Softbank China & India Holdings China Travel - Social Marketing Case Study


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Presentation to Eye For Travel - Travel Distribution Conference in Singapore

Case study on orange hotel and how they build a successful china boutique hotel chain in china with zero marketing

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Softbank China & India Holdings China Travel - Social Marketing Case Study

  1. 1. April 2010 China Travel and Social Marketing WILLIAM BAO BEAN SOFTBANK CHINA & INDIA HOLDINGS
  2. 2. “ Beware the social media charlatans” <ul><li>“ Lately it seems I can’t go anywhere without running into a gaggle of social media consultants bloviating about the wonders of social network marketing. Sure, you’ve seen ‘em, too. Slick shake-and-bake “experts” promising to help you leverage the power of Twitter and Facebook to raise your profile and, inexplicably, boost your profits. But scratch the surface on most of these claims and they instantly crumble. Meanwhile, it seems the only people making any money in social media are the consultants themselves .” </li></ul><ul><li>Source: PC World - Robert Strohmeyer; HT </li></ul>
  3. 3. Going shopping for 1 st grade <ul><li>Online listings & directories – 4 </li></ul><ul><li>BBS – 100s </li></ul><ul><li>Mothers – 18 </li></ul><ul><li>Friends – 3 </li></ul><ul><li>Who do you trust to tell you where to put your son for the next 5 years? </li></ul>
  4. 4. Marketing in social media: handle with care <ul><li>Awareness </li></ul><ul><li>Engagement </li></ul><ul><li>Conversation </li></ul><ul><li>Metrics </li></ul><ul><li>Social media comes after the conversation </li></ul><ul><li>Trust and Value </li></ul>Source : Agenda
  5. 5. How do Chinese netizens select a hotel? SELECTING HOTEL Information Comments Inquiry Searching for specific hotel information and filtering from various choices. Looking for existing comments from previous hotel visitors and take their experiences for reference. Directly raising questions online and then waiting for answers from other netizens. Search Engine (Google, Baidu) BBS/REVIEW/SNS (Ctrip, Douban, DaoDao) Q&A Platform (Baidu Zhidao)
  6. 6. Measuring Buzz Source: CIC
  7. 7. Measuring Buzz Note: The pie chart shows the distribution of GROUP Top 20 hotels. Unit: Post; Source: CIC
  8. 8. Measuring Buzz Unit: Post; Source: CIC
  9. 9. Leveraging the China Internet culture <ul><li>Net language - bond </li></ul><ul><li>Net creativity - DIY </li></ul><ul><li>Net cartoon – brand image </li></ul><ul><li>Net star – brand ambassador </li></ul>Source: CIC
  10. 10. Traditional hotel marketing – China style <ul><li>Marketing </li></ul><ul><li>Commission </li></ul><ul><li>Sales force </li></ul><ul><li>High turnover practices </li></ul><ul><li>Paid press </li></ul><ul><li>Membership club </li></ul><ul><li>Large Marketing Expense </li></ul>
  11. 11. Social hotel marketing – China style <ul><li>Reviews </li></ul><ul><li>Bloggers </li></ul><ul><li>Press </li></ul><ul><li>Social media </li></ul><ul><li>User groups </li></ul><ul><li>Membership club </li></ul><ul><li>No Marketing Expense </li></ul>
  12. 12. Orange Hotel: Case Study – social hotel <ul><li>Founded by a marketer </li></ul><ul><ul><li>Ctrip </li></ul></ul><ul><ul><li>Founder Fortune Trip; sold to Sina </li></ul></ul><ul><ul><li>VP marketing eLong/Expedia </li></ul></ul><ul><li>Unique challenges </li></ul><ul><ul><li>Fringe locations </li></ul></ul><ul><ul><li>Budget </li></ul></ul><ul><ul><li>Poor environments </li></ul></ul>
  13. 13. Orange Hotel: Designer boutique…budget <ul><li>Modern Design </li></ul><ul><ul><li>UC Berkeley architect </li></ul></ul><ul><li>Detailing counts </li></ul><ul><ul><li>Double pane glass </li></ul></ul><ul><ul><li>Faux wood floors </li></ul></ul><ul><ul><li>Natural lighting </li></ul></ul><ul><ul><li>Free Internet </li></ul></ul><ul><ul><li>Sheets </li></ul></ul><ul><ul><li>Fish + Rubix </li></ul></ul><ul><ul><li>Blocked calls after 9 </li></ul></ul><ul><ul><li>Hall guards </li></ul></ul><ul><li>Luxury + Emerging middle class </li></ul>
  14. 14. Orange Hotel: Standing apart <ul><li>Unique design elements </li></ul><ul><ul><li>Charlie Chaplin film </li></ul></ul><ul><ul><li>Marilyn Monroe portraits </li></ul></ul><ul><ul><li>Cities of the world </li></ul></ul><ul><ul><li>Chandeliers </li></ul></ul><ul><ul><li>Fish and Rubix </li></ul></ul>
  15. 15. Social marketing 101: Keep it real <ul><li>Provide real value </li></ul><ul><ul><li>Entertainment </li></ul></ul><ul><ul><li>Product </li></ul></ul><ul><ul><li>Status </li></ul></ul><ul><li>Leverage net promoters </li></ul><ul><li>Ongoing relationship, not static </li></ul><ul><li>Tracking </li></ul><ul><li>Proactive reaction </li></ul>
  16. 16. 1. Provide real value <ul><li>Quality product – reasonable price </li></ul><ul><li>Entertain – fish + rubix </li></ul><ul><li>Enable sharing – breakfast bags </li></ul><ul><li>Reward – prizes for return customers </li></ul><ul><li>Promote your promoters – club </li></ul><ul><li>Not about selling, they are already sold </li></ul>
  17. 17. 2. Leverage net promoters <ul><li>Campaigns never end </li></ul><ul><ul><li>Reviews </li></ul></ul><ul><ul><li>Bloggers </li></ul></ul><ul><ul><li>Press </li></ul></ul><ul><li>CCTV </li></ul><ul><ul><li>CEO as ambassador </li></ul></ul>
  18. 18. 3. Ongoing relationship <ul><li>Membership club </li></ul><ul><li>Updating the experience </li></ul><ul><li>Keep it interesting </li></ul><ul><ul><li>Marilyn wall 60% posts </li></ul></ul><ul><ul><li>Fish & Rubix 30% </li></ul></ul><ul><li>Keep it real </li></ul><ul><ul><li>Donate to help needy </li></ul></ul>
  19. 19. 4. Tracking <ul><li>What is the social graph saying? </li></ul><ul><ul><li>The brand and also by hotel </li></ul></ul><ul><ul><li>Competitors </li></ul></ul><ul><ul><li>What other brands do the net promoters like? </li></ul></ul><ul><li>BBS comment tracking </li></ul><ul><ul><li>Google Trends </li></ul></ul><ul><ul><li>CIC </li></ul></ul><ul><ul><li>Sinotech </li></ul></ul><ul><ul><li>Brand Karma </li></ul></ul>
  20. 20. 5. Proactive reaction <ul><li>Managing complaints </li></ul><ul><li>Call out promoters </li></ul><ul><li>Fish dead </li></ul><ul><li>Content </li></ul><ul><li>Mini-bar </li></ul><ul><li>Eco-friendly </li></ul><ul><li>No smoking </li></ul><ul><li>Quiet signs after 9 </li></ul>
  21. 21. Crystal Orange Hangzhou <ul><li>Hangzhou </li></ul><ul><li>RMB400/night </li></ul><ul><li>Westlake lakefront </li></ul><ul><li>In-hotel restaurant </li></ul><ul><li>Dragonfly massage </li></ul><ul><li>“ Best boutique hotel in China 2009” by Hotel Professional Executive” magazine and &quot;American Hotel & Lodging Educational Institute&quot; </li></ul>
  22. 22. The numbers <ul><li>No marketing spend </li></ul><ul><li>93% occupancy </li></ul><ul><li>82% repeat customers </li></ul>
  23. 23. Thank You! William Bao Bean Partner [email_address] +86 139 1789 8171 +852 9131 0218