Banyan’s marketing budget has yet to be cemented for 2009, although the company is expected to spend around US$10 million to promote its brands globally this year in a bid to take on larger multinational rivals such as Four Seasons.
“We are certainly pushing into that space (to compete with Four Seasons),” said Michael Lee, VP, marketing, Banyan Tree Hotels & Resorts. “These are exciting times for our brand.”
Formul8 won the business after a five-way pitch, and begins a two-year contract. The Singaporean integrated agency, which did some project work for Banyan Tree in 2006, has been charged to handle the company’s entire porfolio, including the flagship Banyan Tree and Angsana brands, in all markets. It is unclear which other agencies contested the brief, however BBDO handled some projects for the advertiser last year. The agency denies involvement in the pitch.
The review marks the first time Banyan Tree has formally appointed an agency-of-record, and follows the recent hire of sales and marketing managing director, Arthur Kiong. “There are very few agencies in Singapore which have the privilege to manage a global account out of Singapore,” said Fiona Bartholo-meusz, MD, Formul8.
“Moreover, as an independent agency, it is a significant appointment and recognition that we are able to help craft the face and voice for two of the world’s leading names in luxury travel and hospitality.”
According to another source involved in the review, competing agencies had been tasked to create a clearer positioning for the Banyan Tree and Angsana brands. Banyan Tree is targeted primarily at wealthy travellers who want luxury, intimacy and romance, while Angsana aims for a younger customer in search of culture and adventure.
The company also wants a “unified” and “single-minded” idea to run through the brand portfolio. This would involve managing sister brands such as Banyan Tree Spa and Banyan Tree Gallery, and related businesses such as property sales and retail operations.
Agencies were also asked for advice on media strategy and to propose a marketing budget. Banyan Tree reported a 26 per cent increase in yearly revenue, to S$421.8 million (US$303 million), in 2007.
The company has plans to open new hotels in key strategic areas such as the Middle East and Greater China over the next three years.
