Presentation on theme: "New Product and Service Development"— Presentation transcript:
1New Product and Service Development SRKimpton Hotel Group
2Table of Contents About Kimpton Hotel Group Every Hotel Tells a Story Overview: New Product Development ProcessIn Depth look at every stepPost Launch Review – What did we learn?
3Kimpton Hotels Kimpton Brand Focus - Kimpton Moments Kimpton Strives to be the Best Loved Hotel CompanyFor our guests: Our mission is to create an emotional connection with every one of our guests; to deliver highly personalized service across our entire collection of hotels and through our marketing efforts.
4About Kimpton Hotels Founded in 1981 by Bill Kimpton Innovative and Creative Management TeamKimpton CaresKimpton EarthCare ProgramComplimentary Evening Hosted Wine ReceptionKimpton in Touch – Guest Loyalty ProgramSignature Elements: Care, Comfort, Style, Flavor, and FUNThe Future of Kimpton HotelsOpening of first Boutique hotel concept in the US Clarion Bedford Hotel in San FranciscoIn 1983 Bill introduced themed boutique hotels with the Vintage Court and it’s wine themePet Friendly programs estiblished in 1992Hotel Monaco Guppy love goldfish program to keep guest company1996 first in industry to develop “Tall Rooms”KIT launched in 2004 as a program to show OUR loyalty to GuestsKimpton Cares: Commitment to social responsibility making a positive social and environmental difference in the world.Trust for Public Land, Dress for Success, Red Ribbon CampaignEarthCare program focus on using sustainable productsFuture of Company development goalCurrently has 43 hotels; goal 60 – 2010 and 80 – 2012.
5Every Hotel Tells a Story What is a story?Stories are an encapsulation of an experiencePictures are worth a 1,000 words but stories live foreverWhy do our hotels tell a story?Differentiated product that delivers unique benefitsCreate an intimate connection with guestsA hotel’s storyHotel Vintage Park Seattle – Washington WineMarlowe in Boston - Discovery15 critical success factors1. Unique superior productVintage Park – celebrates Washington Wines and has sponsors at wine hourMarloweNightly reception - author speaking from our Discovery Reading seriesComplimentary bicycles to discover Cambridge on two wheelsAcross the street to the Museum of Science Observatory and check-out the universe with complimentary use of their telescopes
6New Product Development Process New Hotel: Ground Up Lights, Camera, ActionAll right Mr. DeMille, I’m ready for my closeupWhen you come to a fork in the road, take itShow me the moneyI coulda been a contenderIn the spirit of story I have modified the Stage Gate Process to includes Screens and ActsThe new product development process is a combination of acts and screens created to increase your likely hood of launching and developing a successful product.Act = gather information, parallel activities undertaken by cross functional departmentsGates = “Go/Kill” points; Provide an assessment of the quality of the project, evaluated and analyzed - continues or goes back for “take 2”; must meet required deliverablesHouston we have . . .You can’t handle the truthTesting , 2, 3Give ‘em the old razzle dazzle
7Ideation/Discovery Stage #1 Success factor is a unique superior productProduct innovation is a processKimpton Hotels is known as #1 boutique hotelVoice of customer – focus groupsWe know the basicsDeliver what the guest wants before they know they want itCreation of Idea BankHotel Story and ConceptsAmenities, Design, Gidgets and Gadgets, BuzzzzzCompetitive Set Hotels, Trade Shows, SuppliersIdea Bank for employees in the field- We have 43 hotels and who are shopping the comp, going to trade shows, talking to guests, suppliers, reading trade magazines, etc.- They are engrossed in personal hobbies- We need to create an Idea Bank for the creation of . . .- Create an address called- Assign review committee to go through ideasWe have a ton of Ideas that can use a similar process.For today’s purposes ground up.
8Screen 1 - Ideas I coulda been a contender Fit our vision and goalsRoom keysType of ProjectCan the market support our style of hotelSmith Travel Research Report (STR)Market AssessmentLocation in relation to competitive setConcept eliminationDanger: “If we build it they will come” philosophyKey must meet and should meet criteriaNeeds to result in 2 – 3 productsHospitals? Day Cares?Concept elimination,Acquistions, joint ventures, and/or management opportunities90 to 400 keysurban, resort, some suburban locationsground up development, adavtive re-use or reposition existing hotel through acquisition or management contract
9Act 1 - Scoping Lights, Camera, Action More in depth or preliminary market researchSmith Travel Research Report (competitive set)Previous market success = lower market risk profileSWOT Analysis immediate competitive setIndustry contacts, friends, counterpartsAnalysis of business partnersExperience in the marketQuality of project sponsorshipStrategic Alliances with developerAvailability of capital– Capital financial equity partners– Feasibility study on return and risk assessmentDesk research, Technical, structual, financial, introduce multiple conceptsCurrent existence in market place
10Screen 2 - Viability All right Mr. DeMille, I’m ready for my closeup Cross Functional Team- Home Office VP Revenue, Sales, Engineering, IT, OperationsTake 2 – now that we know more re-analyze Screen 1Verify with Legal that everything is okay and to codePrioritized Scored List of Projects (Q-Sort)Risk Reward Bubble DiagramUtilize Q-Sort method to set up rankings of Prioritized Scored List of Projects criteria- Method for ranking-ordering a set of new products/proposals- Given a deck of cards and sort/rank them in order
11Screen 2 - Viability Risk Reward Bubble Diagram Pearls Bread and ButterHighMiami, FLNew York, NYChicago, ILMaui, HICharlotte, NCPlacement on grid, positioned by Reward and Risk values. Bubble size denotes resources required. Color/shading can be used to depict product line, strategic initiative, program, department, etc. High-risk, low-reward projects are easily identified in the “White Elephant” quadrant. No-brainer – should be avoided. Low-Risk, high-reward projects show up in the “Pearls” quadrant. No-brainer – should be selected. Choices usually come down to selecting projects from the High-risk, high-reward (Oysters) or Lower-risk, lower-reward (Bread & Butter) quadrants.Remember, there will be other considerations than Risk & Reward.Focus for today will be on MiamiHell, MTLondon, UKOystersWhite ElephantLow
12Act 2 - Build a Business Case When you come to a fork in the road, take it 22% of failed projects had no detailed market studyCost of project - Contractor price out as favorEntitlement of the site; create “envelope” of projectStart schematic planningPreliminary design and Performa with operationSWOT and market analysis (convention space, development, etc)Create the story- The single strongest predictor of investment value is “degree of innovativeness of the company”The single strongest predictor of investment value is “degree ofinnovativeness of the company”In-depth/Detailed InvestigationDesign Teams, Construction Team, Transition TeamLegal, SWOT, Market Analysis, Other Future Development, Economical, Narrow down concept, Design and Story created,Create presentation for the perspective business partners – Tell the Kimpton Story- The singel strongest predictor of investment value is “degree of innovativeness of the company”Detailed market study, predevelopment business and financial analysis
13Screen 3 - Go to Development Show me the money Cross Functional TeamRegional Director Revenue, Sales, Engineering, IT, OperationsReview Results of market analysisReview Preliminary operations and marketing plansMust Meet Questionnaire (pre-developed)Ratio and balance between risk and returnSign off and presentation to CEO, COO, and CFOTotal Company Commitment and Buy InPresentation to potential financial partnersEverything is time sensitive and if deadlines are not met than it is a “go”We’ve built the business case everything and we’ve gone through our final screen before we go to development. Before we go into development we need to sell it to the owner’s.
14Act 3 – Development Give ‘em the old razzle dazzle Fast paced parallel processingConstruction/DevelopmentCreation of Model RoomCross functional team reveiwPunchlist of itemsMeasurements, functionality, designStrategery and other funnessHire Director of Sales and MarketingCreate Marketing PlanRegional Director of RevenueDevelop detailed budget and market projectionsMilestones and periodic project reviewsDetailed Checklist with due dates and action itemsLongest stage, need to make sure that simultaneous things are occuringHiring of staff, pricing strategies, sales and marketing team establishedWebsite LaunchedMarket Segmentation analyzed
16Screen 4 - Go to testing Testing 1, 2, 3 Cross Functional Regional Level Team analysis- Product functionality, marketing plan, strategies- Ask the question: “Did we do this right”- Revised Financials in line with original goals- Compare to original criteria and plan- Verify market place expectations unchanged65% of projects do not include a pre-launch business analysisComplete site walk through by:Designer, Project Manager, Director - Hotel OpeningsAlpha Testing – Current management spends night in roomBased on new and more accurate data; verify that nothing has changed in the market place
17Act 4 - Testing and Validation You can’t handle the truth Beta Testing – complete questionnaireInner Circle Members complete a predetermined questionnaireInclude price sensitive questions/interest to purchaseWeighted scores on usability/functionality of amenitiesOpening Hotel TeamSelected manager’s from around country come in to helpRole play with new staff; intense training; Kimpton CheerleadersHotel story in place?Kimpton Service Standards in place?Internal Testing of the Hotel \What type of questionnaire? Q, Checklist, Weighted?
18Screen 5 - Go to Launch Houston we have . . . Final review of:Marketing Plan, Business Strategies/TacticsRate structures, Pricing strategiesSystem integrationsE-Channel content and visibilityCEO, COO, and CFO complete site walk through and visitKill Criteria – Lobby and public space are 100% completeLiving room and stage have to be set before guests can arriveNo hotel launches unless it scores a _ _ on the questionaireIf it scores less then we go back to Development
20Smith Travel Reports (RevPAR Index) Watchlist Performance Hotel CallNew Project Conference CallSmith Travel Reports (RevPAR Index)Employee Satisfaction SurveyAnd assuming everyone things right we are own our way to providing impecable service delivering on our Signature Elements, Telling our Story, and hosting the rich and famousGuest Service Surveys (Sterling Report)New Project review QuestionnaireCoyle Report Scores