
Case Study Solution of Morgan's Rock Hacienda & Ecolodge
SWOT Analysis and Solution of Morgan's Rock Hacienda & Ecolodge

EMBA Pro Case Memo for Morgan's Rock Hacienda & Ecolodge case
study
An upscale ecolodge in southern Nicaragua hopes to achieve a 53% occupancy

rate within three years of opening and has hired a management company to
prepare a marketing strategy. Despite its proximity to Costa Rica and its focus on
providing a unique luxury vacation retreat for one of the fastest growing segments
in the travel industry--the ecotourist--the hotel faces numerous hurdles. The
greatest challenge is to overcome Nicaragua's negative reputation, based on its
recent history of political and social unrest, still fresh in the minds of tourists. The
hotel must also operate within the country's rural infrastructure, characterized by
interruptions in the power supply, poorly maintained roads, and below-standard
sanitation. Additionally, Nicaragua does not have a pool of skilled employees to
work in the high-end service industry. Preparation of the marketing strategy
addresses the effects of these factors on the hotel's market positioning and market
penetration rate.
Case Authors : Shuo Wang, Judith A. Siguaw, Penny Simpson
Topic : Sales & Marketing
Related Areas : Market research, Public relations
EMBA Pro Case Memo & Recommendation Memo Approach for

Morgan's Rock Hacienda & Ecolodge
At EMBA PRO, we provide corporate level professional Marketing Mix and

Marketing Strategy solutions. Morgan's Rock Hacienda & Ecolodge case study is a
Harvard Business School (HBR) case study written by Shuo Wang, Judith A. Siguaw,
Penny Simpson. The Morgan's Rock Hacienda & Ecolodge (referred as “Ecolodge
Nicaragua” from here on) case study provides evaluation & decision scenario in
field of Sales & Marketing. It also touches upon business topics such as - Marketing
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Case Study Recommendation Memo Overview

At EMBA Pro, we write Morgan's Rock Hacienda & Ecolodge case study
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Morgan's Rock Hacienda & Ecolodge recommendation memos are concisely
written and exhibit and illustrate the clear strategic thought process of the
protagonist in the case study.
What is Morgan's Rock Hacienda & Ecolodge Case Study

Recommendation Memo
The Morgan's Rock Hacienda & Ecolodge case study recommendation memo is
one page or at max two page document (not including the exhibits) that
recommends the course of action and provide its rationale in brief. The popularity
of the format is because of the limited time available to most leaders and
managers in today’s corporations.
According to survey by Harvard Business Review, recommendation memo is the

most used document in fortune 500 firms and extensively preferred by CEOs of
transnational organizations. The greatest advantage of recommendation memo is
that it cuts the slab out of communication and makes the writer focus on the most
critical aspects. Like all other forms of communication, writing case study
recommendation memo requires practice and clear insight into what is required.
Morgan's Rock Hacienda & Ecolodge Case Memo Structure

First Paragraph ...
The first paragraph of the Morgan's Rock Hacienda & Ecolodge recommendation
memo includes recommended course of action for Ecolodge Nicaragua. It will
clearly state your intent or course of action you like the organization to pursue. It
usually starts with – “This recommends .... ”
Topic of the Morgan's Rock Hacienda & Ecolodge – This section encapsulates
the “what” of the core issue rather than how and when.
Caveats for writing first paragraph yourself - Don’t focus on the how and when
of events in the case, as they take away the precision of the intent or course of
action. There should be clear purpose and objective to the first paragraph.
Background of Morgan's Rock Hacienda & Ecolodge
The background paragraph of briefly states – the historical context, illustrate the
moment that brought the protagonist into the present situation and why she needs
to make a decision.
• How the technology challenges will impact the operations of companyname?
• How companyname inability to attract best talent is impacting its capacity to

innovate. What it needs to do to improve the conditions.
• How Ecolodge Nicaragua's big budget and small budget financial performance
differs and what is preferred way going forward.
It is a good practice to state the constraints such as – technology, capacity, budget,

and people etc in the background section as it will help in building the analysis part
plus provide the reader to relate to the recommendations part in the first
paragraph.
The section needs to be both brief and factual. Only use data that is relevant to
explain bigger picture. Detailed charts and tables can go into exhibits.
Checklist for writing an excellent background section –
- After reading the background section can the reader come across the appropriate
sense of urgency for why action is needed now?
- Is the background clear, concise, and easy to follow?
- Are only the pertinent facts from the case study outlined?
- Does the background section of recommendation memo explain why action is

needed now?
Issues and Analysis
List 3-4 most pressing issues the protagonist in Morgan's Rock Hacienda &
Ecolodge case study is facing.
How these issues can impact the Ecolodge Nicaragua.
Conduct a situational analysis using strategic tools such as – PESTEL analysis, Porter
Five Forces analysis, SWOT analysis.
Recommendations
In this section you should present the details of – What to do, how to do it and
when to do it. The recommendations should pass the criteria of – Suitability,
Acceptability, and Feasibility.
Are the recommendations suitable for the Ecolodge Nicaragua given the scenario
and issues discussed in the Morgan's Rock Hacienda & Ecolodge.
Are the recommendations acceptable given the culture of the Ecolodge Nicaragua.
Often consulting companies make this error that they strive to provide best in class
solution even though implementing it may run counter to the culture of the
organization. The recommendations should be consistent with the culture of
Ecolodge Nicaragua.
Finally recommendations should meet the feasibility criteria based on the facts and
details provided in the casename.
You can conduct a VRIO analysis of Ecolodge Nicaragua to assess whether the
recommended course of action is feasible under the present – resources, skills,
technological know how, and financial ability of the organization.
Basis for recommendations
Providing supporting argument and evidences on why each recommendation is

unique and need to implemented to change the present situation.
The supporting evidences can include – financial statements, growth trajectory,

organization culture and leadership style in the organization.
For greater transparency and integrity of Morgan's Rock Hacienda & Ecolodge case
study recommendation memo – always explicitly mention the assumptions. The
assumptions are often your business judgment based on industry knowledge and
facts provided in case study analysis.
Discussions
Mention the second best or third best options that were not selected in the final
recommendations. This will provide a reader an ability to look beyond the
recommended solution.
Always discuss the risks and key assumptions. If you prefer you can make a full
disclosure grid of Ecolodge Nicaragua based on the description provided in the
case study.
Risk associated with the recommendations should also be clearly addressed based
on thorough analysis and structured line of reasoning.
Next Steps
This step require a detail road map for the execution of the recommendations. It
may involve what are the resources required, how much time it will take. What is
the desired sequence of activities and key milestones in the course of
implementation of the recommendations.
Exhibits
If you have used extensive analysis, statistical models and other strategic tools to
come to the conclusions then add those in the exhibit section. This will help in
explaining your work process and how you reached the conclusions you have
reached and what assumptions underpin those conclusions.
Make sure to clearly lay out – references, books details, and tables that are used for
the purpose of analysis.
Marketing plan for morgan's rock

3182 words (13 pages) Essay
1st Jan 1970 Marketing Reference this
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1.0 Executive Summary:
Morgan’s Rock Hacienda and Ecolodge is an upscale resort located in the private
nature reserve in Southern Nicaragua. It is surrounded by tropical lowland dry
forests and one of the Pacific Ocean’s most pleasing beaches. In contrast to
conventional beach resorts, it is an attempt of nature conservation and community
development therefore attracts tourists who appreciate the nature and its
conservation. The market trends show that eco-tourists are the fastest growing
segment in the travel industry and there is significant potential in the market to
exploit these opportunities.
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As eco-tourists are not much price sensitive and willing to pay more than
conventional tourists, differentiation is services provided and their engagement in
activities which provides them a close encounter with the nature will help Morgan’s
Rock to attract visitors and maintain a long term relationship with them.
2.0 Objectives of the Marketing Plan:
To achieve over 50% occupancy rate within three years for Morgan Rock’s Ecolodge
in Nicaragua.
3.0 Situational Analysis:
It is essential to conduct some analysis of current state of affairs before formulating

any kind of strategy. Situational analysis is a tool that gives a snapshot of the
current activities in a business environment. The analysis of business environment
for this case is as follows;
3.1 The Market
This industry, ecotourism, is a small one and is just developing in the travel market.
It has a high potential for growth and is in a gradual progressive state. It attracts
people who have a sense of attachment with the nature, therefore the main market
targets are geo-savvies and urban sophisticates who are environmentally aware. In
Nicaragua, the tourist industry is extremely important for its poor economy, and
recently, the market for luxury hospitality has been growing to an almost $30
billion market. This is due to the fast growing popularity and interest in ecotourism.
The customers of upscale ecolodges are mostly out of country. There are few
people from Nicaragua that could afford to stay at luxury ecolodge; therefore the
market is dependent on visitors from North America and Europe.
3.1.1 Market trends and Growth Demand
As given in the case, tourism arrival to Nicaragua has been quadrupled since 1990.
With the increase of 122% of revenue generated by tourism is the second most
important source of foreign exchange in year 2000. There was an increase of 37%
in tourists arrived during 2000-2005.
With the growing popularity of ecotourism and travel in general to Central America
tourism, it appears that growth demand is rising and there is a significant potential
in the immature and untapped tourism industry in Nicaragua. Based on travel
statistics, there has been a steady increase in annual tourism activity, which can be
shown as follows;
This industry, ecotourism, is a small one that is just twigging out in the travel
market. As mentioned earlier, it has a high potential for growth. Therefore, this
trend is in a gradual progressive state. Nature-tourism is growing at a rate of 10 to
30 percent annually.
3.1.2 Macro-Environment
Using PESTEL framework affect of macro-environment can be discussed as follow;
Political:
Though political environment in the past was quite unbalanced but recently it
tends to be relatively stable. In general political environment and legal framework
are in good shape but corruption and extreme poverty in some parts of the country
are the areas of issue.
Economical:
Economical conditions of Nicaragua are not good. It is regarded as the one of the
poorest county in the Americas. The per capita income is very low and majority of
population survive on US$ 1 per day or less. In 2002 United Nations Human
Development Index shows the lowest ratings among Latin American nations.
Social:
Socio-economic indicators are very low and most of the population resides in the
rural areas. There is low level of education, high birth rate and poverty indexes and
very few jobs available.
Technological:
Nicaragua is not a technologically advanced country. Moreover, there is a gap

between rural and urban areas in terms of infrastructure. Urban sites have the
access to modern technology such as internet, telephone etc, but in rural areas
such facilities are not readily available.
Environmental (Green):
Nicaragua is a bio diverse, tropical frosted country bordered by Honduras to the

north and Costa Rica on the south. There is a range of volcanic mountains on the
south-western side of country which makes it an ideal tourist’s destination.
Legislative:
Nicaragua’s rules and regulations are quite supportive for the tourism industry. For
instance immigration policy does not require visa or a tourism card for the visitors
from Europe and United States. However, in contrast to this corrupt and uncertain
judicial system shows another side of legal environment of the country.
Factors Impact of factor Opportunity/Threa
Ecotourism Industr
1. Political Relatively stable as compared to past +3
2. Economical Poorest country in Latin America -3
3. Social Low literacy rate, Low HDI, Less Skilled Manpower -4
4. Technological Limited to Urban areas -1
5. Environmental Naturally Diverse Environment +7
6. Legislative Attracts tourists from US and Europe. +4
3.1.3 Customer Analysis
It is evident that number of arrival of the tourists is increasing form last couple of
years, but it does not specify weather they are coming for conventional tourism,
eco-tourism or any other purpose. The following analysis will discuss the consumer
trends in recent years;
1. Purpose of visit
According to Nicaraguan Tourism Ministry, in 2000, most of the people 49%
coming to Nicaragua were business visits or other work related purposes, 39.5%
arrived for leisure purposes, 9.1% arrived to participate in conventions and rest of
2.4% for other purposes.
2. Length of Stay and Other Considerations
The average length of stay for international visitor in Pacific coast hotels was 3.7
which was much shorter than average stay in other destinations such as Costa Rica
where it was 11.1 nights.
According to BIMSA 52.8% of tourists who travelled to Nicaragua were alone, 24%
travelled with their friends and around 15% travelled with their family.
3. Consumer Trends
It is evident that nature based tourism has been increased quite dramatically at an
annual rate of 10% to 30%. Surveys made it apparent that geo-tourists are more
likely to take more trips, spend more money and produce greater volumes of visits
overall. Geo-tourists are divided in to three groups; Geo-Savvies (16.3 million) and
Urban Sophisticates (21.2million), who shares highly developed social consciences
and actively support environmental and cultural organizations. The third segment,
Good Citizens (17.6), show involvement in variety of community activities as well as
high level of environmental awareness.
4.0 The Organisation: Morgan Rock Hacienda & Ecolodge
4.1 Mission:
Morgan Rock is “a project of nature conservation, community development and

reforestation offering Agro and Ecotourism at its best.”
4.2 Facilities and Services Offering:
Morgan’s Rock provides guest with a experience of luxury adventure, offers

comfortable accommodation and personalised services in the setting of the ocean
view forest reserve. In order to help local community development kitchen is
combined fresh fruits and vegetables with locally produced fish, chicken and other
meat in locally inspired cuisines. All the major operations of the resort are designed
to make people feel their involvement in making people aware of environmental
issues and motivate them to indulge in nature conservation and local community
development.
Apart from these, the hotel offers guided hikes into its private forest reserve, sea
kayaking, fishing trips, horseback riding, excursions to nearby national parks,
volcanoes and colonial sites, massage therapy and yoga.
4.3 Positioning
Morgan Rock is positioned as upscale property resort for eco-tourists, geo-savvies

and urban sophisticates which offers quality service in natural surroundings.
4.4 SWOT Analysis
The following is the summary of the analysis of the internal strengths and
weaknesses of the Morgan’s Rock and Opportunities and threats of that it faces in
external environment.
Strengths Opportunities
1. Excellent location. 1. Immature, untapped and eme

market.
2. Varity of service offerings.
2. Very few direct competitors.
3. Imported skilled staff.
3. Favouring Immigration regul
4. Differentiation strategy as Nature Conservation and community
development.
5. Eco-friendly operational activities which is in accordance to its nature

preservation image.
6. Private forest reserve.

Weaknesses Threats
1. Differentiation strategy is not clearly communicated to the visitors. 1. Unstable government.
2. Health and security issues. 2. Economic downturns.
3. Difficult access to the resort during rainy season 3. Competitors or substitutes.
4. Lack of quality hospitality ed
5. Less Safe tourists destination

4.5 Competitor Analysis
1. Direct Competitors:
The main competition was the many other upscale ecolodges that are somewhat
nearby that can draw away potential customers. Lapa Rios, Costa Rica; Can Chich
Lodge, Belize; Bhaa Creek, Belize; The Lodge at Pico Bonito, Honduras; Canopy
Tower, Panama; Rio Indio Lodge, Nicaragua and Parque Maritimo El Coco,
Nicaragua. All of these places compare directly to Morgan’s Rock due to their
proximity and kind of service they offer.
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2. Indirect Competitors:
Indirect competitor for Morgan’s Rock could be national parks, wild life sanctuaries,
world heritage sites or any campaign related to environmental awareness, nature
conservation and community development which also serves similar needs and
customers can opt for instead of it.
4.6 Customer profile
The customers that arrive at Morgan’s Rock are mostly outside of the country.
There are few people from Nicaragua that could afford to stay at a place like this;
therefore the main focus was on North America and Europe. Recently, the amount
of tourists from these places has been increasing significantly.
4.7 Customer Buying Behaviors
Though all tourists of ecotourism are willing to pay more money as compared to
conventional tourists, they are the people who can spend money as long as their
needs are full field.
5.0 Developing Marketing Strategy
The strategic marketing plan process typically has the following stages:
5.1 Segmenting
A marketing segment is a group of people with the similar need and requirements.
The market segmenting for Morgan Rocks can be discussed as follows:
 Geographic :
 In 2000, 21.5 percent of tourists arrived to Nicaragua was North American,
7.8 percent was European.
 Demographic :
 Studies shows that majority of eco- tourists are in their fifties, well educated,
quality conscious and sensitive to supporting environmental awareness and
the heritage of local communities.
 Psychographic :
 The eco-tourists are generally belongs to upper social class.
 Behavioral:
 The eco-tourists travel to enjoy and appreciate nature in ways that benefit
the both environment and local communities. This is the fastest growing
segment of the travel industry if Nicaragua. Studies show that, since 1990, it
has grown at an annual rate of 10% to 30% per annum, while the overall
tourism had grown at 4% per annum. It also shows that eco-tourists are
willing to pay more than general tourists, which illustrate that buyers power
in eco-tourism is competitively less than conventional tourism.
The eco tourists have strong concern about nature and environmental issues, it is
also important to note that since eco-tourists feel that they had helped to preserve
the environment, the guest satisfaction levels of eco-tourists were noticeably high
as compared to conventional ones.
5.2 Revenue Potential of the Segment
The Unites States, following by Europe is the most important market for Morgan’s
Rock because of its high disposable income, potential volume of visitors and
geographical proximity. Since the per capita income in these regions is quite high
and people generally go on holidays more often, there is generous revenue
potential in this segment.
5.3 Target Market Strategy
The primary targets of Morgon Rock are the upscale tourists who have active
interests and concern about the nature, its conservation and community
development. The visitors from US are growing and segment size is also big,
therefore, on the basis of market segmentation analysis we can sum up that target
of market strategies are as follow;
 Geo-savvies
 Urban sophisticates.
Both of these are attractive segments and promises greater long term profitability.
Arrival to Central America, from Select Tourism-Generating Countries, 1999
5.4. Marketing Mix
Marketing efforts focus on building a loyal base of repeat customers that will use
the services provided continuously. The marketing mix is comprised of place,
products, pricing and promotions. Getting the perfect marketing mix is critical in
effectively marketing a product or service.
1. Product-Service Mix
It includes the services offered by the operation in order to satisfy customer’s

(guest) need. Every activity which adds value in the overall experience of the guest
during the stay should be included in to the regular activities. Therefore, customer
should be surveyed time to time both during the stay and after the stay (online) to
improve service offerings and maintain long term relationship with the customer.
Most importantly there should be coordination between the results of surveys and
operational activities.
2. Pricing
Since Morgan’s Rock is in upscale business it is comparatively less sensitive to price.

However, pricing should be rationalise to give customer value of their money
spend during the stay. Alternatively it could offer special discount to those who are
actively engaged in environmental conservation and community development
activities in any way to show its actual concern about nature preservation. This
practice will also help Morgan’s Rock to a build a brand which is taking initiatives to
prevent environment.
3. Promotions
The purpose of promotion is to inform and make people more aware of a brand, as
well as improving future sales. Advertising is the most widely used tool to
communicate the information, and can be practiced through the choices of
medium such as TV, radio, internet and news papers. Selection of any of these
media depends upon the marketing budget and since there is not much
information related to marketing budget in the case it is challenging to select
choice of media.
Even though internet is not much significant for domestic visitors but to inform and
attract international visitors it should maintain an international website. The
website should be updated time to time and provide true and relevant information
to the potential guests.
Nevertheless, traditional medium of advertisement such as word of mouth and

recommendations to others are also a very power full tool of promotional aspect of
marketing. Morgan’s rock should also pay attention to such media as well.
4. Place:
To market effectively promotional message should be communicated at the right

time and at the right place. Hence, appropriate arrangement should be made in
Managua Airport where most (around 70%) of the potential visitors arrive. Some
stalls in the airport, especially during holidays, should be arranged in order to
provide necessary information and guidance to the potential visitors. Similar
arrangements can also be made on major destinations in the highways.
5.5 Implementation and Control
All the results achieved should be carefully monitored on an ongoing basis in

relation to projected objective versus actually realised objectives. If any major
change occurs in environmental factors then marketing strategy should be
adjusted accordingly. The delegated marketing team should ensure that marketing
plan is implemented accurately and efficiently. In order to control and monitor the
proper implementation of strategy, Balance Score Card framework by Kaplan and
Norton can be utilised. This will ensure that all the aspects of business are given
due consideration while implementing the marketing strategy.
1.0 Executive Summary:
Morgan’s Rock Hacienda and Ecolodge is an upscale resort located in the private
nature reserve in Southern Nicaragua. It is surrounded by tropical lowland dry
forests and one of the Pacific Ocean’s most pleasing beaches. In contrast to
conventional beach resorts, it is an attempt of nature conservation and community
development therefore attracts tourists who appreciate the nature and its
conservation. The market trends show that eco-tourists are the fastest growing
segment in the travel industry and there is significant potential in the market to
exploit these opportunities.
As eco-tourists are not much price sensitive and willing to pay more than
conventional tourists, differentiation is services provided and their engagement in
activities which provides them a close encounter with the nature will help Morgan’s
Rock to attract visitors and maintain a long term relationship with them.
2.0 Objectives of the Marketing Plan:
To achieve over 50% occupancy rate within three years for Morgan Rock’s Ecolodge
in Nicaragua.
3.0 Situational Analysis:
It is essential to conduct some analysis of current state of affairs before formulating

any kind of strategy. Situational analysis is a tool that gives a snapshot of the
current activities in a business environment. The analysis of business environment
for this case is as follows;
3.1 The Market
This industry, ecotourism, is a small one and is just developing in the travel market.
It has a high potential for growth and is in a gradual progressive state. It attracts
people who have a sense of attachment with the nature, therefore the main market
targets are geo-savvies and urban sophisticates who are environmentally aware. In
Nicaragua, the tourist industry is extremely important for its poor economy, and
recently, the market for luxury hospitality has been growing to an almost $30
billion market. This is due to the fast growing popularity and interest in ecotourism.
The customers of upscale ecolodges are mostly out of country. There are few
people from Nicaragua that could afford to stay at luxury ecolodge; therefore the
market is dependent on visitors from North America and Europe.
3.1.1 Market trends and Growth Demand
As given in the case, tourism arrival to Nicaragua has been quadrupled since 1990.
With the increase of 122% of revenue generated by tourism is the second most
important source of foreign exchange in year 2000. There was an increase of 37%
in tourists arrived during 2000-2005.
With the growing popularity of ecotourism and travel in general to Central America
tourism, it appears that growth demand is rising and there is a significant potential
in the immature and untapped tourism industry in Nicaragua. Based on travel
statistics, there has been a steady increase in annual tourism activity, which can be
shown as follows;
This industry, ecotourism, is a small one that is just twigging out in the travel
market. As mentioned earlier, it has a high potential for growth. Therefore, this
trend is in a gradual progressive state. Nature-tourism is growing at a rate of 10 to
30 percent annually.
3.1.2 Macro-Environment
Using PESTEL framework affect of macro-environment can be discussed as follow;
Political:
Though political environment in the past was quite unbalanced but recently it
tends to be relatively stable. In general political environment and legal framework
are in good shape but corruption and extreme poverty in some parts of the country
are the areas of issue.
Economical:
Economical conditions of Nicaragua are not good. It is regarded as the one of the
poorest county in the Americas. The per capita income is very low and majority of
population survive on US$ 1 per day or less. In 2002 United Nations Human
Development Index shows the lowest ratings among Latin American nations.
Social:
Socio-economic indicators are very low and most of the population resides in the
rural areas. There is low level of education, high birth rate and poverty indexes and
very few jobs available.
Technological:
Nicaragua is not a technologically advanced country. Moreover, there is a gap

between rural and urban areas in terms of infrastructure. Urban sites have the
access to modern technology such as internet, telephone etc, but in rural areas
such facilities are not readily available.
Environmental (Green):
Nicaragua is a bio diverse, tropical frosted country bordered by Honduras to the

north and Costa Rica on the south. There is a range of volcanic mountains on the
south-western side of country which makes it an ideal tourist’s destination.
Legislative:
Nicaragua’s rules and regulations are quite supportive for the tourism industry. For
instance immigration policy does not require visa or a tourism card for the visitors
from Europe and United States. However, in contrast to this corrupt and uncertain
judicial system shows another side of legal environment of the country.
Factors Impact of factor Opportunity/Threa
Ecotourism Industr
1. Political Relatively stable as compared to past +3
2. Economical Poorest country in Latin America -3
3. Social Low literacy rate, Low HDI, Less Skilled Manpower -4
4. Technological Limited to Urban areas -1
5. Environmental Naturally Diverse Environment +7
6. Legislative Attracts tourists from US and Europe. +4
3.1.3 Customer Analysis
It is evident that number of arrival of the tourists is increasing form last couple of
years, but it does not specify weather they are coming for conventional tourism,
eco-tourism or any other purpose. The following analysis will discuss the consumer
trends in recent years;
1. Purpose of visit
According to Nicaraguan Tourism Ministry, in 2000, most of the people 49%

coming to Nicaragua were business visits or other work related purposes, 39.5%
arrived for leisure purposes, 9.1% arrived to participate in conventions and rest of
2.4% for other purposes.
2. Length of Stay and Other Considerations
The average length of stay for international visitor in Pacific coast hotels was 3.7
which was much shorter than average stay in other destinations such as Costa Rica
where it was 11.1 nights.
According to BIMSA 52.8% of tourists who travelled to Nicaragua were alone, 24%
travelled with their friends and around 15% travelled with their family.
3. Consumer Trends
It is evident that nature based tourism has been increased quite dramatically at an
annual rate of 10% to 30%. Surveys made it apparent that geo-tourists are more
likely to take more trips, spend more money and produce greater volumes of visits
overall. Geo-tourists are divided in to three groups; Geo-Savvies (16.3 million) and
Urban Sophisticates (21.2million), who shares highly developed social consciences
and actively support environmental and cultural organizations. The third segment,
Good Citizens (17.6), show involvement in variety of community activities as well as
high level of environmental awareness.
4.0 The Organisation: Morgan Rock Hacienda & Ecolodge
4.1 Mission:
Morgan Rock is “a project of nature conservation, community development and

reforestation offering Agro and Ecotourism at its best.”
4.2 Facilities and Services Offering:
Morgan’s Rock provides guest with a experience of luxury adventure, offers

comfortable accommodation and personalised services in the setting of the ocean
view forest reserve. In order to help local community development kitchen is
combined fresh fruits and vegetables with locally produced fish, chicken and other
meat in locally inspired cuisines. All the major operations of the resort are designed
to make people feel their involvement in making people aware of environmental
issues and motivate them to indulge in nature conservation and local community
development.
Apart from these, the hotel offers guided hikes into its private forest reserve, sea
kayaking, fishing trips, horseback riding, excursions to nearby national parks,
volcanoes and colonial sites, massage therapy and yoga.
4.3 Positioning
Morgan Rock is positioned as upscale property resort for eco-tourists, geo-savvies

and urban sophisticates which offers quality service in natural surroundings.
4.4 SWOT Analysis
The following is the summary of the analysis of the internal strengths and
weaknesses of the Morgan’s Rock and Opportunities and threats of that it faces in
external environment.
Strengths Opportunities
1. Excellent location. 1. Immature, untapped and eme

market.
2. Varity of service offerings.
2. Very few direct competitors.
3. Imported skilled staff.
3. Favouring Immigration regul
4. Differentiation strategy as Nature Conservation and community
development.
5. Eco-friendly operational activities which is in accordance to its nature

preservation image.
6. Private forest reserve.

Weaknesses Threats
1. Differentiation strategy is not clearly communicated to the visitors. 1. Unstable government.
2. Health and security issues. 2. Economic downturns.
3. Difficult access to the resort during rainy season 3. Competitors or substitutes.
4. Lack of quality hospitality ed
5. Less Safe tourists destination

4.5 Competitor Analysis
1. Direct Competitors:
The main competition was the many other upscale ecolodges that are somewhat
nearby that can draw away potential customers. Lapa Rios, Costa Rica; Can Chich
Lodge, Belize; Bhaa Creek, Belize; The Lodge at Pico Bonito, Honduras; Canopy
Tower, Panama; Rio Indio Lodge, Nicaragua and Parque Maritimo El Coco,
Nicaragua. All of these places compare directly to Morgan’s Rock due to their
proximity and kind of service they offer.
2. Indirect Competitors:
Indirect competitor for Morgan’s Rock could be national parks, wild life sanctuaries,
world heritage sites or any campaign related to environmental awareness, nature
conservation and community development which also serves similar needs and
customers can opt for instead of it.
4.6 Customer profile
The customers that arrive at Morgan’s Rock are mostly outside of the country.
There are few people from Nicaragua that could afford to stay at a place like this;
therefore the main focus was on North America and Europe. Recently, the amount
of tourists from these places has been increasing significantly.
4.7 Customer Buying Behaviors
Though all tourists of ecotourism are willing to pay more money as compared to
conventional tourists, they are the people who can spend money as long as their
needs are full field.
5.0 Developing Marketing Strategy
The strategic marketing plan process typically has the following stages:
5.1 Segmenting
A marketing segment is a group of people with the similar need and requirements.
The market segmenting for Morgan Rocks can be discussed as follows:
 Geographic :
 In 2000, 21.5 percent of tourists arrived to Nicaragua was North American,
7.8 percent was European.
 Demographic :
 Studies shows that majority of eco- tourists are in their fifties, well educated,
quality conscious and sensitive to supporting environmental awareness and
the heritage of local communities.
 Psychographic :
 The eco-tourists are generally belongs to upper social class.
 Behavioral:
 The eco-tourists travel to enjoy and appreciate nature in ways that benefit
the both environment and local communities. This is the fastest growing
segment of the travel industry if Nicaragua. Studies show that, since 1990, it
has grown at an annual rate of 10% to 30% per annum, while the overall
tourism had grown at 4% per annum. It also shows that eco-tourists are
willing to pay more than general tourists, which illustrate that buyers power
in eco-tourism is competitively less than conventional tourism.
The eco tourists have strong concern about nature and environmental issues, it is
also important to note that since eco-tourists feel that they had helped to preserve
the environment, the guest satisfaction levels of eco-tourists were noticeably high
as compared to conventional ones.
5.2 Revenue Potential of the Segment
The Unites States, following by Europe is the most important market for Morgan’s
Rock because of its high disposable income, potential volume of visitors and
geographical proximity. Since the per capita income in these regions is quite high
and people generally go on holidays more often, there is generous revenue
potential in this segment.
5.3 Target Market Strategy
The primary targets of Morgon Rock are the upscale tourists who have active
interests and concern about the nature, its conservation and community
development. The visitors from US are growing and segment size is also big,
therefore, on the basis of market segmentation analysis we can sum up that target
of market strategies are as follow;
 Geo-savvies
 Urban sophisticates.
Both of these are attractive segments and promises greater long term profitability.
Arrival to Central America, from Select Tourism-Generating Countries, 1999
5.4. Marketing Mix
Marketing efforts focus on building a loyal base of repeat customers that will use
the services provided continuously. The marketing mix is comprised of place,
products, pricing and promotions. Getting the perfect marketing mix is critical in
effectively marketing a product or service.
1. Product-Service Mix
It includes the services offered by the operation in order to satisfy customer’s

(guest) need. Every activity which adds value in the overall experience of the guest
during the stay should be included in to the regular activities. Therefore, customer
should be surveyed time to time both during the stay and after the stay (online) to
improve service offerings and maintain long term relationship with the customer.
Most importantly there should be coordination between the results of surveys and
operational activities.
2. Pricing
Since Morgan’s Rock is in upscale business it is comparatively less sensitive to price.

However, pricing should be rationalise to give customer value of their money
spend during the stay. Alternatively it could offer special discount to those who are
actively engaged in environmental conservation and community development
activities in any way to show its actual concern about nature preservation. This
practice will also help Morgan’s Rock to a build a brand which is taking initiatives to
prevent environment.
3. Promotions
The purpose of promotion is to inform and make people more aware of a brand, as
well as improving future sales. Advertising is the most widely used tool to
communicate the information, and can be practiced through the choices of
medium such as TV, radio, internet and news papers. Selection of any of these
media depends upon the marketing budget and since there is not much
information related to marketing budget in the case it is challenging to select
choice of media.
Even though internet is not much significant for domestic visitors but to inform and
attract international visitors it should maintain an international website. The
website should be updated time to time and provide true and relevant information
to the potential guests.
Nevertheless, traditional medium of advertisement such as word of mouth and

recommendations to others are also a very power full tool of promotional aspect of
marketing. Morgan’s rock should also pay attention to such media as well.
4. Place:
To market effectively promotional message should be communicated at the right
time and at the right place. Hence, appropriate arrangement should be made in
Managua Airport where most (around 70%) of the potential visitors arrive. Some
stalls in the airport, especially during holidays, should be arranged in order to
provide necessary information and guidance to the potential visitors. Similar
arrangements can also be made on major destinations in the highways.
5.5 Implementation and Control
All the results achieved should be carefully monitored on an ongoing basis in

relation to projected objective versus actually realised objectives. If any major
change occurs in environmental factors then marketing strategy should be
adjusted accordingly. The delegated marketing team should ensure that marketing
plan is implemented accurately and efficiently. In order to control and monitor the
proper implementation of strategy, Balance Score Card framework by Kaplan and
Norton can be utilised. This will ensure that all the aspects of business are given
due consideration while implementing the marketing strategy.
References
 Brennan, DR Canning, LE Mc Dowell, R 2007, “Buyer Behaviour”, ch2 in

Businessto Business Marketing, Sage publications.
 Colin Drury, Management Accounting for Business, 3rd Etd
 Hooley, G.J, Piercy, N.F, Nicoulaud, B. (2008) Marketing Strategy and
Competitive Positioning, Prentice Hall (4th Etd).
 Philip Kotler, Gary Armstrong. (2008) Principles of Marketing, 12th Etd.
 Thomas L.wheelen, J. David Hunger, Krish Rangarajan (2008) Strategic
Management
 and Business Policy, Pearson Education (9th Etd)
 West, D Ford, J and Ibrahim, E (2006), Strategic marketing: creating
competitive advantage, oxford university press.
EMBA Pro Marketing 5C analysis for Morgan's Rock Hacienda &
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What is 5C Analysis of Morgan's Rock Hacienda & Ecolodge – Definition

& Explanation
5C Analysis is a marketing tool to do a situational analysis in which Ecolodge

Nicaragua operates in. It inculcates both the macro and micro environment factors
that impacts Ecolodge Nicaragua. The 5C analysis allows marketing managers to
put probabilities to different types of risk exposure Ecolodge Nicaragua is facing in
the marketplace and design marketing strategies accordingly.
Marketing strategy is about making marketing decisions in the face of macro

environment uncertainty, competitive pressures & strategies, and other economic
factors.
What are the Five C’s of the Marketing? How to Conduct a 5C Marketing
Analysis of Morgan's Rock Hacienda & Ecolodge Case Study
The 5Cs of Marketing Analysis are -

1 - Company,
2 - Customers,
3 - Competitors,
4 - Collaborators, and
5 - Context.
Ecolodge Nicaragua faces 4 major types of risk exposures – risk corresponding to

technological innovations, demand risks, production or delivery risks, and
international risks.
Company Analysis - 5C of Marketing
Key Question Answered – What are the strengths and weaknesses of the
company and how marketing can improve the effectiveness of its core
strength and alleviate the impact of its weaknesses.
Marketing managers at Ecolodge Nicaragua needs to analyze the internal strengths

and weaknesses of the company before making marketing decisions. Each
organization has different marketing budget, different skill sets to execute
marketing strategies and promotional campaigns. The company analysis will help
the Ecolodge Nicaragua to optimize the use of the marketing resources. In terms of
the four risks mentioned above –Marketing managers at Ecolodge Nicaragua needs
to focus on risks corresponding to production and delivery risks. If the company
fails to match the consumer expectations then no amount of smart marketing can
build a sustainable competitive advantage.
Company Factors
Ability to scale production – Ecolodge Nicaragua has a robust and flexible supply
chain so it can meet the challenges of managing success arising from highly
successful marketing efforts that lead to surge in consumer demands for its
products.
Brand Equity – Ecolodge Nicaragua has strong brand equity both among the
existing customers and potential customers. It can leverage this brand equity to
expand into new segments.
Research and Development spending – As a leader in various product segments,

Ecolodge Nicaragua spends significant amount of resources on research and
innovation in field of – product design, process optimization, marketing strategies,
and building IT network to support all the promotion and distribution strategies.
Culture of the Ecolodge Nicaragua – As the Morgan's Rock Hacienda & Ecolodge
explains the firm has a strong culture of product and process innovations.
Checkout Marketing 4P and Marketing Mix Analysis Marketing 4P & Mix analysis of
Customers - 5C Marketing Analysis
Key question answered - How Ecolodge Nicaragua can identify attractive

market segments and choose a market targeting strategy.
Marketing strategy of Ecolodge Nicaragua needs to meet two broad objectives –

carefully selecting target market and designing marketing activities to achieve
desired positioning in hearts and minds of the target market. Customer analysis by
marketing managers of Ecolodge Nicaragua can include – growth rate of the
industry, potential market size of both the overall market and target segment,
tangible and intangible product features desired by consumers in the industry, core
purpose of buying the products, frequency of purchase, recent purchases, industry
trends, income levels etc.
Based on our 4 broad risk framework for 5C analysis – marketing managers should
focus on demand risk and technology risk in customer analysis section.
Customers Factors
Who the target customer is – Should Ecolodge Nicaragua go for a broader
segment or position its product in niche segment. My suggestion is that it should
focus on the niche segment as it is highly profitable.
What are the features most desired by consumers – Marketing managers at

Ecolodge Nicaragua needs to decide which are the features most desired by
consumers and how Ecolodge Nicaragua can position itself to deliver those 2-3
critical features.
What type of product Ecolodge Nicaragua is selling – High involvement product or

low involvement product require different marketing strategies. High involvement
products often have higher brand loyalty and less price sensitivity compare to low
involvement products where industry players often compete on prices.
What is the level of brand awareness among target segment and general
population – The brand awareness among the target segment and among wider
population is high. Ecolodge Nicaragua can leverage on it to build sub brands for
niche segments within the target market and adjacent segments.
What is market size of the segment that Ecolodge Nicaragua wants to target – I
believe the market size will grow at a steady pace and it will present various
opportunities to expand into adjacent segments.
Competitors - 5C Marketing Analysis
Key Question Answered – Who the competitors are, what their marketing
strategy is, and how Ecolodge Nicaragua can design its marketing strategy in
view of competitive pressures and limited marketing resources.
The core function of marketing strategists and marketing managers is to design

marketing activities that can help Ecolodge Nicaragua to thwart competitive
pressures from established players as well as potential entrants. Marketing
managers of Ecolodge Nicaragua has to make decisions regarding –
Where to position the brands respective to Ecolodge Nicaragua own brands

portfolio and competing brands
What are the marketing strategies of competitors.
Should Ecolodge Nicaragua competes directly with the competitors or find niche
positions within the segments.
What type of competition there is in the industry that Ecolodge Nicaragua operates
in.
Based on our four risks exposure framework – In competitors analysis marketing

managers of Ecolodge Nicaragua should closely analyze – demand risks and
technology innovation risks.
Competitors Factors
Countering Marketing Campaigns of Competitors – Often one competitor

campaign has to be matched with a counter campaign to stop the product trial of
the competitor’s product by the firm loyal customers. It has to be done to control
the churn of customers.
Threats of substitutes to Ecolodge Nicaragua – The threats of substitutes often

arise either from economic cycle or technological innovation. It may require
repositioning of certain brands on part of Ecolodge Nicaragua in certain markets.
Threats of new entrants to profits of Ecolodge Nicaragua – Marketing efforts are

often barriers to entry in the industry and new entrants not only have to have huge
marketing resources to compete with the incumbents but also need high level of
marketing know how.
Intensity of rivalry among existing players – if the intensity is high then the
profitability is usually low in any industry. Thus it requires Ecolodge Nicaragua to
spend higher resources on marketing efforts.
Product Line Depth Decisions for Ecolodge Nicaragua – Depth involves targeting
different segments within the same product range. Higher the depth, the more the
company needs to spend on individual brands without putting too much focus on
the parent company.
Product Line Breath Decisions – This not only pertains to Ecolodge Nicaragua
product strategy but also its distribution and supply chain management strategy.
Broader line requires more positioning strategies and higher marketing spending.
Positioning strategy vis a vis competitors – The critical marketing decisions for
managers at Ecolodge Nicaragua is what strategic position to choose which at
same time is – different from competitors and relevant to the customers.
What will drive future growth and how competitors will try to take share of that
future growth – technology innovations can result in making present positioning
less profitable so Ecolodge Nicaragua needs to continuously innovate and look for
new opportunities.
Collaborators - 5C Marketing Analysis
Key Question Answered – How flexible & robust Ecolodge Nicaragua supply
chain is and how much bargaining power the collaborators in the value chain
have.
Collaborators include the supply chain partners both upstream and downstream of
the value chain. For doing Collaborators analysis Ecolodge Nicaragua needs to
critically evaluate the supply chain based on numerous factors such as – bargaining
power, what suppliers bring to table, flexibility & agility of supply chain, revenue
sharing at each step of the value chain.
Based on risk exposure parameters under the collaborators analysis Ecolodge

Nicaragua marketing managers should focus on risk exposure to international risks
(because Ecolodge Nicaragua has international operations), and production and
delivery risks. For example if the collaborators effectively able to meet the demand
increased by effective advertising of Ecolodge Nicaragua marketing department
then it will go a long way in enabling the company to thwart new competition and
devise premium pricing strategy.
Collaborators Factors
Position and bargaining power in the value chain – If the collaborators have strong
bargaining power then Ecolodge Nicaragua will not able to sustain higher margins
even with higher marketing expenditure.
Number of suppliers and abilities of the suppliers – If there are too many suppliers
then it will become expensive for Ecolodge Nicaragua to manage them but if the
number of suppliers is too few then it will expose the company to supply chain
disruption risks.
Flexibility of supply chain and international risks – In international markets the

critical question in front of Ecolodge Nicaragua is how much localize based on local
preferences. Rest of the decisions from production to marketing is based on this
critical decision. Opportunities to localize the production and other processes to
reduce risk of organization wide supply chain risk in international market.
Risks to intellectual property rights and patents – Operating in international

markets can expose Ecolodge Nicaragua to theft of Patents, Copyrights and other
Intellectual Property Rights. Any marketing and diversification decision should be
taken after evaluating these risks.
Managing delivery and services in times of uncertainty – Most global organizations

such as Ecolodge Nicaragua are diversifying rapidly to reduce delivery and supply
chain risks. Ecolodge Nicaragua should also focus on it.
Context - 5C Marketing Analysis
Key Question Answered – Which are the macro economic factors that will
significantly impact both the business model and the marketing strategy.
Context Analysis encompass the diligent analysis of macro environment factors

such as – political and social environment, regulatory environment, economic
conditions in the markets that the Ecolodge Nicaragua operates in, rate of
technology innovations in the industry, legal environment, environmental standards
in the industry etc.
Two main forms of risk exposure in the context analysis are – International risks,
and technology & innovation risks exposure.
Context Factors
Employment – Given the employment crisis in Western Europe and emergence of

Gig economy and employment in US and all the major western economies –
employment has become a critical factor in designing marketing strategy.
Employment not only impacts the purchasing power of the customer but also
impacts the self esteem and brands she can associate with.
Regulatory Framework – It not only impacts the type of the advertising and
marketing campaign a company can run but also the type of products Ecolodge
Nicaragua can sell. For example the standards & regulations for Ecolodge
Nicaragua products in US and European Union are vastly different.
Inflation & Diversification – Inflation impacts the pricing strategy of Ecolodge

Nicaragua as high inflation can result in lower income from the present sales.
Economic – The consumer behavior during boom time and recession time is often
totally different so marketing managers at Ecolodge Nicaragua has to decide how
the consumers will behave in the present economic situation.
Foreign Exchange Exposure – International operations not only bring risks of

marketing strategies that are not relevant to specific market but also risk of foreign
exchange exposure. In last 10 years most US organizations have lost money
because of FX exposure in countries such as Venezuela, Argentina, Turkey, Russia &
Indonesia.
Political Risks to Ecolodge Nicaragua – Geo-political risk have increased over the
last three to four years with developments such as US-China trade situation, Brexit,
and rise of yellow vests in France.
EMBA Pro Marketing Mix 4P Analysis for Morgan's Rock Hacienda &
Ecolodge case study

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Ecolodge


knowledge of the Sales & Marketing field, Marketing Mix factors, Products related
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Marketing Mix of Morgan's Rock Hacienda & Ecolodge – Definition &

Explanation
Neil Borden of Harvard Business School first used the term “Marketing Mix” to
explain the set of activities that a firm uses to execute its marketing strategies.
According to Neil Border, organizations blend the various elements of marketing
mix into a marketing strategy that helps the organization to compete and
developed a differentiated positioning in the market place.
The 12 core elements of Neil Borden Marketing Mix are -

1 - Marketing Research – Fact Finding and Analysis,
2 - Pricing,
3 - Display,
4 - Channels of Distribution,
5 - Branding,
6 - Promotions,
7 - Personal Selling,
8 - Packaging,
9 - Advertising ,
10 - Servicing,
11 - Physical Handling - Logistics,
12 - Merchandising – Product Planning
Link for other resources
Consolidation of 12 elements of Marketing Activities into 4Ps of

Marketing Mix
Jerome McCarthy consolidated the 12 elements of marketing mix and other critical
component into a simplified framework – 4Ps of Marketing Mix.
What are the 4P’s of Marketing Mix

The 4Ps of Marketing Mix are -
1. Product – The products Ecolodge Nicaragua is making or are in the pipeline to

capture potential markets.
2. Price – Pricing strategy that Ecolodge Nicaragua is pursuing in various customer

segments it is operating in.
3. Place (Channels of Distribution ) – Distribution mix of Ecolodge Nicaragua has

taken a new dimension with the emergence of Online Retailing & domination of
players such as Amazon.
4. Promotion (Communication Strategy of Ecolodge Nicaragua) – The emergence

of social media and online advertising has changed the landscape of Ecolodge
Nicaragua communication mix and communication strategy.
Products – 4Ps in Morgan's Rock Hacienda & Ecolodge Case

In marketing strategy, product is not viewed as a tangible product, but the source
of value to be delivered to the customers. Value to the customers of Ecolodge
Nicaragua can be delivered in numerous ways such as – priming and pre purchase
education provided by sales staff, point of sale equity, financing plans to purchase
the products, installation and repair services, word of mouth references, physical
product , quality assuring brand name, convenience of availability etc.
These numerous ways to understand product concept provide marketing managers

of Ecolodge Nicaragua an opportunity to differentiate its overall value proposition
from that of the competitors.
4 Stages of Product Management as part of Marketing Process

Identification of Opportunity – Market research and customer research is done to
identify the needs of the customers that Ecolodge Nicaragua can cater to with its
present and acquired resources.
Design and Testing – Product is designed based on the value proposition that
customers are seeking and one that Ecolodge Nicaragua can deliver. The key
consideration regarding product design and testing are – customer value
proposition, regulatory requirements, Ecolodge Nicaragua skills and resources,
opportunities for differentiated positioning, and profitability.
Ecolodge Nicaragua Product Launch – It includes decision regarding pricing,

communication strategy, distribution channel management, and building
infrastructure to provide post purchase services.
Product Life Cycle Management of Ecolodge Nicaragua products – Once the

product is launched the company needs to manage the life cycle of the product
through its various stages such as – introduction, growth phase, cash cow stage,
and finally decline stage.
Product Line Planning Decision
There are three major product line planning decisions that Ecolodge
Nicaragua can take – Product Line Breadth decision, Product Line Length
decision, and Product Line Depth decisions. Some of the considerations that
marketing managers at companyname need to take while making product line
decisions are –
1. Will the product will be viewed completely different from the existing products
of the firm and how much is the risk of cannibalization of the present brands by a
new brand.
2. How the new product brand launch will impact the overall brand equity of the
Ecolodge Nicaragua present brands and products. For example often launching a
no frill product may end up impacting the image of the company as an innovator in
the field. This is one of the reason why Apple stopped selling its plastic phones as it
negatively impacted the image of the company as a deliverer of superior hardware
products.
3. Does the product launch or product extension launch satisfy potential customer
needs and wants in a way that can deliver profits to the firm.
Product Line Breadth Decision for Ecolodge Nicaragua

As the position of Ecolodge Nicaragua in its industry well established it can expand
to the adjacent segments where the customers are using complimentary products
from other brands to get the maximum value out of the products.
Product Line Length of Ecolodge Nicaragua
The decision regarding product line has to be balanced between complexity of the
present products and service required, and available niche space available in the
market place. From my perspective at present Ecolodge Nicaragua should stick
with the present merchandise mix rather than launching new products to expand
the product line.
Product Line Depth of Ecolodge Nicaragua

These are decisions regarding how many different Stock Keeping Units (SKU) of a
given product. For example Apple has its iPhone in various colors even though the
hardware and software is the same.
Product - Broad Recommendations

1. Ecolodge Nicaragua can stop selling the products that are either not profitable
or not creating enough differentiation from the existing products.
2. Ecolodge Nicaragua can think of ways - how features and value can be added to
existing brands that help them in consolidating and increasing their market
position.
3. Ecolodge Nicaragua can introduce a new brand in the existing product line or it
can strive to establish a whole new product line.
4. Ecolodge Nicaragua can try to reposition the products from the existing brands
within one line.
Pricing – 4Ps of Marketing Morgan's Rock Hacienda & Ecolodge

Pricing is a highly complex activity and we will cover only a very limited aspect of
what goes into pricing decisions. To a large extend pricing depends upon the other
3Ps of marketing – product, place and promotion. Conceptually perceived value is
the maximum price a customer is willing to pay for Ecolodge Nicaragua product in
the given competitive context.
Cost Base Pricing

Under cost based pricing strategy – Ecolodge Nicaragua can work out what it takes
to produce the product and put a markup based on profit it wants earn. In a highly
competitive strategy with dynamic pricing the strategy may not be feasible. For
example Uber running losses in billions can provide lower prices and sustain
compare to individual taxi service provider who is not backed by private equity and
long term strategy.
Value Base Pricing

Value Base Pricing is a pricing strategy which is based on customer perception of
value. It inculcates put the number on both tangible and intangible benefits with a
clear understanding of elasticity of demand and competitive pressures.
Market Penetration Pricing

Ecolodge Nicaragua can employ this pricing strategy where it launch a new product
either at loss or at very low margin to get a foothold in the segment.
Market Skimming Pricing

For certain well established brands, Ecolodge Nicaragua can increase the prices as
customers can pay higher price.
Good Value Pricing

Offering right mix of product features, quality, and service combination at fair price.
For example offering a limited frill option - customers can have initial product
experience at an accessible price. GoPro use this strategy extensively.
Competition Based Pricing

The pricing strategy is based on the competition in the market. Under this strategy
Ecolodge Nicaragua focus is to match the prices of the competitors and focus on
reducing the cost of operations to increase profitability.
Pricing Recommendation
Based on the evidences at hand – we can choose the following pricing strategy
High Brand Awareness – The brand of Ecolodge Nicaragua is well respected in the
market so it can fetch a slight premium over the other competitive brands.
Innovative Product – With advanced features the product is perceived as innovative

in the current market context. A slight premium price will not only emphasize the
features of the products but also stops other players entering into the present
segment. A high premium price may attract new entrants and thus lower the
profitability.
Place – Distribution Channels - 4Ps in Morgan's Rock Hacienda &
Ecolodge Case
Place or Distribution Channel is a set of processes through which Ecolodge
Nicaragua delivers its products to the customers. Distribution & Marketing
channels fulfill various purposes such as – enabling product customization options
at the point of sales, easy availability of the products to end consumers , reducing
purchase lot size thus enabling opportunities for individual customers to buy
products, providing customers information about the products , logistics, providing
product quality assurance, after sales services and installation services,and
providing extensive product assortment using product line – breadth, length, and
depth.
Designing Channels of Distribution for Ecolodge Nicaragua
There are two major Channel of Distribution related decision criteria –
1. Channel Design
Ecolodge Nicaragua needs to choose whether it wants to implement a distribution
system which is – Direct, Indirect, or Both. The channel design decision involves -
understanding of customer value proposition, current customer convenience
points, length breadth and depth of Ecolodge Nicaragua product line, and
competitors’ distribution systems.
Direct Distribution System – Ecolodge Nicaragua putting its own direct distribution
channel and reach directly to the customers. It can be through opening its own
stores or just selling all the products online.
Indirect Distribution System – Ecolodge Nicaragua including channel partners such

as wholesalers, retailers, logistics companies, and distribution agents.
Hybrid Distribution System – Ecolodge Nicaragua should implement a hybrid

model where the critical aspect of distribution system are managed by Ecolodge
Nicaragua, and secondary functions such as logistics, warehousing, store
management etc are delegated to various channel partners.
2. Channel Management
Channel management is about managing various power centers within the delivery
system and managing them based on bargaining power of each player in the value
chain. The channel management from marketing perspective can be done
considering three critical aspects –
Customer Willingness to Search & Travel to Purchase Good – If the customer

willingness is high then company has a strong brand awareness and brand loyalty.
Ecolodge Nicaragua can design favorable channel policies vis a vis channel
partners.
Per Unit Cost of Stocking – If the cost is high then Ecolodge Nicaragua needs
channel partners which can pool in resources. Otherwise Ecolodge Nicaragua can
do the operations on its own.
Market Development Requirement – One of the most prominent functions of

channel is market development. If Ecolodge Nicaragua needs higher market
development efforts then it is sensible to include channel partners who have know
how and skills to expand into new markets.
Promotion - Marketing Communication

Promotion Mix or Integrated Marketing Communication strategy is a mix of various
promotion tools that are at disposal of Ecolodge Nicaragua. They are
– Advertising, Sales Promotion, Personal Selling, Public Relations, and Direct
Marketing.
Ecolodge Nicaragua can use all these five communication tools to persuasively
communicate to customer – existence of the product, price of the product,
differentiating features of the product, places where people can buy the products,
and finally how consumers can effectively use the products or services.
6M Model of Marketing Communication Strategy for Casename

With the increase importance of online advertising and social media role in product
promotion, 6M Model of marketing communication has become a critical
marketing tool in hands of marketing manager and promotion strategist to
measure marketing efforts impact. The 6M of Marketing Communication Strategy
Model are –
Market – The target segment – current or potential, at which the marketing
communication efforts are aimed at.
Mission – What are the goals and Key Performance Indicators of the marketing
communication strategy.
Message – What are the specific aspects – brand awareness, product features etc,
that Ecolodge Nicaragua wants to communicate to its target customers.
Media – Which are the most effective media vehicle that Ecolodge Nicaragua can
use to convey its message to its target market.
Money – Like all other organizations, Ecolodge Nicaragua has limited marketing
resources so it has to figure out how it needs to spend to get the best outcome
based on specified objectives.
Measurement – How is the promotion campaign impact is measured. It can vary

from brand to brand within the organization. For example – new product campaign
can be measured on spreading brand awareness, while existing product marketing
campaign can be measured on repeat purchase or product recall.
Email Marketing for Ecolodge Nicaragua

Email Marketing is form a direct marketing approach that Ecolodge Nicaragua can
take to directly reach out to its potential customers. Email Marketing can help the
Ecolodge Nicaragua to reach out high probability prospects based on the data
collected by the company using its kiosks, trade marketing, and customer survey.
Search Engine Marketing

Another popular form of advertising vehicle that has emerged in the last decade
and half is search engine marketing where advertisements are shown to the
customers based on their search history and browsing history. Like email
advertising this can result in relevant advertising to high potential prospective
customers who are already interested into products and looking for information
regarding
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Introduction to Porter Five Forces
First published in 1979, “How Competitive Forces Shape Strategy” by Michael E.

Porter, revolutionized the field of strategy. Popularly known as “Porter’s Five
Forces” - not only influenced a generation of academic research but also provided
a map to rigorously analyze the competitive forces.
Porter Five Forces that Determine Industry Structure
Porter Five Forces model is heavily borrowed from the traditional field of micro
economics. The five forces that determine the industry structure of organization in
casename case study are -
1. Bargaining power of suppliers of Ecolodge Nicaragua - If suppliers have

strong bargaining power then they will extract higher price from the Ecolodge
Nicaragua.
2. Rivalry among existing players – If competition is intense then it becomes

difficult for existing players such as Ecolodge Nicaragua to earn sustainable profits.
3. Threat of new entrants - if there is strong threat of new entrants then current
players will be willing to earn less profits to reduce the threats.
4. Threat of substitute products and services - If the threat of substitute is high

then Ecolodge Nicaragua has to either continuously invest into R&D or it risks
losing out to disruptors in the industry.
5. Bargaining power of buyers of Ecolodge Nicaragua – If the buyers have

strong bargaining power then they usually tend to drive price down thus limiting
the potential of the Ecolodge Nicaragua to earn sustainable profits.
Why Porter's five forces analysis is important for casestudyname?
You can use Porter Five Forces model to analyze the competitiveness faced by
protagonist in casestudy. Porter five forces analysis of casename case study will
help you in understanding and providing solution to – nature & level of
competition, and how Ecolodge Nicaragua can cope with competition.
Even though from outside various industries seem extremely different but analyzed
closely these five forces determines the drivers of profitability in each industry. You
can use Porter Five Forces to understand key drivers of profitability of Ecolodge
Nicaragua in casename case study.
Porter’s 5 Forces, Competitive Forces & Industry Analysis
The core objective of strategists and leaders in an organization is to help the

organization to build a sustainable competitive advantage and thwart competitive
challenges.
Step 1 – Defining relevant industry for Ecolodge Nicaragua in casestudy

Step 2 – Identify the competitors and group them based on the segments within
the industry
Step 3- Assess the Porter Five Forces in relation to the industry and assess which
forces are strong and which forces are weak.
Step 4 - Determine overall industry structure and test analysis of consistency
Step 5 – Analyze recent and future changes in each forces
Step 6 – Identify aspects of industry structure based on Porter 5 Forces that might
be influenced by competitors and new entrants.
How is Porter's five forces framework used in developing strategies?
To achieve above average profits compare to other industry players in the long run,
Ecolodge Nicaragua needs to develop a sustainable competitive advantage.
Industry analysis using Porter Five Forces can help Ecolodge Nicaragua in
casename case study to map the various forces and identify spaces where Ecolodge
Nicaragua can position itself.
By doing Industry analysis using Porter Five Forces, Morgan's Rock Hacienda &
Ecolodge can develop four generic competitive strategies.
The four generic competitive strategies that can be pursued in

casename case study are -
Cost Leadership
In cost leadership, Morgan's Rock Hacienda & Ecolodge can set out to become the
low cost producer in its industry. How it can become cost leader varies based on
the industry forces and structure. In pursuing cost leadership strategy, Ecolodge
Nicaragua can assess – (pursuit of economies of scale, proprietary technology,
supply chain management options, diversification of suppliers, preferential access
to raw materials) and other factors.
Differentiation
Ecolodge Nicaragua can also pursue differentiation strategy based on the industry
forces description in casename case study. In a differentiation strategy Ecolodge
Nicaragua can seek to be unique in its industry by providing a value proposition
that is cherished by buyers. Ecolodge Nicaragua can select one or more attributes
that can uniquely position it in the eyes of the customers for a specific needs. The
goal is to seek premium price because of differentiation and uniqueness of the
offering. Industry analysis using Porter Five Forces can help Ecolodge Nicaragua to
avoid spaces that are already over populated by the competitors.
Focus - Cost Focus & Differentiation Focus
The generic strategy of Focus rests on the choice of competitive scope within an
industry. Ecolodge Nicaragua can select a segment or group of segment and tailor
its strategy to only serve it. Most organization follows one variant of focus strategy
in real world.
The Focus Strategy has two variants.
(a) In cost focus a Morgan's Rock Hacienda & Ecolodge can seek a cost advantage
in its choses segment in casecategory.
(b) In Differentiation strategy Morgan's Rock Hacienda & Ecolodge can
differentiate itself in a target segment in its industry.
Both variants of the focus strategy rest on differences between a Morgan's Rock
Hacienda & Ecolodge ’s target segment and other segments in the industry.
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Porter Value Chain Framework
Value Chain is developed by management guru Michael E. Porter and it was a

major breakthrough in business world for analyzing a firm’s relative cost and value.
Value Chain was first introduced in 1985 in Harvard Business Review article and
Porter’s book “Competitive Advantage”. Value Chain is also known as “Porter’s
Value Chain Framework” and it is extensively used to analyze relevant activities of a
firm to shed light on the sources of competitive advantage. According to Michael
Porter – Competitive Advantage is a relative term and has to be understood in the
context of rivalry within an industry.
Porter Five Forces & Porter Value Chain
Porter started with the quintessential question – “Why are some companies more
profitable than others?” He answered the question in two parts – How companies
benefit or limited by the structure of their industry, and second a firm’s relative
position within that industry.
To conduct industry structure analysis Porter developed Five Forces Model, and to
understand the sources of competitive advantage of the firm in relation to
competitors in that industry Porter developed Value Chain Analysis Method.
The strengths of the Porter’s Value Chain Analysis are - how it disaggregates
various activities within the firm and how it put value to value creating activities in
an industry wide context.
Industry Structure Relative Position
Porter's Framework Five Forces Value Chain
The Analysis focuses on Drivers of Industry Profitability Differences in activities
The Analysis explains Industry average price and cost Relative Price and Cost
What is Competitive Advantage?
According to Michael Porter – “If a strategy is to have real meaning then it should
reflect directly into a company’s financial performance”. If Ecolodge Nicaragua have
a real competitive advantage, it means that compared to its rivals Ecolodge
Nicaragua is - operating at lower costs, commanding a premium price, or doing
both. Competitive advantage is about superior performance and it is a relative
term. When all rivals in the Ecolodge Nicaragua’s industry try to compete on the
same dimension, no one firm gains a competitive advantage.
Key Steps in Porter's Value Chain Analysis
Step 1 - Start by laying out the industry value chain
How far upstream or downstream do the industry’s activities extend?
What are the key value-creating activities at each step in the chain?
Compare the value chains of rivals in an industry to understand differences in

prices and costs
Step 2 - Compare firm in Morgan's Rock Hacienda & Ecolodge case study value chain
to the industry’s value chain
Present vs Alternative Value Chain - You should design an alternative value chain
and map out areas where improvements can be made. Comparing two or more
alternative value chains can provide a good insight into bottlenecks within the
industry.
Step 3 - Zero in on price drivers, those activities that have a high current or potential
impact on differentiation
Align price drivers in the value chain. Often price drivers are customer expectations
that customers are willing to pay more for. For example customers are willing to
pay more for flawless uniform experience in Apple products even though Apple
products are not the cutting edge products.
Step 4 - Zero in on cost drivers, paying special attention to activities that represent a
large or growing percentage of costs
If the strategy dictates cutting cost to be profitable then Ecolodge Nicaragua

should focus on areas that are not adding value to customers' expectations, and
costs that are there because of operational inefficiencies.
Value Chain Analysis of Morgan's Rock Hacienda & Ecolodge Case
Study
Value Chain and Value System
Ecolodge Nicaragua value chain is part of a larger value system of the industry that
includes companies either upstream (suppliers) or downstream (distribution
channels), or both. Manager at Morgan's Rock Hacienda & Ecolodge needs to see
each activity as part of that value system and how adding each activity or reducing
each activity impact the Morgan's Rock Hacienda & Ecolodge value chain. The
decision is regarding where to sit in the value system.
Value Chain Activities – Primary Activities & Support Activities
As per the Value Chain model there are broadly two generic categories of activities
– Primary Activities and Supporting Activities.
What are Primary Activities in Porter’s Value Chain?
As illustrated in the Value Chain diagram, Ecolodge Nicaragua has five generic
categories of primary activities –
Inbound Logistics
These activities of Ecolodge Nicaragua are associated with receiving, storing and
disseminating the inputs of the products. It can include warehousing of physical
products, material handling, as well as architecture to receive and store customer
information for digital media company. Ecolodge Nicaragua at present has
outsourced most of its inbound logistics activities.
Operations
Activities that help the organization to transform raw material into finished
products. For the purpose of this article the definition is broad – it can mean
moulding plastic to make products, using customer data to serve advertisements
based on usage behavior to clients etc.
Outbound Logistics
Ecolodge Nicaragua under takes these activities to distribute the finished products
to channel partners and final buyers. Outbound logistics activities include –
warehousing, scheduling, distribution network, wholesalers and retailers order
fulfillment, and processing.
Marketing and Sales
These activities are undertaken by Ecolodge Nicaragua to create means through

which the buyer can buy a firm’s products. These activities include – pricing,
advertising and promotion, sales force management, marketing, channel selection
etc.
Services
Ecolodge Nicaragua needs to provide after sales services and maintenance for
successful usage of the product. Service activities of Ecolodge Nicaragua can
include – installation services, post sales maintenance, product forward and
backend alignment of software, training, and part supply.
What are Support Activities in Ecolodge Nicaragua Value Chain?
As the name explains, Support Activities of Ecolodge Nicaragua are the one that
supports the firm’s Primary Activities. Porter divided the Support Activities into four
broad categories and each category of support activities is divisible into a number
of distinct value activities that are specific to the industry in which Ecolodge
Nicaragua operates. The four generic support activities are –
Firm Infrastructure
Firm infrastructure support activities at Ecolodge Nicaragua consists activities such

as – planning, general management, quality management, finance and accounting
and legal services.
Firm infrastructure activities at Ecolodge Nicaragua supports entire value chain
though the scope varies given that Ecolodge Nicaragua is a diversified company
even within the industry. For example the finance and planning at Ecolodge
Nicaragua are managed at corporate level while quality management, accounting
and legal issues are managed at business unit level.
Human Resources Management
In an environment where each organization is striving to become a learning

organization, Human Resources Management is key to the success of any
organization. HRM support activities include – Recruiting, Hiring, Training &
Development, Skill Assessment, People Planning, Selection and Compensation at
both business unit level and corporate level.
Human resource management affects competitive advantage in any firm, but in
some industries it is defining factor. For example in the consulting companies HR is
the main source of competitive advantage.
Technology Development
Technology supports almost all activities in modern day organization. In the

technology industry, technology development has become a source of competitive
advantage. Technology development at Ecolodge Nicaragua may include activities
such as - feature design, field-testing, technology selection, process engineering,
and component design.
Procurement Activities at Ecolodge Nicaragua
Procurement activities at Ecolodge Nicaragua include activities that are undertaken

to purchase inputs that are used by Ecolodge Nicaragua’s value chain. It doesn’t
include purchase inputs themselves. Purchased inputs may include - raw materials,
supplies, machinery, laboratory equipment, office equipment, and buildings.
Like all other value chain activities procurement also employs technology for things
such as – procedures, vendor management, information system, and supply chain
partner qualification rules and ongoing performance evaluation.
Metrics and KPIs to Avoid while Analyzing Morgan's Rock Hacienda &
Ecolodge Value Chain
Shareholder value, measured by stock price, is not a good barometer to analyze

value chain. It is preferred by top management but it is only useful in long run
rather than competitive strategy in short to medium terms.
Growth in sales is not a good goal for value chain analysis as every managers know
that boosting sales is easy to do by reducing the prices dramatically.
Growth or market share is also not a very reliable goal as often firms end up
pursuing market share at the cost of profitability.
What is PESTEL / PEST / STEP Analysis? How you can use PESTEL
Analysis for Morgan's Rock Hacienda & Ecolodge
At EMBA PRO, we specialize at providing professional PESTEL analysis & other
strategic management MBA resources. Morgan's Rock Hacienda & Ecolodge case
study PESTEL analysis includes macro environment factors that impact the overall
business environment – Political, Economic, Social, Technological, Environmental,
and Legal factors.
Morgan's Rock Hacienda & Ecolodge case study (referred as “Ecolodge

Nicaragua” for purpose of this article) is a Harvard Business School (HBR) case
study covering topics such as Sales & Marketing and strategic management. It is
written by Shuo Wang, Judith A. Siguaw, Penny Simpson and shed light on critical
areas in field of Sales & Marketing, Market research, Public relations that the
protagonist in the case study is facing.
Managers at Ecolodge Nicaragua need to examine three inter-related

environments in order to come up with an effective strategy. The three inter-
related environments are – industry environment in which the company operates
in, the geographic market or country in which company operates, and wider socio
economic / macro environment. PESTEL analysis is mainly the assessment of macro
environment factors.
Case Description of Morgan's Rock Hacienda & Ecolodge Case Study

penetration rate.
Case Study Solution & Analysis of Morgan's Rock Hacienda & Ecolodge
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Importance of PESTEL Analysis in Strategy Management & Planning

Process
Strategy planning process often requires five steps –
1. Choosing the vision, mission and the reason of existence for Ecolodge Nicaragua.
2. Analyze the Ecolodge Nicaragua external competitive environment to identify

opportunities and threats. PESTEL analysis is critical to understand the external
threats & opportunities arising because of the macro environment developments.
Changes in macro environment forces can impact the Porter Five Forces & industry
attractiveness. Thus significantly impacting the ability of Ecolodge Nicaragua to
build sustainable competitive advantage
3. Analyze Strengths and Weaknesses of Ecolodge Nicaragua.
4. Developing strategies that can capitalize on Ecolodge Nicaragua strengths and

help mitigate weaknesses and impact of threats of macro-environment.
5. Execution of the strategy and building a feedback loop, using which managers at
Ecolodge Nicaragua can fine tune processes and strategies going forward.
The Industrial Organization (I/O) approach advocates that for sustainable

competitive advantage external factors are as important as internal factors of the
Ecolodge Nicaragua. According to Michael Porter organizational performance is to
large extend determined by various industry forces.
What are Political Factors in PESTEL / PEST Analysis

The political factors play a huge role in not only investment decision by
transnational corporations but also by companies such as – Ecolodge Nicaragua.
Political environment and other factors not only impact the cost of doing business
but also long term sustainability. Some of the political factors are – governance
system, democracy & institutions, military coup chances, probability of armed
conflict, law and order in market etc.
Political Factors that Impact Morgan's Rock Hacienda & Ecolodge
- Regulatory Practices - The regulatory practices are streamlined with global norms
which have helped the country to improve its “ease of doing business” ranking.
- Democracy & Other Democratic Institutions – According to Shuo Wang, Judith A.

Siguaw, Penny Simpson the democratic institutions are needed to be strengthened
further so that business such as Ecolodge Nicaragua can thrive in an open,
transparent and stable political environment. Strengthening of democratic
institution will foster greater transparency and reduce the level of corruption in the
country.
- Threat of Terrorist Attacks – We believe in the world of post 9/11, corporations

such as Ecolodge Nicaragua have to live with operating under the shadow of a
terrorist attack. The prudent policy should be to take insurance and other types of
hedging instruments to mitigate the losses occurring because of the terrorist
attacks.
- International Trade & Other Treaties – The country has a good record of adhering
to international treaties it has done with various global partners. The government
of each party has adhered to the treaties done by previous governments, so there
is a consistency in both rule of law and regulations.
- Role Local Governments Play – Local governments are highly influential in the
policy making process and implementation as most of the policies and regulations
are implemented by the local government as enforcement agencies mostly report
to local government in their own states regarding various laws.
- Transition of Government and Changes in Policy – There is consistency in policy

making from one government to another. Secondly governments from all parties
adhere to the treaties made by the previous governments.
- Likelihood of Entering into an Armed Conflict – From the information in the

Morgan's Rock Hacienda & Ecolodge case study, I don’t think there is a likelihood
of country entering into an armed conflict with a neighboring country.
- Political Governance System – Based on the information provided in the Morgan's

Rock Hacienda & Ecolodge case study, it seems that the country have a stable
political system. Ecolodge Nicaragua can make strategies based on the stable
political environment.
What are Economic Factors in PESTEL / PEST Analysis

Economic factors of a country and region have a direct impact on the potential
attractiveness of a given market. Some of the economic factors that Ecolodge
Nicaragua should evaluate both in the present market and one in which it wants to
enter are – inflation rate, GDP growth rate, disposable income level etc.
Economic Factors that Impact Morgan's Rock Hacienda & Ecolodge
- GDP Trend & Rate of Economic Growth – The higher GDP growth rate signals
growing demand in the economy. Ecolodge Nicaragua can leverage this trend by
expanding its product range and targeting new customers. One way to start is by
closely mapping the changes in – consumer buying behavior and emerging value
proposition.
- Financial Market Structure and Availability of Capital at Reasonable Rates – The

quantitative easing policy of Federal Reserve has led to liquidity flooding all across
the global financial markets. Ecolodge Nicaragua can borrow cheaply under such
circumstances. But this strategy entails risks when interest rate will go up.
- Work Force Productivity – Work force productivity in US has grown by 25-30 % in

last two decades even though the salaries are not reflecting those gains. It can
enable Ecolodge Nicaragua to hire skilled workforce at competitive salaries.
- Level of Household Income and Savings Rate – Increasing consumption and

stagnant household income in United States had led to credit binge consumption.
It has decimated the culture of savings as people don’t have enough to save.
Ecolodge Nicaragua needs to be careful about building marketing strategy that is
dependent on “Purchase on Credit” consumer behavior.
- Price Fluctuations in both Local and International Markets – Compare to the level
of quantitative easing in last decade the prices of Ecolodge Nicaragua products
and prices of overall products have remained sticky in the US market. Ecolodge
Nicaragua should consider the fact that at deficit levels of United States in an
emerging economy can lead to rampant inflation and serious risks of currency
depreciation.
- Foreign Exchange Rate – Number of companies have incurred losses in past few
years because of forex risk in – Venezuela, Brazil, and Argentina. Ecolodge
Nicaragua should be careful about the history of forex risk before entering new
market. Many US companies have incurred losses in Mexico in regular forex crisis in
that country.
- Employment Rate – If the employment rate is high then it will impact Ecolodge
Nicaragua strategies in two ways – it will provide enough customers for Ecolodge
Nicaragua products, and secondly it will make it expensive for Ecolodge Nicaragua
to hire talented & skillful employees.
What are Social Factors in PESTEL / PEST Analysis
Social factors such as demography trends, power structure in the society, women
participation in workforce etc have immense impact over not only the country's
economy but also on workforce talent availability and level of consumer demand.
Social Factors that Impact- Morgan's Rock Hacienda & Ecolodge
- Gender Composition in Labor Market Ecolodge Nicaragua can use gender

composition of labor market to understand the level of liberal nature of the society,
women rights, and women’s say in matter of societal issues and consumption
decisions. The gender composition of labor market is a good indicator of disposal
income of household, priorities of the households, and related needs.
- Types of Immigration & Attitude towards Immigrants – Given the latest

developments such as Brexit and Immigrant detention on Southern border of
United States. Attitude towards immigration has come under sharp focus. Ecolodge
Nicaragua should have capabilities to navigate under this hyper sensitive
environment.
- Education Level in Society – Education level of the society impacts both the
quality of jobs and level of income. High level of education often results in better
jobs, higher income and higher spending on complex and aspirational products.
- Nature of Social Contract between Government & Society – Before entering into a
market Ecolodge Nicaragua needs to understand the nature of social contract
between government and society. For example it has been extremely difficult for
US companies to enter UK health market as UK health system is a nationalized
system and everything goes through contracts at national level.
- Attitude towards Leisure – Ecolodge Nicaragua should conduct an ethnographic

research to understand both attitude towards leisure activities and choice of leisure
activities. Experience economy is one of the fastest growing segments both among
millennials and among baby-boomers.
- Attitude towards Authority – Various cultures in different part of the world have
different attitude towards authority. In Asia authority is respected while in west it is
something to rebel against. Ecolodge Nicaragua should carefully analyze the
attitude towards authority before launching a marketing campaign for its products
and services.
- Immigration Policies and Level of Immigration – What are the immigration

policies of the country, what is the level of immigration, and in which sectors
immigration is encouraged. This will enable the Ecolodge Nicaragua to determine –
if required can it hire talent globally to work in that particular market.
- Attitude towards Health & Safety – The attitude towards health and safety is often
reflected in the quality of the products and cost structures of manufacturing
processes. Ecolodge Nicaragua has stringent norms for health and safety norms so
in emerging economies it may have to compete with players who don’t have high
cost structures that of Ecolodge Nicaragua.
What are Technological Factors in PESTEL / PEST Analysis

Technology is fast disrupting business models across various industries. Some of
the technology trends that are impacting the macro environment are –
developments in artificial intelligence, use of machine learning and big data
analytics to predict consumer behavior, growing importance of platforms over
service providers etc.
Technological Factors that Impact Morgan's Rock Hacienda & Ecolodge
- Empowerment of Supply Chain Partners – Ecolodge Nicaragua should analyze

areas where technology can empower supply chain partners. This can help
Ecolodge Nicaragua to bring in more transparency and make supply chain more
flexible.
- Cost of Production and Trends – Ecolodge Nicaragua should assess - What are
the cost of production trends in the economy and level of automatization. We at
EMBA Pro believe that in near future the sector most disrupted by technological
innovation is manufacturing and production.
- Level of Acceptance of Technology in the Society – Ecolodge Nicaragua has to

figure out the level of technology acceptance in the society before launching new
products. Often companies enter the arena without requisite infrastructure to
support the technology oriented model.
- Integration of Technology into Society & Business Processes – Uber failed in

China because it tried to enter before smartphone were widespread in China.
Ecolodge Nicaragua should build a strategy that can integrate societal values,
infrastructure, and Ecolodge Nicaragua business model.
- E-Commerce & Related Infrastructure Development – As E-Commerce is critical

for Ecolodge Nicaragua business model. It should evaluate the e-commerce
infrastructure, technology infrastructure etc before entering a new market.
- Property Rights & Protection of Technology Oriented Assets – Ecolodge

Nicaragua should analyze the legal status of various property rights and intellectual
property rights protections that are common in US.
- Transparency & Digital Drive – Ecolodge Nicaragua can use digitalization of
various processes to overcome corruption in the local economy.
- Acceptance of Mobile Payments and Fintech Services – One of the areas where US
are lacking behind China is Mobile Payments. Ecolodge Nicaragua should assess
what are preferred choice of mobile payments in local economy and chose the
business model based on it.
What are Environmental Factors in PESTEL / PEST Analysis
Environmental factors are fast gaining traction not only among consumers but also
among regulators and policy makers. Climate change and changing ecosystem is
leading to the extinction of more than 20% of species on the planet by the turn of
this century.
Environmental Factors that Impact Morgan's Rock Hacienda & Ecolodge
- Environmental Regulation Impacting Absolute Cost Advantage Dynamics in the

Industry.
- Corporate Social Responsibilities Culture – Are Ecolodge Nicaragua present CSR

efforts applicable in the new market or does it needs to have new initiative to cater
to the prospective market.
- Level of Consumer Activism Regarding Environmental Concerns – Ecolodge

Nicaragua needs to know the level of consumer activism regarding environmental
concerns is. It will help Ecolodge Nicaragua in both developing environmentally
friendly products and thwarting PR stumble blocks.
- Influence and Effectiveness of Environmental Agencies – The role of environment
standards enforcement agencies is critical in safeguarding norms. But often in
emerging countries these agencies delay the process as a tactic to extract bribes.
Ecolodge Nicaragua should be aware of presence of such practices in a country.
- Recycle Policies – What are the recycle policies in prospective market and how
Ecolodge Nicaragua can adhere to those policies.
- Per Capita and National Carbon Emission – What is the per capita carbon
emission of the country and what is the overall level of carbon emissions of the
country. This will help in better predicting the environment policy of the country.
- Waste Management – What is the policy of waste management in the prospective

market and how Ecolodge Nicaragua can adhere to the waste management
requirements in that market.
What are Legal Factors in PESTEL / PEST Analysis
Legal factors often govern – conditions to enter the market, laws to operate in the
market, and procedure to resolve any dispute with other stakeholders. If the legal
system is not strong then Ecolodge Nicaragua can face numerous challenges –
from consumer petitions to shakedowns from authorities.
Legal Factors that Impact Morgan's Rock Hacienda & Ecolodge
- Employment Laws – What are the employment laws in the country and are they
consistent with the business model of Ecolodge Nicaragua. For example Uber
employment system is not consistent with French laws and it is facing challenges in
the country.
- Time Taken for Court Proceedings – Even if the country has best of the laws, it
doesn’t mean much if they can’t be enforced in a timely manner. Ecolodge
Nicaragua should do a primary research regarding how much time it often takes to
conclude a court case in the country given the sort of legal challenges Ecolodge
Nicaragua can face.
- Laws regarding Monopoly and Restrictive Trade Practices – As a new player

Ecolodge Nicaragua shouldn’t be worried about the monopoly and restrictive trade
practices law.
- Transparency in Judiciary System & Processes – Transparency is essential for fair

and consistent decision making. If the process is consistent and transparent then
Ecolodge Nicaragua can plan ahead with greater conviction.
- Business Laws – Before entering into new market – Ecolodge Nicaragua has to
assess what are the business laws and how they are different from home market.
- Data Protection Laws – Ecolodge Nicaragua needs to assess what are the data
laws in the country and what it needs to do to comply with them. For example
most of EU countries now want the EU citizen data to be saved in EU countries
only.
- Health & Safety Laws – What are the health and safety laws in the country and
what Ecolodge Nicaragua needs to do to comply with them. Different countries
have different attitude towards health and safety so it is better for Ecolodge
Nicaragua to conduct a thorough research before entering the market.
and Legal factors.



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Process




- Democracy & Other Democratic Institutions – According to Shuo Wang, Judith A.

Siguaw, Penny Simpson the democratic institutions are needed to be strengthened
further so that business such as Ecolodge Nicaragua can thrive in an open,
transparent and stable political environment. Strengthening of democratic
institution will foster greater transparency and reduce the level of corruption in the
country.

attacks.
- International Trade & Other Treaties – The country has a good record of adhering
to international treaties it has done with various global partners. The government
of each party has adhered to the treaties done by previous governments, so there
is a consistency in both rule of law and regulations.




proposition.
- Financial Market Structure and Availability of Capital at Reasonable Rates – The

quantitative easing policy of Federal Reserve has led to liquidity flooding all across
the global financial markets. Ecolodge Nicaragua can borrow cheaply under such
circumstances. But this strategy entails risks when interest rate will go up.


- Price Fluctuations in both Local and International Markets – Compare to the level
of quantitative easing in last decade the prices of Ecolodge Nicaragua products
and prices of overall products have remained sticky in the US market. Ecolodge
Nicaragua should consider the fact that at deficit levels of United States in an
emerging economy can lead to rampant inflation and serious risks of currency
depreciation.
- Foreign Exchange Rate – Number of companies have incurred losses in past few
years because of forex risk in – Venezuela, Brazil, and Argentina. Ecolodge
Nicaragua should be careful about the history of forex risk before entering new
market. Many US companies have incurred losses in Mexico in regular forex crisis in
that country.

- Types of Immigration & Attitude towards Immigrants – Given the latest

developments such as Brexit and Immigrant detention on Southern border of
United States. Attitude towards immigration has come under sharp focus. Ecolodge
Nicaragua should have capabilities to navigate under this hyper sensitive
environment.
- Attitude towards Leisure – Ecolodge Nicaragua should conduct an ethnographic

research to understand both attitude towards leisure activities and choice of leisure
activities. Experience economy is one of the fastest growing segments both among
millennials and among baby-boomers.
and services.

- Attitude towards Health & Safety – The attitude towards health and safety is often
reflected in the quality of the products and cost structures of manufacturing
processes. Ecolodge Nicaragua has stringent norms for health and safety norms so
in emerging economies it may have to compete with players who don’t have high
cost structures that of Ecolodge Nicaragua.


flexible.

- Integration of Technology into Society & Business Processes – Uber failed in

China because it tried to enter before smartphone were widespread in China.
Ecolodge Nicaragua should build a strategy that can integrate societal values,
infrastructure, and Ecolodge Nicaragua business model.


- Transparency & Digital Drive – Ecolodge Nicaragua can use digitalization of
various processes to overcome corruption in the local economy.
- Acceptance of Mobile Payments and Fintech Services – One of the areas where US
are lacking behind China is Mobile Payments. Ecolodge Nicaragua should assess
what are preferred choice of mobile payments in local economy and chose the
business model based on it.
this century.
- Environmental Regulation Impacting Absolute Cost Advantage Dynamics in the

Industry.

- Level of Consumer Activism Regarding Environmental Concerns – Ecolodge

Nicaragua needs to know the level of consumer activism regarding environmental
concerns is. It will help Ecolodge Nicaragua in both developing environmentally
friendly products and thwarting PR stumble blocks.
- Influence and Effectiveness of Environmental Agencies – The role of environment
standards enforcement agencies is critical in safeguarding norms. But often in
emerging countries these agencies delay the process as a tactic to extract bribes.
Ecolodge Nicaragua should be aware of presence of such practices in a country.

the country.
Nicaragua can face.

practices law.
- Transparency in Judiciary System & Processes – Transparency is essential for fair

and consistent decision making. If the process is consistent and transparent then
Ecolodge Nicaragua can plan ahead with greater conviction.
- Business Laws – Before entering into new market – Ecolodge Nicaragua has to
assess what are the business laws and how they are different from home market.
only.
- Health & Safety Laws – What are the health and safety laws in the country and
what Ecolodge Nicaragua needs to do to comply with them. Different countries
have different attitude towards health and safety so it is better for Ecolodge
Nicaragua to conduct a thorough research before entering the market.
EMBA Pro Marketing Strategy Solution for Morgan's Rock Hacienda &
Ecolodge case study

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EMBA Pro Marketing Strategy Approach for Morgan's Rock Hacienda &
Ecolodge


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Marketing Strategy Introduction
For successful marketing strategy at Ecolodge Nicaragua, the marketing managers

need– understanding of customers’ fundamental needs and drivers of those needs,
conceptualizing products and services that can meet those needs and are feasible
in Ecolodge Nicaragua financial and intellectual resources, and finally developing
marketing mix for entire go-to market strategy.
Objectives of Different Types of Marketing Strategies
Bring in new customers to Ecolodge Nicaragua – It may involve launching version

of product that can appeal to new segment of customers or entering into new
markets.
Increase sales of Ecolodge Nicaragua – The goal of marketing efforts is to increase

sales of the present products. It may involve selecting a new target segment or
positioning an existing product differently to a new segment.
Improve customer loyalty of Ecolodge Nicaragua customers – Marketing efforts can

be used to increase loyalty among existing customers by organizing events, and by
providing post purchase information and services.
Better establish the brands of Ecolodge Nicaragua – Brand awareness and
positioning is one of the critical objectives of marketing and often organization
spend a significant part of marketing budget on brand positioning.
Increase market share of Ecolodge Nicaragua – Marketing efforts can be used to

increase market share either by driving increase in sales to new customers or by
driving higher sales to existing customers.
Introduce a new product or service of Ecolodge Nicaragua – It is the traditional

function of marketing mix – launching a new product and communicating its
features, superior value proposition, and uniqueness.
Get existing customers of Ecolodge Nicaragua to buy more – It often involves

selling accessories along with the existing products or increase the usage rate of
the existing products. Increase usage rate is comparatively a difficult task even with
a war chest of huge marketing resources.
Definition of Marketing
According to American Marketing Association (AMA) – Marketing is a set of

activities that an organization (both for profit & non-profit) undertakes to create,
communicate, deliver, & exchange products & services that have value for the -
customers, supply chain partners, clients, other stakeholders, and society at large.
Kotler in his book “Principles of Marketing” explains - Marketing is a process

through which firms such as Ecolodge Nicaragua can create value for its current
and potential customers, build relationship, and sustain that relationship by
continuously meeting their needs.
Five Stages of Marketing Strategy Process
Over the last decade the traditional role of marketing has diminished with the rise
of artificial intelligence driven algorithms that provides marketers an easy to
measure tool based on impression, clicks, and other behavioral aspects. But one
thing that has been lost in this easy to measure culture is – The power of marketing
functions to create new markets and customer segments. At EMBA Pro, we believe
that power of creating new markets still holds great potential for marketers in both
digital world and traditional media.
The five stages of Marketing Strategy Process of Ecolodge Nicaragua are -
Step 1 - Marketing Research & Analysis

Step 2 - Segmentation, Targeting & Positioning Decisions
Step 3 - Marketing Plan
Step 4 - Designing a Marketing Mix using 4Ps - Product, Price, Place & Promotion
Step 5 - Sustaining Value through Post Purchase Services
Step 1 - Marketing Research and Analysis
The first stage of the marketing process at Ecolodge Nicaragua is to do research

and analysis to identify unmet and even unknown customer needs. A good point to
start for the research and development is to conduct a 5C Marketing Analysis . The
5C Marketing Analysis framework comprises –
Customers Needs– What are the needs that Ecolodge Nicaragua seek to satisfy.
Who are the present customers and who are the potential customers for the new
product or service.
Company – What are the resources and special skills that Ecolodge Nicaragua
needs to possess to create products that can fulfill the needs of the prospective
customers. Check out the detailed SWOT Analysis for Ecolodge Nicaragua on the
following page.
Competitors – Who are the competitors in the target market and what value
proposition they are offering in the market place. Do they possess enough financial
and knowledge resources to develop new products to compete with Ecolodge
Nicaragua.
Collaborators – What sort of supply chain and value chain partners Ecolodge
Nicaragua needs to develop and deliver new product to final consumer. What are
the respective bargaining powers of value chain partners.
Context – What are the macro and micro environment factors that impacts the
business environment in which Ecolodge Nicaragua operates in. You can check out
PESTEL analysis of Ecolodge Nicaragua in greater detail on the following page.
Step 2- Selecting Target Customer Segment
The second step of Marketing Process after completing the 5C analysis is –

Selecting the Target Market. It requires three steps –
Segmentation
Market segmentation is the process through which marketing managers at

Ecolodge Nicaragua can divide the large market into smaller segments based on
distinct needs, characteristics, or consumer behavior. Ecolodge Nicaragua can do
segmentation based on following criteria – geographic, demographic, usage, user
status, income, lifestyle, value proposition priorties, benefits sought, loyalty status,
gender, social class, self-perception, psychographic factors, and other attitudes.
One of the most widely used multivariate segmentation system is – PRIZM,

developed by Claritas. It is widely used by various marketing and advertising
agencies. It comprises 68 customer segments based on the US Household
Purchasing Preferences data.
Targeting
Once the overall market is divided into various segments then Ecolodge Nicaragua
needs to choose a target segment or few target segments. The key is not to be
everything to everybody as the products can only deliver specific value proposition.
Conducting a Segment Attractiveness Analysis
First step in the targeting process is to conduct a Segment Attractiveness Analysis.

Under the Segment Attractiveness Analysis all the segments are evaluated based
on the following criteria –
Maturity of the market – For example within the car industry the SUV category is
more mature than Electric Vehicle market, so the margins can be very limited in the
SUV category but the demand forecasting is easy. On the other hand EV division
can have higher margins because of lower competition but the demand forecasting
can be a difficult process.
Customer behavior and loyalty analysis – How customers are behaving in each
segments and are there opportunities of over lapping. Loyalty behavior analysis is
also a critical factor in analyzing the conversion rate if the Ecolodge Nicaragua core
strategy is based on attracting existing players’ customers.
Profitability in various segments – Some segments often have higher margins

compare to another as explained in the automobile industry example above.
Mode of competition and business models – Sometimes the way competitors

compete shape the whole landscape of an industry. For example email can easily
be - paid product- , but organizations chose to make it free products to increase
customer base and lure in advertisers. So if Ecolodge Nicaragua is trying to enter a
segment where revenue from other division is financing the core service then it has
to build a requisite business model where revenue is driven by an adjacent or
related product and service.
Differentiation & Positioning
Differentiation process involves how Ecolodge Nicaragua is differentiating its

products and services in the market place compare to its competitors. Positioning
is the position of the brand or Ecolodge Nicaragua products in minds of target
customers – based on distinctive features, qualities and functions.
The differentiation and positioning task at Ecolodge Nicaragua require marketing

managers to do -
Identify competitive advantage or unique value proposition on which position the

brand in the mind of the consumers.
Choose competitive advantages that are most compatible with Ecolodge Nicaragua
marketing strategy. Marketing managers at Ecolodge Nicaragua can make
perceptual maps to better understand competitive positioning of various brands in
the market place.
Finally Positioning the brand as a deliverer of superior value to the target segment
and effectively communicating that position to consumers using marketing mix and
promotion mix.
You can also check out EMBA Pro - 5C Marketing Analysis of Morgan's Rock
Hacienda & Ecolodge
Step 3- Making a Marketing Plan
1. Objectives of the Marketing Plan : There are various objectives for which
Ecolodge Nicaragua marketing managers can make marketing plan – New product
launch, repositioning of existing brand, targeting new customer segment, entering
international markets etc.
2. Marketing and financial goals and objectives: The second step is to correctly
assess how much financial resources will be required to execute the marketing
plan. It involves resources spent from product development to building a
communication strategy mix.
3. Marketing mix: Building a marketing mix based on the marketing plan objectives
and limitations imposed upon it by the financial resources.
4. Marketing budget: Budget each prospective activity that will be under taken
under marketing mix strategy.
5. Monitoring and evaluating performance: Carefully monitor each marketing mix

activity and analyze the target performance with the actual performance. Which
media vehicles are performing better compare to others etc. This will help in
making changes and adaptation as we go along.
Step 4 – Four P's of Marketing Mix & Go-To Market Strategy –

Capturing Value
Guided by marketing strategy, the company designs an integrated marketing mix
made up of factors under its control—product, price, place, and promotion (the
four Ps of Marketing Mix). To design the best marketing strategy and mix, Ecolodge
Nicaragua should closely adopt the Four Ps of Marketing mix in accordance with
trends and forces in Ecolodge Nicaragua ’s marketing environment.
Product - Understand the deep-seated drivers of perceptions and behavior of

consumers and develop a product that appeal to those drivers.
Place – Evaluate the buying behavior and distribution channel costs to make a
channel decision.
Promotion - Engage with customers through use cases and benefits instead of
functionalities and features. Communication should be focused on experience
rather than product features.
Price – Price is often determined by marketing strategy, cost structure of the

company, competitive positioning of firm, brand positioning, and various other
factors. If the business model is built on conversion of existing customers then
Ecolodge Nicaragua needs to arrive at a price through research at which the
present customers are willing to switch to a new brand.
Step 5 - Post Purchase Services – Sustaining Value

Even though the number varies, the efforts taken to gain new customers are far
more and costly than those to keep the present customers loyal. Post purchase
services are critical to foster loyalty among the customers. Various ways in which
Ecolodge Nicaragua can improve the post purchase experience of the existing
customers –
Providing product care tips.
Providing installation and other related services.
Building communities where customers can share experience and help other
customers.
Taking regular feedback from customers and asking them how certain features can
be enhanced.
Providing regular maintenance services and spare parts, if the customer needs
them.
Post purchase services are critical not only to foster loyalty among the customers
but also to get continuous feedback and improve the products.
and Legal factors.



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Process





- Unrest within the Country & Chances of Civil Unrest – We don’t think that
Ecolodge Nicaragua business operations are facing any dangers from any kind of
civil unrest or internal militant operations in the country.


attacks.

- Size of Government Budgets – both Local Governments and National Government

– The government at both national level and local levels are running deficit
budgets which is boosting growth in the short term but may lead to increase in
inflation over medium term. The bond rating of national government is investment
grade.
- Inequality Index / Ranking on Gini Index – Gini Index and level of inequality are a
great barometer for harmony and development of a society. If there is huge
income inequality in the society then the likelihood of conflict and crime increases.
It can lead to uncertainty and suppression of consumption in both short term and
long term.

- Consumer Disposable Income – The household income of the country has

increased constantly in the last decade and half, compare to the USA market where
household income is still below 2007 levels and not increased in real terms since
early 1980’s. Ecolodge Nicaragua can leverage this trend to expand the market
beyond its traditional customers by employing a differentiated marketing
campaign.

proposition.
- Demand Shifts from Goods Economy to Service Economy – The share of services
in the economy is constantly increasing compare to the share of manufacturing,
goods, and agriculture sector.
- Birth Rate – Birth rate is also a good indicator of future demand. USA has avoided
the European Union style stagnant economy on the back of slightly higher birth
rate and higher level of immigration.
and services.

- Power Structure in Society – Ecolodge Nicaragua should carefully analyze both -

What is the power structure in the society? How it impacts the demand in the
economy. For example the power structure in US economy is slowly moving
towards the older generation as that generation has higher disposable income
compare to the younger generation.
- Societal Norms and Hierarchy – What sort of hierarchy and norms are acceptable
in society also influence the types and level of consumption in a society. In highly
hierarchical societies the power of decision making often reside at the top


- Mobile Phone & Internet Penetration – Ecolodge Nicaragua should assess the
level of internet and mobile phone penetration in the country as it will it in building
a requisite business model based on local needs and realities.

flexible.
- Intellectual Property Rights and Patents Protection – Before entering new market
Ecolodge Nicaragua should focus on the environment for intellectual property
rights.


- Preparedness for 5G Related Infrastructure – Countries across the world are trying
to prepare themselves to install 5G infrastructure. Ecolodge Nicaragua should
assess to what level the local market is prepared to roll out the 5G connectivity.
this century.

- Influence of Climate Change – How climate change will impact Ecolodge

Nicaragua business model and supply chain. For example if the supply chain is not
flexible it can lead to bottlenecks if shipments from one part of the world are
delayed because of sudden climate shift.
- Environmental Standards and Regulations both at National & Local Levels – Often
the environment policy at national and local level can be different. This can help
Ecolodge Nicaragua in numerous decisions such as plant location, product
development, and pricing strategy.
- Paris Climate Agreement and Commitment of National Government under the

Agreement – What are the commitments of the country under the Paris Agreement
and what is the general level of consensus regarding Paris Climate Agreement in
the country. For example Trump not standing by US commitments created an
environment of uncertainty.
- Independence of Judiciary and Relative Influence of Government – The judiciary

independence often reflect both strength and credibility of the institutions in the
country.
only.
the country.
Nicaragua can face.
- Intellectual Property Rights Protection – Ecolodge Nicaragua should assess the

level of protection that intellectual property rights get under the legal system of
the country.

practices law.
- Adherence to Common Law – Is the country following common law which is

uniform for all parties – whether domestic or international. If there is arbitrariness
in the judicial process then Ecolodge Nicaragua can’t be sure of the judgments.
EMBA Pro case study solution for Morgan's Rock Hacienda & Ecolodge
case study
At EMBA PRO, we provide corporate level professional case study solution.

Morgan's Rock Hacienda & Ecolodge case study is a Harvard Business School (HBR)
case study written by Shuo Wang, Judith A. Siguaw, Penny Simpson. The Morgan's
Rock Hacienda & Ecolodge (referred as “Ecolodge Nicaragua” from here on) case
study provides evaluation & decision scenario in field of Sales & Marketing. It also
touches upon business topics such as - Value proposition, Market research, Public
relations.

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penetration rate.
What is the Case Study Method ? How can you use it to write case
solution for Morgan's Rock Hacienda & Ecolodge case study?
Almost all of the case studies contain well defined situations. MBA and EMBA
professional can take advantage of these situations to - apply theoretical
framework, recommend new processes, and use quantitative methods to suggest
course of action.
Awareness of the common situations can help MBA & EMBA professionals read the
case study more efficiently, discuss it more effectively among the team members,
narrow down the options, and write cogently.
Case Study Solution Approaches
Three Step Approach to Morgan's Rock Hacienda & Ecolodge Case Study
Solution
The three step case study solution approach comprises –
Conclusions – MBA & EMBA professionals should state their conclusions at the very
start. It helps in communicating the points directly and the direction one took.
Reasons – At the second stage provide the reasons for the conclusions. Why you
choose one course of action over the other. For example why the change effort
failed in the case and what can be done to rectify it. Or how the marketing budget
can be better spent using social media rather than traditional media.
Evidences – Finally you should provide evidences to support your reasons. It has to
come from the data provided within the case study rather than data from outside
world. Evidences should be both compelling and consistent. In case study method
there is ‘no right’ answer, just how effectively you analyzed the situation based on
incomplete information and multiple scenarios.
Case Study Solution of Morgan's Rock Hacienda & Ecolodge
We write Morgan's Rock Hacienda & Ecolodge case study solution using Harvard
Business Review case writing framework & HBR Sales & Marketing learning notes.
We try to cover all the bases in the field of Sales & Marketing, Market research,
Public relations and other related areas.
Objectives of using various frameworks in Morgan's Rock Hacienda &

Ecolodge case study solution
By using the above frameworks for Morgan's Rock Hacienda & Ecolodge case
study solutions, you can clearly draw conclusions on the following areas –
What are the strength and weaknesses of Ecolodge Nicaragua (SWOT Analysis)
What are external factors that are impacting the business environment (PESTEL
Analysis)
Should Ecolodge Nicaragua enter new market or launch new

product (Opportunities & Threats from SWOT Analysis)
What will be the expected profitability of the new products or services (Porter Five
Forces Analysis)
How it can improve the profitability in a given industry (Porter Value Chain

Analysis)
What are the resources needed to increase profitability (VRIO Analysis)
Finally which business to continue, where to invest further and from which to get
out (BCG Growth Share Analysis)
SWOT analysis stands for – Strengths, Weaknesses, Opportunities and Threats.

Strengths and Weaknesses are result of Ecolodge Nicaragua internal factors, while
opportunities and threats arise from developments in external environment in
which Ecolodge Nicaragua operates. SWOT analysis will help us in not only getting
a better insight into Ecolodge Nicaragua present competitive advantage but also
help us in how things have to evolve to maintain and consolidate the competitive
advantage.
Strengths
- Streamlined processes and efficient operation management – Ecolodge Nicaragua
is one of the most efficient firms in its segment. The credit for the performance
goes to successful execution and efficient operations management.
- Strong Balance Sheet – The financial statement of Ecolodge Nicaragua looks

strong and will help the company going forward.
Weakness
- Little experience of international market – Even though it is a major player in local
market, Ecolodge Nicaragua has little experience in international market. According
to Shuo Wang, Judith A. Siguaw, Penny Simpson , Ecolodge Nicaragua needs
international talent to penetrate into developing markets.
- Low profitability which can hamper new project investment – Even though
Ecolodge Nicaragua financial statement is stable, but going forward Ecolodge
Nicaragua 5-7% profitability can lead to shortage of funds to invest into new
projects.
Opportunities
- Lucrative Opportunities in International Markets – Globalization has led to
opportunities in the international market. Ecolodge Nicaragua is in prime position
to tap on those opportunities and grow the market share.
- Increase in Consumer Disposable Income – Ecolodge Nicaragua can use the

increasing disposable income to build a new business model where customers start
paying progressively for using its products. According to Shuo Wang, Judith A.
Siguaw, Penny Simpson of Morgan's Rock Hacienda & Ecolodge case study,
Ecolodge Nicaragua can use this trend to expand in adjacent areas Market
research, Public relations.
Threats
- Age and life-cycle segmentation of Ecolodge Nicaragua shows that the company
still hasn’t able to penetrate the millennial market.
- Growing dominance of digital players such as Amazon, Google, Microsoft etc can
reduce the manoeuvring space for Ecolodge Nicaragua and put upward pressure
on marketing budget.
Once all the factors mentioned in the Morgan's Rock Hacienda & Ecolodge case
study are organized based on SWOT analysis, just remove the non essential factors.
This will help you in building a weighted SWOT analysis which reflects the real
importance of factors rather than just tabulation of all the factors mentioned in the
case.
What is PESTEL Analysis
PESTEL /PEST / STEP Analysis of Morgan's Rock Hacienda & Ecolodge

Case Study
PESTEL stands for – Political, Economic, Social, Technological, Environmental, and

Legal factors that impact the macro environment in which Ecolodge Nicaragua
operates in. Shuo Wang, Judith A. Siguaw, Penny Simpson provides extensive
information about PESTEL factors in Morgan's Rock Hacienda & Ecolodge case
study.
Political Factors
- Political consensus among various parties regarding taxation rate and investment
policies. Over the years the country has progressively worked to lower the entry of
barrier and streamline the tax structure.
- Political and Legal Structure – The political system seems stable and there is
consistency in both economic policies and foreign policies.
Economic Factors
- Inflation rate is one of the key criteria to consider for Ecolodge Nicaragua before
entering into a new market.
- Foreign Exchange movement is also an indicator of economic stability. Ecolodge

Nicaragua should closely consider the forex inflow and outflow. A number of
Ecolodge Nicaragua competitors have lost money in countries such as Brazil,
Argentina, and Venezuela due to volatile forex market.
Social Factors
- Consumer buying behavior and consumer buying process – Ecolodge Nicaragua
should closely follow the dynamics of why and how the consumers are buying the
products both in existing categories and in segments that Ecolodge Nicaragua
wants to enter.
- Demographic shifts in the economy are also a good social indicator for Ecolodge
Nicaragua to predict not only overall trend in market but also demand for
Ecolodge Nicaragua product among its core customer segments.
Technological Factors
- 5G has potential to transform the business environment especially in terms of
marketing and promotion for Ecolodge Nicaragua.
- Artificial intelligence and machine learning will give rise to importance of speed
over planning. Ecolodge Nicaragua needs to build strategies to operate in such an
environment.
Environmental Factors
- Consumer activism is significantly impacting Ecolodge Nicaragua branding,
marketing and corporate social responsibility (CSR) initiatives.
- Environmental regulations can impact the cost structure of Ecolodge Nicaragua. It
can further impact the cost of doing business in certain markets.
Legal Factors
- Property rights are also an area of concern for Ecolodge Nicaragua as it needs to
make significant Market research, Public relations infrastructure investment just to
enter new market.
- Health and safety norms in number of markets that Ecolodge Nicaragua operates
in are lax thus impact the competition playing field.
What are Porter Five Forces
Porter Five Forces Analysis of Morgan's Rock Hacienda & Ecolodge
You can use Porter Five Forces to analyze the industry in which Ecolodge Nicaragua
operates in and what are the levers of profitability in those segments –
differentiation, Market research, Public relations. Michael Porter Five Forces of
Strategy are –
Competition among existing players,
Bargaining power of suppliers,
Bargaining power of buyers,
Threat of new entrants, and
Threat of substitutes
Porter Five Forces can help in answering following questions for writing case study solution
for Morgan's Rock Hacienda & Ecolodge -
How attractive is the industry described in the Morgan's Rock Hacienda & Ecolodge?
Are some segments more attractive than others? Why? Identify, analyze, and evaluate the
strategy of the Ecolodge Nicaragua featured in the Morgan's Rock Hacienda & Ecolodge
case study.
What are the pros and Cons of each strategy? What impact Ecolodge Nicaragua actions
will have on industry and economy on whole?
What is VRIO Analysis
VRIO Analysis of Morgan's Rock Hacienda & Ecolodge
VRIO stands for – Value of the resource that Ecolodge Nicaragua possess, Rareness
of those resource, Imitation Risk that competitors pose, and Organizational
Competence of Ecolodge Nicaragua. VRIO and VRIN analysis can help the firm.
Competitiv
Resources Value Rare Imitation Organization Advantag
Opportunities in the Can be valuable No Can be imitated All the capabilities Has potentia
Adjacent Industries & as they will create by competitors of the organization
New Resources new revenue are not fully utilized
Required to Enter streams yet
those Industries
Brand Positioning in Yes No Can be imitated Yes, the firm has Temporary
Comparison to the by competitors positioned its Competitive
Competitors but it will require brands based on Advantage
big marketing consumer behavior
budget
Competitiv
Resources Value Rare Imitation Organization Advantag
Customer Network Yes, 23% of the Yes, firm has Has been tried by Company is Provide medi
and Loyalty customers invested to competitors but leveraging the term
contribute to build a strong none of them are customer loyalty to competitive
more than 84% customer as successful good effect advantage
of the sales loyalty
revenue
What is Porter Value Chain
Porter Value Chain Analysis of Morgan's Rock Hacienda & Ecolodge
As the name suggests Value Chain framework is developed by Michael Porter in

1980’s and it is primarily used for analyzing Ecolodge Nicaragua relative cost and
value structure. Managers can use Porter Value Chain framework to disaggregate
various processes and their relative costs in the Ecolodge Nicaragua.
This will help in answering – the related costs and various sources of competitive
advantages of Ecolodge Nicaragua in the markets it operates in. The process can
also be done to competitors to understand their competitive advantages and
competitive strategies.
According to Michael Porter – Competitive Advantage is a relative term and has to

be understood in the context of rivalry within an industry. So Value Chain
competitive benchmarking should be done based on industry structure and
bottlenecks.
What is BCG Growth Share Matrix
BCG Growth Share Matrix of Morgan's Rock Hacienda & Ecolodge
BCG Growth Share Matrix is very valuable tool to analyze Ecolodge Nicaragua
strategic positioning in various sectors that it operates in and strategic options that
are available to it.
Product Market segmentation in BCG Growth Share matrix should be done with
great care as there can be a scenario where Ecolodge Nicaragua can be market
leader in the industry without being a dominant player or segment leader in any of
the segment.
BCG analysis should comprise not only growth share of industry & Ecolodge
Nicaragua business unit but also Ecolodge Nicaragua - overall profitability, level of
debt, debt paying capacity, growth potential, expansion expertise, dividend
requirements from shareholders, and overall competitive strength.
Two key considerations while using BCG Growth Share Matrix for Morgan's Rock
Hacienda & Ecolodge case study solution -
How to calculate Weighted Average Market Share using BCG Growth Share
Matrix
Relative Weighted Average Market Share Vs Largest Competitor

What is SWOT Analysis & Matrix? How you can use SWOT Analysis for
At EMBA PRO , we specialize at analyzing & providing comprehensive, corporate
SWOT Analysis of Morgan's Rock Hacienda & Ecolodge case study. Morgan's Rock
Hacienda & Ecolodge "referred as Ecolodge Nicaragua in this analysis " is a
Harvard Business Review (HBR) case study used for MBA & EMBA programs. It is
written by Shuo Wang, Judith A. Siguaw, Penny Simpson and deals with topics in
areas such as Sales & Marketing Market research, Public relations
SWOT Analysis stands for – Strengths, Weaknesses, Opportunities, and

Threats that Ecolodge Nicaragua encounters both internally and in macro
environment that it operates in. Strengths and Weaknesses are often restricted to
company’s internal - resources, skills and limitations.
Opportunities and Threats are factors that are analyzed in view of the prevalent
market forces and other factors such as technological, economic , political, legal &
environmental, and social, health & safety.
According to global executive survey done by Harvard Business Review & Brightline
Initiative – Only 20% of the strategic targets set by organizations are realized. Rest
80% of the strategic targets are not achieved because of incomprehensive
planning, limited resource allocation, and poor execution.
The successful organizations such as Ecolodge Nicaragua are the one who able to
predict market trends better than others, provide resources to develop products
and services to leverage those trends, able to counter competitors’ threats, and
meet customers’ expected value proposition.

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What are the Four Elements of SWOT Analysis? How to use them for
Morgan's Rock Hacienda & Ecolodge case study?
The four key elements of SWOT analysis are - Strengths, Weaknesses,
Opportunities & Threats. Ecolodge Nicaragua can use strengths to create niche
positioning in the market, can strive to reduce & remove weaknesses so that it can
better compete with competitors, look out to leverage opportunities provided by
industry structure, regulations and other development in external environment, and
finally make provisions and develop strategies to mitigate threats that can
undermine the business model of Ecolodge Nicaragua.
Opportunities Threats
Strengths Strength Opportunities (SO) Strength Threats (ST) Strategies

Strategies
Ecolodge Nicaragua can use two approaches -

Using Ecolodge Nicaragua building on present strengths, or analyze the trend
strengths to consolidate and and build processes to two pronged market
expand the market position. penetration approach.
Weaknesse Weakness Opportunities (WO) Weaknesses Threats (WT) Strategies
s Strategies
Ecolodge Nicaragua should just get out of these

Building strategies based on business areas and focus on strength and threats bo
consumer oriented product or on weakness and opportunities box.
development and marketing
approach.
For more detailed SWOT Matrix strategy please go through the detailed analysis of
strengths, weaknesses, opportunities, and threats in next section.
What are Strengths in SWOT Analysis
Strengths - Morgan's Rock Hacienda & Ecolodge
Strengths are the Ecolodge Nicaragua capabilities and resources that it can
leverage to build a sustainable competitive advantage in the marketplace.
Strengths come from positive aspects of five key resources & capabilities - financial
resources, human resources, past experiences and successes, physical resources
such as land, building, and activities & processes .
- High Margins – Ecolodge Nicaragua charges a premium compare to its

competitors. According to Shuo Wang, Judith A. Siguaw, Penny Simpson of
Morgan's Rock Hacienda & Ecolodge case study, this has provided Ecolodge
Nicaragua resources to not only thwart competitive pressures but also to invest
into research and development.
- Strong relationship with existing suppliers – As an incumbent in the industry,

Ecolodge Nicaragua has strong relationship with its suppliers and other members
of the supply chain. According to Shuo Wang, Judith A. Siguaw, Penny Simpson ,
the organization can increase products and services by leveraging the skills of its
suppliers and supply chain partners.
- Strong Brand Equity and Brand Awareness – Ecolodge Nicaragua has some of the
most recognized brands in the domestic market it operates in. According to Shuo
Wang, Judith A. Siguaw, Penny Simpson , brand recognition plays a significant role
in attracting new customers looking for solutions in Market research, Public
relations adjacent industries.
- Strong Balance Sheet and Financial Statement of Ecolodge Nicaragua can help it
to invest in new and diverse projects that can further diversify the revenue stream
and increase Return on Sales (RoS) & other metrics.
- Diverse Product Portfolio of Ecolodge Nicaragua – The products and brand

portfolio of Ecolodge Nicaragua is enabling it to target various segments in the
domestic market at the same time. This has enabled Ecolodge Nicaragua to build
diverse revenue source and profit mix.
- First Mover Advantage – Ecolodge Nicaragua has first mover advantage in

number of segments. It has experimented in various areas Market research, Public
relations. The Sales & Marketing solutions & strategies has helped Ecolodge
Nicaragua in coming up with unique solution to tap the un-catered markets.
- Superior product and services quality can help Ecolodge Nicaragua to further
increase its market share as the current customer are extremely loyal to it.
According to Shuo Wang, Judith A. Siguaw, Penny Simpson in Morgan's Rock
Hacienda & Ecolodge study – there are enough evidences that with such a high
quality of products and services, Ecolodge Nicaragua can compete with other
global players in international market.
What are Weakness in SWOT Analysis
Weakness- Morgan's Rock Hacienda & Ecolodge
Weaknesses are the areas, capabilities or skills in which Ecolodge Nicaragua lacks. It
limits the ability of the firm to build a sustainable competitive advantage.
Weaknesses come from lack or absence of five key resources & capabilities -
activities & processes, physical resources such as land, building, human resources,
past experiences and successes, and financial resources .
- Implementation of Technology in Processes – Even though Ecolodge Nicaragua

has integrated technology in the backend processes it has still not able to harness
the power of technology in the front end processes.
- Low Return on Investment – Even though Ecolodge Nicaragua is having a stable

balance sheet, one metrics that needs reflection is “Return on Invested Capital”.
According to Shuo Wang, Judith A. Siguaw, Penny Simpson in areas Market
research, Public relations that Ecolodge Nicaragua operates in the most reliable
measure of profitability is Return on Invested Capital rather than one favored by
financial analysts such as – Return on Equity & Return on Assets.
- Lack of Work force diversity – I believe that Ecolodge Nicaragua is not diverse
enough given that most of its growth so far is in its domestic market. According to
Shuo Wang, Judith A. Siguaw, Penny Simpson , this can reduce the potential of
success of Ecolodge Nicaragua in the international market.
- Ecolodge Nicaragua business model can be easily replicated even with the
number of patents and copyrights the company possess. The intellectual property
rights are very difficult to implement in the industry that Ecolodge Nicaragua
operates in. According to Shuo Wang, Judith A. Siguaw, Penny Simpson ,
Intellectual Property Rights are effective in thwarting same size competition but it is
difficult to stop start ups disrupting markets at various other levels.
- Customer Dissatisfaction – Even though the demand for products have not gone
down but there is a simmering sense of dissatisfaction among the customers of
Ecolodge Nicaragua . It is reflected on the reviews on various on-line platforms.
Ecolodge Nicaragua should focus on areas where it can improve the customer
purchase and post purchase experience.
- Project Management is too focused on internal delivery rather than considering

all the interests of external stakeholders. This approach can lead to poor public
relation and customer backlash.
What are Opportunities in SWOT Analysis
Opportunities- Morgan's Rock Hacienda & Ecolodge
Opportunities are macro environment factors and developments that Ecolodge

Nicaragua can leverage either to consolidate existing market position or use them
for further expansion. Opportunities can emerge from various factors such as -
technological innovations, changes in consumer preferences, economic growth,
increase in consumer disposable income, and political developments & policy
changes .
- Changing Technology Landscape – Machine learning and Artificial Intelligence

boom is transforming the technology landscape that Ecolodge Nicaragua operates
in. According to Shuo Wang, Judith A. Siguaw, Penny Simpson , Ecolodge
Nicaragua can use these developments in improving efficiencies, lowering costs,
and transforming processes.
- Reducing Cost of Market Entry and Marketing into International Markets –
According to Shuo Wang, Judith A. Siguaw, Penny Simpson, globalization along
with boom in digital marketing and social media has considerably reduced the risks
of market entry and marketing in international market.
- Increasing Standardization – Ecolodge Nicaragua can leverage this trend to

reduce the number of offerings in the market and focus the marketing efforts on
only the most successful products.
- Developments in Artificial Intelligence – Ecolodge Nicaragua can use

developments in artificial intelligence to better predict consumer demand, cater to
niche segments, and make better recommendation engines.
- Lucrative Opportunities in International Markets – Globalization has led to

opportunities in the international market. Ecolodge Nicaragua is in prime position
to tap on those opportunities and grow the market share. According to Shuo
Wang, Judith A. Siguaw, Penny Simpson , growth in international market can also
help Ecolodge Nicaragua to diversify the risk as it will be less dependent on the
domestic market for revenue.
- Access to International Talent in Global Market – One of the challenges Ecolodge

Nicaragua facing right now is limited access to high level talent market because of
limited budget. Expansion into international market can help Ecolodge Nicaragua
to tap into international talent market. According to Shuo Wang, Judith A. Siguaw,
Penny Simpson , it can also help in bringing the talent into domestic market and
expanding into new areas Market research, Public relations.
What are Threats in SWOT Analysis
Threats- Morgan's Rock Hacienda & Ecolodge
Threats are macro environment factors and developments that can derail business
model of Ecolodge Nicaragua. Threats can emerge from various factors such as -
economic growth, increase in consumer disposable income, changes in consumer
preferences, technological innovations, and political developments & policy
changes .
- Culture of sticky prices in the industry – Ecolodge Nicaragua operates in an

industry where there is a culture of sticky prices. According to Shuo Wang, Judith A.
Siguaw, Penny Simpson of Morgan's Rock Hacienda & Ecolodge case study, this
can lead to inability on part of the organization to increase prices that its premium
prices deserve.
- Increasing costs component for working in developed market because of

environmental regulations – Ecolodge Nicaragua has to deal with these costs as
governments are trying to levy higher environmental taxes to promote cleaner
options. For Ecolodge Nicaragua it may result into higher logistics costs and higher
packaging costs.
- Growing Protectionism - Ecolodge Nicaragua should hedge the risk against

growing protectionism ranging from – storing data into international market to
diversifying risk by operating into countries at different economic cycle.
- Credit Binge post 2008 Recession – Easy access to credit can be over any time, so
Ecolodge Nicaragua should focus on reducing its dependence on debt to expand.
The party has lasted for more than a decade and rollback from Fed can result in
huge interest costs for Ecolodge Nicaragua.
- International Geo-Political Factors – Since the Trump election, geo-political

factors have taken a turn for growing protectionism. Developments such as Brexit,
Russian sanctions, foreign exchange crisis & inflation in Venezuela, lower oil prices
etc are impacting international business environment. Ecolodge Nicaragua should
closely focus on these events and make them integral to strategy making.
- Government Regulations and Bureaucracy – Ecolodge Nicaragua should keep a

close eye on the fast changing government regulations under the growing pressure
from protest groups and non government organization especially regarding to
environmental and labor safety aspects.

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5C Marketing Analysis of Morgan's Rock Hacienda & Ecolodge

4P Marketing Analysis of Morgan's Rock Hacienda & Ecolodge

Marketing Strategy and Analysis Morgan's Rock Hacienda & Ecolodge

PESTEL / STEP / PEST Analysis of Morgan's Rock Hacienda & Ecolodge

Case Study Solution of Morgan's Rock Hacienda & Ecolodge

SWOT Analysis and Solution of Morgan's Rock Hacienda & Ecolodge

An upscale ecolodge in southern Nicaragua hopes to achieve a 53% occupancy

Case Authors : Shuo Wang, Judith A. Siguaw, Penny Simpson

Topic : Sales & Marketing

Related Areas : Market research, Public relations

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Case Study Recommendation Memo Overview

What is Morgan's Rock Hacienda & Ecolodge Case Study

According to survey by Harvard Business Review, recommendation memo is the

Morgan's Rock Hacienda & Ecolodge Case Memo Structure

Background of Morgan's Rock Hacienda & Ecolodge

• How the technology challenges will impact the operations of companyname?

• How companyname inability to attract best talent is impacting its capacity to

It is a good practice to state the constraints such as – technology, capacity, budget,

Checklist for writing an excellent background section –

- Is the background clear, concise, and easy to follow?

- Does the background section of recommendation memo explain why action is

Issues and Analysis

How these issues can impact the Ecolodge Nicaragua.

Basis for recommendations

Providing supporting argument and evidences on why each recommendation is

The supporting evidences can include – financial statements, growth trajectory,

Marketing plan for morgan's rock

1st Jan 1970 Marketing Reference this

Disclaimer: This work has been submitted by a university student. This is not an

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2.0 Objectives of the Marketing Plan:

3.0 Situational Analysis:

It is essential to conduct some analysis of current state of affairs before formulating

3.1 The Market

3.1.1 Market trends and Growth Demand

Using PESTEL framework affect of macro-environment can be discussed as follow;

Nicaragua is not a technologically advanced country. Moreover, there is a gap

Nicaragua is a bio diverse, tropical frosted country bordered by Honduras to the

Factors Impact of factor Opportunity/Threa

2. Length of Stay and Other Considerations

4.0 The Organisation: Morgan Rock Hacienda & Ecolodge

Morgan Rock is “a project of nature conservation, community development and

4.2 Facilities and Services Offering:

Morgan’s Rock provides guest with a experience of luxury adventure, offers