Hotell IKEA New Product Concept Deck

transcript

Agenda• Market Potential• Concept Exploration• Qualitative Research• Hotel Description• Branding & Positioning• Pricing Recommendation• Marketing Strategy• Launch Plan• Sales Forecast• Sensitivity Analysis

MARKET POTENTIALHotel Industry

Hotel Industry Outlook

4%Rooms

Hotels > 25 roomsMotelsHotels < 25 rooms

Distribution of Travelers

Domestic travelersInternational travelers

17%11%

Hotel Distribution

SoutheastWestMid-AtlanticGreat LakesSouthwestPlainsRocky MountainsNew England

7%6% 3%

Market Share

Hilton

Marriott

Starwood

Wyndham

Hotel Industry Analysis Source: IBIS world report, Feb. 17, 2010

Key Insights

• Do-it-yourself consumers• High involvement, high loyalty

• IKEA brand image• Modern, stylish furniture

• Pricing• Consumer trend: Traditional Boutique

• Differentiation• No dominant player

• “The IKEA experience”

IKEA owned• Budget hotel• Functionality• Simple design• Swedish Cafe• Standardized

Rooms• Basic

amenities

Partnership• Mid-priced• Contemporary• Swedish

Restaurant• Design your

own rooms• Themed rooms• Eco-friendly

Partnership• Higher-end• Stylish design• Swedish

Restaurant• Fitness

Facilities• 24 hour room

service• Eco-friendly

Survey ResultsHow many nights did you stay at the hotel?

What was the reason for your travel?

• 68 responses• typical travel

experience with emphasis on hotel selection

Most Traveled to Cities

Flexible Check in

Pool/ Sauna

Quality of Bar/Restaurant

Gym Facility

Easy Access to Airport

Internet

Free Parking

Variety of Restaurants

Quality Ratings

Breakfast included

In Room Coffee 24 Hr. Room Service

Sports Facility

Beauty/Spa Treatments

DVD Player/ Game Console

In-room Refreshments

Flexible Check in

Pool/ Sauna

Quality of Bar/Restaurant

Gym Facility

Easy Access to Airport

Internet

Free Parking

Variety of Restaurants

Quality Ratings

Breakfast included

In Room Coffee 24 Hr. Room Service

Sports Facility

Beauty/Spa Treatments

DVD Player/ Game Console

In-room Refreshments

LEISURE CHECK -IN SHUTTLE

FOOD AMENITIES QUALITY RATINGS

IKEA EXPERIENCE

• Strategically placing our hotels in major cities that act as main tourist attractions means travelers are probably traveling for leisure

• Destinations usually offer plenty of activities around the hotel

IKEA EXPERIENCE

• Online check-in• Enter all credit card information when

making purchase• Given a code to enter room

IKEA EXPERIENCE

• Can’t offer parking, but can provide transport to and from hotel

IKEA EXPERIENCE

• Swedish restaurant

IKEA EXPERIENCE

• Themed rooms• Pool• Fitness Center• Free Internet• Eco-friendly

IKEA EXPERIENCE

• Real-time service ratings• Encourage word-of-mouth• Social media and online

recommendations

IKEA EXPERIENCE

HOTELL IKEA

What is the IKEA Experience?

Well-Designed. Modern.

Low-Cost.Efficient.

Functional.

For everyone.

Swedish meatballs.

DO-IT-YOURSELF “Live with your

furniture before it lives with

you…”

Design your own room

Brand Positioning

Budget Higher-end

traditional

stylish

Branding RecommendationTo Jetsetters,

Hotell IKEA is the brand of mid-price hotels, that better delivers a unique and affordable hotel experience.

Because:• Well-designed IKEA furniture• Swedish Restaurant• Eco-friendly

Hotels Considered for Leisure

Industry• Mid-priced hotels• $110-$200 per

Competitors• Element by Westin• Aloft by W• $139 per night

Research• Survey responses• Mean: $148.38• Median $120

PricingStandard Rooms: $1192 Doubles / 1 King

Themed Rooms: $139Complimentary Design Your Own Room service for stay of 5 nights and above

Fluctuate 10%-20% seasonally

Marketing Message

• Insight: people enjoy the IKEA experience and the ability to customize their own rooms•Big Idea: Sell the IKEA experience and “design-your-own-room” feature • Tagline: Live IKEA.

Media Planfall winter spring summer

tv tv tv tvtv tv

guerilla

place-based

print print print

online

guerilla

place-based

Media Planfall winter spring summer

Oprah Ellen Ghost Whisperer EllenOprah Late Night with David Letterman

Oprah Real Simple Shelter Oprah Lifestyle Publications

online

IKEA objects placed outdoor

branded airport lonuges

IKEA objects placed outdoor

branded airport lounges

One bed. Two bed.Red bed. Blue bed.

Themed rooms. Available at Hotell IKEA.

Online

Sales Forecast• Total Market: Looked at market research reports

to determine the size and growth forecasts of the US hotel industry

• Awareness: Optimistic based on the innovative marketing campaign that will draw a large amount of attention to IKEA and our union with Marriott

3 Year Sales Forecast

(In millions) Year 1 Year 2 Year 3

Total US Hotel Market 118,928 129,631.52 141,298.35

Awareness 70% 75% 80%

Trial 41% 45% 50%

Availability 0.24% 0.48% 0.97%

Repeat 80% 80% 80%

Profit 65.96 169.08 436.86

Low Awareness

Trial 41% 45% 50%

Repeat 80% 80% 80%

Profit 37.69 101.45 273.04

Low Trial

Trial 20% 25% 30%

Repeat 80% 80% 80%

Profit 32.17 93.94 262.12

Low Repeat

Trial 41% 45% 50%

Repeat 40% 40% 40%

Profit 32.98 84.54 218.43

Opportunities

• Capture customer information• Target potential IKEA customers• Drive in-store sales• Leveraging Marriott expansion and

renovations of existing Marriott hotels

APPENDIX

TV SpotsWhy?• Reaches mass audience within target market• Showcases “IKEA Experience” through sight and

Where?• Fox’s “House”• CW’s “Ellen”• CBS’s “Ghost Whisperer”• Late Show with David Letterman• Oprah• Travel-related programming

PrintWhy?• Target market defined by special interest• High-quality image is important

Where?• Oprah• Real Simple Shelter• Lifestyle publications

OnlineWhy?• Want to create buzz• Want to provide information and collect feedback

Where?• diynetwork.com• hgtv.com• ivillage.com• oprah.com• IKEA website• PPC for select keywords

GuerillaWhy?• Want to create buzz• Want to engage target audience in experience

Where?• sofas and curtains in bus shelters• pillows on bottom of playground slides• framing ‘missing cat’ fliers• adding cushions to park benches

Place-basedWhy?• Need situational, time-sensitive advertising• Create awareness among target market

Where?• branded IKEA lounges in airports• hotel promotions in IKEA stores

Trial• Took the percentage of respondents that

answered 6 and 7 on our survey• 6: 25%• 7: 16%• 25 + 16 = 41%

how interested are you in an IKEA hotel?

Availability• 414 hotels in New York City (tripadvisor.com)• 1/414 = .24% in the first year• Assumed amount of hotels per year would double• Assumed key city markets that we are entering

are of similar size to NYC

Repeat• Average number of

nights at hotel per trip is 3.2

• Consumers will be attracted by the price point and quality of hotel

Hotell IKEA New Product Concept Deck

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