Marketing Strategies and Growth: Naifaru Island Guest Houses

This report investigates the marketing strategies employed by guest house businesses in Naifaru Island, Maldives, to achieve growth and attract more clients. The study begins with an introduction that outlines the importance of marketing in the hospitality sector, particularly in the context of the Maldives and Naifaru Island. It explores the island's cultural and natural beauty and the role of marketing in promoting it. The report then reviews the existing literature on marketing strategies, key factors influencing guest house businesses, management systems, and elements that enable growth. The research methodology chapter details the design, approach, data collection methods, and analysis techniques used in the study. The subsequent chapters present the data analysis, findings, and discussions, highlighting the effectiveness of different marketing strategies. The report concludes with recommendations for guest house owners, focusing on strategies that can be implemented to attract more tourists and ensure the sustainability and growth of their businesses, with an emphasis on green tourism and governmental support.

MARKETING
STRATEGIES FOR
GROWTH IN GUEST
HOUSE BUSINESS IN
NAIFARU ISLAND OF
MALDIVES
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TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION....................................................................................................4
Title.........................................................................................................................................4
Overview of study..................................................................................................................4
Overview of Naifaru island of Maldives................................................................................5
Aims and objectives of study.................................................................................................6
Rationale of Study..................................................................................................................7
Scope of Study........................................................................................................................7
Significance of Study.............................................................................................................8
Structure of research...............................................................................................................8
CHAPTER 2: LITERATURE REVIEW.......................................................................................10
Terminology of marketing and its strategies in relation to growth......................................10
Key factors that impact the guest house business................................................................11
Management and systems of guest house business..............................................................13
Elements which enable growth of Guest house business.....................................................14
Strategies for maintaining sustainability and growth of guest house business....................18
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................22
Introduction..........................................................................................................................22
Research design....................................................................................................................22
Research philosophy.............................................................................................................23
Research approach................................................................................................................24
Data Collection.....................................................................................................................25
Sampling...............................................................................................................................26
Data Analysis........................................................................................................................26
Validity and reliability..........................................................................................................28
CHAPTER 4: DATA ANALYSIS................................................................................................29
CHAPTER 5: FINDINGS AND DISCUSSION...........................................................................47
CHAPTER 6: CONCLUSION AND RECOMMENDATION.....................................................50
REFERENCES..............................................................................................................................53
APPENDIX....................................................................................................................................57
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CHAPTER 1: INTRODUCTION
Title
“To explore Marketing strategies used by guest house business in Naifaru island of Maldives for
growth”
Overview of study
Marketing plays an influential role for business enterprise as it helps the firm in attracting
customers by implementing different tactics of promotion such as social media advertising,
offering schemes, public relations, television and magazines advertisement etc. Implementing the
use of marketing strategies according to requirement plays a vital role because it helps in
determining different ways of connecting with worldwide customers (Speelman, Nicholls and
Dyke, 2017). There are different firms across the globe which uses different marketing
techniques to reach buyers across the globe. In addition to this, marketing plays a vital role for
hospitality sector because it helps in determining taste and preferences of worldwide buyers.
Hotels implement the use of different techniques such as website promotion in which
organisation enhances its official website according to changing requirements which helps the
clients in analysing accommodation facilities of different hotels. Apart from this, marketing on
social media helps hotels in reaching maximum travellers which is the best way to attain
competitive advantage. With the help of marketing, guest houses succeed in creating awareness
about their hospitality services for different clients (Meierkord, 2017). Further, for creating
awareness, the hotel services are split into 3 sub sections which are cheap, middle and luxury
services. Therefore, to attain growth the hotels implement the use of different marketing
strategies which helps in attracting travellers across the globe. Moreover, natural beauty of island
helps in making strategies more effective for attracting clients.
However, it has been determined that guest house in Maldives is the only business which
contributes to economy and support growth and development of all islands. In accordance to this,
it is important for the economy of Maldives to support the growth of guest houses on islands
especially in Naifaru because it is the island which denotes most cultural and natural beauty but
has limited number of guest houses. Implementing the use of different marketing strategies is the
only technique which can assist in attracting clients (Maldives Destination Development
Strategies Towards Green Tourism, 2012). To derive economic growth, the government focuses
on establishing innovation in business method, marketing and tourism plans. Further, the
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marketing strategies of guest house owners in Maldives are focused on promoting green tourism.
The tourism on Maldives is supported by natural environment, values of people and cultural
resources. Therefore, in order to attract worldwide tourism, it is important for the guest houses to
implement the use of marketing strategies which are focused on natural resources and tourist
attractions. Apart from this, Maldives tourism strategies is focused on harmonising development
by managing waste, implementing sewage treatment, restriction on shoreline obstruction etc.
Thus, from tourism planning and strategies, it has been denoted that Government of Maldives
support the growth of tourism and guest houses. Hence, the growth can be managed by
improving marketing strategies which are beneficial in attracting travellers across the globe.
Overview of Naifaru island of Maldives
Maldives is one of the leading tourist destinations worldwide where Lhaviyani atoll is
administrative division whose capital is Naifaru Island. In this division, there are 4 inhabitant
islands and 6 resort islands. There are very limited guest houses and resorts in Naifaru and the
guests visit island for their specific purposes such as culture, health services, fishing, retail
business etc. (FOURTH TOURISM MASTER PLAN 2013-2017, 2012). The culture of Maldives
and its islands is the major factor which helps in making marketing efforts of hospitality sector
successful. The marketing strategies of hospitality sector are secured with the help governmental
support for increasing guest house and clients.
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Aims and objectives of study
Aim
“To explore Marketing strategies used by guest house business in Naifaru island of Maldives for
growth”
Research Objectives
 To provide overview of good management and systems to attract new clients.
 To identify the key factors that can impact the guest house business in Naifaru.
 To develop understanding of the different elements that has led to the growth of guest
house business.
 To develop strategies that guest house owners can take for future course of action for
sustainability. To ascertain marketing strategies which can be used in guest house business in Naifaru to
attract new clients.
Research Questions
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Illustration 1: Guest house of Naifaru Island
(Source: Naifaru, 2017)

 What are the key factors that can impact the guest house business in Naifaru?
 What marketing strategies should be used for guest house business in Naifaru to attract
new clients?
Rationale of Study
The reason behind conducting this study is to analyse impact of marketing strategies used
by guest houses of Naifaru Island. This study will assist in developing understanding over the
factor which can help guest owners of Maldives in maintaining sustainability of marketing
operations (Meierkord, 2017). The motive behind conducting this research is to manage risk
which arises due to changing political and economic factors such as instability in governmental
regulations, increasing hotels and their contribution etc. The research is conducted to determine
different elements which are related to growth of guest house business. This is done to safeguard
the interest of guest house owners and clients across the globe. The study will assist scholar in
determining the best marketing strategies which can help hospitality sector of Naifaru in
attracting more and more travellers to attain growth and development. This study will help in
developing understanding of market operations which can be implemented to enhance
attractiveness of guest houses of Maldives. Apart from this, research will help in evaluating key
factors which impact the growth of guest houses and measure to eliminate them.
Scope of Study
The scope of study is not limited as it is focused on marketing strategies and growth of
guest houses in Naifaru Island. Marketing offers different types of tools and techniques of
organisation for promotion. The scope of this study will be focused on deriving strategies of
marketing and promotion which can assisting Naifaru island of Maldives in attaining growth of
guest house business. Moreover, the study will help in determining marketing factors which can
be beneficial for guest houses in attracting clients across the globe. It will further focus on
identifying key factors which can impact the guest house business in Naifaru. On the other hand,
the scope of the study is to minimise the impact of risky factor which can be uncertain to growth
of guest houses like, political instability, competition etc. Thus, it will recognise the factors and
measure which can be helpful for guest house owners in making marketing efforts successful and
effective. The views of employees and guest house in study will help the scholar in analysing the
areas of improvement and changes in strategies of promotion and marketing to attract clients. It
will also help in deriving various other ways of attaining competitive advantage and minimising
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risk which can arise due to threats like inappropriate transport facility, turmoil in climatic
condition etc.
Significance of Study
The study on marketing strategies implemented by guest house business in Naifaru island
of Maldives for growth is essential because it will help in determining different promotional
tools used by owners to attract clients (Hassan, 2016). Further, it will aid in analysing marketing
trends of Maldives which helps in maintaining effectiveness of tourist and hospitality services.
The major importance behind conducting this research is to ascertain risk for Naifaru Island
which arises due to changing business environment. This study is important as it is focused on
growth of guest houses with the help of different marketing strategies such as social media,
public relation, marketing programs etc.
Structure of research
Chapter 1: Introduction- In this chapter of Dissertation the researcher will analyse overview of
research topic which will assist in drawing brief outlined introduction on further research. In this
section, the scholar will outline the over view of Naifaru island of Maldives which is the key
driver of entire study. Apart from this, the chapter will evaluate importance and scope of
conducting this research which will help in developing understanding over study and its factors.
Thus, this part of dissertation will aid in analysing the use of different marketing strategies which
can help in growth of hospitality sector.
Chapter 2: Literature review: In this chapter of dissertation scholar will evaluate marketing
strategies and their impact on growth of hospitality sector with the views and study of different
authors. This chapter will help in developing critical understanding over research tittle. It is also
termed as secondary research which acts as base of entire research. This chapter will cover all
the aspect of title by taking objectives of study into consideration. Thus, in this the researcher
will focus on defining each and every term to understand the importance to marketing, strategies,
hospitality sector, Maldives and its islands.
Chapter 3: Research methodology: In this chapter of dissertation, the researcher will focus on
analysing research techniques to make study simpler and effective. Research methodology plays
and essential role for conducting study as it sets the step wise process for scholar. Methodology
comprises various tools such as techniques, approaches, sampling, data collecting and analysis.
Further, in this research process the researcher will implement the use of primary data collection
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process in which the individuals will choose sample with the help of judgemental sampling and
will analyse the data with the help of quantitative analysis with the help SPSS. Thus, the research
on “Marketing strategies used by guest house business in Naifaru island of Maldives for growth”
will be based on both type of data collection process that is primary and secondary.
Chapter 4: Data analysis: In this chapter of dissertation, the research will analyse collected
information with the quantitative analysis. This chapter will help in making study effective with
the help of different viewpoints. In this, the scholar will evaluate every bit of detail over the
research tittle in order to derive answers for research questions. Thus, the analysis is based on
SPSS by researcher keeping in mind all the requirement of investigation tittle.
Chapter 5: Findings and discussion: In this chapter of dissertation the researcher will analyse
information which is been collected and framed in literature review. In this chapter, the scholar
focuses on framing results with the helps primary and secondary information. This helps in
making clear different and results and data with the help of comparison. To create effective
discussion, the scholar frames few themes on the basis of which information are being analysed
and conclusion are being outlined. This is done to make results and data more effective which
helps in developing critical understanding over the tittle that is “Marketing strategies used by
guest house business in Naifaru island of Maldives for growth”.
Chapter 6: Conclusion and recommendation: This chapter of dissertation will be focused on
making recommendation on marketing strategies which can be used by guest house owners to
attract clients. The chapter will focus on outlining brief study about the entire research which
will comprise research methods used, data analysis, findings, literature review etc. It is the brief
explanation of study which helps the individuals in deriving results which are accumulated from
entire research.
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CHAPTER 2: LITERATURE REVIEW
Terminology of marketing and its strategies in relation to growth
According to Hinz, Skiera and Becker, (2011), marketing act as tonic for growth and
development of business. It offers different types of tools and strategies to attract consumers. In
this the companies are focused on promoting various benefits and luxury offered on their
products and services. The author believes that marketing strategies are tools which help the
enterprise in creating awareness among customers about different goods and services. It helps the
clients in differentiating between similar services of different companies. The marketing
strategy helps the organisation in connecting with consumers. There are four basic marketing
strategies which comprise all the requirement which are offered by firm to its company.
However, as per the views of Hinz, Skiera and Becker, (2011), marketing strategies plays vital
role in deriving business growth and development as it combines all essential of services which
are offered by an enterprise. The most important four variables of marketing are, price, place,
promotion and product. During pricing the companies are responsible for setting prices of their
services according to customer requirement and changing competitor pricing strategy. When
setting price, it is important for the firm to make clear differentiation with rivalries in order to
attain competitive advantage. For instance, for setting price of hotels room it is important for the
guest house owner to ensure prices of room are set according to accommodation facilities given
in room. Further, the author believes that price is the most sensitive factor which can influence
customer behaviour, therefore it is important for the organisation to set affordable prices keeping
in mind the needs and wants of consumers.
Apparently, Berthon, Pitt and Shapiro, (2012), have stated that place is the major factor
that influences consumer behaviour for products and services. The buying behaviours of
consumer are based on easy availability therefore it is important for the business to ensure that its
services and products are in easy reach of consumers. For instance, if in case hospitality sector
the travellers focuses on making booking to hotels which is famous and easy available therefore
it is the foremost responsibility of owners to ensure easy booking system and process to attract
maximum clients. It is the process which helps the firm in attaining growth with the help of
marketing strategies. Apart from this, the scholar believes that easy availability and pricing
strategy for company is null until the use of effective promotion. Promotion is advertising
technique of which helps the enterprise in reaching to buyers across the globe. It is the strategy
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which helps the organisation in creating awareness among worldwide consumers about the
company’s products and services. It provides maximum profit potential which helps in
maintaining sustainability of business. According to FOURTH TOURISM MASTER PLAN 2013-
2017, (2012), promotion is the marketing strategy which helps in firm in reaching to customers
across the globe. For instance, if in case hospitality management staff plans to promote its
services than in such scenario the marketing team of company focuses on implementing the use
of techniques which can attract maximum travellers such as social media advertising, tourist
public relation campaign etc. Promotion is the most effective marketing strategy which helps
business in maintaining growth as it helps in connecting worldwide customers. Nevertheless,
product is the key driver of marketing strategy as it is the assets of organisation which is being
offered by organisation to customers at certain prices. Product of the company is the thing on
which marketing efforts of company is based. For instance, in case of marketing the firm focuses
on enhancing values of its products where at the time of promotion the management focuses on
implementing every basic detail bout company’s products and services. For example, marketing
about hotel room services the company focuses on including detail about room, accommodation
facility, price, and all other amenities which are required by guest for living. Amzath and Zhao,
(2014), have stated that marketing strategies plays an important role in increasing values of
company’s products and services. It is the tactic of deriving consumer behaviour and buying
decision. It helps in gathering marketing related information which is most crucial part of
business functions as it helps in deriving turmoil which can influence business operations.
Waheed and Hassan, (2016), has stated that is of marketing strategies is directly related to
growth of business as it helps in attracting clients. It is important for organisation to implement
the use of marketing as it helps in deriving various factors which are beneficial growth and
development. Like it helps in analysing, competition, fluctuations of business environment and
competitor’s strategy of attracting customers. Analysing changes in market trends and consumers
demand is the factor which is related to growth of an enterprise. Therefore, implementing best
marketing strategy is the most sensitive part for business as it focused on enhancing values of
company’s products and services.
Key factors that impact the guest house business.
According to Pathmanaban, Pappayah and Jinus, (2017), there are many factors which
can influence business of hospitality factors such as, marketing strategies, political and economic
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changes, internal threats and weakness of an enterprise etc. Changes in political factors are the
foremost factor which influences business operations. Political instability is related to changes in
regulations, exchange rates, taxation etc. It is important for an enterprise to keep a check over
changing regulations in order to make organisational functions effective and stable. For instance,
talking about guest house business in Maldives Government is focusing on providing support to
guest houses in order to increase their business because tourism is the only sector which
contributes Maldives economy. Moreover, the increasing tourism across the globe has increased
employment opportunities which denote stability for guest house business. Similarly, the author
has stated about Maldives where the hospitality industry has created vast job opportunities which
is remarked for nation building and developing skills and knowledge. On the other hand, tourism
objective of Maldives are the factors which influence guest house business like, equitable
distribution, facilitating objectives, community inclusion etc. These are factors of hospitality
which impacts business opportunity and management. Thus, managing employee’s roles and
responsibilities is the strategy which helps guest house business in maintaining sustainability of
hotel operations.
(Maldives Destination Development Strategies Towards Green Tourism, (2012), has
stated that major threat to guest house business is availability of rooms at cheaper rates which
derives competition and leads to influence consumer psychology. In addition, the author has
stated that changes in climatic conditions are the major threat to hospitality sector because it
creates risk for travellers due to which tourism in regions decreases. Like in Naifaru island of
Maldives, the growth of guest house business is most influenced by climatic conditions. The
arrival of various travellers is influenced by weather conditions which directly influences guest
stay. Therefore, at time of marketing it is important for the hotels to promote about the climatic
conditions and stable living services the management is serving even during climatic changes.
The author believes that to ascertain risk guest house owners focuses on implementing strategic
thinking which helps the organisation in implementing the use of different strategic models that
helps in analysing of business a business environment. Strategic tools such as Pestle and Swot
helps the enterprise in evaluating internal threats and weakness which can hamper marketing
plans as well as growth of business.
Apparently, Zubair, Bowen and Altinay, (2015), have stated that guest house business of
Maldives has been marked a noticeable growth since past decades. Apart from this, climatic
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