Question: Case Study 2: Differentiation, Positioning, Packaging Strategy The Puntareno is a resort in Central America, where the warm climate has a dry season (winter) and
Case Study 2: Differentiation, Positioning, Packaging Strategy The Puntareno is a resort in Central America, where the warm climate has a dry season (winter) and a rainy season (summer). The region is most attractive to North American travelers during the winter and spring months. Its busy season is from January to May. The lodge's unique jungle location is a major strength of the small resort. Its capacity of 60 suites and a restaurant with a bar makes it one of the largest capacity food and beverage establishments in the small coastal resort town. Strategic Pricing 141 The Puntareno is situated on a hill above the Rio Verde River that flows through The rainforest in curves and loops and reaches the sea a couple of miles away. Lush rainforest vegetation, rich forest canopy, and warm climate coupled with a refined service culture are the main ingredients behind the success of this resort. The Puntareno is visited by tourists and nature lovers mostly from North America. The bulk of its clientele is made up of U.S. and Canadian travelers, including fly- fishers, who can choose between fishing the Rio Verde and the shallow waters of the Caribbean Sea. They enjoy the excitement of catch and release during the fishing season. This market segment has proven to be affluent and above-average spenders in terms of vacation spending per trip. The fly-fishers appreciate the skills of the resort's local bartenders, who create cocktails infusing special local fla- vors with premium ingredients. The fishers also enjoy the international fusion cui- sine menu created by the chef, who uses mostly local ingredients. The fly-fishers take advantage of the resort's speed-boat flotilla that takes them to the best fishing spots both upstream on the Rio Verde and downstream to the best coral reefs close to shore in the open waters of the sea, relying on the expertise of local guides. A fast-growing new market has also discovered the Puntareno: the bird watch- ers or "birders" as they call themselves. They come to see the abundant selection of bird species living in the rainforest in their natural habitat. They get up early as they are very task-focused. The birders are not too price sensitive, and they too appreciate the cuisine and the amenities that the resort has to offer. They tend to arrive in small groups of 6 to 20 per booking. The resort has a significant portion of land that stretches across thousands of hectares of forest and fields, where they plant and grow mango, papaya, orange, banana, herbs, and vegetable crops. The Puntareno raises chickens and pigs as well. The Puntareno's chef has successfully achieved an ambitious objective: two- thirds of the food prepared in the kitchen is grown on the estate by resort employ- ees. On top of being self-sufficient, the resort caters to the eco-conscientious cli- entele that likes the idea of farm-to-table cuisine. Local foods, produced in an environmentally responsible way (organic where possible), appeal to a growing segment of travelers. The resort employs local residents for line and supervisory positions. The Gen- eral Manager, appointed by the owner, is an experienced industry veteran from Canada. The sales and marketing area is under development; the initial concept has been to rely on travel agencies and tour operators to sell their room inven- tory. The resort has relied on Hotels.com, Travelocity, Expedia, and other agency partners to sell rooms. Puntareno has favorable reviews on TripAdvisor and has created a Facebook page to engage with past and future guests. With the barriers of selling online to a global marketplace coming down, it became affordable to beef statistics. She promised to come back on a quarterly basis. On her second visit, she up the resort's online capabilities. The owner instructed the General Manager to distribution channels, investing in improving the resort's website, and learning the explore the idea of self-reliance with regard to harnessing the power of electronic The resort owner has decided to hire a company specializing in asset man- agement. A dedicated asset manager has visited the Puntareno. She conducted a site inspection, met with the management, and asked for access to all reports and sat down with the General Manager only and had a discussion with her about rev- strategy and asked for a revised strategic revenue management plan that would enue targets. She suggested that the Puntareno develop a more focused marketing 142 Chapter 10 tools of revenue maximization instead of dishing out discounts only. provide the fundamentals of revenue growth. Discussion Questions 1. What are some targeting and positioning options available to the Puntareno? 2. How can the Puntareno develop packages to take advantage of its strategic opportunities