Marketing and Management Report: Dhigali Maldives Strategy and KPIs

This report provides a comprehensive marketing analysis of Dhigali Maldives, a luxury resort in the Maldives. It begins with an introduction to marketing activities and the report's objectives, focusing on relaunching the hotel as an all-inclusive product. The report then delves into a SWOT analysis to assess the internal environment, followed by an examination of Porter's Five Forces to understand the external market dynamics. Key external factors in the Maldives tourism industry are discussed, along with the application of the Ansoff matrix to determine a market penetration strategy. The report concludes by outlining key performance indicators (KPIs), including occupancy rates, average daily rates (ADR), and gross operating profit (GOP), and sets targets for improvement. The provided data includes monthly arrival statistics for the Maldives, broken down by region and market, and an overview of the bed capacity of tourist facilities, all used to inform the marketing plan.

qwertyuiopasdfghjklzxcvbnmqwe
rtyuiopasdfghjklzxcvbnmqwertyu
iopasdfghjklzxcvbnmqwertyuiopa
sdfghjklzxcvbnmqwertyuiopasdfg
hjklzxcvbnmqwertyuiopasdfghjkl
zxcvbnmqwertyuiopasdfghjklzxcv
bnmqwertyuiopasdfghjklzxcvbnm
qwertyuiopasdfghjklzxcvbnmqwe
rtyuiopasdfghjklzxcvbnmqwertyu
iopasdfghjklzxcvbnmqwertyuiopa
sdfghjklzxcvbnmqwertyuiopasdfg
hjklzxcvbnmqwertyuiopasdfghjkl
zxcvbnmqwertyuiopasdfghjklzxcv
bnmqwertyuiopasdfghjklzxcvbnm
qwertyuiopasdfghjklzxcvbnmqwe
rtyuiopasdfghjklzxcvbnmrtyuiopa
MARKETING & MANAGEMENT
[Type the document subtitle]
7/28/2019
Student name

MARKETING & MANAGEMENT 1
Contents
Introduction......................................................................................................................................2
SWOT Analysis...............................................................................................................................3
Strengths......................................................................................................................................3
Weakness.....................................................................................................................................3
Opportunities...............................................................................................................................3
Threat...........................................................................................................................................3
Porters five force models.................................................................................................................4
Maldives key external environment.................................................................................................6
Ansoff matrix...................................................................................................................................6
Key performance indicators.............................................................................................................8
1. Occupancy............................................................................................................................8
2. ADR ( Average daily Rate)..................................................................................................9
3. GOP ( Gross operating profit)..............................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

MARKETING & MANAGEMENT 2
Introduction
Marketing activities include all the decisions and conduct of business from manufacturing to
delivery of goods that making it available to the end users. The marketing activities of the
company are responsible for the sale of the products and services, brand image and brand
positioning that would eventually result into cause for success or failure of a product launched by
a company. The purpose of this report is to assess the external and internal situation of an
organization and provide key performance indicators. The organizational case considered for this
report is Dhigali Maldives, for which the key objective is to provide marketing plan for
launching the hotel service of Dhigali as all-inclusive product (Adam & Kotler, 2014).
Dhigali Maldives is an accommodation business that is providing luxury hotels, resorts and spas
in Maldives surrounded by tropical forests. The company is offering various products and
services with special features in order to attract more customers. In order to relaunch the full
inclusive product and service range by brand in Maldives, the report will discuss the key
environmental analysis and marketing elements. The reason for relaunching the product is to
increase the brand awareness, as the company has faced some decline in sales (dhigali, 2019).

MARKETING & MANAGEMENT 3
SWOT Analysis
To assess current internal environment of Dhigali Maldives, SWOT analysis will be used that is
a strategic framework defining current strength, and weakness of the company, while analyzing
opportunities and threats of the company.
Strengths
 Excellent service
 Food quality
 Human resource
 Location (Bull & Sitas, 2016)
Weakness
 Brand recognition
 Increased competition
Opportunities
 Market development
 Service innovation
Threat
 Threat of new entrants
 Customer decreased loyalty (Hunt & Bicen, 2017)

MARKETING & MANAGEMENT 4
Porters five force models
In order to assess hotel industry in Maldives, and external environment of Dhigali, porters five
forces will be critically analyze to understand the impact of environmental forces over the
company’s marketing activities. The forces includes
1. Industry rivalry
The competition is the major problem that Dhigali is facing in Maldives hotel market.
The close competitors are Shangri la, and four seasons. These are the top global brands,
having high brand recognition and goodwill, which lead these brands to gain competitive
advantage over Dhigali (Ogutu & Mathooko, 2015).
2. Bargaining power of buyers
Considering the hotel industry, as discussed in previous point the competition is one of
the major problems for Dhigali, which reflect on increasing bargaining power of buyers.
Since this switching cost for buyers are negligible it is very difficult to retain the
customers, this increase the negotiation power in hands of buyers to greater extent.
Therefore, it can be said that the bargaining power of buyers is one of the threat for
Dhigali resort. Therefore, it can be said that this factor may impact the marketing
activities of the company as the major objective of the marketing of the company would
be to retain the existing customers and increase the customer loyalty (Jawoski, 2018)
3. Bargaining power of suppliers
The key suppliers for in hotel industry or in this case Dhigali Maldives are the food
vendors who are providing raw material that the company is using to provide dining
services, batting supplies are another example. For this, the company is dealing with the
suppliers this may include shampoos, shower gels and other amenities required to provide

MARKETING & MANAGEMENT 5
basic facilities to the Guest of the hotel. The company have agile supply chain and are
dealing with large number of suppliers which decreases the bargaining power of suppliers
in case of Dhigali Maldives. Therefore, it can be said that the bargaining power of
suppliers are not a major threat for the company, the company can overcome this issue
and even turn this out to be an opportunity while manufacturing some of the raw Material
that is majorly required on the regular basis (Tari, 2015).
4. Threat of new entrants
There are various companies entering into this industry, which may reflect through
influence of these companies in the industry and performance of Dhigali marketing
activities. Since the investment is very high in hotel industry, the threat of new entrants is
not very high for Dhigali, the reason being the company is established for years and have
gained brand recognition in Maldives. However, a new company may enter with new
technology and more innovative products and services to be offered to the customer and
can become a major competitor for Dhigali. Therefore, it can be said that the company
needs to increase innovation as this factor me directly influence the marketing
performance of Dhigali (Karakas et al., 2017).
5. Threat of substitutes
Substitutes are products and services that fulfill similar customer needs. The substitute
threat is quite low for Dhigali Maldives, the reason being the alternative sources to the
hotel accommodation includes hobby, guesthouses, vacation rentals. However, this may
not be able to provide the premium services that Dhigali is providing which reflect that
the impact of substitute goods may exist but not at higher pace for Dhigali marketing
performance (Dobbs, 2014).

MARKETING & MANAGEMENT 6
Maldives key external environment
The facts of the tourism industry in the Maldives states that 28% of gross national product of
Maldives economy included of agriculture, fishing and tourism which reflected the opportunity
for tourism industry and hotel industry is maximum in the nation. Moreover, The culture of
Maldives reflect that the tourism industry is developed over a concept of one Island one resort,
this may lead to challenge for Dhigali or maybe opportunity as the company may have monopoly
over one resort and target all the customers that are coming to visit. Moreover, the recreational
activities are maximum in the nation for example scuba diving, watersports and snorkeling
(accidentaltravelwriter, 2019).
Ansoff matrix
Figure 1: (Source: (Aksoy, 2018)

MARKETING & MANAGEMENT 7
Dhigali Maldives is willing to re-launch the resort into all inclusive hotel, accommodation for
which the strategy choose and buy the company considering the ansoff product matrix is market
penetration strategy. According to ansoff product growth matrix, there are four alternative
strategy based on the market to be targeted and the products and services to be launched. For
instance, four alternative strategies included market development, diversification, market
penetration, and product development. The company has already been targeted Maldives hotel
industry, The key objective of the company is to re-launch the product that is launching all
inclusive hotel accommodation services, which would include the existing products and services
to be target in existing market that makes the most appropriate strategy as market penetration,
while analyzing the graph above. The existing products and services offered by the company
include spa facilities, basic accommodation, premium rooms, Dining facility and various other
entertainment related activities that the research consist currently which will be relaunched with
all inclusive accommodation facilities (Kaplan, 2015).

MARKETING & MANAGEMENT 8
Key performance indicators
1. Occupancy
Figure 2: (Source: (tradingeconomics, 2019)
Occupancy rate is one of the key performance indicators for Dhigali performance. The
occupancy rate is the supply of accommodation by the company and the demand for the
accommodation, which reflects in percentage. For example, if Dhigali Hotel will be offering
hundred rooms and the demand by the customers are 90 rooms then the occupancy rate will be
90%. The objective through this marketing strategy of relaunching the product is to increase the
occupancy rate to 95% by the Dhigali, in order to gain competitive advantage in next 12 months.
From the graph above, which reflects the tourist arrival in Maldives from 2018 to 2019,
depicting increase in opportunity for the hotel industry as large number of tourist indicates last
number of accommodation requirement, which will eventually affect the occupancy rate of the
hotels. Therefore, this is the opportunity for the Dhigali to increase its occupancy rate to 100%
(Kotler & Keller, 2015).

MARKETING & MANAGEMENT 9
2. ADR ( Average daily Rate)
Average daily rate reflect the revenue per available room of the company. This is one of the
affective performance measures to analyze the profit earning of the company and opportunity for
the company to earn profit. The average rental income in a given time paid for occupied room,
which reflects three major success metrics for the Dhigali, which included occupancy rate,
average daily rate and revenue per available room. For the calculation purpose, this rate is
calculated based on average revenue that the Dhigali has earned which the total number of
occupied room divides. In simple terms, this will reflect the profit on by one customer by the
Dhigali. The target through this marketing activity will be to increase the average daily rate by
10% in next 12 months for the Dhigali Maldives (Petersen, 2015).
3. GOP ( Gross operating profit)
From re launching of research to all inclusive hotel accommodation and other services like spa,
water sports and entertainment related services, Dhigali third people to miss indicator will be
gross operating profit that will reflect the profit owned by the company after re launching the
product. The target GOP in next 12 months from this marketing activity will be increase in 12%
for Dhigali Profit earning. Considering the calculation gross operating profit will be calculated
by subtracting operating expenses from operating revenue for the company. This is one of the
important performance indicator that will reflect the financial stability of the company and
growth of the company (Pansari & Kumar, 2016).

MARKETING & MANAGEMENT 10
Conclusion
To conclude the highlighting elements of the report, include Dhigali Maldives is an
accommodation business that is providing luxury hotels, resorts and spas in Maldives surrounded
by tropical forests. The close competitors are Shangri la, and four seasons. The tourism industry
in the Maldives states that 28% of gross national product of Maldives economy includes
agriculture, fishing and tourism industry. The reason for relaunching the product is to increase
the brand awareness, as the company has faced some decline in sales. The Key performance
indicators for Dhigali includes Occupancy rate, ADR ( Average daily Rate), and GOP ( Gross
operating profit).

MARKETING & MANAGEMENT 11
References
accidentaltravelwriter, 2019. maldives-hotel-industry-faces-opportunities-and-challenges-
executive-interview. [Online] Available at:
https://accidentaltravelwriter.com/2018/10/01/maldives-hotel-industry-faces-opportunities-and-
challenges-executive-interview/.
Adam, S. & Kotler, P., 2014. Principles of marketing. Australia: Pearson Australia.
Aksoy, S., 2018. Applying Ansoff’S Growth Strategy Matrix To Innovation Classification.
International Journal of Innovation Management, p.1850039.
Bull, J.W. & Sitas, N., 2016. Strengths, Weaknesses, Opportunities and Threats: A SWOT
analysis of the ecosystem services framework. Ecosystem Services, 17(1), p.99.
dhigali, 2019. book-early-save-more. [Online] Available at: https://www.dhigali.com/book-
early-save-more?
gclid=Cj0KCQjwj_XpBRCCARIsAItJiuQQcNLK8ico761rlqlpfwQmv7zrM8mt0y95FJa0GOk_
Qc49Ixvql-MaAl7bEALw_wcB.
Dobbs, M., 2014. Guidelines for applying Porter's five forces framework: a set of industry
analysis templates. Competitiveness Review, p.32.
Hunt, D. & Bicen, P., 2017. The FREE (Firm Resources and External Environment) Framework
as an Alternative to SWOT: An Abstract. In Academy of Marketing Science Annual Conference,
p.49.
Jawoski, B.J., 2018. Commentary: advancing marketing strategy in the marketing discipline and
beyond. Journal of Marketing Management, 34(1), p.63.
Kaplan, B., 2015. Marketing Strategies For The Generation “C” Consumer Behavior: An
Overview For The GSM Market in Turkey. In Handbook of Research on Developing Sustainable
Value in Economics, Finance, and Marketing, pp.463-75. Available at: https://www.igi-
global.com/chapter/marketing-strategies-for-the-generation-c-consumer-behavior/121375.
Karakas, Ayhan & Öz, Yaşar & Raşit & Muhammet, 2017. THE EFFECT OF INNOVATION
ACTIVITIES ON ORGANIZATIONAL PERFORMANCE: A RESEARCH ON HOTEL
BUSINESSES. Journal of Recreation and Tourism Research, 4, pp.49-59.
Kotler, P. & Keller, K.L., 2015. Marketing Management (15th edition). New Jersey: Prentice-
Hall.
Ogutu, M. & Mathooko, F.M., 2015. Porter’s five competitive forces framework and other
factors that influence the choice of response strategies adopted by public universities in Kenya.

MARKETING & MANAGEMENT 12
International Journal of Educational Management, 29(3), p.334.
Pansari, A. & Kumar, V., 2016. Competitive advantage through engagement. Journal of
Marketing Research, p.497.
Petersen, J.A., 2015. Marketing communication strategies and consumer financial decision
making: The role of national culture. Journal of Marketing, 79(1), pp.44-63.
Tari, J.J., 2015. The effects of quality and environmental management on competitive advantage:
A mixed methods study in the hotel industry. Tourism Management, 50(1), pp.41-54.
tradingeconomics, 2019. maldives/tourist-arrivals. [Online] Available at:
https://tradingeconomics.com/maldives/tourist-arrivals.