【 Luxury & Fashion Management 】Strategic Plan for Brand Expansion

STRATEGIC PLAN FOR BRAND EXPANSION Bvlgari Hotels & Resorts

LXFM 730 - MARKET STRATEGIES FOR LUXURY | SCAD | SUMMER 2019 Alan Liu | Emmy Davidian | Neha Shah

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PROF. ALESSANDRO CANNATA

TABLE OF CONTENTS The Strategic Plan for Brand Expansion is comprised of the following parts:

01 Company Summary

1.

2.

3.

4.

5.

6.

Introduction Formation Bvlgari heritage Inspired from Roman architecture Locations Current mission statement

02 Company Analysis

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2.

SWOT Analysis PESTAL Analysis

03 Brand Analysis

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2.

3.

4.

Brand Identity Matrix (Aaker) Prism (Kapferer) Brand Equity Pyramid Brand Strategy

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04 Market Analysis 1.

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3.

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6.

A market overview Information on the size of the market Growth potential and opportunities Information on the competitive landscape of the market Core competencies and competitive advantages Key success factors

05 Brand’s Target Consumer 1.

2.

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5.

6.

Gender Age Income Geography Education Any other pertinent demographic information

06

07

Lifestyle and Psychographic Information

Goals and Objectives

1.

2.

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3.

Personality traits Work and leisure activities, including interests, relevant opinions and beliefs, etc.

Luxury Camping by Bvlgari Why Bali Locations in Bali

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08 Strategy Overview

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09 Unique Selling Proposition (USP)

10 Brand Positioning

11 Mix of Luxury Ingredients 1.

Product

2.

Pricing

3.

Placement

4.

Promotion

5.

People

6.

Purpose 02

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THE TEAM ALAN LIU MFA Design Management

EMMY DAVIDIAN MFA Accessory Design

NEHA SHAH MFA Design Management

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Company Summary Bvlgari Hotels & Resorts

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INTRODUCTION Bvlgari Hotels & Resorts

Bvlgari Hotels & Resorts aims to be the leading luxury hospitality collection in the world.

Comprised of a few, selected properties in major cosmopolitan cities and luxury resorts destinations. Bvlgari aims to convey the excitement of the brand, timeless glamour, and its heritage of magnificent Roman jeweller.

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FORMATION Marriott + Bvlgari

WASHINGTON, Feb. 13 - Marriott International, Inc. (NYSE: MAR), one of the world's largest hospitality companies, said today that it was forming a joint venture with Bulgari Spa (Milan: BUL) to launch a new luxury hotel brand, Bvlgari Hotels & Resorts. The new brand will be designed by Bulgari to leverage their striking Italian contemporary style and will offer the finest Italian cuisine, amenities and furnishings available.

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Bvlgari Heritage

Founded in Rome in 1884 by the talented Greek silversmith Sotirio Bulgari, the brand quickly established a reputation for Italian excellence with exquisite craftsmanship and magnificent jewelry creations.

Over the decades, the Bulgari family defined a distinctive style made of vibrant color combinations, exquisitely balanced volumes and unmistakable motifs that pay homage to the Roman roots of the company.

Throughout the years while always revering its Roman heritage, the brand introduced innovations that rewrote the rules of the jewelry universe and started new trends that stood out as icons of contemporary design.

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INSPIRED FROM ROMAN ARCHITECTURE Since 1884 Bvlgari has always found a favored source of inspiration in the monuments and architectural treasures of the Eternal City.

Over the decades, the beauties of Rome have been translated into Bvlgari’s unmistakable jewelry codes, indelibly shaping the brand identity.

Chromatic symphonies, balance of volumes and a flair for geometry brilliantly evoke Rome’s unique coexistence of present and past.

A sense of belonging that is expressed even in the logo’s lettering – BVLGARI – echoing classical Latin inscriptions.

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LOCATIONS

The Bulgari Hotels & Resorts is a collection of luxury hotels in cosmopolitan cities and resort destinations; the creème de la creème of hospitality in the world.

MILAN LONDON DUBAI BALI BEIJING SHANGHAI PARIS (2020) MOSCOW (2021) TOKYO (2022) TOKYO (Restaurant)

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CURRENT MISSION STATEMENT

We Put People First "Take care of associates and they will take care of the customers."

This is our founder’s philosophy and it has made Marriott International a great place to work for more than 85 years. Our people first culture has consistently earned us awards and recognition around the globe. Giving associates opportunities to grow and succeed is part of the company’s D NA.

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SWOT ANALYSIS Strengths 1.

2.

3.

4.

5.

6.

High reputation in luxury industry Highly exclusive and contemporary style of Bulgari The most prestigious locations The combination of local cultures Joint venture(resources) between Marriott and Bulgari Sustainably conscious

Weaknesses 1.

2.

3.

4.

Opportunities 1.

2.

3.

4.

5.

6.

7.

8.

Growth of luxury market Growth of travel industry Growth of IOT, machine learning, AR/VR technologies Growth of social media and other digital platform Awareness of luxury experience Collaboration with cutting-edge technologies Partnership with celebrities and influencers Awareness of Meta-luxury

Lack of recognition in hotel industry Lack of membership or benefit program Not enough worldwide locations High cost of maintenance

Threats 1.

2.

3.

4.

5.

6.

7.

Other current or new competitors (same types) Constantly changing trends.

New directions of investments Changes of consumer demands Growth of sharing economy Lack of financial support Political issues

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Political Political chaos and failure to form a stable coalition government has caused the problems in Italy. Despite several weeks of prolonged discussions and negotiation, an agreement between a euro-skeptic populist group and pro-EU establishment lawmakers have failed to materialize, leaving the country in a deep political and economic crisis. Making Italy a weak economic country.

Italy ranks among the countries with the most significant debt—around 2.3 trillion euros—and has a been facing a double-digit unemployment rate since 2012.

A clear mandate to pro-EU groups is expected to soothe the situation, but a victory for anti-EU parties may deepen the crisis, while hung results may see fresh attempts at coalitions.

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Economic The global luxury hotel market size was valued at USD 83.10 billion in 2017 and is anticipated to expand at a CAGR of 4.3% over the forecast period.

- Corporate events - Corporate Stays - Leisure Travel - Hosting of Sports Events - Sports Team All play a huge roll in the success of luxury hotels and resorts Key players in the market include Marriott International, Inc.; Shangri-La International Hotel Management Ltd.; InterContinental Hotels Group; AccorHotels; Taj Hotels Palaces Resorts Safari; and Four Seasons Hotels Limited.

One of the most popular global brands under the Marriott group is the Bulgari Hotels & Resorts along with the Ritz- Carlton, JW Marriott, Sheraton, and Westin to name a few.

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Social

Bvlgari Hotels and Resorts takes pride in being involved with the local community and culture. Social commitment is a key part of Bvlgaris identity. The company respects equality and diversity, embracing the highest standards of ethical behavior.

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Social Since 2009, Bvlgari and Save the Children have worked together to help children and young people in need, a collaboration that has benefitted over two million so far

In 2009, Bvlgari decided to take action on behalf of disadvantaged children around the world, as too many children are unable to fulfill their own aspirations because their lack of education perpetuates the cycle of poverty.

Partnering with Save the Children, Bvlgari launched a campaign of unprecedented ambition and scope, in which part of the proceeds from the sale of Save the Children jewelry – custom designed by Bvlgari – is donated to the charity.

Culture 15

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BULGARI LONDON

Social

BULGARI BALI

TRI HITA KARANA “Tri Hita Karana” is a Balinese life philosophy based on the human relationship with God (the spiritual environment), the human relationship with the community (the social environment) and the human relationship with nature (natural environment. Bulgari Hotels and Resorts takes pride in honoring this philosophy.

PRIVATE SCREENING ROOM The Screening Room, dedicated to Sir Richard Attenborough, is a unique 47-seat cinema at Bvlgari Hotel London. Offering the ultimate exclusive experience. A curated library has over 300 new and classic films. As well as hosting film premieres and private screenings, the multi-function room is ideal for press events and corporate presentations.

Community 16

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Environment

Bvlgari takes concrete initiatives to protect the environment, fight climate change and preserve natural resources. The Group seeks to actively drive continuous improvement of environmental conditions to benefit its customers, employees and the broader community.

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Environment

LIFE (LVMH Initiatives For the Environment) offers a systemic approach to environmental issues and prioritizes action areas that are closely linked to the challenges that the luxury industry faces. Bvlgari's environmental commitment is expressed in its Environmental Policy, signed by the CEO. The Policy highlights the main environmental targets and projects on which Bvlgari is focusing.

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Environment

The Bvlgari Hotel Milano, sensitive as always to

The Bvlgari Hotel Beijing is proud of its

environmental issues, is proud of its initiatives

variety of practices in the interest of

in the interest of sustainability: from candles

sustainability, such as state-of-the-art

made of recycled wax to the restitution of

insulation from thermal conditions, harvest of

containers to suppliers for reuse; from

rainwater, LED lights in all areas to save

low-consumption light bulbs to 98%

power effectively and computer controlled

biodegradable detergents; from bedding in

systems that switch off lights and draw

certified organically-grown and ethical cotton

curtains when the guests leave the room.

and linen to biodegradable laundry packaging.

Green Initiatives 19

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Technological

Marketing and advertising has become accessible to everyone. Bvlgari Hotels and Resorts is active on social media.

Facebook Twitter Instagram

You can also learn about the company through its website and book your next stay.

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Art & Literature Bvlgari Hotels and Resorts has a blog section in their website. This section is dedicated to inform their guests and potential guest of local art exhibitions, and events within the community.

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BRAND IDENTITY MATRIX

Value proposition: Luxury experience by conveying excitement of the brand.

Relationships: Trusting, luxurious, welcoming, strong, positive.

Position: Bvlgari takes pride in being a luxury hospitality brand.

Expression: Outstanding Roman heritage in architecture and Italian cuisine.

Brand Core: To convey the excitement of the Bvlgari brand, timeless glamour, and its heritage of magnificent Roman jeweller.

Personality: Empathetic, Ethical, Humanitarian, Uber, Distinctive, Innovative.

Mission & Vision: The brands core values suggest that taking care of their associates would result in their associates taking care of their customers. "Take care of associates and they will take care of the customers."

Culture: Each property is located in the most prestigious area of the destination and strongly references the local culture through a blend of traditional design and dramatic Italian contemporary architecture.

Competences: Bvlgari is good at merging with local culture. They are socially and environmentally aware of the surroundings of their locations.

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BRAND IDENTITY PRISM

Internal Facets:

External Facets:

Brand Physique: Luxurious, inclusive, historical/classical, modern

Relationship Mode: Trustworthy, Loyal, Positive

Customer Reflected Image: Rich, Class, Socially conscious, Elegant

Self Concept: I aspire to deliver a conscious luxury experience

Bvlgari Hotels & Resorts Identity Prism

Culture: Roman, Italian overall but also Regional

Personality: Confident, Sophisticated, Innovative, Perfectionist

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BRAND STRATEGY Distinctive Lexicon The brand takes pride in its Italian and Roman heritage. The ‘U’ in Bulgari was replaced with the roman character ‘V’ in its logo. Elegance of the brand is expressed through the use of sophisticated and local vocabulary in naming the restaurants and spas, e.g. “Il Ristorante”, “La Spiaggia” “Hōseki”, “Il Café”.

Belief System The brands core values suggest that taking care of their associates would result in their associates taking care of their customers.

Unique Revelation Comprised of a few, selected properties in major cosmopolitan cities and luxury resort destinations, each property is located in the most prestigious area of the destination and strongly references the local culture.

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BRAND STRATEGY Brand Rituals

Design BULGARI takes pride in its unique design aesthetic through the mix of traditional design and dramatic Italian contemporary architecture.

Cuisine

Spa

Bulgari creates a menu of international specialties,

Bulgari offers a harmonious retreat to balance the

creatively combining popular local dishes with

body, mind and spirit in elegant Italian style. A

contemporary culinary techniques. The streamlining of

highlight of the Bvlgari experience, and ancient

classic methods in pursuit of an ingenious new paradigm

treatment philosophies and modern architecture

is at the heart of the menu at every restaurant. The

merge together achieving a sense of deep relaxation.

guests are taken on an exceptional culinary journey in

The aim is to offer a holistic spa experience with

dining rooms that have equal parts of refined and

complete concentration to health and wellness.

relaxed, with an effortless sense of glamour.

Analysis and Target Consumer Bvlgari Hotels & Resorts

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MARKET OVERVIEW

Luxury Hotel market will register a 4.5% CAGR in terms of revenue; the global market size will reach US$ 222900 million by 2024, from US$ 171100 million in 2019.

Due to globalization and an increasing disposable income, the traveling and hotel industries experience a positive development and a favorable forecast (Worthington, 2016). According to Bisht and Iqbal (2016), the global luxury travel market is expected to reach $1,154 billion by 2022.

Rise in purchasing power and standard of living are some of the key factors responsible for attracting customers toward luxury resorts.

As more money is being injected into the economy, demand for luxury accommodations for corporate events, corporate stays, and leisure trips is rising.

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FACTORS IMPACTING RISE OF THE MARKET Nowadays, the top five companies make up more than 26.37% market share of the luxury hotels market, and the world's large enterprises are mainly concentrated in North America.

The top five vendors are Marriott International, Hilton, Hyatt Hotels, Four Seasons Holdings Inc. and Shangri-La International Hotel Management Ltd. They respectively took a global market share as 13.59%, 6.59%, 2.53%, 2.41%, and 1.24% in 2017. 

Rise in Travel & Tourism Industry

Growth in Preference for Leisure Travel

In most of the countries, travel & tourism industry generates the major revenue, and rely on this industry for their GDP share. The tourism industry is driven by social, religious, recreational, knowledgeable, and business purpose; and increase in interest among people to experience adventure & entertainment.

Rise in number of travelers globally and change in standard of living fuel the preference for leisure travel. Almost half of the international tourist arrivals are for the purpose of leisure.

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MARKET SIZE Sales of Luxury Hotels Retail Value RSP UK 1,692

IDR Billion- Current 2005-2023

RUSSIA 34,084

FRANCE 1,634 CHINA 30,669 ITAL Y1,073

JAPAN 153

UAE 11,816

INDONESIA 10,097

MARKET PREDICTED GROWTH

Russia

France

China

Japan

MARKET PREDICTED GROWTH

UAE

Italy

UK

Indonesia

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Bvlgari is planning to open 15 new hotels including Paris in 2020, Moscow 2021 and Tokyo 2022.

GROWTH POTENTIAL & OPPORTUNITIES GLOBAL EXPANSIONS

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As a luxurious brand what sets Bvlgari apart is their ability to provide sustainable and cultural one of a kind experiences experience on an elevated level. Bvlgari Hotels and Resorts takes pride in being involved with the local community and culture. Social commitment is a key part of Bvlgaris’ identity.

DUBAI

GROWTH POTENTIAL & OPPORTUNITIES STAND-OUT EXPERIENCES

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Bvlgari is focused on making a positive environmental impact while maintaining its luxurious image. Bvlgari currently uses candles made of recycled wax to the restitution of containers to suppliers for reuse, low-consumption light bulbs , and 98% biodegradable detergents to name a few examples.

GROWTH POTENTIAL & OPPORTUNITIES ENVIRONMENTAL

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GROWTH POTENTIAL & OPPORTUNITIES

Technology Bvlgari is very social media savvy. They have a strong website with a blog section dedicated to inform potential guests as well as guests of events happening within the regions of Bvlgari hotels and resorts. They also have a strong media presence and remain active on Facebook, Instagram, and Twitter.

Artist Collaboration Bvlgari keeps up with the latest trends and collaborates with influencers to create top quality social media content. Bvlgari also feature artists, and chefs in their hotels and resorts during special events. They are very appreciative of the arts, and can use it to their advantage for growth and brand recognition.

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People find it crucial to have their phone on hand when traveling creating more social media awareness.

Increase in travel budget. 1 in 3 travelers plan on traveling more in the near future.

69% of global travelers plan on continuing to try to visit new places in years to come

Reviews are more important than ever only to price as the most important factor considered by travelers looking for accommodations.

TRAVEL TRENDS

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TECH TRENDS TO WATCH Chatbots Amazon's Alexa and Echo, and Google Home, are residence-based examples of chatbots that employ artificial intelligence (AI) to receive and respond to questions with audible, humanlike capabilities.

Robots Guests at the Westin Buffalo who call the front desk for extra towels or toiletries may have them delivered to their rooms by R2D2. Okay, not the actual Star Wars metal droid, but the toothpaste or deodorant you forgot will arrive via a silver robot on wheels that was first put to work in late 2017.

Virtual reality (VR) These computer-generated scenarios that simulate a real-life experience are relatively well-immersed in society; VR technology allows a user to look around in an artificially recreated world.

Augmented reality (AR) AR is often mentioned in the same breath as VR but differs in that AR doesn't recreate real-world scenarios. Rather, it allows you to add virtual components to real-life environments. Think PokĂŠmon GO. Self check-in Face it, waiting in line sucks. Technology for skipping lines - in hotel lobbies and at event registration desks - is ramping up Facial recognition The ability to unlock a device by verifying a person's ID from a digital image or video frame was rolled out to the public on Apple's iPhone X. How about using that technology for event-registration or hotel check-in, or in lieu of a key at your guest room door?

Smart rooms A definition of the term "Internet of Things" (IoT) is inherent to a discussion of smart rooms. The IoT is the interconnection via the internet of computing devices embedded in everyday objects, enabling them to send and receive data.

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Competitive Analysis Although Marriott International’s brand architecture is well-designed and serving different segments effectively, according to the rank of the World’s Most Popular Luxury Hotel Brands 2015, Bulgari Hotels & Resorts (40) were not on the very tops surrounding many same level competitors.

Therefore, Bulgari kept exploring the new market to promote businesses in recent years. We deeply examined those competitors and compared with each other to find out their advantages and disadvantages by analyzing their brand strategies and identities.

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The performance of The Ritz-Carlton and its nearly 40,000 global employees is particularly impressive given that the brand was rated by guests across no fewer than 90 hotels and resorts.

This illustrates how consistency is one of the most critical components in being a successful global luxury hotel brand, and a lack of consistency being a key reason why other brands, such as Starwood’s The Luxury Collection, performed less well.

Furthermore, the majority of The Ritz-Carlton’s hotels are in competitive locations, so where they have done well, they have done very well.

Oberoi Hotels & Resorts achieves second place in the World’s Most Popular Luxury Hotel Brands 2015.

Global luxury chains have made little or no inroads to India itself.

Four Seasons Hotels and Resorts, for example, has only one hotel in the whole of India; fewer than it has in many European cities or even the tiny Republic of Maldives and The Ritz-Carlton is present in only one city too. Equally, the country’s own leading luxury brands – Oberoi, Taj and Leela – have made only modest advances outside India. As a result, Indian hospitality has not made the same name for itself as its South East Asian counterparts.

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Raffles Hotels & Resorts, a brand – dating back 128 years – with one of the oldest pedigrees in the hospitality industry.

Raffles Hotels & Resorts “epitomises enchanting experiences, embodying global sophistication and residential charm. Imbued with heartfelt service that is intuitive and unobtrusive ‘like a gentle breeze’, its hotels are rated as among the best in the world and are elevated as legends and landmarks, beyond mere hotels and resorts.”

The shock result is the 13th place of Four Seasons Hotels and Resorts, which one commentator describes as “five-star familiarity for the homesick plutocrat”.

The data suggests that the Four Seasons – once the byword for impeccable standards – is failing to maintain consistency as its portfolio grows. Despite no fewer than 17 properties placing first in their locations, a sizeable number performed badly enough to diminish the brand's overall ranking.

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Indirect Competition After reviewing the competitors, there are actually still many indirect competitors include restaurants, tourism, and hospitality related industries.

For example, cruise companies might have some target consumers are overlapped and provide similar level luxury experiences.

In addition, a lot of Michelin Star restaurants are also competing with Bvlgari's restaurants. They both are pursuing exclusive dining experiences as well.

Furthermore, more and more vacation rental sharing companies like Airbnb are becoming popular and accepted by most consumers, so those luxury hotels are currently facing variously huge threats and pressures from new indirect competitors. Therefore, as social changes and innovations, luxury brands need to pay more attention to their brands' strategies and envision the future.

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CORE COMPETENCIES MOSCOW

RUSSIA

Exclusivity

Although Bvlgari is globally expanding it is very selective in the countries and regions it is expanding into. Bvlgari is exclusive, and is focused on expanding into regions that are rich in culture and art.

Regional Cultural Knowledge

Bvlgari Hotels and Resorts takes pride in being involved with the local community and culture. Social commitment is a key part of Bvlgaris identity. The company respects equality and diversity, embracing the highest standards of ethical behavior..

CORE COMPETENCIES SUSTAINABILITY

Bvlgari takes concrete initiatives to protect the environment, fight climate change and preserve natural resources.

The group seeks to actively drive continuous improvement of environmental conditions to benefit its customers, employees and the broader community.

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CORE COMPETENCIES

Culinary experience Bvlgari creates a menu of international specialties, creatively combining popular local dishes with contemporary culinary techniques.The guests are taken on an exceptional culinary journey in

Top of the Line Spa Treatments

dining rooms that have equal parts of refined and relaxed, with an effortless

Bvlgari offers a harmonious retreat to

sense of glamour.

balance the body, mind and spirit in elegant Italian style. A highlight of the Bvlgari experience, and ancient treatment philosophies and modern architecture merge together achieving a sense of deep relaxation.

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Key success factors Critical Success Factors for Leading Hotel Brands in Asia: A Case Study of Banyan Tree

After comparing the competitors and understanding the core competencies, we also integrated multiple successful models to distill the key success factors from all of the information.

Overall, there are many potential factors to influence businesses of hotels success, so how can we consider those elements more comprehensively and deeply is vital to brand strategies. For example, put guests as central, pursue quality, prioritize innovation processes, maintain customer relationships, choose competitive locations, provide customized services, and develop sustainable concepts, etc.

Most importantly, the vision of luxury hotels nowadays is to create exclusive and irreplaceable experiences to uncover the niches in the market and concrete the loyalty of consumers by utilizing the heritages, cultural assets, and various collaborations with other potential resources from different areas in our society.

Factors Influencing the Success of Business Model in the Hospitality Service Industry

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DEMOGRAPHIC INFORMATION Demographic: Age - 25-60 Gender - Female Household Income - $180k+ Education - Well educated Socio-economic class - Upper Class & Upper Middle Class Geographic - European, Asian, American

Behavioural: Benefits sought - Luxury experience, access to exclusive places in the city Occasion - Leisure, Business, Special Occasions Usage rate - Occasional

Baby Boomers (aged between 51-69) build the majority of luxury travellers (Brisht and Iqbal, 2016). Popular reasons for traveling, especially within this consumer segment, are Second Honeymoon, Eco tourism, medical tourism, and adventure tourism. However, young travellers (aged 25-35) build a constantly growing segment. Old Millennials are most likely to spend money on luxury holidays (McGivney, 2016). Not only Millennials, but an increasing number of female ultra-high networth individuals spend money on luxury holidays (Barnato, 2016).

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PSYCHOGRAPHIC

VALS typology Experiencers. These consumers are the high-resource group of those who are motivated by self-expression. They are the youngest of all the segments, with a median age of 25.

They have a lot of energy, which they pour into physical exercise and social activities. They are avid consumers, spending heavily on clothing, fast-foods, music, and other youthful favorites, with particular emphasis on new products and services.

Achievers. These consumers are the high-resource group of those who are motivated by achievement. They are successful work-oriented people who get their satisfaction from their jobs and families. They are politically conservative and respect authority and the status quo. They favor established products and services that show off their success to their peers.

Personality Upscale, sophisticated and discerning travellers, need for uniqueness

Beliefs Open-minded, Progressive, Intellectual, Globalist

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Products and Value Proposition Bvlgari Hotels & Resorts

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Introduction A travel experience where stunning nature meets modern luxury. A way to experience the untamed and completely unique parts of the world—without having to sacrifice creature comforts. The way we travel has changed. We no longer want a generic, one-size-fits-all vacation. We want to explore on our terms and immerse ourselves in local culture, and we no longer just want to simply witness nature—we want to live in it.

Introducing a new, meaningful and personalized way to travel featuring luxury outdoor accommodations, exceptional dining, and locally authentic experiences connecting person, community, and environment. Bulgari aims to rewriting the rules of outdoor adventures, one extravagantly-furnished tent and RVs at a time.

Each outdoor accommodation and culinary experience is inspired by our rich Roman heritage. Keeping sustainability our top goal for this venture, we work with locally sourced produce.

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Goals & Objective Hand-crafted After our previous research and analysis, Bvlgari Hotels already developed lots of new concepts providing local nature experience with opulence to its customers. For example, we found Bvlgari hotel recently launched a new bicycle and picnic experience, a reimagining of the classic summertime picnic, which is merging opulence with nature and is also similar to our camping concept.

Moreover, the upcoming trend of “glamping” which is a portmanteau of glamorous and camping and describes a style of camping with amenities and, in some cases, resort-style services not usually associated with "traditional" camping.

Luxurious

Exclusive

Therefore, Bvlgari’s goal is to rewriting the rules of outdoor adventures and travel experiences. We want to provide five-star amenities and unbeatable outdoor access where luxury meets nature. The objective of this venture is to provide our guest with a new way to experience the nature and local environment in the ‘Bvlgari’ style. Starting in Bali, the aim is to offer this service to all the locations around the world.

*Photos from Bvlgari hotels picnic experience

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Luxury Camping by Bvlgari The classic camping is reimagined thanks to a new experience that lets guest enjoy the natural environment in Bali in the unique Bvlgari style. Special meals curated based on the local cuisines and top notch service, guest get to be out in the nature and enjoy various activities without compromising the quality of their stay. Based on each guest’s needs, Bvlgari designs a personalized experience for them that caters to their desires and demands.

The guest will have the option to pick an accommodation of their choice, the kind of location they prefer and the activities they like, making it a completely personalized experience.

Locations

Activites (experiences)

Beach Forest Lake side Mountains

Camp fire Dinning Water sports Relaxing (spa) Family adventures

Accommodation Temporary structures: Tents Tepee RVs Pods Domes Yurts Permanent structures: Tree houses Villas Cabins Huts & Cottages Yachts

*Bvlgari Hotels already developed lots of new concepts providing local nature experience with opulence to its customers.

LXFM 730 - MARKET STRATEGIES FOR LUXURY

Why Bali Bvlgari hotels & resorts is already established in Bali, one of the most exclusive destinations in the world, a veritable emblem of the tropical exoticism of the Orient, combining the breathtaking beauty of unspoiled nature of Bali beach resorts with a sophisticated contemporary design born from the encounter between traditional Balinese forms and high Italian style. Bvlgari resorts Bali not only provide the luxury experiences of spa, villa, restaurants but also merge local culture and festivals.

In addition, camping activities in Bali are becoming popular, and there are many mysteriously spectacular camping spots for attracting travelers and adventurers who would love to enjoy the luxury experiences and simultaneously immerse local experiences. Based on the tangible values of expertise of Bvlgari resorts Bali, it would be easy to extend their business to create luxury camping experiences and develop the sustainable hospitality future.

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Locations in Bali

Gunung Agung (Mountains) People may have seen a lot of sights in Bali but the view from the heights is almost entirely different. One fun and relaxing way to achieve this is to hike and set up a camp on Gunung Agung to watch the evening and morning views of the island. The volcano has two campsites on opposite sides of the mountain, each about halfway to the mountain’s peak. The local people of Bali consider Gunung Agung to be a holy mountain, so hiking with a tour guide or local is advised.

Nyang Nyang Beach (Beach) This remote, secluded beach is perfect for a peaceful camping getaway, where people can connect with nature, listen to the sound of waves, plunge into the clear water, and bask in the brilliant sunlight. After pitching tents, take a good long walk along the clean and tranquil coastline or gather wood for a bonfire, before enjoying the sunset.

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Locations in Bali

Danau Buyan (Lake side)

Baliwoso Camp (Forest)

This lake is super popular and has a vast campsite, often packed with eager campers. Despite the popularity there’s a lovely calm atmosphere here, so the campsite and its surroundings are still an excellent place to get away from busy city life. The campsite in Danau Buyan is the best choice for a spectacular lake view.

This ecotourism camp has the whole package, with stunning views, fun activities, education, and the opportunity to contribute to the local community in a number of ways. Located in Pengotan Village, Bangli Regency, the camp was specifically developed to conserve nature and culture by incorporating sustainable benefits to the locals through tourism. The camp keeps gaining popularity for its creativity in entertaining and educating the guests in culture, gardening, and sustainable lifestyle. One of the favorite things to do here is that people can adopt and plant their own tree.

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Strategy overview

The strategic plan for Bvlgari’s brand expansion under the hospitality segment is to introduce a more personalized, unique and experience based camping vacation. The plan is to work with the existing and well established location in Bali to offer additional features of a 2-5 day camping experience. The customers will have the luxury to either plan a hand-crafted, personalised camping experience in addition to their existing stay at the Bali resort or check in at Bvlgari Bali and go just for the camping.

Resources from the Bali resort would be used to ensure the success of this venture. After understanding their current business model and regions, we identify opportunity for Bvlgari The future aim is to be able to provide this luxury camping experience to various locations of Bvlgari Hotel & Resorts. We are going to explore Bvlgari’s selling proposition and marketing 6 P’s: Product, Pricing, Placement, Promotion, People, and Purpose.

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Unique selling proposition (USP) The unique selling proposition of the new service of Bvlgari hotels and resorts is to create exclusive camping experiences for the consumers who would like to immerse in the local cultures and assist the sustainable concepts. Bvlgari hotels are pursuing excellence and taking advantage of their brand heritages to convey unique Rome style of artistic expression on every brand expansion so the new concept of exclusive camping experiences is going to reframe the current business model by utilizing and distilling those existed resources.

Through the market analysis, Bvlgari hotels are going to find the niche and lead the trend to change consumer behaviors and create a brand new definition of camping.

In addition, Bvlgari hotels also take concrete initiatives to protect the environment, fight climate change and preserve natural resources. This new concept keeps sustainability at its core as well.

Brand Heritages Sustainable Lifestyle Exclusive Local Experience

LXFM 730 - MARKET STRATEGIES FOR LUXURY

Brand positioning We believe that the brand new exclusive camping experiences could bring Bvlgari hotels to next level in the industry and reach Meta-luxury to shape a sustainable future. Bvlgari hotels would find the perfect position in the market by their sustainable and exclusive images and they could easily align their promotion with CSR activities. Bvlgari Hotels seek to actively drive continuous improvement of environmental conditions to benefit its customers, employees and the broader community by many sustainable concepts. Therefore, as the trend of sustainability, we believe that Bvlgari Hotels are taking this advantage to build trust in the communities and to attract more new generation customers in the future.

Overall, the refreshing Bvlgari hotels not only create an incredible opportunity for profitability but also could keep having a huge impact on the industry and reinforce their brand heritages. we noticed that there is a new potential trend is to go camping and Bulgari hotels would take this opportunity to attract the new crowd but keeping the same “opulence� intact.

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PLACEMENT Comprised of a few, selected properties in major cosmopolitan cities and luxury resorts destinations Bvlgari will continue to limit the experience to be exclusive and unique in the most elevated level.

Bvlgari luxury experience is limited to 30 outdoor accommodations per night in Bali. These accommodations offer five-star amenities

such as private outdoor spa tubs, roman inspired room service with the best views in Bali, as well as luxurious outdoor access to natural surroundings.

The price range for these luxurious outdoor experiences vary from $400-$700 per night.

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PRICE Ocean Outdoor Experience 15 available $400.00 per night

Forest Outdoor Experience 7 available $500.00 per night

Ocean View Outdoor Experience 5 available $600.00 per night

Forest View Outdoor Experience 3 available $700.00 per night Offering the most luxurious glamping experience, Bvlagri will offer 30 rooms varying in price range and location. The price range for these luxurious outdoor experiences vary from $400-$700 per night.

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PURPOSE & PEOPLE Bvlgari Hotels and Resorts takes pride in being involved with the local community and culture. Social commitment is a key part of Bvlgaris identity. The company respects equality and diversity, embracing the highest standards of ethical behavior. The Purpose of this brand extension being to allow the customer to connect with the local culture and beauty of a region on a more intimate and private level.

Bvlgari also takes concrete initiatives to protect the environment, the group seeks to actively drive continuous improvement of environmental conditions to benefit its customers, employees and the broader community. Offering an outdoor luxurious experience Bvlgari hopes to bring the people of the region and the guests together to create an experience for the guest that would give them a better understanding of what the regional culture is like.

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PROMOTION

EXCLUSIVE EVENT

BLOG

SOCIAL MEDIA

MAGAZINE SPREAD

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LAUNCH PARTY

BLOG

Bvlgari Hotels and Resorts will host a

Bvlgari Hotels and Resorts will post

outdoor luxurious sleepover exclusive

about this event on their website. The

launch party. This party will be used to

launch event will be open to VIP

bring together Bvlgari VIP customers,

customers that regularly stay at Blvgari

bloggers, travel magazine editors from

hotels and resorts. The blog will also

Bali and all over the world. This party

share the pictures after the exclusive

will have elevated campfire food and

launch party, along with a post in

snacks such as S‘mores and hot

regards to what the purpose of the

chocolate. The event will be lit up with

expansion is. This will allow Bvlgari

live music in the background. Guests

loyal customers to learn about the

will then get comfortable in their

extension and potentially book a stay.

campground and witness an exclusive and luxurious outdoor experience first hand.

PROMOTION

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SOCIAL MEDIA

MAGAZINE

Bvlgari Hotels and Resorts will post

Conde

photos from their Exclusive launch

Geographic Traveler, and Wanderlust

party weekend on all social media

Traveler magazine will all be VIP guests

platforms:

Facebook,

at the launch sleepover party. The

Instagram, and Pinterest will be the

magazines will then feature a spread of

platforms of choice. Bloggers, Travel

the wonderful party, alongside the

Magazines, and Celebrities from Bali

images of the outdoor spaces lit up.

and all over the world will also share

There will be an offer code for a

their images on their social platforms.

complementary

Bvlgari will make sure to make light up

booking.

Twitter,

Nasté

Traveler,

Roman

National

Spa

with

the outdoor event and make it very “instagrammable”.

PROMOTION

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GROUP REFLECTIONS Alan, Emmy & Neha

This class has been a great opportunity for the three of us as we got to meet each other and exchange knowledge with people beyond our own majors. We were fortunate enough to be in Savannah during the course period and could meet in person to brainstorm ideas and work on this project together. Each of us have had an equal contribution for each part of the project. We conducted research as a group, ideated and prepared presentations while we met at the Foundry Cafe thrice every week. In the final days even though all three of us were in 3 separate cities, we learned how to work together for an online course while maintaining the consistency and synergy throughout the process.

The course had been really informative and helpful to the three of us as it helped us expand our thought process beyond our selected majors. We got an opportunity to collaborate at each step during this course. It has been a great learning experience so far and we hope to take what we have learnt in the last 10 weeks and build on it further in our own majors and future projects.

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Thank You. Alan, Emmy, & Neha

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REFERENCES https://www.bulgarihotels.com/en_US/ https://www.bulgari.com/en-us/the-maison/about-bvlgari/bvlgari-and-rome.html https://marriott.gcs-web.com/static-files/96ff3df9-b43e-414e-af99-9f8ddd68ff0f https://hotel-development.marriott.com/wp-content/uploads/2018/04/BrandArch2018.pdf https://www.bulgari.com/en-us/the-maison/about-bvlgari/bvlgari-history.html https://www.freemansauction.com/news/history-house-bulgari https://hotel-development.marriott.com/brands/bulgari/ https://www.grandviewresearch.com/industry-analysis/luxury-hotels-market https://hotel-development.marriott.com/brands/bulgari/ https://www.investopedia.com/news/all-about-italian-economic-crisis-2018/ https://www.businessinsider.com/italy-politics-crisis-what-you-need-to-known-2018-5 http://www.ritzcarlton.com/en/hotels/china/hong-kong/rooms-suites/the-ritz-carlton-suite https://en.m.wikipedia.org/wiki/VALS https://www.rajasthantourpackage.co/tours/luxury-india-tour-with-oberoi-hotels/ https://www.fourseasons.com/ https://www.accorhotels.com/gb/brands/hotels-raffles.shtml https://www.alajode.com/work-with-me/

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REFERENCES https://www.grandviewresearch.com/industry-analysis/luxury-hotels-market https://www.slideshare.net/SofiaFominova/bvlgari-hotels-an-imc-plan Donoho, R. (2018). 7 Hotel Tech Trends to Watch. Successful Meetings, 67(4), 14–21. Retrieved from http://0-search.ebscohost.com.library.scad.edu/login.aspx?direct=true&db=buh&AN=133961133&site=bsi-live https://www.alliedmarketresearch.com/luxury-hotel-market https://www.mordorintelligence.com/industry-reports/luxury-hotel-market https://www.marketwatch.com/press-release/luxury-hotel-2019-global-trends-market-size-share-status-opportunities-swot-analysis-and-forecast-t o-2024-2019-02-21 http://0-www.portal.euromonitor.com.library.scad.edu/portal/analysis/tab https://www.rolandberger.com/ru/Point-of-View/Innovations-through-AI-in-the-hotel-industry.html https://www.researchgate.net/publication/286542734_Factors_Influencing_the_Success_of_Business_Model_in_the_Hospitality_Service_Industry https://www.reviewtrackers.com/2016-trends-hospitality-travel/ https://www.lesroches.edu/hospitality-industry/infographics/ http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.1028.711&rep=rep1&type=pdf https://scholarship.sha.cornell.edu/cgi/viewcontent.cgi?referer=&httpsredir=1&article=1295&context=articles

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REFERENCES https://www.dezeen.com/2014/07/16/airbnb-rebrand-designstudio-logo-belo/ http://www.maderasandhill.com/awards https://www.mypremiumeurope.com/travel-news/michelin-restaurants-europe/paris.htm https://www.dfnionline.com/latest-news/pentrade-to-launch-new-cruise-company-27-09-2017/ https://theculturetrip.com/asia/indonesia/articles/most-beautiful-places-to-camp-in-bali/ https://www.instagram.com/p/BLANy2sBQHu/ https://www.instagram.com/p/BTv2ePlF8Q6/ https://www.exclusivedrycleaners.ca/blog/2018/8/15/camping-gear-smells-better-when-you-launder-it-first-future-self-tells-the-present-self https://www.cntraveler.com/destinations/bali https://indonesia.tripcanvas.co/bali/glamping-bali/ https://www.themangotreesbali.com/surroundings/ http://www.7zhou.com/tour-8545.html

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