Enabled a hospitality giant increase overall revenue by analyzing market trend and competitor behavior
Case Studies:Mu Sigma
Published On: 08 October 2015
What We Did: Enabled a leading cruise company to take proactive, coordinated decisions to align their revenue management strategies with market trend and competitor behavior, thereby supporting their end goal of achieving the ROIC (Return on Invested Capital) target.
The Impact We Made: Business was able to smoothly coordinate with sister brands and make informed decisions around their revenue management strategies.
Summary - Marketing performance management constrained by silo-ed brand data
ABG (All brands group) of the organization is responsible for enabling executive leadership to actively drive marketing performance across the company’s sister brands to meet their revenue target. The team wanted to meet interim milestones enroute to achieve the target ROIC by 2018, and wanted to take proactive decisions to align their marketing strategies with the market trend and competitor behavior. Lack of consolidated view of various sister brands’ performance and the intelligence on competitors, limited ABG’s capacity to devise an efficient marketing strategy.
About The Client - Leading cruise line operator
The client is one of the leading British cruise companies and one of the largest cruise ship operator. It has a large fleet, which accounts for more than 15% of the worldwide market share. It is a pioneer in the concept of shorter, less expensive cruises.
The Challenge - Revenue loss due to cross-brand cannibalization
Owing to the spread and volatility of competitor behavior and market trend, the business was unable to gather insights to improve and optimize revenue management strategies. ABG wanted to achieve coordination amongst sister brands and ensure optimal pricing to attain double digit revenue growth.
The Approach - Aggregate, visualize, synthesize, and explore cross-brand impact
Mu Sigma enabled the client devise revenue management strategies based on market trend and competitor behavior:
Mu Sigma team first defined decision making levers for Senior executives who were stakeholders in decision making and came up with various questions to understand the business problems thoroughly and had them answered by the stakeholders.
The expectation was to develop a visually appealing dashboard to provide insights at the hierarchical level by mapping roles and responsibilities. So, if a manager was to look at the dashboard, the engine should give up the summary of the brand’s position at one glance, and also see opportunities to increase the price and revenue.
Based on the above directives, The Mu Sigma team built a navigation tree. Various tabs in the dashboard were then designed based on data mapping.
One consolidated report with the pricing and booking data of all brands provided visibility into pricing tactics of all players in the market
The dashboard provided both a top-down and bottom-up peek into the entire operations enabled stakeholders from different segments to consume the dashboard with ease.
The Outcome - Identification of incremental revenue opportunities
Incorporated algorithms in the dashboard were able to generate actionable insights and prioritize key opportunities. This exercise drove better co-ordination between sister brands, helped them make better decisions, as well as optimize and improve overall revenue.
Implementation of this project led to additional savings for business