Staying Ahead of the Disruptors

in the Hospitality Business

Erich Joachimsthaler

Founder & CEO

November 2015

Vivaldi Partners for Holcim - 13

A brand is a promise… NOT lipstick on a gorilla Erich Joachimsthaler, CEO Vivaldi Partners Group

“ ”

The Third Place

$3.84 $1.75

Mom & PopCoffee Shop

Coffee Coffee

Strong brands continually outperform

the market

60

80

100

120

140

160

180

200

220

240

260

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Total Return to ShareholdersIndex

MSCI World

Top 40 BrandPortfolio

73%

Customer Experience & Brand Value

as Percentages of Enterprise Value

0

5

10

15

20

25

2003 2005 2007 2009 2011 2013 2015 E

Customer

Experience

Brand

Brand

Customer Experience

%

Cornell Study on the Power of Brands

in Hospitality

Gross operating

profits per room

+2.85%

Occupancy Rate

+6.31%

RevPAR

+4.43%

Source: Yi-Lin, Tsai, Chekitan S. Dev, Pradeep Chintagunta, 2015

Awareness

Image

Advertising

Relevance

Differentiation

Emotionalization / 360

Degree Comms

Value Exchange / Utility /

Substance

Technology, Data &

Analytics

Tech

Mad Men Branding Strategic Brand Management

Building Brands in the Digital Age

Inside-out Outside-in

Mission:

Become world’s leading provider of premium products

and premium services for individual mobility

PARKNOW

Finds an available

public parking

space through GPS

installed

PARKATMYHOUSE

A social network

of private parking

garages for an hour

or for a penny

CHARGEPOINT

Automatically finds

a location of where

to swap the battery

DRIVENOW

Pay per use,

billed by the minute

Improve People’s Life

Solve Something

Enable People

Deliver Value

Help Manage Their Lives

Fit Into Their Lives

Give People Time Back

A BRAND A STAND

PURPOSE

WHYWHAT

Point of Difference

Competitive

Employees

Consumers

Communications

Loyalty

Point of View

Distinctive

Missionaries

Advocates

Communities

Love

“Be more”“Do more”

SOURCE: REIMAN, 2013

Essence

Purpose

Values &

beliefs

Character

Ambition

Promise

Expression

Self-Expression

What we sell is the ability for a 43-year-old accountant to dress in black leather,

ride through small towns, and have people be afraid of him.

Harley Davidson executive, quoted in Results-Based Leadership

Self-Expression: Exclusivity Matters Less

67%

2014

52%

2015

Self-Reward: Emotional Benefits

Self-Reward is Becoming More Important

85%Quality

78%

Authenticity

80%

Advocacy

62%

Values: Unique, Authentic, Shared,

Real Experiences

78%

Authenticity

80%

Advocacy

But There Are Also Surprises….

Experiential luxury 33%+

of luxury purchases

internal values 66% globally

51% luxury as self-reward

Importance of

Word of Mouth 49%

80% care about countries of origin

78% care about authenticity

62% purchase for social reasons

Importance of Quality 86%

Exclusivity matters less (-15%)

Brand Advocacy 80%

SELF-EXPRESSION SELF-REWARD

VALUES:

AUTHENTICITY

Develop a collective understanding of the

power of the brand

Adopt a model of branding and deliver

meaningful value

Tap into major cultural or social tension that

requires resolution

Thank you!

@ejoach imstha ler

e j@viva ld igroup.com

Erich Joachimsthaler, Ph.D.

/ Founder & CEO of Vivaldi /