Fendi Retreats (2017)

Fendi Retreats

A Luxury Hotel & Spa Experience

M.A. Luxury Brand and Fashion Marketing Final Project, Winter 2017 Jodi McNeill

Table of Contents Abstract P. 1 Introduction P. 4 Company History P. 5 Country Analysis P. 10 Industry Analysis P. 19 Target Market Identification P. 34 Competitive Landscape P. 36 Research P. 40 Marketing Strategy P. 49 Conclusion P. 81 References P. 83 Appendix P. 86

Abstract Fendi Retreats was created to provide a luxury mountain and wellness retreat option that does not currently exist in the hospitality sector. This exclusive hotel provides an outlet for consumers seeking experiential travel opportunities, branded experiences, and exclusivity at the height of luxury. The deliberately intimate hotel will be nestled in the ‘Champagne Climate’ of St. Moritz, deep in the Swiss Alps. International jetsetters seeking reprieve from their routines will be drawn to Fendi Retreat’s because of its’ unique aesthetic and unparalleled offerings.

Fendi Retreat’s marketing strategy has been curated with a specific target consumer in mind. The hotel’s marketing emphasis on event’s caters to established Fendi VIP’s and wealthy consumers who seek new products and experiences. The wide offering of activities, relaxation and exquisite indulgences will bring together likeminded individuals at Fendi Retreats.

and wellness retreat will give guests a feeling of exclusivity that is otherwise difficult to replicate. Visiting a luxury chalet or mountain retreat in one of the world’s top ski resorts affords an unparalleled lifestyle of “highaltitude” recreation during the ski season and beyond.

The hotel will offer a variety of in-house suites, private chalets, luxury spa and fitness centers, fine dining, and unparalleled design. The services available at Fendi Retreats are what set the hotel apart: private butlers, luxury car services, private equipment fittings, chalet personalization, and rich spa treatments.

Extending Fendi’s product offerings with Fendi Retreats will create a more intimate and personal point of contact for consumers and enrich the brands reputation of opulent luxury. Fendi Retreats will also create another profit point for the brand and draw in new consumers.

The following strategic plan explains the environment in which Fendi Retreats is to be established and the Fendi Retreat’s offers an experience that is comparable to financial sales forecast of the hotel. its competitors. The vast array of amenities, exclusivity, level of service and personalization cannot be found in the luxury vacation and wellness retreat industry. Fendi Resorts is entering the hospitality market with parent brand Fendi’s rich heritage and history of craftsmanship and quality as endorsement. Staying in a Fendi mountain

Introduction There is a wide trend in the luxury hospitality industry whereby renowned designers are lending their names, reputations, and aesthetic perspectives to hotels.

Recently luxury houses have had their fiscal challenges but travel is booming and ultimately it’s all about capitalizing on branding opportunities (Hallet, 2016).

Facing present circumstances and consumer trends it makes sense for global luxury fashion brands like Fendi to diversify into the hospitality industry.

Originally a furrier and leather-goods company, Fendi is globally known for understated elegance. Fendi sells their story with everything they do being based on the brands heritage. The writing ‘ROME’ under the Fendi logo exudes a specific mood and vivid history. Being an Italian luxury label, Fendi can capitalize on the country’s reputation as a place of beauty, excellence, and desirable lifestyle promising a taste of “la dolce vita” through their brand (Hallet, 2016).

While staying at a hotel the consumer is completely immersed in the brand. Branding is not about the object itself, but consumers’ feelings attached to that object.

A sensory lifestyle experience, such as a branded hotel, has the power to cleave a consumer to a brand more potently than a simple handbag or blazer. As a luxury brand Fendi is in the business of feeding its’ consumers’

emotion and self-expressive desires.

Presently, Fendi has a unique opportunity to extend its core foundations of fur, luggage, leather, and indulgence to a new product offering- luxury mountain retreats.

The Fendi Retreats extension will include hospitality, wellness and relaxation, and the merchandising and showcasing of the Fendi Casa line. Fendi already has an established home line, so furnishing this extension using Fendi products will aide in selling and promoting the line, leading to sales growth and increased exposure.

These retreats would help grow and expand Fendi’s hospitality offerings geographically and attract a new market of consumers outside of the brands core customers.

A proposed marketing plan for the development of a Fendi brand extension, Fendi Retreats, has been created. The extension focus will be on creating a Fendi experience that will improve the historic houses’ competitive position in the global luxury market. This brand extension aims to enhance customer relationships, cater to target consumers’ needs in a new way, and increase brand awareness.

To ensure the most effective and reliable results, this business plan will utilize a combination of primary and secondary research strategies.

Business Issues & Objectives This proposed brand extension has both financial and brand building objectives. Financially, Fendi Retreats aims to create a new profit point and enlarge market share by capitalizing on the growing millennial consumer segment’s desire for experiential travel and their increased discretionary income. From a brand building perspective, Fendi Retreats aims to create a new customer experience, enhance customer loyalty, stay aligned with the brands core values, and embody Fendi’s reputation of high-quality, exclusive, craftsmanship oriented designs and experiences. In order to meet these objectives, the project will utilize a combination of primary and secondary research. After analyzing the research results, a brand extension plan will be developed that create and market Fendi Retreats.

Key Success Factors The primary goal of this project is to create a Fendi experience like never before by seamlessly integrating two old-world luxury industries. In order to achieve this goal, Fendi Retreats will rely on the following key success factors: location, excellent service and unique design in order to enhance the relationship between Fendi Retreats and their consumer, privacy and exclusivity, and differentiation strategy in amenities, brand awareness, and promotion.

Company Overview

Background & History Fendi is a piece of Italian history, a company with incomparable craftsmanship skills, fueled by undying energy and leadership passing from father to daughters nurturing a small family business into a global powerhouse. The magical Fendi journey began in Rome, 1925, with Edoardo Fendi and his bride Adele Casagrande. The small, secretive furrier was inspired by the traditional craftsmanship techniques of Roman master saddlers. The store, coined Fendi, debuted making luggage and expanded into handbags in 1938 with their creation of the Selleria bag- a range of bags still handmade today. After WWII the five Fendi sisters took over the family company with a mission to infuse energy and creativity into the brand. The sisters reinvented shapes and materials building a brand by women for women.

In 1965 Karl Lagerfeld was hired as creative director with the goal of making “fur light and trendy, and easy to wear”. The creation of the double ‘F’ logo for “Fun Furs” was implemented, a fur coat revolution commenced.

Lagerfeld and the Fendi sisters began to experiment with dyeing, tanning, and other unique ways to create products. The continued development of the brand extended in to the 1970’s and 1980’s with the launch of Fendi’s first fragrance, a watches line, men collections, home collection, and the opening of store throughout

Europe, New York, and Hong Kong. These product offering expansions designated Fendi as more than a fashion brand, it became a way of life.

In 1997 the creation of the Baguette bag, deemed the first “it-bag” with infinite possibilities of personalization, propelled Fendi into huge success with the creation of waiting lists and massive demand. In 2007 Lagerfeld produced a fashion show of such scale and historical import that the Fendi Spring/Summer 2008 show was dubbed the greatest fashion show of all time.

The ‘first fashion show to be seen from space’ created the world’s longest runway show on the ancient 1,500-mile-long Great Wall of China. In 2001 the French luxury conglomerate LVMH group became the main shareholders of Fendi and con.tinue to plot the company’s future growth.

Keeping Fendi’s original brand values and not changing the company’s identity has withstood the test of time and enabled the brand to stand out in a saturated market.

What marks the brand, and has since the beginning, is the quality Fendi proposes and the craftsmanship that was the starting point of its style: innovative, intellectual, elegant and exclusive. Their research of materials, the use of fur, and the study of shapes and contrasts are fixed bases on which they develop different topics. Today Fendi stands for quality, tradition, experimentation and creativity (LVMH, 40).

Current Company Standing Fendi currently operates as a multinational luxury goods brand owned by LVMH and operated as a subsidiary of their fashion and leather goods business segment. Its’ headquarters are in Rome, Italy and as of 2014 the brand had 197 store locations worldwide. Key people within Fendi include Karl Lagerfeld- creative director for fur and RTW, Silvia Venturini Fendi- creative director for accessories and men’s, and Pietro Beccari- chairman and CEO. The Italian luxury fashion house product offerings and specialties are fur, ready-to-wear, leather goods, shoes, fragrances, eyewear, furnishings, timepieces and accessories for men, women, and children. Fendi offers products through its boutiques and is largely represented through high-end department stores (Fendi SRL, 2016).

In 2015, Fendi achieved a fine performance with an acceleration in revenue growth, the confirmed success of its new boutique concept, and market share gains in all regions. The brand enhanced its desirability, cultivating its image of audacity and refinement. It showed excellent momentum across all business areas, with especially strong demand for its iconic Selleria and Peekaboo leather goods lines. Several events stood out in 2015: the inauguration of the new headquarters at the Palazzo della Civiltà Italiana, the celebration of 50 years of creative collaboration with Karl Lagerfeld, and the reopening of the Palazzo Fendi in the heart of Rome (LVMH 41-42).

The future outlook of Fendi is bright, with predictions that the brand will boost its momentum, driven by a bold, sophisticated offering and a focus on its unique craftsmanship. Innovations will take center stage once again with a number of new product launches on the horizon. The Fashion house will also continue its expansion, opening stores in the downtown areas of key cities and in new markets (LVMH 42).

PAST & PREDICTED FUTURE REVENUE IN USD MILLIONS

Additionally, LVMH, the world’s leading luxury products group, reported 2016 revenues of €37.6 billion. This was 5.43% above the prior year’s period results. The Group turned in strong momentum in Europe, the U.S., and Japan with a portfolio of 60 brands, present in 70 countries, and having 3,948 stores (LVMH). Its fashion and leather goods segment reported €12.8 million in 2016, an increase of 1.03% from 2015, and had 1,508 stores globally. The company’s success is due to it being the only group present in all luxury sectors, having a good geographic balance of revenue, quality and creativity of teams, strength of star brands, and solid financial structure.

424.1

2017

397.4

2016

376.9

2015

323.8

2014

306.7

2013

295.6

2012

LVMH does not break out sales figures for Fendi, but market reports estimate that the brand turns over more than $1 billion a year (Roberts, 2015). In 2015 Fendi recorded exceptional growth with the success of its iconic leather goods and the inauguration of the Palazzo Fendi in the center of Rome. Additionally, the company is estimated to retain $970 million in total assets and $330 million in total equity. “Fendi is going through a positive period, the brand is well-liked, it’s desirable and it’s growing” stated Beccari.

447.2

2018

Company Financials

REVENUE BY BUSINESS GROUP

Wine & Spirits 13% Fashion & Leather Good 34%

Selective Retail & other 31% Watches & Jewelry 9%

Perfumes & Cosmetics 13%

Country Analysis

Switzerland In selecting Swiss Alps as Fendi Retreats location an in-depth analysis of Switzerland’s political, economic, social, technological, legal and environmental structures was conducted. Each of the PESTLE factors were explored based on four parameters: current strengths, current challenges, prospects, and future risks.

Key Facts The country’s full name is The Swiss Confederation with the capital city being Bern and a country area spanning 41,277 sq. km. It is a landlocked country in central Europe, located east of France and north of Italy. Switzerland is a federal state composed of 26 cantons with elements of a direct democracy. The country’s president is Johann N. Schneider-Amman. The population estimate as of 2015 was 8.12 million with a total population life expectancy of 82.5 years. The ethnic composition is 65% German, 18% French, 10% Italian, 1% Romansch and 6% other.

The official languages are German (63.5%), French (26.9%), and Italian (8.1%). Switzerland’s currency is the Swiss franc (CHF) and the 2015 GDP per capita was $59,300. Zurich, Geneva, Bern are global cities and are economic centers for various industries. Major economic contributing factors and industries in Switzerland are Tourism, Military and Defense, Pharmaceutics, Agriculture, Banking, Watches, Wine, Chocolate, Fashion Accessories, and many others.

Overview Switzerland has had a long tradition of ‘neutrality’, which essentially means refraining from military involvement in the affairs of other countries. Its neutral status and a unique governance system have ensured economic and political stability. Since 1959, the Swiss government has been a coalition of the four major political parties. This "magic formula," a seat-sharing agreement between the four major parties, has long guaranteed a great degree of political stability. In the October 2015 elections, the right wing Swiss People's Party (SVP) won most of its political ground from the Green Liberals and the Conservative Democratic Party (BDP). The growing discriminatory attitude against Muslims and the straining of bilateral ties with several nations due to Switzerland’s strong banking secrecy laws may affect relations with some countries (Switzerland 15).

Switzerland has excellent human development indicators, but the proportion of working poor is quite high. However, an aging population and declining birth rate have put immense pressure on the pensions and healthcare systems. Technological innovation backed by excellent research is the key to the success of the Swiss economy. However, R&D focuses only on few sectors. This poses a threat, owing to high concentration of spending by private sector in these sectors alone (Switzerland 15).

Switzerland was one of the top performing countries in the Index of Economic Freedom 2016 rankings, which shows that the country’s regulatory environment is conducive to the operation of businesses and makes it a preferable destination for business investment.

The “Minder initiative” that caps executive pay may Switzerland is one of the world’s most competitive reduce the appeal of Switzerland for multinational economies. The country’s well-developed banking sector, corporations and can upset Switzerland’s status as a capital market and infrastructure contribute to its stable preferable investment and business destination. This economic condition. Nonetheless, the economy faces a initiative gives shareholders a binding vote on executive challenge in the form of its export dependence on the pay (Switzerland 15). Switzerland ranked 16th in the 2016 EU, which is currently facing a debt crisis in some of its Environmental Performance Index (EPI) and the country peripheral countries. Overheated property markets are has signed up to the second part of Kyoto Protocol during also a cause of concern for the Swiss National Bank as 2013–20 (Switzerland 15). low interest rates coupled with a high rate of immigration have pushed up mortgage lending (Switzerland 15).

Political Analysis Decentralization is one of the chief characters of the Swiss political system, with much authority being delegated to the 26 states or cantons. The country has a unique democratic system where the electorates have the final say on any fundamental policy decisions.

Referendums concerning contentious political issues are a key element of Switzerland’s well-established tradition of "direct democracy". However, this transparency has affected the pace of reforms in the country (Switzerland 16).

The Swiss system is renowned for its political stability.

The system thrives on consensus, as in its coalition government, diverse ideologies combine in the process of policymaking. The chances of Switzerland joining the EU in the near term are slim, as the idea does not find much favor among its citizens as of now. The Swiss seem determined to remain outside the EU to maintain their sovereignty. The growing xenophobia against Muslims and the straining of bilateral ties with the EU are some of the challenges that the country must deal with (Switzerland 16).

Switzerland’s Political Landscape SWOT STRENGTHS -Ideal democratic system -Robust performer on governance indicators OPPORTUNITIES -Political stability -Expanding relations with non-European states

WEAKNESSES -Bid to join EU withdrawn -Institutional effectiveness versus transparency THREATS -Growing discrimination against Muslims

Economic Analysis Switzerland’s banking sector is an important segment of the Swiss economy, with over 5.5% of the workforce active within it. Furthermore, Switzerland has a robust external sector and hence a strong current account surplus. In order to close major gaps in the country’s transport infrastructure and to promote an environment-friendly transport policy, the government has undertaken various railway infrastructure projects. The economy continues to be at risk owing to its dependence on the EU for its exports. Overheated property markets are also a cause of concern for the Swiss National Bank as low interest rates along with a high rate of immigration have increased mortgage lending (Switzerland 19).

Switzerland’s reputation as a safe-haven in times of crisis led to a glut of capital inflows during the global financial crisis, triggering appreciation of the Swiss franc. Average real estate prices have increased by around 50% since the late 1990s, but in some regions, the increase in real estate prices has been much more. Since 2000, the average owner- occupied apartment witnessed a 70% price increase. Prices of average owner-occupied apartment increased around 4% per year, while in the Lake Geneva region it increased by up to 6%. Moreover, demand for buy-to-let residential property has also remained on the higher side (Switzerland 24).

The UBS Swiss Real Estate Bubble Index, which is a

quarterly index that highlights the risk of a property bubble in the Swiss residential housing market, has put the real estate sector in the risk zone since the fourth quarter of 2012. The index increased from 0.84 in the first quarter of 2013 to 1.38 in the first quarter of 2016.

The index defines the risk zone at a level greater than one. This increase in the index has come about in spite of restrictions, such as stricter capital requirements for mortgages with high loan-to-value ratios prohibiting the use of pension fund savings as collateral (Switzerland 25).

Swiss Economy SWOT STRENGTHS

WEAKNESSES

-Well-developed capital market -Job-creation capacity of the financial sector -Strong GDP growth

-Productivity issues -Low credit growth -Law trade intensity

OPPORTUNITIES -Infrastructure development projects -Financial sector reforms

THREATS -Overheated property markets -Risks associated with prolonged accommodative monetary policy and inflated balance sheet of Swiss National Bank

Social Analysis Switzerland excels in human development indicators.

The country has one of the highest wage levels for workers in Europe and a well-developed social security system. Although Switzerland is credited with high wages, its high cost of living negates this to some extent and the proportion of the working poor is surprisingly high. Another challenge that Switzerland faces is an increasing elderly population and a declining birth rate.

Social expenditure could come under immense pressure because of the increasing outlay on pensions and

healthcare. Structural reforms are therefore required to ensure the financial sustainability of social programs in the long term. To this effect, the government has charted out comprehensive reforms to check the rising costs of social security in the long term (Switzerland 28).

Swiss Social System SWOT STRENGTHS -High human development -Universal social security system OPPORTUNITIES -Pension reforms -Expenditure on healthcare is set to increase

WEAKNESSES -Low women participation in the job market

THREATS -Rising relative poverty rates

Technological Analysis Technological innovation backed by excellent research is the key to the success of the Swiss economy. According to the Innovation Union Scoreboard 2015, the country is considered a global innovation leader. The country has a robust telecom sector. The private sector plays an active role in the overall development of technology and the country is home to flourishing multinational companies thanks to favorable government policies. However, R&D focuses on only a few sectors. Switzerland is also

slowly losing its edge as an R&D destination, as many companies have shifted or located their R&D operations abroad. High costs associated with R&D activities in Switzerland are driving away Swiss multinationals from domestic units to their foreign subsidiaries. The government could provide tax incentives or tax credit schemes to R&D projects, which could lower their cost of funding (Switzerland 34).

Switzerland’s Technological Landscape SWOT STRENGTHS -Strong capacity for innovation -Private sector participation in R&D OPPORTUNITIES -New programs in nanotechnology

WEAKNESSES -R&D focus on few sectors

THREATS -Lack of knowledge intensive workers -Low on R&D incentives

Legal Analysis

imprisonment (Switzerland 39).

The Swiss legal framework and policies are part of a highly developed system, in which laws are well defined and the judiciary is independent of the branches of government. The country’s rankings in the Doing Business 2016 and Index of Economic Freedom 2016 show that the country’s regulatory environment is favorable to businesses. However, the success of “Minder initiative”, which put a cap on executive pay, might reduce the attractiveness of Switzerland for multinational corporations and can affect Switzerland’s reputation as a place for doing business (Switzerland 39).

Switzerland has not performed well in product market regulation especially in the professional services and the transport sectors. Product market indicators are a set of metrics that measure the extent to which policies framed by the government promote or inhibit competition in areas where competition is possible. Many of the sectors are regulated compared to their European counterparts. This is indicative of a less competitionfriendly market and hints at monopolies in various sectors. The government should take measures to ease product market regulation to strengthen competition, especially in the network industries. High regulation increases production costs for businesses and depresses the purchasing power of households (Switzerland 39-40).

Switzerland was listed as the fourth freest economy on the Heritage Foundation’s and the Wall Street Journal’s 2016 Index of Economic Freedom. The country scored 81.0 out of 100 on the Index of Economic Freedom. Thus, Switzerland has high levels of investment freedom, trade freedom, financial freedom, property rights, business freedom and freedom from corruption. Corruption is almost nonexistent in Switzerland. The country ranked seventh out of 167 countries in Transparency International’s Corruption Perceptions Index for 2016.

With a score of 86 out of 100 on the index, Switzerland is ahead of other European countries such as Germany and the UK. There is strict legislation in place to control corruption and enforcement procedures against corruption are effective: giving or accepting a bribe is subject to criminal and civil penalties, including

Swiss Economy SWOT STRENGTHS -Ease of doing business -Corruption is almost nonexistent OPPORTUNITIES -Efforts to move towards greater transparency and cooperation of international tax matters -Corporate tax reform

WEAKNESSES -High product market regulation still plagues the energy and the communication sectors THREATS -“Yes” vote to referendum on fat cat pay and immigration restrictions can hurt business friendly image

Switzerland has long enjoyed the reputation of

being a tax haven; however, its banking secrecy laws have led to tax evasion, which has attracted criticism from countries across the globe. The government has declared that the country no longer wishes to attract undeclared assets to its financial sector. Through its Tax Administrative Assistance Law, which came into force in February 2013, the government had tried to address a host of deficiencies in its exchange-of- information framework pointed out by the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes in 2011. The government has been improving its international co-operation in combating tax evasion.

The country is revising its tax treaties with other countries to incorporate wholly the global standard on the exchange of information on request between tax administrations. Hence, in line with these efforts, in October 2013, Switzerland signed the Convention on Mutual Administrative Assistance in Tax Matters. These efforts are a step forward towards automatic exchange of information, which the G20 endorses as the new global standard in the international tax area (Switzerland 42).

companies a lower rate of tax on income earned abroad than on that earned in Switzerland, a practice that is also known as “ring-fencing�. The Finance Minister, Eveline Widmer-Schlumpf, issued a statement in March 2013, promising to take measures to resolve this disagreement. In December 2013, the Federal Council issued a final report on Swiss Corporate Tax Reform (CTR) III to address the issue and instructed the Swiss Federal Department of Finance (FDF) to consult with the Cantons (Switzerland 42).

In a referendum held to put a cap on executive pay at exchange-listed companies in March 2013, around 68% of the Swiss electorate voted in favor of expansion of shareholder rights in determining senior management salaries. The terms of the popular initiative give the shareholders a binding right to vote annually on remuneration packages of the board of directors and the executive committee. Furthermore, the initiative proposes criminal prosecution against members if they do not follow regulations. The government passed an interim ordinance effective January 1, 2014 and the companies had time until the end of 2015 to abide by the new regulations. These regulations can Apart from banking secrecy laws, another major concern make Switzerland a less appealing destination for for the EU, in recent times, has been the differential multinational corporations. Moreover, impending tax rates imposed on domestic and foreign revenues of immigration restrictions could mean businesses in multinational companies in some cantons. According Switzerland may find it difficult to find skilled workers. to the European Commission, the tax regimes in some These restrictions may hurt Switzerland’s business cantons distort competition by charging multinational friendly image (Switzerland 42).

Industry Analysis

The Global Hotel Industry The global hotel industry has showed continued growth over the 2010-2016 period and is expected to reach $553.8 billion in revenue by year 2018. The hotels and motels industry is dominated by large international players, who compete intensely for a share of the market amongst themselves and with numerous smaller independent players. The top 5 leading hotels worldwide as of 2015 were InterContinental Hotels Group (UK), Marriott International (US), Hilton Worldwide (US), Accor (France), and Starwood Hotels & Resorts (US) respectively with 2015 revenues ranging from $5.76 billion to $24 billion.

The European hotels & motels industry has been growing well in recent years and the industry is set to maintain a similar level of growth rate in the forecast period. Tourism has been boosted by the influx of tourists from emerging Asian economies, which has greatly benefited the hotel & motel industry. However, recent terror attacks across Europe have negatively affected the tourism in Europe which will hinder the growth in hotels and motels industry.

In 2020, the European hotels & motels industry is forecast to have a volume of 197, 798 establishments, an increase of 10.8% since 2015. Leisure is the largest segment of the hotels & motels industry in Europe,

accounting for 79.3% of the industry’s total value.

Switzerland accounts for 2.63% of European geographic segmentation with 5,040 companies. In 2014, Switzerland ranked the sixth most expensive country worldwide for hotel rates, with the average room rate totaling $241.60 a night. Additionally, Geneva and Zurich were both included in the top 9 most expensive cities for business travel worldwide in 2015 by daily hotel costs.

The occupancy rate for the European hotel industry has increased over the 2008-2015 period with a 70% occupancy rate as of 2015.

The leisure segment was the industry’s most lucrative in 2015, with total revenues of $197.5bn, equivalent to 79.3% of the industry’s overall value. The Business segment contributed revenues of $51.5bn in 2015, equating to 20.7% of the industry’s aggregate value.

The performance of the industry is forecast to accelerate, with an anticipated CAGR of 6.2% for the five-year period 2015 - 2020, which is expected to drive the industry to a value of $335.8bn by the end of 2020. The sustained and forecasted growth of the Global Hotel Industry indicates that the present would be a good time to invest in the Hotel Industry.

Key Players Travel Agencies A travel agency is an agency engaged in selling and arranging transportation, accommodations, tours, and trips for travelers- this is also called a travel bureau.

There are several key players in luxury travel agency segment: Virtuoso, Zicasso, Abercrombie & Kent, The Luxury Travel Agency, and Kensington Tours.

Blogs and Magazines Famous blogger’s ideas have the power to influence follower’s attitudes and their blog provides useful

suggestions to readers. Magazines also serve as a source of authoritative information for readers with data analysis. The ’10 Best Luxury Travel Blogs to Follow in 2017’ are The Travelista, The Harper Way, Just Luxe, The Luxe Travel, Luxury Travel Mom, The World of Wanderlust, Mrs O Around the World, Luxe in a City, The Style Traveller, and A Luxury Travel Blog. Highend lifestyle magazines include Robb Report, Upscale Living Magazine, Modern Luxury CS, Niche Media, Afar Magazine, and Black Ink.

Swiss Lodging Industry Switzerland’s traditionally dynamic hotel industry has been under pressure recently due to new lodging solutions, the strong Swiss franc and changing tourist preferences. 2015 proved to be another challenging year for the industry as the strong Swiss currency resulted in fewer bookings from European countries in particular.

This led to a 2% decline in the weighted average revenue per available room for the Swiss hotel industry, while both the average occupancy rate and revenue per room also declined in 2015. However Swiss lodging’s current

value sales increased by 2% in 2015 to reach CHF3.8 billion. Also lodging is expected to see a value CAGR of 3% at constant 2015 prices for forecasted period with sales reaching CHF4.3 billion by 2020.

The forecast statistic below shows the revenue of hotel accommodation in Switzerland from 2009 to 2013, with forecasts up until 2020. By 2016, revenues of hotel accommodation in Switzerland are projected to reach approximately 7.69 billion U.S. dollars.

Swiss Hotel Revenue

$8.4

$7.1

In million USD

$8.1 $7.5

$7.6

$8.0

Short term rentals have long been an important

hotel lobby may eventually lead to legislative change. In addition, the growth of the short term rental industry could lead to an oversupply of units and thus put pressure on average unit prices.

part of the Swiss lodging industry. However new intermediary players such as Airbnb and booking.com have managed to professionalize the market and make it more accessible for all kinds of tourists. Meanwhile, Over the review period, the general trend away from this professionalization appears to coincide with rising classic mountain destinations and towards urban areas tourist demand for more authentic travel experiences continued, partly due to the growth in the number of and thus closer interaction with locals and actual homes. business trips, which also tend to be less price sensitive.

Economic hubs such as Zurich, Basel and Geneva have Short term rentals in Switzerland is a fragmented market, thus seen a rise in lodging value sales while mountain although this is beginning to change with the arrival of regions and classical tourism destinations such as Airbnb. Historically, the distribution of short term rentals Zermatt, St. Moritz or Crans Montana have struggled. has been concentrated in privately owned and managed Competition from Austrian, French and Italian mountain short term rentals, especially in mountainous regions. resorts has contributed further to this trend, with such However, Airbnb is both taking an increasing share of an destinations generally offering much cheaper holiday otherwise fragmented market and helping to expand it. packages.

Indeed, almost 70% of net growth in sales in 2017 were accounted for by Airbnb, which focuses more on urban With the Swiss travel industry under increasing pressure, locations. Another major player is Booking.com, which companies’ cost structures and business concepts are Euromonitor includes among lodging intermediaries as increasingly being put to the test. Clear cut business short term rentals are not the company’s main focus. models tailored towards, for example, consumer price sensitivity or a sense of style are thus crucial in order to The quickly changing and growing short term rental allow for differentiation from competitors. industry has been heavily criticized, mainly by the hotel industry, for persistent “regulatory double-standards” since many safety, tax and competition regulations do not apply to such rentals, which is currently a legal grey area, with no new legislation being introduced over the review period. Meanwhile, mounting pressure from the

With the lodging industry under increasing

within the hotel market, small hotels with less than 50 rooms still account for 90% of the total market. As pressure, mainly due to high prices in Switzerland, it mountain regions may struggle over the forecast period, is increasingly important to offer innovative solutions these small hotels are expected to come under increasing and concepts to attract consumers. In addition to pressure. Successful market players in traditional understanding that all available marketing channels tourism destinations may combine service culture with have to be utilized, market players are also focusing on a sense of “survivalism”, thus appealing to consumers’ new collaborative models such as between hotels and the preference for authentic experience and real culture. shared economy.

It is likely that 2016 will prove a challenging year for the lodging industry as the strong Swiss franc is resulting in a decline in bookings from foreign tourists. Indeed, the impact of the strong Swiss currency could be stronger in 2016 as a backlog of pre-bookings bolstered value sales in 2015.

Switzerland is expected to remain a hub for the financial and pharma industry, international diplomacy and innovative business. Examples of the country’s importance on the international scene include Google’s decision to base itself in the country, the Chinese Development Bank’s European hub in Zurich, Nestlé’s headquarters in Vevey, and the headquarters of Novartis and Roche in Basel. As a result, business travel is expected to continue to be a key generator of lodging revenue over the forecast period and could encourage consolidation within the sector over the coming years.

Although there is a tendency towards consolidation

Short term rentals are expected to continue to grow at a solid pace as tourists increasingly look for authentic travel experiences and budget accommodation in a livelier environment. Meanwhile, the fact that the number of short-term rental outlets is expected to continue to grow over the forecast period, albeit at a declining pace, may put pressure on unit prices.

Short-term rentals will increasingly come under legislative pressure as the hotel lobby pushes for additional regulation, with it being argued that companies like Airbnb do not offer sufficient consumer protection and that double standards are applied to the hotel industry and short term rental players. This legislative grey area must therefore be addressed as the market continues to grow.

Hotels with agile and thus adaptable concepts are

expected to perform well over the forecast period.

Furthermore, collaborations will be crucial for hotel chains to utilize and participate in the shared economy, rather than to purely compete against it. This may additionally help to shape the profile of hotel chains, thus offering more authentic and diverse experiences.

With millennials accounting for an increasing share of travelers over the forecast period, their preferences will be anticipated and considered more. Millennials are generally perceived to be more concerned with sustainability, open and comfortable with the sharing economy, looking for easy booking options, and eager for authentic experiences. Meanwhile, traditional homogenous and predictable travel may be rejected by this demographic.

Swiss Tourism Industry Switzerland is a tourist destination with great potential for growth, with the country boasting a large range of scenic and cultural attractions as well as excellent infrastructure and high quality service. The federal tourism policy focuses on a growth strategy based on a series of programs focusing on key priority projects. This program relies on four main strategies: deploy strategic issue management, intensify cross-cutting activities, make tourist offerings more attractive and improve brand image for Switzerland as a tourist destination.

The national tourism board, Schweiz Tourismus, uses social media and mobile web campaigns and apps to promote Switzerland as a tourist destination. In addition, Schweiz Tourismus uses different social media platforms such as Facebook, Twitter, YouTube, Google+, Pinterest, Tumblr, LinkedIn and Flickr to promote and advertise Switzerland. The board’s website also offers information on the available tourist attractions in Switzerland, travel accommodation, transportation, interesting destinations and attractions, gastronomy and retail shopping.

The fact that Switzerland is located between Western and Central Europe and also easily accessible from virtually anywhere on the continent is a key asset for the country as a touristic destination. Compared to other competing destinations, Switzerland has a welldeveloped road network and an excellent railway system as well as several airports, the three largest of which are Zurich Airport, Geneva Airport and Basel Mulhouse Airport.

Domestic tourism is a very important part of the overall tourism offering in Switzerland and plays an important role in the context of the economy. Swiss people are known to appreciate their country and its available attractions relating to nature, cultural events or tourism.

This offer covers skiing, attractions for families, out-door activities and sight-seeing.

The three leading source countries for inbound arrivals in Switzerland during 2013 were Germany, China and the US. In 2015, the number of inbound arrivals from Germany stood at 1.8 million, which can be attributed to the high number of tourists crossing the border from Germany to Switzerland. China was the second largest source market in 2015 with 893,000 trips.

Tourism growth flows in Switzerland are set to increase moderately over the forecast period, with the number of arrivals from BRIC countries expected to increase.

However, in a continuation of trends first registered during the review period, arrivals from larger European source countries are set to grow only slowly during the forecast period due to accelerating price increases, which is expected to remain a barrier to further growth.

The specter of unemployment as well as the turbulent

economic environment in neighboring European countries may constitute a threat to the further development of tourism flows in Switzerland. The highvaluation of the Swiss franc is also expected to result in foreign tourists, specifically from the Eurozone, choosing other destinations for their vacations. However, opportunities can also be found from the number of inbound tourists with high-income and affluent consumers from non-EU countries. For example, a growing number of tourists from China and Russia are visiting Switzerland in order to go on luxury shopping trips.

Healthy & Wellness Tourism Medical travel covers a broad range of objectives, from the search for practitioners in places with a long tradition of medical excellence, such as Switzerland, to lower-cost treatments in countries like Poland, Hungary and Turkey that combine more affordable costs with high medical standards.

Many clinics now aim for specialist treatment in a beautiful location, and there is hardly a major hotel now that does not offer spa or other wellness facilities.

Consumers are taking a growing interest in lifestyle issues such as diet, fitness and healthy living habits.

Euromonitor International research found that the “Fascination with mental wellbeing reveals consumers are looking beyond physical fitness in striving for optimal health”, and this includes travelling to other climates and foreign countries.

Background Travelling in search of health benefits is not a new phenomenon. From the early 19th century, people travelled to take the waters in the English spa of Bath, or rubbed shoulders with King Edward VII of England in the glamourous Czech spas of Karlsbad (now Karlovy Vary) and Marienbad. In 1870, Empress Elisabeth of Austria launched the Northern Italian town of Meran as

an “air spa”, and German author Thomas Mann in his novel, “The Magic Mountain”, described how sufferers from lung diseases found their cures in the clean air of the Swiss mountains. The German word ‘Luftkurort’, a place where patients are cured by the quality of the air, sums up the part of health tourism regarding lung conditions. Today, the health industry distinguishes between curative health tourism and wellness tourism; there is a strong trend towards the pursuit of health combined with entertainment and travel.

Key Trends - Health care and rehabilitation - Wellness: a prime selling point for the hotel industry - Cosmetic treatments - Luxury health tourism

Business Opportunities - The protestors of the late ‘60s and the baby boomers, a generation versed in travel and with high disposable incomes, have reached an age when they become ultraaware of health issues - Euromonitor International research shows that affluent working women are most likely to spend on spa services - Activity holidays for physical and mental health are a growth sector, this includes such diverse interests as Eastern philosophies, landscape painting, cooking or yoga - Money is no object when it comes to top-of-the range luxury pampering and rejuvenation treatments.

Healthcare & Rehabilitation The Waldsanatorium in Davos, Switzerland, is said to be the real-life model for the literary “Magic Mountain” alpine ‘Luftkurort’. Today, it has become a four-star hotel, Waldhotel Davos, promising “Well-being for your body, mind and soul. Relax and enjoy some pampering in our spa pavilion with the only indoor saltwater pool in Davos”. Switzerland has a reputation for quality healthcare that attracts many solvent patients.

Wellness As A Selling Point Most major hotels now offer spa services as a matter of course. Some are mutating into veritable temples to health, offering massages and therapies for body and soul from aromatherapy to yoga, from Ayurveda to Zumba. Stressed individuals spend time in monasteries seeking silence and inner peace in the face of imminent burnout; others find improvement in physically demanding activities from climbing to white-water rafting in alpine rivers, or in mineral-rich mud packs or immersion tanks. In Germany, the health benefits of walking in water, discovered by 19th century priest and hydro therapist Sebastian Kneipp, are being revived in spas and with water troughs alongside mountain paths, where weary walkers can refresh their feet.

The European Spas Association features certain specialized resorts, such as Kaiserbäder on the Baltic

island of Usedom, as an example of a whole region marketing itself as a specific Thalasso destination, a treatment related to the sea which claims to have a regenerative effect on the human metabolism. Another Thalasso destination is Tunisia with 50 thalassotherapy centers along its coast. Budapest’s Gellért Baths are legendary for their art deco style, long popular both with tourists and locals while, in the Danish luxury resort Hotel Vejlefjord, AquaMeditation “Combines the restorative powers of water with the principles of meditation”.

The Luxury Factor Those who can afford special and exotic health and wellness treats find them in European luxury spas such as the quiet Terme di Petriolo in Tuscany, the Luxury Spa Hotel Atlantic Palace in Karlsbad (a traditional hub for health travel dating from the Austro-Hungarian Empire), or the bracing Laugarvatn Fontana in Iceland.

For authentic sauna and steam treatments the visitsauna. fi site offers a guide to sauna spas in Finland, while in Portugal’s Douro Valley, peace is sought in the organic gardens of the renovated 19th-century splendor of a Six Senses hotel.

Switzerland, the home of European top-of-the-range health tourism, has an endless range of spas, including star architect Zumthor’s luxury Therme Vals, built from

slabs of locally quarried Valser Quarzite, described by the architectural review.com website as “Resonant with an elemental materiality and full of myriad therapeutic delights… conceived as a cavernous, labyrinthine haven devoted to sensual pleasure”.

For the ultimate combination of holiday and health, many cruises now offer health, Ayurvedic and detox treatments, with German cruise line AIDA, as an example, promoting “Yogaida” trips. Norwegian Cruise Line’s ship, Norwegian Escape, has the “Mandara Spa” who’s after-sauna cool rooms contain real powder snow, and cruise company Silversea evokes “a personal journey of wellness” with “CruiseLite Dining” for figureconscious passengers.

Consumer Patterns According to the Global Briefing “Experiential Licensing: Consumer Fundamentals Falling into Place”, today’s consumers are increasingly redefining their values and priorities. The “experiencing is everything” phenomenon is driving growth for themed holidays and hotels, presenting a wide range of opportunities for Travel and Hospitality. Consumers are increasingly seeking to “do something different” searching for unique, and often personalized experiences.

by year 2020 .

The second largest demographic for travel is the 25-34 age group. Within this group, individuals are professionally active and have not yet started a family and thus tend to have good purchasing power.

Millennials, defined as consumers aged 25-34 years, is a sizeable demographic and key segment for licensing.

Travel is an important area for millennials with this group projected to record the fastest growth in world travelers with a forecast to increase by 69.7 million over Travel is most popular among 50-64-year-old baby 2015-2020. Themed travel is part of a phenomenon that boomers, who often enjoy comfortable incomes and strong spending power. Additionally, the “forever young” is no longer about a property targeting just commercial movie screens but now includes anything related to the baby boomers reaching late middle age are a strong concept of fan engagement. The underlying trend that demographic for wellness tourism. The majority of has given birth to the integration of various aspects of travelers to Switzerland during 2015 were aged 50-64 travel is the connection of entertainment, lifestyle and (1,407,700), followed by age group 35-49 years (1,352,700), sports which are heavily influenced by celebrities and and ages 25-34 (1,340,000). Over the 2010-2015 period travelers increasingly visited Switzerland, with 6,825,2000 global brands. visitors accounted for in 2015. The most popular time for tourists to visit was in July (1,119,300 visitors), followed

by April (832,700 visitors) and June (730,300 visitors).

Spas and medical tourism were the two top activities financially for tourists visiting the country over the 20102015 period. Tourist spa spending brought in $2,250,425 during 2015 and is predicted to grow to $2,480,172 by year 2020. Additionally, medical tourism spending brought in $1,092,099 during 2015 and is predicted to reach $1,313,056

There are currently 15.8 million affluent Millennials

with annual incomes over $100,000. Spending power for affluent Millennials is expected to increase because they’ll receive a generational transfer of $59 trillion in wealth over the next several years. By 2018 to 2020, this group will become the largest generational segment in the U.S. luxury consumer market. Although affluent Millennials may not have many assets and do have some debt, they still spend a high proportion of their disposable income on technology, travel, and entertainment. Affluent Millennials are spending more on traveling because they see more validation in experiences compared to purchasing an expensive item. Iconic, branded resorts are well-positioned to benefit from this trend because affluent Millennials tend to pay more to get posh treatments. Six in 10 affluent Millennials read user-generated product reviews before they spend their money (MUMA, 2016).

According to the University of South Florida, 78% of Millennials would choose to spend their money on an experience over buying a product and 55% are more willing to spend more on experiences than ever before. Skiing, snowboarding, mountain biking, hiking, golfing, rafting and kayaking are among the most popular experiences mountain resorts have to offer. The megatrend should continue because approximately 72% of Millennials admitted that they will increase their spending on experiences next year (MUMA, 2016).

Today’s consumers are increasingly redefining their values and priorities, with the “experiencing is everything” phenomenon driving growth for themed holidays and hotels (Tansel, 2016). The increased demand for themed travel has created a void for global brands like Fendi to fill which can offer the unique and personalized experiences travelers desire while simultaneously building fan engagement. “At Fendi we go beyond creating excellent products; it’s the singular experience we provide that sets us apart. Luxury is something that’s able to transmit emotions and create a special moment, memory for life” expressed CEO Pietro Beccari (Fendi, 2016). Fendi Retreats will provide an environment where patrons can explore Fendi in a new light, and form these lifelong memories and emotional connections with the brand.

Target Market Identification

Luxury mountain resorts serve a high-end

demographic, are resilient to fluctuations in the economy, and have a target market of adults around the age of 35. However, many new resorts seek a younger mix of consumers: about 50% of the guests are under the age of 35. Similarly, Fendi’s target consumer is 30-40-year-old women from either of their two largest markets- China and the U.S. The fashion house has also tried to attract younger consumers in the 20-25 age range with less expensive items like accessories.

and high quality products. Overlapping personality traits from luxury skiers and Fendi consumers include elegance, sophistication, respect for traditions and craftsmanship, energy, daring, innovative and playfulness.

This target market analysis must also take into consideration the megatrend of millennials spending more money on experiential traveling than previous generations, drawing a younger demographically then historically recorded. The target market for Fendi Resorts will be comprised heavily of destination guests, The average ski resort destinations guest’s annual income or guests who travel and stay at the resort for longer is about $295,000. About 25% of Beaver Creek and Vail periods of time. These guests are not sensitive to adverse destination guests, top U.S. luxury resorts, have annual economic conditions because 85% of them are in the incomes of about $500,000. Fendi’s core consumers share upper-income bracket and their demand for vacationing a similar level of wealth evident by their strong appeal is inelastic. for craftsmanship, exclusive items, personalization,

Competitive Landscape

Leading Resorts

Many consumers look to vacations are a way to hit the reset button and get back to their exercise and fitness regimens. Additionally, those who do manage to stay fit year-round may not want to part with their healthy lifestyle choices when on vacation for a week or two.

There is a lot to be said for the mind-body connection.

From rustic yoga retreats to luxe private island escapes, there are many places one could enjoy a health and wellness vacation.

Parrot Cay and Como Shambhala Retreat, Turks and Caicos Accessed via a 30-minute boat ride from Providenciales, this 1,000-acre all-inclusive resort on a private island is the definition of tranquility. With an incredible infinityedge pool, world-renowned COMO Shambhala Spa, waterfront Balinese-style villas, doting service, and more than three miles of pristine beaches, it's easily one of the most luxurious and romantic options in the Caribbean.

The spa offers holistic treatments to help guests achieve both physical well-being and spiritual balance, and facilities include a yoga room and Pilates studio. A popular package here is the "Be Active" option, which includes daily yoga classes, wellness consultations, and a private kayak excursion. Rates range from $603- $3,434 per night for a standard room.

The Sanctuary on Camelback Mountain, Scottsdale Considered one of the top resorts in the Southwest, the serene Sanctuary continues to impress its high-profile

guests with its cuisine, spa, and gorgeous suites. The spa and fitness offerings include five tennis courts, a movement studio, extensive spa therapies, and various trails for hiking and biking. It undeniably has the most desirable location in Scottsdale, overlooking Praying Monk Rock and the desert -- not suburban sprawl. Prices range from $328-$1,091 per night for a standard room.

The Kulm Hotel, St. Moritz One of the first hotel and spa’s in Switzerland to address health and wellness, the Kulm Hotel is steeped in history. This hotel offers the best views of Lake St. Moritz and is situated in the heart of the village. Their wellness concept is based on three pillars: relaxation, detoxification, and regeneration. It’s hospitality history stretches over 160 years but also allows guests to enjoy the modern comforts of a five star hotel. Prices range from $384- $1,582 per night for a standard room.

Badrutt’s Palace Wellness has always been a top priority for Badrutt’s Palace Hotel, which has been eager to offer only the very best to spa lovers from the outset. Throughout the 20th century, hotel guests have been fans of an active lifestyle, in winter and summer alike. From skiing and ice-skating to swimming and hiking, Badrutt’s Palace Hotel is renowned for its varied programme. The infinity swimming pool is just one of the many examples of the hotel’s revolutionary innovation. Built in the late sixties, the pool was considered so unique in its design that it set a benchmark for Alpine resorts. Prices range from $415$1,781 per night per standard room.

Leading Resorts

The Kulm Hotel, St. Moritz

Badrutts Palace Hotel

Parrot Cay and Como Shambhala Retreat

The Sanctuary on Camelback Mountain

Other Leaders Luxury Retreats Founded in 1999, Luxury Retreats specializes in personalized vacations in more than 90 destinations around the world. The exclusive portfolio includes more that 2,800 luxury properties, each hand-picked and personally inspected by their global team of passionate travel enthusiasts to ensure that their guests are offered only the finest. Some of the company’s more well-known properties include Richard Branson’s Necker Island and Francis Ford Coppola’s evocative palazzo in Puglia, Italy.

As a full service villa rental company, Luxury Retreats offers customers complimentary concierge services, worldwide guest support, as well as villa specialist to help people find their perfect villa- all without charging any membership fees.

Luxury Wellness Cruises Luxury Wellness Cruises’ ships are designed for those who delight in the thrill of discovery while indulging the mind and body in the most lavish surroundings imaginable. Advertising spacious accommodations, with ocean-view suites that include butler service and verandas. Renowned for culinary excellence, entertainment and open deck pools, Luxury Cruises offer a choice of open-seating dining options, as well as several specialty venues aboard the ship. Luxury Wellness offers a journey of reawakening across the globe, integrating luxurious surroundings, profoundly therapeutic yoga sessions, and a gentle sense of joy and discovery.

Primary Research

In addition to the secondary research gathered on the

accommodation, skiing, and wellness tourism industries, primary research was conducted to gain specific insight on the target consumer and what he or she desires from such services. Primary research will also help establish or disprove that Fendi Mountain Retreats is relevant and logically connected to the parent brand Fendi, which will indicate the level of success as a brand extension opportunity. Understanding attitudes and preferences for such services provided a solid foundation on which to build a business strategy.

Research Goals The goals of the primary research were to: - Understand the opinion consumers have of Fendi - Better understand the idyllic luxury tourist - Understand consumers who participate in wellness tourism - Gain insight as to what consumers desire from luxury accommodations - Evaluate what Fendi’s competitive advantage would be in the market

Methodology This project aims to create and establish a sector of Fendi that has not previously existed. Fendi Mountain Retreats intends to launch into a new market leveraging the equity of its well-known parent brand and capitalizing on recognition, goodwill, and positive associations. The primary research focuses on the benefits, attributes and features consumers currently perceive Fendi as offering.

Then in order to determine brand fit, research related to possible future extensions and their similarity to the existing core product and business will be conducted.

The primary strategy is to use consumer insights to uncover predetermined objectives: - The position that Fendi owns and what makes it unique to consumers. (Fendi has to be distinct and own a position in the market) - What does Fendi’s promise provide or deliver to consumers. (Fendi has to have a solid brand promise that consumers recognize, understand and believe) - Does Fendi elicit any negative feelings for consumers.

(Fendi must not pass on any negative perceptions to extensions) - What do consumers need or want that the existing Fendi brand or hospitality and wellness industry is not providing. (Extensions have to fill a need, void, or consumer want. There must be demand) - What unique feature or benefit would a mountain retreat or wellness spa need to offer consumers for them to consider visiting. (Extension needs to bring something new and different to the category) - Do consumer’s existing perceptions of the Fendi brand fit the hospitality category. (Extensions have to be introduced in categories and markets where consumers believe those brands will fit)

Conducting primary research will be useful to acquire

- The SCAD Fashion Facebook group is monitored by SCAD Fashion faculty and allows students to discuss accurate and current information about consumer needs, industry trends, collaborate, and partake in student perceptions, demand, and various characteristics of research. This group contains a concentrated pool the intended market. Resources used to collect primary of highly educated fashion peers who could provide research will include online surveys and interviews. valuable insight about the extension.

Online Surveys As a primary research tool, surveys will be conducted electronically through internet platforms Survey Monkey and Google Forms. These surveys are intended to elicit responses that would be helpful in the assessment and understanding of relative information. A questionnaire was developed using Google Forms to collect data on consumer evaluations of the parent brand and the Fendi Mountain Retreats extension. The survey instructions indicated that only participants who were aware to some degree of the brand should participate. The questionnaire was posted on accessible forums where the target market and current consumers were thought to frequent:

- The forum website Reddit with the subreddits AskAcademia and LuxuryTravel. AskAcademia is for discussing academic life, and for asking questions directed towards people involved in academia, (both science and humanities) and allows users to share/ partake in serious academic surveys. LuxuryTravel is a subreddit dedicated to sharing high end travel information and advice.

- The survey was also posted on various personal Facebook Profiles to target associates and friends as well as sent directly through email.

Standardized constructs to measure the brand reputation, similarity fit, perceived risk, and overall brand extension were used while developing the questionnaire. Questions on the positive attitude, satisfaction of the brand, and positive association of the brand were used to establish the reputation of the parent brand Fendi. Questions on overlap between parent product category, extended product category, and competence of the original products and features were used to find out the similarity dimension and logicality of extension.

Interviews In order to gain additional insights, interviews for this project will be conducted in person, by email, and/or by phone. Persons of interest to interview are representatives of the target markets, employees of Fendi, and luxury ski resort vacationers. The intention of conducting these interviews is to gain a broader understanding of current and potential customer patterns.

Kirk Muller is a retired professional ice hockey wing who played in the National Hockey League for 19 seasons from 1984–85 until 2002–03. He was also the head coach of the National Hockey League’s Carolina Hurricanes from 2011 to 2014. Since 2016, he’s associate coach with the Montreal Canadians. Due to Kirk’s professional athlete status, him and his family are recruited to test out new accommodation sites for the company Luxury Brief interviews were conducted with target demographic Retreats. They essentially experience and review properties that are being considered for addition to individuals who are either professionals in the luxury accommodation industry or ski industry, or participants Luxury Retreats portfolio. This privilege has allowed the Muller family to visit luxury accommodations worldwide in luxury travel and/or wellness tourism. Interviewees and given them the insight as to what makes a luxury also included those familiar with the Fendi brand. rental from the consumers’ perspective.

Five interviewees were chosen: Courtney Muller, Roy Mashburn, Mr. and Mrs. Coach Kirk Muller, Bryn Bryn Gallagher is a young professional living and Gallagher, and Shelton Moynahan. working in Denver, Colorado at a top ski resort.

Courtney Mueller is a young professional working as a From Bryn’s four years of work experience and daily interaction with resort staff and customers she has Villa Specialist for Luxury Retreats, a Montreal-based gained valuable insight on the interworking’s of marketplace for people to list and find luxury homes ski resorts. Bryn has dealt with problems on both for short-term rentals. Courtney helps manage the company’s 2,800 homes, across 90 locations and is fulfills the company and consumers side and has a unique perspective on what sets her resort apart. concierge and home management services- respectively catering to guests and hosts. Some of the company’s more well-known properties include Richard Branson’s Necker Island and Francis Ford Coppola’s evocative palazzo in Puglia, Italy. Courtney has insider knowledge as to what qualifies properties as a luxury location and where the top luxury vacation destinations are.

Roy Mashburn enjoys his early retirement from the

residential and commercial real estate development industry by spending time with his family and vacationing. Roy has an extension travel history, both domestic and foreign, and has visited numerous highend resorts with a focus on wellness and relaxation.

Roy fits the Fendi Retreats target demographic so his experiences and preferences will provide beneficial feedback on the industry and trends.

Shelton Moynahan founded Moynahan Travel &

Events, a premium travel and event planning service with points-of-contact around the globe in the travel and entertainment industry. As an experienced travel agent, Shelton is well versed in premium travel and servicing clients’ needs. His typical job duties involve booking flights, hotel arrangements, ground transportation, entertainment tickets, restaurant reservations and more.

Shelton is able to provide valuable insight as to what services and amenities clients expect when booking vacations.

Inerview Topics Covered - What type of lifestyle do you associate with fashion house Fendi?

- What are 3 deciding factors that set your resort apart from competitors?

- How frequently have you participated in wellness tourism or a ski/mountain vacations?

- What are 3 services/ products/ qualities that mountain vacationers value?

- If applicable, why do you partake in vacations or wellness tourism?

- What services or amenities do you see an opportunity for improvement with concerning accommodations or wellness (based on past experiences)?

- What are your top 3 leisure activities do you enjoy and why?

- What are the top 3 leisure activities that your guests/clients partake in?

- Your ideal mountain retreat destination would be where and why?

- Your ideal wellness vacation destination would be where and why?

- What expectations and amenities do you associate with luxury accommodations?

- What would your ideal luxury mountain retreat consist of?

- What are the top 3 luxury vacation destinations that you have visited?

- What are 3 deciding factors when choosing a vacation destination?

- What is the average length of your vacation?

Analysis & Primary Conclusions The insight gained from this primary research will help shape a better and more effective strategy for Fendi Retreats. The primary research consisted of a combination of interviews and surveys. Both methods proved valuable in determining the services to be offered at Fendi Retreats in regards to both accommodations and wellness aspects, as well as peoples’ tendency to choose Fendi Retreats over competitors.

The questionnaire research explored the level of brand trust, perceived fit, and consumer innovativeness in relation to a horizontal brand extension for Fendi.

Data was collected from 35 participants through the questionnaire both female and male. The average level of familiarity with the brand indicated by respondents was 66.3% on a scale from ‘not familiar’ to extremely ‘familiar’. Survey results showed that brand trust, consumer innovativeness, and perceived fit were all positive predictors of the overall evaluation of a brand extension.

Lee et al. (2003) have noted that proliferation and short life cycles are unique characteristics of fashion brands.

Therefore, brand-specific associations, such as brand trust, are important factors for fashion brand success in this rapidly changing and expanding market. Brand trust significantly reduces uncertainty when a consumer is faced with a choice of brands, and purchase intention

is determined by consumers’ brand trust when they did not have sufficient information about or knowledge of new products. The questionnaire showed an average level of 58.3% brand trust among participants indicating a high chance of new customers being attracted to Fendi Retreats even when faced with insufficient information of new products. The moderate-high level of perceived fit indicated that consumers perceive Fendi Retreats as being consistent with the parent brand. The horizontal brand extension of a mountain retreat and spa is a short distance from the parent brands current product categories (especially Fendi Private Suites), which attributed to the high level of perceived fit.

Morrin (1999) indicated that consumers usually categorize brand extensions and transfer their perceived quality of the parent brands, or their brand trust, to brand extension based on the perceived fit between the parent brand and the brand extension. In response to open-ended questions asking what qualities Fendi Retreats embodied, the phrases ‘luxurious’, ‘craftsmanship’, and ‘quality’ were the top three. Also, 100% of respondents indicated that Fendi did not elicit any negative feelings or connotations for them. These qualities should be transferred from the parent brand and incorporated into the hotel to ensure consistency.

When respondents were asked what Fendi Resorts

indicated that deciding factors when choosing a luxury vacation or wellness accommodation were accessibility could provide or what their ideal mountain retreat could and proximity to activities, and amenities and services offer the phrases ‘ease of access’, ‘personalized service’ offered. Finally, an average interest level of 68.3% was and ‘streamlined booking’ were mentioned multiple indicated by respondents when asked to rate their times. In order for Fendi Retreats to meet traveler’s interest in a resort and spa offering by Fendi on scale expectations they could offer ski-in-ski-out access, from not interested to extremely interested. Industry personal butlers, a point of contact throughout the entire participants also noted that Fendi Retreats had a unique booking process, and an exceptionally trained staff. value proposition and offering which would likely attract high net worth individuals.

Image, quality, style, design, and a value added offerings are all perceived as important criteria in consumer brand extension evaluations. When questionnaire participants were asked what unique product of feature Fendi Retreats would have to offer in order to gain your business, the top three responses were ‘a unique hotel aesthetic’, ‘spa services’, and ‘activities’. Interviewees also indicated that travelers top expectations were full customer service, ease of booking and access, and privacy. When asked what qualified properties as luxury or what guests wanted from a luxury lodging, inside and outside appearance, surroundings, and amenities were all of equal importance.

Questionnaire respondents average level of consumer innovativeness was 71.1% indicating a high likeliness of them trying a new Fendi product or service. Additionally, they said that location, amenities provided, and the room and hotel design were three most important deciding factors for a retreat selection. Interviewees

Marketing Strategy

Goals & Objectives

Both primary and secondary research indicates that consumers are interested in experiencing the Fendi brand in a new way. Consumers have a positive association of the brand and associate parent brand qualities such as luxuriousness, craftsmanship, and quality with mountain retreats. Research also indicates that Fendi Retreats is aligned with brands original values. These consumers value the privacy, aesthetic, and restorative values that a Swiss Alps mountain and wellness retreat has to offer. Additionally, consumers are taking a growing interest in lifestyle issues such as diet, fitness and healthy living habits. From insight gained, several strategies have been developed to ensure that the consumers’ needs and desires are fully being met, thus increasing their level of satisfaction and brand loyalty.

This strategic plan is focused on and caters to a highend demographic who are resilient to fluctuations in the economy. These specific individuals value personalized service, experiential travel, and wellness tourism. It is Fendi Retreats goal to reach these target consumers through traditional marketing efforts, minimal social media promotion, and with a heavy emphasis on event marketing.

To assist Fendi in expanding into the mountain and

wellness retreats industry, this marketing plan aims to: - Create a new profit point for Fendi - Capitalize on the growing millennial segment’s desire for experiential travel and their increased discretionary income - Create a new customer experience for Fendi consumer’s, wellness tourists, and luxury vacationers - Enhance customer loyalty and Fendi’s desirability - Stay aligned with the brands core values and embody Fendi’s reputation of high-quality, exclusive, craftsmanship oriented designs and experiences.

In order to achieve these goals, the deliverables of this

The expectations of this marketing plan are to generate new customer experiences, and elevate engagement and marketing plan include an introduction to advertising sales by crafting a luxury leisure experience. In order to campaigns, social media accounts and promotions, the ensure that all proposed elements of this plan and goals Fendi Retreats website and promotional events. Through are accomplished it is of the upmost importance that all these channels Fendi Retreats will be able to engage with channels are integrated. The following departments and the consumers and cultivate the desire to visit the Swiss business entities will be involved: Alps newest and most chic retreat.

Traditional Marketing • Social Media • Company Website • Event Marketing • Spa and wellness services • Customer Service • Hotel Staff

Mission

To craft the ultimate retreat and wellness experience.

Vision

To embody the ideal luxury mountain retreat and become a pillar for the Fendi brand.

Overview

This marketing plan is centered around the introduction of Fendi Retreats in the Swiss Alps. This brand extension will create a new profit point for Fendi and a new customer experience for existing Fendi consumers as well as luxury travelers and wellness tourists. Partaking in this unique, personalized and exclusive luxury leisure experience will perpetuate Fendi’s image as one of refined luxury and quality craftsmanship among consumers. The focus of Fendi Retreats marketing efforts will be on print advertisement, digital marketing and event marketing. The Swiss Alps serves as the most idyllic location for guests and will provide and unparalleled retreat experience centered around relaxation, revitalization, and act as a reprieve from everyday life.

Fendi Retreat’s target consumers value exceptional customer service, a vast array of amenities, craftsmanship, wellness and relaxation, and have a driving desire for experiential travel and new experiences. Fendi Retreats will launch as the most desirable luxury mountain and wellness retreat for discerning consumers. While at the hotel, fashion house Fendi will be the inspirational center point by embodying their values and aesthetic and showcasing a cast array of Fendi products, including the Fendi Casa line, throughout. The space will be well designed, not excessively staged or opulent, and angling for more local

experience where guests can get intimate knowledge of their surrounding area.

Fendi Retreats is located in a peaceful ski village connected to premium ski area’s in the world-renown Swiss Alps. Operating as a five-star hotel and spa, the hotel offers outstanding facilities with a luxurious and relaxed atmosphere. As the beacon of mountain luxury, Fendi Retreats includes the main hotel building and outlying VIP chalets along with an extensive offering of services and amenities such as an indoor/outdoor sky bar, five-star spa, health bar, fine dining, private land, heated pools, on-suite Jacuzzis, personal butlers, and private car services. Staying at Fendi Retreats will make guests more balanced, healthy and resistant to stress.

The Experiential Traveler Name: Alexander Holt Age: 40 years old Occupation: Investment Banker Annual Income: >$750,000 Location: New York City, USA Marital Status: Single Education: B.S. Finance Interests: Traveling, kickboxing, skiing, hiking, luxury cars, & film Values: Unique experiences, exclusivity, image, & quality time with friends

The Fendi Enthusiast Name: Mischia Landrey Age: 37 years old Occupation: Part time Gallery Director Annual Income: >$100,000 Location: Franfurt, Germany Marital Status: Married Education: B.A. Art History Interests: Art, pilates, volunteering, reading, & fashion Values: Personalized service, traveling with her husband, philanthropy, & beauty

The Baby Boomer Name: Toni Yamasaki Age: 62 years old Occupation: Magazine Editor in Chief Annual Income: >$850,000 Location: Hong Kong, China Marital Status: Married Education: M.A. English Interests: Reading, swimming, cooking, & cross-country skiing Values: Superior service, unique & exotic experiences, being a trendsetter, & enrichment

SWOT Analysis

The following analysis identifies Fendi Retreats internal strengths and weaknesses, as well as its’ external opportunities and threats.

STRENGTHS

- Fendi’s strong brand identity and global presence - Fendi’s Roman nuance. Rome has an aesthetic sense linked to beauty which can be carried over to Fendi products - Experience in the luxury hospitality industry through Fendi Private Suites - Financial backing from the LVMH conglomerate - Established Fendi Casa line and its implementation into the hotel - Premium location and services

OPPORTUNITIES

- Creating a new experience that does not currently exist in the wellness, hospitality, or Fendi sector - Attracting new customers to the Fendi brand through new offerings and gaining exposure in new demographics - New point of revenue for Fendi - Growing wellness tourism industry - Recession proof consumers - Growing desire for experiential travel and branded experiences - Growing millennial demographic and their increased discretionary income

WEAKNESSES

- Lack of experience in the wellness sector - Entering a saturated hospitality and wellness industry in Switzerland

THREATS

- The growing rental-by-owner trend in the hospitality industry - More established hotels and global hotel brands in the same area - Countries with higher tourism rates than Switzerland - Other fashion branded hotels worldwide

Positioning

In order to differentiate itself from competitors in the saturated ski and wellness lodging industry, Fendi Retreats will focus on service with a more flexible, personalized and sophisticated offering. Competing lodging companies have concentrated solely on the chalet and left other service areas lagging being. Fendi Retreats will operate like a private member club or hotel- catering to guests every need with a high level of personal service and complete flexibility.

Fendi Retreats will offer a holistic approach, where all elements of the holiday are equally important.

Parrot Cay & COMO FENDI RETREATS Badrutt’s Palace

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The Sancutary

Positioning

Less Expensive

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Less Amenities

Kulm Hotel

Marketing Mix Product Fendi Retreat’s is a deliberately intimate hotel offering that includes the main hotel building with 12 luxury suites and 3 independent VIP chalets located in close proximity on the property. VIP chalets are offered in two-bedroom, three-bedroom, and four-bedroom layouts. The limited number of rooms was chosen to offer a feeling of exclusivity and scarcity which will also enable to club to run at full capacity year-round. Artwork and statement design pieces can be found interwoven throughout the properties with discreet references to Fendi’s house motifs. Various elements in the hotel recall certain themes that are often found on Fendi’s runways such as geometry, dualism, manipulation of materials, color blocking, and most importantly of all fur. Each room is unique in design and furnishing with the commonalities of the Fendi Casa line, private balconies, private Jacuzzis, plush bedding, and luxurious bathrooms.

The Spa at Fendi Retreats creates a serene and refined atmosphere with natural materials, clean lines, and touches of brilliant color. The spa offers an impressive selection of treatments from around the world including a variety of massages, reflexology, facials, full body peelings and purifying algae baths. Guests can choose from a range of classic and Asian face and body

treatments including shiatsu, Thai massages, reiki and aromatherapy. There is also a swimming pool that is partly indoors and partly outdoors, a sauna, steam room, a hair salon, a solarium, an exercise gym, a Pilates studio, and a deliciously relaxing warm stone area. The star of The Spa at Fendi Retreats is the unique Hamman experience, a sensory odyssey that lasts two hours and travels through seven rooms. Beginning with a soothing footbath, it continues with a steam bath, infinity room, a cleansing soap and body massage, a floating pool, relaxation pool and finally a hydrating warm oil massage.

A unique feature of Fendi Retreats will be their extensive concierge service and policy of supplying every room and chalet with a personal butler. The hotel’s concierge service helps potential guests throughout the entire booking process, acting as an in-house travel agent. They take care of flight arrangements, ground transportation, and any bookings for activities while staying with the hotel. Upon arrival, all guest needs will be met by personal butlers who take care of personal requests such as room amenities, dining and spa arrangements, childcare, and generally facilitating any services requested. These services ensure that each guest receives a complete and personalized experience while staying at Fendi Retreats.

Additional services rendered will be a five-star dining

facility that runs twenty-four hours a day with the options of dining in the dining room, in your room, or meals packed for excursions. Trained staff will clean the rooms daily and offer full laundry and dry cleaning services to all guests. Also, a trained ski technician is available to outfit all level of skiers at the hotel’s pro-shop and guests are encouraged to ski their equipment in the locker room where it can be valeted at their discretion.

Price This high season for St. Moritz is from December to April when the Alpine conditions are cold, often sub-zero temperatures, and the skiing conditions are pristine. The climate begins to warm in March and as the temperature climb hotel bookings decline. Fendi Retreat’s pricing strategy was based on four competitors pricing and took Fendi Private Suites pricing strategy into consideration. The average competitors price range per person for a 7-night stay during low season was $2,754 and $5,191 during high season (based on average rates for

standard rooms). Fendi Private Suites price range is $770$1,900 per night depending on room selection.

Room’s housed in Fendi Retreat’s main building will range from $700- $1,100 per night and the exterior VIP chalets will range from $3,000- $6,000 per night.

There are a number of factors which will influence the price; including exchange rate fluctuations, standard of accommodation, the season, and requests for accommodation personalization.

Place St. Moritz, Switzerland is a legendary lakeside town with an often described ‘Champagne Climate’ because of its luxury offerings and comprehensive choice of winter sports. No other ski resort in the world enjoys such sparkle and glamour, international events or has such a profusion of hotels, designer boutiques or fine dining opportunities. All of the top hotel’s also host exquisite restaurants, where dress code must be adhered to. The area has a dry climate but the altitude ensures good snowfall. St. Mortiz has invested heavily in good lifts with fast speed chairs across the entire mountain to ensure no time is wasted on the slopes. It is the ideal choice for intermediates, cross-country skiers and non-skiers along with ski-to-lunch devotees. Additional activities include the Cresta Run, polo on the snow, and cricket on the ice.

St Moritz hosts a number of festivals and prestigious events throughout the winter season. These include the Gourmet Festival when you can expect culinary delights showcased by award-winning executive Chefs and two events that take place on the frozen surface of Lake St Moritz: the St Moritz Polo World Cup on Snow and the White Turf Horse Races where jockeys and horses test their skills and courage, as they race at dizzying speeds.

St. Moritz is ideal for Fendi Retreats because it is a location that has long attracted the rich and famous with its blend of luxury boutique hotels, spas, top-notch

mountain restaurants and fabulous, high-altitude skiing.

St Moritz brands itself ‘the top of the world’ which is an image Fendi Retreats would like to aligned itself with.

The setting will ensure that while guests are skiing, they won’t be able to resist stopping and staring out at the view, such is the majesty of the scenery.

Promotion Event Marketing From the primary research gathered, luxury vacation and The emphasis of this marketing plan will be devoted to the Fendi Retreat’s event marketing initiative. The goal of wellness retreat participants are searching for relaxation and a reprieve from their stressful lives as well as sharing this marketing strategy is to: new experiences with their families and loved ones.

Consumer’s state that the atmosphere and amenities are - Reach target luxury and wellness consumers and the foundation for these restorative luxury experience. introduce them to this new offering Consumer reports also indicate an increased need for branded experiences and experiential travel.

- Generate buzz throughout the pre-launch event - Have the hotel fully booked throughout the entirety of the event and a full rotation of guests through the spa - Use LVMH channels to increase exposure and anticipation Through event marketing, Fendi Retreats will be able to directly reach their desired consumers and connect with current Fendi followers. When generating buzz about Fendi’s new mountain and wellness retreat it is important to capitalize on the brands existing loyal consumers.

Handwritten, personalized invitations will be sent out to Fendi’s top clients for the pre-launch event in an effort to unify the Fendi fashion brand and Fendi Retreat’s customer base. Additionally, the marketing events will be able to utilize LVMH and the company’s broad clientele, as well as their existing public relations teams.

Pre-launch Event Although a small Alpine village, St. Moritz offers dynamic culture, happenings and heritage. It remains one of Europe’s top winter destination hotspots for the international jet set society. New Year’s Eve and luxury parties are synonymous in the event industry. A black tie New Year’s Eve party will be held at Fendi Retreats as the hotels soft opening. Fendi VIP persons will be invited by hand invitation to spend a week in the luxurious Swiss Alps socializing and revitalizing for the new year.

These VIP’s will gain insider knowledge and be the first to experience this new Fendi product offering. They are influencers, so their approval and inclusion is imperative for Fendi Retreat’s success.

There will be an emphasis on the services and amenities Fendi Retreats will offer year around. Hors d’oeuvres and delightful culinary offerings will be presented to introduce the house chef and his specialized menu. On New Year’s Eve the ballroom will be decorated in refined glamour for an evening of champagne and celebration.

Throughout the week the spa will be offering a full menu of services to ensure guests are relaxed and indulgently pampered. The intent of this pre-launch event is to introduce Fendi Retreats, generate buzz, and encourage bookings for Fendi Retreats grand introduction during the February event season.

Pre-launch Event Invites

Launch Event Although the hotel and spa will be operating between the time of the New Year’s Eve Party and this official launch event, the grand opening of Fendi Retreats will be during The White Turf St. Moritz. Held on three consecutive Sunday in February, the annual White Turf St. Moritz takes place on the frozen Lake of St. Moritz.

This is a unique historic event in the Swiss Alps centered around horse-racing, gourmet catering, concerts and inspiring art exhibitions. These horse races started in 1907 and are one of the most visited events in St. Moritz by international society. Among the luxurious sponsors are Credit Suisse, BMW and Longines who take their top clients to the mountains to see the best side of St. Moritz.

Fendi Retreat’s grand opening is centered around this event for many reasons. White Turf is popular with an international money crowd, and in the extreme cold dense fur coats are standard wear. Fendi Retreats will serve as accommodations to the top echelon attending the events as well as a center point for post-race entertainment. Mirroring Fendi Private Suites services, for this event only, one of Fendi’s in-house fur atelier will be posted at Fendi Retreats to service high net worth individuals seeking new fur coats and accessories for White Turf. This exclusive service will draw in attendees not staying at the hotel and give them a chance to experience the property and Fendi’s fashion offerings.

The spa at Fendi Retreat’s will also be heavily promoted during the event as a remedy for cold, exhausting days spent at the race track.

The events attract over 30,000 spectators on each day it’s held, creating a concentrated market of high net worth individuals not usually present at St. Moritz year around (Forbes). White Turf will expose a large, wealthy international crowd to Fendi Retreats and its’ offerings.

After the event attendee’s will return to their home countries and spread positive appraisal of Fendi Retreats, garnering more attention and exposure.

Launch Event Invitations

Social Media The Fendi brand is currently active across all social media platforms with public profiles accessible to everyone. They have a loyal following of consumers who use social for inspiration and a way to connect with the brand. Their mass following totals 420,000 on Twitter, 2,300,000 on Facebook, 6,600,600 on Instagram, and 26,028 on Pinterest. All of their social media pages’ direct followers to the company’s official website. The Fendi social media pages are filled with relevant information about new products, campaigns, promotions and celebrity endorsers.

Fendi Retreat’s two main target demographics, high net worth individuals and millennials, are both categorized as digital consumers. It is stated that 84% of high net worth individuals feel that digital marketing is particularly useful in brand awareness (Wealth-X).

Additionally, when looking at recent statistics, we see that 90% of Millennials are using smartphones, 93% are accessing the internet, and 53% own tablets. Couple these facts with a prediction by Statista that by 2030, the Millennial generation will have 78 million people, and it’s clear that millennials are a very potent consumer power using social media.

The Fendi Retreat’s social media platforms will be

created with the purpose of providing a channel through which consumers can actively engage with the brand.

The ability to constantly update content and create a special voice for the brand will increase likeability.

Guests will be encouraged to tag or upload content from their own personal experiences with Fendi Retreats and the brand will use social media as a form of promotion.

The Fendi Retreats social media channels serve as means to: - Represent the hotel on a global level - Provide unique, experience and offering driven content of hotel happenings - Serve as a platform for personal interactions between the club and consumers, as well as consumers and consumers - Create a real-time, visual, and memorable promotion channel - Direct consumers to the Fendi Retreats website and ultimately the hotel

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Facebook Fendi Retreat’s Facebook page will be connected to both the parent brand Fendi and LVMH’s Facebook page. Fendi Retreat’s will post at a modern rate about happenings at the club in order to generate buzz and elicit responses. This platform will be heavily text based and informative. The Facebook page will be launched prior to the hotels opening to disperse information about the pre-launch and launch events. Once opened, the hotel will use the Facebook Live feature so showcase important events and give an insiders glimpse into the hotel happenings. As privacy is a key feature of the retreat, specific content of guests or private events will never be displayed on the hotels social media. It will mainly serve as a platform for viewers to see photographs of the hotel and its’ offerings.

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Instagram The Instagram platform curates a more refined and personal feel than other social media channels. This platform is heavily focused on photography and videography. Fendi Retreat’s will use this platform to showcase the hotel’s unique design elements, enticing spa offerings, and culinary delights through professional photography. Its main purpose will be to display product and lifestyle content.

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Implementation

Summary of Benefits

Implementation of all social media accounts will be executed by Fendi’s current social media and marketing departments. It should be conducted immediately to build up brand awareness and Fendi’s new business segment as well as begin the customer engagement.

- Provide a unique experience for customers - Encourage engagement and interaction with Fendi Retreats - Increase brand awareness and web presence - Get information out quickly

Website LVMH has a main website that is home to all of their brands which describes each brand and their origin story. Each of LVMH’s brands also have an individual website. Fendi has a main website for the fashion products and a separate website for their hospitality offering Fendi Private Suites. Fendi Retreats will be connected to the main Fendi and LVMH websites but operate through its’ own individual page.

The Fendi Retreat’s website will have a refined and luxurious feel that invites guests in to explore all their offerings. The clean homepage aesthetic was deliberately chosen to mirror how Fendi currently presents themselves online. These similarities will help the viewers connect Fendi Retreat’s with its parent brand’s values and aesthetic. The webpage will include interactive elements such as room previews, spa videos, and the ability to chat with a dedicated concierge.

The Fendi Retreats website will be the main source for any information guests, or potential guests, seek.

Through dedicated web portals users will also be able to book accommodations, reserve special services, and send personal requests to their room butler both prior and during their stay. These web options are available as a convenience for guests and are not the sole channel through which they can request these services.

Additionally, through the website members will also have access to Fendi Retreats specialized retail store.

Here visitors will be able to purchase special products such as linens, toiletries, and cosmetics that are used at Fendi Retreats. The website will also have a dedicated page for special events, the resort calender, dress code requirements and other relevant information. The website will also have a language option to cater to our international guests and will be optimized for both mobile and desktop viewing.

Implementation

Summary of Benefits

The website will be implemented three months prior to the hotel’s launching to ensure consumers have access to booking and relevant information. As consumer’s hear and read about Fendi Retreats upcoming opening they will want details and specifics. This website launch schedule is to ensure that word has spread, bookings have been made, and buzz generated by the time the hotel opens.

The benefit of having a comprehensive website for consumers is the ability for the website to act as the main of hub information of what Fendi Retreats has to offer and how the hotel operates.

- Increased visibility for all consumers - Further integrate the online and in-hotel experience - Make online purchasing a way to generate revenue and keep guests in contact with the hotel post vacation - Allow members to access information pertaining to their bookings and activities

Advertising

Implementation

Fendi Retreat’s target demographic of high net worth individuals value traditional marketing techniques such as newspapers, magazines and word-of-mouth (Forbes).

In order to meet these consumption preference, Fendi Retreat’s will advertise through these channels. The choice of magazines and publications is very important because the majority of this consumption occurs during consumer’s leisure time. The top magazines geared towards luxury travel and luxury hotels include Elite Traveler, Forbes, Con de Nast Traveler and Luxury Travel. Fendi Retreat’s advertisements in these magazines will be included in both the hard-copy and online versions of the magazine. The decision to use the same advertisements with both mediums is to create consistency across online versions of the magazines, press releases and specific websites such as Luxury Daily.

To create and develop the print advertisements the Fendi Retreats will need to submit proposed advertisements for either a full-page advertisements or cover page to the desired publications. This will be done 6 months in advance to have the cover ads released 3 months before the opening. This is to promote the hotel, generate buzz, and provide information about the offerings and amenities found at the hotel. The full-page advertisements will be released simultaneously amongst all publications.

For maximum exposure, the hotel will be feature on the cover page of Con de Nast Traveler and include a featured article detailing the hotels launch. Pre-launch and post-launch, full page advertisements will run in selected magazines along with full-page advertisements on the Luxury Daily website.

Summary of Benefits Creating and running print advertisements for Fendi Retreats will help achieve the objectives of the marketing plan by: - Appealing to wellness tourists and skiers - Marketing to luxury consumers - Appealing to consumers who enjoy traveling - Improve the hotels competitive advantage by advertising its amenities and exclusivity

Operational Plan The operational plan will outline the schedule for the introduction of all of the aforementioned components of this strategic plan. It will also include the key performance indicators that will be used to gauge the success of this strategy and an overview of the integration of all channels.

Strategy Timeline This marketing plan will be introduced in phases.

The first phase will consist of the most pertinent elements of the strategy, the events and the planning of advertisements. Before Fendi Retreat’s pre-launch event, special invitations will be sent out to Fendi VIP persons for this event. These VIP’s be gain insider knowledge and be the first experience this new Fendi product offering.

They are influencers, so their approval and inclusion is imperative for Fendi Retreat’s success.

The second introductory phase will commence post pre-launch event, which includes the scheduling and planning of the launch event. During this scheduling and planning period team members will create and establish the Fendi Retreats website and social media presence. This integral step will allow consumers who have learned about the retreat to contact the hotel and book accommodations and services. During this phase,

team members will release agreed upon advertisements in both digital and print forms while adhering to a strict media schedule. This will give us time to reach our discerning consumers and allow for more to contact us.

The third phase will encompass the hotel’s hard opening and launch event. During this event team members will monitor objectives and make any necessary changes in order to meet any unmet milestones. A catalog of guests and visitors will be kept to build our customer records and strategizing and preparation for upcoming events will be underway. Post-launch, this final page on monitoring and cataloging will be ongoing.

Key Performance Indicators In order to determine the success of this strategic plan, the following key performance indicators (KPIs) have been identified: - Number of RSVP’s for launch events - Level of buzz and engagement generated through social media platforms - Number of room and spa booking’s leading up to and after the initial launch - Sales rate of products sold through the hotel - Number of visitors to the Fendi Retreats Website - Number of followers on social media accounts - Length of time spent on website and social media accounts These KPIs will be assessed at regular weekly and monthly interval to determine if any adjustments to the strategy need to be made in order to increase its success.

Strategy Implementation

In achieving the goals of this strategic marketing plan the Fendi Retreat consumer should have access to the brand through multiple platforms and channels, at all times, from any location. Complete personalization and service is a goal of not only the physical hotel but Fendi Retreats digital extremities. In order to ensure that the proposed strategy can achieve all goals Fendi Retreats must be able to provide for its’ luxury consumers with an experience that best suits them. Additionally, all components of this strategy must be aligned with the parent Fendi brand.

The proposed marketing strategy will enhance the consumer experience, cultivate a relationship with the brand, and provide a multitude of digital channels from which team members can gain valuable consumer data.

Enhancing and expanding the existing Fendi presence will enable Fendi Retreats to more intimately engage with consumers and more potently cleave them to the Fendi brand. Fendi Retreats will provide an outlet for experiential travel and branded experiences in the luxury sector that does not currently exist.

The list of the above products and amenities are completely unique to Fendi Retreats and were thoughtfully curated for an exceptional mountain retreat and wellness experience. Our consumers value exceptional customer service and unique amenities that are exclusive to Fendi Retreats and its’ Swiss Alps location. The selected hotel features, amenities and services have been specifically chosen to increase Fendi Retreats competitive advantage amongst the multitude Alpine hotels and spas. Fendi Retreat’s will incarnate everything Fendi stands for: luxury, decadence, elegance and craftsmanship.

The expectations of this strategic marketing plan are from both a financial and brand building perspectives.

Fendi Retreats aims to create a new profit point for Fendi by capitalizing on the growing millennial segment’s desire for experiential travel and their increased discretionary income. It will create a new customer experience for Fendi consumers, wellness tourists and luxury vacationers as well as attract new demographic markets to the brand. It will enhance customer loyalty and Fendi’s desirability by creating an intimate Pre-launch, launch and post launch events will be experience not previously offered by Fendi. Most handed by Fendi’s current event producers and team importantly, Fendi Retreats will stay aligned with the members dedicated to Fendi Retreat’s operations. The parent brands core values and embody Fendi’s reputation in hotel events, spa, retail and guest services will be handled by the highly trained and dedicated staff located of high-quality, exclusive, craftsmanship oriented designs and experiences throughout the entire process. at the hotel.

Strategy Budget Below is the projected budget and strategy budget for Fendi Retreats. The majority of Fendi Retreats income will come from accommodation sales, followed by spa, retail and service revenue. The strategy budget allocated the majority of funds to events and advertising, as these are Fendi Retreats most important points of advertisement.

The marketing strategy is predicted to consume 21% of year one projected sales revenue. Occupancy rates were taken from a Forbes report stating that the accepted average occupancy rate for the elite luxury sector was 76% in 2016. Fendi Retreats occupancy rate was projected Strategy Component Events Pre-Launch Launch Total Events Website Shoppable Catalog Live Chat Capability Total Website Advertisement Print Magazine Online Advertisements Total Advertisement Social Media Facebook Instagram Total Social Media Total Budget

Totals

Sep-17

$ 450,000.00 $ 750,000.00 $ 1,200,000.00

Oct-17

Nov-17

at slightly higher than the reported average due to the minimal number of rooms and the exclusion of a defined off-season. Additionally, it is reported that 64% of hotel spa revenue stems from guests staying at the accommodation property. The steady influx and level of discretionary income of Fendi Resort guests was taken into consideration when projecting spa sales numbers.

A Spa Trends survey reported that 5.6% of hotel revenue derived from spa sales for luxury hotels. This information was taken into consideration when determining total year spa sales.

Marketing Budget Dec-17 Jan-18

Feb-18

Mar-18

Apr-18

May-18

Jun-18

Jul-18

Aug-18

$ 100,000.00 $ 100,000.00 $ 250,000.00 $ 300,000.00 $ 450,000.00

$ 55,000.00 $ 55,000.00 $ 25,000.00 $ 25,000.00 $ 80,000.00 $ 665,000.00 $ 50,000.00 $ 75,000.00 $ 100,000.00 $ 100,000.00 $ 125,000.00 $ 75,000.00 $ 50,000.00 $ 25,000.00 $ 15,000.00 $ 10,000.00 $ 15,000.00 $ 25,000.00 $ 315,000.00 $ 25,000.00 $ 30,000.00 $ 35,000.00 $ 45,000.00 $ 65,000.00 $ 50,000.00 $ 20,000.00 $ 15,000.00 $ 10,000.00 $ 5,000.00 $ 5,000.00 $ 10,000.00 $ 980,000.00 $ 42,500.00 $ 2,000.00 $ 2,000.00 $ 2,000.00 $ 6,000.00 $ 6,500.00 $ 8,000.00 $ 6,000.00 $ 2,000.00 $ 2,000.00 $ 2,000.00 $ 2,000.00 $ 2,000.00 $ 42,500.00 $ 2,000.00 $ 2,000.00 $ 2,000.00 $ 6,000.00 $ 6,500.00 $ 8,000.00 $ 6,000.00 $ 2,000.00 $ 2,000.00 $ 2,000.00 $ 2,000.00 $ 2,000.00 $ 85,000.00 $ 2,345,000.00

Percentage of Year One Forecasted Sales

21%

Conclusion

Based on a thorough analysis of macro and micro environmental factors and research pertaining to specific industries, markets, and consumer behaviors, this marketing strategy has been developed to establish a Fendi hospitality and wellness offering- Fendi Retreats.

To ensure that this marketing plan is successful and representative of the existing brand presence of Fendi it was critical to examine the company’s history, current position in the luxury sector on a global scale, and consumer perception. This helped develop the marketing plan by assessing the strengths, weaknesses, opportunities, and threats of a Fendi branded hotel. A combination of primary and secondary research was conducted and analyzed to guarantee the most accurate information was gathered.

Based on recommendations of incorporating event marketing, advertising, a web presence and social media the goals of this marketing plan will improve the brand from both a financial and brand building perspectives.

Fendi Retreats aims to create a new profit point for Fendi by capitalizing on the growing millennial segment’s desire for experiential travel and their increased discretionary income. It will create a new customer experience for Fendi consumers, wellness tourists and luxury vacationers as well as attract new demographic markets to the brand. It will enhance customer loyalty and Fendi’s desirability by creating an intimate experience not previously offered by Fendi. Most importantly, Fendi Retreats will stay aligned with the parent brands core values and embody Fendi’s reputation of high-quality, exclusive, craftsmanship oriented designs and experiences throughout the entire process.

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Appendix

Interview Transcripts/ Notes These interviews were conducted by phone between the participants and myself. Please find below an abridged transcript of our conversations.

Bryn Gallagher What is your position and background in the luxury ski industry?

• Reservations Sales Lead at Vail Resorts • Worked for 4 years • Interacts with customers and industry personnel What is the number one expectation from customers of luxury ski resorts in your experience?

• Number one is customer service • People really want end-to-end accommodation- not just a place to stay but a full experience.

• Want to be able to book a place to stay, get ski rentals, ski lessons etc. all in one place with one easy interaction What are the top 3 leisure activities that your guests partake in?

• Skiing, spa experiences, and downhill tubing • Variety of activities for a variety of ages and preferences is important • Popularity of the leisure activities determined by proximity to the resort/ ease of access How frequently have you participated in wellness tourism or ski/ mountain vacations?

• Because I live close to a lot of mountains and work in the resort I don’t vacation here too often • Typically stay with friends because they live around popular vacation areas here in Colorado • Went on several ski vacations with family growing up in Western U.S. which spawned her interest in the industry and skiing What would your ideal luxury mountain retreat consist of?

• I would love to stay somewhere ski in, ski out with a private hot tub. This is highly requested from our visitors as well.

• Spa service is a priority and must be able to in the building or ideally room service! Relaxing is an important part of my vacations What are three deciding factors that set your resort apart from the others in the Colorado area?

• Vail Resorts owns the most resorts in Colorado and take pride in sharing a luxury experience with the best skiing in town • Vail village is also ideal for people who would prefer to shop, relax, or patriciate in activities other than skiing • Provides something for everyone What are 3 services, products, or qualities that mountain vacationers value?

• Ski gear rental and fitting- people want a quick experience with people who know the gear and what they are talking about • Full vacation experience- people seek out value added services and other activities aside from skiing. They want great dining, shopping, etc.

along with the typical outdoor activities.

• Ease of access- lastly, people don’t want to deal with driving on their mountain vacations. They want to stay somewhere close enough to walk to all the destinations. Again, ski in-ski out is key!

From what you’ve gathered about Fendi Retreats, would you be interested in visiting for a vacation or wellness retreat?

• Would not envision herself going because of the price range • Said she could see it being successful from the popularity and demand for small boutique hotels in Colorado and the growing wellness tourism industry.

Roy Mashburn What type of lifestyle do you associate with fashion house Fendi?

• Owns some of their apparel but not super into fashion • Off the top of his head- traditional, luxurious, and Italian lifestyle!

Why do you partake in vacations or wellness tourism?

• Seeking a break from reality and regular routine. Needs ‘me’ time away from technology and the stresses of family life • Realign, revitalize What are your top 3 leisure activities do you enjoy and why?

• Has always been a huge runner but has recently been unable to due to a back injury a few years ago. His injury corresponded with when he started participating in wellness tourism. Not running increased his stress level.

• Vacationing is his leisure activity • Golf Your ideal mountain retreat destination would be where and why?

• Prefers tropical or warm climates but use to visit Aspen often • Enjoyed Aspen because of the luxury lifestyle the town afforded. Fine dining, shopping (for his daughters and wife), and the overall luxury feeling Your ideal wellness vacation destination would be where and why?

• Attended multiple relaxation and rehabilitation centers in Southern California, specifically Malibu. Likes being domestic because of his extended stays there and ability to ship his car out to the facilities.

• Annually participates in the Duke Executive Health program in North Carolina What expectations and amenities do you associate with luxury accommodations?

• Privacy is the most important factor. Prefers small, boutique accommodations where there are only a few residents.

• Personalization- likes to bring his own car and furnish his dwellings. Stays for a minimum of a month at a time so being comfortable is super

important.

• Likes going to places like cater to people of the same standing as him, who he can relate to and spend time with. The demographic of these facilities is usually rich, retired men like himself who are looking for a reprieve from their everyday routine.

How frequently have you participated in wellness tourism or a ski/mountain vacations?

• Went on skiing vacation when he was younger with friends and has taken his family before. Prefers warmer vacation destinations.

• Spends around 3 months out of the year at wellness retreats usually but it varies depending on circumstances What would your ideal luxury mountain retreat consist of?

• Does not favor the cold but he would imagine it would be in a decadent cabin with private chef, butler, a bar, and especially a hot tub. Would be relaxing with spa offerings- can’t ski due to back injury.

What are the top 3 luxury vacation /wellness retreats that you have visited?

• His favorites are the facilities he visited in Malibu (declined to name them) • His favorite luxury vacations he’s taken have been when chartering a yacht in the Bahamas with a cook, captain and mates.

What are 3 deciding factors when choosing a vacation destination?

• The amenities such as spa and services rendered • The room, or hotel, design- has to be comfortable and align with his taste • Ease of access- prefers non-stop flights, close proximity to the airport or easy to reach by car. The minimal travel time and effort the better.

What services or amenities do you see an opportunity for improvement with concerning accommodations or wellness (based on past experiences)?

• Streamlined booking process- from air travel, ground transportation, to room and service bookings.

• Personal point of contact through the hotel. Always nice to have an attentive concierge but they can be overwhelmed when dealing with lots of guests- nice when the hotel offers one point of contact (i.e. personal butler) to handle all your needs What is the average length of your vacation?

• Varies depending on if he’s with his family, solo, or the destination. Family vacations are usually a week long. Wellness retreats can extend from two weeks to two months.

From what you’ve gathered about Fendi Retreats, would you be interested in visiting for a vacation or wellness retreat?

• Not persuaded so much by the Fendi brand associated but thinks the concept sounds unique and like the boutique wellness centers he likes to visit.

• Because of the location (Swiss Alps) he would envision his visiting being short- around a week- because it is far from his family and children.

Would like to go alone for the wellness, relaxation, and revitalization aspect.

Shelton Moynahan What is your position and background in the luxury travel industry?

• Worked for years as a travel agent and started his own travel agency 6 years ago that specializes in group travel, corporate travel, and specialized travel • History in event planning What is the number one expectation from customers using your services to book luxury vacations?

• Quality service- they want the best service from Point A to Point Z and for the entire process to be easy and streamlined. We pride ourselves on providing a completely stress free experience from beginning to end.

What are the top 3 requests from guests when booking?

• Want their ground transportation taken care of ahead of time- not just to and from the hotel but for the trip in its entirety if they’ll be moving around • Booking services- they want their tours, spa appointments, and museum tickets bought and paid for before arriving • Recommendations of what to do- they want the ‘local’ experience and ‘insider’ advice on all the hot places to visit and things to do beyond internet recommendations What services or amenities do you see an opportunity for improvement with concerning accommodations or wellness (based on past experiences)?

• There’s an increasing demand from travelers who want to experience something new and trendy that’s local and authentic.

• Growing demand for villa’s or Air bnb and rental by owner type accommodations- not just for people trying to save money but even for high class clients who want the bragging rights and experience.

How frequently have you participated in wellness tourism or ski/ mountain vacations?

• Never participated in wellness tourism but is an avid skier and goes out west (western united states) multiple times a year What would your ideal luxury mountain retreat consist of?

• Exotic location, VIP service, beautiful scenery and accommodations • Mix of activities such as skiing, drinking’s, live music, and luxurious spa treatments • Fine dining What are three deciding factors for guests when booking their accommodations through you?

• Price, proximity to the airport/ ease of access, and amenities What are 3 services, products, or qualities that vacationers value?

• Personal service- by using my agency they have a point of contact throughout the whole process. We communicate before, during, and after the vacation commences. Vacationers like having a point of contact especially if they’re in a foreign country whom they can contact with any questions or concerns.

• They want the biggest bang for their buck- room and flight upgrades, free services, and package deals are huge incentives when booking • The destination- luxury travelers usually like going to well-known destinations that have a reputation for being sophisticated and luxurious.

They want to stay in the most popular hotel and do the biggest attractions for bragging rights.

From what you’ve gathered about Fendi Retreats, would you be interested in visiting for a vacation or wellness retreat?

• It sounds like a very niche concept because of Fendi’s status as a luxury brand. The coupling of wellness and a small boutique hotel sound like they would appeal to the uber rich looking for a new experience. Personally out of his price range.

Courtney Muller What is your position and background in the luxury travel industry?

• Has extensively traveled with her family, friends, and through her university • Works in inside sales as a Villa Specialist with Luxury Retreats- acts as the main point of contact for guests What is the number one expectation from luxury vacationers in your experience?

• Infinite service- they expect all their needs to be taken care of in a timely manner throughout the entire process What are the top 3 leisure activities that your guests partake in?

• They have properties all over the world so the activities vary greatly depending on the geography.

• Tours, spas, and shopping are all popular topics when discussing locations How frequently have you participated in wellness tourism or ski/ mountain vacations?

• Canadian so she has been an avid skier her whole life.

• Has never participated in wellness tourism but would be interested What would your ideal luxury mountain retreat consist of?

• Plush décor, real fires both indoors and outdoors, Jacuzzi, breathtaking views, and lots of activities that are close to the house.

What are three deciding factors that set Luxury Retreats properties apart from their competitors?

• Extensive portfolio of luxury properties, the fact that all their properties are tested beforehand and client approved, and their level of service and willingness to personalize the property to the guests needs.

By what standards or constructs do you classify your properties as luxury?

• The architectural design and integrity of the property are very important- it must look luxurious and most importantly of all feel luxurious. We have a lot of older properties listed but they are all well maintained and have an elegant essence.

• Location- even if the property is new and nice it must be in a good part of town. Our guest not only want their home to feel luxurious but their surroundings.

From what you’ve gathered about Fendi Retreats, would you be interested in visiting for a vacation or wellness retreat?

• Yes, sounds like a great concept and definitely targets high net worth individuals looking for a new experience. The idea of a small, cozy boutique hotel tucked away in the Swiss Alps in very enticing and elicits a vivid picture in my mind.

Mr. & Mrs. Coach Muller What type of lifestyle do you associate with fashion house Fendi?

• Luxurious and refined Why do you partake in vacations or wellness tourism?

• Very hectic and intense work schedule. Vacations allow for relaxation and time to reconnect with family.

What are your top 3 leisure activities do you enjoy and why?

• Obviously hockey but also going to our lake house and enjoying nature (Coach), shopping (Mrs. Muller), and spa days with my four daughters (Mrs. Muller) Your ideal mountain retreat destination would be where and why?

• Alberta has wonderful slopes and hotels and is close to home Your ideal wellness vacation destination would be where and why?

• Since the majority of our life is either spent in the cold or centered around winter sports our ideal wellness vacation would be somewhere tropical. We love Europe, especially Italy, but when I think of relaxation I think of sandy beaches and palm trees.

What expectations and amenities do you associate with luxury accommodations?

• Privacy is very important to use. We are constantly in the spotlight and when we vacation we want alone time and to be able to focus on each other.

• Full service- a great concierge can really make a vacation How frequently have you participated in wellness tourism or a ski/mountain vacations?

• We go on ‘mountain’ vacations throughout the year, whether to visit friends, family, or just for the weekend.

• We’ve never participated in wellness tourism but we use our vacations as time to recuperate and participate in spa activities often when vacationing • Our friend owns the company Luxury Retreats so we get to go test out properties that are being considered for their portfolio.

On what criteria do you judge these properties that are being considered for Luxury Retreats?

• Appearance is big- it has to look luxurious on the inside and preferably the outside. Some locations we visited, especially in Europe, are old

looking on the outside but when you walk through the front door you find a hidden gem!

• The features in the house such as windows, furnishing, and bathrooms especially • The neighborhood or location- has to be safe and intriguing From what you’ve gathered about Fendi Retreats, would you be interested in visiting for a vacation or wellness retreat?

• Yes! Our daughters are huge fashionistas so they would really be excited about a Fendi branded hotel. We also love the snow and all snow activities so the Swiss Alps is ideal. We’ve also never been to the Swiss Alps so that would be a unique experience in itself • It’s also great that they will have a spa and activities so it is appealing to everyone.