2018 winner, Karma Group - selling on a shoestring - case study

Karma Group is a privately owned company operating 29 luxury resorts across 4 continents. Chairman and Founder John Spence, Ernst & Young Entrepreneur of the Year 2010, set out to create a new type of travel offering, appealing to those looking for a “five star hippy experience”, whether on the beaches of Asia or the ski slopes of Europe.

The travel market has become very competitive and cluttered. Especially in South East Asia which has been Karma’s traditional heartland. Karma is competing against major multinational hotel groups with huge advertising budgets. Standing out is difficult. And especially when the key differentiator between Karma and the more corporate branded competitors is down to something you can only really experience by being there.

Between 2015-2016 John expanded significantly beyond Asia, with several new resorts opening in Europe. At the very heart of John’s proposition is that if you experience Karma, and you are a Karma type of person, you will become a Karma “junkie” – whether it is “feet-in-the-sand” island life on the tiny Gili Islands, luxury villa living in Bali, chilled Karma Beach Club DJ sets, award winning “Martini and Manicure” spa sessions, exclusive events with their award winning mixologists overlooking Paradise Beach in Mykonos, or 6 Nations intimate lunches with player Ambassadors.

But Karma is a “find” and not everyone knows about it.

So we decided to flip the model. We would introduce lots of new people to the Karma experience by inviting them to join a private members travel club and then lavish them with kindness by letting them use spare inventory - $300 vouchers, 25% off best advertised rate, 25% off Food and Beverages, automatic upgrades, free airport transfers, free baby-sitting. Plus a welcome call from your Karma Concierge offering you a free week’s accommodation (excluding travel). Membership costs $499 ….but is free for the first year.

There is such a thing as a free lunch! 36,000 members in 12 months agree.

The Campaign Objectives

• Raise the profile of the Karma brand, awareness of the global reach of its resorts and of its new European resorts
• Introduce Karma to a completely new audience
• Use excess inventory to initiate the strongest form of trial possible
• Fill empty rooms with guests who will all be spending whilst on resort – food and beverage, spa treatments etc.
• Provide a compelling reason for members to renew at $499
• Create subsequent and incremental repeat room reservations by virtue of the strength of the Karma experience.

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(Please note: parts of this case study may have been redacted for confidentiality purposes.)