Question 1

Conducting a SWOT analysis is crucial for strategic planning and decision-making in the realm of business and organizational development. Identify strong and weak points as well as opportunities and threats. Include three(3) strengths, two (2) weaknesses, two (2) opportunitiesand three (3) threats relevant to Annexure A. [10]

Question 2
The service marketing mix is essential for businesses to effectively market and manage services in a competitive environment.Analyse the service marketing mix of The Palace of The Lost City. In your analysis of the service marketing mix provide practical examples from the case study in Annexure A. [21]

Question 3

Distinguish between five (5) main characteristics of a service. Consider a tourist who will use The Palace of The Lost City for accommodation purposes and provide a practical example with each characteristic. [10]

Question 4

You have recently graduated from Tshwane University of Technology for a National Diploma in Marketing and landed yourself an internship at The Palace of the Lost City. The Palace marketing manager requires your help in increasing accommodation bookings/sales and promoting the Sun International brand using digital marketing activities; however, he does not know much about digital marketing.

4.1. Explain what digital marketing is to The Palace’s marketing manager. (1)

4.2. Suggest and discuss any four (4) types of digital marketing activities that The Palace of the Lost City can use to promote its brand. Provide a practical example with each suggested type of digital marketing activity to motivate your answers. (8)

Read the following case study and answer the questions that follow.
The Palace of The Lost City

Emanuel Nkosi was reading a travel magazine while waiting to see the dentist. He had been wondering how he could surprise his wife for their 10th wedding anniversary for some time, when he saw an advertisement for a holiday for two at The Palace of the Lost City. It offered a 10-day stay and savings of 10%. Emanuel, a businessman from Eastern Cape, thought it would be the ideal celebration and treat for his wife.

One of the top 5-star hotels in South Africa and the crown jewel of The Sunlux Collection of Sun International, The Palace of the Lost City stands sentinel over the wild landscapes of the Pilanesberg Nature Reserve at Sun City. This is where guests are invited to marvel at the spectacle of nature while discovering the lost world of a mythical civilization.

Built in an extinct volcanic crater, The Palace of the Lost City has enthralled and amazed visitors from across the globe for years. The embodiment of jaw-dropping splendour, it’s easy to see why it’s one of the Leading Hotels of the World. Emanuel decided to take a photo of the ad for later reference.

The advertisement invited him to discover the Big 5 at malaria-free Pilanesberg National Park on a game drive, or float above it in a hot air balloon, make some time for himself and enjoy a massage at the Royal Spa; dine like royalty in The King’s Tower – the highest point in Sun City Resort; or tee-off on the Gary Player-designed golf course, one of the top-rated courses in South Africa.

When he finally got back home and settled in his study that evening, Emanuel decided to look up “The Palace” on TripAdvisor. There were 1 469 reviews of which 523 were excellent and 41 terrible. He decided to have a closer look at the terrible reviews. One read: “I stayed from 12 May to 15 May. Very good hotel but room service and housekeeping are pathetic. Minimum 10 times we have to call and wait for 4-5 hours. Very poor service and a bad experience. Rooms were outdated regarding décor and design, and have not been taken care of. We booked a family room and they have charged in full but gave normal room and let the child sleep on the sofa. They have a good name but the service is very poor”.

Emanuel decided that 523 people could not be wrong and proceeded to visit the hotel website for more information. He noticed all the digital marketing icons on the website and decided to check these out. On YouTube he found a full-length advertisement on The Palace as well as the now familiar uploaded video made by the well-known actor and Hollywood star Arnold Schwarzenegger being chased by elephants. He decided to follow the hotel on Twitter and Facebook. He decided to skip Google+, Flickr and Pinterest and review these later.

He browsed the site and found that there were different rooms at different prices from which he could choose: The African Suite at R43 677 (per person per night), where many famous personalities have experienced the luxury of the Palace of the Lost City. The King Suite at R43 677 is fit for a king, with its own butler. The Royal Suite at R31 452 The Superior Suite at R10 238 and The Accessible room from R4 577. (All these prices included a full buffet breakfast) From pictures on the website, it seems all rooms were beautifully decorated.

After navigating the website, he knew he had the option of either booking through a traditional travel agency such as Alivia’s Travel, Flight Centre or he could use an online travel service such as Travelstart or TripAdvisor.He decided to book directly on the hotel website. The online reservations service of the hotel was very user-friendly and consisted of five steps: Step 1 Search, Step 2 Rooms and rates, Step 3 Guest information, Step 4 Review and payment and Step 5 Thank You.

Three months later Emanuel and his wife stood at the entrance hall of “The Palace”, as it is called. The hall sets the precedent for this sophisticated hotel, with its high, intricately painted ceilings, mosaic artworks, and golden zebra-hide upholstered furniture. The fantasy world was awe inspiring.

The friendly lady at the check-in desk who welcomed them was super-efficient and had their reservations and room cards printed and ready upon arrival. She issued them each with a door key. She reminded them that at The Palace check in is at 14h00 every day and check out is at 10h00. A porter dressed in a special uniform and nametag was ready with a golden palm leaf trolley to wheel the luggage to their room. He told Emanuel that The Palace is frequented by international tourists, families, big corporates (for congresses, conferences, exhibitions and other events) as well as private individuals. There was a big international medical congress going on in the conference centre.

The room was beautifully decorated. Emanuel and his wife were very impressed with the long list of services available to them and the room features.

While Emanuel was waiting for his wife to unpack, he read a new report on the South African hotel market. The industry is experiencing growth due to the weak Rand. Foreign guests are taking advantage of the situation and see it as an affordable luxurious option to come to a local 5-star hotel, rather than staying in tourist class accommodation in other European or American destinations. The drought has increased food costs and water shortages and lead to rationing in many areas. Eskom’s power supply and load shedding had a negative impact on the economy in general. Global hotel chain groups are entering the local market with Marriot International Inc. commissioning 2 brand new properties in South Africa. In October 2015, restrictions imposed by the government on visa applications (biometric information and children under 18 providing unabridged birth certificates) were eased. This and other factors will lead to increased numbers of tourists from China, the UK, Germany and the USA. The President announced further investment in the tourist industry in early 2016. South Africa’s economy is weakening however, and domestic travel is projected to decline in 2016.

Answers to Above Questions on Case Study

Answer 1: An analysis of the given case study on the palace of the Lost City indicates about its strength and weaknesses, and they are analysed using SWOT analysis as follows:
1) Strength: The given case study indicates that the main strength of the palace of the Lost City is its reputation of being the leading hotels in the world. The unique location of the hotel along with its luxurious offering are its brand reputation that becomes its core strength. Its efficient customer service is another important strength along with the inclusion of diversity and attraction as another important strength point.

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