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OPPORTUNITY ASSESSMENT : GEOTILITY Presented By: Filip Vukadinovic Jason Fielding-Tweedie Ka Yee Goretti Ng Lei Yang

Holiday Inn Express Sales Opportunity and Offer

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Hypothetical Sales Opportunity and Offer for Holiday Inn Express

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Page 1: Holiday Inn Express Sales Opportunity and Offer

OPPORTUNITY ASSESSMENT :

GEOTILITYPresented By: Filip VukadinovicJason Fielding-Tweedie Ka Yee Goretti NgLei Yang

Page 2: Holiday Inn Express Sales Opportunity and Offer

AgendaIntroduction

• Holiday Inn Express• Riverport-Richmond

Our Opportunity• Customer Business Profile• Opportunity Profile• Compelling Event• Opportunity Assessment• Decision Criteria

Our Solution• Unique Business Value• Financials• Competitors• Relationship Strategy• Our Strengths & Weaknesses• Our Goal• Competitive Strategy• Our Critical Success FactorsQuestions

Page 3: Holiday Inn Express Sales Opportunity and Offer

Holiday Inn Express Hotel & Suites RIVERPORT-RICHMOND 10688 No.6 RD, Richmond, BC V6W 1F7

Hotel Front Desk: 1-604-2411830 | Hotel Fax: 1-604-2411840

Page 4: Holiday Inn Express Sales Opportunity and Offer

Holiday Inn

Founded by Kemmons Wilson in 1952Franchised 1,405 inns around the world by 1972Created the standard for inns and became the standardHoliday Inn Express InterContinental Hotels Group in 1991Offers rates for both business and leisure travelers

Page 5: Holiday Inn Express Sales Opportunity and Offer

Our Opportunity

Page 6: Holiday Inn Express Sales Opportunity and Offer

Customer Business Profile

Geotility has been in the heating and cooling systems industry for 30 yearsThe company is based in Kelowna, B.C.

Page 7: Holiday Inn Express Sales Opportunity and Offer

Customer Business Profile

Suppliers

•Designers or installers•ExchangeEnergy from B.C.•10 firms across Canada

•Manufacturers•four thermal pump manufacturers across Canada

Distributors

•Technical sales•15 regional networks in Canada

Consumers

•schools•stadiums•residential housing•commercial buildings•industrial institutions

Page 8: Holiday Inn Express Sales Opportunity and Offer

Customer Business Profile

Trend AnalysisThe industry is in a better situation than the overall economy

Support from the Government of Canada’s Renewable Energy Deployment Initiative

“Clean Energy Dialogue” -- PM Harper & US President Obama

Contributed to the increasing awareness and installation of geothermal systems within North America

Page 9: Holiday Inn Express Sales Opportunity and Offer

Customer Business Profile

Trend AnalysisReal estate market is on a steep slide in B.C.

Geotility needs to sustain business and minimize capital expenditure effects

FinancialConfidentiality policies: Geotility’s profit margins and costs cannot be disclosedHowever, it is believed that Geotility is financially stable

Page 10: Holiday Inn Express Sales Opportunity and Offer

Customer’s Goal & CSFs

Goal

Be the leader of the industry by providing the highest

quality products, technical knowledge, and services to

clients

Minimize overall costs without affecting product and

service quality

CSFs

Cut down administration costs by receiving cost-

effective rates from hotel suppliers

Page 11: Holiday Inn Express Sales Opportunity and Offer

Opportunity Profile Geotility currently has numerous local projects in

progress

E.g. BCIT Aviation Technology Campus, The Lotus (both in

Richmond)

Geotility’s needs:

To temporary transfer talent from main branch in Kelowna to

Richmond in order to complete projects

A cost-effective, comfortable, and convenient hotel to stay in

Page 12: Holiday Inn Express Sales Opportunity and Offer

Compelling Event Geotility has to act now

to accommodate employees and to facilitate the company's numerous ongoing commercial and residential projects

If Geotility does not act now or delays action: A significant rate increase in hotel costs Operations may be affected (e.g. expenses)

Holiday Inn Express can provide Geotility with: the Corporate Rates Program free facilities – wireless internet, a complimentary hot breakfast,

room-suites, parking location convenience – 10 minutes drive from Geotility's

Richmond office Air miles rewards

Page 13: Holiday Inn Express Sales Opportunity and Offer

Opportunity Assessment:Is there an Opportunity?

IS THERE AN OPPORTUNITY?OUR CO.

COMPETITORSHilton Marriott Coast

TsawassenHampton Inn Holiday Inn

Express YVR Airport

Holiday Inn

Express Bridgeport

1 CUSTOMER’S APPLICATION OR PROJECT

DEFINED +

+ - + - - - -UNDEFINED

2 CUSTOMER’S BUSINESS PROFILE

STRONG +

+ - + - - - -WEAK –

3 CUSTOMER’S FINANCIAL CONDITION

STRONG +

+ ? + ? ? ? ?WEAK –

4 ACCESS TO FUNDS YES +

+ ? + ? ? ? ?NO –

5 COMPELLING EVENT DEFINED

+

+ - + - - - -UNDEFINED

Page 14: Holiday Inn Express Sales Opportunity and Offer

Opportunity AssessmentCan We Compete?

CAN WE COMPETE?OUR CO.

COMPETITORSHilton Marriott Coast

TsawassenHampton

InnHoliday Inn

Express YVR Airport

Holiday Inn Express

Bridgeport

6 FORMAL DECISION CRITERIA

DEFINED +

+ ? + ? ? ? ?UNDEFINED

7 SOLUTION FIT GOOD

+

+ ? + ? ? ? ?POOR –

8 SALES RESOURCE REQUIREMENTS

LOW +

- ? - ? ? ? ?HIGH

9 CURRENT RELATIONSHIP

STRONG +

+ ? + ? ? ? ?WEAK –

10 UNIQUE BUSINESS VALUE

STRONG +

+ ? + ? ? ? ?WEAK

Page 15: Holiday Inn Express Sales Opportunity and Offer

Opportunity AssessmentCan We Win?

CAN WE WIN?OUR CO.

COMPETITORSHilton Marriott Coast

TsawassenHampton

InnHoliday Inn

Express YVR Airport

Holiday Inn Express

Bridgeport

11 INDSIDE SUPPORT

STRONG +

+ ? + ? ? ? ?WEAK –

12 EXECUTIVE CREDIBILITY STRONG +

+ + + + + + +WEAK –

13 CULTURAL COMPATIBILITY GOOD +

+ ? + ? ? ? ?POOR –

14 INFORMAL DECISION CRITERIA

DEFINED +

+ ? + ? ? ? ?UNDEFINED –

15 POLITICAL ALIGNMENT STRONG +

? - ? - - - -WEAK –

Page 16: Holiday Inn Express Sales Opportunity and Offer

Opportunity Assessment:Is it Worth Winning?

IS IT WORTH WINNING? OUR CO.

COMPETITORSHilton Marriott Coast

TsawassenHampton

InnHoliday Inn

Express YVR Airport

Holiday Inn Express

Bridgeport

16 SHORT-TERM REVENUE

HIGH +

+ + + + + + +LOW –

17 FUTURE REVENUE

HIGH +

+ + + + + + +LOW –

18 PROFITABILITY

HIGH +

+ + + + + + +LOW –

19 DEGREE OF RISK

LOW +

- - - - - - -HIGH –

20 STRATEGIC VALUE YES +

+ + + + + + +NO -

Page 17: Holiday Inn Express Sales Opportunity and Offer

Decision Criteria

1. Rates

2. Services

3. Hotel Comforts

4. Surrounding Facilities and

Conveniences

Page 18: Holiday Inn Express Sales Opportunity and Offer

Key Issues and Key Players

Name 1 Name 2 Name 3

Issue 1 Rates

Amy-Marie Tomlines (Executive secretary for Geotility)

Ken Pfeifer

(The manager)President Jim Leask

Issue 2 Services

General Manager –Holiday Inn Express

Issue 3 Hotel comforts(clean rooms, facilities)

General Manager – Holiday Inn Express

Issue 4 – Surrounding facilities/conveniences

Front Office Manager (GSM)

Page 19: Holiday Inn Express Sales Opportunity and Offer

Our Solution

Page 20: Holiday Inn Express Sales Opportunity and Offer

Unique Business Value Holiday Inn Express just renovated in 2008

Holiday Inn Express is closer to Geotility’s

office in Richmond

Close to business parks (i.e. Ironwood

Business Park, Crestwood Corporate Center)

Corporate Rates Program helps customer to

save and add strategic value to business

Page 21: Holiday Inn Express Sales Opportunity and Offer

Financials

Short-term Revenue (counted

monthly)

$109 per room night

Total average expected returns of $160

15-20 room nights per month

Monthly room night revenue = $1,635

- $2,180

Expected monthly return = $ 2,400 - $

3, 200

Page 22: Holiday Inn Express Sales Opportunity and Offer

Financials Long-term Revenue (counted annually)

175 room nights per year

$ 135 per night charged in summer

season, $ 109 in winter season

88 * $135 = $ 11, 880

87 * $109 = $ 9,483

Revenue per year = $ 21, 363

Page 23: Holiday Inn Express Sales Opportunity and Offer

Financials Profit Margin

Approximately $25 - $30 in expenses per room night

The profit margin is expected to be $79-$84 This deal is important as it can be

profitable for Holiday Inn Express The risks in terms of business venture

and the rates itself are low The risk of Geotility using our

competitors’ hotels is high

Page 24: Holiday Inn Express Sales Opportunity and Offer

CompetitorsCompetitors Solution Proposed Alignment

YVR•Offers rates forcorporate clients who require accommodation

•Has corporate rates agreement with Geotility

YVR

•Executive Business Package rates•Business centre and meeting rooms

•Sales offering and approach match customers wants•No previous connection

Delta

•Bed and Breakfast Package•Meeting rooms and executive boardrooms

•Sales offering and approach match customers wants•No previous connection

YVR

•Corporate Rates•Business centre and board rooms

•Sales offering and approach match customers wants•No previous connection

Cambie

•Corporate Rates Program•Business Class rooms, meeting rooms, and business

•Sales offering and approach match customers wants•No previous connection

YVR

•Corporate Rates Program •Sales offering and approach match customers wants•No previous connection

Page 25: Holiday Inn Express Sales Opportunity and Offer

Relationship StrategyKey Player Business

AgendaPersonal Agenda

Relationship Strategy

Amy-Marie Tomlines

•Choosing hotel with the lowest rates with respect to services offered

•Low cost of our rate•Promised good service

Use leverage strategy

Ken Pfeifer •Finish the deal with Holiday Inn Express•Improve company performance by the end of the year

•Keep reputation at a high level as it is attached to the deal

Use motivate strategy

Jim Leask •Long-term focus on growth and performance•Environmental friendly image

•Display a more friendly public image for the company

Use leverage strategy

Page 26: Holiday Inn Express Sales Opportunity and Offer

Our Strengths & Weaknesses

Strengths•Reputed hotel•Good service and comfortable living place•Offers a great deals (i.e. Corporate Rates Program)•Has good business connections•Goals and CSFs matches customers’ wants•Likely to get inside support from Geotility

Weaknesses

•Not as mature as other competitors•Other competitors have had a longer relationship with Geotility•Easy for competitors to copy and imitate our rates and strategy•Low switch costs for Geotility

Page 27: Holiday Inn Express Sales Opportunity and Offer

Our Goal Renew the Corporate Rates Program

agreement Increase the likelihood of Geotility

staying with us Add more tailored services to help secure

future business Help Geotility to cut costs with minimal

side-effects on service quality Long-term Gain:

Future revenue from business with Geotility as they are expected to expand in the near future

Page 28: Holiday Inn Express Sales Opportunity and Offer

Competitive Strategy

Flanking – Solution AND Reputation

Strong reputation

Strong inside support from Geotility

Strong solution fit

Page 29: Holiday Inn Express Sales Opportunity and Offer

Our Critical Success Factors

Add new amenities & services E.g. microwaves and kitchen amenities

within rooms, fax machines, low roaming rates, and other business-friendly facilities to better serve the specific needs of our clients

Page 30: Holiday Inn Express Sales Opportunity and Offer

Our Critical Success Factors

Further understand who Geotility is and what they are about Interview Geotility executives who have

previously used the Holiday Inn Express

By doing this, we can increase Holiday Inn’s responsiveness and empathy as well as give tangibility to our services

Page 31: Holiday Inn Express Sales Opportunity and Offer

Questions?