We have seen that a Harrods Hotel would be a very credible and possible brand extension.
Future will tell us if the Harrods management team will make the dream come true.
If they do, I hope they will have the chance to discover our blog...
mardi 6 décembre 2011
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We have seen that a Harrods Hotel would be a very credible and possible brand extension.
Future will tell us if the Harrods management team will make the dream come true.
If they do, I hope they will have the chance to discover our blog...
We have seen that a Harrods Hotel would be a very credible and possible brand extension.
Future will tell us if the Harrods management team will make the dream come true.
If they do, I hope they will have the chance to discover our blog...
Harrods Hotel - How to do it?
We have seen that a Harrods Hotel would apparently be a good brand extension.
The last & main question remianing is :
HOW TO DO IT ?
In our opinion 2 elements are essential.
- Firstly, as seen previously, the hotel must reflects harrods identity
They should create a very cosy atmosphere. Use the talent of an interior designer as Jacques Garcia who did the Hotel Costes in Paris.
(Hotel Costes - Paris)
 |
COMFY |
 |
ELEGANT |
 |
Antique inspiration / Gold / A bit kitsh |
 |
COMFY |
- Secondly, they should make it small in order to decrease the risks and keep it exclusive.
"To fit the firm's luxurious image, Bulgari says that its hotels must be as upmarket as it is possible to be. Because small is considered more exclusive, Armani and Bulgari plan to launch mostly smallish five-star hotels." (2004)
Moreover, by keeping it small, it would limit the financial risks and it would facilitate exceptional service quality.
the Importance of Sustainability
The last course was dedicated to sustainable luxury.
As stated in the WWF " Deeper Luxury report" (2007)
The Harrods Hotel will need to tale care of those issues and even go beyond expectations...
Indeed the objective is to do more, while many resorts and hotels are currently touting green initiatives like recycling, laundering, and energy-efficient lighting, others are taking their commitment to the longevity of our planet a bit further.
“Sustainability isn’t just about recycling,” said Isla Palenque’s architect, Randall Johnson of 4240 Architecture. “It’s a whole life cycle that includes the inhabitants: the people who live and work there.”
(Johnson R., 2010)
As stated in the WWF " Deeper Luxury report" (2007)
"Many luxury consumers are part of an affluent, global élite that is increasingly well educated and concerned about social and environmental issues. These consumers use luxury products as a symbol of success. The definition of success – and the way it is perceived by others – is changing. Many successful people now want the brands they use to reflect their concerns and aspirations for a better world. This is true not only in Western luxury markets, but, increasingly, amongst the affluent middle classes of Asia, Latin America and Eastern Europe."
Nevertheless, they established a ranking evaluating the environmental and social performances of ten major luxury brand. Results demonstrated that luxury brands were not performing very well compared to other sectors.
"After a £200 million refurbishment project, the Savoy Hotel opened on Sunday with £2.4 million worth of green technology, which could reduce the hotel’s energy bills by up to 50 per cent and reward it with the title of London’s most environmentally responsible luxury hotel, according to management."
(Ward M., 2010)
In the last five years, lot has been done by luxury brand to improve their performances. Even if some initiatives looks more as PR than real ecologic conscience.
Louis Vuitton has installed three bee hives on the roof of its headquarters in Paris in 2009.
True social conscience or Public relation ?
In any case, three bee hives seems a bit small for the most famous luxury brand...
Nevertheless, the hospitality industry has always been one of the precursor in sustainable luxury.
In London, the historic Savoy Hotel has reopened after three years of renovation, claiming to be the most eco-friendly luxury hotel in the city."After a £200 million refurbishment project, the Savoy Hotel opened on Sunday with £2.4 million worth of green technology, which could reduce the hotel’s energy bills by up to 50 per cent and reward it with the title of London’s most environmentally responsible luxury hotel, according to management."
(Ward M., 2010)
 |
| The Savoy's new high-tech efficiency boilers help to reduce the hotel's energy consumption by 40% |
The Harrods Hotel will need to tale care of those issues and even go beyond expectations...
Indeed the objective is to do more, while many resorts and hotels are currently touting green initiatives like recycling, laundering, and energy-efficient lighting, others are taking their commitment to the longevity of our planet a bit further.
(Johnson R., 2010)
Hotel Brand Extension -> A trend in images
Many fashion brand are extending in the hotel business...
ARMANI HOTEL DUBAI:
BULGARI RESORT BALI:
MAISON MOSCHINO MILAN:
MISSONI HOTEL EDINBURGH:
RALPH LAUREN – ROUND HILL HOTEL, JAMAICA
What is the common points of all those "Fashion" hotels ?
Obviously they REFLECT the brand DNA of the brand extended.
ARMANI HOTEL DUBAI:
BULGARI RESORT BALI:
MAISON MOSCHINO MILAN:
MISSONI HOTEL EDINBURGH:
PALAZZO VERSACE GOLD COAST AUSTRALIA
RALPH LAUREN – ROUND HILL HOTEL, JAMAICA
What is the common points of all those "Fashion" hotels ?
Obviously they REFLECT the brand DNA of the brand extended.
the 5 stars bar ***** is raising!
From Paris to London all the great palace are going under refurbishment in order to cope with the opening of new competitors raising the competition.
In paris, the 7 most famous Palaces. From the Four Seasons George V to the Crillon are all going under major refurbishment. Only in Paris, 4 new Palaces, under the direction of Asian groups well reputated for their service quality, will open soon.
London is also experiencing the same trend. The refurbished Savoy Hotel re-opened less than on year ago.
"In less than two months, the Savoy will be open for business after a near three-year closure for a £220 million ($385m) revamp. MacDonald can't wait. His team has already taken reservations for the £10,000-a-night royal suite, the first time that the hotel, which has been host to Sir Winston Churchill, Marilyn Monroe and The Beatles, has had a suite of such sumptuous extravagance.
Soon after the return of the Savoy, which is managed by the Fairmont chain, London will welcome back the Four Seasons on Park Lane. That has been closed for the past two years while it undergoes an estimated £100 million rebuilding but is due to reopen in December.
Next year sees the opening of 45 Park Lane, a new hotel from the group that owns the nearby Dorchester, and the Corinthia, an international chain that is making its British debut. The chic W chain is also entering London next year, with a property on Leicester Square.
Further out, Bulgari will open a luxury hotel amid the boutiques of Knightsbridge while Shangri-La, one of the biggest hotel brands in Asia, is opening its first London property in the new Shard skyscraper.Claridge's and the Berkeley both have expansion plans, while Waldorf Astoria is also making a splash in the capital, with the launch this November of a property in the grounds of Syon Park in west London. All have been emboldened by the strong performance of London's most exclusive hotels during the economic downturn."
(Goodman M., 2010)
(Goodman M., 2010)
So even if the market trend of the London hospitality business is good. A Harrods Hotel will need to offer a class A, service and experience.
Nevertheless, Harrods Hotel would position itself as a boutique hotel, therefore it is not directly competing with the big palace.
The best way to compete is to be different. As Apple does it for example.
lundi 5 décembre 2011
External factors of success
Secondly external factors :
- Steady growth of the hospitality industry in London is planned.
London hotel occupancies rate have been creeping up since early 2000, reaching 82% in 2010. We can imagine that this trend will remain steady with the Olympics coming for example. 
|
Luxury is stable in the old continents, but emerging markets are boosting results. 5 to 6 percent annual growth is planned through 2014 (BAIN) in the luxury industry ! |
 |
Internal factors of success
Different elements could make the Harrods Hotel a big success.
Firstly internal factors :
Firstly internal factors :
Harrods world famous name - Clients would be proud to go to the Harrods hotel especially tourists   |
 |
 Very convenient for people who intend to shop at Harrods. The goods could even be displayed in their room. The Ritz fine jewelry is for example a very convenient shop for the impulsive wealthy buyers of the Ritz. |
 Harrods heritage - In terms of style and decoration it would be easy to create a Harrods Hotel that fits the brand As an example, they even succeed to do it with a box of bitter mints.  |
An option that has already been considered !
Here is a little article we could read in Vogue a bit more than one year ago...
So our idea is apparently not so "Innovative"...
Nevertheless, it confirms us that its is a very credible opportunity as seen previoulsy.
SERVICE IS KEY!
During the managing course we focused a lot on the IMPORTANCE of service.
We saw it in the theory but the speeches of two successful entrepreneurs in the luxury food industry illustrated it in real.
Jennifer from the Pure Package
And Kate from Rare
insisted on the two main elements of their success.
Firstly, the quality of their product.
And secondly, the quality of their service.
The product is of course indispensable but not sufficient today.
It is the service that makes the difference.
Clients of the pure package could probably found good quality food in an organic store, they could also find as tasty food in a restaurant.
It is by its service (personalized meal and home deliveries) that the Pure Package differentiated themselves and conquered a new market.
Kate from Rare explained that every actors of the company need to understand the importance of Service. Obviously waiters for example must be impeccable. But Kate herself is there to answer the request of Rare clients. As a result, clients where delighted and where thanking her in person.
We saw it in the theory but the speeches of two successful entrepreneurs in the luxury food industry illustrated it in real.
Jennifer from the Pure Package
And Kate from Rare
insisted on the two main elements of their success.
Firstly, the quality of their product.
And secondly, the quality of their service.
The product is of course indispensable but not sufficient today.
It is the service that makes the difference.
Clients of the pure package could probably found good quality food in an organic store, they could also find as tasty food in a restaurant.
It is by its service (personalized meal and home deliveries) that the Pure Package differentiated themselves and conquered a new market.
Kate from Rare explained that every actors of the company need to understand the importance of Service. Obviously waiters for example must be impeccable. But Kate herself is there to answer the request of Rare clients. As a result, clients where delighted and where thanking her in person.
Here are a few quotes to remember :
"Be everywhere, do everything, and never fail to astonish the customer."
Macy's Motto
"Here is a simple but powerful rule: always give people more than what they expect to get."
Macy's Motto
"Here is a simple but powerful rule: always give people more than what they expect to get."
Nelson Boswell
"Care more than others think wise. Risk more than others think safe. Dream more than others think practical. Expect more than others think possible."
Howard Schultz, CEO Starbucks Coffee
"Care more than others think wise. Risk more than others think safe. Dream more than others think practical. Expect more than others think possible."
Howard Schultz, CEO Starbucks Coffee
mardi 22 novembre 2011
Harrods Hotel ?
So what could be a good brand extension ?
After analyzing Harrods DNA aswell as its emotional qualities (legendary, opulent, reliable)
We naturally thought about a Hotel brand extension...
Researches show that 2 elements are essential for a successful brand extension :
Firstly, the brand must have a high premium degree, which means being one of the top brands in its category. « The more the brand is coveted by consumers to begin with, the greater its cachet, and the higher its Premium Degree. »
(Leyland P. and Parent M., 2008)
But this is not enough, secondly and most importantly, there needs to be a strong brand adjacency, or « the extent to which a luxury brand extension is symbolically consistent with the values embodied by the core brand. »
And YES again, "Hotel" and "Harrods" are matching.
Two main elements confirm a strong brand adjacency.
Firstly, as Harrods is famous for attracting tourists.
Secondly, as Harrods is famous for its service quality.
After analyzing Harrods DNA aswell as its emotional qualities (legendary, opulent, reliable)
We naturally thought about a Hotel brand extension...
Firstly, the brand must have a high premium degree, which means being one of the top brands in its category. « The more the brand is coveted by consumers to begin with, the greater its cachet, and the higher its Premium Degree. »
(Leyland P. and Parent M., 2008)
And we can say that YES Harrods definitely enjoys that.
Two main elements confirm a strong brand adjacency.
Firstly, as Harrods is famous for attracting tourists.
Secondly, as Harrods is famous for its service quality.
jeudi 17 novembre 2011
Harrod's DNA
The Brand DNA are the main elements that makes a brand unique and stand out from its competitors.
It is very important for a brand to be identifiable by the customer. Even for everyday consumption goods people are ready to pay more for a brand. As an example: Many clients will buy Coca-Cola and not Pepsi even if it might taste the same.
This little study proves it:
Coke vs. Pepsi
In a study from the group of Read Montague published in 2004 in Neuron,[7] 67 people had their brains scanned while being given the "Pepsi Challenge", a blind taste test of Coca-Cola andPepsi. Half the subjects chose Pepsi, since Pepsi tended to produce a stronger response than Coke in their brain's ventromedial prefrontal cortex, a region thought to process feelings of reward. But when the subjects were told they were drinking Coke three-quarters said that Coke tasted better. Their brain activity had also changed. The lateral prefrontal cortex, an area of the brain that scientists say governs high-level cognitive powers, and the hippocampus, an area related to memory, were now being used, indicating that the consumers were thinking about Coke and relating it to memories and other impressions. The results demonstrated that Pepsi should have half the market share, but in reality consumers are buying Coke for reasons related less to their taste preferences and more to their experience with the Coke brand.
And for luxury goods, this is even more true.
Clients buy essentially the experience and the brand rather than the product in itself.
This is why a strong and clear identity is so valuable for luxury brands.
Left is Zara, Right is Balmain...
With fast fashion, high street brands copy high end brands in less than weeks.
Therefore, luxury brands need to give more than just a product.
Quality is also very important. What is sure is that style is not enough today.
Harrods has a strong brand DNA. Everyone knows Harrods. People could directly identify the logo and associate values to the brand.
mardi 15 novembre 2011
An introduction to luxury in design
The first course "An introduction to luxury in design" focused on the one million dollar question :
“ What is luxury ?”
“ What is luxury ?”
Luxury brands communicate to their clients essentially via :
Experiences :
Stores, press, private events, online
Forms :
Fine materials, packaging
Essences :
Myths and dreams
Even though Harrods is essentially an intermediary reseller it is obviously also a brand.
Moreover, Harrods is selling for a long time products on its own name. From food, to wines, gift or even fashion. This is the best evidence to prove that Harrods is not only a middle man but a brand by itself.
Harrods is acting as a quality guarantor. Most people will think: "If it is sold at Harrods it must be good." And there is a reason why client go there and not somewhere else.
So how does Harrods communicate ?
In experiences :
The Harrods experience is probably the essential element. People and especially tourists often visit Harrods as a museum with no intention to buy anything. But they will not resist to buy a little souvenir as a teddy bear or a key holder.
They want to see the biggest and first department store in the world.
Each year more than 15 million people visit the store...
Each year more than 15 million people visit the store...
In form :
The Harrods green bag, the teddy bear, the Christmas lightings, the uniform doorman are all part of Harrods brand identity. People are expecting to see that when they come at Harrods.
In essence :
They are a lot of historical events that contributed to the Harrods myth. From its heritage to the tragically end romance between Lady Diana and Al Fayed's sun.
All those elements make Harrods a unique place to shop.
From a little affordable souvenir to the most expensive luxury product, every client can taste the "Harrods experience".
From a little affordable souvenir to the most expensive luxury product, every client can taste the "Harrods experience".
At the end of the session we discussed what where the emotional qualities of the luxury brand.
- legendary & eternal
- opulent
- reliable
would probably effectively describe Harrods personality.
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