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Innovative Thinking for Organizational Development Project
Innovative Thinking for Organizational Development Project
Slide 2
The Issue At Hand
To start off, I will first present the issue at hand. The chosen issue is getting employees in Kash Money Logistics offices to subscribe to the idea of using only recyclable materials and to reduce the consumption of single use plastics both at home and in the office.
Slide 3
Reasons as to why I chose this specific issue
I will now provide reasons as to why I chose this specific issue. First, there are single-use plastics all around us and there seems to be no incentive to reuse or recycle these plastics. Secondly, I feel like everyone is waiting on the government or the big corporate platers and manufacturers to do something without them lifting a finger. Third, the natural environment is suffering tremendously as a result of our inactivity and less involvement in the fight to reduce the presence of single-use plastics. Fourth, reducing single-use plastics in the workplace is one step closer to establishing a global culture of awareness and concern for the environment.
Slide 4
How does this relate to me?
So, how does this relate to me? For this, I have 4 reasons. First, I have read and been a part of a community that believes that the world can be made a better place if plastics are eliminated from the natural world. At the moment, marine wildlife is at the mercies of the decisions we make today as humans. As a result, I found that we use a lot of plastics during the day in the workplace, a starting point for an innovative idea to reduce single-use plastics available. From my own experience, people want the convenience of using plastics for single uses without thinking about the consequences such actions have on the natural environment. I also have a desire to contribute positively to the betterment of the natural environment, a goal I can achieve by helping to reduce plastic waste in the environment.
Slide 5
Research
I now move on to the research section. The following is the research I have done in order to attain a final solution to the aforementioned problem: The use of single-use plastics is increasing in popularity across the world. These plastics are toxic to the natural ecosystems that they damage, and they are a disagreeable sight to see. About 43% of the plastics consumed is discarded after only a single use, as per the findings of (Borrelle et al., 2020). Bags, bottles, trays, and food packaging are examples of items that we use on a regular basis. It’s readily available at supermarkets and other retail outlets.
Slide 6
Further Research
It is also important that I mention the following. The use of these plastics has a significant impact on global warming (Haward, 2018). Consumer demand for action on plastic pollution has reached previously unheard-of levels as a result of the disastrous impact of plastic waste on our seas and natural environments. Every day, fresh pledges to minimize plastic waste and enhance product design in order to address “end of life” issues are made by businesses in response to public outcry. Despite the efforts of companies to reduce trash and promote recycling (Jia, Evans, and Van der Linden, 2019), the contents of rubbish bins frequently reveal a different story. It is become an addiction for individuals from all walks of life to engage in plastic pollution, despite the fact that it is a terrible threat to the health of our world.
Slide 7
Research Data
This slide shows a global map of parts of the world where single use plastics have either been fully banned, partially banned, banned under consideration, or not banned at all. It is important to note that Africa and some parts of Europe are leading in the fight, despite being some of the lowest consumers of plastic by volume.
Slide 8
More Research
The global production of plastics versus laws introduced to check and monitor the same and the population increment over time is presented in this chart. The chart shows that global production has increased steadily over the years surpassing the population growth. Laws introduced to curb plastic production have only started to be effected from 2008 to date.
Slide 9
Market Survey
Next, I explain how I arrived at my idea. A market survey in the workplace with 40 employees in different age groups and gender in an attempt to discuss the commitment and interest on people to have less single-use plastics and to contribute to the idea by reducing individual consumption while in the office and at home. About 60% of the participants were highly interest and eager to begin. About 20% were somewhat interested. 15% showed sight interest. 5% were not interest at all.
Slide 10
Empathy Map
Here, I will show how people conceptualize the problem and the proposed solutions.
In the THINK AND FEEL category:
Sustainability is very important
Recycling will make a difference in the world
Single-use plastics are worse than any other forms of plastics
Guilty when there is no opportunity to recycle
In the SEE category:
Climate change and environmental issues disregarded by policy makers
Confusing recycling labels and policies
Not enough people recycling
Organizations encouraging manufacture and use of single-use plastics
Images of marine life affected by plastics
In the HEAR category:
Confusing and unclear recycling labels and rules
Very hard to recycle plastics in the workplace
Climate change issues is a bit confusing
Individual efforts not enough to help reduce single-use plastics
Corporates have a bigger role than individuals
In the SAY & DO category:
Shares posters and news information regarding conservation
Reads rules on recycling
Avoids single-use plastics
Recycles all the time even when unsure
Sometimes goes for convenience above recycling
The PAINS are summarized as:
Recycling rules
Recycling labels
Cost involved
Inconvenience
Time consuming
Hard to find recycling facilities and tools
The GAINS include:
Renewed interest
Help in reducing pollution and waste
Encouraging others to join in creating sustainability
Better understanding of need for recycling
More ways to help the natural environment
The above came from all the surveys and past literature on the subject of single-use plastics and why people continue to choose convenience of using these plastic products over sustainability. An emerging issue is that recycling is still unclear and the rules are confusing.
Slide 11
Problem Definition
In this section, I will provide information on the problem. The overall purpose is eliminating single-use plastics in the workplace and the primary design is to increase recycling and show the need to reduce the use of plastics. The secondary design is to promote a culture of sustainability through recycling and care for the natural environment. The main differentiator is the organizational culture. The organizational culture will impact how and why employees engage in the proposed culture of recycling and reduction of single-use plastics.
Slide 12
Ideation Process
The process involved a rigorous exercise to come up with ideas to implement the proposed cultural change. We were able to narrow down to the following main ideas: Technology, organizational culture, social media, conventional recycling tools and equipment, and social influencers.
Slide 13
Mind Map
Here, I present some of the rigorous and difficult process of thinking and rethinking different ideas to come up with an acceptable solution.
Slide 14
Conventional Ideas
We decided to use technology and mobile apps because of its ability to reach more people and to remain a constant in individual’s life. It also presents the advantage of lower cost, highest impact, innovativeness and uniqueness., and is aligned to organizational goals. Conventional ideas have generally failed to be effective.
Slide 15
Prototyping
This was another very time consuming and high intensity section that saw us come up with ideas and basic functions for the mobile app. We settled on: the use of a dedicated single-use plastic monitor app (iRecycle), specially designed for the organization and its affiliates. The way this will work is that the iRecycle app will help reduce individual plastic consumption and give open-display results for members of the organization to see. The app will then provide calculations and estimates for the entire organization compared to global figures. It will also provide sustainable alternatives that factor in cost and effectiveness given each users individual usage statistics. The idea is to create a culture of recycling and consciousness around the issue of reducing every user’s personal plastic footprint.
Slide 16
Homepage
Here is an improved homepage and the start page in the app showing a user all of the available reuse, recycling, and reducing options.
Slide 17
Description of Prototyping Process
In this slide, I show how we arrived at a suitable idea to link the iRecyle app with the need to reduce single use plastics.
Slide 18
Improvements to the Prototype
After prototyping and testing, we made improvements by synchronizing individual information with the company in order to tally our efforts and come up with performance metrics.
Slide 19
Implementation
Owing to the fact that the iRecycle app already exists, we only saw the need to hire a developer to reprogram the application in order to send individual statistics to the organization and to prioritize a recycling map over other forms of alternatives provided by the mobile app. The developer will provide more directions on how to make the app smoother for people to use it not just for the organizational aim but also for individual journey towards helping the environment. The funding for this would be provided by the organization as a part of its CSR journey and to fulfil its role in the community.
Slide 20
Follow Up
As a part of the follow up, it is expected that the overall culture of the organization will change to include more awareness to individual plastic footprint in the future.
Slide 21
Conclusion
To sum up, a simple every-day problem was taken and converted to an opportunity to make a difference through innovative designs. The prototype mobile app aforementioned will help many people and organizations to realize a vision that many hold dear yet have not been able to achieve. In the entire process, my experience has shown me that if we put in the effort and inventiveness, everything may be converted into something beautiful.
Thank you all for your time. I hope we all benefit from making our spaces better than we found them. I will now take any questions you may have.
Innovative Practices in Social Media Marketing
Innovative Practices in Social Media Marketing: Exploring the Recent Emerging Trends on Four Points Auckland
Name
Course
Code
Instructor
Submission Date
Executive Summary
The tourism industry in New Zealand has experienced considerable growth over the past five years and it is projected to maintain an aspect of growth. This presents opportunities for hotels operating in this region to increase the number of customers that they serve, and ultimately increase their sales revenue. One of the hotels that is looking to take advantage of the market growth in New Zealand in the hospitality industry is Four Points Auckland. The best approach that it can take in relation to marketing is using the social media platform. It is currently using Facebook and Instagram as part of its social media strategy. However, the company is not active on both platforms, and therefore has a low interaction level with its clients. In future, it needs to post regularly, and reply on the comments made by their followers. In addition to that, it needs to utilize the services of influencers, and create content that resonates with its target market to increase the level of interaction and engagement with its clients. The effective utilization of the social media by Four Points Auckland will improve the engagement level with the hotel’s customers and also contribute to an increase in the revenue level of the company.
Table of Contents
TOC o “1-3” h z u 1. Background PAGEREF _Toc79082639 h 4Marketing Environment (current industry climate/trends) PAGEREF _Toc79082640 h 4Brand image and values PAGEREF _Toc79082641 h 4Target market PAGEREF _Toc79082642 h 5Market segmentation PAGEREF _Toc79082643 h 52. Analysis of the Organization PAGEREF _Toc79082644 h 62.1 Marketing Mix PAGEREF _Toc79082645 h 6Product Element PAGEREF _Toc79082646 h 6Place Element PAGEREF _Toc79082647 h 6Price Strategy PAGEREF _Toc79082648 h 6Promotion PAGEREF _Toc79082649 h 62.2 VRIO Analysis PAGEREF _Toc79082650 h 62.3 Digital Competitive Review PAGEREF _Toc79082651 h 82.4 Digital SWOT Analysis PAGEREF _Toc79082652 h 93. Review of Social CRM Strategies PAGEREF _Toc79082653 h 103.1 Speak PAGEREF _Toc79082654 h 103.2 Serve PAGEREF _Toc79082655 h 113.3 Sizzle PAGEREF _Toc79082656 h 114. Social Media Response Protocol PAGEREF _Toc79082657 h 12
1. Background
1.1 Marketing Environment (current industry climate/trends)
The tourism industry is reported as the largest export industry in New Zealand. In 2017, it was reported that the domestic, and international visitors expenditure was NZD$36 billion, and it is reported that by 2025, the revenue from tourism will have increased to NZD$41 billion (Kandampully et al., 2018). However, in 2019, it was reported that the country had recorded a slower growth rate of visitors in comparison to the previous years. An important point to note is that, in the year that ended March, 2018, New Zealand hospitality industry reported a total of $16 billion in terms of international visitors’ expenditures, which was a 9.6% increase from the revenue that was collected in 2017. On the other hand, the revenue generated by domestic visitors in 2018 was $23 billion, a 6.5% increase from 2017.
According to the Ministry of Business Innovation and Employment (MBIE), it was forecasted that the hospitality industry could experience a 4.25% average growth in terms of international visitor expenditure from 2019-2025. An important point to note is that, the drivers in relation to the increase of expenditure by international visitors will be a 3.98% increase in the visitors, and 4.28 in the number of days that international visitors stay in New Zealand (Michopoulou & Moisa, 2019). Even though the revenue collected, and the number of international visitors dropped in 2020 because of the COVID-19 pandemic, it is expected that the hospitality market in New Zealand will pick up in accordance to the projections that were provided by MBIE.
1.2 Brand image and values
Four Points by Sheraton is a multinational hotel brand that is operated by Marriott International. Presently, it has 295 hotels in more than 45 countries, and territories. The hotel’s ambience, and amenities are designed to suit independent travelers who are looking for timeless style and comfort. An important point to note is that, each of the hotels under this brand offers its customers with a sense of familiar, and authentic sense of the local people, while also according them high-quality services that meet their overall needs (Social Hospitality, 2021).
The company’s core values include honesty, uncomplicated services, and comfort. An important point to note is that this is upheld through the provision of high-quality amenities, friendly and genuine services that are meant to ensure that all the guests have a great experience during their stay in one of the Four Points hotels. The style that is offered at this hotel is modern, practical but never trendy. This ensures that the customers in these hotels will find it easy to enjoy the services and amenities offered regardless of whether they are travelling for business, or pleasure purposes.
1.3 Target market
The target market for this hotel are international business travelers. The Four Points hotels are designed in such a manner that business travelers will be in a great position to improve their overall productivity even as they travel. This is facilitated by the hotel providing them with amenities that will increase their level of productivity such as in-room and public space Wi-Fi, and in-room water.
1.4 Market segmentation
The business mainly targets business travelers. This means that from a demographic segmentation, it mainly focuses on single, or independent middle aged travelers (25-50 years) who will stay alone and will mainly spend a few days in one destination for business purposes before traveling to another location (Gil-Soto et al., 2019). It is important to point out that a majority of their rooms can accommodate families, which is an indication that it is also a family-oriented hotel.
2. Analysis of the Organization
2.1 Marketing Mix
Product ElementFour Points by Sheraton is a full service hotel. It mainly offers familiar and friendly services, which ensure that the guests relax and unwind during their stay in their hotels. The range of services that it offers are extensive such as conference rooms, in-room and public Wi-Fi. In addition to that, the hotel provides its guests with locally brewed beers and authentic local flavors for them to sample.
Place ElementAll of the Four Points by Sheraton hotels are located in large cities and the suburbs, near airports or by the beach. This ensures that they are easily accessible for international travelers. The hotels are also close to various amenities that the travelers may require to use such as airports and beaches. The customers can also easily travel to different urban places during their stay in the hotels.
Price StrategyThe hotel mainly utilizes the skimming strategy in relation to their pricing strategy. This means that the products and services are offered at a higher price than the competition (Solnet et al., 2019). The reason for this is that, the hotel associates its products and services with an aspect of high quality and exclusiveness. It is one of the main reasons that they mainly target business travelers.
PromotionIn the digital age, Four Points by Sheraton is mainly using the social media platform for its advertising, public relations and promotional strategy. The main platform that is utilized is Facebook. On its official Facebook page, it has over 166,000 likes and on its Instagram page it has 15,700 followers.
2.2 VRIO Analysis
Resources Value Rare Imitation Organization Competitive Advantage
Four Points has access to cheap capital Yes No Can be imitated by competitors It has not been entirely exploited It is not significant in terms of creation of competitive advantage
Pricing Strategies Yes No They can be imitated The company has an effective pricing analytics system It provides it with a competitive edge over their rivals mainly on its target customers
Attracting consumers in the local and global markets that it operates A successful strategy in terms of successful innovation and localization of products It has been critical for the company’s growth It is difficult to imitate Yes It provides a unique competitive advantage
Brand positioning in relation to its competitors Yes No It can be imitated by its competitors Positioning of the brand is mainly based on the consumer behavior Provides the company with a temporary competitive advantage
Customer Loyalty A majority of the revenue is generated by local customers Firm has invested in creating a strong customer loyalty Difficult to imitate The leveraging of customer loyalty is a good effect It provides the company with a unique competitive advantage
The company has specific resources such as its pricing strategy, customer loyalty, brand positioning and localizing its products that have provided the company with a competitive advantage over its business rivals. An important point to note is that the hotels provides local brews and a state of local ambience for the customers to experience a local, yet unique feel as they travel to different parts of the world (Moro & Rita, 2018). The company has over 45 hotels, and this means that for customers who regularly travel and stay in the different Four Points hotels, then they will have different experiences, which will add to the overall value of their traveling experience. In terms of pricing strategy, Four Points prices its products and services in such a way that they are associated with quality (Stokes, 2018). This means that the customers feel that there is a sense of class in terms of staying at the hotel. These two resources that have been mentioned have contributed to the brand positioning and customer loyalty. In terms of brand positioning, a majority of the customers associate Four Points products and services as being of a relatively high price and of a high quality. This has positively facilitated to the overall increase in the loyalty level of the customers.
2.3 Digital Competitive Review
The Grand by Sky City is located in Auckland, New Zealand. In its Facebook page, there are 13,678 likes, 13,915 people follow their page and 51,447 have checked their Facebook page. The company posts regularly. Its latest post was posted yesterday at 9:30 am, and had nine likes and one share. On the other hand, in its Instagram page it has 389 posts and 2,242 followers. Its last post was three days ago and has 19 likes. The St. Regis Bora Bora Resort has 54,880 people who liked their page, 55,893 followed their page, and and 39,092 people have checked their page. It seems that they post once per month on their Facebook page based on the assessment of the frequency of posting (Unmetric, 2021). However, their pinned post on August 4th has 409 likes, 38 comments and 158 shares. On the other hand, it has 828 posts on Instagram and 94,800 followers. Its last post was made on August 4th and it has 951 likes.
2.4 Digital SWOT Analysis
Strengths Weaknesses
Four points has official pages in different social media platforms such as Facebook and Instagram, and this has enabled the company to interact with hundreds of thousands of people (García, 2021). For instance, its official page in Facebook has over 166,000 likes.
There are brand-consistent messaging and imagery and the use of the company assets such as their brewed beer, and hotel rooms, which can act as incentives and increase the likelihood of customers visiting their hotels.
There are well-written captions above the different images that are meant to encourage engagement with their customers, or potential clients. Four Points does not consistently make posts on its social media platforms. In Facebook in particular it seems to post once per month.
Four Points has failed to scale, or maintain their efforts using its social media campaigns (Pirnar, 2020). Its posts on Facebook, or Instagram do not get a high level of response in terms of likes, or followers commenting on them.
The company lacks the right social media analytics tools that are vital in terms of assisting them to track and monitor their campaign results.
Opportunities Threats
There are opportunities to engage the existing follower base. Facebook has over 166,000 people who have liked the page and Instagram has 15,700 followers, which means that the company can strive to engage them more.
The company can spend money on influencers and social media campaigns to gain new followers whom it will actively engage in their different platforms (Powell et al., 2011).
Four Points by Sheraton should read, and either reply or react to all the comments on their posts. This will increase the overall level of engagement between the company and their followers in different platforms (Yadav & Roychoudhury, 2019).
Social media campaigns such as photo shoots and temporary naming rooms according to fans who have the most likes can increase the interaction between the company and its customers online (Sigala, 2017). Rival competitors can use their social media platforms to provide new offerings to the clients and this could reduce the market share of Four Points by Sheraton.
Failing to understand the customers’ needs and what incentivizes them, and making posts that may not resonate well with them, which can contribute to a decline in the market share for Four Points by Sheraton as they do not understand their customers.
3. Review of Social CRM Strategies
3.1 SpeakFour Points by Sheraton has pages two social media platforms Facebook and Instagram. However, it seems to be more active on Facebook than is the case on Instagram. This is based on the number of posts, and frequency of posts that are made on Facebook in comparison to those on Instagram. However, even though it maintains pages on these two social media platforms, it is not active. For instance, on Instagram, the last post was on July 7th, 2021. The post had 165 likes and eight comments. On the other hand, in Facebook, the last post was made on July 16th and it had 26 reactions and three comments. An important point to note is that in a majority of the posts that its followers have commented on, Four Points by Sheraton did not react, or reply to the comments, or acknowledge the reactions that it has received. Failure to interact with the customers could be an indicator of the low response rate to the posts that they make on the different social media platforms (Chaffey & Smith, 2017). However, if they make regular posts and interact with customers such as by reacting to their posts, answering their questions, and even requesting for their insights and feedback, then they will be able to understand their needs, build a positive relationship and reputation with them, and ultimately improve their brand growth. They should also be involved in the creation, or development of content that their target audience finds appealing and will react, or comment on it, and this will increase the overall interaction level between the customers and the company.
3.2 ServeThese are the different activities that a company will normally engage in to ensure that it is able to actively engage its target customers. For instance, providing the customers with additional information will particularly be beneficial to them, and will result in adding value into their lives. To assist the target audience identify with the products and services that the company offers, they should provide them with regular information of the culture, cuisine and local drinks that are served in different regions (Chaffey & Smith, 2017). It not only provides the customers with information on a range of products and services that the company deals with, but it also assists the customers to gain new information. New offers, or discount rates can also contribute to increased interaction levels between the company and the clients. Furthermore, they should provide their followers with information about the importance of traveling, updates on events in different regions where they have hotels and even new areas that they are expanding to.
3.3 SizzleThis is the last stage in the digital marketing strategy, and it focuses on how a business can be able to build, or enhance its brand name online. An important point to note is that, the aspect of sizzling mainly focuses on the creation, broadening and the establishment of the brand presence in a digital platform. Four Points by Sheraton can use the social media to build its brand presence in the New Zealand market. For instance, it can sponsor different business events to resonate with international travelers who come to New Zealand (Chaffey & Smith, 2017). It can also sponsor sporting teams and individuals who have a global presence such as the Kiwi National rugby team and Israel Adesanya to increase the global presence of this hotel’s brand.
4. Social Media Response Protocol
These are the guidelines that should influence social media response strategy of Four Points by Sheraton. The first step is to read all the posts, or comments that have been made by people in relation to the company’s brand. The next step is to deduce the intention of the individual who posted. If it is a genuine post, or comment, the social media strategists at the company can either respond, or react to it. On the other hand, if there is an aspect of negative feedback, or miscommunication, the social media strategists will respond by providing a clarification, or highlighting how the issue at hand will be dealt with (Sigala, 2018). Finally, if a post was made with malicious intent, the company will choose to address the allegations with facts so as to not ruin the reputation of the company.
3829050-381001724025-485775Social Media post about company’s brand
Social Media post about company’s brand
2657475219710
2381250181610No
0No
2657475191770481012539370Positive Posts or Feedback
Positive Posts or Feedback
1828800106045Are they trolls?
Are they trolls?
5695950211455
19526257545Are they misguided?
Are they misguided?
2907547208958
25412384779No
No
285733885326
19929853800Are they complaints, or unhappy posts?
Are they complaints, or unhappy posts?
2989075121732762250281940No
No
5198713142553Respond appropriately
Respond appropriately
-219075368300Dismiss false allegations with facts if any
Dismiss false allegations with facts if any
3276600920751952625320675Final Verdict (Valid Post)
(Unworthy Post)
Final Verdict (Valid Post)
(Unworthy Post)
87630092710417195092710
References
Buhalis, D., Harwood, T., Bogicevic, V., Viglia, G., Beldona, S., & Hofacker, C. (2019). Technological disruptions in services: Lessons from tourism and hospitality. Journal of Service Management, 30(4), 484-506. https://doi.org/10.1108/josm-12-2018-0398Chaffey, D., & Smith, P. R. (2017). Emarketing excellence: Planning and optimizing your digital marketing. Routledge.
García, C. (2021). Case studies. Best social media strategies for hotels. Inbound marketing Mallorca – E07121 | Amara, ingeniería de marketing. https://www.amara-marketing.com/travel-blog/examples-social-media-hotelsGil-Soto, E., Armas-Cruz, Y., Morini-Marrero, S., & Ramos-Henríquez, J. M. (2019). Hotel guests’ perceptions of environmental friendly practices in social media. International Journal of Hospitality Management, 78, 59-67. https://doi.org/10.1016/j.ijhm.2018.11.016Kandampully, J., Zhang, T., & Jaakkola, E. (2018). Customer experience management in hospitality. International Journal of Contemporary Hospitality Management, 30(1), 21-56. https://doi.org/10.1108/ijchm-10-2015-0549Michopoulou, E., & Moisa, D. G. (2019). Hotel social media metrics: The ROI dilemma. International Journal of Hospitality Management, 76, 308-315. https://doi.org/10.1016/j.ijhm.2018.05.019Moro, S., & Rita, P. (2018). Brand strategies in social media in hospitality and tourism. International Journal of Contemporary Hospitality Management, 30(1), 343-364. https://doi.org/10.1108/ijchm-07-2016-0340Pirnar, I. (2020). Innovation management in the international hotel industry. The Routledge Companion To International Hospitality Management, 296-308. https://doi.org/10.4324/9780429426834-29Powell, G., Groves, S., & Dimos, J. (2011). ROI of Social Media: How to improve the return on your social marketing investment. John Wiley & Sons..Sigala, M. (2017). Collaborative commerce in tourism: Implications for research and industry. Current Issues in Tourism, 20(4), 346-355. https://doi.org/10.1080/13683500.2014.982522Sigala, M. (2018). Implementing social customer relationship management. International Journal of Contemporary Hospitality Management, 30(7), 2698-2726. https://doi.org/10.1108/ijchm-10-2015-0536Social Hospitality. (2021, January 9). Social media and hotels: Four Seasons leading by example. https://socialhospitality.com/2013/03/social-media-and-hotels-four-seasons-leading-by-example/Solnet, D., Subramony, M., Ford, R. C., Golubovskaya, M., Kang, H. J., & Hancer, M. (2019). Leveraging human touch in service interactions: Lessons from hospitality. Journal of Service Management, 30(3), 392-409. https://doi.org/10.1108/josm-12-2018-0380Stokes, R. (2018). eMarketing: The essential guide to marketing in a digital world (6th ed.). Red and Yellow.
Unmetric. (2021). Social media analytics & intelligence dashboard by Unmetric. https://unmetric.com/brands/four-seasons-hotels-and-resortsYadav, M. L., & Roychoudhury, B. (2019). Effect of trip mode on opinion about hotel aspects: A social media analysis approach. International Journal of Hospitality Management, 80, 155-165. https://doi.org/10.1016/j.ijhm.2019.02.002
Innovative Maori Product Improvement An Analysis of Tohu Wines (2)
Innovative Maori Product Improvement: An Analysis of Tohu Wines
Grace Li
1. Introduction
Tohu Wines is a Maori-owned wine enterprise established over 20 years ago in Marlborough, New Zealand. The company is Maori-based business that gets its competitive advantage from using home grown raw materials using cultural and traditional values of the Maori people, to make both inorganic and vegan wine selections, and plans to introduce an organic brand to its portfolio. Tohu Wines has attracted global attention from this business model, including an emphasis on using home-grown products and a supply chain that is chiefly founded on the Maori way of life. The company prides itself of bearing the responsibility to uphold the legacy of the forefathers and founding members of the Maori community, who believed in the value of hard work, fairness, creativity, and being one with the natural environment (Tohu Wines NZ, 2021). Tohu Wines focuses on creating internationally recognized products based on aroha (love) and a different selection of wines that speak to the rest of the world about the traditional values of the Maori people. The Kaumatua range of wines in inspired by revered Maori elders known for their wisdom and leadership, the Whenua selection is a gift from the land and the Turangawaewae, the place where humanity stands, and the Manaaki range is based on the deeply held values of the Maori including kindness, excellence, and guardianship (manaakitanga, rangatiratanga, and kaitiakitanga) (Tohu Wines, 2015). Guardianship or kaitiakitanga, defines preservation and conservation of the land, through practices in agriculture and production that are considerate of the earth and all that is in it. While Tohu wines include various selections such as inorganic and vegan wines, the production process adheres to kaitiakitanga values that define the land, the forest, the sea, and the people as members of the same family in a broad concept of sustainability.
Kaitiakitanga remains as the main core value that directs Tohu Wines as a business and its relationship with the environment. In this regard, Tohu Wines’ vineyards are SWNZ (Sustainable Winegrowing New Zealand) certified and all products are also carboNZero qualified. The carboNZero system of accreditation assures consumers that specific products have been verified independently and certified as being carbon neutral. Therefore, Tohu Wines certification from SWNZ and carboNZero is evident that the company’s vineyards and practices therein are aligned to guidelines that guarantee the ecologically sustainable approaches are applied from production to bottling. Its different brands that include Riesling, Chardonnay, Pinot Noir, and Pinot Gris (Tohu Wines, 2015) have been recognized as paving the way for sustainable practices in growing raw materials and packaging in line with guidelines from various bodies that target growth.
Even with the elegant design and a focus on being one with nature, Tohu Wines has not performed very well in the international wine market. The main reasons for the poor performance include the increased competition from more established brands, new entrants, and a lack of brand awareness for Tohu Wines products. Therefore, an issue emerges to combine the creative design, the focus on nature, the emphasis on a traditional approach, and a supply chain of handcrafted solutions with better and innovative market approaches in an attempt to steer the company forward. The aim of this current report is to identify a gap in the company’s market to introduce the proposed innovation to solve customer problems. It will also develop a market evaluation of the proposed improved innovation process using relevant evidence to support the launch of the proposed improved innovation. These elements will all be applied and integrated with relevant Maori values to generate enhanced value for the new improved innovation. Lastly, the report will undertake a business risk assessment for the introduction of the new/improved innovation for the business enterprise and adopt the Lean Canvas model to give innovative suggestions through analysis.
The current report is divided into several sections. The first section, the introduction, focuses on giving a brief introduction of the product and the company. The second section is an analysis of the current problems that Tohu Wines is facing, including a perspective of the solutions from a customer’s positioning and a review of its alignment to Maori values. The third section performs a deep analysis of the proposed solutions. The fourth section then gives an analysis of risks. The last section will conclude the analysis giving a restatement of the major issues found within the discussion.
Problem Solution Unique Value Proposition Unfair Advantage Customer Segments
A organic wine segment market gap
Conformity to the wine business traditions without any Maoriculture uniqueness
Conventional bottling that is not unique to the brand positioning
Similar composition of wines to those in established international market
Zero application of an eco-friendly design in packaging
Green Marketing
Use different fruits unique to New Zealand (Kiwi fruits) to make the wine
Use sustainable packaging away from the conventional wine bottling Sustainably grown products, hand crafted, and made using traditional Maori wine making techniques in line with Maori values of caring for the environment and excellence, creativity, and kindness Eco-friendly and sustainable packaging
Unique fruit use in wine making
Organic products
New Zealand wine market
Australian food and beverage sector
Organic-inded consumers
Populations conscious on health consumption
The upper middle class
Existing Alternatives Key Metrics Channels Early Adopters
Going Green
Green Marketing
Sustainable production
Organic products Consumer satisfaction
Customer retention
Sales
International market expansion Social media
Website
Supermarkets
E-commerce websites High disposable income
Eco-conscious
Organic product enthusiasts
Upper middle class
Health-conscious consumers
Cost Structure Revenue Structure
Product cost
Tax
Storage cost
Delivery cost
Promotion cost B2C
B2B
Figure 1: Lean Canvas Model for Tohu Wines
2. Analysis of Entrepreneurial Opportunities
The section will identify the gaps and opportunities available for Tohu Wines through an analysis of the company’s business activities. It will also provide business innovation proposals in line with the Maori values.
Identifiable Problems
Tohu Wines has a major problem when it comes to its performance within New Zealand and in its international markets in the US, the UK, Canada, Netherlands, Ireland, Germany, and Belgium. The main reasons for the poor performance include the increased competition from more established brands, new entrants, and a lack of brand awareness for Tohu Wines products. Another problem is that the company has been slow to make decisions that are relevant to market changes. As a result, other wine companies have moved with pace in response to market changes. In terms of the decision making problem, the company is run on a trust comprised of more than 3000 Maori families (Scoop Business, 2003). Decision making and policy formulation takes a lot of time and every member of the decision making unit must be considered.
From a consumer’s perspective, the problems present a number of issues. First, Tohu Wines is unable to compete effectively, limited by the large size of the competitors, more costs associated with its sustainability agenda, new entrants, and little brand awareness for Tohu Wines products. Additionally, Tohu Wines distinguishes its brand from other wine through the Maori brand, yet it has not achieved this agenda with success. The brand has not stood out and made a name for itself as a Maori-focused product. The idea of selling the Maori culture to the world has been clouded by the need to conform to traditions present in the Wine industry and market. This has especially been evident by how the company packages its products. Therefore, another major impediment to an improved product is the use of a conventional packaging that is not unique to the brand positioning. Tohu Wines uses the same bottling design as any other wine company. While this can be seen as an advantage in maintaining conventionality to the wine culture, it is a problem to the company’s competitive advantage. In an attempt to break away from a “me too” strategy, Tohu Wines must use a presentation/bottling/packaging design that is unique to its culture, agenda, business model, and in line with the sustainability orientation. At present, the customer interprets the wine packaging designs as a reference to every other wine company or brand. As shown in image 1 below, the bottling design employed must not be 100% similar to the industry standards, in order to create uniqueness and to attract customers’ attention as a part of the promotional strategy.
Image 1: Sample Tohu Wines bottling compared to other wine brands
Tohu Wines lacks uniqueness. Although the company uses sustainably grown products harvested and grown in line with Maori values of gentleness and kindness as well as guardianship to the natural environment, these values cannot be distinguished from every other brand available in the market because the end products, including packaging are all similar. The only uniqueness that the company has is the names given to the different ranges, segments, and brands of their products. Therefore, the consumer is not able to differentiate Tohu’s products from those of the competition because the botting design and he composition of the wines are similar to the industry standards. The main competitors of Tohu Wines in the New Zealand domestic market, including those that already have footing in the Australian market, include: Chard Farm, Matariki Wines, Stonecroft, Martinborough Vineyard, Canterbury House, and Gibbston Valley Wines. To stand out from the competition, Tohu Wines must differentiate its product, suggestively by using the same Maori culture and planting traditions to grow kiwis for use in the wine making business. Because the traditionally-brewed wine has an increasing market demand, the kiwi wine suggested can be grown as an alternative product, to create uniqueness and to ensure that Tohu’s value proposition remains intact and noticeable.
The third problem is how the company, despite its value proposition of remaining true to the environment and the consumers, uses zero application of an eco-friendly design in packaging. Sajjad, Eweje, & Tappin (2020) highlight an ever increasing number of consumers demanding environmentally friendly products. Tohu Wines markets itself as sustainability-focused brand, conscious about the natural environment from the way it grows its raw products to the production process. However, these elements are not reflected in its packaging. For a company to be seen as having exceeded consumer demands and expectations in relation to remaining true to environment-related issues, a critical part of the strategy must include packaging of products (Essien, Baroutian, Dell, & Young, 2019). In agreement to this position, Drew, Cleghorn, Macmillan, & Mizdrak (2020) found that packaging is now a global communication tool and a way to market a brand. A customer is more likely to purchase a product that adheres to environmentally friendly packaging compared to brands that use the traditional packaging. As such, eco-friendly designs in packaging as a way to add value to the customer, because they include a need satisfaction in a design/packaging that meets expectations on environmental conservation (Baird, Hall, & Castka, 2018). Tohu Wines must consider the use of eco-friendly packaging and design in order to cater to a market that is increasingly driven towards conservation of the environment. That said, the main innovation suggested as a way of improving the brand is an introduction of a unique traditionally-brewed and organic range of wines, complete with a unique traditional-style packaging that makes the brand stand out.
2.2 Discussion of Customer Segmentation Relevant to Tohu Wines
Customer segmentation would be applicable for Tohu Wines in its endeavour to improve its performance in both the national as well as international markets. The company would be able to effectively apportion resources to different target markets, identify target groups, and enhance customer service and loyalty (Johnson, Danner, & Bastian, 2017). In the national market, Tohu Wines has not fully dominated the market due to intense competition and other issues identified above such as a lack of uniqueness, conformity to traditional wine expectations, and new entrants that are providing cheaper products for the same level of quality.
For the geographical segmentation, Tohu Wines is sold in New Zealand and in the international market. Specifically, it is exported to the UK, Holland, USA, Canada, Belgium, Ireland, and Germany (Tohu Wines NZ, 2013). These markets are wine consumers interested in popular wine varieties from all over the world. However, Tohu Wines has not fully penetrated into the Asian market. In China, for example, the competition is not as high as it is in Europe and America. Therefore, Tohu Wines should begin a new focus on the Chinese market to take advantage of the high population and the reduced competition.
In terms of demographic segmentation, Tohu Wines targets high income earners with high disposable income. The company targets the upper end market with an aim to create a culture of consuming Maori-made wine. The justification for the high prices include the production process that adheres to sustainability standards.
Behavioral segmentation is also a critical factor in segmenting the market. Increasingly, more customers are looking for sustainably produced commodities in the market (Sogari, Pucci, Aquilani, & Zanni, 2017). Therefore, Tohu Wines can target these customers by presenting its brand as one that follows sustainability as part of its organizational culture. Targeting lifestyle enthusiasts for the proposed new product would be an effective strategy as the group has high disposable income and is prepared to pay premium price for quality products.
2.3 Suggested Solutions to the Problems Identified
It is suggested that Tohu Wines introduces a unique traditionally-brewed and organic range of wines, complete with a unique traditional-style packaging that makes the brand stand out. While the suggested product is not new in the wine market, using Maori values and culture in the production process will add value and provide. An innovative product (a Maori-culture traditionally brewed wine segment) will help to create a new customer segment, targeting consumers who want to consume products that are sustainably produced. Additionally, the new innovative product will be packaged in an appealing manner, using biodegradable materials that can be reused, in line with the guardianship agenda. The future of the food and beverage industry is moving more towards foods that are organically and sustainably grown. Therefore, Tohu Wines will be well positioned to address the emergent changes in all aspects of their production.
In the international front, Tohu Wines has an identifiable gap: a lack of uniqueness despite priding itself of being a quality exporter of the Maori culture. The Maori culture should not be diluted by the popular market traditions in the wine industry. As more customers move towards organic consumption, the company can combine its sustainability prowess, together with a new organic product, made using traditional methods of Maori wine making, and packaged in a creative packaging reflective of these characters. The end product will be uniquely representative of the Maori culture, not just in the name but also in the production process, taste, and quality. The product will also be rare because no other company produces such segment of wines. The main distinguishing factor that the company will have in the international market is the Maori heritage. By adding traditional concepts in the production process, introducing an organic brand, and packaging it in an eco-friendly and attractive design, Tohu Wines will have solved the problems facing the company from a consumer’s perspective.
3. Tohu Wines Market Evaluation
This third section analyses innovation at Tohu Wines using four main aspects that include; unique value proposition, unfair advantage, channels, and cost structure and revenue.
3.1 Unique Value Proposition
Baldassarre et al. (2017) define a unique value proposition as the statement that best and clearly defines the benefits offered by a company to the consumer, how it solves customer needs, and the distinctions of the product from the competition. For Tohu Wines, the unique value proposition is as follows: Sustainably grown products, hand crafted, and made using traditional Maori wine making techniques in line with Maori values of caring for the environment and excellence, creativity, and kindness. A number of things emerge from the above mentioned unique value proposition. The proposed innovative product is aligned to this unique value proposition. First, is that the products made by Tohu Wines are sustainably grown, with an emphasis on the environment and caring for the natural elements. Second, the product is unique from the competition because it is hand-crafted and uniquely made using Maori wine making techniques. Third, it solves the customer needs for a unique product, one that is different, considerate of lifestyle needs such as health and class, and in line with modern elements of ensuring care for the environment through eco-friendly methodologies applied in design and production. The proposed innovative product will include organic, hand-crafted, sustainable range of wines, made using traditional Maori wine making techniques and packaged in eco-friendly products to change the perspective of just another wine company in the market. These values are different from any other wine maker in the industry, especially those targeting the Chinese and European markets.
3.2 Unfair Advantage
To push the proposed new wine segment into the proposed Chinese and European markets, Tohu Wines should apply the unfair advantage suggested in the production process to stand out from the competition. According to Satz (2020), an unfair advantage represents a concept that may not be copied by competitors with ease. The Maori culture and values are uniquely available for the Maori people in New Zealand. While other Maori people are likely to enter the wine market and copy Tohu Wines strategy of hand crafting a specific variety of wines and making them using traditional techniques, it is highly unlikely that they would have the same expertise, quality control, leadership, and culture. Tohu Wines has an advantage of being in the market since 1998 (Tohu Wines NZ, 2013). In this period, the company has learnt to grow its own vineyards to reduce the reliance on third party suppliers. This is another advantage because then it is able to regulate quality and quantity as per need. Combined, the ability to regulate its own supply and to make a new line of wines using uniquely Maori traditions would give Tohu Wines an unfair advantage.
3.3 Channels
The new proposed product is specifically made to suit the upper market needs of the Chinese and European markets. the wine market demand for the traditionally hand crafted wine segment will appeal to the high income earners in China and Europe, especially in the Netherlands, Germany, and Belgium where Tohu Wines already has made a name for itself. To get the new product going, vigorous digital media campaigns will be required. For the Chinese market, there is a need to use locally accepted social media platforms such as WeChat, Sina Weibo, and QQ. For the European market, magazine advertisements, social media marketing through Instagram and traditional print media including billboards would be the best option.
3.4 Cost structure and revenue
The cost structure for Tohu Wines’ business model can be separated into value-driven and cost-driven in line with (Reen et al., 2017). Based on the value proposition presented above, the new proposed segment of wines will create uniqueness through old Maori wine making techniques, complemented by an organic production, and eco-friendly packaging to add value. The product is created as both a value and cost driven product. In terms of value, the benefits are as outlined to the consumers including organic, sustainable, and hand-crafted wines packaged in an eco-friendly packaging. For cost, the product will be marketed as a superior high quality wine using premium pricing to target the upper class market in China and in Europe. The costs therefore include product costs emanating from the growing of kiwis and grapes, producing, adherence to sustainable agro-practices, management of the wines, use of traditional Maori expertise, research and development, packaging equipment, eco-friendly certification, manufacturing overheads, and human capital.
Revenue streams will include a B2C and a B2B approach, targeting consumers directly and other businesses respectively. The B2C market is the main target for the new product, aiming to create a culture in the wine industry. B2B includes a list of other entities such as hotels, restaurants, hospitality firms, supermarkets, night clubs, and so on. These B2B partners will be critical in redefining the product through individual target markets.
4. Risks and Key Metrics
The following section evaluates the possible risks of the proposed improved product in Tohu Wine’s business process and provides solutions to use key metrics to avoid or reduce risks.
4.1 Inventory Risks
Inventory risks are defined by Badenhorst-Weiss & Naudé (2020) as the chance that a business might not sell all of its products or the probability that there will be a decrease in value of the inventory stock. The wine industry faces high inventory risks, especially the proposed new product for Tohu Wines. Although consumers are quickly moving towards organic and sustainably produced products, and eco-friendly packaging is preferred, it is highly likely that these trends may be overtaken by others in the market. Therefore, there are risks in inventory management because the new product may fail in value or the reception may not be as expected as consumer needs are fast changing. To measure and assess the inventory turnover rate for the new product, day sales of inventory can be use. To improve the rating customization of the products through the eco-friendly design as suggested earlier and pre-sales can be carried out.
4.2 Customer Satisfaction Risks
Using the B2C and the B2B modes introduces a risk of reduced customer satisfaction. To increase customer satisfaction customer retention and satisfaction indicator metrics can be used. Tohu Wines can use customer satisfaction metrics to improve its position through being a responsible supplier, following its guardianship agenda and sustainable operations. Active customer service should also be top of the company’s plan. Social media provides a key area for improved customer services ad relations.
5. Conclusion
Tohu Wines has a very attractive value proposition. However, it lacks uniqueness because of how it conforms to industry standards in terms of packaging and the composition of wine. Therefore, the present report has given a number of suggestions on how to make an improved and innovative packaging design as well as crafting an alternative product to solve these problems. The company does not adequately use its Maori heritage to create a unique value proposition and an unfair advantage for its products. Therefore, the new product will aim at meeting these needs. It will include sustainability, environmental protection, health benefits to consumers through an organic foundation, and packaging that sums up the new design for a wine brand. The packaging is not in any way reflective of the carefully-crafted product that is made from organic plants that have been grown and produced in line with the Maori values of manaakitanga, rangatiratanga, and kaitiakitanga.
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