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Case
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Reference no. 503-050-1
Subject category: Marketing
Authors: Gregory Osland (Butler University); Daniel McQuiston (Butler University); R Mackoy (Butler University)
Published in: 2003

Abstract

Ms Verena Gerber, a Swiss-Mexican, entered the growing ecotourism industry by developing a resort on a remote part of the Yucatan Peninsula of Mexico. After five years of operations, the resort, Eco Paraiso, has yet to break even. The initial marketing strategy of focusing on wealthy Europeans who would enjoy vacationing in nature has not proven to be successful, and so developing additional, viable target markets becomes an important issue to explore. Once the management team at Eco Paraiso determines who the main target audiences are, they need to develop appropriate positioning strategies, product/service offerings, and marketing communications elements. Management needs to make these changes while balancing multiple goals relating to the ideals of ecotourism and financial solvency. The case is designed to accomplish the following objectives: (1) to introduce/expand the knowledge base of the concept of ecotourism, including the difficulties and challenges facing those trying to compete in the ecotourism market; (2) to illustrate the challenges and difficulties of designing and implementing a viable marketing segmentation strategy that will appeal to groups with varied interests and nationalities; (3) to illustrate the process of market positioning and determining the proper marketing mix for a service-orientated organisation; (4) to allow students to determine the effectiveness of various promotions; and (5) to illustrate the difficulty of balancing corporate goals. For Eco Paraiso, Ms Gerber faces the difficulties of balancing a philosophy of environmental consciousness with providing the right marketing to make Eco Paraiso financially viable. This case was sponsored by the Indiana University CIBER Case Collection.
Location:
Industry:
Size:
USD200 thousand pa, USD2.5 million investment
Other setting(s):
2001 (1997-2001)

About

Abstract

Ms Verena Gerber, a Swiss-Mexican, entered the growing ecotourism industry by developing a resort on a remote part of the Yucatan Peninsula of Mexico. After five years of operations, the resort, Eco Paraiso, has yet to break even. The initial marketing strategy of focusing on wealthy Europeans who would enjoy vacationing in nature has not proven to be successful, and so developing additional, viable target markets becomes an important issue to explore. Once the management team at Eco Paraiso determines who the main target audiences are, they need to develop appropriate positioning strategies, product/service offerings, and marketing communications elements. Management needs to make these changes while balancing multiple goals relating to the ideals of ecotourism and financial solvency. The case is designed to accomplish the following objectives: (1) to introduce/expand the knowledge base of the concept of ecotourism, including the difficulties and challenges facing those trying to compete in the ecotourism market; (2) to illustrate the challenges and difficulties of designing and implementing a viable marketing segmentation strategy that will appeal to groups with varied interests and nationalities; (3) to illustrate the process of market positioning and determining the proper marketing mix for a service-orientated organisation; (4) to allow students to determine the effectiveness of various promotions; and (5) to illustrate the difficulty of balancing corporate goals. For Eco Paraiso, Ms Gerber faces the difficulties of balancing a philosophy of environmental consciousness with providing the right marketing to make Eco Paraiso financially viable. This case was sponsored by the Indiana University CIBER Case Collection.

Settings

Location:
Industry:
Size:
USD200 thousand pa, USD2.5 million investment
Other setting(s):
2001 (1997-2001)

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