Hotel Marketing Strategies

Our strategies suggest to……

define potential buyers expose people to Nespresso

coffee makers expand market sales of coffee

machines

HOTEL BUSINESS OVERVIEW• percentages of revenues of hotels that are generated by business trips

A landmark PricewaterhouseCoopers study has found the U.S. meetings industry 250 million room nights to the hotel industry in 2009.Source: PricewaterhouseCoopers

OUR STRATEGY IS

To target hotels that feature

business travelers

association groups & corporate meeting planners/attendees

leisure travelers, families & couples seeking full-service and luxury-class

accommodations

SELLING COFFEE MAKERS TO HOTELS…… according to hotels’ average occupancy rate & room numbers

Occupancy rate

units of coffee makers

How can we determine the probability that hotel guests will buy in- room coffee machines?

Examples:

One French Hotel by central park, they has 800 rooms, they have potentially buy 800

coffee machines. However, they are not always full. Only by 80%. And about 90% of their

guests are from Europe. .9*.8=.72 which means that .72*.8=0.576

Your estimate is that they will buy 576 coffee machines which is based on the tourists demographics.

THE HOTEL GUEST PROFILE --RESOURCES FROM MARRIROTT HOTELS & RESORTS

DEMOGRAPHICS OF COFFEE MACHINES BUYERS

Source: HFN, 71(40): 100, October 06, 1997. ISSN: 1082-0310

DEMOGRAPHICS OF COFFEE MACHINES BUYERS

Source: HFN, 71(40): 100, October 06, 1997. ISSN: 1082-0310

WHAT WE KNOW FROM DATA ARE……• Key factors that influence sales of espresso machines are

household income

age ranges

regions

• Hotel guests age ranges from 40- 44 will be the potential buyers of espresso machines

• Income ranges from $50,000 to 74,999 match the mean of household income from hotel guest profiles, which is $169K.

research indicates that selling coffee machines to hotels with large numbers of business travellers can be a good market strategy to expand potential buyers of Nespresso machines.

WHAT DOES THE UNIT PER-SHARE BY REGIONS INDICATE?

Source: HFN, 71(40): 100, October 06, 1997. ISSN: 1082-0310

WHAT WE LEARNED FROM LOCATIONS ARE……

• where most coffee drinkers stay

indicating the most likely areas that coffee machines will be sold well.

based on these locations, we can open espresso bars in hotels to

expose people to Nespresso.

ESPRESSO BAR

• Store Location

• Business hours

• Cost of managing an Espresso bar

• Fast customer service

Give attention to…

HOTELS ARE IDEAL LOCATIONS FOR ESPRESSO BARS- Hotels allow espresso bars to serve customers waiting for valet parking, people

walking by and even drive-up customers.

- Darryl Allan, food-and-beverage manager at the Heathman Hotel, said the property will have rung up $200,000 in coffee sales by year-end - at a cost of $16,000.

HOTELS HAVE EARNED PROFITS FROM ESPRESSO BARS

Hotel & Motel Management, July 5, 1993 v208 n12 p20(2)