Case Analysis, The Eleganzia Group, by Shane Cisneros
What are some of the brand-oriented criteria you will use in making a decision?
The brand-oriented criteria that is important to The Eleganzia Group is external brand architecture, brand equity and brand perception.
Why are these the most important criteria in your discussion?
External brand architecture is reliant on the customer’s point of view, customers need to continue to understand the depth of value offered from Eleganzia’s tiers, while using social media to give an outside-in perspective. This will improve brand perception for the various experiences and will continue to provide brand equity since staying at an Eleganzia owned property will provide social currency.
Which brand architecture would you recommend? Be sure to include the positive and negative potential outcomes of your choice.A house of brands architecture would be my recommendation. Eleganzia’s hotels need to operate independently of one another, as to not tarnish the prestige of the lusso division (see below) or create channel conflict. A successful house of brands story is Marriott International, which owns the Ritz-Carlton and business-class Courtyard. Although owned by the same group, Ritz-Carlton customers have never been thought of as business-class since these hotels are run separately.
A positive outcome would be if an individual hotel has a misstep; the group can shield that property from media scrutiny. A negative aspect is that the customer may be overwhelmed by too many choices within the house of brands or upset that certain amenities/ experiences are not within that tier.
What brand role would you recommend for Eleganzia? For each of the resort brands?
Eleganzia’s brand pillars should be “Italianity,” quality service, innovation and uniqueness throughout all their properties but the group needs to educate new customers about their various hotels, services and experiences. Even the 1 % have been hit with economic turbulence in the 21st century, so now is the time to access new markets and new customers. The best way to do
this is by inviting respectable, elegant influencers (e.g.: Gwyneth Paltrow, Olivia Palermo) to stay on the properties gratis in exchange for social media coverage on their platforms (e.g.: scenic shots on Instagram, an essay for the travel section of Town & Country). This reportage coverage will ensure that customers understand the experience offered by the hotel group through the lens of a tasteful curator. In addition, this coverage will take Eleganzia’s tried-and- true WOM to an international social media scale.
The Eleganzia Group should take a cue from Marriott International organization and divide the hotels into three sub- groups:
Lusso
CALLA DEL FORTE • HOTEL LUSSO • THE EDEN • LA MADDALENA HOTEL & YACHT CLUB
Premio
LE DUNE •VILLA DEL PARCO • HOTEL COSTELLO • ROYAL PINETA • CASTEL MONASTERO
Selezionare
IL BORGO • LA PINETA • LE PALME • IL VILLAGGIO • CAPO MALFATANO
A corporate hierarchical system will give the company an internal brand architecture, thus being able to give individual hotels an appropriate promotional budget. The Eleganzia name does not need to be on all marketing vehicles, especially if that hotel can stand on their own two feet (e.g.: La Maddalena Hotel & Yacht Club), but if a hotel is weaker in brand name, it should be endorsed by the group (e.g.: “Castel Monastero by Eleganzia”), thus not dulling each hotel’s uniqueness.