Read the case and answer the following questions.
Omarama Mountain Lodge
Nestled in the high country of New Zealand’s 5011th Island is
a getaway adventure playground aimed unashamedly at the
world’s very wealthy. Presidents, movie stars, and other such
globe-trotters are the prime targets of this fledgling tourism business
developed by Omarama Mountain 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 spcciflcally with their needs in mind.
A chance meeting between a New Zealand Department of
Conservation investigator and the son of the former Indonesian
president marked the beginning of this special ty tourist operation.
Recognizing chat “filthy rich” public figures are constantly
surrounded by security and seldom have the luxury of going anywhere
incognito, the New Zealander, Peter Slater, suggested that
he and his new friend purchase a high-country station and
hunting-guide company that was for sale. Slater believed that the
facilities, and their secluded and peaceful environment, would
make an ideal holiday haven for this elite group. His Indonesian
partner concurred.
Slater, 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 11ttings, 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, Slater knew that rich travelers
frequently complained that local accommodations were below
overseas standards. Since the price (NZ$700 a night) was not a
signiftc:mt variable for this target market, sumptuous guest facilities
were built. These were designed to he twice the normal size of
most hotel rooms, with double-glazed windows that revealed
breathtaking views. Te n full-time 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 28,000 hectares of original farmland chat made up the
retreat and backed onto the South Island’s Mount Cook National
Park were converted into a big-game reserve. 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.
Slater, the former conservationist, believed that financially and
environmentally this was the correct decision. Not only do tour•
ists, each staying for one week and taking part in safari shooting,
inject as much cash into the business as the station’s annual wool
clip used to fetch, but the game does less harm to the environment
than sheep. Cattle, however, once part of the original sta tion,
were left to graze on lower river-flat areas.
For those high-flying customers seeking less bloodthirsty leisure
activities, Omarama Mountain developed photographic “safurit
and other produce-line extensions. Horse-trekking, golfing on a
nearby rural course (with no need for hordes of security forces),
helicopter trips around nearby Lake Tekapo, nature walks, and
other such activities formed part of the exclusive package.
While still in the early stages of operation, this 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, Slater considers
these to be the most appropriate forms of marketing communication.
The only real concern for Omarama Mountain 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.
Identify & discuss at least 3 external market environmental
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