Studying The TFE Brands Market In New Zealand: [Essay Example], 2615 words GradesFixer

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Studying The TFE Brands Market In New Zealand

  • Category: World
  • Topic: New Zealand
  • Pages: 6
  • Words: 2615
  • Published: 12 March 2019
  • Downloads: 24
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This paper sets to analyze the market in the New Zealand which may offer an opportunity for one of the TFE brands to venture. The hotel and hospitality industry is a lucrative industry in Australia, Sydney and New Zealand. It is again growing at a tremendous rate given the fact that those country are great tourist destinations. Vibes hotels a brand among others of the TFE, endeavors to provide quality services to clients and we are considering going beyond the sea into New Zealand.(Wong and Sohal, 2003, 63)

The industry analysis is an important aspect in the identification of the feasibility of our expansion idea. It is an analysis that will be relying on the economic situation, market forces and other factors that will form part of our decision process on either to venture into the country or so. There are several places we could try to base our venture, but for this case, we will use Auckland. Auckland is located just at the outskirts of a great tourists cites and just in proximal distance in the beautiful bay of island in this country. (Willmot and cornit, 2003, 32)We identify that the places around will offer great tourist destination and therefore might be a breakthrough venture if we consider the move and therefore marketability of our venture are quite made simple.

Industry description

The Hospitality, Recreation, andTourism is a goldmine sector. If we take an analysis, we identify that this sector alone in 2014 employed approximately two hundred and four thousand employees who were working at full-time services across New Zealand.It was accounted for eleven billion market capitalization which is 4.8% New Zealand’s gross domestic product.

With such insights, we can see how important this industry is to the country economy. The current market dynamics are favorable to any business in this field.This just means that vibes hostels which are in line with this industry could just click into the system. Their vast experience in this field could offer a great platform for success (Keman, 2001, 566). Their construction and hotel design are notches higher, and even the operational services deserve credit. Their management is top class and admirable. They have their unique services like the in-house end to end development solutions. On the experience, they have been in the industry for 50 years or so. It, therefore, goes without a word that good and incredible services go hand in hand with experience.(Sharp, 1997,563) Their hotel development can be credited from this experience which allows deliverance of market-leading returns on any investments ventures.

Analyzing the current market

The current market aspect is quite an interesting one. We use different models to do the analysis. The market in question here regards the Auckland situation. Auckland is known to be the place to be.It is among the commonly visited places, and this is true forboth for conference attendants and international tourists. It is known to host many eventsdrives, and it is, therefore, a good market on issues regarding accommodation. This is where vibes hotel would chip in.The Hotels are quite classy hotels that offer great platforms on which guests can connect to theirfellow guests, loved ones, the local area and furthermore to their work.( Hotel, Tourism & Leisure Outlook, available at www. on June 2005).

The rooms themselves have great interior cool social places and bright rest rooms, food and beverages are in plenty plus the place is just unbelievably amazing. Emphasis is laid on fresh and local plus welfare options which come along with well-connected conferencing platforms. As we have seen there is high demand for the services and a lucrative conducive environments are in high demand. Such growing needs has only left a big room for future expansion (sharp, 1997, 453)

The chart above shows how the current market scenarios of the industry in New Zealand. It is apparent that the tourism hospitality industry is doing a great deal. The other industries only hold a small portion of the economy. This indicates that a good speculator could take the chance and venture into the tourism industry.

Models like the porter models are used to describe the external industrial scene. The external analysis is performed to explain industry profitability and competition with the respective competitors. We should do our analyses on the current market dynamics and the competitor’s key recent activities. To evaluate the external part of industry analysis, we use Porter’s model to explain the industry’s average prices and costs, and the medium profitability of the industry which could be viewed differently in using the following four forces: substitutes, rivalry, power of the buyer, supplier power. The substitutes are the close options that could be used instead of the product or service that we are offering. Rivalry involves the external co-competitors in the industry that we are fighting to have a higher market capitalization. The power of the buyer should be a vital component that should be analyzed given that he is the main reason we are doing business. Those who supplier to us could be either powerful or not. Powerful suppliers may be more demanding in their terms compared to other less powerful suppliers

In addition to the above forces, there are other factors that are not be considered as a force. These includes industry growth rate, technology, and innovation, government and complements.

Future market

As indicated earlier, the future of hotels, accommodation and hospitality facilities looks promising. This is because the tourism sector seems to be growing day in day out. In the recent times, there has been a scarcity of accommodation. This has been regarded to be the first setback on growth for both internal tourism markets and the international tourism as well. Thisscarcity in accommodation capacity has paved the way forrobust growth in the prices charged for accommodation in many places which has pushed tourists especially the domestic from participating in the tourism scenes. This has even led to the domestic tourist opting to other places. It is, therefore, an issue and could be solved by more entrance into the market, and this has therefore allowed much greater speculations for the future (shoemaker, 1999, 56)

It has been indicated that in the previous three years or so, the country has seen tourism boom back into the place it bused to occupy in the early years of the 21st century. Over 3 million guests were reported back in October 2015 compared to a figure of 2.6 million in the previous year, compared to around 2.6 million three years earlier. Growth in guest nights has previous years after some adjustment of terms, though. This shows that if only vibes hotels could come with a user-friendly terms and payments, then they are likely to come into the scenes and overhaul an unprecedented market share. The graphics below shows that there is some future to this industry if trend and history are something to go by.

A study was done recently shows that the profitability of hotels and catering facilities in Auckland without accounting for the fixed costs and also the management feesdrastically raised from approximately 34% to 36 % in the total revenue accounts. This has beenmotivated by numerous work on trading profits in departments plus a well-overseen regulated overhead expense (Hotel, Tourism & Leisure Outlook, available at www. on June 2005).

In March 2005, the study had as shown that there was a 62% increase in residence in Auckland and this was way higher than the total 42% registered occupancies in the country.In fact to add some spice to the idea that Auckland might just be some place only to be compared with places rich in fuel minerals is the fact the people who occupied here overly out did those who resided in other places. This is indicated clearly by the fact that it had at around 72% followed by other cities like theManukau and Papakura whohad 56% (www. Again, talking of hotel occupancy, Auckland is still beating the other cities by a good figure. It only means that it is a great place to invest for the vibes hotel. More study this time round by the“consultancy Horwath Asia Pacific” indicated that the profit was deemed to improve in the coming years in New Zealand. This was because that there were no speculations of entrance into the market. And what does this mean. It only means that if one like the vibes hotel can manage to get into the industry, he will take a part of the lion’s share. Lest we forgetanother milestone; the previous campaigns like“100 per cent Pure”,a campaign in New Zealand which will aid the tourism sector. The expectations on the economic growth in the country with about a 2.9% could not go unnoticed. This is well quoted by the minister for tourism that these are factors that could lead to the uplift of the demand for hotel rooms in the place. It is all about the idea that the market is certain to have some good times in the years to come.


Competition from co-members of the industry is certain under whatever costs. Competition is not necessarily a bad issue. It is through competition that we can do greater things that we could probably have not achieved. Again it is through the same that we can grow. This is to say that vibes hotels will have to face the music. Sometimes it could be crazy. In fact call competition, a necessary evil and I will not ask a question on it. Back in New Zealand, research has indicated that there is the rise in new forms of accommodation facilities has skyrocketed and many international and domestic companies are on the verge to step in. They are among others includeboutique hotels and resorts, luxury hotels, budget hotels, and backpackers. A consultant in the accommodation investments areas indicated that there would be more international hotel operators from outside and from Australia. Competition is thus expected to stream from every corner, and therefore we need to dress for the occasion and rehearse well for the tussle. But we are well prepared anyway given that we have many positivity’s ones being our big name and heritage.

Big companies competition

Still, on the issue of competition, strong interests have been shown internationally by major worldwide operators with the examplesof Heritage, Accor, Quest, and others. This has been because the international scene has been dominated byhotel chains. Some companies have already established themselves in the market. Outrigger Hotels & Resorts is a good example. They have quickly settled in the place and already have their properties in three different places. One in Taupo, another in Queenstown while the other is located in Christchurch.(Wong, 1997,343)

We ought to understand that the industry is very competitive and the customers themselves have the power to considerably dictate what happen in matters prices. Vibes, therefore, ought to come up with unique products that will beat the competition in the market.

Strategies by bigger companies

It is wise to consider the strategies the other big company is putting into place. For the future of vibes, we need to consider what the other giants are putting into place. Do they have new ways in the way they carry out their activities or what new are they are doing? These are some of the questions we ought to be asking ourselves. Visiting the websites of Heritage is they are planning on putting into position an all-suite hotel that has gained popularity both by the commercial travelers and the leisure ones too. Such indulges hints too vibes hotel that we need to also be on the watch out to know what the market has for us.

A study also shows that “cheap hotels outside the cities and luxury hotels in resort areas where guests will wait on hand and foot.” This can be characterized by the fact that new products are entering the market and all eyes should be on any opportunity that arises that could take us a step ahead of others. Vibes should withhold such a slogan such as “we led as others follow”. It is with such attitude that we shall move notches ahead of others.

Sales projections

These are the expectations we are having for Sales of the new products that we are to introducing into the market. Projections can be a challenge for sales projection are quite easier to foresee since we have the press release information. Since vibe is not new to this industry, we shall use the market returns and the market scenes to see the projections. There are enough track of information, and therefore we can detect how fast the business may grow and expand. From this information, we can tell what products will sell best.

The project may take three years to stand and a substantial amount of money to make the venture. The markets here are in the hotel, accommodation and hospitality industry and they have vast prospects.

Potential customers, clients and contract sources

The main agenda and the big asset a business could ever have is a customer. A customer is everything to business. Vibe hotel should take initiative to make the customer the priority, to maintain ad to gain loyalty from them. Marketing strategies should be taken into conception to ensure more market and more advertisement of our products. Marketing strategies should be based upon several “tricks” such as marketing mix which includes product/service, promotional and place strategies. People with smart ideas on marketing initiative especially the social media should be considered for the prosperity of this platform. People who are keen on the customers and they can spot a marketing advantage. The social should be well utilized since it is a free place to offer our products. Promotion of services and the products without paying any advertisement fee.

The idea of the customer being the stepping stones and being the main facilitator cannot be overemphasized, main facilitators. We should treat the customer as if they were the only thing we had by first making them have our taste and after loving our taste make them loyal to us.(shoemaker, 1999,346)

We should ensure that our customers get what they expected and they will be left satisfied. If we offer something more than what they expected from us, then they leave the place even extremely satisfied. This extreme satisfaction may go beyond, and the customer will end up being loyal to the vibe hotel. We should know this: that satisfaction of a customer may not mean loyalty, but only extreme loyalty will be requisite to loyalty(shoemaker, 1999, 355).

Another important issue is that we should know that a consumer has a brand. In fact, if a customer is loyal to a brand then he is likely to remain that way, and it might not be simple for him to change to another especially the brand have a greater strength than its counter competitors. It is the vibe taste we want to bring to this new market, and it is very worth nothing that this loyalty once achieved will achieve security to the demand which might even make it difficult for other markets to enter into the system. Lasting impressions on the minds of the customer’s mind may make it difficult for even to those trying to duplicate our products.


We have identified a good place to place our venture. Auckland has been proved through this reading that it will offer the best place for the vibe hotels to start their journey in the country.

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