Overview
Tasked with geographically expanding an existing hotel brand into a new country, we chose to focus on St. Regis. The hotel’s intentions to expand to Buenos Aires were halted in 2010 during political turmoil in Argentina. Considering the brand’s previous interest, the stabilized political landscape, and the promising tourism market, Buenos Aires, Argentina, was selected as the expansion location for the St. Regis. The project required extensive market and operational research to detail the realistic elements necessary to expand successfully. The ultimate goal was to plan a seamless expansion that remained true to the St. Regis brand yet facilitated an authentic experience for core St. Regis guests and high-end cultural experience seekers.
Role: Strategy Researcher & Data Analyst
Key Activities
Research Related Markets Within the Country of Expansion: Research Argentina’s luxury hospitality and tourism sectors.
Create a Business Model for the Initiative: Based on brand and market research, build a business model that promotes a successful expansion.
Perform a Situational Analysis: Understand St Regis’ current position and the opportunities and challenges of this specific initiative.
Detail Key Trends in the Luxury Hospitality Sector: Research key hospitality trends and note current best practices.
Understand the Competitors in the Market: Research the competitors currently present in Buenos Aires and the target market they serve.
Complete Customer Segmentation: Perform a demographic, lifestyle, and behavioral analysis of potential target markets and select one to focus on.
Detail the Characteristics of Brand Expansion: After strategically selecting the target market, understand the key characteristics of this specific expansion.
Determine the Value Proposition and Positioning: Determine how to position the hotel expansion to add the most value for guests.
Research the Cost of Development: Understand the hotel development process and create realistic cost projections.
Create a Marketing Mix: After understanding the brand and the expansion goals, determine the proper marketing mix and key activities.
Plan a Promotional Launch: Plan a launch that is true to the brand, creates excitement, and drives booking intention.
Choose Placement/Location: Choose the hotel’s location based on available real estate, competitor locations, and an assessment of surrounding attractions.
Determine Pricing Strategy: After assessing the seasons of tourism and competitor pricing, determine the room pricing strategy.
Complete a Three-Year Income Statement: Create a realistic three-year income statement based on projected revenue streams and costs.
