Mike Hohnen

Coaching for personal growth, change and development

Marketing

Copenhagen Food Safari

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You must be joking!

At one time it was considered a bad joke that the best restaurant in the world – The Fat Duck at the time – was located in the UK, a country not exactly known for its culinary tradition. The joke is still the same, it has just moved geographically.

The basic culinary tradition in Denmark was never much better than what you would find in the UK. It is a meat and potatoes kitchen – possibly with the one exception that did gain international notoriety, the Danish open-face sandwich.

Now Denmark does not only host the world’s best restaurant, Noma and the world’s best chef, Rasmus Kofoed (Bocuse d’Or 2011) – it also has more Michelin stars (11) than any of the other Scandinavian capitals, with Stockholm is second with (8), Oslo (6) and Helsinki (5).

But Noma and the other high profile establishments are just the top of the iceberg. Copenhagen now also offers a multitude of creative and inspiring food service venues in every imaginable category. This has clearly also caught the attention of the international foodie establishment. The New York Times wrote: Eating in Copenhagen? Lucky you!. And the Guardian wrote “Copenhagen is truly in the foodie spotlight”

So how does a small country that has a population that is smaller than Hamburg’s and a ‘village’ of a capital that would fit within two Parisian arrondissements, pull that off?

For more on that as well as my very personal guide to the Copenhagen Restaurant Scene please download the file Copenhagen Food Safari

You will find it in two versions

Copenhagen Food Safari – Pdf version

Copenhagnen Food Safari – Epub Version
( works great on iPad or iPhone if you want something mobile)

The article was first published in Food Service Europe in a shorter version – you will find that version here

The Social Nature of Brands

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Great article in B+S

Some might attribute this trend — the increasing use of social engagement by marketers — to the rise of online social media: Facebook, Twitter, YouTube, fan sites, and social marketing websites (also known as private-label media) created by companies themselves. But the trend represents a more fundamental change in marketing practice, linked to insights from social psychology, behavioral economics, and neuroscience and brain research. Every form of interaction between companies and consumers — taking place online and offline, in stores and over mobile devices, in branded content and by word of mouth, and indeed through all direct consumer experience — is now understood to be shaped by the social nature of brands.

Read it all here : The Social Life of Brands

In my book Best! i also argue the point of the Ambassador effect and how it affects the Service industry – you can find the book here

Culture. The intangible competitive advantage

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Great article in Fast Company

Although cultivating a great culture demands a lot of emotional investment, leadership wisdom, and a genuine care for people, it is a financially low-cost investment with a high economic return. This is why great leaders pay attention to it. An authentic culture, at the very soul of a business, is something competitors cannot imitate. Like soul, culture is intangible. Yet given a little inspiration, this intangible commodity can be converted into untold wealth. Incredibly, the next big wave of growth will come from businesses whose leaders know how to convert low-cost intangibles like culture into high bottom-line value.

Dogs Dinner Strategy – is that you?

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Richard Rumelt is the author of Good Strategy/Bad Strategy–The Difference and Why It Matters

It is a real gem of a book

In the book, Rumelt identifies two kinds of objectives: ‘dog’s dinner objectives’; and ‘blue sky objectives’.

Dog’s dinner objectives

“A long list of “things to do”, often mislabeled as “strategies” or “objectives”, is not a strategy. It is just a list of things to do. Such lists usually grow out of planning meetings in which a wide variety of stakeholders make suggestions as to things they would like to see done. Rather than focus on a few important items, the group sweeps the whole day’s collection into a “strategic plan”. Then, in recognition that it is a dog’s dinner, the label “long term” is added so that none of them need be done today.“

Blue sky objectives

“The second form of bad strategic objectives is one that is “blue sky”. A good strategy defines the critical challenge. What is more, it builds a bridge between that challenge and action, between desire and immediate objectives that lie within grasp. Thus, the objectives a good strategy sets should stand a good chance of being accomplished, given existing resources and competence.…… By contrast, a blue-sky objective is usually a simple restatement of the desired state of affairs or of the challenge. It skips over the annoying fact that no one has a clue as to how to get there.

The purpose of a good strategy is to offer a potentially achievable way of surmounting a key challenge. If the leader’s strategic objectives are just as difficult to accomplish as the original challenge, there has been little value added by the strategy.”

So how does your strategy match up with either of these two kinds of ‘Bad Strategy”

So what is good strategy?

“A strategy is a way through a difficulty, an approach to overcoming an obstacle, a response to a challenge. If the challenge is not defined, it is difficult or impossible to assess the quality of the strategy. And if you cannot assess a strategy’s quality, you cannot reject a bad strategy or improve a good one.”

Simple hey !

Where to Play and How to Win…

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Do you have a clear strategy ?

I have lost count of how many hotels and conference centers I’ve encountered over the years who define their strategy as ”delivering great customer experiences” or being ”among the top 5 in their category or region”.

But that’s not a strategy. At best it’s a vision and and worst-case it’s just wishful thinking

Strategy is distinctly different from visions missions and goals. Strategy crystallizes the very hard choices that we all need to make. Strategy defines how we create value. Value emerges when we have the skills to produce something that costs us less to produce than somebody else is willing to pay for it. Period.

Value = ( Sales Price – Cots to produce/deliver)

At first, that sounds simple – but it quickly gets trickier, what I may be happy to pay € 100 for is probably quite different from what you are happy to pay €100 for. Value is deeply subjective, each of us computes it in our own way depending on the circumstances and the situation.

It therefore makes no sense to talk about creating value without at the same time answering the question value for whom?

Because if I try to be everything to everybody I risk ending up being nothing to anybody and there’s not much value in that.

Where to Play
Developing an effective strategy therefore boils down to defining target market segments and clearly understanding what it is they need. (But but when targeting certain segments we also need to understand that that means there are other segments that we are willing to forgo)

How to Win
The better we understand the specifics of a segment the better we can tailor our service delivery in such a way that we produce value for exactly that segment.

So the 3 hard questions we need to ask our selves are:
1. Who is the target customer?
2. What is the value proposition to that customer?
3. What are the essential capabilities needed to deliver that value proposition?

Obviously, if we are running a hospitality business that is open 365 days a year we will need to identify several target segments ( time of year, day of the week – day part etc). Remembering, that what differentiates segments is not the demographics but the situation.
I have very different needs when I’m traveling in connection with a weekend break, compared to when I am traveling to conduct a workshop – same fellow very different needs ( and price points).

So we need to break down our value propositions into situations.

In my book Best! . No need to be cheap if you are … I have a chapter on how to work on you value proposition using the value equation.

Also here is a great article from S+B on the same subject – and finally the best tool to visualize and brainstorm some more on this is the Business Model Canvas as explained in the video here.

Flash sales – good or bad idea?

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Together with spa/beauty, travel /travel tourism and restaurants are the top 3 categories both in the number of deals and amount of revenue generated by flash sales.

Discounting is clearly increasingly popular. Customers love it and more and more companies are piling in to catch a bit of the action. Nonetheless Groupon and LivingSocial are still by far the 2 largest players.

But is it good business in the hospitality sector?

I think that question is the most frequently debated subject amongst industry players wherever they gather at the moment.

On the surface there are 2 fronts.

Those that are doing it and therefore have all sorts of sophisticated arguments why they consider it good business. On the other side those that are not doing it because they consider it the worst form of business ever.

What until now has been really hard to evaluate is who is right and who is wrong.

But now the Centre for Hospitality Research at Cornell University has just released a study that tries to answer exactly that question and a few more – this most useful report can be downloaded here

Key findings are:

Generally participating hotels surveyed report moderate success.

The deals do bring in new business. But as to producing repeat business this is too much less extent the case than what hoteliers hope for when arguing for using these promotions.

“One factor often cited to justify offering a flash sale pro- motion, repeat business, did not seem to operate for these respondents.”

Hoteliers who are happiest with the outcome of their deals are also the ones who have managed the total cost of the deal most assertively.

Overall the conclusion seems to be that flash deals can work for you if you are very astute in negotiating the deal with the coupon provider and you find a way to either upsell to these customers when they are there or have a surefire way to convert them into repeat customers.

This is very neatly illustrated by the authors like this

“Evaluating your property on these two dimensions allows you to better frame the value proposition offered by flash deals. If you don’t expect to be able to convert customers from flash sales deals into returning guests, you must carefully manage the margins of any deal you develop and creatively identify opportunities for cross-selling and up-selling once guests are on property. When you expect high conversions from flash sales customers to returning guests, you could justify the deal as a marketing expense. You should carefully avoid structuring any flash sales that will land you in the lower left quadrant.”

Emerging Marketing Channels in Hospitality:
A Global Study of Internet-Enabled Flash Sales and Private Sales
by Gabriele Piccoli and Chekitan S. Dev – you will find it here

Question:
What are your experiences with Flash sales – are they working/not working for you?

Don’t wait for your ‘KODAK moment’

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The best advice from Seth Godin... ever in my opinion:

“The new thing is never as good as the old thing, at least right now.
Soon, the new thing will be better than the old thing will be. But if you wait until then, it’s going to be too late. Feel free to wax nostalgic about the old thing, but don’t fool yourself into believing it’s going to be here forever. It won’t.”

If you don’t understand this you will have a “KODAK – Moment” and wake up one morning and find that the new thing that was not nearly as good as your old thing has now stolen your business.