1
Suitcase Get Smart
5.28.2009
2
Executive Summary
Born in the wake of the dot.com boom of the 1990s, Expedia has emerged to become the
market leader in ...
3
Expedia, Inc. is an online travel company. The Company makes travel
products and services available from a variety of la...
4
.
History
5
.
Primarily known as Chairman and CEO of IAC.
Owns a 60% controlling interest in
Expedia.
CEO of Paramount
Pictures from...
6
.
Clients Attending: The 411
Client
Profile
Pic
Year of
Start
School
Past
Compan
y
Key Fact
People We Know,
They May Kno...
7
Appeals to the broadest possible range with an extensive range of products across all
price points.
For the value consci...
8
2008 2007 2006 2005 2004
Revenue
($ millions)
2937.01 2665.33 2237.59 2119.45 1843.01
Change in
Revenue
10.2% 19.1% 5.6%...
9
.
Brand Portfolio Technology and
Continuous innovation
Global Reach
Breadth of Product
Offerings
Business Strategy Assets
10
Q1 2009 Q1 2008
Revenue
($ millions) 635.71 687.82
Change in Revenue -8%
Gross Margin 77.4% 77.8%
Operating Margin 14.6...
11
.
The Cause
Advertising Revenue
Increased 15%
Accounted for
11% of global
revenue
Gross Bookings
Decreased 11%
Stronger...
12
.
Brand Portfolio
Expedia.com was named
“Best Website” by Zagat
in their 2009 U.S. Hotels,
Resorts and Spas Survey.
As ...
13
Competitive Landscape
Competitive Landscape
Aggregators Direct Suppliers Travel Search Engine
15
2008 2007 2006 2005
Revenue
($ millions)
1884.81 1409.41 1123.1 962.66
Change in
Revenue
33.7% 25.5% 16.7%
Gross Margin...
16
2008 2007 2006 2005
Revenue
($ millions)
870 859 752 686
Change in
Revenue
1.3% 14.2% 9.6%
Gross Margin 81.2% 81.7% 85%...
17
Market Share
Expedia is the market leader with a 26% share as of July 2008.
18
SWOT
Strengths
Broad product portfolio
Global reach
Large scale of operations
Weaknesses
Termination of hotel deal by
R...
Key
Trends
19
People are traveling less
Potential travelers are researching
trips in greater detail
Consumers are giving m...
20
What’s the problem?
21
They appear to be the same
A very substantial number of online shoppers are looking for the same thing: cheaper flights...
22
Brand Irrelevance
Essentials
1. Destination
2. Date
3. Time
Suppliers = Secondary
4. Airlines
5. Hotels
23
Estimated
Monthly Traffic
Traffic
Frequency
Addicts Regulars Passers By
Other Sites Visited
%pop %visits %pop %visits %...
24
Estimated
Monthly Traffic
Traffic
Frequency
Addicts Regulars Passers By
Other Sites Visited
%pop %visits %pop %visits %...
LOOKERS
BOOKERS
Our Objective
Decide to travel Research travel Compare price Book travel
The Purchase Process
DIRECT
27
Site Selection
INDIRECT
Expedia Website
28
Focus on
destination
‘The Three’
Flight, Hotel & Car
Recession
Promo
Removing Fees from
booking
29
How are competitors different?
30
‘The Three’
Flight, Hotel & Car
Recession
Promo
Stay longer get
$$
Personalize
Flight deals
31
‘The Three’
Flight, Hotel & Car
Popular
Destinations
& Interests
32
Personalize
Flight deals
‘The Three’
Flight, Hotel & Car
Highlight
Low Prices
33
They’re not... unless you offer
something different
34
Travel Search
Engine
Collects travel
options from all
aggregators and
suppliers
-- individuals
purchase direct
35
How is Expedia encountered?
Expedia Media Spend
84%
9%
5%2%0%
TV Online Print Radio Out of Home
2008
48%
23%
5%
24%
0%
2009 (YTD)
$15,460,254 $59,343,...
Agency History
Agency Location Tenure Expedia
LA/NYC 1999 - 2006
“Enjoy Your
Trip”
Southfield,
Mich
2006 - 2009
“Go With
C...
38
Expedia TV
PRICE DESTINATION
39
Expedia NFL TV
Little Association with Expedia.
Research found that 60% of 170 Million NFL fans don’t live in the city ...
40
Expedia Print
2007: SERVICE 2008: BRAND
Benefits of Size
for the customer
Expedia Brand
CAMPAIGN I: GO LIKE A PRO
• Tapped football fans who don’t live in the city of their favorite teams
CAMPAIGN...
Priceline Media Spend
88%
1%
8%
3%0%
TV Online Print Radio Out of Home
2008
92%
0%3%5%0%
2009 (YTD)
$11,848,307 $29,314,301
43
Priceline TV
Priceline is on your side...
http://www.youtube.com/watch?v=3KjMDc5IxUk
http://www.youtube.com/watch?v=se-...
44
Priceline Brand
CAMPAIGN: PRICELINE NEGOTIATOR
• Price focus creates a single message with a clear benefit for customer...
Orbitz Media Spend
43%
36%
11%
10% 0%
TV Online Print Radio Out of Home
2008
39%
40%
11%
10%0%
2009 (YTD)
$20,254,370 $86,...
Each execution provides a solution to a barrier to purchase travel
(both online and in general)
46
Orbitz TV
Orbitz Brand
CAMPAIGN IDEA: TRAVEL WELLNESS CENTER
Attack travel barriers with a unified tone and feel
• Travel is expensi...
Travelocity Media Spend
62%
2%
36%
0%0%
TV Online Print Radio Out of Home
2008
43%
3%
54%
0%0%
2009 (YTD)
$15,849,598 $70,...
Travelocity TV
49
Focus on the guarantee = Giving customers peace of mind for purchase
http://www.youtube.com/watch?v=V8D9...
Travelocity Brand
CAMPAIGN IDEA: TRAVEL WISH
• The work supports the fact that travelocity is looking out for you
• While ...
51
VLOG Cheaptickets
Deal finder
Cheaptickets TV
Highlight absurd ways to
save money = Celebrating
Thrifty Behavior
http:/...
52
Cheaptickets Print
coupon included!
We salute your cheapness!!!
Cheaptickets Brand
CAMPAIGN IDEA: SALUTE TO CHEAPNESS
• The Campaign focuses on the stories of the lengths some will go to...
54
Kayak TV
Trip Idea # 101 "Visit LA, where the pools are
deeper than some of the people."
http://www.youtube.com/watch?v...
Simple and Direct: Travel Search Engine
55
Kayak Online
Tactical - No brand building
Kayak Brand
CAMPAIGN: TRIP IDEA # XX
• Tone had the adventurous and independent traveler in mind, users who enjoy the play...
57
Whose world are we in?
58
The Power of Affirmation
Which online
travel agency
do you use?
Are you in
your mid
40’s?
Not that it
matters, but
I’m
...
59
.com Travel Conventions
VS.
FUNCTION DREAM
60
.com Travel Conventions
The Guarantee Price Assurance
Beach Finder
Cheap The Best Price Travel + Price
61
Vacation vs. Trip
Vacation Trip
Relaxing
Active
Escape
Gaining new experience
Extensive research and planning of tripLi...
62
The Expedia User: Trippin’
I would rather visit Italy than
New York City any day.
Why lay out on the beach when you
cou...
63
How does Expedia see
themselves?
64
The Mission Statement
“Expedia gets the world going...by building the world’s largest and most intelligent
travel marke...
65
.
“Despite the economic environment we all must cope with these days,
Expedia is engaged in more forward looking initia...
66
How do people see Expedia?
67
Brand Tags
None for:
68
epinions Topline
The Good
Easy to use
Fast
Good deals
No pop-ups
The Not-So-Good
Poor customer service
69
Closing
70
Challenges
Target isn’t choosing a brand - they are choosing a price
They browse but don’t buy
• Nearly half of the onl...
Questions
1. Is there a specific target segment that you see to be the largest opportunity for growth?
2. Moving forward, ...
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  • http://www.expedia.com/daily/promos/deals/nfl/default.asp

    Research fact: “Expedia Runs Sweeps as NFL Travel Sponsor” PROMO Magazine Nov 14, 2007
  • Butler Shine Stern & Partners
    http://www.youtube.com/watch?v=dKeBXISXe60
  • Butler Shine Stern & Partners
    - they also explain the concept - selling unused/empty rooms for cheaper
  • http://www.youtube.com/watch?v=V8D99MWBL88&feature=related
  • http://www.youtube.com/watch?v=LJ_en8XrAvo
  • source: How amazon keeps you clicking, BusinessWeek February 19, 2009
    http://www.businessweek.com/magazine/content/09_09/b4121034637296.htm
  • Trip Idea #39 http://www.youtube.com/watch?v=Z6wOqj7HPCo&feature=related
    Trip Idea #101: http://www.youtube.com/watch?v=8dFcL49ajXs
    The Campaign Inspired A Viral Following
    - http://www.youtube.com/watch?v=1HxxFiPd15M&feature=channel_page
    - http://www.youtube.com/watch?v=D_LItYW752A&feature=channel
  • http://www.redorbit.com/news/technology/565246/travel_search_engine_kayakcom_launches_satirical_ad_campaign_that_goes/index.html
  • Site Science VS. Travel Dreams
  • Site Science VS. Dreams of Travel
  • Site Science VS. Dreams of Travel
  • Site Science VS. Travel Dreams
  • http://www.cbronline.com/companies/expedia_inc?section=companyView
  • Suitcase get smartkc draft5.28

    1. 1. 1 Suitcase Get Smart 5.28.2009
    2. 2. 2 Executive Summary Born in the wake of the dot.com boom of the 1990s, Expedia has emerged to become the market leader in the online travel agency category. The company has an extensive brand portfolio that allows it to cater to different market segments. Expedia has been financially successful and stable until very recently in Q4 2008 when the company saw a decline in sales year over year which has continued into 2009. While it is clear that many consumers are traveling less because of the economic downturn, the resulting changes in how people both plan and conduct travel have had a clear impact on the entire online travel agency segment. While Expedia’s business model and marketing efforts have served the company well in the past, present conditions call for new approaches. A big question for Expedia will be that once all suggestions are on the table, will they the plunge as change conducting marketing as they know it?
    3. 3. 3 Expedia, Inc. is an online travel company. The Company makes travel products and services available from a variety of large and small commercial and charter airlines, lodging properties, car rental companies, cruise lines and destination service providers. The Company’s portfolio of brands include Expedia.com, hotels.com, Hotwire.com, the TripAdvisor Media Network, the Company’s private label programs (Worldwide Travel Exchange and Interactive Affiliate Network), Classic Vacations, Expedia Local Experttm, Egenciatm (formerly Expedia Corporate Travel), eLongtm, Inc. (eLong) and Veneretm Net SpA (Venere). The Company is also engaged in offering travel and non-travel advertisers access to the source of traffic and transactions, through various media and advertising offerings. Headquarters Bellevue, Washington Founded 1995 Employees 8,050 Expedia Background
    4. 4. 4 . History
    5. 5. 5 . Primarily known as Chairman and CEO of IAC. Owns a 60% controlling interest in Expedia. CEO of Paramount Pictures from 1974 to 1984 CEO of Fox, Inc. from 1984 to 1992. Reportedly made in excess of $295 million in total compensation for 2006. Barry Diller, Expedia Chairman The Mogul
    6. 6. 6 . Clients Attending: The 411 Client Profile Pic Year of Start School Past Compan y Key Fact People We Know, They May Know Tim MacDonald, SVP and GM Expedia.com 2004 Worked on Hotwire for five years, then Classic Vacations starting in 2007. Very analytical - has a BS in engineering Lee Engel Paul Leonard, VP of Brand Marketing 2009 Worked 16 years for Procter & Gamble. Spent the first eight years in sales and then the next eight in brand management. Halle Hutchison, Director Brand Marketing 2008 Has a reputation as an integrated marketing expert. David Kim, Anna Cornell Elizabeth Dorrance, Media Director 2008 Has worked on brands such as Hasbro and Procter & Gamble. Know for strong quantitative skills. Greg Fischer (two degrees separation) Karen Snepp, Director, Consumer Research 2005 Very strong marketing research background. Has a BS degree in statistics. Lots of CPG experience. David Kim, Lilian Ojeda (two degrees of separation) Brooke Angles, Brand Marketing 2007 NFL Promotion was her pet project. Known for her charm and ability to work well with different partners. David Kim Doug Miller, VP Media Solutions 2004 The visionary known for his drive. David Kim, Eben Strousse The team attending collectively have strong pedigrees, and some have attended the best marketing schools in the nation. They all have experience with big brands and most of them have extensive CPG tenure. Definitely an analytical bunch who are not afraid of numbers. None have been with the company more than five years. Oh, and they know David Kim.
    7. 7. 7 Appeals to the broadest possible range with an extensive range of products across all price points. For the value conscious traveler. Targets luxury travelers seeking a high-touch, customized vacation package. Appeals to drive-to-market travelers with shorter booking windows and make most their bookings over the telephone. Makes travel products and services available on a managed basis to corporate travelers in North America, Europe and Asia. Reaches a broad range of travelers with travel opinions and user-generated content. Brand Portfolio
    8. 8. 8 2008 2007 2006 2005 2004 Revenue ($ millions) 2937.01 2665.33 2237.59 2119.45 1843.01 Change in Revenue 10.2% 19.1% 5.6% 15% -21.2% Gross Margin 78.4% 78.9% 77.5% 77.8% 78.8% Operating Margin -82.7% 19.9% 15.7% 17.6% 10.4% Profit Margin -85.7% 11.1% 10.9% 10.8% 8.9% Although sales growth has been somewhat volatile over the last five years, it has been positive for the last four. Profitability has been both strong and stable. Financial Snapshot
    9. 9. 9 . Brand Portfolio Technology and Continuous innovation Global Reach Breadth of Product Offerings Business Strategy Assets
    10. 10. 10 Q1 2009 Q1 2008 Revenue ($ millions) 635.71 687.82 Change in Revenue -8% Gross Margin 77.4% 77.8% Operating Margin 14.6% 16.8% Profit Margin 6.2% 7.5% Sales declined 8% during Q1 2009, the second consecutive quarter of negative growth. Turn for the Worse
    11. 11. 11 . The Cause Advertising Revenue Increased 15% Accounted for 11% of global revenue Gross Bookings Decreased 11% Stronger driver of overall revenue
    12. 12. 12 . Brand Portfolio Expedia.com was named “Best Website” by Zagat in their 2009 U.S. Hotels, Resorts and Spas Survey. As part of its “Free Nights and No-Fee Flights promotion, Expedia.com waived all booking fees on all flights booked on or before May 31 and offered travelers their last night free on stays of three, four or five nights at more than 700 hotels worldwide Technology and Continuous innovation Expedia.com enhanced its hotel search results display, with additional geographic radius for searches in smaller cities and neighborhoods. Global Reach Breadth of Product Offerings Expedia.com Q1 2009 Highlights
    13. 13. 13 Competitive Landscape
    14. 14. Competitive Landscape Aggregators Direct Suppliers Travel Search Engine
    15. 15. 15 2008 2007 2006 2005 Revenue ($ millions) 1884.81 1409.41 1123.1 962.66 Change in Revenue 33.7% 25.5% 16.7% Gross Margin 49.8% 44.8% 35.3% 27.4% Operating Margin 15.4% 9.8% 5.5% 3.7% Profit Margin 10.3% 11.1% 6.6% 20% Business Snapshot Headquarters Norwalk, Connecticut Founded 1998 Employees 300 priceline.com Incorporated is a global online travel company that offers its customers a range of travel services, including hotel rooms, car rentals, airline tickets, vacation packages, cruises and destination services. Internationally, the Company offer its customers hotel room reservations in over 75 countries and 27 languages. In the United States, the Company offers its customers the ability to purchase travel services in a manner or the opportunity to use the Name Your Own Price service, which allows the customers to make offers for travel services at discounted prices. The Company is also engaged in offering financial services through Priceline Mortgage Company LLC.
    16. 16. 16 2008 2007 2006 2005 Revenue ($ millions) 870 859 752 686 Change in Revenue 1.3% 14.2% 9.6% Gross Margin 81.2% 81.7% 85% 85.3% Operating Margin -27.4% 4.9% -15.7% -60% Profit Margin -34.4% -9.9% -19.4% -56.6% Headquarters Chicago, Illinois Founded 2001 Employees 1590 Business Snapshot Orbitz Worldwide, Inc. is a global online travel company that uses technology to enable leisure and business travelers to search for and book a range of travel products. The Company’s brand portfolio includes Orbitz, CheapTickets, the Away Network and Orbitz for Business in the Americas; ebookers in Europe, and HotelClub and RatesToGo based in Sydney, Australia, which have operations globally. The Company provides customers with the ability to book a set of travel products, from over 85,000 suppliers worldwide, including air travel, hotels, vacation packages, car rentals, cruises, travel insurance and destination services, such as ground transportation, event tickets and tours. Orbitz.com is an online travel Websites in the United States. Orbitz is a full-service online travel company that offers customers the ability to book an array of travel products and services from suppliers on a stand-alone basis or as part of a dynamic vacation package.
    17. 17. 17 Market Share Expedia is the market leader with a 26% share as of July 2008.
    18. 18. 18 SWOT Strengths Broad product portfolio Global reach Large scale of operations Weaknesses Termination of hotel deal by Ryanair Legal proceedings Opportunities Growing presence in the Asia Pacific market Accretion through acquisitions Growing US online travel market Threats Dependence on the airline industry Pressures in supplier networks Intense competition Economic slowdown in the US
    19. 19. Key Trends 19 People are traveling less Potential travelers are researching trips in greater detail Consumers are giving more weight to the opinions of fellow travelers in making vacation decisions
    20. 20. 20 What’s the problem?
    21. 21. 21 They appear to be the same A very substantial number of online shoppers are looking for the same thing: cheaper flights. When brand loyalty is easily trumped by price how can you give yourself a leg up?
    22. 22. 22 Brand Irrelevance Essentials 1. Destination 2. Date 3. Time Suppliers = Secondary 4. Airlines 5. Hotels
    23. 23. 23 Estimated Monthly Traffic Traffic Frequency Addicts Regulars Passers By Other Sites Visited %pop %visits %pop %visits %pop %visits 10.1 M Rank 76 <1% 2% 40% 69% 60% 29% mobissimo, cfares, onetime, cheapair, bookingbuddy, smartfares 5.2M Rank 199 <1% <1% 40% 69% 60% 31% owebd, mobissimo, infoandinsight, priceslinecruise, betterbidding, cfares 4.4M Rank 247 <1% 1% 38% 66% 62% 33% mobissimo, cfares, travelgrove, faredetective, atiflights, cheapair 5.5M Rank 185 <1% 1% 41% 70% 59% 29% travel-savings.com, igougo, cfares, mobissimo, lastminute, airfare, faredetective 2.8M Rank 430 <1% <1% 35% 63% 65% 37% mobissimo, cfares, faredetective, cheapair, travelgrove, smartfares 5.3M Rank 196 <1% 1% 26% 51% 74% 48% faredetective, cfares, vayama, airfare, travelprove, travelation, mobissimo BESIDES TRAFFIC - ALL THINGS ARE BASICALLY EQUAL
    24. 24. 24 Estimated Monthly Traffic Traffic Frequency Addicts Regulars Passers By Other Sites Visited %pop %visits %pop %visits %pop %visits 10.1 M Rank 76 <1% 2% 40% 69% 60% 29% mobissimo, cfares, onetime, cheapair, bookingbuddy, smartfares 5.2M Rank 199 <1% <1% 40% 69% 60% 31% owebd, mobissimo, infoandinsight, priceslinecruise, betterbidding, cfares 4.4M Rank 247 <1% 1% 38% 66% 62% 33% mobissimo, cfares, travelgrove, faredetective, atiflights, cheapair 5.5M Rank 185 <1% 1% 41% 70% 59% 29% travel-savings.com, igougo, cfares, mobissimo, lastminute, airfare, faredetective 2.8M Rank 430 <1% <1% 35% 63% 65% 37% mobissimo, cfares, faredetective, cheapair, travelgrove, smartfares 5.3M Rank 196 <1% 1% 26% 51% 74% 48% faredetective, cfares, vayama, airfare, travelprove, travelation, mobissimo NO ONE IS LOYAL TO ANY SITE
    25. 25. LOOKERS BOOKERS Our Objective
    26. 26. Decide to travel Research travel Compare price Book travel The Purchase Process
    27. 27. DIRECT 27 Site Selection INDIRECT
    28. 28. Expedia Website 28 Focus on destination ‘The Three’ Flight, Hotel & Car Recession Promo Removing Fees from booking
    29. 29. 29 How are competitors different?
    30. 30. 30 ‘The Three’ Flight, Hotel & Car Recession Promo Stay longer get $$ Personalize Flight deals
    31. 31. 31 ‘The Three’ Flight, Hotel & Car Popular Destinations & Interests
    32. 32. 32 Personalize Flight deals ‘The Three’ Flight, Hotel & Car Highlight Low Prices
    33. 33. 33 They’re not... unless you offer something different
    34. 34. 34 Travel Search Engine Collects travel options from all aggregators and suppliers -- individuals purchase direct
    35. 35. 35 How is Expedia encountered?
    36. 36. Expedia Media Spend 84% 9% 5%2%0% TV Online Print Radio Out of Home 2008 48% 23% 5% 24% 0% 2009 (YTD) $15,460,254 $59,343,421
    37. 37. Agency History Agency Location Tenure Expedia LA/NYC 1999 - 2006 “Enjoy Your Trip” Southfield, Mich 2006 - 2009 “Go With Confidence”
    38. 38. 38 Expedia TV PRICE DESTINATION
    39. 39. 39 Expedia NFL TV Little Association with Expedia. Research found that 60% of 170 Million NFL fans don’t live in the city where their favorite teams play. http://www.expedia.com/daily/promos/deals/nfl/default.asp
    40. 40. 40 Expedia Print 2007: SERVICE 2008: BRAND Benefits of Size for the customer
    41. 41. Expedia Brand CAMPAIGN I: GO LIKE A PRO • Tapped football fans who don’t live in the city of their favorite teams CAMPAIGN II: GET AWAY DEALS • The current work does not deliver on the tagline • Trying to create a bigger brand, while simultaneously pushing cost CURRENT TAG: GO WITH CONFIDENCE 41 BRAND ICON: SUITCASE • Has no meaning • These days suitcases are associated with extra costs
    42. 42. Priceline Media Spend 88% 1% 8% 3%0% TV Online Print Radio Out of Home 2008 92% 0%3%5%0% 2009 (YTD) $11,848,307 $29,314,301
    43. 43. 43 Priceline TV Priceline is on your side... http://www.youtube.com/watch?v=3KjMDc5IxUk http://www.youtube.com/watch?v=se-orWPMfU4&feature=PlayList&p=89245F9A8AA8362C&index=3
    44. 44. 44 Priceline Brand CAMPAIGN: PRICELINE NEGOTIATOR • Price focus creates a single message with a clear benefit for customers - distinct in category • Additional product benefits all surround price - no booking fees etc • They explain the “why” -- selling unused/empty rooms for cheaper CURRENT TAG: NO ONE DEALS LIKE WE DO BRAND ICON: SHATNER • Creates immediate brand link • Communicates that there is someone that is negotiating on your behalf
    45. 45. Orbitz Media Spend 43% 36% 11% 10% 0% TV Online Print Radio Out of Home 2008 39% 40% 11% 10%0% 2009 (YTD) $20,254,370 $86,753,566
    46. 46. Each execution provides a solution to a barrier to purchase travel (both online and in general) 46 Orbitz TV
    47. 47. Orbitz Brand CAMPAIGN IDEA: TRAVEL WELLNESS CENTER Attack travel barriers with a unified tone and feel • Travel is expensive = book hotel flight together is cheaper • Trouble planning vacations = beach finder - let our experts help you find it • Fear that price will drop after purchase = Price Assurance Solution CURRENT TAG: TRAVEL WELL 47 BRAND ICON: NONE
    48. 48. Travelocity Media Spend 62% 2% 36% 0%0% TV Online Print Radio Out of Home 2008 43% 3% 54% 0%0% 2009 (YTD) $15,849,598 $70,886,253
    49. 49. Travelocity TV 49 Focus on the guarantee = Giving customers peace of mind for purchase http://www.youtube.com/watch?v=V8D99MWBL88 http://www.youtube.com/watch?v=NTdMZoJ_Vf8&feature=related
    50. 50. Travelocity Brand CAMPAIGN IDEA: TRAVEL WISH • The work supports the fact that travelocity is looking out for you • While they touch on destinations, it’s all about the Treavelocity guarantee CURRENT TAG: YOU’LL NEVER ROAM ALONE 50 BRAND ICON: TRAVELING GNOME • Is looking out for you
    51. 51. 51 VLOG Cheaptickets Deal finder Cheaptickets TV Highlight absurd ways to save money = Celebrating Thrifty Behavior http://www.youtube.com/watch?v=LJ_en8XrAvo
    52. 52. 52 Cheaptickets Print coupon included! We salute your cheapness!!!
    53. 53. Cheaptickets Brand CAMPAIGN IDEA: SALUTE TO CHEAPNESS • The Campaign focuses on the stories of the lengths some will go to save money, positioning Cheaptickets as an easier solution CURRENT TAG: THERE’S A BETTER WAY TO FLY CHEAP Print: The less you pay, the better it feels. 53 BRAND ICON: NONE
    54. 54. 54 Kayak TV Trip Idea # 101 "Visit LA, where the pools are deeper than some of the people." http://www.youtube.com/watch?v=8dFcL49ajXs
    55. 55. Simple and Direct: Travel Search Engine 55 Kayak Online Tactical - No brand building
    56. 56. Kayak Brand CAMPAIGN: TRIP IDEA # XX • Tone had the adventurous and independent traveler in mind, users who enjoy the playful tone • Doesn’t deliver on unique benefit of the search engine CURRENT TAG: MORE OPTIONS. MORE SAVINGS. MORE RESULTS LIFE’S A TRIP 56 BRAND ICON: NONE
    57. 57. 57 Whose world are we in?
    58. 58. 58 The Power of Affirmation Which online travel agency do you use? Are you in your mid 40’s? Not that it matters, but I’m curious,are you white? I love a learned lady. Did you finish college? Do you have a professional job? Is your household income slightly above $100,000? Do you live in an urban area? I know you don’t have kids, but are you married? Yes! Yes! Yes! Yes! Yes! Yes! Yes! Yes! Yes! Yes! Yes! Yes! Yes! Yes! Yes! Yes! Yes! Yes! Yes! Yes! Yes! Different faces. Different brands. Still all the same.
    59. 59. 59 .com Travel Conventions VS. FUNCTION DREAM
    60. 60. 60 .com Travel Conventions The Guarantee Price Assurance Beach Finder Cheap The Best Price Travel + Price
    61. 61. 61 Vacation vs. Trip Vacation Trip Relaxing Active Escape Gaining new experience Extensive research and planning of tripLittle to moderate research and planning of trip
    62. 62. 62 The Expedia User: Trippin’ I would rather visit Italy than New York City any day. Why lay out on the beach when you could go scuba diving instead? I don’t need a tour guide, I’ll find my own way. I loved Greece, but I still have so much more of Europe to see. France is next. It was so cool meeting that guy who went to Budapest last year just like I did. I don’t meet too many people who’ve made that trip. I should check out that new travel site Dana mentioned. I need to remember to cancel my subscription to the Chronicle. Why pay when it’s free online? I should check my eBay. I can’t wait to see the new exhibit at MOMA.
    63. 63. 63 How does Expedia see themselves?
    64. 64. 64 The Mission Statement “Expedia gets the world going...by building the world’s largest and most intelligent travel marketplace.” This statement reflects our fundamental role in facilitating travel, whether for business or for pleasure, as well as our commitment to providing travelers with the best resources to serve their travel needs. In doing so we leverage Expedia’s critical assets our global reach, our brand portfolio and our breadth of product offering and we take advantage of our growing base of knowledge about our destinations, suppliers and travelers based on the unique position we maintain in the value chain.
    65. 65. 65 . “Despite the economic environment we all must cope with these days, Expedia is engaged in more forward looking initiatives than ever. The test for us will be not in maximizing profitability at the cost of improving our services, but instead in the ground we gain competitively over the next years, both in extending our leadership and making true gains in the customer experience. This will be what differentiates us from others and is the key mission of the company.” “Our results for the first quarter, especially the improved momentum in transaction and hotel room night volumes, prove that Expedia can successfully drive unit growth despite an undeniably difficult environment. We effectively managed our cost base, reducing marketing spend significantly even while taking unit share. Our global realignment of resources is well in motion, which we believe will only improve our operational effectiveness and efficiency over time.” Execs on Present Performance
    66. 66. 66 How do people see Expedia?
    67. 67. 67 Brand Tags None for:
    68. 68. 68 epinions Topline The Good Easy to use Fast Good deals No pop-ups The Not-So-Good Poor customer service
    69. 69. 69 Closing
    70. 70. 70 Challenges Target isn’t choosing a brand - they are choosing a price They browse but don’t buy • Nearly half of the online traffic consists of people who check-out the hotel/fare option at the site and then go directly to the supplier to get a better deal, or avoid paying the $5 booking fee. (Chicago Tribune Feb 2009) The final product experience isn’t with Expedia – it’s based on the airline or hotel • Unless there is a BAD experience, then it’s all up to EXPEDIA to solve 3. Economic downturn • People are traveling less and researching the details of their trip even more
    71. 71. Questions 1. Is there a specific target segment that you see to be the largest opportunity for growth? 2. Moving forward, how integral of role will the NFL play in marketing? 3. Knowing that every aggregator site appears to be the same, what do you perceive your competitive edge to be? 4. Given that your customers product experience ends as soon as they book the flight - have you considered ways to enhance that experience? Or take it offline?? • I think there are cafes, or something that is offline. Confirm... 6. In your mind, what does the suitcase represent? • What is the benefit of the suitcase to your customers? • What would you like it to symbolize that you’re not communicating today? 71

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