3. Our strategies
suggest to……
define potential buyers
expose people to Nespresso
coffee makers
expand market sales of coffee
machines
4. HOTEL BUSINESS OVERVIEW
• percentages of revenues of hotels that are generated by business trips
A landmark PricewaterhouseCoopers study has found the U.S. meetings
industry 250 million room nights to the hotel industry in 2009.
Source: PricewaterhouseCoopers
5. OUR STRATEGY IS
To target hotels that feature
business travelers
association groups & corporate meeting planners/attendees
leisure travelers, families & couples seeking full-service and luxury-class
accommodations
6. SELLING COFFEE MAKERS TO HOTELS……
according to hotels’ average occupancy rate & room numbers
Occupancy rate
units of coffee makers
How can we determine the probability that hotel guests will buy in- room coffee
machines?
Examples:
One French Hotel by central park, they has 800 rooms, they have potentially buy 800
coffee machines. However, they are not always full. Only by 80%. And about 90% of their
guests are from Europe. .9*.8=.72 which means that .72*.8=0.576
Your estimate is that they will buy 576 coffee machines which is based on the
tourists demographics.
7. THE HOTEL GUEST PROFILE
--RESOURCES FROM MARRIROTT HOTELS & RESORTS
8. DEMOGRAPHICS OF COFFEE MACHINES
BUYERS
Source: HFN, 71(40): 100, October 06, 1997. ISSN: 1082-0310
9. DEMOGRAPHICS OF COFFEE MACHINES
BUYERS
Source: HFN, 71(40): 100, October 06, 1997. ISSN: 1082-0310
10. WHAT WE KNOW FROM DATA ARE……
• Key factors that influence sales of espresso machines are
household income
age ranges
regions
• Hotel guests age ranges from 40- 44 will be the potential buyers of espresso machines
• Income ranges from $50,000 to 74,999 match the mean of household income from hotel
guest profiles, which is $169K.
research indicates that selling coffee machines to hotels with large numbers of business
travellers can be a good market strategy to expand potential buyers of Nespresso
machines.
11. WHAT DOES THE UNIT PER-SHARE BY REGIONS
INDICATE?
Source: HFN, 71(40): 100, October 06, 1997. ISSN: 1082-0310
12. WHAT WE LEARNED FROM LOCATIONS ARE……
• where most coffee drinkers stay
indicating the most likely areas that coffee machines will be sold well.
based on these locations, we can open espresso bars in hotels to
expose people to Nespresso.
13. ESPRESSO
BAR
Give attention to…
• Store Location
• Business hours
• Cost of managing an Espresso bar
• Fast customer service
14. HOTELS ARE IDEAL LOCATIONS
FOR ESPRESSO BARS
- Hotels allow espresso bars to serve customers waiting for valet parking, people
walking by and even drive-up customers.
HOTELS HAVE EARNED PROFITS FROM
ESPRESSO BARS
- Darryl Allan, food-and-beverage manager at the Heathman Hotel, said the
property will have rung up $200,000 in coffee sales by year-end - at a cost of
$16,000.
Hotel & Motel Management, July 5, 1993 v208 n12 p20(2)
