Siren Sungkar Syndicate: Sindikat keren tapi suka bertengkar

2. SUPPORTED BY
PINISI BACKPACKER HOSTEL
JL. Musaen 192/6A
BANDUNG
INDONESIA
+6222-86868610

3. SUPPORTED BY
PINISI RELAXATION
Jl. Halmahera no. 2 Bandung 0224240065
Jl. Kenari no. 14 Sukabumi 0266231016

4. SUPPORTED BY
ORANGE BUTTON
Jl. Baladewa Asri no. 14 Bandung - Indonesia
orangebutton@pinisirelaxation.com

5. Company Background
• Founded in 1977 by
Dave and Florence
Blumenthal
• Has a 5 Properties
1 Palm Springs Resort
4 CaboDaySpas

6. Cabo San Viejo History
Dave and Florence Blumenthal founded Cabo
San Viejo in 1977 in Palm Springs, California
Create a place where smokers, overweight
people & others could feel better and learn
how to live healthier lives
In 1982, leading magazine journalist wrote a
piece on Cabo San Viejo, billing it as the
nation’s “prime total vacation/fitness resort”
and bookings took off

7. Company Overview
• Located in Palm Spring
California, 150 acres in the
foothills of the San Bernardino
Mountains
• Facilities had expanded to include
an air-conditioned, 100,000
square-foot spa complex, 4,200
square foot golf performance
area, and 13,000 square foot
Aquatic Centre
• Accommodate a maximum
of 288 guest

8. Company Overview
Operating high-end
destination health resorts and
branded day spas
Have two product line: Cabo
San Viejo and CaboDaySpas
Primary value proposition is
the concept of wellness

9. Market Competitor
Cabo San
Viejo
Destinatio
n Spa
High-End
Health
Clubs
Cruises
Local Day
Spa
Vacation
Resort

10. Marketing Approach
Handle pricing and promotions
Little cross marketing with Cabo Day Spas
Never made a financial commitment to large-scale
promotions
From Brochure, leaving it to public relations on Radio,
TV and print media
6 persons marketing department
6 regional sales managers
12 reservation specialist
2 public relation officers
Marketing and Sales Approach
Sales Approach
Packages to high-end travel agencies in US and Canada
In Summer, reduce rates by 35% and get different client
base
Organized receptions in major cities

11. Problems and Challenges in
Marketing and Sales
Not to educate consumers
Lack of direct marketing
approach
Didn’t purchase and use
customer list
Misconceptions about Cabo
San Viejo

13. The Clientele
• Cabo San Viejo customers
were largely affluent,
middle-age, and female
• 62% of return visitors
returned again within five to
six years
• Repeat guest comprised
between 50% and 60% of all
guest nights
• 32% of new guests returned
to the resort within five to six
years
• Cabo San Viejo receives
about 3500 new guest each
year

14. Customer meet
reservation specialist
Reservation specialist consist:
All female reservation staff
Were highly knowledgeable
Having undergone an intensive training program
Booking a Visit
Reservation
specialist help
customers plan
their vacation
Reservation
specialist get
thank you card
than anyone

15. The Typical Visit
Average visit lasted days
Average additional service: 165.36/day
Taking advantage of multiple services
(spa, health and healing, fitness classes, etc)
Average guest spending : 455.97/day

16. Rising Expectation
Staff members were hired and trained to
offer the very best in personal service.
Employee to guest Ratio
Surprise
Intangible Rewards

17. DATA ANALYSIS

18. Guest Analysis
Year
Avg. Total Total Total Percentage of age
Age Stays 1st time Repeat <35 35-44 45-54 55-64 >64
1992 47 3576 1279 2297 13.2 27.2 32.6 21.3 5.8
1993 48 4123 1415 2708 12.9 27.3 32.9 20.5 6.5
1994 48 4329 1416 2913 11.5 27 32.7 20.5 8.3
1995 48 4703 1551 3152 12.4 25.2 32.3 21.6 8.5
1996 49 5219 1754 3465 11.8 25.9 33.3 20.4 8.5
1997 50 5832 2053 3779 11.4 24.7 33.4 20.3 10.3
1998 50 6774 2419 4355 11.5 24.1 28.5 23.5 12.6
1999 51 8244 3563 4681 10.1 22.5 30.8 23.8 12.8
2000 52 9446 4296 5150 9.2 22.2 30.6 25 13
2001 53 8748 3684 5064 7.8 22.1 32.1 23.8 14.2
2002 54 8399 3475 4924 8.3 21.2 30.7 25.3 14.5
2003 55 8540 3567 4973 7 18.4 31.5 27.6 16
2004 57 8698 3631 5067 5.6 17.4 32.4 28.4 16.2
2005, Q1 58 2013 828 1185 4.1 17.6 30.8 30.1 17.4

19. Guest Analysis
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Total Stays
1st Time
Total Repeat

20. Accomodation $455.97
Additional Services $165.36 +
$621.33
Average visit (days) 7 x
Avarege Spending in each visit $4,349.31
2004 guests = 8.698
Newcomers : 3.631
Repeat : 5.067
Marketing cost : $2.76 million
Advertising : $1.32 million
Guest newsletter : $150.000
Direct mail : $198.000
Internet marketing : $120.000
Acquisition cost :
$2.76 million/8698
= $317
Acquisition cost /
Individual revenue:
$317.31 / $4349.31
= 7.30%
Financial Analysis

21. Should Cabo San Viejo implement a rewards program?
Who should qualify? How should “points” be
accumulated?
What should the rewards look like?
Should rewards only apply to Cabo San Viejo should
they be redeemable at other places? If then latter,
then what types of partners?
A Loyalty Program?

22. How to Proceed
Contra Opinion :
Some managers opposed to a loyalty program
because of operational concern
Computer system was not reliable to support such
a program
History poor management
Computer system outdated
Customer records inaccurate or incomplete

23. CONTRA
• The client expect the best and
very demanding, its better for
us to do nothing than to
implement something that
we really can’t deliver
• Everybody must get treated
equally, whether first time or
repeat customer
• Cabo san Viejo better focus
on improving customer
relationship management
practices in other areas
• Reward program will
eliminate the feeling of
surprise

24. PRO
• Loyalty program will forces
company about building
customer equity in a
systematic way
• Loyalty program forces you
to clean up your database
• Loyalty program forces you
to get the details right
• As a catalyst for creating a
set of systems so that you
are 100% certain and that
you are treating your
customers as well as you
can possibly treat them

25. OUR RECOMMENDATIONS

26. COMPANY ANALYSIS

27. Demography
 All ages
 Male and female
 Job : less than high school, high school, collage, worker,
housewife
 income level : above $100.000
Geography
 urban and rural people
 USA
World wide
Psychograph and Behavior :
 people want to rest and relaxation
 people who like to take vacation 5 times per year
 People who like spa treatments and pamper
 people who seek health experience
 people want to lead a healthier life
 traveler/ backpacker
 value oriented
 sensitive price
Demography
Above 30 years old
Male and female
Worker, housewife
$150k ++
Geography
Urban people
California
Psychograph and Behavior
People who like to take healthy
vacation and want to rest and
have relaxation

28. Loyalty
LikehoodtoRenew/Repurchase
Definitely
will
Probably
will
Probably
Will Not
Definitely
Will Not
Very
Dissatisfied Very SatisfiedSatisfaction
Mercenaries
Loyalist
Defectors
Hostages
I am satisfied but
I might look for
other better
services.
I am dissatisfied
and I will tell
others how
unhappy I am
with this service
I am very happy
and I will tell
other people
about great
service!
I am not satisfied
with the service
but I have no
other options, so
I stick with it.

29. SWOT Analysis
Strength:
 First and Leading band
 Wide offerings
 Flexibility
 Excellent staff
 Excellent facilities
Weakness:
 Inaccurate and incomplete
customer database
 Little cross and direct
marketing
 Limited capacity
 Didn’t have a financial
commitment to large-scale
consumer promotions
 Uneducated consumers
Opportunities:
 Increase customer loyalty
 demand will increase with
increase in health awareness
 untapped market segments
 diversification and expansion
Threats:
 Stiff competition
 Increasing consumer expectation
 New entry players
 There are many competitor with
competitive price

30. 7P Analysis
Product: Health and Relaxation Resort
Price: From $778,8/night
Place: Palm Spring, California
Promotion:
Advertising, Guest newsletter, Direct mail, Internet marketing
People: Full ranged of wellness services
Process: Customer interact with reservation specialist
Physical Evidence: Beautifully landscaped ground

31. A Loyalty Program?

32. Should Cabo San Viejo implement a rewards program?
Loyalty
LikehoodtoRenew/Repurchase
Definitely
will
Probably
will
Probably
Will Not
Definitely
Will Not
Very
Dissatisfied Very SatisfiedSatisfaction
Mercenaries
Loyalist
Defectors
Hostages

33. Because most of visitors are repeat
guests and they think that reward for
them is important
Benefits :
To understand the customer-firm relationship
Maintain consumer loyalty
We recommend Cabo San Viejo build customer data
base and launch member card program to build
customer relationship and maintain customer
loyalty.

34. Why should a Member Card?
Why Should We Use Database?
Benefits :
• To know customer’s data
• To record customer wants
• To decide which customer should
receive a particular offer
• To know promotion given
• To avoid serious customer mistakes
Key Concepts :
• Customer database
• Database marketing
• Mailing list
To differentiate customer’s level
To create sense of belonging from customers
To motivate customers on buying products

35. Who should qualify? How should “points” be
accumulated?
Platinum
Gold
Iron
Lead
Good relationship
customers
Poor Relationship
Customers
Most profitable
Unprofitable
Customer Pyramid

36. Leveling member card based on
consumer value
Lead Basic
Gold
Platinum
Titanium
Iron
Gold
Platinum

37. Potentials
Prospects
First-time
Customers
Repeat
customers
Clients
Members
Advocates
Partners
Basic
Gold
Platinum
Titanium

38. Points
Every $100 spent equals to 20 points
POINTS Card Type
< 1000 Basic
1000 – 3000 Gold
3000 – 5000 Platinum
> 5000 Titanium
One member card consist only one name.
Only the card’s owner available to use the card.
First comer automatically get Basic Member Card

39. What should the rewards look like?
Basic
Gold
Free biking
Golf discount
Summer Camp discount
Birthday card
Birthday gifts
Candid photos
Flower and welcome drink

40. Platinum
Titanium
Special event promotion
(anniversary party)
Special dinner
(dinner for Platinum + Titanium members only)
Free for some facilities in CaboDaySpas
Free in-room massage
Private fitness lesson

41. Rewards for facilities at Cabo San Viejo given at low occupancy time
Put the Reservation Specialist’s name on birthday cards, promotion, or other
delivered gifts
Reservation required for claiming the reward, so Cabo San Viejo could prepared
well before the customer come
The reward doesn’t have to be given at the same year, but depend on customer’s
time availability
Terms and Conditions

42. Should rewards only apply to Cabo San Viejo, or
should they be redeemable at other places? If then
latter, then what types of partners?
WHY?
It also has reward that could
be redeemable at CaboDaySpa
As a synergy between Cabo San Viejo
corporation to maximize their profits

43. RECOMMENDATION FOR
MARKETING AND SALES PROBLEMS
Not to educate
consumers
Misconceptions about
Cabo San Viejo
Insert Cabo San Viejo
in television program
to inform about the
TRUE benefit and
value.
Like : “Wisata to Cabo”
Lack of direct marketing approach
Didn’t purchase and use customer list
(No customer database)
Create
Consumer
Database

44. RECOMMENDATION FOR
MARKETING AND SALES PROBLEMS
Build relationship with travel agents
Direct marketing to East Coast region
More collaboration with CaboDaySpas
30% of new comers come as a result of direct
referrals by travel agents
Increase the potential market
Increase potential new comers from CaboDaySpas
location