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I.

Company Background

This place is home to natural and oceanic views with rare species of fish, birds,
and other wild animals. From the seashore, you will see the jewel-blue sea and white
fine sand. Alorro was discovered in the 1950’s by a couple from Banaybanay, a
municipality of Davao Oriental, they rode a boat and reached the shores of Kaputian.
They bought the land with a title from the natives of the area. They33 started developing
the place in the year 2000 and opened it in the public. Tourism in Samal was not yet
improved in the early 20’s as they have little to no income. Alorro Crystal originally
started as Alorro Beach Resort and was leased to Cheril A. Alorro, the youngest of the
Alorro siblings last 2015. The siblings decided to preserve the family business and it is
now under a new management in 2022 as the lease has already expired. It is being
managed by the Alorro siblings’ family corporation. Being 5 km away from the main
road, power interruptions are very frequent in the resort. Communicating with Alorro
Crystal is very difficult as well since there is no signal reception / wifi connection near
the area. Getting through Alorro Crystal Beach Resort is very challenging before as the
road is not very well developed with limestones as your pathway. You need to have a
bigger car. Alorro Crystal had a 2 week renovation for their amenities to open up more
space near the shore and bought cavanas to cater more families who wants to enjoy
and relax on the beach. With the progressive tourism in Samal Island, Alorro Crystal
continues to improve their overall amenities to accommodate more beach goers.

Business Model

Key Partners Samal LGU


Kaputian Beach Park
San Remegio Cove

Key Activities Customer Experience


Customer Support

Key Resources Crystal clear beach


Fine white sand
Family-oriented employees

Value Proposition Alorrow boasts a pristine beach. It has a long stretch of


clean beach line with fine white sand and emerald green
shade of sea.

Customer Relationship Positive feedback from customers who visited the resort
24/7 Customer Assistance Booth
Word of mouth
Customer Segments Usually working-class, frequent travellers, class B-D
families, budget-wise

Cost Structure Operating Costs


Maintenance Costs
Expansion Costs

Revenue Streams Entrance Fees


Accomodation
Rentals (Tent, Cottages, Tables and Cavana)
Corkages
Additional charges for electronic appliances
Store Rental

Customer Avatar

Problem Statement
Alorro Crystal had just changed their management after the lease has
expired. Alorro Crystal inherited the bad image of its predecessor and needed to
overhaul it. Aside from that, they also inherited the poor condition of the resort.
How could they improve their image while simultaneously generating income for
the owners?

A. Marketing Objectives
1. Create and empower a new brand for the business in the 1st
quarter of the year
2. Employ rebranding strategies to the resort for consistent brand
positioning in the 1st quarter of the year.
3. Generate progressive income of 300k - 400k monthly while
simultaneously developing the resort for the next 6 months
4. Increase sales revenue by 30% in the 3rd quarter of the year
II. Areas of Considerations
A. Porter’s Model

Threat of New Entrants ● The number of resorts in Samal Island is


(Low) rapidly increasing.
● Requires substantial cost and resource
investment
● High barrier to entry
● To increase profitability, the fixed pricing can be
reduced.

Threat of Substitute ● Samal Island’s recreational activities are


(Low) limited to beach resorts.
● Service oriented

Buyer Power (Low) ● Establish a large customer base. This is


beneficial in two ways. It will reduce buyer
bargaining power and provide the business the
ability to optimize its sales and operation
process.
● Innovative new products such as rooms,
cottages and discounts.

Supplier Power (Low) ● Experimenting with multiple products design


and materials so that if the price of one raw
material rises, they can switch to another.

Competitive Rivalry ● There are plenty of resorts in Samal.


(High) ● Establish a long term differentiation strategy.

B. PESTEL Analysis
Political Factors ● Level of corruption
● Transition of government and changes in
policies
● Pricing regulations
● Taxation
● Wage legislation

Economic Factors ● Inflation rate, interest rate, and exchange rate.


● Unemployment rate

Socio-cultural Factors ● Entrepreneurial spirit and broader nature of the


society.
● Attitudes on health, environmental
consciousness, etc.
● Leisure interests

Technological Factors ● Reviews on blogs/ vlogs can make or break the


resort’s reputation.
● Technological impact on product offering.

Environmental Factors ● Air and water pollution regulations in resort


industry
● Recycling
● Waste management in Services sector
● Attitudes toward “green” or ecological products.

Legal Factors ● Intellectual property protection/rights


● Mandatory employee benefits
● Health and safety law

C. SWOT Analysis
STRENGTHS WEAKNESSES

1. Pristine Beach. Alorro boasts a 1. Poor Customer Relations. There


Boracay-like beach with its is a big turnaround time in
stunning long stretch of white responding to bookings in their
shoreline. Facebook page. The operations
2. Comparatively low capital cost manager offers help but they still
since they already acquired the fail to respond to all queries.
land in 1997. 2. Lack of manpower. Although
3. Pet-friendly resort. Fur parents there are on-call employees,
can happily bring their pets to guests’ TAT on booking is still
enjoy the beach as the resort high and there is no SPOC for
does not restrict pets. customer needs and complaints.
4. Progressive financial position. They also lack lifeguards on
The owners are able to standby.
generate income that can be 3. Lack of competitive advantage.
used to fund their resort The resort lacks differentiation
improvements albeit being slow from its competitors.
progress. 4. Complicated Legal Form of
5. Child-friendly beach. The resort Operation. The business is
is kid-friendly since the shallow registered as sole-proprietorship
area is wide. but the co-owners manage it like
6. Availability of delicious and a corporation making the
affordable food. decision-making less effective.
7. Wide coverage for parking 5. Limited marketing. Their only
space marketing as of writing is through
word-of-mouth and FB page
promotion.
6. Limited Amenities. The resort
lacks comfort rooms and shower
rooms for both genders
7. Incoherent design concept.
Disorganized placement of open
cottages, tents, and
accommodation facilities.
8. Old Image. The previous
management left a rather poor
brand image which poses a
challenge to the current
management.

OPPORTUNITIES THREATS

1. Lifting of restrictions as COVID 1. The Kaputian Beach Park is a


cases slows down. As IATF public beach and can easily be
restrictions ease, more tourists accessed by boat from Sta. Ana
flock to Samal Island to get Wharf. It is relatively cheaper
away from the hustle and than Alorro considering it as an
bustle of the city. indirect competition
2. Tourists outside Davao. Samal 2. Competition from the nearby
Island is already making a resort and the potential threat
name to potential customers from another adjacent private
from Luzon and other parts of beach which the owners could
the Philippines. develop into a beach resort in the
3. The location is close to three future.
diving spots on Samal Island. 3. The location of the beach is far
4. Wide, open, and calm beach from Sasa Wharf might
space which is ideal for water discourage some travelers.
activities. Further, the road leading to the
5. Presence of boat operators beach is unpaved and can
who can be partnered with for sometimes be slippery during
additional water activities. rainy seasons.
6. Social Media Presence. Alloro 4. Weak signal coverage for internet
Crystal only has its FB page. data and phone
Opening additional social 5. Limited power supply. They are
media pages such as Tiktok located on the island that still has
and Instagram can widen the limited supply of electricity.
market reach and bring in
potential customers from all
around the world.

D. SWOT Matrix

STRENGTHS-OPPORTUNITIES WEAKNESSES-OPPORTUNITIES

S1O4 Recreational Beach Activities W1O2 Enhanced Customer


- the wide-open beach line can be Experience - improving customer
used by the customers to do some relationship management through
enjoyable activities. better internal communication and
logistics
S3O2 Customer Personalization -
emphasizing customer’s preferences W3O2 Brand Development -
by allowing them to personalize their maximizing consistent branding from
own packages social media marketing down to the
aesthetics of the resort to improve
S4O5 Progressive Cash Flow. The brand awareness
resort has strong cash flow, which
allows the company to expand into W5O6 Social Media Marketing -
new projects while simultaneously Maximizing other social media
entertaining customers platforms for increase scope

S5O1 Family-Featured Values - W6O4 Extended Product Offering -


create advertisements emphasizing adding various amenities to improve
the advantage of the beach favoring customer experience
families with kids.
W8O6 Social Media Rebranding -
creating a new brand together with the
new management

STRENGTHS-THREATS WEAKNESS-THREATS

S1T3 Word-of-Mouth Marketing - W1T3 Empowering CRM - develop


customers have been recommending strategies that focus on CRM
the resort to their friends despite being maximizing customer feedback for
surrounded by other beach resorts maximum positive customer
engagement
S3T3 Unique and Comfortable
Policy - sales and customer loyalty W3T1 Innovative Product Offering -
are boosted due to this policy that develop unique packages by partnering
implies a comfortable vibe and a with locals to increase product
dedication to providing customers with differentiation while encouraging local
value livelihood

S6T2 Value Added Product Offering W6T2 Additional Essential


- The menu allows affordable yet Amenities - the additional comfort
delicious food which can be requested rooms and shower rooms are not only
upon arrival or reservation for the environmental purposes but
also it will provide convenience to the
S7T2 Spacious Advantage - The customers which is of great advantage.
wide space can be utilized for parking
and other value added amenities W3T2 Green Marketing - develop
gaining competitive advantage environmental strategies to position the
business as unique while increasing
environmental awareness

W3T4 Public Wifi - providing options


for customers to be easily reached out
and maximizing the use of connectivity.

E. Internal-External Matrix
Internal Factors Evaluation Weight Rating Weighted Score

STRENGTHS

Prestine Beach 0.13 4 0.52

Pet Friendly Resort 0.02 2 0.04

Financial Position 0.05 3 0.15

Child-friendly Beach 0.06 3 0.18

Availability of affordable and delicious 0.04 2 0.08


food

Wide parking space 0.03 2 0.06

WEAKNESSES

Poor Customer Relations. 0.13 4 0.52

Lack of manpower 0.05 1 0.05

Lack of competitive advantage 0.07 2 0.14

Complicated Legal Form of Operation. 0.10 3 0.30

Limited marketing. 0.05 1 0.05

Limited amenities 0.07 2 0.14

Incoherent design concept. 0.10 3 0.30

Old Image 0.10 3 0.30

Total Weighted Score 100% 2.83

IFE results 2.83 meaning it has border line weak to average response to
its strengths and weaknesses and can still be improved.

External Factors Evaluation Weight Rating Weighted Score


OPPORTUNITIES

Lighter Covid19 restrictions 0.10 3 0.30

Potential market outside Davao 0.20 4 0.80

Resort is near to diving spots 0.05 2 0.10

Calm beach space 0.10 3 0.30

Presence of local boat operators 0.05 2 0.10

Social Media Presence 0.10 3 0.30

THREATS

Indirect competitors 0.03 1 0.03

Direct competitors 0.07 2 0.14

Distant beach location from the wharf 0.15 4 0.60

Weak signal coverage 0.05 2 0.10

Limited power supply 0.10 3 0.30

Total Weighted Score 100% 2.77

EFE results 2.77 meaning it has borderline weak to average response to


its opportunities and threats and can still be improved.
III. Alternate Courses of Actions

PROS CONS

ACA #1 Rebranding  Increased customers


1. Develop a rebranding interest
committee  Boost brand
2. Conduct marketing recognition
research to  New and improved
redetermine the STP services
process
3. Consistently present
colors in the beach
resort to empower the
new brand
4. Rebrand the resort
through the usage of
influencers trying out
the new amenities and
services the resort
has to offer.

ACA #2 Enhanced ● Increase customer


Customer Experience retention
1. Develop a ● Boost customer
personalized website lifetime value
that has customer ● Builds brand loyalty
feedback loop ● Impacts brand
(chatbot) reputability
a. Develop an ● Can give companies
omnichannel a competitive
experience for advantage
customers
b. Deliver
personalization
where customers
can customize
their packages
upon reservation
c. Encourage
proactive
experiences from
customers by
engaging them in
social medias
2. Use data and
analytics to measure
customer experience
a. Satisfaction survey
b. Insite surveys

ACA #3 Company  Increase


Restructuring Efficiency
1) Replace or re-  Provide excellent
assign employees services
in which are not  Removal of the
efficient at their rotten tomato of
job. the group
a. Perform  Can build
due customer
diligence satisfaction upon
amongst the hiring or
the shuffling of
employees employees
through
surveys
b. Study the
performanc
e of its
employees
2) Create new
departments
a. Create a
new
department
in which is
necessary
for the new
manageme
nt such as
separate
the PR
from the
Marketing
department
.

IV. Conclusion
Starting with a bad brand image is not the most ideal way to launch a
newly renovated resort. However, the such may be mitigated into
something that can be used as a marketing advantage for the resort. The
renovation may used as a gateway for widespread promotion of the resort
as well as the company rebranding can play a big role in getting rid of its
old brand image.

V. Recommendations

We would like to recommend all the courses of action listed above,


however in order. The first course of action be taken should be the
company rebranding. Having the resort rebranded a new persona will
emerge from it, the old and bad brand image from before can be washed
away if the rebranding is done successfully. Second, company
restructuring must take place to ensure the quality of service of the new
brand that will be launched and promoted. And after all of this things, if the
rebranding and restructuring be successful; the company may focus on
enhancing customer satisfaction.

30-60-90 Plan

Link for diving site map:


https://www.wheninmanila.com/wp-content/uploads/2015/01/samal-divemap_blogie.jpg

Data on Tourists Arrival in Samal


https://www.mindanews.com/top-stories/2015/08/number-of-foreign-visitors-to-samal-
doubles-in-2014/

Day Tour
2013 - 337,794
2014 - 423,459
Over Night
2013 - 187,793
2014 - 256,605

*Naa sa shared drive ang data (PDF) as of July 2021

Things to do: Recommendations


Sample Website with chatbot,
Sample Advertisement
Sample Amenity Placement
New Packages consistent with rebranding

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