INTODUCTION TO MARKETING
Based on the information provided in the case study,create an integrated marketing communication (IMC) for NOBU Hotels.Please include at least 4 promotional mix tools and describe thepromotion/activity with sufficient details for each.
Traveling in Nobu Style: Converting Restaurant Patronsto Hotel Guests
The name âNobuâ is synonymous with an exceptional Japanesedining experience, perfected by chef Nobu Matsuhisa over a morethan 30-year career. Matsuhisa, together with actor Robert De Niroand restaurateur Drew Nieporent, opened the first Nobu restaurantin 1994 and to date, there are now 38 Nobu restaurantsworldwide.
But if you talk to Trevor Horwell, the CEO of Nobu Hospitality,Nobu represents much more than just a restaurant experience. Itâs atrue lifestyle brand that also encompasses a relatively small, butgrowing portfolio of luxury hotels, too â eight of which are opennow, and eight more are in the pipeline.
Horwellâs primary focus as CEO is to continue to grow the NobuHotels brand and as he opens up dinersâ eyes to the fact thatcannot only eat at a Nobu but stay at one, too, he hasnât forgottenthe brandâs origins in the process.
âWe donât normally do a hotel unless we think that a NobuRestaurant can do well in that location,â said Horwell. âThatâsvery important because what we want to do first and foremost is tomake sure there is a draw for locals, and that really comes down tothe Nobu Restaurant.â Horwell said the majority of his Nobu hotelrestaurant diners â 80 percent on average â are local residents,not hotel guests. âItâs not like a tourist restaurant. We like toattract the locals. We want that built-in customer.â
âWe are defined by the restaurant, in a way,â he said. âWe playto our strengths. If you look at the hotel business today, themajority of hotels are suffering because they donât lead with foodand beverage. donât have strong food-and-beverage concepts, and alot of hotels are losing money. Today, we play to our strengthsbecause that is one area that we do very, very well, and we bringin locals.â
The idea to launch Nobu Hotels, he said, came from the fact thatwhen Nobu Restaurants were located inside of a hotel, they âwerethe draw for the hotel and we were bringing in customers.â
âIf I only convert 5 percent of my customers in Nobu Restaurantto stay in our hotels, then at the end of the day, weâre fillingout hotels. Itâs not a tall order to do that, and you can do thatvery well and very quickly if you offer the right product.â
Nobu Hotels has the advantage of having built its brand over a24-year period with its restaurants first, followed by the firstNobu hotel that opened within Caesars Palace Las Vegas in 2013.
âThe first focus for us, really, is to expose the brand to ourrestaurant customers,â Horwell said. âWe touch all types of Nobucustomers. And we also provide instant identity. If you put âNobuHotelâ on a hotel, the word âNobuâ says something and it attracts acertain type of customer.â Horwell said that, for example, when thefirst Nobu opened, the hotel had âmore than one billion mediaimpressions.â
So, whatâs next for the brand, and how does Horwell plan to growNobu Hotels? He explained, âWeâre not driven by reservationssystems because weâre small. It isnât as if we need a hugereservations system to fill a 400-room hotel. Thatâs why a lot ofthese corporations do well, because they have the reservationsplatform to fill the big hotels.â Nobu Hotels, by comparison,average anywhere from 100 to 150 rooms generally.
âThe reason why those young lifestyle brands have emerged isbecause theyâre like us. They are entrepreneurial, theyâre uniquebecause itâs a concept thatâs come from the heart, from whoever isthe original founder. But when itâs absorbed by a corporation, thewhole thing changes. At the end of the day, the specialness is lostbecause then the corporationâs running it, and then, I think youlose what your original concept was all about. I think thatâs thebiggest issue.â
Horwell also doesnât necessarily think of Nobu Hotels asoccupying a place in luxury hospitality, instead referring to thebrand as âspecial.â
âI look at our hotels not as luxury,â he said. âI look at themas special. I like us to be special, in each location weâre in.âLuxuryâ is a word thatâs used too much in terms of âeverything isluxury today.â For us, weâre âspecial.'â
âThatâs why Iâm saying, from a company perspective, weâre veryentrepreneurial.
Todayâs evolving luxury traveler is seeking âyouthfulnessâ nomatter what age they are, and they are âvery curious and veryadventurous. Because of that, itâs important for hospitalitybrands, Nobu included, to not just say theyâre unique but to reallyoffer unique experiences. He pointed to Nobu Ryokan Malibu inCalifornia as an example. The 16-room retreat overlooks the beachand is right by the ocean, and right next door to the NobuRestaurant in Malibu. It becomes a destination, and thatâssomething Nobu wants to offer.
Itâs also a different concept from what the other Nobu Hotelshave. While Nobu Hotels are places where thereâs an emphasis onbringing in the locals, the Ryokans are meant to be moreprivate.
âThe Ryokan is actually a place where people donât want tonecessarily be seen,â Horwell explained. âItâs a hideaway, aretreat. You can only book through a general manager and itâs aspecial place.â He added, âWe will do more Ryokans, definitely, inlocations that we think is right.â
A major focus for Nobu Hotels is to grow the company and thebrand with the right talent and partners, as well as make sure thatthe Nobu Hotels brand is reaching the right consumers.
âThe most important thing, from our perspective, is to build arelationship with our existing customers,â he said. âItâs about,first and foremost, on digital, working our databases. We like todo that through email, through a lot of channels. We just broughton a new head of digital. Capturing data is very, very importantnow, and thatâs something that is a main focus and her team.â
âI think the main thing for us is the customer relationshipmanagement (CRM) because you can do so much with it,â he said. âYoucan know your customer. Itâs one part of the business that we areheavily focused in in and we can extract a lot of information fromthat.â
In addition to beefing up its customer relationship managementsystem, Nobu is also testing out a loyalty partnership, of sorts.The Nobu London Shoreditch joined Design Hotels last year, givingthe property access to distribution on Design Hotelsâ site, as wellas a connection to the Starwood Preferred Guest loyalty program.Three Nobu hotels are also members of Leading Hotels of the World.âA lot of our customers arenât driven by points,â he said. âWhen Itravel, I donât go for points. I want to stay in a hotel where Ienjoy the staff, the food and beverage, the products â all of thatâ and I will pay a premium for it.â
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Appendix A
Additional Information about NOBU
Nobu Hotels
"A Place to go and be seen"
By âwrappingâ the concept of a luxurious boutique hotel aroundenergized public spaces, Nobu Hotels creates powerful stages forshared experiences of excitement and escapism. Featuring the bestof everything with imaginative new restaurants, high- energy bars,relaxing rejuvenation, distinctive service, remarkable retail andan air of celebrity, Nobu Hotels will afford guests and privilegedowners the most exclusive entry into unparalleled experiences thatlay at the crossroads of innovation and imagination.
Source:
Excerpted from âNobu Hotels CEO on aRestaurant-First Approach to Hospitalityâ by D.Ting. Skift â March 22, 2018. +Expertsand image from Nobu restaurant and hotel website