Our group created this pitch deck for a New Product Development class at NYU. We were tasked to brainstorm a new product, research the industry, category, and target consumer, and discuss the marketing and launch plan.

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

3. Market potential Hotel Industry

4. Hotel Industry Outlook

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

6. Key Insights

10. Flexible Check in Pool/ Sauna In-room Refreshments Quality of Bar/Restaurant Free Parking DVD Player/ Game Console Variety of Restaurants Internet Easy Access to Airport Beauty/Spa Treatments Quality Ratings Breakfast included Gym Facility Sports Facility Price In Room Coffee 24 Hr. Room Service

11. Flexible Check in Pool/ Sauna In-room Refreshments Quality of Bar/Restaurant Free Parking DVD Player/ Game Console Variety of Restaurants Internet Easy Access to Airport Beauty/Spa Treatments Quality Ratings Breakfast included Gym Facility Sports Facility Price In Room Coffee 24 Hr. Room Service

13. Destinations usually offer plenty of activities around the hotelAMENITIES QUALITY RATINGS IKEA EXPERIENCE

15. Enter all credit card information when making purchase

16. Given a code to enter roomAMENITIES QUALITY RATINGS IKEA EXPERIENCE

20. Pool

21. Fitness Center

22. Free Internet

23. Eco-friendlyAMENITIES QUALITY RATINGS IKEA EXPERIENCE

25. Encourage word-of-mouth

26. Social media and online recommendationsAMENITIES QUALITY RATINGS IKEA EXPERIENCE

27. LEISURE CHECK -IN SHUTTLE FOOD HOTELL IKEA AMENITIES QUALITY RATINGS IKEA EXPERIENCE

28. What is the IKEA Experience? Low-Cost. Efficient. “Live with your furniture before it lives with you…” DO-IT-YOURSELF For everyone. Well-Designed. Modern. Swedish meatballs. Functional.

29. Design your own room

30. Brand Positioning stylish Budget Higher-end traditional

32. Swedish Restaurant

34. Pricing Standard Rooms: $1192 Doubles / 1 KingThemed Rooms: $139Complimentary Design Your Own Room service for stay of 5 nights and above Fluctuate 10%-20% seasonally

35. 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.

36. Media Plan winter fall summer spring tv tv tv tv tv tv print print print print guerilla guerilla place-based place-based online

37. Media Plan winter fall summer spring Oprah Ellen Ghost Whisperer Ellen Oprah Late Night with David Letterman Oprah Real Simple Shelter Oprah Lifestyle Publications IKEA objects placed outdoor IKEA objects placed outdoor branded airport lonuges branded airport lounges online

38. Print One bed. Two bed. Red bed. Blue bed. Themed rooms. Available at Hotell IKEA.

39. Print

40. Print

41. OOH

42. Online

43. 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

44. 3 Year Sales Forecast

45. Low Awareness

46. Low Trial

47. Low Repeat

48. Opportunities Capture customer information Target potential IKEA customers Drive in-store sales Leveraging Marriott expansion and renovations of existing Marriott hotels

50. Appendix

51. TV Spots Why? Reaches mass audience within target market Showcases “IKEA Experience” through sight and sound Where? Fox’s “House” CW’s “Ellen” CBS’s “Ghost Whisperer” Late Show with David Letterman Oprah Travel-related programming

52. Print Why? Target market defined by special interest High-quality image is important Where? Oprah Real Simple Shelter Lifestyle publications

53. Online Why? 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

54. Guerilla Why? 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

55. Place-based Why? Need situational, time-sensitive advertising Create awareness among target market Where? branded IKEA lounges in airports hotel promotions in IKEA stores

56. 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?

57. 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

58. Repeat Average number of nights at hotel per trip is 3.2 Consumers will be attracted by the price point and quality of hotel