Staying Ahead of the Disruptors
in the Hospitality Business
Erich Joachimsthaler
Founder & CEO
November 2015
Vivaldi Partners for Holcim - 13
A brand is a promise… NOT lipstick on a gorilla Erich Joachimsthaler, CEO Vivaldi Partners Group
“ ”
The Third Place
$3.84 $1.75
Mom & PopCoffee Shop
Coffee Coffee
Strong brands continually outperform
the market
60
80
100
120
140
160
180
200
220
240
260
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Total Return to ShareholdersIndex
MSCI World
Top 40 BrandPortfolio
73%
Customer Experience & Brand Value
as Percentages of Enterprise Value
0
5
10
15
20
25
2003 2005 2007 2009 2011 2013 2015 E
Customer
Experience
Brand
Brand
Customer Experience
%
Cornell Study on the Power of Brands
in Hospitality
Gross operating
profits per room
+2.85%
Occupancy Rate
+6.31%
RevPAR
+4.43%
Source: Yi-Lin, Tsai, Chekitan S. Dev, Pradeep Chintagunta, 2015
Awareness
Image
Advertising
Relevance
Differentiation
Emotionalization / 360
Degree Comms
Value Exchange / Utility /
Substance
Technology, Data &
Analytics
Tech
Mad Men Branding Strategic Brand Management
Building Brands in the Digital Age
Inside-out Outside-in
Mission:
Become world’s leading provider of premium products
and premium services for individual mobility
PARKNOW
Finds an available
public parking
space through GPS
installed
PARKATMYHOUSE
A social network
of private parking
garages for an hour
or for a penny
CHARGEPOINT
Automatically finds
a location of where
to swap the battery
DRIVENOW
Pay per use,
billed by the minute
Improve People’s Life
Solve Something
Enable People
Deliver Value
Help Manage Their Lives
Fit Into Their Lives
Give People Time Back
A BRAND A STAND
PURPOSE
WHYWHAT
Point of Difference
Competitive
Employees
Consumers
Communications
Loyalty
Point of View
Distinctive
Missionaries
Advocates
Communities
Love
“Be more”“Do more”
SOURCE: REIMAN, 2013
Essence
Purpose
Values &
beliefs
Character
Ambition
Promise
Expression
Self-Expression
What we sell is the ability for a 43-year-old accountant to dress in black leather,
ride through small towns, and have people be afraid of him.
Harley Davidson executive, quoted in Results-Based Leadership
Self-Expression: Exclusivity Matters Less
67%
2014
52%
2015
Self-Reward: Emotional Benefits
Self-Reward is Becoming More Important
85%Quality
78%
Authenticity
80%
Advocacy
62%
Values: Unique, Authentic, Shared,
Real Experiences
78%
Authenticity
80%
Advocacy
But There Are Also Surprises….
Experiential luxury 33%+
of luxury purchases
internal values 66% globally
51% luxury as self-reward
Importance of
Word of Mouth 49%
80% care about countries of origin
78% care about authenticity
62% purchase for social reasons
Importance of Quality 86%
Exclusivity matters less (-15%)
Brand Advocacy 80%
SELF-EXPRESSION SELF-REWARD
VALUES:
AUTHENTICITY
Develop a collective understanding of the
power of the brand
Adopt a model of branding and deliver
meaningful value
Tap into major cultural or social tension that
requires resolution
Thank you!
@ejoach imstha ler
e j@viva ld igroup.com
Erich Joachimsthaler, Ph.D.
/ Founder & CEO of Vivaldi /