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Proposed Business Case Analysis 1

Alorro Crystal is a beach resort in Samal, Philippines that was recently taken over by the heirs of the original owners. It faces challenges improving its brand image and amenities while generating income. A marketing plan is proposed to rebrand the resort, increase sales revenue, and progressively develop the property over the next 6 months. A situation analysis examines factors like competition and the resort's strengths and weaknesses. Recommendations are made regarding customer relations, staffing, differentiation, and legal structure to help Alorro Crystal overcome its challenges.

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Kathlene Jao
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0% found this document useful (0 votes)
124 views19 pages

Proposed Business Case Analysis 1

Alorro Crystal is a beach resort in Samal, Philippines that was recently taken over by the heirs of the original owners. It faces challenges improving its brand image and amenities while generating income. A marketing plan is proposed to rebrand the resort, increase sales revenue, and progressively develop the property over the next 6 months. A situation analysis examines factors like competition and the resort's strengths and weaknesses. Recommendations are made regarding customer relations, staffing, differentiation, and legal structure to help Alorro Crystal overcome its challenges.

Uploaded by

Kathlene Jao
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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I.

Company Background

The place is home to natural and oceanic views with rare species of fish, birds,
and other wild animals. Towards the seashore, you will see the jewel-blue sea and the
white fine sand. The place is a 2 hectares property with a 20 meter wide shoreline
situated in San Remegio, Kaputian, IGaCoS. Alorro beachfront was one of the
properties purchased and acquired in the 1950s by a couple, originally held from
Antique, from the Kaputian natives. When in the midst of the Japanese invasion the
couple was forced to flee from their second residence in Banaybanay, a municipality in
Davao Oriental, and reached the shores of Kaputian, Samal by boat. The heirs of the
couple started developing the Alorro beachfront in the year 2000 and later opened it to
the public. However, Tourism in Samal was not yet improved in the early 20’s as the
resort had little to no income. The property became Alorro Beach Resort when the
youngest of the couple’s children, Cheril A. Alorro, leased and developed it in 2015. As
the term of the lease contract expired in 2021, the couple's heirs composed of nine (9)
siblings decided to manage the resort as a family business. In January 2022, a 2-week
renovation was organized by the family for improvement of amenities, setting up of
additional cabanas, and clearing up more space near the shore in order to cater to more
guests who want to enjoy and relax on the beach. The resort was relaunched as Alorro
Crystal on January 14, 2022 under the new management governed by the siblings.
Along with the progressive tourism in the Island Garden City of Samal, Alorro Crystal
continues to improve their overall amenities to accommodate more travelers. The
challenges faced by the management are the frequent power interruptions due to the 5
kilometers distance of the resort from the main road causing a disruption in the
communication when serving the guests, the low signal reception / wifi connection, and
the resort’s accessibility. Currently, an earth-paved barangay road of about 5 meters
wide is the ingress/egress of the resort connecting to the public main road.

Business Model

Key Partners Samal LGU


Davao del Norte Tourism Office
Electornic Media

Key Activities Resort development

Service standards

Vacation booking

Amenities
Key Resources Crystal clear beach
Fine white sand
Family-oriented employees

Value Proposition Alorro 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
Word of mouth

Customer Segments Usually working-class, frequent travelers, class B-D


families, budget-conscious individuals

Cost Structure Operating Costs


Maintenance Costs
Expansion Costs
Staff Payment

Revenue Streams Entrance Fees


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

Customer Avatar

1. Terrius Family 3. Lady Pinay


● Owns a business ● Single
● Couple is married for 10 ● Fashion Consultant
years ● Freelance Model
● Has 2 kids ● wants to unwind at the
● They love to bond with beach twice a month with
relatives at the beach. friends
2. Pet Lover Melvy 4. Dabarkads Puti
● Age 27-35 ● Professionals
● Engineer ● group of friends
● married and no children ● gather annually for a short
yet vacation
● she always carry her dogs
when she has free time to
unwind
II. Problem Statement
Alorro Crystal had just changed their management after the lease 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

III. MARKET ANALYSIS


The property is located in a superior location along the highly sought pristine
beachfront of
Demographics
Trends
Forecast

IV. 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 to Medium) limited to beach resorts.
● Service oriented

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


Medium) 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 (High) ● 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 ● 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.
● Travel websites

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.
W4O4 Management Restructuring -
maximize the rich natural resources by
improving the organizational
management

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.

For IE Matrix,
selective investment. It would make
sense since the company needs to
focus on rebranding first.

V. Alternate Courses of Actions

PROS CONS

ACA #1 Brand ● Attract new ● Costly


Development customers ● May confuse
(Rebranding) ● Achieve new goals customers
1. Develop a rebranding ● Increase ● Less
committee engagement accommodation
2. Conduct marketing ● Gain market share because of
research to ● Consistency with renovations
redetermine the STP customers
process
3. Consistently present
colors in the beach
resort to empower the
new brand
4. Redefine mission and
vision
5. Create a consistent
brand personality
(adventurous)
6. Develop and improve
current amenities
7. Empower online
presence by
uploading videos of
the resort on social
media

ACA #2 Enhanced ● Increase customer ● Costly


Customer Experience retention ● May become self-
1. Develop a ● Boost customer serving
personalized website lifetime value ● Customers needs
that has customer ● Builds brand loyalty are always
feedback loop ● Impacts brand changing
(chatbot) reputability ● Lack of innovation
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. Incite surveys
3. Value and encourage
employee ideas for
them to be more
engaged at work and
more willing to help
customers
a. collect employee
experience data,
consider setting up
an employee
suggestion box to
create a channel
for feedback.

ACA #3 Company ● Decrease of ● Re-training


Restructuring operational cost ● Employee
Hire regular ● Increase productivity Uncertainty
employees for ● Increased efficiency ● Loss of assets
each position and communication
1) Replace or re- ● Increased
assign employees operational
in which are not efficiency
● Provide excellent
efficient at their
services
job.

a.Conduct a
performance
review or
evaluation

2) Create new
departments

PR & Marketing
Logistics

Our first ACA is Brand Development (rebranding) by developing a rebranding committee


that will conduct marketing research to redetermine to STP process while redefining the
mission and vision. This is to develop and improve all and current amenities and create
a consistent brand personality.

PROS : This is to improve brand awareness and achieve mentioned marketing goals
CONS : However, this is costly and may confuse consumers because of the changes.

Our second ACA is Enhanced Customer Experience by developing a personalized


website that has customer feedback loop (chatbot) and using analytics to measure
customer experience by conducting satisfaction and incite surveys. And valuing and
encouraging employee ideas for them to be more engaged at work and more willing to
help customers.

PROS : This is to increase customer retention and builds brand loyalty

CONS : However, this can be costly because it should be done frequently since
customers’ needs are always changing.

Our third ACA is Company Restructuring by Hiring regular employees for each position.
by replacing or re-assigning employees in which are not efficient at their job by
conducting a performance review or evaluation. Also, Creating new departments Public
Relations , Marketing ,and Logistics

PROS : This decreases operational cost and increases operational efficiency,


communication and services

CONS : Employee retraining should be done and employees would be uncertain.

VI. Conclusion

Family values are deeply rooted in the Filipino culture. However, it


becomes more complicated when the family tries to manage and run the
business. For Alorro Crystal Beach Resort, it started with a bad brand
image. Now with the new management and better organizational structure,
it can start anew by rebranding. It needs to develop an image that is
family-oriented, affordable, and can offer a memorable experience on both
the beach and the customer service.
VII. Recommendations

We recommend ACA#1,#2 and #3 with varying priorities. Ultimately, the


goal is to create and empower a new brand for the business and employ
rebranding strategies to the resort for consistent brand positioning.
ACA#3 should be conducted before business launching as this will be the
start of rebranding. ACA#1 should be conducted within the first quarter of
the year with ACA #2, while #2 will continue throughout the year to meet
the objectives.

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:
1. Sample Advertisement
2. Social Media accounts + engagements
3. Survey hardcopy
FOOD MENU:
PACKAGES:
Solo - P200
Inclusives:
Environmental Users Fee *pursuant of City Ordinance 319 of 2020*
Free Corkage:
4 small bottles of softdrinks/liquor (40)
1 large bottles of softdrinks/liquor (20)

Barkadahan (Good for 4) - P800


Inclusives:
Environmental Users Fee *pursuant of City Ordinance 319 of 2020* (40*4)
Free Corkage:
8 small bottles of softdrinks/liquor (80)
3 large bottles of softdrinks/liquor (60)

Pamilya (Good for 10) - P2000


Inclusives:
Environmental Users Fee *pursuant of City Ordinance 319 of 2020* (40*10)
Free Corkage:
10 small bottles of softdrinks/liquor (100)
5 large bottles of softdrinks/liquor (100)
Rentals: Per Appliance - 100
Small Tent - 300
Large Tent - 500
Extra foam
Small - 100
Large - 200
Extra pillow - 30
Extra blanket - 50 Accomodation:
Cabana (Day tour - 300 / Overnight -
1000)
Other Charges: Inclusives:
1 King Size Foam built-in chairs
1 table
4 chairs Room with CR (Day tour - 1000 /
Overnight - 1500)
Cottage (Day tour - 500 / Overnight - 2 beds with small foams
800) 8 pillows
built-in table 4 blankets
Company Description
Alorro Crystal Beach Resort also known as “Alorro” is a 2 hectare family-owned
property located in Brgy. San Remegio, Kaputian, IGaCoS. This resort was established
on January 14, 2022. Alorro is a peaceful place where people could relax and enjoy the
natural scenic view, crystal clear water, and white sand. It is open for all, and for those
people who want an overnight stay in a cottage or tent. Customers can visit the resort
prior to online reservations.

VISION
A tourist destination in Kaputian known for its natural resources and an environment
that promotes the preservation of nature, to encourage every generation to maintain the
beauty of God’s creation. (Suggestion: to care and respect the Earth and the
environment) para inclusive, dili lang sa mga nagatuo kay God

MISSION
Alorro Crysal Beach Resort seeks a great outing trip at an accessible and affordable
price. We strive to promote an enjoyable activity that you may embrace the beauty of
nature without risking its natural environment. (pleae edit)

GOALS
To develop an inspiring and peaceful yet adventurous place to motivate every
generation to build self-discipline by empowering eco-friendly manner through
enhancing the beautification of surroundings towards the preservation of nature. (eto
din)

CORE VALUES
Spirit of adventure – strong will of adventure.
Eco–friendly – causing no harm to the environment.
Enthusiasm – intense and eager enjoyment.
Discipline – to have self-control.

PRODUCT AND SERVICES


The main product of Alorro Crystal Beach Resort is the natural beauty of its
environment where they can attract customers to visit the resort time after time and to
have quality time with family, friends, co-workers, and any other person in a peaceful
and affordable place like this. With the same price, early booking is advisable and
offered to reserve the resort exclusively to a particular group of people who wants to
solo the resort to feel the essence of the environment and to enjoy spending their hours
without competing with other potential customers of the resort.

PROPOSED SITE PLAN LAY OUT

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