Catalyst: the inspiration company Email: [email protected]

Catalyst: the inspiration companyEmail: [email protected]

86, Gloucester Place, London W1U 6HP Tel: + 44 (0) 207 935 7616 Web: www.catalystmarketing.co.uk

Prepared by:

13th November 2008

Innovation – why bother?

Owners’ ConferenceOwners’ Conference

Why bother?

2

““Within small and medium sized businesses, Within small and medium sized businesses, when things are going badly and cut backs are when things are going badly and cut backs are being made, innovation is the first thing to go.being made, innovation is the first thing to go.

Most people don’t realise how crucial it is to be Most people don’t realise how crucial it is to be innovating throughout tough times to ensure innovating throughout tough times to ensure

the prosperity of your business.” the prosperity of your business.”

““Within small and medium sized businesses, Within small and medium sized businesses, when things are going badly and cut backs are when things are going badly and cut backs are being made, innovation is the first thing to go.being made, innovation is the first thing to go.

Most people don’t realise how crucial it is to be Most people don’t realise how crucial it is to be innovating throughout tough times to ensure innovating throughout tough times to ensure

the prosperity of your business.” the prosperity of your business.”

Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.

3 ways to innovate

What does Rigour look like?

Examples of Rigour

Needn’t cost the earth

Benefits of innovation

What’s coming up

3


3 Ways to Innovate

4

1. Instinct

3. Rigour

2. Copycat


3 Ways to Innovate: Pros & Cons

5

1. Instinct

+ You know your business

+ You understand your customers

+ You are aware of your competitors

+ You may know best

+ You know your business

+ You understand your customers

+ You are aware of your competitors

+ You may know best

- Too close to it?

- Selective hearing?

- How much do you look around?

- What do you know?

- Too close to it?

- Selective hearing?

- How much do you look around?

- What do you know?

N.B. Mostly works fine, if your market is immatureN.B. Mostly works fine, if your market is immatureN.B. Mostly works fine, if your market is immatureN.B. Mostly works fine, if your market is immature



6

+ It’s working for them

+ It’s easy to adapt

+ Can do it quickly

+ Can do it cheaper

+ It’s working for them

+ It’s easy to adapt

+ Can do it quickly

+ Can do it cheaper

- Your business is not the same

- There’s no point of difference

- It’s yesterday’s news

- Your customers take it for granted

- Your business is not the same

- There’s no point of difference

- It’s yesterday’s news

- Your customers take it for granted

““90% of businesses are average, doing average marketing, achieving average profits. 90% of businesses are average, doing average marketing, achieving average profits. To be ultra successful you need to avoid what everyone else does and do the To be ultra successful you need to avoid what everyone else does and do the

extraordinary! “extraordinary! “

““90% of businesses are average, doing average marketing, achieving average profits. 90% of businesses are average, doing average marketing, achieving average profits. To be ultra successful you need to avoid what everyone else does and do the To be ultra successful you need to avoid what everyone else does and do the

extraordinary! “extraordinary! “

2. Copycat



7

+ Researched thoroughly

+ Analysed the results

+ Carefully developed

+ Properly launched

+ Researched thoroughly

+ Analysed the results

+ Carefully developed

+ Properly launched

- Time consuming

- Might not like what you see

- Costs money

- A real commitment

- Time consuming

- Might not like what you see

- Costs money

- A real commitment

3. Rigour


What does Rigour look like?


What does Rigour look like? – the process

OBJECTIVEBuild and develop the ideas to realityMETHODDevelop and refine the best ideas and then research with consumers and go with strongest for launch

OBJECTIVEDeveloping a range of ideas against target marketsMETHODCreative workshop to take the seeds and grow them (reject old thinking!)

OBJECTIVEIdentify target markets and provide seeds for ideas. This is about knowledgeMETHODAnalyse overall consumer trends, direct observation, competitor visits and sampling

STAGE 1: GATHERING SEEDS & PREPARING GROUNDSTAGE 1: GATHERING SEEDS & PREPARING GROUND

STAGE 2: GERMINATIONSTAGE 2: GERMINATION

STAGE 3: NURTURINGSTAGE 3: NURTURING


Examples of Rigour

10

Hoseasons - creating a targeted offer

Butlins – sizing the market opportunity

Barr – retro positioning


Examples of Rigour

11

Hoseasons - creating a targeted offer

So, who was the target and what did they want?So, who was the target and what did they want?So, who was the target and what did they want?So, who was the target and what did they want?


OLDER COUPLES ACTIVE


Most important factors in choosing a Lodge Holiday

OLDER ACTIVES

LOCATION

COST (ABSOLUTE)

STANDARD OF ACCOMMODATION

LEISURE ACTIVITIES (POOL & TENNIS)

CHILDRENS FACILITIES

Most important

Less important


YOUNGER COUPLES PASSIVE


Most important factors in choosing a Lodge Holiday

YOUNGER PASSIVES

LOCATION

COST (ABSOLUTE)

STANDARD OF ACCOMMODATION

SIZE (FOR GROUPS OF PEOPLE)

CREATURE COMFORTS

Most important

less important CONVENIENT ACCESS TO LOCAL SHOPS

ACCOMMODATION

SERVICES & OTHER


On-Site Services: Free

Room Service

Not Needed

Presented as Free-Services

Presented as Paid-for-Services

Not presented

Welcome Pack

Welcome Host

Must Haves

Information Pack

Key:

Newspaper Delivery

Concierge Service

Nice to Have

Daily Maid Service

Next Day Grocery Deliveries

Luxury Cotton Bathrobes


WHERE DOES THE PREMIUM LODGE OFFER FIT?Facilities/ activities

More Expensive

Less Expensive

No facilities/ activities

Premium Lodges


Autograph 2009

Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.27

Butlins – sizing the market opportunity

Examples of Rigour

So, how big was the market and how much would they spend?So, how big was the market and how much would they spend?


Objectives

To identify top revenue generating customers who

demonstrate greatest potential for the Butlins hotel


Analysis Methodology

ACTIVITY

Bookings data split by Mosaic groups

PH

AS

E O

NE

:P

HA

SE

ON

E:

Butlins Data Analysis

Sources:Mintel – British on

Holiday at Home 2002 Short Breaks

2000UK Tourist Board - UK Tourist

Statistics 2002

PH

AS

E T

WO

:P

HA

SE

TW

O:

External Data Analysis


Top Customers Profiling – Butlins Analysis

G30 Bijou Homemakers

Mosaic Group

G31 Market Town Mixture

B8 Pebble Dash Subtopia

C10 30’s Industrial Spec

C11 Lo-rise Right To Buy

C9 Affluent Blue Collar

D13 Coalfield Legacy

J44 Maturing Mortgagers

E12 Smokestack Shift Work

A2 Rising Materialists

D16 Low Rise Subsistence

As % of total 2001 Butlins

bookings (227,911)

1.2%

1.1%

1.0%

1.0%

1.0%

1.0%

0.9%

0.9%

0.8%

0.8%

0.7%

10.1%

Lo

wer

Pri

ori

tyH

igh

er P

rio

rity


Top Customers Profiling – External Analysis

Priority mosaic groups most closely associated with C1 demographic which accounted for 27% of UK population.

Source: Holiday Tourism in the UK, UKTS 2000

21

20

30

29

25

20

29

26

22

20

31

28

DE

C2

C1

AB

Trips 106m

Nights 392.7m

Spend £16,494m

21%

27%

22%

29%

Socio Economic Groups

% U

K P

op

ula

tio

n



AB

Socio-Economic Groups vs Lifestages

C2 DE

16-34 married or single with kids under 16

(17%/10 million)

2.1m

% Population 21%

2.2m

22%

2.9m

29%

35-54 married or single with kids under 16

(16%/9.5 million)

2.0m 2.1m 2.7m

4.1m 4.3m 5.6m

Very similar percentage to Butlins data. Likely to represent UK population with the most interest in the Butlins hotel.


8.9% of Total Population

C1

2.7m

27%

2.6m

5.3m



Spend*

Total UK Holiday Expenditure

£16,494m

%/£ Spent on Serviced Accommodation

(i.e. hotels, motels, B&Bs)

43%(£7092.42m)

Spend levels of the 16-54 with kids group were in line with forecast prices for Butlins ‘Hotel’ accommodation.


Nights 106m23%

(24.38m)

£/night £156 £291

£/week(7 nights)

£1089 £2036

%/£ of Total Spent on Serviced

Accommodation by 16-34 with kids

13%(£922m)

%/£ of Total Spent on Serviced

Accommodation by 35-54 with kids

18%(£1276.6m)

15%(3.66m)

21%(5.12m)

£252 £249

£1763(£441 per person in

family of 4)

£1745(£436 per person in

family of 4)


Butlins Shoreline Hotel

Hoseasons’ Owners Conference presentation • November, 2008 • Property of Catalyst. All rights reserved.36

Examples of Rigour

So, how best to deliver nostalgia in adult soft drinks?So, how best to deliver nostalgia in adult soft drinks?

Barr – retro positioning


37

Developing the Adult Soft Drinks CategoryDeveloping the Adult Soft Drinks Category

Objectives

Understand adult nostalgia for soft drinks Generate ideas that closely reflect that need


38

Exploratory Research to understand the opportunity

Creative Workshop to generate the ideas

Process OverviewProcess Overview

New Products Research to test soft drink ideas

Recommending the strongest idea for launch


Perceptions of the marketPerceptions of the market

Adult

SparklingSmaller bubbles

PopBigger bubbles

Child

‘Energy Drinks’

‘Adult Sparkling’

‘Traditional’ Sparkling (adult/family)

‘Traditional’ Pop (adult/family)

‘Diet / Low Cal’ pop Pepsi Max; Diet Coke etc

‘Family’ pop

‘Child’ pop

Not good for you

Good for you

Adult nostalgia

Adult nostalgia


40

Feeling RootedFeeling Rooted


41

Barr Originals

Barr’s Originals

“Where have all the great soft drink flavours gone? The ones you used to drink when you were a child? You just don’t see them anymore.”

Barr’s have been making soft drinks for over 100 years. We’ve taken classic recipes and made them even better. Using 100% natural ingredients, we’ve made Cream Soda with real vanilla extract, Ginger Beer with real root ginger, Real Lemonade and original Dandelion & Burdock. Always bottled in glass to ensure the finest quality, taste and freshness.

HIT Popularity: 1st (out of 18)

They are sticking with the classics

and bringing them up to date…

good

It is what we have been brought up with. But they are re-launching them by using nostalgia and natural

GP 2 Younger men

GP 4 Younger Women

They have updated it – made

it a bit more modern which is

good to keep things interesting

They are like the old bottles – good, safe and traditional

GP 1 Older Women

GP 1 Older Women


NEW Barr Originals – Summer 2008

Stocked in Tesco, Sainsbury’s, Morrisons and AsdaStocked in Tesco, Sainsbury’s, Morrisons and Asda



43

1. DIY

3. Ask customers

2. Friends & family



44

1. DIY – it’s free!

Analyse your sales and customer data – be honestbe honest Analyse your sales and customer data – be honestbe honest

Get hold of published research from the web – be openbe open Get hold of published research from the web – be openbe open

Share the findings with staff and draw conclusions – listenlisten Share the findings with staff and draw conclusions – listenlisten

Run a Creative Workshop with team – don’t judgedon’t judge! Run a Creative Workshop with team – don’t judgedon’t judge!

Pick the best ideas - agree selection criteriaagree selection criteria Pick the best ideas - agree selection criteriaagree selection criteria

Develop and launch Develop and launch



45

They know what you’re trying to achieve They know what you’re trying to achieve

You can trust them and they’ll be honest! You can trust them and they’ll be honest!

They can try out your product and your competitors’ They can try out your product and your competitors’

Listen to their ideas and build on them Listen to their ideas and build on them

Agree the best ones, develop and launch Agree the best ones, develop and launch

2. Friends & family – costs little



46

They like to be heard, they’re experiencing it They like to be heard, they’re experiencing it

You always learn something you didn’t know You always learn something you didn’t know

Share the findings with staff and draw conclusions Share the findings with staff and draw conclusions

Agree the best ideas Agree the best ideas

Develop and launch Develop and launch

3. Ask customers – small cost


47

So, what are the benefits?

Benefits of innovation

New New CustomersCustomers

New New CustomersCustomers

Increased Increased SalesSales

Increased Increased SalesSales

Improved Improved MarginsMargins

Improved Improved MarginsMargins

Stronger BusinessStronger BusinessStronger BusinessStronger Business


INSPIRINGACTION

Catalyst: the inspiration company Email: [email protected]

Documents

Transcript of Catalyst: the inspiration company Email: [email protected]