Recap
Market Insights
Strategy for expansion in Cuban market
Brand SWOT in Cuba
Economy
Social
Recap Politics
Technology
• State controlled broadcast media and newspapers • Billboards dictate communist propaganda
Politics
Economy
• Allowed limited self-employment • 20 % of the workforce in private sector • Allow private sale and purchase of homes and cars • Average monthly income - $20 • World Bank GDP forecast – 2.1% in 2015/16 • Existing home sharing market
Social
• No awareness of brands • Not exposed to marketing and advertising • Comfortable with hosting foreign guests
Technology
• Mobile phones are legal but with low penetration • Two state-owned internet providers • Around 40% access to Intranet • 5% access to open Internet • Internet cafes - $4.50 per hour • Computer ownership legalized in 2007
Target Audience
Pricing
Competitors
Market Insights
Market Structure
Payment method
Market Structure
Monopolistic Competition The market consists of many agents who offer private house accomodation at different prices
Competitors
A large existing home sharing market managed by microentrepreneurs
50 year-old home owner: “Those of us who rented our houses to tourists before the reforms now face excessive competition. There are now casas de renta everywhere in Cuba.�
Competitors
Target Audiences
• Cuban Hosts • Cuban Intermediaries • American Guests
Cuban Hosts • Families in need for extra income • Individuals working in the private sector → becoming entrepreneurs • Individuals already renting à The user needs extra income because working in Cuba is low paid and there aren’t many options.
Cuban Intermediaries • Open-minded • Have experience with foreigners • Speak English • Have internet access • Manage the connection between hosts & guests à The users need additional income because of low income in Cuba.
American Guests • Existing AirBnB users • Looking for closer experience with Cuban culture • Falls within the 12 category travel purpose à The users need an independent accommodation because it gives them a flexible and personal experience with the culture.
• General license issued online by OFAC
AirBnB’s revenue model:
Pricing
• Prices set by the hosts - no control on part of AirBnB • 3% charge on hosts - fixed pricing • 12% to 6% charge on guests (depending on the length of the stay) - dynamic pricing
Payment Method
• AirBnB transfers payment to the host’s bank account • The challenge in Cuba: Intermediaries and hosts lack bank accounts • Airbnb’s solution: Money transfers to both intermediaries and hosts via VaCuba service in Miami
Strategy for expansion in Cuban market
• •
Stimulate US guests to go to Cuba Increase number of intermediaries • Become a leader in the private house online accommodation in Cuba • Establish communication with Cuban hosts
Short term
Long term
American Guests
Marketing Campaign in U.S Short term Marketing Campaign in Cuba
Cuban Intermediaries
Marketing Campaign in U.S
Objectives
Execution
Evaluation & Measurement
Marketing Campaign in U.S
Objectives
• Create an emotional feeling through the stories of other American travelers • Encourage conversations in social media about AirBnB experience in Cuba • Relate AirBnB’s brand to Cuba via sponsorship of Cuban event
Three pillars of relationship marketing Execution
Customer Relationships
CRM
CEM
CCM
Products and Services
Execution
Online video featuring the first US guests and their experience with AirBnB in Cuba
Airbnb to Cuba
Execution
Social Customer Relationship Management Ă ďƒ encourage conversations and interact with users about their Airbnb experience in Cuba Execution
#AirbnbinCuba #Shareyourcubanstory
Execution Event sponsorship Cuba Nostalgia - May 15 – 17, Miami à Create word-of-mouth
Evaluation & Measurement
• Online video – number of views • Number of tweets and re-tweets, comments and conversation • Likes and conversation on Facebook • Number of attendees to the event
Marketing Campaign in Cuba
Objectives
Execution
Evaluation & Measurement
Marketing Campaign in Cuba
To attract new intermediaries through referral
Objectives
Execution
Offical Airbnb ‘s Intermediaries
Push strategy via online direct marketing • Referral marketing à receive % for every new intermediary
Experiments
Havana: 60 Emails sent à 13 Replies à 3 Undelivered mails
Other districts: 20 emails sent à 2 Replies à 3 Undelivered mails
•
•
“We do have internet access but only to receive and send e-mails. If you need it for research you can access the WIFI connection in the nearby hotels, 1h - 4,50 cuc.” “No, i don’t have, But near of my house Its a internet Coffee, 4 cuc per hour, Thanks”
•
“No I do not have INTERNET at the apartment, in Cuba some people have INTERNET at home, It is not frequently, you have to go to the Hotels, or to special places to access to INTERNET, maybe in the future we will have INTERNET at home, I hope so , but not now”
• Internet system in Havana is stronger • No access to Internet at home
Experiments Conclusion
• Alternatives: Hotels($4.5), Internet Café($4), Internet card ($5)
Push strategy via online direct marketing for intermediaries on competitive sites + Referral
Number of acquired intermediaries Evaluation & Measurement
Long Term
Marketing Campaign in Cuba
Marketing Campaign in Cuba
Objectives
Execution
Evaluation & Measurement
Marketing Campaign in Cuba
Increase awareness and Cuban hosts on Airbnb site Objectives
Advertising on Revolico (Cuban’s Craigslist) popular for foreign brands
BILLBOARD TAGLINE: Sea parte de nuestra comunidad global. - Be part of our global community.
Turn cars into mobile billboards and pay people
Experiential marketing - branded mobile AirBnB houses
“Cuba definitely fits within our mission,” – Zuckerberg
Evaluation & Measurement
Number of acquired Cuban hosts
BRAND IN CUBA
S
O
• High brand awareness in the US • Interactive website • Personal contact between intermediary (speaking English) and guest • Guaranteed sercurity • Global community
• Lack of direct contact between host & guest • Money transfers
• Development of the internet • Increased travel from US • First US company to build and manage customer relationships
• • • •
High competition Lack of internet infrastructure Censorship on media Limitations on travel from US
W
T
Sources: h-p://adage.com/ar7cle/global-‐news/adver7se-‐a-‐newly-‐capitalist-‐cuba/ 296331/ h-p://www.fastcompany.com/3044895/most-‐crea7ve-‐people/no-‐ internet-‐no-‐credit-‐cards-‐no-‐problem-‐how-‐airbnb-‐launched-‐in-‐cuba h-p://www.bloomberg.com/news/ar7cles/2015-‐04-‐02/airbnb-‐is-‐now-‐ available-‐in-‐cuba h-p://www.forbes.com/sites/alexandratalty/2015/04/03/airbnb-‐adds-‐ over-‐1000-‐lis7ngs-‐in-‐cuba/2/ h-p://www.treasury.gov/resource-‐center/sanc7ons/Programs/ Documents/cuba_faqs_new.pdf h-p://www.ny7mes.com/2015/01/21/travel/the-‐latest-‐on-‐travel-‐to-‐ cuba.html?_r=0 h-p://www.cubanostalgia.org/english/
THANK YOU!