Presented by Rajnish Tuli, Marketing Science Director, Millward Brown, South East Asia at ISS Seminar: Digital Analytics – The Game Changer for the Hospitality Industry on 10 Apr 2015.

1. Brand Architecture in the
Hospitality Industry
RAJNISH TULI │APRIL 2015
1

2. Multiple factors (macro
and micro) influence Brand’s
Success in a dynamic
environment.
What Drives
&
BRAND?
Differentiates
my
With robust understanding
of levers of choice in hospitality
business, marketers can identify
differentiating factors to deliver
excellence and competitive
advantage.

3. Business Questions Answered
3
1
Which survey metric (KPI) is best reflection
of in market performance of brand?2
Which is the best path to follow so that we
drive preference for our hotels?3
How do we consolidate and find common
grounds for regional brand strategy?4
Which Digital Touch points are more effective
for driving specific levers of preference?5
What are the key levers to drive preference for
our hotels?

4. Key Question Explored
4
To find consumers’ PATH TO PREFERENCE across AMEA region for the Luxury Hotel Chain
MIDDLE EAST
INDIA
JAPAN
AUSTRALIA
SEA

5. The Approach
5
What is Brand
Context?
UNDERSTANDING
BRAND CONTEXT
1
Understanding brand
context – Competition,
Target Audience, Growth
objective of the Hotel
chain.
What KPI metric is
the best reflection of
sales in Hospitality
industry?
MARKETSUCCESS
INDICATOR
2
Identify the KPI metric
from our research that is
most reflective of sales.
What are the
different Positioning
dimensions?
DIMENSION
IDENTIFICATION
3
Factor analysis used to
group brand imageries
into relevant dimensions.
What positioning
platforms should the
hotel use to drive
consumer
preference?
PATH
MODELLING
4
Path modeling used to
define path to preference
via positioning platforms.
Identifying common
levers for brand
across the region
REGIONAL
INTEGRATION
5
Consolidating and finding
common grounds for
regional brand strategy

6. 01 Understanding the Brand Context
6
Establishing a relevant hypothesis was crucial in determining the path that the
hotel brand should be communicating in the future.
• Understand and identify the hotel brand’s current aims and status.
• This streamlining process helped build a concise model that was effective in answering the business questions.
Hotel Brand Preference
Ladder
WHERE DOES MY BRAND STAND?
AM I A BIG OR SMALL PLAYER?
WHO IS MY TARGET AUDIENCE?
WHERE DO I WANT TO GROW?
WHO ARE MY COMPETITORS?
How do I move up?
Awareness
Total Consideration
Preference
Enthusiasm
Familiarity
Serious Consideration
UNDERSTANDING
BRAND CONTEXT

7. 02 Identifying the Market Success Indicator in
Hospitality Industry
7
Hotel Preference was the consistent measure showing a strong relationship with
Revenue data, hence it was used for further modelling exercise.
• Correlations analysis conducted on brand tracking data with Hotel’s Revenue data to identify the best KPI to measure in the
hospitality industry
CORRELATIONS
Preference
Revenue
Correlations of Revenue with Preference (r=0.52)
MARKETSUCCESS
INDICATOR

8. 03 Defining the Positioning Dimensions
8
Factor Analysis used to group the image attributes of a great luxury hotel across AMEA into 17 Positioning platforms.
Communication Dimensions From
Consumers’ Perspective
29 Attributes That Can Drive Preference
Factor
Analysis
EMOTIONALCONNECT • Meet my needs
• I love the brand
• I will recommend the brand
• I completely trust the brand
• Fits my personality
LUXURIOUS • I can experience luxury
COSMOPOLITAN • Have up class toiletries
• Are cosmopolitan
ESSENTIALS • Offer good wi-fi service throughout the hotel
• Excellent food
• Are knowledgeable about the local area
• Have professional staff that make the effort to
understand your individual needs
THOUGHTFUL SERVICE
DIMENSION
IDENTIFICATION

9. 04 Path Modelling
9
Path Modelling tells us the best route of communication to drive our strategic business needs. It LINKS measures together in
sequence – allowing us to represent hypothesized causal relationships
It involves several ITERATIONS of STRUCTURAL EQUATION MODELING until the best fit path is found. We can
estimate the direct effect and indirect effect of each variable in the model.
EMOTIONALCONNECT
LUXURIOUS
COSMOPOLITAN
ESSENTIALS
The areas most closely associated with Preference
Often marketing outcomes
Drives the Primary level
Often more actionable than primary levers
Drives, and is closely related to, the secondary lever
Often the most actionable level, but will not be
enough alone to drive preference
PRIMARY LEVER
SECONDARYLEVER
TERTIARY LEVER
FACTOR 1
FACTOR 2
FACTOR 3
PREFERENCE
PATH
MODELLING

10. 05 Performance Analysis to identify brand building
opportunities
10
In order to understand what attributes truly differentiate the brand we ran an analysis called BRAND IMAGE PERCEPTION.
It helped us to understand what are the strengths and weaknesses of our luxury hotel brand vs. competition. We layered it with
path model to recommend the best path.
MR BIG
MR SMALL
BRAND A BRAND B
Worth what you pay
Do you love
Family friendly
30
-6
14
12
-3
26
-3
-3Hotels that are well-maintained
FACTOR STATUS
PRIMARY
LEVERS
Emotional Connect
Worth What I Pay
SECONDARY
LEVERS
Popular
Thoughtful Service
Consistency
Luxurious
TERTIARY
LEVERS
Cosmopolitan
Meeting Excellence
Essentials
Owned By Competitors Shared Open Owned By Us

11. The Findings
11

12. Path to Preference for this luxury hotel chain revolves around providing
Thoughtful Service that will create a Connection and demonstrate Premium
12
PREFERENCE
WORTH WHAT I PAY
CONSISTENCY
EMOTIONALCONNECT
LUXURIOUS
THOUGHTFUL SERVICE
FREQUENT GUEST
PROGRAM
ESSENTIALSCONCIERGE
COSMOPOLITAN MEETING EXCELLENCE
POPULAR
19% 22%
18% 28%
19%21%11%19%11% 19%13%
17% 26%
27% 23% 14% 10% 14%
Primary Lever Secondary Lever Tertiary Lever

13. Working on Thoughtful service ties into both Primary Levers
of Preference
13
PREFERENCE
WORTH WHAT I PAY
CONSISTENCY
EMOTIONALCONNECT
LUXURIOUS
THOUGHTFUL SERVICE
FREQUENT GUEST
PROGRAM
ESSENTIALSCONCIERGE
COSMOPOLITAN MEETING EXCELLENCE
POPULAR
19% 22%
18% 28%
19%21%11%19%11% 19%13%
17% 26%
27% 23% 14% 10% 14%
Owned By Competitors Shared Open Owned By Us

14. Building Popularity spans into Luxury and has a direct impact
on Primary levers of Preference
14
PREFERENCE
WORTH WHAT I PAY
CONSISTENCY
EMOTIONALCONNECT
LUXURIOUS
THOUGHTFUL SERVICE
FREQUENT GUEST
PROGRAM
ESSENTIALSCONCIERGE
COSMOPOLITAN MEETING EXCELLENCE
19% 22%
18% 28%
19%21%11% 19%13%
17% 26%
27% 23% 14% 10% 14%
Owned By Competitors Shared Open Owned By Us
11%19%
POPULAR

15. Working on Luxury, ties into both of our Primary Levers of
Preference
15
PREFERENCE
WORTH WHAT I PAY
CONSISTENCY
EMOTIONALCONNECT
THOUGHTFUL SERVICE
FREQUENT GUEST
PROGRAM
ESSENTIALSCONCIERGE
COSMOPOLITAN MEETING EXCELLENCE
POPULAR
19% 22%
18% 28%
19%21%11%19%11% 19%13%
17% 26%
27% 23% 14% 10% 14%
Owned By Competitors Shared Open Owned By Us
LUXURIOUS

16. FREQUENT GUEST PROGRAM
Identifying Common levers of Preference for the hotel across
AMEA region
16
WORTH WHAT I PAY
EMOTIONALCONNECT
LUXURIOUS
THOUGHTFUL SERVICE
ESSENTIALS
COSMOPOLITAN
POPULAR
MEETINGEXCELLENCE
REGIONAL INTEGRATION
4%
7%
7%
7%
12%
12%
14%
17%
20%
2%
7%
8%
2%
10%
5%
19%
17%
16%
9%
8%
1%
15%
2%
19%
22%
Primary Lever Secondary Lever Tertiary Lever

17. Defend strengths, seize opportunities, and communicate Thoughtful
Service & Luxury to drive Preference for the hotel across AMEA region
17
REGIONAL INTEGRATION
Owned By Competitors Shared Open Owned By Us
WORTH WHAT I PAY
EMOTIONALCONNECT
LUXURIOUS
THOUGHTFUL SERVICE
ESSENTIALS
COSMOPOLITAN
MEETINGEXCELLENCE
POPULAR

18. Tying the Communication Touch points with Key Preference
levers
18
Tourism Board Sites
Email from Brand
Entertainment & Sports Site
Yahoo / Google
Blog
FB / Twitter
FB Page by the Brand
BBC
Email from Friends / Family
Chatroom / Message
What to communicate through each touch point?
WORTH WHAT I PAY
EMOTIONALCONNECT
LUXURIOUS
THOUGHTFUL SERVICE
ESSENTIALS
COSMOPOLITAN
MEETINGEXCELLENCE
POPULAR
Primary Lever Secondary Lever Tertiary Lever
0.191 0.191 0.173
0.215 0.182
0.218 0.197
0.279 0.271 0.212
0.168 0.155 0.149
0.281 0.251
0.246 0.233
0.269 0.237
0.231
0.162
0.215
0.221
0.232

19. How to make it Possible ?
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• Do I need Brand Architecture for my Brand ?
• What kind of data is required?
• Is it very resource intensive?
• How frequently I need to carry this analysis?
• Is it possible for local or national brand?

20. MB help clients to address a broad range of business questions concerning
their brand, media, and communication strategies

21. 21
Our Clients…

22. RAJNISH TULI │APRIL 2015
23
Brand Architecture in the
Hospitality Industry