Banyan Tree Hotels and Resorts - Building an International Brand from an Asian Base

Case 4-1 Banyan Tree Hotels and Resorts: Building an International Brand from an Asian Base

What is the global business mode/strategy for Banyan Tree?

The global business strategy for Banyan Tree Hotels and Resorts is to provide a romantic and relaxing setting that is standardized across every chain of the hotel, while at the same time staying to true to each individual locations culture by doing certain things that make it a little bit different than the other.

What characterizes Banyan Tree’s global marketing strategy, particularly in global product decisions, helps to support its business strategy/mode.

Banyan Tree is characterized by its customer service. In order for them to be localized, yet standardized at the same time, they do things such as train there employees locally based on the preferences of ways to be trained of the locals who will be working there. Each individual service employee is given a good amount of responsibility in the fact that they are allowed to make their own decisions and put their own spin on things when it comes to serving there guests. In contrast, many of the standardized things such as pools, bars, cabanas, tiki huts, and so on are vastly similar among all of the different locations. This gives them a competitive advantage because no matter where you go you will get the same resort aspect, but you will be able to get more of the local culture feel compared to many of the other places that are completely standardized. They seem to have an advantage being one of the few that adapts to its customers.

History

Ho Kwon (KP)’s grandfather founded Wah Chang Corporation in New York (1916)

• KPs father, a Singaporean diplomat, was sent to Thailand and the company expanded (1950)
• Family moved back to Singapore and established Wah Chang International (1980)

The “Laguna Phuket” Project

KP bought 1000 acres in Phuket, Thailand, and established Thai Wah Resorts Development Company Limited to undertake the produce.

Main competitors in the Market

• Amman Resorts
• Le Royal Meriden Phuket Yacht Club

“Banyan Tree Experience”

• Focus on the interior decoration and facilities of the villas
• Focus on what’s happening inside them

Case 4-2 Texas Instruments: global Pricing in the Semiconductor Industry

What is the global business strategy? What Characterizes TI’s marketing?

Strategy, helps to support its business strategy?

TI's global strategy was significantly impacted by Arrow Electronics in 1994. For a long time TI had multiple production facilities internationally. These regions were kept separate from each other because 70% of TI's sales were done directly between large companies with whom they had strong customer relations. The reaming 30% of sales were done through intermediary distributors, and they were forced by their contract with TI to only sell their products in the same region they were purchased. In 1994 TI global strategy was changed. TI's largest distributor Arrow was experiencing aggressive growth and was quickly becoming more known in the international market. This in essence dragged TI's remaining 30% of business into the global market. As a result of doing business with distributors in the international market such as Arrow, TI has been forced to adopt global pricing. So in summary, 70% of TI's business is done domestically and internationally with large companies whom with they have strong and lasting relationships. TI's global strategy really came into existence as a result of their distributor Arrow Electronics becoming more globally conscious and more interested in getting the best world price for TI's semiconductors. 

Benetton Case

FSA: Low cost advertising

• 1989 when it decided to make communication activities an in-house product instead of an outsourced one.  In this way, Benetton was able to have more control over its brand image and produce advertisements three times cheaper than its competitors.  

CSA: Devaluation of Lira

• Allowed Benetton to drop prices up to 40% over two years.

Marketing Strategy

Product

• Knitwear and apparel
• Clean
• International
• Attentive to design

Benetton maintains that however uniform its products become, they should still reflect local tastes being “Italian in Italy, Brazilian in Brazil, Indian in India.”

Price

• 40% price cuts in two years
• 12.7% sales increase in Europe and 36% elsewhere

Distribution

• Retailers
• Independent agents

The firm maintains relatively few of its own stores throughout the world choosing instead to hire independent agents who act as intermediaries between regional managers and retailers.  The independent agents advised retail owners on store location, product selection, merchandising, and ensured implementation of Benetton’s policies.  These agents stand as a guard against the threat of gray trade, that is unauthorized selling of Benetton products by non-reputable sources.