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Marketing Mix: Sandals Resort

Overview of company

Sandals Resorts is a brand-name series of chain resorts, most of which are located in the Caribbean. The target demographic for the resort is primarily established couples. Sandals seeks to showcase romantic yet affordable destinations for vacationers on honeymoons, weddings, and 'second' weddings. Segmentation variables include that of price and also purpose of the trip -- some individuals may want a quiet getaway, while others use Sandals to engage in major event planning, such as those orchestrating 'destination' weddings. The purpose of this report is to show how Sandals uses product, price, placement, and positioning to effectively segment the market of its target demographic of couples and sustain brand interest in the competitive resort marketplace.

Sandals Resorts was founded as a private company in 1981. It has 1,500 employees and its sales are estimated at $600 million (Sandals, 2012, Funding Universe). Sandals Resorts is part of the Sandals Resorts International parent company which also includes Beaches, Grand Pineapple Beach Resorts, Fowl Cay Resorts, and Private Villas. Sandals is specifically advertised as offering luxury couples vacations, versus the other parent company resorts advertised as being 'for everyone' (Beaches), for discount vacationers (Pineapple), and the more luxurious Fowl Cay and Private Villas for high-end travelers.

Product

Sandals Resorts focuses on a relatively narrow range of destinations in the Caribbean, versus some of its competitors, presumably to keep prices low. Resort deals are offered as 'packages,' including meals, activities, as well as accommodations. As well as value and advertised luxury, the resort thus offers relatively 'low stress' vacation planning. Sandals even notes, regarding purchasing: "Since everything is included...

The consumer does not have to spend a great deal of time researching deals or the destination, and can simply book through Sandals, relax and enjoy. To further cement the 'product' orientation as couples-themed, Sandals also notes: "Because we wanted to make your vacation as romantic and relaxing as possible, only couples may stay at Sandals. But we open our arms to welcome singles, friends, and families to our fabulous Beaches Resorts" (FAQs, 2012, Sandals).
This distinguishes Sandals vs. its competitors because couples can be assured that they will not be bothered by small children and others who might disturb their intimate experience. It also brands Sandals as an adult location, versus other resorts that focus on fitness or other aspects of the vacation market. When a couple books a vacation through Sandals, it can be assured that the experience will be a romantic one.

Price

Sandals Resorts labels itself a luxury resort, but it is not truly located in the 'high' luxury marketplace. It uses deals and structured pricing (such as offering discounts on off season resort package purchases) to encourage consumers to buy its services and products. Its website advertises with the slogan "hurry, only one day left" with a ticking time clock to encourage web-surfers to take advantage of one-day deals. Even within the Sandals family of resorts, it is not the cheapest resort, although it is not strictly a 'budget' vacation in the sense that it is as cheap as a day or two getaway at a stateside motel. However, the relatively modest Caribbean location and the prominence of pricing in the Sandals advertising clearly marks the importance of price as a 'selling point' for Sandals, despite the repeated use of the word 'luxury' in its promotional materials. Sandals is selling an image and an idea of luxury, more than what would be considered 'true' luxury itself.

For most of its vacation packages, Sandals Resorts aspires to offer couples good value upon their purchase of a getaway,…