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Market Value Analysis of Luxury Lodge

Paper Type: Free Assignment Study Level: University / Undergraduate
Wordcount: 4472 words Published: 20th Oct 2020

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Executive Summary

Luxury travellers are important for New Zealand’s economy because they have the potential to spend more in a day compared to an average tourist during their entire stay. Lakestone Lodge is one of the luxury tourism providers in New Zealand and located at Lake Pukaki shores in the heart of Mackenzie Basin and owned by married couple Anna and Mike Bacchus. Furthermore, both are delighted to share their amazing experiences and knowledge with travellers all over the world (Lakestone Lodge, 2019).

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This will study will discuss the market environment analysis of Lakestone Lodge by analysing their strengths, weaknesses, opportunities and threats. Primarily, strengths include social media engagement and effective campaign strategy. Nonetheless, they must deliberate their weak points like insufficient interactive content and low driven focus on target market segments. In addition, external factors reveal opportunities for Lakestone Lodge to reach out through media influencer content and effective digital marketing campaign. Lastly, dominating presence of competitors in social media and impact of economic new factors in relationship to advertising costs are some of their threats (Lakestone Lodge, 2019).

Furthermore, opting for United Kingdom as the priority target market since it is the fourth largest international visitor in New Zealand specifically market sectors such as independent professionals and baby boomers (100% Pure New Zealand, 2018). Hence, analysing and comparing the cultural variability of both New Zealand and United Kingdom in relationship to Geert Hofstede’s cultural dimension. Undoubtly both countries are similar from power distance, individualism, masculinity, uncertainty avoidance, long term orientation and indulgence (Hofstede Insights, 2019).

In addition, proposing a marketing communication strategy for the consumer decision making process of United Kingdom market segment including problem recognition, information research, evaluation of alternatives and post purchase. Lastly, the importance of Tiaki Promise Five Guiding Principles pledging to care for New Zealand and everyone who lives and travels here should preserve and protect the Tiaki Promise by being commitment (100% Pure New Zealand, 2019).

Section 1: Market Value Analysis

Brief Background of Lakestone Lodge

Luxury Lodges of New Zealand are a select group of global award-winning all-inclusive accommodation style institution that offers exceptional hospitality, unique experience and outstanding landscape that offers the beautiful environment of New Zealand (Luxury Lodges of New Zealand, 2017). Situated in a spectacular location on the shores of Lake Pukaki, Lakestone Lodge is built with off the grid six-bedroom luxury lodge that has some of the most stunning views in Mackenzie Basin on South Island (Lakestone Lodge, 2019). Excited to be able to share what they believe is a remarkable slice of New Zealand, Mike Bacchus a geologist and wife Anna spent the last seven years of living overseas which inspired them to meet new people, explore different cultures and discover diverse natural wonders gave them an extensive understanding of the tourism and hospitality industry (Lakestone Lodge, 2019).

Moreover, their vision, mission and values cycled through many experiences from different countries and some incredible learnings. For instance, they are very keen to share their knowledge and perception with travellers to this precious part of New Zealand (Lakestone Lodge, 2019). In addition, guests will find a six luxurious and stylishly designed sustainable living which includes ensuite rooms that contains separate shower and nestled under the window is a luxurious bathtub which enables guests to soak while enjoying the view. Also, Lakestone Lodge provides an abundant opportunity to enjoy locally produced food including venison, lamb, fresh salmon, preserves, cheese and more. As well as selection of craft breweries and fanciful local wineries for guests to enjoy (Lakestone Lodge, 2019).

Designed to enhance accommodation experience, they offer a wide range of facilities which include grounds surrounding two acres of planted native New Zealand shrubs and trees. They have created a pathway for guests to enjoy a stroll around the grounds and down the lakefront and providing a convenient access to the playground of spectacular mountains through their own heli-pad and exploring the area through complimentary use of bicycles (Lakestone Lodge, 2019). Lastly, they offer a small private Night Sky Experience maximum of eight lodge guests at a time. A 10 minutes’ walk to a secret spot where the only other light visible to oversee the stars from above and if you’re lucky you might also overlook the Southern Cross, Milky Way and satellites passing  overhead through your naked eye (Lakestone Lodge, 2019).

SWOT Analysis


Social Media Engagement: Lakestone Lodge established to create a presence in some of the popular social media channels like Facebook, Instagram and TripAdvisor New Zealand. In addition, they also maximize the use of blogs that offer sneak peeks into what it takes to build an off-the-grid boutique lodge in an extreme yet beautiful environment (Lakestone Lodge, 2019). For instance, TripAdvisor gave them a Certificate of Excellence for earning great reviews from travellers in relationship to their scenic location, cleanliness, customer service and business philosophy. Also, a timely update on their Facebook and Instagram page earned them 2,315 followers, 2,286 likes and an outstanding 4.9 out of 5 recommendation from international and domestic travellers (Lakestone Lodge Facebook, 2019)

Effective campaign strategy: Lakestone Lodge use emotional appeal relying on campaign advertising for special packages and most of their campaigns are closely linked to distinctive features and luxury amenities of the lodge. In addition, guests will escape from loneliness and experience closeness to nature. A beautiful setting for small intimate weddings and receptions, offering an exceptional event management service. Furthermore, the lodge promotes outdoor playgrounds and discovery of the local attractions like hiking to Pukaki Kettlehole Track, scenic helicopter flight around Mount Cook and variety of tour options based in Twizel reliving the magic of the Lord of the Rings movies (Lakestone Lodge, 2019).


Insufficient creation and creativeness of interactive content: Interactive content is the best way to educate and engage customers more than just reading and watching. In line with this the bar is set high for modern digital marketers even with supreme budgets and resources, execution of interactive content can be challenging (SnapApp, 2019). Hence, Lakestone Lodge has an insufficient interactive and visual content that would engage not only existing but also potentials customers. In addition, they have limited social media platform that showcases their visual content, interactive videos and brand exposure. They need to expand their content to attract and educate more people who might become future advocates (Kamo, 2019).

Low driven focus on key user target segments: Marketing often draw concepts of targeting and segmentation in order to understand direct marketing activities. In addition, its vital to note user target segments and apply it to different ways in digital marketing (Digital Marketing Institute, 2019). For instance, Lakestone Lodge only tend to focus on advertising wedding event, honeymoon and cosy couple packages. Nowadays it is crucial to create digital scope especially consumers are more vested with what they want. Essentially, they must create a buyer persona to various criteria and develop demographics and media use (Digital Marketing Institute, 2019).


Target market through media and influencer content:The trends in the tourism and hospitality industry are massively changing wherein customers are getting fussier but willing to pay more for the value-added services. Altering of user generated content is something that has indefinite power to its audience and can generate sales (Rivera, 2019). For example, adding accommodation, activities and package descriptions on exceptional posts and integrating influencer marketing strategy can express relationships and build a community that can encourage to a bigger market segment. Promoting strong influencer relationship can help Lakestone Lodge to nurture authentic partnership (Rivera, 2019). 

Effective digital marketing campaign:Lakestone Lodge should raise their bar in strategic digital marketing tactics and develop advertisement campaigns in airports, luxury magazines and social media to shape their customer base. For instance, creating a campaign that involves story telling can trigger an emotional response that can easily go viral (Rivera, 2019). The use of an indirect content will give them more time to get audience attention and engagement. In addition, the involvement of the Social Media Manager will help the marketing team to collect information required for the campaign. This outlook can build and refine existing and potential customers as well as reach awareness to other customer segments (Rivera, 2019).


Dominating presence of competitors in Social Media:Nowadays competitive marketing communication strategy is very high considering quite a few luxury lodges situated in Lake Pukaki like Mt Cook Lakeside Retreat, High Country Estate and Luxury Villa. For instance, Mt Cook Lakeside Retreat offers a wider social media platform like YouTube, Twitter and Flicker that Lakestone Lodge doesn’t have (Mt Cook Retreat, 2019). Moreover, they also received a Qualmark Gold Sustainable Tourism Award that recognizes them principal in making New Zealand Tourism Industry a top of the line sustainable visitor destination (Qualmark, 2019). In line with this, Lakestone Lodge should not engage to mediocre marketing strategy but instead go the extra mile in leveraging customers interests.

Impact of economic macro factors in relationship to advertising costs: The absence of a clear goal in communication strategy can be challenging and Lakestone Lodge has no control with the external economic factors that might affect their business (Farooq, 2018). Thus, the amount of money that needs to be invested into multi-channels for long term promotion depends on the economic growth of the country. Recession is a great loss in sales, marketing and profits that can affect research development and campaign advertising. Furthermore, advertising downturn can turn out to be a costly affair and can lead to an amount of augmentation in the cost of the business (Farooq, 2018).

Section 2: Consumer Behaviour Analysis

Geert Hofstede’s Cultural Dimensions

The United Kingdom has a high market value for New Zealand and is the fourth largest international visitor market in the region wherein an average visitor spends around $5000. In addition, our target market sectors from the UK are independent professionals like entrepreneurs, consultants and freelancers between 37-51 age bracket. Also, active baby boomers who are born between 1944 to 1964 currently between 55-75 age bracket (New Zealand Tourism, 2019). Furthermore, British visitors spend an average of 25 days in New Zealand on holidays and the reason behind this lengthy period of their stay is driven by the desire to explore and experience all there is to see and do during their trip in New Zealand (New Zealand Tourism, 2019).

Key Insights of United Kingdom

(100% Pure New Zealand, 2018) 

(100% Pure New Zealand, 2018) 

(100% Pure New Zealand, 2018)

(100% Pure New Zealand, 2018)

United Kingdom Active Considerer Funnel

(New Zealand Tourism, 2019) 

Power Distance

New Zealand sits very low dimension at 22% while Britain scores at 35%. For instance, New Zealand leaders are always available and rely on individual employees and their teams for their expertise in which information is shared frequently also they establish a direct and participative communication (Hofstede Insights, 2019). Additionally, Lakestone Lodge will not have trouble in adapting to the British culture through application of an effective communication strategy. On the other hand, British culture value the importance birth rank where you should not limit how far you can travel in life and people should be treated equally (Hofstede Insights, 2019).

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New Zealand is an individualist culture scoring at 79%, on this variability they look after themselves and their immediate families only. Also, workforce is expected to be independent and demonstrate initiative (Hofstede Insights, 2019). Similarly, UK scored 89% which is amongst the highest of all the Individualist scores. Specifically, independent professionals are private and individualist people respond well on advertising if they see advantages on quality, branding and superior customer service (Hofstede Insights, 2019). Looking for the right place to spend their disposable income will be of great effect to luxury hotel like Lakestone Lodge.


New Zealand is considered a masculine culture with 58% dimension. Moreover, they are proud of their achievements in life, a winner takes all attitude and strive to be the best they can be  (Hofstede Insights, 2019). Likewise, at 66% Britain is also categorized as a masculine society. For them an important key point to drive success is to read between the lines, value the system of culture and modesty. For instance, both cultures are open to adapt new trends in multiple social media platforms and can help Lakestone Lodge to reach for costumers in United Kingdom (Hofstede Insights, 2019).


(Hofstede Insights, 2019) 

Uncertainty Avoidance

New Zealand scored an intermediate of 49% wherein their culture believes that vague situations, beliefs and institutions are to some extent threatened by avoidance (Hofstede Insights, 2019). In almost the same dimension UK has a low score on uncertainty avoidance at 35% which means that they are contented not knowing what the day brings and very spontaneous with new information and plan changing. As an illustration they have marketing opportunities in which media to advertise and doesn’t have to many laws that needs to be adhered and strong need for innovation and high level of creativity (Hofstede Insights, 2019).

Long Term Orientation

A low score of 33%, an established country like New Zealand exhibit a relatively small tendency to save for the future and focusing more on achieving fast results (Hofstede Insights, 2019). A dominant preference in culture, United Kingdom scored an intermediate of 51% in this dimension. For instance, they take a more logical approach in preparing for the future and encourage efforts in modernized education (Hofstede Insights, 2019). Somehow this could be a challenge for Lakestone Lodge in increasing their target market in United Kingdom since they perceive to save more for the future.


Relatively weak control is described as indulgence and strong control is measured as restraint. New Zealand’s culture is one of indulgence with its moderately high score of 75% wherein people exhibit willingness to realise their impulses and desires regarding enjoying life and having fun (Hofstede Insights, 2019). Equally, British culture is also classified as high indulgence with a score of 69%. Thus, placing a higher degree of importance on act of gratification, relaxation and spending money as they wish can greatly affect luxury hotels especially online advertisements and digital format domination (Hofstede Insights, 2019).

Consumer’s Decision-Making Process

Problem Recognition

Lakestone Lodge provides different amenities in New Zealand for the customers to experience their best leisure time. However, visitors from United Kingdom wants to try to find an accommodation for luxury lodges in South Island, Lakestone Lodge would be the last on their list (Luxury Lodges of New Zealand, 2017). As a result, marketing might be the biggest challenge for Lakestone Lodge as there are other luxury lodges who has better marketing on google AdWords. Furthermore, business to business marketing should be done with Tourism New Zealand websites to expand their marketing advocacy (Marketing Schools , 2012).

Information Research

Lakestone Lodge provides information through their website which includes lodging, activities and package deals. On the contrary, marketing activity in the UK wants it fast and convenient when gathering as much data as they can online wherein customers normally open the first five choices on their search engines. Primarily to gain competitive advantage in market domination and visibility, Lakestone Lodge should desire to improve their search engine optimization to the next level. For instance, registering to Pure SEO which is a consultation agency that can help in pleasing google through online searches will create a great foundation for Lakestone Lodge to reach search rankings (Pure SEO, 2019).

Evaluation of Alternatives

Competition is high in New Zealand for Luxury Lodges wherein customers have several lodge selections that offer better deals and get exposure through good customer feedback on New Zealand tourism platforms (Luxury Lodges of New Zealand, 2017). Specifically, to attract Britain independent professionals and baby boomers against other competitors, Lakestone Lodge should utilize chatbots. For instance, it uses artificial intelligence which means it can understand language and can speak conversationally. In addition, it will get smarter overtime, learning from each conversation from consumers (Sprout Social, 2019).

Product Choice

There are multiple package deals available on Lakestone Lodge’s website to experience luxury accommodation. Furthermore, tours and packages should be explained in detail to customers to avoid confusion as well as suggesting flexible itineraries (New Zealand Tourism Guide, 2019). To ease Britain’s booking experience, save time and generate the lead, information about free cancellation fee, free airport pickups and in touch communication service should be provided through websites and well established online travel agency in United Kingdom to highlight the strengths of the lodge and guide customers to their dream vacation (Kamo, 2019).

Post Purchase Evaluation

It is important for Lakestone Lodge to build a healthy and long lasting relationship with their customers. Frequently, evaluation of the purchase occurs when consumer rates and provide feedbacks based on the customer service standards (Weebly, 2013). Hence, Britain has an individualistic behaviour and learn mostly new things by themselves. For instance, establishing a strong field online marketing in United Kingdom will help Lakestone Lodge to continuously monitor their current and previous customers through testimonials, service satisfaction feedback and how well would they recommend the lodge based from their satisfaction level (Weebly, 2013).

Section 3: Promotional Travel Guide

Lakestone Lodge Key Information

Lakestone Lodge lies at the Southern beautiful turquios waters of Lake Pukaki looking directly north to Aoraki/Mount Cook, one of the most iconic and picturesque areas of New Zealand. It is set to be one of the most spectacular local attractions in New Zealand (Lakestone Lodge, 2019). Some iconic tourist attractions are the night sky experience, Alps Ocean Cycleway, helicopter flights, Mt Cook hikes and boating experience, Omarama hot tubs and One Ring Tours Twizel. Lastly, Lakestone Lodge offers variety of Luxury Packages including two to three nights for two guests ranging from $1495 to $1750 (Lakestone Lodge, 2019).

Tiaki Promise Five Guiding Principles

The Tiaki Promise is a pledge to care for New Zealand and everyone who live, and travels has a responsibility to look after it. It was created by seven private and public sector organizations. Moreover, The Tiaki Promise has a set of guiding principles for visitors to follow, showing how to contribute to preserving and protecting the land (100% Pure New Zealand, 2019). First is to drive safely, visitors should be aware of extreme weather conditions and road rules before exploring New Zealand. Second is to camp responsibly, following freedom camping basic rules like disposing of rubbish, proper waste disposal and protecting the environment.

Third is safety in the outdoors, considering what to pack, changes in weather, notifying the plan to someone, this could be through call, email and SMS, and lastly knowing the right travel limitations. Fourth is respecting New Zealand’s culture and get an insider knowledge of becoming one of the locals (100% Pure New Zealand, 2019). Finally, health and safety which includes keeping visitors safe as well as staying safe in the environment. For instance, knowing what to do in case of emergency like accidents, medication and health premium coverage (100% Pure New Zealand, 2019).

Lakestone Lodge Travel Guide


New Zealand is becoming one of the favourite tourist destinations for the world’s wealthy travellers. Also, New Zealand offers premium set of ideal leisure and recreational principles like health and safety, luxury lodge options, outdoor activities and friendly welcoming people. Moreover, premium luxury lodge accommodation has increased particularly for international travellers like United Kingdom. To ensure the greatest opportunity to engage with niche market segments like independent professionals and baby boomers, and to convert them into visitors of New Zealand.

Overall Lakestone Lodge needs to essentially create an effective communication tactic to improve their marketing strategy. In addition, exploring the world of social interactive content and digital marketing campaign can engage audience participation and reflect on opportunities and threats that can help improve Lakestone Lodge’s performance. On the contrary, New Zealand and United Kingdom has similar cultural dimension making it easier for them to adapt preferences. Finally, propositioning an effective marketing communication strategy to ease British customers in their decision-making process.



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