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Hypothetical Sales Opportunity and Offer for Holiday Inn Express
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OPPORTUNITY ASSESSMENT :
GEOTILITYPresented By: Filip VukadinovicJason Fielding-Tweedie Ka Yee Goretti NgLei Yang
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
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
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
Our Opportunity
Customer Business Profile
Geotility has been in the heating and cooling systems industry for 30 yearsThe company is based in Kelowna, B.C.
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
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
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
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
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
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
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
–
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
–
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 –
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 -
Decision Criteria
1. Rates
2. Services
3. Hotel Comforts
4. Surrounding Facilities and
Conveniences
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)
Our Solution
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
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
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
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
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
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
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
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
Competitive Strategy
Flanking – Solution AND Reputation
Strong reputation
Strong inside support from Geotility
Strong solution fit
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
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
Questions?