Action: PACE analysed the strengths and weaknesses of the existing strategy, including the products and services on offer in comparison to the competition.
Insight: It turned out that that the distribution strategy wasn’t the most fundamental problem for the hotel chain. The real source of the problem was that the hotel’s brand and product was not sufficiently differentiated and appealing for customers to want to deal with them directly. Indirect competitors were running a more efficient ecommerce platform than the hotel. In addition, hotel pricing was the same or worse via owned channels than via indirect competitors.
The hotel chain was in need of a stronger customer proposition in order to drive direct sales.
Result: PACE recommended product and service developments that would differentiate direct and indirect channels, as well as improvements to the customer experience. PACE recommended increasing the depth and breadth of inventory, giving customers more choices and more opportunities to get what they want.
The company adopted and implemented PACE’s recommendations for product strategy, changing their marketing to amplify the customer benefits.