Shangri-La by Himanshi Shah

Company Overview

Professor: Alessandro Cannata LXFM 730 Marketing Strategies for Luxury Brand and Experiences Audrey Thames • Himanshi Shah • Pengyu Pan • Maria Lucia Osorio 1

Table of Contents

Executive Summary Company overview The Shangri La Story Period overview Company Mission SWOT Aaker Matrix Kapferer Prism Keller’s Pyramid Unique Revelation Belief System Brand Rituals Distinctive Lexicon Market Overview The Size of the Market Growth potential and opportunities Competitive landscape Perceptual map Core competencies, competitive advantages

Executive Summary

3 4 5 7 8 11 12 13 14 15 16 17 18 19 20 22 23 24 26

Key success factors Future Trends Target Consumer Personas Lifestyle & Psychographics Behavioral Goals & Objectives Strategic Overview Unique Selling Proposition Marketing Mix Purpose Product Price Placement Promotion People Conclusion Works Cited Appendix

27 28 29 30 38 40 43 44 45 46 47 48 52 53 56 59 60 61 63

For nearly fifty years, Shangri-La Hotels and Resorts has prevailed as the epitome of Asian hospitality among luxury hotels, a legendary aspect that sets it apart from its competitors. Inspired by the mythical land of James Hilton’s novel, Lost Horizon, the name evokes the ideas of serenity and service, which the company applies to every guest experience. The group ’s consistent message of the family has allowed it to expand to over 95 properties across the globe at the some of the most premier destinations. The purpose of this proposal is to imagine Shangri-la in 10 years considering the new frontier of luxury hospitality and the next generation of services and guest within the luxury hotel business. Whether settled on a secluded island or submerged in the fast-paced metropolitan city, it considers that Shangri-La maintains the same message: “To treat a stranger as our own.” With a plethora of hotels within the luxury category, only some are able to stand out, compete and make lasting impressions due to a few key success factors. Yet, Shangri-La manages to stand out because of its unique characteristics of Asian hospitality in addition to a high luxury quality of service and products offered to its customers. This renowned service is due in part to its focus respect, humility, courtesy, helpfulness, and sincerity. Throughout the years, the company’s unique selling proposition has remained, “Shangri-La hospitality from a loving family,” a trait that describes their commitment to providing guests with distinctive Asian standards of hospitality and service and remains the cornerstone of their reputation as a world-class hotel group. The luxury industry is transitioning as a whole, as customers demand personalized products and experiences. This is especially true today in the case of millennials, who often look to fulfill hedonistic desires. With this, Shangri-La must strengthen its strategy pertaining to digital technology in an effort to appeal to new customers and expand into new markets. Shangri-La already excels in servicing to needs, but today the group must evolve by satisfying these new wishes in order to build their brand equity, continue providing the highest level of excellence and remain legendary.

Company Overview

Shangri-La Asia Ltd. is the leading Asian region’s luxury hotel group. The company operates 126 five-star luxury hotels located in premier cities across Asia Pacific, North America, the Middle East, and Europe. The Shangri-La story began in 1971 with the first deluxe hotel in Singapore inspired by the legendary land featured in James Hilton’s 1933 novel, Lost Horizon, the name Shangri-La encapsulates the serenity and service for which the hotels and resorts are renowned worldwide. Today, Hong Kong-based Shangri-La Hotels and Resorts is Asia Pacific’s leading luxury hotel group. It is also regarded as one of the world’s finest hotel ownership and management companies. Shangri La Group owns and manages over 95 hotels and resorts throughout Asia Pacific, North America, the Middle East and Europe, the Shangri-La group has a room inventory of over 40,000. Shangri-La hotels are contemporary in style and provide a seamless link between business, entertainment and recreation. Extensive leisure facilities serve as a social hub for both hotel guests and the local community. In addition to hotels, the group’s portfolio also includes commodity trading, real estate, beverages, logistics, shipping, edible oil refining and plantations. The hotel’s 15 acres of landscaped gardens, beautifully appointed guest rooms and gracious Asian style set a new standard for hotel excellence, which to this day continues to guide the group’s design features. New hotels are under development in mainland China, Cambodia, Hong Kong, Indonesia, Malaysia, Myanmar, Saudi Arabia and Sri Lanka.

Brand Portfolio

Shangri-La Hotels Shangri-La Hotels are five-star luxury properties with premier city addresses across Asia Pacific, North America, the Middle East, and Europe. Shangri-La Resorts Shangri-La Resorts offer travellers and families relaxing and engaging vacations in some of the world’s most exotic destinations. Traders Hotels Traders Hotels are a blend of thoughtful simplicity and the warmth and sincerity of Asian hospitality. Each Traders hotel is a vibrant yet professional place that is designed to complement guests at work, rest or play. Kerry Hotels Kerry Hotels are vibrant and happening places, buzzing with life and activity. Every Kerry hotel exudes a unique style and careful attentiveness that bestows a sense of individuality to all guests. Hotel Jen A diverse, fast-growing mid-range hotel chain across key locations in Asia, Hotel Jen offers authentic insights, homegrown experiences and unexpected adventures, enabling guests to immerse themselves and leave boring behind in each destination.

Company Overview

Company Milestones

1970’S 1980’S

• Robert Kuok extends interests into property and hotel development, building his first hotel in Singapore. • Kuok establishes a second hotel in Kowloon, launching the Shangri-La brand, and entering direct hotel management. • The company incorporates as Shangri-La Hotels & Resorts. • First hotel in China opens in Hangzhou. • The mid-range Traders Hotel brand is launched, with the first site in Beijing.

1990’S

• The company establishes publicly listed Shangri-La Asia, which acquires the Kuok-owned hotel properties, and then goes public on the Singapore and Hong Kong Stock Exchanges. • Shangri-La Asia buys 15 hotel sites under development in China from the Kuok-owned companies. • Shangri-La Asia acquires Shangri-La Hotels & Resorts, creating an integrated hotel ownership and management group.

2000’S

• Shangri-La Asia announces plans to add 15 new hotels in China, five hotels in Europe, and hotels in North America, in order to reach a total of 100 hotels by 2010. • First CHI, The Spa opens in Bankok, Thailand.

2010’S

• Launch of Golden Circle loyalty rewards program. • Shangri-La enters the european market with a hotel in Paris. • Launching of global campaign “It’s in our nature”.

Foundation Overview

Political

Social

• 1959-2015 Lee Kuan Yew became the first Prime Minister of Singapore. • 1965 Singapore became independent from British rule after Malaysia voted to expel the country from the federation. • 1965 Constitutional Amendment Act was passed, leading Yusof bin Ishak to become the first President of Singapore. • 1965 Singapore joined the United Nation and the Commonwealth of Nations. • 1967 Singapore became the founding member of the Association of Southeast Asian Nations. • 1971 Dr Benjamin Henry Sheares became the second President of Singapore. • 1971 the last British military forced retreats from Singapore.

• April 23, 1971, Shangri-La Hotels and Resorts opened its flagship and first hotel. • 1972 Singapore Airlines was established. • September 2, 1971, the People’s Action Party won the general election.

Economical

Art and Literature • Declining popularity of local bands/performers • Modern art movement - socially motivated art vs. financial gain • Experimentation- new styles developed and old aesthetics reinterpreted • Small writing scene that didn’t encourage dreamers and writers • Small confine of poets recognized by academic establishment of University of Singapore

• 1965 to 1973 - average annual growth of real GDP was 12.7 percent • British departure led 20 percent job loss - led Singapore’s leadership to take strong role in guiding nation’s economy • Since its independence in 1965, Singapore has relied on the rapid transformation of international trade and human capital, making it apart of the Four Asian Tigers (Hong Kong, Singapore, South Korea and Taiwan) • Structural change in the economy - enough capital had been accumulated to permit the domestic production of goods that were more capital intensive • Growth achieved as workers added to payroll and provided with better machinery • Outstanding record of price stability - inflation kept low by the government’s conservative fiscal policies, which included the maintenance of strict control over the money supply • Large share of Singaporean manufacturing foreign-owned and high degree of export-led growth - Singapore’s reliance on multinational corporations of the world to provide the necessary investment meant less dependence on the Southeast Asian region generally and neighboring countries particularly 8

Foundation Overview

Company Mission

Technological • Technical Education Department set up in the Ministry of Education in June 1968 • The Chartered Industries of Singapore (CIS) established in 1967 to manufacture ammunitions • Singapore Shipbuilding & Engineering (SSE) and Singapore Electronic & Engineering Limited (SEEL) were formed in 1968 and 1969 • In 1971, Singapore Automotive Engineering (SAE) formed to provide the SAF with vehicle maintenance and servicing - branched into vehicle modification and engineering and later, design • To develop artillery, field guns and other weapons, the Ordnance Development and Engineering (ODE) and Allied Ordnance of Singapore (AOS) were started in 1973. • 1973, creation of Singapore Food Industries (SFI) and SAF Enterprises (SAFE), which sold basic food items to SAF personnel

To delight our guests every time by creating engaging experiences straight from our heart.

S W O T

Swot Analysis

• • • • • • • •

Strong brand recognition and reputation Unique services and product quality Asia’s rich cultural heritage Luxurious facilities like the Shangri-La Spa Global expansion Loyal customer base Innovation and unique products Direct management and ownership (significant)

• China positioning as one of the world’s largest economies • Tourism and hospitality sector growing globally • Younger generations traveling internationally • Rising income level of middle class population • Expanding to other geographic destinations through the acquisition of local hotels • Technological innovations for the hospitality sector

Aaker Matrix

• Lack of presence and brand awareness in Europe and North America • Hotels that aren’t self owned and operated • Main focus on business travelers and older customers

Brand as a product

• • • • • •

Brand as a person

Mergers and acquisitions in the hospitality sector Increased labor costs Global recession Exchange rate fluctuations Rise of business models like AirBNB Terrorism attacks

Brand as an organization • • • • •

• • • • • •

Oriental Exclusive Customization Sustainable Community-oriented

Brand as a symbol

Sophisticaded weathly woman In her fifties East Asian Good hostess Perfectionist Tasteful

Kapferer Prism

Keller’s Pyramid

Physical • Luxurious • Exotic • Oriental

• Historical • Paradise

Relationship • Emotional • Respectful • Trustful

• Long-lasting • Devotional • Commited

Reflection • • • •

Rich Luxurious Aspirational Mythical

Personality • Warm • Welcoming • Culturally rich

• • • •

• Sincere • Humble

Culture

International standards Singapore heritage Sustainable practices Safety, health and security of guests and employees

Self-projection • Success • Wealthy • Prestige

• Sophistication • Self-reward • Significant

Resonance

Hospitality from the heart Sense of belonging & inclusion

Judgements Quality Comfort Prestige

Feelings Embraced Sophisticated Relaxed

Performance

Imagery

5 star ranking hotel Personalized services

“The closest thing to paradise”

Salience Oriental luxury experiences International standards

Unique Revelation

Brand Rituals

The hotel seeks to elevate the guest experience to the highest level. Some of the rituals on-location are: Inspired in the novel Lost Horizon by British author James Hilton, Shangri-La is a fictional place. An earthly paradise, a Himalayan mythical utopia. It evokes the oriental luxury imagery full of exoticism.

• Multi-language guides to help guests explore the destinations. • Variety of chinese teas and comfort food in-room. • Ancient healing traditions from the Himalaya as spa rituals. • Personalized welcoming guest drinks at arrival • Special transportation from the airport to the hotel

Belief System

Asian hospitality is known for their tradition of kindness and giving. The company believes in excellence and attention to details. Shangri La operates based on the tradition of offering exceptional service with deluxe features under the premise â&#x20AC;&#x153;To treat a stranger as one of our ownâ&#x20AC;?.

Distinctive Lexicon

The special lexicon is anchored to the CRM rewards program. The three membership categories are GOLDEN, JADE & DIAMOND. They use the concept of CIRCLE to offer exclusivity and sense of belonging.

Market Size and Overview

The travel and tourism are one of the world’s fastest-growing sectors, with bookings hitting close to $1.6 trillion in 2017.A strengthening global economy lies at the heart of industry growth. Each year, the global traveler pool is flooded with millions of new consumers from both emerging and developed markets, many with rising disposable incomes and a newfound ability to experience the world.Luxury travelers are more knowledgeable than they have ever been in history, because of information being available so readily, and peer-to-peer endorsements on social media. Travel and Tourism impacts include people traveling for both leisure and business, domestically and internationally. One key trend driving the future of luxury travel is the shift in values from materialistic to experiential rather than saving up to buy luxurious possessions, people are choosing to spend their money on experiences. People became more aware of remote destinations of the world, where they could experience things that they haven’t before. This can be seen in trending hashtags such as #travelgram, #traveldiaries, and #wanderlust on social media sites the most by “experience” hungry millennials. Guests, younger ones especially, are looking for constant stimulation. Travelers want to interact with the destination they are staying in. They want to benefit from cultural immersion and to engage with the community in which they are in. They are more curious as travelers than at any time previously. Values like authenticity and having a “local” experience are the new attractions for tourists. In previous decades, North America and Europe have dominated the travel markets, but this may not be the case for much longer. By 2030, most of the growth in international travel will come from Africa, Asia, and the Middle East, which will enable further growth and job opportunities in these regions. While markets in Europe and the Americas will continue to grow, the rate is incomparable to other regions. In the coming years Asia-Pacific luxury travel market will see faster overall growth than Europe from 2011-2025. Over the next 10 years, the growth rate is outbound luxury trips is projected at 6.2%, almost a third greater than overall travel (4.8%). Emerging markets will not only become larger source markets but also they will become more attractive destinations. Between 2016 and 2026, the top 10 fastest growing destinations for leisure travel spending are expected to be India, followed by Angola, Uganda, Brunei, Thailand, China, Myanmar, Oman, Mozambique, and Vietnam.

Growth Potential and Opportunities

There’s an emerging trend starting in the millennial generation, consisting of mixing luxury hotel stays with budget hotels in the same trip. This provides the travelers the opportunity to experience luxurious accommodations and activities within budget. Young travelers also look for value-for-money packages where they can also immerse in the local culture of the visited place. Customization is the key to the hospitality business to enhance that experience and fit every guest needs. The technological advances help hotels to enhance the overall guest experience complementing the existent amenities. Many countries worldwide are implementing government programs to promote tourism.

Competitive Landscape

Hotel Group

Brands

Sector

Unique Selling Proposition

Marriott Int’l Inc

Over 126 countries/ territories

Over 30 brands

Leading global lodging company

An unparalleled collection of worldwide brands - Marriott Rewards members rate, our best rate, guaranteed & mobile check-in

InterContinental Hotels Group PLC

5,348 hotels in Americas, Europe, AMEA & Greater China

14 brands (Intercontinental, Crowne Plaza, Hualuxe)

One of the world’s leading hotel companies

True hospitality for everyone - the right hotel brand for both guests and owners, whatever their needs.

AccorHotels Group

4,200 hotels in 95 countries

25 brands

Worldwide leader in hospitality & services

“Feel welcome”

Hilton Worldwide

5,100 properties in 103 countries/ territories

13 world class brands

Leading global hospitality company

Highest performing & most diverse brand portfolio in the industry

One of the world’s top hospitality companies

A world of rewards- Easy to earn. Fun to redeem. Rewarding to experience. WE care FOR PEOPLE SO THEY CAN BE THEIR best.

International luxury hospitality company

9 countries, 1 journey Extraordinary experiences

Hyatt Hotels Group

Four Seasons Hotels Ltd

Geographical Presence

774 properties in U.S. & Canada, Caribbean & Latin America, Europe, Africa & Middle East, Asia and Australia & Pacific North America, Central & South America, Europe, Middle East & Africa, and Asia & Pacific

14 brands

Four Seasons Hotels & Resorts

Perceptual Map

Company Overview

Core Competencies and Competitive Advantages

Key Success Factors

The aspect that sets Shangri-La apart most from competitors is its unique characteristics of Asian hospitality in addition to a high luxury quality of service and products offered to its customers. Shangri-La’s version of outstanding customer service is based on employees’ personal values: respect, humility, courtesy, helpfulness, and sincerity. At every property, the company features an array of differentiated products, with the most iconic being their renowned spas. Employees are sure to always include lessons included in their culture training program to guide them in everyday performance. Furthermore, Shangri-La contains effective promotions and special offers to not only attract customers but retain loyal guests. Lastly, Shangri-La has partnered with Taj Hotels Resorts and Palaces to create an alliance that allows customers to have even more experiences while earning even more rewards and receiving increased benefits. With both groups possessing Asian heritage, they aim to provide guests with a “warmer welcome.”

Across the globe is a plethora of hotels that fall under various rankings. In the luxury category, only some hotels and hotel groups are able to stand out, compete and last, with all containing a few key success factors. Perhaps the most significant one is location. Of course, having multiples properties helps dominate, but it’s also a matter of being in the right location and ensuring there is no geographic overlap. In addition, luxury hotels must have a strong brand name that eludes value and prestige and is recognizable through its history and tradition. The property itself should have an alluring design and architecture with first-class facilities and an “haut de gamme” or upmarket restaurant. When it comes to people, guests must receive exceptional services combined with personalized and unconventional experiences. This is heightened by sumptuous comfort, choices, and convenience. When choosing a hotel, guests look for flawless packages and products while also valuing price consistency. 26

Future Trends and Influence

Target Consumer Demographics

The new generation of travelers choose experiences over things, so the product to propose must focus on creating intangible memories in the mind of the customer. This guest seeks connection through personalization of their stay, they look to get to know the local culture and meet people inside a communal ambiance.

• AGE: 25 TO 65 YEARS

Taking advantage of everything provided to them, they try to combine business and leisure in order to make the most of the experience. There’s a growing interest in mindful and healthy activities and digital solutions that simplify tasks.

• Spending: our consumers grew up in a globalized world and have a strong desire for globalized luxury

• Income: Salary over $60,000 annually

• They appreciate localization of experiences and retail, for which they are willing to pay more

Company Overview

Personas

NAME: Carl and Marge AGE: 65 years LOCATION: England PROFESSION: Doctor INCOME: Money machine WEALTH: Financially free TIME: Semi-retired LEVEL OF KNOWLEDGE: Luxury explorer PERSONAL PREFERENCE: Understated

Company Overview

Personas

NAME: Virat Kohli & Anushka Sharma AGE: Mid 30â&#x20AC;&#x2122;s LOCATION: India PROFESSION: Indian Celebrities INCOME: Money Machine WEALTH: King TIME: Leisure Class LEVEL OF KNOWLEDGE: Luxury Native PERSONAL PREFERENCE: Opulent

Company Overview

Personas

NAME: Chris Pratt AGE: 32 years LOCATION: London PROFESSION: Business INCOME: Paycheck to paycheck WEALTH: Financially protected TIME: Busy bee LEVEL OF KNOWLEDGE: luxury tourist PERSONAL PREFERENCE: Luxury indifferent

Company Overview

Personas

NAME: Ashley White AGE:28 LOCATION: New York City PROFESSION: Fashion Editor INCOME: Middle income WEALTH: Financially secure TIME: Work obsessed LEVEL OF KNOWLEDGE: luxury tourist PERSONAL PREFERENCE: superstar

Lifestyle and Psychographics

Company Overview

The Exclusivity Seeker: In those group of consumers which have half a million USD invested in their property. They love to purchase and invest in luxury brands because those produces are unique and high quality also can meet those segments high stander. They are the manager, director, or VIP in a public or private company. The exclusivity seekers spend a huge budget on flight tickets and hotels, they are also a heavy buyer of luxury products. The Indulgent Traveler: This segment targets the purchase of the travel which elevates their social status. They have assets like stocks, premier banking account, etc. The travel indulger has a huge budget on flight tickets and luxury hotels. Advertising in airport and online, traveling magazine, newspaper, those media channel is the key to them making the travel purchases. In spare time, they like to shop and dining with friends, outdoor sports like golf. The Virtual Shopper: For virtual residents are the product of the digital era. They do research and purchasing online, which the internet is their whole life. Moreover, they are looking for the products with high quality and uniqueness, as well as the flight tickets with five-star airline services. The hotels they have stayed in W, Shangri-La, Kempinski. A fancy and professional hotel website, which can attract them to spend more time dig in. The Luxury Bargain Hunter: Those people have had the desire to own luxury goods but only at an affordable price. They are the middle-to high-level manager in a private/ public company. When they travel internationally, tax-free products are their top priority. Also, they have the mastered the art of comparing and searching the price online and on the ground, ask them where to purchase best price products you will have the surprise. Shangri La hotel is the best choice for this segments, with five-star services but four-star price.

Behavioral

Technology Usage:

Media consumed:

In the digital era, customers rely on the smartphones, internets, social media platforms. Customers update their comments, photos all around the world. They are not only in working time with that high tech, but also in their leisure time. A superior website, good photos, written content those features can help Shangri-La have a positive reputation and benefits. According to the study, on average hotel shoppers spending 29.8 minutes before they book a hotel. 87% of customers determined their decision by the photos.

Shangri-La is a five-star property which services in two different worlds: China and the rest of the world. Because of the China government policy which shut down the mix social media platforms such as Instagram, Twitter, and Facebook, but WeChat and Weibo domestic the China market which control by the China government. Even we enter the digital era. But those printed media still remain in our daily life, such as hotel promotion video in an airport, travel magazine, advertisement in a shopping mall. During their fly time, those paper printed magazine is a good time for those customers to know about Shangri-La.

Value innovation and technology: Shangri-La Hotels and Resorts installed virtual reality experiences in their hotels in 2016. It provides customers with the 360-degree video for Shangri-La property via www.shangri-la.com/VR, also collaborate with Travel advisors with third website VR services. Shangri-La is the first luxury hotels offer customers with free Wifi in 2009. After that, Shangri-La develops a technology which allows guests can access the Internet using their mobile devices from the hotelsâ&#x20AC;&#x2122; chauffeured cars. When Shangri-La launched the hotel that occupies floors 34 to 52 of the Shard, the tallest building in London, the second skyscraper in Europe. In each room offer customers with a telescope to overview the London landscape.

Travel patterns: Nowadays, GDP is rising up in the third country, such as China. Moreover, customers are not traveling for work but for leisure, the destination from domestically and internationally. Staying in the fivestar property will provide them with a luxury hospitality, also provide consumers with a status symbol. Asian heritage: Shangri-La groups choose the hotel location not follow the local and historic culture background, but also more focus on its own corporate culture which is â&#x20AC;&#x153;Asian-inspired hospitality.â&#x20AC;? Some of the hotel locations could build by corporate itself, where is in Paris and London. However, the insider decoration of each hotel has the common design, color, material, etc. For instance, Chinese restaurant, Asian welcoming, and greeting, Asian hospitality, those features are a treasure of ShangriLa Asian heritage. Because of the Asian heritage, which enhanced the Shangri-La corporate stand out among the five-star hotel lists.

Goals and Objectives

PROGRAM OBJECTIVES · · · · ·

Generate experiences that stick over time in our customer’s memory Go beyond the expected amenities Use digital solutions to enhance those experiences Boost a sense of communal ambiance between our guests Connect with personalized options

Strategic Overview

Unique Selling Proposition

Travel and hospitality is no exception to the evolution of the luxury industry. As the view/definition of luxury as a whole continues to transform and travelers are becoming younger, the expectations from hotels have changed, with a focus lying on experience. Because of this, hotel groups must consider ways to make their product offerings more personalized and optimized in order to appeal to an array of consumers, preferences, values, and desires. We recognize that more customers wish to maintain the luxury feel while also immersing themselves in the local culture. At the same time, there are those customers, especially millennials, that value selective luxury that gives them the flexibility to still experience luxury while on a budget. With this, we are proposing truly personalized packages that center around adventure, lavishness, and immersion. Not only will we offer standard services and activities for each product category, but also allow guests to cross over different categories in order to craft their ultimate personal experience. This will only be offered through our new Turquoise Circle app that will feature various questions to determine their best fit experience. In addition, the app will allow guests to engage and connect with other guests planning to set on similar trips.

Through the years, our philosophy has been “Shangri-La Hospitality from a caring family.” Shangri-La has always believed in the unique characteristics encapsulated by Asian hospitality. “Our commitment to providing guests with distinctive Asian standards of hospitality and service enables us to stand out amongst our peers. This quality remains the cornerstone of our reputation as a world-class hotel group.”

Marketing Mix

Purpose

Price

Purpose

People

Product

Promotion

Shangri-la stands today as Asia-Pacificâ&#x20AC;&#x2122;s leading luxury hotel group. With hotels and resorts across the globe in some of the most exotic and premier destinations, they offer guests luxurious and engaging stays highlighted by their focus on Asian hospitality. The purpose of this proposal is to imagine Shangri-la in 10 years considering the new frontier of luxury hospitality and the next generation of services and guest within the luxury hotel business. Looking to the future, these personalized packages will provide guests with multiple experiences during one stay. By building upon the existing brand equity, we hope to promote the highest level of excellence.

Placement

Product

The Shangri-La’s Turquoise Circle program consists of a collection of customizable vacation packages under three main categories: · · ·

Lavish and refined Cultural immersion Mindful adventures

Product

Perfect Getaway PACKAGES Description

Each package will be offered in three primary Shangri-La locations throughout the world, will have a special price and different options to create a personalized getaway for every customer and its individual needs.

Services

Locations

Lavish and Refined

Cultural Immersion

Mindful Adventures

Just go, hang on the beach, drink margaritas and get a foot massage Shop in prime locations at your favorite destinations

Experience the luxury of Shangri La services and tour historical and locations immersing in the local culture

Yoga, meditation classes, zip lines, hikes and more activities aimed at the mind-body connection

• Assorted exotic spa treatments • Personalized massages • 24/7 bar and room service • Yacht events • Personal chauffeur • Luxury shopping sprees • One on one lessons of soft sports

• Personalized sightseeing tours to famous historical locations • Gastronomic journeys in location’s finest restaurants • Art and theater • Cultural celebrations • Party like a local • Community philanthropic opportunities •

• Fitness and mindfulness classes • Adventurous activities upon location (Safari, zip lines, paragliding, hot air balloon, hikes, fishing, scuba diving and more) • One on one lessons

• Maldives • Mauritius • Abu Dhabi

• Paris • Lhasa (Tibet) • Phnom Penh (Cambodia)

• Colombo (Sri Lanka) • Fiji • Vancouver (Canada)

Product

The Turquoise Circle App The program is supported by a special app that helps each user create and personalize the perfect vacation. The app evaluates parameters such as consumer profile, interests, budget, age and destinations in order to tailor a proposal that feels unique and suits specific needs and wants. BENEFITS · The turquoise app is the only way to access our special personalized getaway plans · The app lets you connect with people all over the world with the same interests · The app is directly linked to Shangri´La’s Golden circle rewards program • Join Turquoise Circle quickly with just a few taps • Check Turquoise Circle Award Points balance and manage the membership account • Redeem points for complimentary stays plus dining and CHI, The Spa vouchers • Get travel tips, read and share travel stories with Turquoise Circle members • Connect to the nearest international toll-free numbers for 24/7 customer support using location-based GPS technology • Retrieve offers and stories at Shangri-La hotels with the built-in QR code scanner • The turquoise app is the only way to access our special personalized getaway plans • The app lets you connect with people all over the world with the same interests • The app is directly linked to Shangri´La’s Golden circle rewards program

Price

Placement

Lavish and Refined Package

Cultural Immersion Package

Accommodation inclusive of all island experiences for 3 nights/4 days. Indulge in the Private Island Villa, inclusive of breakfast, jet ski, a private cruise, four signature spa treatments, and bespoke romantic dinners for two.

Accommodation inclusive of all cultural package for 3 nights/4 days. Experience the Cultural Immersion package, inclusive of breakfast, VIP amenities like a bottle of champagne, 2 tickets to the famous museums in the city, and signature spas treatments.

$7,000-$15,000 per person

Lavish & Refined: Ideal for those that desire privacy, uninterrupted experience, and luxury service. This package will mostly feature exotic, island locations that offer spacious properties, like villas, that allow guests to completely unwind.

$4,000-$20,000 per person

Accommodation Inclusive of all Safari experiences for 3 nights/4 days.

Mindful Adventures Package

Hot air Balloon ride in Sri Lanka $ 700 per person Indulge in the Mindful Adventures, Inclusive of breakfast for two, two and half-day safaris at Yala or Udawala National Park, a chilled bottle of sparkling wine, and a basket of tropical fruits.

The highlighted locations are based on existing Shangri-la hotels and resorts at the some of their top global destinations. These featured spots all contain qualities that strongly tie into one of the three package offerings.

$2,000-$5,000 per person

Maldives Private villas perched atop the emerald green jungle or strung along the turquoise shoreline, indulge in tranquility at CHI, The Spa, explore the luscious tropical forest, play around at the only 9-hole golf course in the Maldives or embark on an ocean adventure through numerous water sports. Mauritius Along the untouched eastern coast of the verdant island nation, Trou d’Eau Douce Bay, tranquil, uncrowded world-class beaches, thrilling water sports and island activities, just off the resort’s pristine shore, there are two paradisiacal islands – Ilot Mangénie, which is open to Shangri-La’s guests and features a trendy beach club and on-island butlers, and Ile aux Cerfs, which holds a spectacular 18-hole championship golf course that was designed by the famous pro-golfer Bernhard Langer. Abu Dhabi Conveniently located near the airport, golf course and city center, its lush garden landscapes place it in a serene, faraway world of its own.

Placement

Cultural Immersion These hotels are located in places rich in culture and history that allow guests to fully immerse themselves in local tradition, customs and people. Paris Originally built in 1896 as the home of Prince Roland Bonaparte – Napoleon’s grandnephew, incredible views of the Eiffel Tower and Seine River, Les Invalides, the Louvre and Montmartre, short stroll away from the hotel are some of Paris’ most renowned landmarks, including the Arc de Triomphe, the Place de la Concorde, and the Jardin des Tuileries. Exclusive designer shops on the famed Avenue Montaigne and Avenue George V are also within easy reach, as are many renowned museums. Lhasa (Tibet) Find a copy of Lost Horizon by James Hilton in your elegant and spacious room, nearby Historic Ensemble of the Potala Palace, a breathtaking UNESCO World Heritage Site and traditional residence of the Dalai Lamas, From Lhasa, travel by car to each of Tibet’s magnificent holy lakes, return to the hotel for dinner, meet friends at Shambala for a taste of local barley wine and authentic Tibetan-Yunnan tapas. Chiang Mai, Thailand In an ancient Thai city, start the day by taking a rickshaw ride down the small quiet lanes within the old town, explore the many curio and antique shops nestled in teakwood houses, enjoy wandering around shady tree-lined lanes that lead to numerous Thai Buddhist temples, hop on an elephant’s back on a trek up the rolling mountains. Special touches such as local celadon tea sets, Thai silk pillows, bed runners, and artwork give the area a distinctive Chiang Mai charm. 54

Placement

Mindful Adventures With a focus on mind, body, and spirit, this package features outdoors adventures unique to the natural environments of the hotel/resort, such as mountains, bodies of water, forests, desserts, etc. Hambantota (Sri Lanka) “Explore the wild side of Sri Lanka,” leopard spotting at Yala National Park, the bird sanctuary at Bundala National Park, Jungle River safari, Kudawella Blow Hole, Turtle Beach, Elephant R.U.N. Fiji “Nature at your doorstep,” Shangri-La Marine Education Centre, Garden of the Sleeping Giant, Kula Eco Park, Sigatoka Sand Dunes. Vancouver (Canada) “Between mountains & the sea,” During summer, enjoy helicopter tours, the world famous lumberjack show, the Grouse Mountain refuge for endangered wildlife as well as birds in motion demonstrations.In winter, discover a snowy wonderland renowned for skiing, snowboarding, snowshoeing, ice skating, and sleigh rides.

Promotion

Company Overview

Message The main aspect of brand identity that Shangri-La focuses on is culture, specifically Asian culture. Regardless of the geographical location, they make an effort to instill those same traits, gestures, and traditions in their service. The main message that we aim for guests to continue to take away is the opportunity to join “our family,” one that is already rich in culture. This is reinforced by the color turquoise: one of the most Ancient gems in history that today can only be found in a few places on Earth, one being China. It is said to guarantee health, good fortune, and protection from evil. In addition, the repeated image of a circle reinforces the idea of family, community, embrace, and inclusion, which they hope for guests to become apart of. Shangri-la goes by the motto of “pride without arrogance,” meaning that while they take pride in their achievements, they still remain outwardly humble. Archetype Shangri-La views their community as one filled with trendsetters and professionals motivated by innovation and driven by achievement. There is a shared value of excellence, consistency, and quality, which is woven into every guest experience, every stay. High level of details and communication quality. Shangri-la functions according to a variety of guiding principles in their commitment to higher standards. Two of the key principles include making guest loyalty a key driver of their business and enabling decision-making at the guest contact point. These two specifically highlight the values of accommodation by any means which in turn converts to increased loyalty. This is also accomplished through their Golden Circle program, which is their way of recognizing that loyalty. The philosophy is “a continual improvement to create unforgettable experiences for you, our most valued guest.” With this, customers receive global, exclusive offers and benefits at various levels. Shangri-La expands this feature with the “Inner Circle,” in which guests receive travel inspiration, tips, recommendations and insider knowledge.

Company Overview

People

Under the Shangri-La group, CSR mission of “Sustainability,” Shangri-La Hotels and Resorts have five features, Environment, Health & Safety, Employees, Supply Chain, and Stakeholder Relations. These activities provide a campaign to unite the stakeholders, employees, business partners and align. Moreover, Shangri-La collaborates with local community, in order to develop the CSR toward into a good future. “We commit to operating in an economically, socially and environmentally responsible manner whilst balancing the interests of diverse stakeholders.” Environment-One with Nature: Shangri-La Hotels and Resorts without harmful to our natural while bringing luxury hospitality to our customers. Company property saves natural environments in its original way, which keep biodiversity and manages waste, water, and energy. For instance, abandon plastic bottles but glass products, rainwater harvesting, and using natural energy. Health and Safety-Putting people first: Shangri-La Hotel and Resorts with local governments work together with strict rules of food safety systems, hygiene, and sanitation. For purpose of customers, employees, and environment safe and healthy. Employees-Our Family: Shangri-La is a company with no tolerate unlawful workplace conduct, discrimination, or harassment. Shangri-La has its own department for training professional employees. Fair labor among all departments, Moreover, Shangri -La providing positions with 2% persons with disabilities in the local community from 2012. Supply Chain-Towards Sustainable Sourcing: In January 2012, Shangri-La published in all operated restaurants stop selling shark fin with its “Sustainable Seafood Policy.” Also, Shangri-La prefers local community-based suppliers and eco-friendly products, to enhance the local environments sustainability. Stakeholder Relations- Strength in Partnerships and Communication: Started from the first stakeholder engagement process in 2012, Shangri-La colleagues and senior, management, corporate clients, Non-governmental organization, investors and key suppliers, which from those six survey groups to work together for the future CSR operations. The group mission which is clear, honest and respectful. Moreover, with the weekly blog posts, weibo, wechat those social media platform, promote Shangri-La’s sustainability running system in all of the world.

Conclusion

The hospitality business is changing over the years. Luxury hotels need to adapt to those changes in order to keep building brand equity and remaining relevant. The new generations of travelers look for experiences over things, they aim to connect with the essence of their visited places and to explore further, engaging in unique activities that will remain in their memory forever. The Turquoise circle program provides Shangri-La is a tool to be able to resonate with those new customers and provide them with personalized full-package experiences. It is also designed to replicate in different locations and multiply the services offered in order to encompass all the needs of those new generations, keeping the Shangri-La brand as a symbol of exclusive and innovative hospitality.

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A. Industry Statistics

Appendix

Appendix B. Global Ranking

C. Perceptual Map Source

Professor: Alessandro Cannata LXFM 730 Marketing Strategies for Luxury Brand and Experiences Audrey Thames • Himanshi Shah • Pengyu Pan • Maria Lucia Osorio