Reference no: EM131788049

Lilybank Lodge

Nestled in the high country of New Zealand’s South Island is a getaway adventure playground aimed unashamedly at the world’s very wealthy. Presidents, playboys, and other such globe-trotters are the prime targets of this new tourist business developed by Lilybank Lodge. The Lodge offers this exclusive niche the opportunity of a secluded holiday in a little-known paradise. Guests, commonly under public scrutiny in their everyday lives, can escape such pressures at a hunting retreat designed specifically with their needs in mind.A chance meeting between a New Zealand Department of Conservation investigator and the son of a former Indonesian president market the beginning of this specialty tourist operation. Recognizing that the “filthy rich” public figures are constantly surrounded by security and seldom have the luxury of going anywhere incognito, the new Zealander, Gerard Olde-Olthof suggested that he and his new friend purchase a high-country station and hunting-guide company that was for sale. He believed that the facilities and their secluded and peaceful location would make an ideal holiday haven for this elite group. His Indonesian business partner concurred.

Olde-Olthof, who was by now the company’s managing director, developed a carefully tailored package of goods and services for the property. Architecturally designed accommodations, including a game trophy room and eight guest rooms, were constructed using high quality South Island furniture and fittings, to create the ambience necessary to attract and satisfy the demands of their special clientele.Although New Zealand had an international reputation for being sparsely populated and green, Olde-Olthof knew that rtich travelers frequestly complained that the local accommodations were below international standards. Since the price (NZ$700 a night) was not a significant variable for this target market, sumptuous guest facilities were built. These were designed to be twice the normal size of most hotel rooms, with double-glazed windows that revealed breathtaking views. Ten full-ime staff and two seasonal guides were recruited to ensure that visitors received superior customized service, in fitting with the restrained opulence of the lodge. The 29,000 hectares of original farmland that made up the retreat and backed onto the South Island’s Mount Cook National Park were converted into a big-game preserve. All merino sheep on the land were sold, and deer, elk, chamois, and wapiti were brought in and released. This was a carefully considered plan. Olde-Olthof, the former conservationist, believed that financially and environmentally this was the correct decision. Not only do tourists, each staying for one week and taking part in safari shooting, inject as much cash into the business as the station’s wool clip used to fetch, but the game does less harm to the environment than the sheep. Cattle, however, once part of the original station, were left to graze on the lower riverfront areas.For those high-flying customers seeking less bloodthirsty leisure activities, Lilybank developed “photographic safaris” and other product-line extensions such as hiking on market nature trails. Horseback riding, golfing, helicopter trips and other activities formed part of the exclusive package.

While stil in the early stages of operation, the retreat has already attracted a steady stream of visitors. To date, the manager has relied solely on positive word of mouth, publicity, and public relations to draw in new customers. Given the social and business circles in which his potential target market moves, Olde-Olthof considers these to be the most appropriate forms of market communication. The only real concern for Lilybank Lodge has been the criticism of at least one New Zealand lobby group that the company is yet another example of local land passing into “foreign” hands, and that New Zealanders are prevented from using the retreat and excluded from its financial returns. However, this unwelcome attention has been fairly short-lived.

DISCUSSION QUESTION (Remember you must provide a response, and reply (politely) to at least one other student.

Describe the likely demographic, psychographic and attitude characteristics of the target market segment for Lilybank Lodge and tell the likely expectations these customers will have for the quality, reliability and range of services of the Lodge.