The History Of The Phuket Organization

Part I

Phuket or Phuket Island is located on the west coast of the Andaman, part of the Indian Ocean. Phuket is one of most important travel destination of Thailand. It has natural beauty surrounded by the beach and mountains. Features like a powder white sandy beach and the beautiful blue waters known as “Pearl” of the Andaman Sea.

Phuket has all facilities needed, Phuket international airport which is ready to facilitate traveler from all around the world.

Nowaday, Phuket is heart of Andaman coast traveling which is waiting for many millions of local and foreign visitor to see it.

Phuket, an area approximately 543 square kilometers or 339,375 rai, the province is the 75th largest in the country or second smallest of the country after Samutsongkhram province. However, it is the largest island of Thailand, length of the island from north to south about 48.7 km and the widest measurement from east to west and approximately 21.3 kilometers.Island surrounded by the Andaman Sea with over 30 of large and small islands in its territory.

The word “Phuket” had been distorted from the Malayan “BuGit” which means mountain and the original use of the word “Phukej” which in the language of the Tamil people means “Glass Mountain” is the term used for the Tamil people calls “Mani Klam”. Besides, Phuket also has other names from the past such as LeamTakoh Jungceylon Silan Thalang and Thungkha etc.

Phuket is a long historic city. In the past, formerly part of the Kingdom of Pornlink. Until Sukhothai age, it became a part of Takuapa town. The island had a reputation as a land of rich tin mines because the tin is the most in the country. The prospect of long-excavated over the past 500 years, the city was a small town at Thalang with Thai nobleman stayed and protected interests from trading with foreigner. In addition to mining, the rubber plantations, coconut orchards and fishery were found commonly in the island.

Later in the year 2328 meet the reign of King Rama I, a war had caused the army and Myanmar army troops had invaded into the lands west beach in Thailand from Ranong Chumporn Chaiya to Nakhonsrithammarat. While the Bangkok’s armies were in battle at Kanchanaburi, cannot move troops to help out right away. Myanmar had hit Takua Pa and Takua city and camped around Thalang city and wait to hit Prachuap. At that time, Phraya Thalang (Phaya Pimon Alya Khan) passed away recently and had not set a new ruler yet. His wife Madam Chan and sister named “Muk” were gathering troops and inhabitants. Help set up two large camps to protect city. Myanmar troops can’t break through the camp, a month passed and no foodstuffs supplied to Myanmar troops and withdraw all troops finally

Bravery of them in this was courage and great benefits to the nation. So King Rama the great ordered Royal decoration for the lady Chan as “Thao Thepkasattri” and Muk as “Thao Srisoonthorn” It is pride to the citizens of Thalang until today.

Later, during the reign of King Rama 5, he gathered the western seaside towns and named as “Territory Phukaj” and the year 2476 has been canceled territory system then changed to “Phuket Province” since then.

Today, Phuket province is divided into 3 districts named Muang Thalang and Kathu.

State its mission, vision and major goals.

Mission Statement:

“Phuket will deliver the best leisure experience as well as the fresh of natural environment. As the center of diversified sanitarium and wellness tourism place, people visit Phuket to escape from confusing life stress or illness and its life can be recovered here. Phuket experiences will bring people back to good”

Vision Statement:

“To make Phuket and perimeter province the world’s choice of relax and revitalize”

Major goals:

To drive the strategy of the Phuket province, development goals are set as following

1. Become a center for world-class marine health tourism destination.

2. To raise the quality of life of people and maintains its unique identity of the local culture.

3. Management and utilization of natural resources and environment to keep it balance and sustainable.

Analyze challenges and developments in relation to its marketing.

Phuket is one of the global most attractive travel destinations for many years and it has been developing in term of facilities, commercial and sightseeing. These are good to facilitate and support the traveler to visit Phuket conveniently. However, the environment of Phuket has been decaying gradually. The famous Pathong beach is crowded by booths shops and people caused dirty and garbage around the length of beach that reduce the beauties of Pathong in nowadays.

The rapid change of city also lead the number of criminal and robber increasing in recent year and it has been concerned with the security of traveler both Thai and foreigner.

Challenge for development of destination marketing is how to sustain Phuket name in term of its intrinsic beauties with charming culture of Thailand and create more attractive place continuously. The opportunity of developing Phuket to successful travel destination is not only create reputation to single Phuket itself. Group of provinces around Phuket can make attractive places portfolio bigger and various.

Development of Phuket in the past, it had been developed along with the group of city side strategically. And link in upper south provinces as well as national and international which can say that Phuket has changed in a certain level. The situation of a growing trend of tourism growth in Asia Pacific continued. Thereby enhancing opportunities for Phuket Using the existing base support various development opportunities that will occur in accordance with the following situation.

World-class tourism reputation.

Economic growth and significantly increasing of investment in the tourism and healthy and Elderly.

Linked to regional and international development (Development of travel industry also improves the standard of local products services and educations).

Development of tourism and fishery industry.

Government supports strategically.

Alert of global environment concern quality of life and sustainable development.

To grasp existing chance, Phuket may position itself as health spa or health resort. Forest and beach resource of Phuket are attractive enough for normal travel and it can be developed typically with the development of the whole country but Phuket can differentiate itself and benefit from its natural resources and sightseeing. Revitalize spa or resort that target to people who escape from disorder of metropolitan, stress or in recovering from treatment of sickness can be good story to communicate to target visitors.

Solid direction must be set and roadmap should be launched from government sector. Roadmap must gathering idea from entrepreneur around Phuket and provinces around. The group of leading resort and hotel in must be selected and pioneers to the projects as well as other investor who are professional in field of health spa or sanitarium.

Explain the destination’s marketing strategies.

Background

Phuket is one of the most famous tourist destinations and has undergone rapid and investment of international healthcare. Phuket can now offer the highest standards of welfare and medical care, blended with Thai hospitality. The principle of the health service with world-class hospitality warm and charming Phuket is conducive to health and wellness destination in the world. There is more to Phuket than its white sand beaches, fantastic bargain shopping, water and land sports and entertainment.

Phuket hospitals provide patients access to highly qualified medical personnel. We emphasize that this international accreditation of key factors of success and a guarantee of our commitment to the best of medical services.

The rapid changes in our world today lead us to the era thorniest issue. The world has changed, both positively and negatively, and development are most afraid of our humanity is the development of the disease. In short, if I may say, the disease has no barriers; people living anywhere in the world would have the chance to experience any kind of illness or disease. And most of the time, the disease can be cured for the license period. With this belief, Phuket is the best place for medical treatment; we have the edge when it comes to the availability of services. And you found that there was no time to queue or a long wait for medical treatments in Phuket.

Situation Analysis

In Thailand, health tourism is just in the early stage and trend of growth is vague without any direction from government. However, opportunity of dramatically growth is exist, from many important factors such as attractive resort town, good standard of medical services and lower cost of living. Therefore, global trend of wellness tourism is growing but Thailand is still laggard, big chance to fulfill demand of patient or retire people from developed country.

SWOT Analysis

Strengths

Tourism resources are uniquely beautiful and diverse world-renowned.

Appropriate and isolated location.

A strong and diverse economic base.

The availability of infrastructure and service facilities.

Have a unique culture.

High standard of wellness and medical services.

Low cost of living and medical services expense.

Weaknesses

Security and tourist exploitation.

Participation of citizens and public mind.

Control and maintain standards of service.

Dependence of foreign workers.

Appearance of a natural earthquake risk area the tsunami.

Language and Culture Barrier

Lack of medical staffs.

Opportunities

World-class tourism destination.

Economic growth and investment in tourism, health and the elderly.

Traveling Thailand is strongly support from government sector.

Threats

Uncertainty of local political situation.

Instability of global economic.

International terrorism, international conflict and epidemic disease.

Obsolete of laws and regulations.

Destination’s marketing strategies of Phuket could start from its own resources, people and culture. This to set the whole picture of culture and leisure experiences occurs spontaneously. Main strategies

Assign strategic tourism of Phuket Pangnga and Krabi. Position and the definition of each provinces must stated obviously and use to communicate to target visitors.

Development competitive capabilities of Provinces, defines each one clearly and develop core capability, resources and commitment of local community.

Encourage local people to help promote their hometown to visitor. Sponsor local merchant or facilitator doing business at their place rather than move to Bangkok.

Recommendations for this destination to pursue in the future.

Phuket is normally well known in global travel destination from its quality beach resort and natural sightseeing. Target of bringing health conscious people to take an interest to Phuket is just to boost up communication of new story in health spa and sanitarium for patient and elder.

The plan of doing this could be implemented by government and put into national development in tourism sector and keep monitoring the result and success rate among investor. Serious support from Thailand Authority of Tourism (TAT) is needed, new investor or existing player in resort industry may be supported in monetary promotion or tax policy.

The uncertainty of local political is one of major obstacle to future and influenced to sustainable development of Phuket’s destination marketing. Different policy of different political parties may lead the development of Phuket and TAT policy support to the plan out of track. This might extremely influent decision of investor at first as well.

Comment on your learning from studying this destination and preparing the project.

Major sources of studying this destination are from internet and secondary data collected by TAT. Phuket is one of most interesting Thai travel destination and in focus of many study therefore information are not so difficult to find. The specific type of data to manipulate is the structure of process in government and it support that needed to counted on the project. Data is complex and hard to exactly verify how to get the real direction of organization under any political control.

Part II

You are requested to draft a NEW strategic plan for the selected case, not to show or analyze the existing one. At least 8 pages

Strategic Tourism Business Plan

Select tourism products (spa)

Do the external environment analysis:

-Society (POlitical, Economic, Technology, Socio-culture, International influence)

-Task (customer, competitor, supplier, workforce, laws and regulation, shareholder)

Do the internal environment analysis:

-Structure, culture, resource (organization structure, business owner, shareholder, board of mgt, org culture, staff, techno and appliances)

Do the product benchmarking with one competitor

Do the product and market positioning: SWOT, segmentation

Set the corporate direction (vision, mission, goal, objective)

Design/suggest tourism business strategies

-(Corporate(growth,stability, retrenchment strategy)/

-Business(promotion mkt, product, priceing, /

-Functional Level Strategies(HRM) )

Six Senses Destination Spas are dedicated to transforming the lifestyle of its guests through a complete immersion into healthy and mindful living. They offer structured and personalized programmes that blend holistic fitness activities, organic fishetarian and raw foods cuisine, wellness education, self-discovery classes, relaxation and renewal. Preventative wellness is a fundamental component, combined with sound nutritional and naturopathic knowledge, which provides guests with the ability to consciously support their health and longevity, overcome and alleviate stress, and live a more healthful life, www.sixsenses.com/Six-Senses-Destination-Spas/index.php.

Six Senses Destination Spas is located in Karon beach where the sand is white and clear view of seaside while slightly people have water activities around because it is danger zone of windy and high level of sea wave.

The goals of the company are first to be profitable and introduce healthy course and program that is effective and create buzz among group of health conscious people which help create spa brand recognition.

Vision

Become leading combination on medical and beauty spa to meet the needs of clients in health and beauty by merging the Thai traditional know-how and modern medical innovation by the year 2015.

Mission

Set new standard of value added spa by blending folk wisdom together with modern science of treatment and science of beauty with professional medical team to increase customer satisfaction. Total solution of healing and treatment will be the top of program that prospects customer looking for not only local customer but also in global market.

Objective

To create a unique Thai spa massage and special therapist for global market.

Report more than 10 million sales revenues by end of first year.

Maintain average 25% of profit after tax after 2 years of operation.

Maintain client return rate not less than 60% at the end of second year.

Become very first choice of destination spa among potential target by end of first year.

External environment analysis

OPPORTONITIES

The distinctive traditional Thai massage and the outstanding Thai hospitality presented through the well-trained therapists

As for the government, it has been doing its utmost in promoting Thai spas. For example, Thailand is scheduled to hold “ISPA Asia Pacific Conference & Exhibitions” in 2006, which, according to Watchara Phannachet, Deputy Minister of Industry, will be beneficial to the economy in general. Moreover, the government has provided training to personnel in the spa industry to enhance the standards of Thai spas. The Thai Spa Association and the Thai Spa Operators Association were set up to bring together all those involved in the local spa industry to steer Thai spas in the same direction, http://www.thaispaassociation.com/

In 2004 the Thai government implemented a policy to develop Thailand into a health service centre. The strategy is to make Thailand the centre for health services in Asia by the year 2010.

With the Thai governments’ promotion of Thailand as the “Healthcare hub of Asia”, and “Tourism Capital of Asia” the future outlook for the Thai tourism industry seems promising. The continuous increasing number of visitors and the growing demand for health related treatments, it is anticipated that Thailand is a potential market for Danish suppliers of equipments, products and accessories for the hotel, spa and health related sectors.

As people decide to change their habits and pursue healthier lifestyles because Higher rates of heart disease, increases in the incidence of cancer, record numbers of clinically obese people, and various other health scares have all drawn attention to the need for healthy lifestyle choices. Additionally, as modern medicine has progressed, doctors and scientists have greatly expanded their knowledge of the human body, exposing many health risks that were previously unknown. One-hundred years ago, doctors touted excessive sun exposure as beneficial, and heroin/cocaine combo sets, complete with syringes and needles, were sold in department stores. It is now common knowledge that too much sun can cause skin cancer, smoking can bring on any number of painful deaths, and eating a bit too much ice cream can pack on the pounds, increasing the risk of diabetes and heart disease.

Last 1-2 years ago, most of spa businesses were open in hotels and resorts. This caused consumers some inconvenience to receive service and services fees of spa located in hotel or resorts are relatively higher than stand alone spa in the similar standard and quality. From premium price of spa in hotel forces those to focus on only hi end segment of customers. Therefore, stand-alone spa business which can offer high quality and charge at medium or medium high can fulfill large demand on the market. There are approximately 40% annual growths from a space of market conditions, most of which are open for not super premium like offering in resort and hotel.

Support from government is also in form of source of funding which easier than in the past and cost of finance is decreasing from the trend of global interest rate.

THREATS

The intense competition in the market, data from 585 spas operating in Thailand state that 51% were day spas and 49% were destination spas co-located with accommodation.

In the first stage of spa operation in Thailand, it is always available in major hotels and resorts but spa business is highly popular among consumers in recent day. Enabling the investors and entrepreneurs to start businesses as stand-alone and this kind of spa are increasing everywhere in Thailand leads to high level of competition.

And substitute of spa products that help relieve stress, or healthy are also abundant. Generally, consumers can find products or services likes a fitness center in office buildings stand-alone or even in retail center, massage services are plentifully available in common commercial building. Other substitute is activities which people can join with no cost likes aerobic, running or bicycling in Public Park. Consumers have many choices in selecting the service by certain activities, those can be done without cost or very cheap to pay and people can access this kind of activity easier than spa in additional.

A newcomer in the spa industry is medical spas. The primary purpose with medical spas is to provide comprehensive and complimentary therapies and treatments. Treatments primarily offered by medical spas are laser surgery, colon therapy, weight control, and various diagnostic packages aimed at analyzing one’s individual health situation.

Problems perceived by the tourists as medical spa may only be using the old science of treating diseases such as Treatment with acupuncture actually, the Spa will not only do that. It is very meaningful medical spas

Investment and operating cost factor, the most recent import figures are collected during 2004, where 80% of the medical and health related equipment was imported. The main suppliers are USA with 40 percent of the total exports, followed by Japan (17 percent), Germany (14 percent) and UK (7 percent). In 2004 the Thai medical equipment market was worth approximately USD 371 million (Baht 14,270 million or DKK 2,261 billion). With positive expectations for the healthcare sector it can only be assumed that the value of the equipment market increases considerably in the future.

Bargaining power of suppliers of products used in spa services is also rather high. Products such as heat and bowl system Jacuzzi sauna and steam room are mainly component in spa business but this group of products is needed to supply from international vendor then import through few local distributors. So this problem can flatten choice of quality product for a small business operator or new comer, http://www.wikinvest.com/concept/Health_%26_Wellness

Internal factors analysis

STRENGTHS

Results-orientated approach is the way Six Senses Destination Spas proved to customer. After customers experience our program, they trend to invite friends or relatives to try too. This is the way to sustaining existing customers and attracting new customer to the business.

A well-researched of each Thai traditional program to make sure the benefit and avoid negative affect possibly happened to customers. This to prevent unexpected negative result and also enhance product development dimension of Six Senses Destination Spas, long-term focusing.

Experiences and good attitudes of staffs recruited is crucial, not only giving intensive training to new staffs and periodically training to update existing staffs for long term development but also looking for new staffs who are ready with experiences and attitudes toward spa services.

WEAKNESSES

High operation cost associated with spa components, equipment maintenance and payroll which reflect capability of both operation staffs and medical staffs. However, Six Senses Destination Spas can’t avoid these kinds of cost because it will keep the business on top among other spa operators in the industry.

The capability to services in limited volume of customers. As the need of highly trained staff and specific equipments, limitation to number of services offering daily may not flexible enough if demand of Six Senses Destination Spas increase too quickly.

Limited area coverage. As planned to locate on Karon beach area, coverage area of business that customers may looking for accommodation or resort around our place as well.

Product benchmarking with major competitor

The main competitor who is offering luxurious range of beauty and health spa service in our sight is “Let’s Relax Spa”.

Let’s Relax day spa was established year 1998 in Chiang Mai City. As we continue our excellent services, our valued clients tremendously spread the news of our exceptional services of our professional therapists. Therefore, as part of our gratitude, we make it a point to grow each day to serve you better and to suit your every need from treatments to branches. Let’s Relax now has 6 day spas conveniently located throughout the kingdom, Chiang Mai, Pattaya, Phuket and Bangkok. www.letsrelaxspa.com/index.php?p=aboutus

Strengths of the above services are offered: the proximity of the service of luxurious spa chain, prime location (Bangkok, Chiangmai, Pataya and Phuket) and name recognition. The weaknesses of these competitors are the general lack of promotion and penetration in international market.

Our competitive advantage is wide open, and gives us the opportunity to service a large population that is not currently well served. When you include our service works energy.

Competitive Profile Matrix (CPM) to reveal the competitive dimension of Six Senses and Let’s Relax

Product and market positioning

Six Senses Destination Spas will automatically position itself as one of the best health spa in Phuket and Thailand southern area as well as among global spa arena. Bearing in mind that none of the other competitors can offer exact range of services we will, or that their staffs can be capable and trained like ours, and there are no health salons of our kind in the area, we will be able to provide services to some of Phuket population are not being exploited.

There are no exact competitors, and some nearby competitors in Phuket and its perimeter. Six Senses Destination Spas also have corporate due with premium travel agency and higher grade credit card issuer.

Market Segmentation

Our target market will be divided by beauty spa and health spa. Beauty spa customers will be all ages and sexes, since health spa is relatively associated with specific group of customer especially elders. We anticipate that the beauty spa salon will also affect health salon happen in the same way. Thusly, our target market segments will be male and female professionals and retirees, age from 28 years, with individual incomes above THB 60,000 or household income above THB 200,000.

Design/suggest tourism business strategies

Business and marketing strategy

Main strategies

1. Focusing on brand awareness by using advertising.

2. Facilitate customers to access our place by building network and transportation from major location in Phuket.

3. Building community relationships and word of mouth through the unique service and quality, friendly and supportive, and to establish the absolute reliability of our services.

Promotion Strategies

Our promotion strategy has two components

Promotion of the first phase will focus on advertising, during and six months after our opening.

Advertising in second phase will focus on all integrated communication and advertising in the long term and maintain awareness of brand and keep feel of top health spa in one of the best destination of the world.

First phase

Advertisement

We will use local newspapers, local radio and magazines of social health, local, local television, mailings to all households in the immediate five mile radius, and mailings to all local affairs to premium wellness database.

Internet

Selective with related content website and our alliances will be used to penetrate international target customers.

Alliances

Services profile of Six Senses Destination Spas will be placed on our alliances resort hotel and hospital. Some real premium travel agency will be offered with our privileged services to its customers.

Second phase

Advertisement

We will continue to place advertisements in local social and health magazines this year. Mail-outs will be done again to both our customers and follow database a year later after the opening. Radio and television will be when we have special sales in the most stressful times of the year. Television ads are not certain, we will evaluate effectiveness before implementing other case by case.

Internet

We will continue to have a comprehensive website. After six months, and certainly after the first year, we will evaluate the viability of having the target clients of advertising on our site, and vice versa, we will evaluate the viability of advertising on the target customers of our websites (if applicable).

Social network such as facebook and twitter will be implemented after a year or when we have build customers base to create connectivity among experienced customers and this might form and spread out our reputation of services to the network easier.

Alliances

This type of advertising will be done as soon as we have grown beyond our threshold of profitability. We will also form alliances with an advertising company with whom we share common business objectives. We will also implement mutual benefits with our neighbors and restaurant business that will contribute to the local visibility. Advertising promotions with some restaurants will also be discussed.