Sandals Resorts' marketing mix strategy for couples vacations

Sandals Resorts

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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 and tipping is simply not allowed, you will not need any cash while on property" (FAQs, 2012, Sandals). 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.

Placement

Other, competitor resorts such as Club Med within the package resort destination market may offer more amenities and activities -- but most also allow children on-premises. Sandals 'places' itself solely as a romantic-oriented resort within the marketplace. The focus on the beauty of the water, the suites, and the dining, along with various romantic aspects of the resort spanning from its 'themed' weddings to wedding groups also suggest a focus on either the female consumer or the male consumer specifically buying a vacation package for a female partner. Although couples may purchase romantic vacations together, usually the woman is the determining factor in much of wedding planning, given the importance of a wedding in the life of a woman. Sandals thus caters in its orientation towards women or the idea of pleasing women, versus resorts which are kid-friendly or offer many sporting and outdoors activities. In Sandals literature, few people are shown actively enjoying the outdoors -- rather they are shown holding hands and dining in romantic alcoves.

Sandals stresses the 'decorative' and 'customized' aspect of its experience, despite the ostensibly generic format of resort 'packaging.' For example, couples using Sandals as a wedding destination can select from pre-designed themes or create their own theme for the wedding. Customization or ease in wedding planning can be obtained at a lower price than assembling it together on one's own. Obviously, a destination wedding is hardly a 'budget' item, and the ability to pay for even a reasonable destination wedding signifies that the couple has attained a certain degree of financial stability. But the fact that they are purchasing a wedding package, and not, for example, hiring a wedding planner or staging a wedding in an exotic, high-cost, high-status location indicates that money is still a consideration for the demographic.

The positioning of Sandals could thus best be described as aspirational in nature. It is for couples who aspire to the lifestyles of the upper class, but do not yet have the financial means to truly create a wedding that costs in excess of tens of thousands of dollars and requires long months of full-time planning. However, for wealthier customers, or couples who are older and planning second weddings and romantic getaways, Sandals Resorts offers more luxury-style accommodations. There are, for example, so-called 'Love Nest Luxury Suites.' "So romantic, so exotic and nestled in the most beautiful settings, we had to name them "Love Nests." Defined by exclusive amenities and unique designs for heavenly seclusion, these luxury suites and villas in the Caribbean create the ultimate escape for love birds" (Luxury Suites, 2012, Sandals).

Promotion

The middle-market demographic of much of Sandals positioning is also emphasized in the way that it uses price to promote its offerings, not simply the amenities of the location. Discounts on deals are advertised prominently in every section of its website. In its promotional strategy, the website itself is clearly an important selling tool for Sandals. More and more consumers are going online to research pricing for vacations and weddings, versus booking them through agents. The direct-to-consumer model focused on using low prices with a high-class image to promote the product is at the core of Sandals' strategy.