The Shilla Jeju Hotel _ 1

-The five-star Shilla Jeju Hotel (SJH) was opened in July 1st, 1990

- Shilla Jeju Hotel is the first resort hotel with the European style construction and pastel interior in Korea

- The hotel is located on the visible costal cliff of the fantastic Pacific Ocean view

- The hotel is located nearby the Jung moon Golf Club(18halls), Yeomiji Botanical Garden, Pacific land, Daeyoo land , Cheonjiyeon Falls, horse racing track , Teddy bear museum

2003’ no.1 The Best Resort Hotel in Korea By Leisure magazine ‘Weekly Friday’

The Shilla Jeju Hotel _ 2

2001’ 2003’2002’

Market Share (2001-2003)

Shilla Jeju Hotel

Lotte Jeju Hotel

Etc…

34.6%

29.4%

33.5%

34%

30.5%

35.3%

34.2%32.5%36%

by _ Shilla Jeju Hotel

Since 2002, the Shilla Jeju Hotel (SJH) has been suffering their share of the market with the Lotte Jeju Hotel (LJH), due to the fact LJH has better and more modern facilities. Recently, SJH suffered another minor setback when the filming site of the SBS drama ‘all-in’ was shot at the LJH, as the drama soared in popularity the hotel became a favorite tourist attraction.

Therefore, SJH’s Market share is decreasing

So, what is the wayShilla Jeju Hotel (SJH) should go for?

The numbers of Jeju island visitors (1999-2003)

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

1999' 2000' 2001' 2002' 2003'

Total

Domestic Tourist

Foregn Tourist

by _ Jeju Island Tourism Association

About Jeju _ 1

Year 2003Total number of Jeju island visitors

is 8.8% Increased compare to last year4,913,390

Problems due to SARS affected the foreign tour markets and increased the demand for the domestic tour market. A convention center was opened, number of lodges increased, a tour infrastructure was established, and a five days a week working system created bigger domestic tour markets.

However, the war in Iraq, SARS in Asia affected adversely to Jeju island's tourism. Despite these events Taiwan’s chartered flight line operated thereby increasing the number of Taiwanese tourists. The number of Chinese and Japanese tourists have recovered to previous years since last September.

About Jeju _ 2

Reasons of tour

Some findings provided by the Jeju Island Tourism Association include:

Eight out of ten tourists visiting Jeju resorts come for leisure sports and other various recreations.

January 2003 group tour = 25.8% ; Individual tour = 74.2%February 2003 group tour = 17.9% ; Individual tours = 82.1% respectively

2003 Feb. Halla-ilbo

Leisure sports and recreation remain the foremost popular activities for tourists traveling to Jeju island.

Therefore, the Shilla Jeju Hotel needs something to change

its image as a resort hotel.

s w

to

SWOT Analysis

Brand popularity in Korea.Parent corporation’s strong management.Variety packages.Greatest Service.Advantageous location for resort hotel.Opening of world class Spas.

Drawbacks due to higher prices.

The setting of PATA headquarters.Building the national conventional centre of Jeju which led to increases in its customer base. Increases in the people looking for resorts. Increase in SPA interests.

Competition with Lotte and Hyatt.Lack of international popularity.Decrease in foreign tourism due to bird flu.

So what’s the something?

Spa!

SOT Strategy- Strong points along with opportunity points covers the weak points Using the Guerlian Spa which opens Feb 2004 to grab the people looking for resorts. Early advantages can be gained within the international markets.

Why is spa?

The Ritz-Carlton Bali Resort & Spa provides 5-star accommodation and extensive facilities to guests. The 4-storey building is overlooking the Indian Ocean and rests on neatly sculptured garden of tropical flora, terraced lily ponds, fountains and waterfalls.

Four Seasons Resort Bali at Jimbaran Bay Ritz-Carlton, Bali Resort & Spa

With a great beach, beautiful gardens and fishing village style, designed around paved streets, this resort of villas wins on impeccable service and lavish facilities.

Address Jimbaran Denpasar Bali Indonesia

Address Jalan Karang Mas Sejahtera Jimbaran Bali Indonesia

Rooms 147 villas

Rooms48 villas

Packages Jimbaran Spa Package Bed and Breakfast Standard Rates Ocean and River Package Romance in Bali Discover the Refined Art of Asian Cuisine Two-Bedroom Villa Offer Four Seasons Private Estates

Packages Bali Blue Sky Promotion Bali Paradise Package Romantic EscapadesCouples Package Body Treatment Packages Thalasso Packages _ Whole year period

Spa Specialties and Unique Treatments Body Treatments Skin-care Treatments Salon Services

Spa Treatment Name Treatment Duration Treatment Cost Treatment Long or Short Description

Best Service: Asia

1) Amandari, Bali2) Ritz-Carlton Bali Resort & Spa3) Four Seasons Resort Bali at Jimbaran Bay4) The Oriental, Bangkok5) The Peninsula, Hong

2003 TOP HOTEL SPAS: REST OF THE WORLD 1) Four Seasons Resort Bali at Jimbaran Bay 2) The Oriental, Bangkok 3) Spa at Regent Chiang Mai Resort, Thailand 4) Ritz-Carlton, Bali Resort & Spa 5) Four Seasons Hotel George V, Paris

by _ Travel & Leisureby _ Travel & Leisure

Top Ranked hotels in Asia offers Spa services.Therefore, the Spa services becomes a critical element in any hotel services.

Spa is..

As the “well-being” types increases, the people within the Spa community have high hopes for the success of the Spa industry. One Spa manager comments that “ Spas provide a balance and security for the body and mind, and is an important part of a healthy well being.

ECONOMISTThe business companies related to the “well-being” concept are booming with opportunities, companies providing art, yoga, spas, leisure and health care are growing at a phenomenal rate. Hotels and Restaurants offers “well-being” packages as well as information fairs on “well-being” food and other products.

2003 Dec HANYURAE Even the showing aspect is different under the “well-being” concept, it is no longer only about the need to clean up residual dirt. The bath and shower experience within the well-being concept provide a respite from stress and tiredness, it also helps improve against depression attitudes. Well being customers seek professional spa centers and are willing to pay exorbitant prices to receive the utmost services. 2002 Dec. The Seoul Economic Daily

Who is the target?

Spa is in the center of Well-being lifeMost of people who enjoy Spa are Well-Being customers

- So, the target should be the biggest spa customers which are ‘well-being’ people.

News articles analysis

Target

Well-Being?- Peace of body and mind can be achieved by escaping urban environmental pollution and the busy life of a modern citizen.

- Consuming natural vegetables and products over fast foods for a better healthier self.

- Discovering the joy of cultural events along with various leisure sports activities.

- Health and recreational centre as a stress release activity instead of social alcohol gatherings.

- Abundance of the wealthy and business class.

- The pleasures of Spa massage or foot massage.

Enjoy Well-Being Rest Well-Being

Well-Being‘Well-Being’ types

Target

Upper class are more critical of service quality and demand the utmost treatment.

Business travelers visiting due to work will demand peace and relaxation.

So, our targets are:

30 to 50 years old from the south east Asian hubs like

Honk Kong, Shanghai, Singapore are the Well-Being types.

Target selection base_ 1

by _ Korea National Tourism Organization

The european and asian tourists objectives are different.

Europeans travel mostly for various historical landmarks. As opposed to the Asian traveler

who seeks travel for rest and leisure sports.

The south asian countries that were adversely affected by the financial crisis of 97’ are finally excelling towards the road to recovery. John S. a columnist with the Financial Times commented that the various investors who fled the asian market during its crisis are finally coming back. Despite the american recessionary cycle, the persistent growth of the asian market was an important factor according to John S. Among these markets. Hong Kong, Shanghai, Singapore remains the south asian hubs and many business projects are achieved there. We can predict that the big 3 markets of Hong Kong, Shanghai, and Singapore will maintain excellent economic growth.

2003 Oct. Maeil Business Newspaper

Hong Kong, Shanghai and Singapore are the hub of Asian tourism.

We can deduce that the “Well-being” concept has more potential with the S.E. Asian market due to the fact Hong Kong, Shanghai, and Singapore are the centre of Asian trade and economic growth.

Target selection base_ 2

How do we attack the target?

The Target needs more information about

Shilla Jeju Hotel Spa - Shilla Jeju Hotel Spa will be opened Spa in February 2004.

Therefore through these three steps,

We will inform people about Shilla Jeju Hotel’s great spa service.

First Second ThirdRecognition Activatio

nMessage diffusions and recall

The promotion will be advertised so that people will be aware of the spa packages of Shilla Jeju Hotel to encourage their patronage and encourage return.

This step’s aim is to make people who are interested in Shilla Jeju Hotel spa book the services offered themselves.

Make brand loyalty higher with the mileage and discount system to the Shilla Jeju Hotel’s customers.

Spa in Shilla!

Communication Concept

So, what is our concept?

First stepRecognition

The promotion will be advertised so that people will be aware of the spa packages of Shilla Jeju Hotel to encourage their patronage and encourage return.

*high-demand season _(1-2, 7-8,11-12) packages for the ‘Well-Being’ customers who goes for REST.*Low-demand season_ (3-4, 5-6, 9-10) Enjoy the special service for Well-Being costumers

Spa Packages

The Shilla Jeju Hotel will provide different packages every two months due to Jeju island’s conditions.

Blooming

spa3-4

7-8

11-12

5-6

9-10

1-2

One summer night

Family affair

Like a fish

Fall in love

Refresh package

Spa Packages with the fragrance of flower brassica campestris

This summer package offers party at night held at a banquet hall with a view to the ocean.

This package provide special services were the tourist and his family will be taken to the best place to watch the sunrise. *the package is only offered to more than three persons per family

tourists can get involved in jejo island's silver fish festival, scuba dive, have pilates lessons and our spa packages provide a seafood dinner

This lovely couple package lets tourists walk the Eulalie flower track and experience the rich culture Korea has to offer

In the first month of new year, this package will be a reconstituent for tourists

Media Tactics

- For the foreign market, media has to be worldwide.

- To be successful, we should use a media that is both popular and low in advertisement.

- Well-being is our main target so we classify our subscribers.

Media conditions

Therefore we are going to place our advertisements

in magazines and internet web sites.

In-airplane magazine: * Morning-Calm (Korean Air Lines), Asiana (Asiana airlines)

Regular magazine: * Travel Magazines - Travel & Leisure, Business Traveler, National Geographic

* Well-being type magazines - Allure, Cosmopolitan

* News magazines - Times, News Week

Media Analysis

Magazine- Classify the magazine types into in-airplane magazine and regular magazine.

Web - Classify web sites into travel information sites.

Travel: * Hotel linked Site - www.asiahotels.com

* Travel Agency - www.asiatravel.com

* Airlines website - air.onetravel.com

Second stepActivation

This step’s aim is to make people who are interested in Shilla Jeju Hotel spa book the services offered themselves.

Service Reserve

Making contracts with Internet online hotel reservation sitesso therefore it will be easier to use Shilla Jeju hotel’s service.

Web sites - The web sites that are famous for online hotel reservations.

* www.easynetreservation.com

* www.travelocity.com

* www.hotelstravel.com

Third stepMessage

diffusions and recall

Make brand loyalty higher with the mileage and discount system to the Shilla Jeju Hotel’s customers.

Higher Brand Loyalty

Synergy marketing with Singapore, China Eastern Airlines and other airline corporations and ‘Customer Relationship Marketing’ strategy to get more costumers and higher brand loyalty. instances) * Airline mileage saving systems.

* Discounts spa package price for each airline mileage members.

* in-airplane magazine advertisings

An aerial navigator - KAL, Asiana, Cathy Pacific and etc.

Relation with parent corporation ‘Samsung’- Medical Clinics, Art galleries.

Provides variety services for 'we-being' costumers to satisfy theirhealth carers, cultural and other high level lifestyle desires by

parents corporation Samsung group.

Instance) * Samsung clinic discounts

* Hoam Gellery Free ticket

Our promotion will succeed by reminding

our target market of the ‘Spa in Shilla’

they will always receive at Shilla Jeju Hotel’s Guerlian Spa.