Lilybank Lodge Nestled in the high country of New Zealand’s South Island is a ge

Question

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.

Explanation / Answer

New Zealand, which is known for its mesmerizing beauty can be called as the paradise on earth. Tourists all over the word visit New Zealand for retreat, travels, bush walking, trekking, mountaineering and various other adventure activities. They expect a very peaceful stay in New Zealand.

South Island of New Zealand is a complete package of recreation and it is known all over the world for its adventure activities. Tourists reach here for bungee jumping, paragliding kind of activities. The geography of New Zealand consists of green pastures where grazing merino sheep could be seen and lands bordered by rocky mountains, long skies with the presence of beaches. Tourists go for cycling, trekking, parasailing activities. New Zealand is a very silent country where its people have a peaceful demeanor. As a result of these features, tourism business is one of the established and still growing sectors in the world. New Zealand tourism is highly sought by tourists all over the world.

Considering all these aspects of New Zealand, and the target market of Lilybank Lodge, the demographic, psychographic and attitudinal characteristics of the target market has been analyzed.

Demography

The customers could be mostly youths and middle aged men and women, mostly in the age group of 25 to 50 years old. These groups of customers are high profile people, falling in a high income groups. They mostly comprise youth and middle aged men and women from all over the world, both from developed countries like USA, neighboring Australia, France, Latin-American nations, Japan, Gulf nations and so on. Also, high profile business people from developing countries like India, China, Sri lanka could also vist.

Psychographic segmentation

The psychographic segmentation is based on the way of life, activities and interests of the target market. This target market of elite customers mostly be leading a high profile life style in terms of their standard of living. Since the stay in Lilybank Lodge is quite costly, it could be assumed that this target market has a high level of spending and high standard of living in terms of their life style. They might be spending high for their vacation holidays travelling to exotic locations all over the world. They may involve in adventure activities and play games like golf. Since the life style and interests of Europeans, especially elite market may range from horse riding, it could be said that the Lilybank Lodge could successfully identified the life style and interests of their customers by arranging horse riding, golfing as part of their tour package.

Psychographic aspects are similar to behavioral aspects.

Attitude and expectations

The customers might be seeking a high privacy from the rest of the world. Since Lilybank Lodge, is targeting elite customers who seek to spend time like ‘ordinary people’, in the sense they should not be recognized the world.

The customers are spending NZD 700/night for a single person. It is quite expensive compared to a stay in a three or four-star hotel in New Zealand. Obviously they expect a very high quality of service from Lilybank Lodge. The range of services they expect must to equivalent or more than that of a four or five-star hotel. It includes rooms and windows opening to enchanting scenic views, exceptional room service, with excellent cleaning and housekeeping, large screen LSD TVs, swimming pool with a Jacuzzi, food including desserts, European and continental cuisines etc. They may also expect good room heating facilities because in South Island, it is extremely cold most of the year, compared to other parts of New Zealand. Therefore, the guests could also expect excellent facilities to have a relaxing hot water bath. They may also expect a hot mud pool bath, either indoor or outdoor as part of the package. New Zealand is famous for hot mud pools which are formed due to earthquakes. Further, South Island is very much prone to earthquakes, there must be earthquake alarms and they will definitely expect Lilybank building to be resistant to earthquakes and cold climate.

Since the customers spend very high amount for the whole package of stay and related service, they expect a high reliability quotient in their dealings with Lilybank Lodge.

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