How to develop Unique Value Proposition for Existing Business in Digital Age
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Presentation selected best in class: Digital Strategies for Net Generation Enterprise Prof David Rogers, Faculty Columbia Business School and Author Digital Transformation Handbook 2017
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How to develop Unique Value Proposition for Existing Business in Digital Age
- 1. VALUE PROPOSITION MARRIOTT INTERNATIONAL Contributors: • Charisma Glassman Digital Marketing Executive, Disney ABC • Aditya Kilpady SVP Contract Advertising, WPP Group • Amrita Haldipur Content Marketing Professional, National Geographic • Lakshmi Janardhanan Sr Developer, Blue Cross Blue Shield Presented to: Prof. David Rogers, Columbia Business School. Author: Digital Transformation Handbook Disclaimer: Presentation for academic reference only. © 2017 www.CharismaGlassman.com
- 2. Presentation selected for Best in Class For Cohort March 2017 Columbia Business School: Digital Strategies for Next Generation Enterprise by Prof. David Rogers, Author: Digital Transformation Handbook 2017. © 2017 www.CharismaGlassman.com
- 3. 1. The Case in Discussion – Marrio3 Content Hub 2. Key Customer Types 3. Value Elements 4. Emerging Trends 5. Strengths 6. New PotenIal Value Elements 7. New forward looking value elements AGENDA Value ProposiIon
- 5. Our core values make us who we are. As we change and grow, the beliefs that are most important to us stay the same—puSng people first, pursuing excellence, embracing change, acIng with integrity and serving our world. Being part of Marrio; Interna>onal means being part of a proud history and a thriving culture. MARRIOTT INTERNATIONAL CORE VALUE STATEMENT h"p://www.marrio".com/culture-and-values/core- values.mi MARRIOTT INTERNATIONAL CORE VALUE STATEMENT: Our core values make us who we are. As we change and grow, the beliefs that are most important to us stay the same— puSng people first, pursuing excellence, embracing change, acIng with integrity and serving our world. Being part of Marrio3 InternaIonal means being part of a proud history and a thriving culture. h3p://www.marrio3.com/culture-and-values/core-values.mi
- 6. Our core values make us who we are. As we change and grow, the beliefs that are most important to us stay the same—puSng people first, pursuing excellence, embracing change, acIng with integrity and serving our world. Being part of Marrio; Interna>onal means being part of a proud history and a thriving culture. MARRIOTT INTERNATIONAL CORE VALUE STATEMENT h"p://www.marrio".com/culture-and-values/core- values.mi MARRIOTT INTERNATIONAL BRAND PORTFOLIO Marriott International is an American multinational diversified hospitality company that manages and franchises a broad portfolio of hotels and related lodging facilities. It is the largest hospitality chain in the world with more than 5700 properties in over 110 countries and territories around the world, over 1.2 million rooms, and additional 195,000 rooms in the development pipeline.
- 12. MARRIOTT’S CONTENT BLUEPRINT Interview of David Beebe – AdverIsing Age, March 22, 2017 "That could be, depending on the content, someone like me from TV storytelling, to a journalist, to someone from a general media strategy world. The practice of content marketing is a specialty, and I think a lot of times CEOs don't understand the fundamentals of storytelling versus what's actually a campaign." "You can't rely on the brands to contribute dollars for content development. You have to show them what it can do, and eventually start to shift dollars from traditional media to content marketing." "Our entire strategy is built around developing creative in-house. We don't take pitches from production companies. We develop what we want to do, and then we go to the creative community to execute this type of creative." "The final thing is being able to educate people that content marketing is just one part of an entire marketing mix. You should be creating a content advertising ecosystem versus a bunch of siloed campaigns that don't talk to each other." 3. Creative Control1. Be a Storyteller 2. Have a dedicated Budget 4. Internal Buy-in
- 15. CREATING VALUE PROPOSITION Ansoff-matrix with the representaIon of product-market-strategies Existing New Existing New Markets Products/ Performance Market penetra>on ▪ Opening and managing new properIes in exisIng markets. Market development ▪ Merger with Starwood Hotels and Delta. Product development ▪ ImplemenIng new technologies at exisIng properIes. Market expansion ▪ New guests in new markets. ▪ Marrio3 - Data guru for travel.
- 17. CUSTOMER TYPES BY VALUE RECEIVED Key customers that we are considering to target for this Value proposiIon. Leisure Travelers Business Travelers Affluent Travelers New Age Travelers Banquet Events
- 19. VALUE RECEIVED BY EACH CUSTOMER TYPE Detailed analysis 1. LEISURE TRAVELERS Customers who travel for personal reasons. Examples: Backpackers, families, couples, single, budget travelers etc. VALUE ELEMENTS ▪ Budget & non-budget travel opIons ▪ InformaIon about local areas ▪ Socializing tools ▪ Free wifi / breakfast ▪ Extra reward points program OVERALL VALUE PROPOSITION Provide quality ameni)es and services for leisure travelers to help them make the most of their vaca)on )me. 2. BUSINESS TRAVELERS Customers who travel for business or official purposes. Examples: Corporate employees, consultants, business owners. Also includes Facilitators like OTA’s, Travel Desk, Staff that makes travel decisions (decision making units). OVERALL VALUE PROPOSITION Offer high efficiency, fast and professional services to help with facilita)ng the business needs of frequent business travelers. VALUE ELEMENTS ▪ Proximity to business (locaIon) ▪ TransportaIon opIons ▪ Business services (high speed internet access, fax/printer/scanner faciliIes, conference/meeIng rooms) ▪ High efficiency and less Ime consuming Hotel interacIon processes ▪ Reward points programs
- 20. VALUE RECEIVED BY EACH CUSTOMER TYPE (Contd.) Detailed analysis 3. AFFLUENT TRAVELERS High net worth and ultra high net worth customers who travel around the globe for business and pleasure. Examples: Luxury customers, Seniors, Couples etc. VALUE ELEMENTS ▪ High end/premium services ▪ Emphasis on quality & convenience ▪ Staff assistance ▪ Organized tours/entertainment OVERALL VALUE PROPOSITION Offer pleasurable, luxurious experiences and services to this convenience seeking segment of customers. 4. NEW AGE TRAVELERS Younger customers who have just started to explore the world and seek unique experiences at an affordable value. Examples: Millennials, young professionals, Late Gen Xers / Ys etc. OVERALL VALUE PROPOSITION Des)na)on for personalized bespoke and adventurous experiences to this segment of new-age travelers. VALUE ELEMENTS ▪ Uniquely curated (personalized) experiences ▪ Bespoke services ▪ Tech-savvy opIons ▪ Reward points program ▪ Seamless digital experience ▪ Social sharing opIons
- 21. VALUE RECEIVED BY EACH CUSTOMER TYPE (Contd.) Detailed analysis 5. BANQUET SALES ▪ Research/ development ▪ Know how ▪ Patent VALUE ELEMENTS ▪ MarkeIng concept ▪ Standards ▪ Brands OVERALL VALUE PROPOSITION ▪ Technology ▪ Capacity ▪ ProducIvity 5. BANQUET EVENTS A different category of local /non-local customers who use banquet spaces for events. Examples: Conferences, Weddings, Special events etc. VALUE ELEMENTS ▪ Large Venue and one stop service ▪ Pre-packaged rates including food ▪ Professional event coordinaIon ▪ Personalized high quality service ▪ Badge (presIge) Value OVERALL VALUE PROPOSITION Offer premium brand experience with high quality event management services.
- 23. EMERGING THREATS 4 emerging threats INTERNAL FACTORS EXTERNAL FACTORS ▪ Customer journey has changed online and is extremely de- fragmented. ▪ Targe>ng customers in key 4 micro-moments (dreaming, planning, booking and experiencing – explained in next slide) is very important. ▪ Pushing new content at every stage of decision making process without intrusive adverIsing techniques. CHANGING CUSTOMER NEEDS • Investment in technology that compeItors might offer (online booking through different plaqorms/ check-in kiosks, Keyless entry, Hi-speed internet, texIng concierge, streaming devices to TV, wearable technology to study customer journey). • Social Media contents/reviews: Constant veSng of bad reviews and online customer service is a challenge. NEW TECHNOLOGIES ▪ Geopoli>cal events such as travel bans, recessions, terrorism, natural disasters. ▪ Poli>cal changes in policy by state and local governments. ▪ Human personal bias: Stereotypes and Media / PR propaganda against certain desInaIons or groups of people. ▪ Data Privacy & Cybersecurity threats POLITICAL, SOCIAL, OTHER ▪ Growing threat of OTAs (online travel agents such as Priceline, Expedia, Hotwire etc.) ▪ Digital born companies like Airbnb ▪ Technology providers like Google Trips COMPETITORS & SUBSTITUTES
- 26. CUSTOMER TYPE: THE NEW AGE TRAVELLER Overall Value ProposiIon: Des)na)on for personalized bespoke and adventurous experiences. VALUE ELEMENTS ▪ Uniquely curated (personalized) ▪ Millennials want out of box vacaIon ideas like Surfing, Music fests etc. ▪ Marrio3 has hundreds of unique properIes worldwide to provide ideas. ▪ The sense of personalizaIon and uniqueness is very important to millennials and new generaIon Z. DECREASING VALUE TO CUSTOMER INCREASING VALUE TO CUSTOMER ▪ Bespoke Services ▪ Since millennials demand uniqueness, bespoke service personalized to their changing passions is important to them. ▪ Marrio3’s Ie up Starwood Hotels increased brand porqolio to facilitate more opIons. STRONG STRONG
- 27. CUSTOMER TYPE: THE NEW AGE TRAVELLER...Contd. Overall Value ProposiIon: Des)na)on for personalized bespoke and adventurous experiences. VALUE ELEMENTS ▪ Tech Savvy Op>ons ▪ The new age generaIons are digitally born - they are very adept in social media and bookings online. ▪ Marrio3 has a strong presence online and considered No. 1 in tradiIonal hospitality chains for online booking experiences. DECREASING VALUE TO CUSTOMER INCREASING VALUE TO CUSTOMER STRONG ▪ Rewards Programs ▪ Many rewards programs out there - leading ones are Wyndham Rewards, IHC, Hya3 Gold Passport etc. ▪ Starwood’s merger brought the tedious procedure of merging Starwood SPG program with Marrio3 program, which may take very long Ime. CHALLENGED
- 28. CUSTOMER TYPE: THE NEW AGE TRAVELLER...Contd. Overall Value ProposiIon: Des)na)on for personalized bespoke and adventurous experiences. VALUE ELEMENTS ▪ Seamless digital experiences ▪ The new age generaIons is social savvy and consumes content on mulI-screen devices. ▪ Seamless shopping cart (booking) experience is possible with Marrio3 ipad, mobile, online reservaIons, Rewards apps. ▪ Most OTAs don't have rewards integrated in reservaIon opIons. DECREASING VALUE TO CUSTOMER INCREASING VALUE TO CUSTOMER STRONG ▪ Social sharing op>ons ▪ Most social sharing happens through networking sites (but not all). ▪ User generated content by Marrio3 guests is encouraged but users provide low quality graphics and videos. ▪ Mostly dissaIsfied users write negaIve reviews as compared to saIsfied guests. CHALLENGED
- 30. NEW POTENTIAL VALUE ELEMENTS SOURCE New Technologies EXAMPLES ▪ Wearable technology ▪ Connected devices (IoT) ▪ Virtual Reality POSSIBLE NEW VALUE ELEMENTS ▪ Very short form content for apple watches / digital signages. ▪ Voice enabled content for Amazon Alexa, Google Home about Marrio3 desInaIons & properIes. ▪ VR studios to experience desInaIons in 3D; immersive experiences across most stunning Marrio3 properIes. Trends in Customer Environment ▪ Seamless mulI-screen yet fragmented digital customer journeys. ▪ Social media and networking in the center of customer universe. ▪ Taking “Know your customer” to another level of personalizaIon with data. Unmet Customer Needs ▪ Travel ecosystems ▪ Contextual and non-intrusive digital adverIsing ▪ Marrio3 apps and smart TV connectability through RFID and IP address recogniIon etc. ▪ Personalized entertainment experiences like TV shows, music (download own spoIfy lists) at different Marrio3 properIes. ▪ Networking with other guests travelling at the same property and social sharing informaIon. ▪ Marrio3 one-stop service (end to end) travel ecosystem from flight booking, experiences, restaurants, accommodaIon throughout the customer journey. ▪ Extreme personalizaIon with data - linear partnerships with vendors (airlines, cab services, restaurants, experience providers, convenIon centers, business service providers) to provide relevant ads.
- 32. EXISTING OVERALL VALUE PROPOSITION Analyzing Old vs New OLD VALUE PROPOSITION CORE ELEMENTS (to build upon) WEAKENED ELEMENTS (to bolster) Data & Personaliza>on MulI-screen seamless customer journey Bespoke curated experiences Reward points - loyalty markeIng Latest Technologies Connected devices Social Sharing Ask guests to share their experiences (collect UGC) DISRUPTED ELEMENTS (to de-priori>ze) NEW ELEMENTS (to create) Intrusive adverIsing Universally connected travel experience Tele markeIng Bookings directly from social networks - Facebook Lead Ads TV ads Increased privacy & data guidelines - EncrypIon TradiIonal Travel Agents AutomaIc upgrades according to guest preferences and past purchase behavior.
- 34. REVISED VALUE PROPOSITION Benefits received by guests (customers) from Marrio3’s (company’s) offering THE M-CONNECT SMART HOTELS MODEL ● IoT enabled SMART Marrio3 hotels - M-Connect Model will enable the traveler with a seamless digital journey and ecosystem with the help of targeted content. ● Seamless digital journey for digital nomads who live in the offline and online worlds - at the same Ime! ● Offering hyper-personalized services with targeted content and personalizaIon.
- 35. THE M-CONNECT SMART HOTELS MODEL Customer at the heart of storytelling ▪ Customer: Guests at the heart of strategy - creaIve new innovaIon for guests and travellers through SMART / CONNECTED hotels. ▪ Content: Seamless content that is relevant and contextual at every step of the traveller’s journey. ▪ Technology: Using IoT networks and connecIng not just all screens but bridging the gap between virtual and real experiences to travelers. ▪ Experiences: CreaIng unique online and offline experiences to deliver full value to the travellers in each segment.