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Prime Partnership
                              Opportunity for 3-stars hotels




   Final presentation of Opportunity Execution Project
Fundamental Problem
                    •   significant costs for hotel maintaining and developing
 HOTELS             •   weak brand awareness
                    •   high customer acquisition costs
                    •   no access to best practice sharing
                    •   high procurement prices


                            •   decentralized contract management
        CORPORATE           •   attractive volume pricing
        CUSTOMERS           •   unable to find reliable hotel chain in mid-price segment
                            •   approach varies for different hotels



                                   •   level of services doesn’t meet expectations
              CLIENTS              •   no loyalty programs
                                   •   too complicated booking
                                   •   poor service for high price


Venture Lab 2012                                                Prime Partnership Team
Product
    Our product is complex of services for development and management for 3-star
    hotel chain under the famous brand, in order to increase the popularity, income
      and keep complete economic and financial independence. In exchange for
                 partnership contributions and high quality standards.
    • reservation Web system
                                               • 24x7 call center;
    • cooperation with the largest
                                               • participation in exhibitions and
      GDSs;
                                                 fairs;
    • active marketing promotion;
                                               • exchange of experiences and
    • joint procurement;
                                                 best practices;
    • recruitment services;
                                               • business activities with corporate
    • training programs and staff
                                                 clients;
      development;
                                               • online booking through popular
    • auditing and consulting of
                                                 services;
      standards compliance;
                                               • intranet access to customer
    • implementation and
                                                 databases, standards, advertising
      optimization of business
                                                 and marketing materials, etc.
      processes;


Venture Lab 2012                                                   Prime Partnership Team
About our team
        Aleksandr Kirpichov                                                Sergey Shanin
        • Team Leader, executive in sales, 10+ years                       • PMP, project manager, 5 years
          experience in own and partners large Retail
          chain management and development
                                                                             experience in risk management, team
                                                                             building, stakeholders negotiations

        Borys Baturynets                                                   Karyna Kirpichova
        • LL.M., attorney-at-law. 10 years practice in                     • marketing manager, 10+ years
          corporate law and dispute resolution
                                                                             experience in marketing and
                                                                             distribution, brand development



                                                     Prime Partnership Team
                                                     • We met each other after the 1st phase of “Venture Lab” during the
                                                       search of appropriate teammates for main project.
                                                     • All of us participated several face-2-face meeting and carried on an
                                                       online negotiations with another active members of “Venture lab”
                                                       project. Finally when we understood that we have challenging idea
                                                       for main project and we could enjoy working with each other, “Prime
                                                       Partnership” team was created.
                                                     • Our team consists of four motivated and result-oriented teammates
                                                       with balanced skills set and ambitions to be in the TOP teams.



Venture Lab 2012                                                                            Prime Partnership Team
Business model


                         Value Propositions              Revenue Streams
 Customer
 Segments                • This is convenient and        • Royalty
                           successful brand for 3-star   • Partner’s
 • hoteliers or owners     hotels. Main features are       commissions
   of hotel business       dynamic growth, high level    • Advertisement
 • guests of the hotel     of service, advanced model    • Audit, consulting,
   chain                   of communication,               trainings services
 • Corporate customers     technology and hotel chain      fees
                           franchise.
                                                         • Value added services
                                                           to franchisees




Venture Lab 2012                                           Prime Partnership Team
Sales and Marketing Strategy

                                                             1. Promo at conferences,
                            1. Direct sales managers as      exhibitions, specialized forums for
              hoteliers     primary channel                  hoteliers
              or owners     2. Hospitality associations as   2. Promo at Internet (own and
               of hotel     an secondary channel             specialized websites, cross placing
               business                                      banners, social networks…)
                             1. corporate website >50% of
                             sales




                                                                                                   clients
                             2. Travel agencies and travel    1. Clients’ feedback management
                   guests    web sites (booking.com etc)      2. POSM at travel agencies,
                   of the    ~15% of sales                    3. Internet (own website, cross
                    hotel    3. Discount portals (Groupon     placing banners, social networks,
                   chain
                             etc) ~5% of sales                reviews from other tourists.
                             4. Other (regular and
                             occasional clients who
                             applied directly to the hotel   1.Direct mail, presentations,
              corporate                                      2. Promo through travel agencies,
                            1. Direct sales managers         3. Internet
              customers     2. Telesales                     4.Loyalty program for corporate
                                                                   customers staff




Venture Lab 2012                                                        Prime Partnership Team
Risks

                                                                                    loyalty erosion
              denial of service                          government restrictions

                                                   partner unreliabilitycompetition
                  employeeclimatic conditions
                            dishonesty demand decrease                        inflation
                            hackings
                                                   income concealment
standard violations
 Possible strategies to prevent or minimize high-priority risks:
 • Standard violations – periodic inspections to monitor compliance with the franchise standards, mystery
    shopping, staff trainings, etc.
 • Income concealment – legal actions.
 • Denial of service – risk should be transferred to the hosting company.
 • Partner unreliability – partnership programs, rebates.




Venture Lab 2012                                                                   Prime Partnership Team
Partners and Allies
       • Promotion agencies          • Suppliers of equipment,       • Hotels
       • Media                         expandable materials          • Educational institutions
       • Social networks             • Promotional gifts             • Tourism development
       • Web                           manufacturers                   government
       • Exhibitions                                                   departments
       • Design companies

                                                                      Knowledge
       Awareness                     Procurements
                                                                      base


                      • IT solution suppliers        • Travel agencies,
                      • Developing agencies            associations, operators
                      • Hosting companies            • Booking systems
                      • Call-centers
                      • E-Commerce providers



                      IT & Web                       Distribution



Venture Lab 2012                                                                 Prime Partnership Team
Funding

      Total 1st year   • Up to 150K USD
      investments

                       • 1/3 - own capital 50K USD
     OWN CAPITAL


     LOAN CAPITAL      •2/3 - venture capital 100K USD


                       • From 2nd financial year project starts to
        Followed         generate profit and don’t require additional
        financing        financing


Venture Lab 2012                                     Prime Partnership Team
Thank you for your attention and…
                        … look forward to Prime Partnership




     Final presentation of Opportunity Execution Project

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Prime partnership final presentation v2

  • 1. Prime Partnership Opportunity for 3-stars hotels Final presentation of Opportunity Execution Project
  • 2. Fundamental Problem • significant costs for hotel maintaining and developing HOTELS • weak brand awareness • high customer acquisition costs • no access to best practice sharing • high procurement prices • decentralized contract management CORPORATE • attractive volume pricing CUSTOMERS • unable to find reliable hotel chain in mid-price segment • approach varies for different hotels • level of services doesn’t meet expectations CLIENTS • no loyalty programs • too complicated booking • poor service for high price Venture Lab 2012 Prime Partnership Team
  • 3. Product Our product is complex of services for development and management for 3-star hotel chain under the famous brand, in order to increase the popularity, income and keep complete economic and financial independence. In exchange for partnership contributions and high quality standards. • reservation Web system • 24x7 call center; • cooperation with the largest • participation in exhibitions and GDSs; fairs; • active marketing promotion; • exchange of experiences and • joint procurement; best practices; • recruitment services; • business activities with corporate • training programs and staff clients; development; • online booking through popular • auditing and consulting of services; standards compliance; • intranet access to customer • implementation and databases, standards, advertising optimization of business and marketing materials, etc. processes; Venture Lab 2012 Prime Partnership Team
  • 4. About our team Aleksandr Kirpichov Sergey Shanin • Team Leader, executive in sales, 10+ years • PMP, project manager, 5 years experience in own and partners large Retail chain management and development experience in risk management, team building, stakeholders negotiations Borys Baturynets Karyna Kirpichova • LL.M., attorney-at-law. 10 years practice in • marketing manager, 10+ years corporate law and dispute resolution experience in marketing and distribution, brand development Prime Partnership Team • We met each other after the 1st phase of “Venture Lab” during the search of appropriate teammates for main project. • All of us participated several face-2-face meeting and carried on an online negotiations with another active members of “Venture lab” project. Finally when we understood that we have challenging idea for main project and we could enjoy working with each other, “Prime Partnership” team was created. • Our team consists of four motivated and result-oriented teammates with balanced skills set and ambitions to be in the TOP teams. Venture Lab 2012 Prime Partnership Team
  • 5. Business model Value Propositions Revenue Streams Customer Segments • This is convenient and • Royalty successful brand for 3-star • Partner’s • hoteliers or owners hotels. Main features are commissions of hotel business dynamic growth, high level • Advertisement • guests of the hotel of service, advanced model • Audit, consulting, chain of communication, trainings services • Corporate customers technology and hotel chain fees franchise. • Value added services to franchisees Venture Lab 2012 Prime Partnership Team
  • 6. Sales and Marketing Strategy 1. Promo at conferences, 1. Direct sales managers as exhibitions, specialized forums for hoteliers primary channel hoteliers or owners 2. Hospitality associations as 2. Promo at Internet (own and of hotel an secondary channel specialized websites, cross placing business banners, social networks…) 1. corporate website >50% of sales clients 2. Travel agencies and travel 1. Clients’ feedback management guests web sites (booking.com etc) 2. POSM at travel agencies, of the ~15% of sales 3. Internet (own website, cross hotel 3. Discount portals (Groupon placing banners, social networks, chain etc) ~5% of sales reviews from other tourists. 4. Other (regular and occasional clients who applied directly to the hotel 1.Direct mail, presentations, corporate 2. Promo through travel agencies, 1. Direct sales managers 3. Internet customers 2. Telesales 4.Loyalty program for corporate customers staff Venture Lab 2012 Prime Partnership Team
  • 7. Risks loyalty erosion denial of service government restrictions partner unreliabilitycompetition employeeclimatic conditions dishonesty demand decrease inflation hackings income concealment standard violations Possible strategies to prevent or minimize high-priority risks: • Standard violations – periodic inspections to monitor compliance with the franchise standards, mystery shopping, staff trainings, etc. • Income concealment – legal actions. • Denial of service – risk should be transferred to the hosting company. • Partner unreliability – partnership programs, rebates. Venture Lab 2012 Prime Partnership Team
  • 8. Partners and Allies • Promotion agencies • Suppliers of equipment, • Hotels • Media expandable materials • Educational institutions • Social networks • Promotional gifts • Tourism development • Web manufacturers government • Exhibitions departments • Design companies Knowledge Awareness Procurements base • IT solution suppliers • Travel agencies, • Developing agencies associations, operators • Hosting companies • Booking systems • Call-centers • E-Commerce providers IT & Web Distribution Venture Lab 2012 Prime Partnership Team
  • 9. Funding Total 1st year • Up to 150K USD investments • 1/3 - own capital 50K USD OWN CAPITAL LOAN CAPITAL •2/3 - venture capital 100K USD • From 2nd financial year project starts to Followed generate profit and don’t require additional financing financing Venture Lab 2012 Prime Partnership Team
  • 10. Thank you for your attention and… … look forward to Prime Partnership Final presentation of Opportunity Execution Project