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New Product and Service Development

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Presentation on theme: "New Product and Service Development"— Presentation transcript:

1 New Product and Service Development
SR Kimpton Hotel Group

2 Table of Contents About Kimpton Hotel Group Every Hotel Tells a Story
Overview: New Product Development Process In Depth look at every step Post Launch Review – What did we learn?

3 Kimpton Hotels Kimpton Brand Focus - Kimpton Moments
Kimpton Strives to be the Best Loved Hotel Company For 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.

4 About Kimpton Hotels Founded in 1981 by Bill Kimpton
Innovative and Creative Management Team Kimpton Cares Kimpton EarthCare Program Complimentary Evening Hosted Wine Reception Kimpton in Touch – Guest Loyalty Program Signature Elements: Care, Comfort, Style, Flavor, and FUN The Future of Kimpton Hotels Opening of first Boutique hotel concept in the US Clarion Bedford Hotel in San Francisco In 1983 Bill introduced themed boutique hotels with the Vintage Court and it’s wine theme Pet Friendly programs estiblished in 1992 Hotel Monaco Guppy love goldfish program to keep guest company 1996 first in industry to develop “Tall Rooms” KIT launched in 2004 as a program to show OUR loyalty to Guests Kimpton Cares: Commitment to social responsibility making a positive social and environmental difference in the world. Trust for Public Land, Dress for Success, Red Ribbon Campaign EarthCare program focus on using sustainable products Future of Company development goal Currently has 43 hotels; goal 60 – 2010 and 80 – 2012.

5 Every Hotel Tells a Story
What is a story? Stories are an encapsulation of an experience Pictures are worth a 1,000 words but stories live forever Why do our hotels tell a story? Differentiated product that delivers unique benefits Create an intimate connection with guests A hotel’s story Hotel Vintage Park Seattle – Washington Wine Marlowe in Boston - Discovery 15 critical success factors 1. Unique superior product Vintage Park – celebrates Washington Wines and has sponsors at wine hour Marlowe Nightly reception - author speaking from our Discovery Reading series Complimentary bicycles to discover Cambridge on two wheels Across the street to the Museum of Science Observatory and check-out the universe with complimentary use of their telescopes

6 New Product Development Process New Hotel: Ground Up
Lights, Camera, Action All right Mr. DeMille, I’m ready for my closeup When you come to a fork in the road, take it Show me the money I coulda been a contender In the spirit of story I have modified the Stage Gate Process to includes Screens and Acts The 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 departments Gates = “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 deliverables Houston we have . . . You can’t handle the truth Testing , 2, 3 Give ‘em the old razzle dazzle

7 Ideation/Discovery Stage
#1 Success factor is a unique superior product Product innovation is a process Kimpton Hotels is known as #1 boutique hotel Voice of customer – focus groups We know the basics Deliver what the guest wants before they know they want it Creation of Idea Bank Hotel Story and Concepts Amenities, Design, Gidgets and Gadgets, Buzzzzz Competitive Set Hotels, Trade Shows, Suppliers Idea 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 ideas We have a ton of Ideas that can use a similar process. For today’s purposes ground up.

8 Screen 1 - Ideas I coulda been a contender
Fit our vision and goals Room keys Type of Project Can the market support our style of hotel Smith Travel Research Report (STR) Market Assessment Location in relation to competitive set Concept elimination Danger: “If we build it they will come” philosophy Key must meet and should meet criteria Needs to result in 2 – 3 products Hospitals? Day Cares? Concept elimination, Acquistions, joint ventures, and/or management opportunities 90 to 400 keys urban, resort, some suburban locations ground up development, adavtive re-use or reposition existing hotel through acquisition or management contract

9 Act 1 - Scoping Lights, Camera, Action
More in depth or preliminary market research Smith Travel Research Report (competitive set) Previous market success = lower market risk profile SWOT Analysis immediate competitive set Industry contacts, friends, counterparts Analysis of business partners Experience in the market Quality of project sponsorship Strategic Alliances with developer Availability of capital – Capital financial equity partners – Feasibility study on return and risk assessment Desk research, Technical, structual, financial, introduce multiple concepts Current existence in market place

10 Screen 2 - Viability All right Mr. DeMille, I’m ready for my closeup
Cross Functional Team - Home Office VP Revenue, Sales, Engineering, IT, Operations Take 2 – now that we know more re-analyze Screen 1 Verify with Legal that everything is okay and to code Prioritized Scored List of Projects (Q-Sort) Risk Reward Bubble Diagram Utilize 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

11 Screen 2 - Viability Risk Reward Bubble Diagram Pearls
Bread and Butter High Miami, FL New York, NY Chicago, IL Maui, HI Charlotte, NC Placement 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 Miami Hell, MT London, UK Oysters White Elephant Low

12 Act 2 - Build a Business Case When you come to a fork in the road, take it
22% of failed projects had no detailed market study Cost of project - Contractor price out as favor Entitlement of the site; create “envelope” of project Start schematic planning Preliminary design and Performa with operation SWOT 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 of innovativeness of the company” In-depth/Detailed Investigation Design Teams, Construction Team, Transition Team Legal, 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

13 Screen 3 - Go to Development Show me the money
Cross Functional Team Regional Director Revenue, Sales, Engineering, IT, Operations Review Results of market analysis Review Preliminary operations and marketing plans Must Meet Questionnaire (pre-developed) Ratio and balance between risk and return Sign off and presentation to CEO, COO, and CFO Total Company Commitment and Buy In Presentation to potential financial partners Everything 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.

14 Act 3 – Development Give ‘em the old razzle dazzle
Fast paced parallel processing Construction/Development Creation of Model Room Cross functional team reveiw Punchlist of items Measurements, functionality, design Strategery and other funness Hire Director of Sales and Marketing Create Marketing Plan Regional Director of Revenue Develop detailed budget and market projections Milestones and periodic project reviews Detailed Checklist with due dates and action items Longest stage, need to make sure that simultaneous things are occuring Hiring of staff, pricing strategies, sales and marketing team established Website Launched Market Segmentation analyzed

15 Act 3 – Development

16 Screen 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 unchanged 65% of projects do not include a pre-launch business analysis Complete site walk through by: Designer, Project Manager, Director - Hotel Openings Alpha Testing – Current management spends night in room Based on new and more accurate data; verify that nothing has changed in the market place

17 Act 4 - Testing and Validation You can’t handle the truth
Beta Testing – complete questionnaire Inner Circle Members complete a predetermined questionnaire Include price sensitive questions/interest to purchase Weighted scores on usability/functionality of amenities Opening Hotel Team Selected manager’s from around country come in to help Role play with new staff; intense training; Kimpton Cheerleaders Hotel story in place? Kimpton Service Standards in place? Internal Testing of the Hotel \ What type of questionnaire? Q, Checklist, Weighted?

18 Screen 5 - Go to Launch Houston we have . . .
Final review of: Marketing Plan, Business Strategies/Tactics Rate structures, Pricing strategies System integrations E-Channel content and visibility CEO, COO, and CFO complete site walk through and visit Kill Criteria – Lobby and public space are 100% complete Living room and stage have to be set before guests can arrive No hotel launches unless it scores a _ _ on the questionaire If it scores less then we go back to Development

19 . . . L I F T O F F Grand Opening Gala;

20 Smith Travel Reports (RevPAR Index)
Watchlist Performance Hotel Call New Project Conference Call Smith Travel Reports (RevPAR Index) Employee Satisfaction Survey And 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 famous Guest Service Surveys (Sterling Report) New Project review Questionnaire Coyle Report Scores

21 IT’S A WRAP We’re bringing sexy back

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