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SONOS Speakers

Randy PangLars RemoleSandy Cheng

Yahaira Barbosa

Andy OlsonCassie Packer

Neil AliColby Bedard

Agenda

● SONOS○ Product Overview○ How it works○ Customers○ Competition

● Ritz-Carlton○ Overview○ Customers ○ Primary Research○ Current Setup○ Competition

http://www.luxurydaily.com/ritz-carlton-takes-social-responsiblity-program-one-step-further-with-national-partnership/2

● The Pitch○ Why We Match○ Product Recommendation○ Differentiation○ Offer/Benefits○ Goals

● Relationship Development○ First major account○ Sales Organizational Structure○ CRM Benefits○ Integration○ Continued Commitment

SONOS

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About SONOS

● Founded in 2002● Based out of Santa Barbara, CA● 16% market share (wireless speaker market)

○ 2nd highest in market just behind Bose (20%)● Manufactures wireless, Hi-Fi music systems● Offers speakers, home theaters, and components● Range from $199 for a speaker to $699 for a sub or playbar

http://www.droid-life.com/2011/07/20/sonos-updates-android-controller-releases-new-play3-speaker-system/4

Our Speakers

● Play:1○ 2 Speakers - $199

● Play:3○ 3 Speakers - $299

● Play:5○ 6 Speakers - $499

● Playbar○ 9 Speakers - $699

● Sub○ 2 Speakers - $699

Play:1 Play:5

Playbarhttp://www.sonos.com/shop

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How it works

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● Connect SONOS to network

● Download the app

● Compatible with:○ iOS○ Android ○ Mac○ Windows

http://images.techhive.com/images/article/2014/03/newapp_ipad-100251478-orig.png

SONOS Customers

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Demographics:

● Gender: Male ● Age: 22-55● Income: $100,000 or above

○ Disposable income● Education: College graduate● Own or rent a home● Own smartphone/digital library

Psychographics:

● Design matters→ Hifi wireless system makes a positive impact

● Trend setters● Enjoy luxurious products● Value convenience

http://www.electronicproducts.com/uploadedImages/Software/Development_Tools_and_Software/sonos3.jpg

SONOS competition

SONOS PLAY:1 LG Music Flow H3 Bose SoundTouch 20 Samsung Shape M7

Price $199.00 $179.99 $399.99 $349.99

Dimensions 6.4” x 4.7” x 4.7” 4.9” x 6.9” x 4.5” 7.4” x 12.4” x 4.1” 15.8'' x 7.6'' x 5.4''

Weight 4.0 Pounds 5.0 Pounds 7.0 Pounds 8.4 Pounds

Power AC Adapter AC Adapter AC Adapter AC Adapter

Connectivity Wireless (iOS, Android, Mac, PC App), Ethernet

Wireless (iOS, Android App), Bluetooth, Ethernet

Wireless (iOS, Android, Mac, PC), Bluetooth, Ethernet, Auxiliary, USB

Wireless (iOS, Android, Mac, PC App), Bluetooth, USB

Features Automatic Software Updates, Humidity Resistant, Adjustable Bass and Treble, Trueplay Tuning, Huge Roster of Service Tie-Ins, SONOS App

Volume Knob, WPS Button, Limited Streaming Services

Remote, Limited Streaming Services, SoundTouch App

Limited Streaming Services, Limited Pairing

Speakers Two Speakers, Two Amplifiers, One Tweeter, One Mid-Woofer

One Speaker, One Amplifier Two Speaker One Speaker, Two Tweeters, One Woofer

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RitZ-carlton

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About The Ritz-Carlton

● Founded in 1983● Operates 91 hotels and resorts in 30 countries and territories

○ $400-$20,000 per night● Marriott International owns 49% stake● The only company to win the Malcolm Baldrige National Quality Award twice● “The world’s most popular luxury hotel brand” - Luxury Branding ● “We pledge to provide the finest personal service and facilities for our guests who will

always enjoy a warm, relaxing, yet refined ambience.”

http://www.ritzcarlton.com/en/Corporate/GoldStandards/Default.htm http://www.forbes.com/2009/10/30/simon-cooper-ritz-leadership-ceonetwork-hotels.html http://news.marriott.com/2015/09/the-ritz-carlton-ranks-1-in-new-luxury-branding-study-of-consumers.html

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Room Styles

Depending on location, Ritz-Carlton offers many different styles of rooms and suites:

● Rooms○ Deluxe Guest, Executive Guest, Superior, and City View Guest rooms

● Suites○ Junior, Executive, Loft, Penthouse, Presidential, and The Ritz-Carlton suites

http://pursuitist.com/the-worlds-best-luxury-hotel-brands/

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Room Styles (continued…)

http://www.ritzcarlton.com/en/Default.htm

● Central Park Suite● Los Angeles Ritz

Carlton Suite● Chicago

Lake-View room● South Beach

Deluxe Suite

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Created by SONOS

Customer Demographics

http://luxuryadvertisingnetwork.com/wp-content/uploads/2012/02/Ritz-Carlton_Magazine_Media_Kit_2012.pdf

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Customer Demographics (Continued...)

http://luxuryadvertisingnetwork.com/wp-content/uploads/2012/02/Ritz-Carlton_Magazine_Media_Kit_2012.pdf

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Primary Research

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1. When you think of the Ritz-Carlton, what word(s) first come into mind?

○ Luxury○ Classy○ Expensive

2. If you were to stay at the Ritz-Carlton, what would be most important to your stay?

○ Comfort○ Services/Amenities○ Convenience

3. Are hotel electronics a factor that play into your overall hotel experience?

Source: SONOS Group

What do Ritz customers want?

● Excellent authentic customer service (unscripted)

● Value in beautiful design and intelligent comfort

● Memorable and personal experiences that transcend luxury hospitality

● Rich and meaningful connections to the local culture

● Amenities ● Convenience and personalization

(website)

http://2012books.lardbucket.org/books/marketing-principles-v2.0/s17-customer-satisfaction-loyalty-.html

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Ritz Current audio Set-Up (US)

17https://play.google.com/store/apps/details?id=com.usablenet.android.ritzcarlton

Source: SONOS Group

Ritz-carlton competition

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The Ritz-Carlton The Luxury Collection Four Seasons The Peninsula

Locations 91 Hotels & Resorts in 30 Countries

99 Hotels in 35 Countries 96 Hotels in 41 Countries 10 Hotels in 7 Countries

Rooms 29,905 Rooms 18,942 Rooms 24,957 Rooms 2,961 Rooms

Average Daily Rates (ADR)

$338.48 $317.58 $363.50 $461.59

Revenue (2015)

$8.32 Billion $5.76 Billion $4.34 Billion $346 Million

Sound Set-up - Apple iHome (iPhone 3 - 6)- Bose AV3-2-1 Series 3

- Bose CD Radio - Apple iHome (iPhone 3 - 6)- Clock Radio

- Beats Pill- Beats Studio Headphones

The Pitch

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Why We Match

● Ritz mission○ “The Ritz-Carlton experience enlivens the senses, instills

well-being, and fulfills even the unexpressed wishes and needs of our guests.”

● Overlapping Demographics○ Primarily male○ Similar age range○ High/disposable income ○ College degree○ Home owners

● Value○ Design○ Convenience○ Luxury

20http://www.johnnyjet.com/2012/02/10-reasons-to-stay-at-the-ritz-carlton-toronto/

Enhanced by: SONOS

What SONOS Can Do for You

● Enhance the physical product Ritz Carlton offers○ The future is now○ In line with the Ritz Carlton brand luxury○ Added amenity

● Increase customer engagement○ Ritz is industry leader in engagement○ Increase word of mouth○ Added intrigue

● Increase customer retention ○ Going above and beyond with fresh concept○ Higher satisfaction○ Increase profits

● Bring in new customers○ The Ritz Carlton experience○ Increase profits

Ritz-Carlton-Residences-at-LA-Live-02-520x300.jpg21

Recommendation

SONOS PLAY:1

http://www.commercialtunage.com/commercials/sonos-play-1-mini-but-mighty/22

How It Differentiates

SONOS PLAY:1 Apple iHome (iPhone 3, 4) Apple iHome (iPhone 5, 6) Bose AV3-2-1 Series 3

Price $199.00 $54.99 $86.99 $1,299.00

Dimensions 6.4” x 4.7” x 4.7” 11.7” x 10.1” x 4.8” 12.2” x 5.7” x 9.8” 18” x 39” x 31”

Weight 4.0 Pounds 3.4 Pounds 4.6 Pounds 43.8 Pounds

Power AC Adapter AC Adapter, Battery AC Adapter, Battery Power Cord

Connectivity Wireless (iOS, Android, Mac, PC App), Ethernet

Wired (Auxiliary Cable) Wired (Auxiliary Cable), USB Wired (Auxiliary Cable)

Features Humidity Resistant, Adjustable Bass and Treble, Trueplay Tuning, Huge Roster of Service Tie-Ins

FM/AM Radio, Alarm Clock FM/AM Radio, Alarm Clock FM/AM Radio, DVD/CD Player

Speakers Two Speakers, Two Amplifiers, One Tweeter, One Mid-Woofer

Two Speakers Two Speakers Two Speakers, One Acoustimass Module 23

The Power of Sound

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Play:1

Bose

What It Offers● Superior Sound-System

○ Two Speakers, Two Amplifiers, One Tweeter, One Mid-Woofer

○ Pure Audio○ Trueplay Tuning○ Adjustable Bass and Treble

● Supports 48 Music Services● Wireless Connection

○ Control Music with with an iPhone, Android, Mac, or PC

○ Simultaneous Connections● Automatic Software Updates● Humidity Resistant● Wall Mountable

http://www.sonos.com/shop/play1#panel2-1 http://wireless-speakers.specout.com/l/1/Sonos-PLAY-1

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Our offer

● Sonos Play:1 speakers○ $120 per unit

● Free wall mounts● Full installation

○ Certified technicians do complete install○ System fully functional and ready for hotel guests

and employees to use

● Complete support ○ Exclusive Partnership○ Account Manager/Director○ Toll free support (1-800-680-2345)

http://www.insideci.co.uk/news/flexson-intros-sonos-play1-ceiling-mount-adds-solutions.aspx

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Test Run

● Preliminary trial (6 months)○ After free trial, decide if SONOS is right for The Ritz

● What it accomplishes○ Showcase our dedicated service○ Smooth out any difficulties that may arise in the transition ○ Increase efficiency for full expansion

● 10 US hotels○ Central Park, San Francisco, Chicago, Boston, Charlotte, Atlanta, Dallas,

Washington DC, Los Angeles, South Beach○ Represents mix of global business and leisure travelers○ 2,831 rooms

● Guest satisfaction survey○ Gauge effects SONOS had on a guest’s level of satisfaction

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Guest Survey

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Goals

● Provide you with a superior audio system○ Convenience, technology, sound

● Position you for the future○ Direction society is heading

● Increased prestige ○ Customer satisfaction, industry reputation

● Create lifelong customers● Create long-term relationship of value

ritz-carlton-customer-service-litigation-support-a2l-consulting.jpg

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Relationship Development

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First Major Account

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● Offer is exclusive to the Ritz-Carlton

● Salesforce activities will be integrated with the needs of the Ritz-Carlton

● After the test run, we hope to provide SONOS to all of the Ritz-Carlton hotels

○ Individual sales reps will be assigned to each geographic location

● We will deliver the highest level of customer service across all locations

● We will provide Sales Executives assigned to the Ritz-Carlton account

● The Ritz is the TOP priority

https://www.behance.net/gallery/2145575/SONOS

Sales Organization Structure

● Primary account director oversees two primary departments/teams and the entire

SONOS account team

● Account director (direct liaison just for SONOS)

○ Virtually 24/7 communication, any concerns are addressed through

account director and distributed to account teams accordingly.

○ Customer service/support (4 members per team)

○ Sales (4 members per team)

○ Weekly meetings for all teams with account director

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CRM Benefits

● CRM Database○ All properties are surveyed for integration and satisfaction with SONOS products.○ All customer, servicing, sales, and analytics information plugged into management

system for data analysis.

● Results used for improvements in products, service, placement, etc.○ All information insights shared with Ritz-Carlton.

● Integration with existing Ritz-Carlton software databases. ○ Mystique platform (Also including other programs - CRM, customer loyalty, etc.)

33http://www.merchanttechnologies.com/mtpos/categories/solutions/customer-relationship.php

Integration

● Account director, account team managers, and account teams are proactive employees

looking to solve problems before they even exist.

● Complete assimilation of selling/support activities and other departments

○ All representatives are members of the SONOS account team

● Account director and managers coordinate and integrate teams with Ritz-Carlton

customers and staff

○ Sales force activities must be integrated/coordinated with customer needs and

with other departments

○ Customer service/support completely united with SONOS sales team,

Ritz-Carlton’s employees and customers. 34

Exploration (Trial Run)

● Determine value

○ Display quality of SONOS & added benefits to Ritz-Carlton experience

● Build trust

○ Risk-free trial, exclusively for Ritz-Carlton

● Set proper expectations

○ Superior audio quality & 24/7 customer support

● Monitor

○ Analyze customer satisfaction & maintain equipment

35http://www.starshipsodyssey.com/wp-content/uploads/2015/10/space-exploration.jpgImage enhanced by: SONOS

Expansion

● Location

○ SONOS Speakers in every Ritz-Carlton Hotel

● Full-line offers

○ Play:1, Play:3, Play:5, Playbar, Sub

● Continued services

○ Tech support & product insurance

36Image enhanced by: SONOS

Commitment To Excellence

● Build loyalty & trust

○ Continued discount

○ Proven quality/reliability

● Become a preferred supplier

○ Effortless transactions

● Engage in TQM

○ Tech support on call 24/7

37http://customersthatstick.com/wp-content/uploads/2012/09/cts_post_2012-09_ritz-carlton-2000-rule.jpg

Questions?

http://america.etbtravelnews.com/207436/first-ritz-carlton-brings-luxury-greater-palm-springs-todays-opening-ritz-carlton-rancho-mirage/

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B Slides

SONOS Play:1 vs. Logitech UE Boom

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Play:1

UE Boom

http://cdn.referencehometheater.com/wp-content/uploads/2013/10/Sonos-Play1-Response-RMS-Average.png?e678a4 http://www.avsforum.com/forum/89-speakers/1803818-portable-bluetooth-speaker-comparison-measurements.html

Ritz Audio Setup

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1-Arizona, Dove Mountain – iHome (iPhone 3, 4, 5, 6)1-California, Half Moon Bay – iHome (iPhone 3, 4)1-California, Languna Niguel – iHome (iPhone 3, 4, 5, 6)1-California, Lake Tahoe – iHome (iPhone 3, 4, 5, 6)1-California, Los Angeles – iHome (iPhone 3, 4, 5, 6)1-California, Marina del Rey – iHome (iPhone 3, 4, 5, 6)1-California, Rancho Mirage – iHome (iPhone 3, 4, 5, 6)1-California, San Francisco – iHome (iPhone 3, 4)2-Colorado, Bachelor Gulch – iHome (iPhone 3, 4, 5, 6)2-Colorado, Denver – iHome (iPhone 3, 4, 5, 6), Bose (AV3-2-1 Series 3)2-Colorado, Vail, The Ritz-Carlton Club – Bose (AV3-2-1 Series 3)5-Florida, Amelia Island – iHome (iPhone 3, 4), Bose (AV3-2-1 Series 3)5-Florida, Bal Harbour, Miami – Bose (AV3-2-1 Series 3)5-Florida, Coconut Grove, Miami – iHome (iPhone 3, 4, 5, 6)5-Florida, Fort Lauderdale – Radio5-Florida, Key Biscayne, Miami – Bose (AV3-2-1 Series 3)5-Florida, Naples – iHome (iPhone 3, 4)5-Florida, Naples Golf Resort – Radio5-Florida, Orlando, Grande Lakes – iHome (iPhone 3, 4, 5, 6)5-Florida, Sarasota – Bluetooth (TV)5-Florida, South Beach – iHome (iPhone 3, 4, 5, 6)5-Georgia, Atlanta – iHome (iPhone 3, 4, 5, 6)5-Georgia, Buckhead – iHome (iPhone 3, 4)5-Georgia, Reynolds, Lake Oconee – iHome (iPhone 3, 4)

1-Hawaii, Kapalua, Maui – iHome (iPhone 3, 4, 5, 6)3-Illinois, Chicago – iHome (iPhone 3, 4)2-Louisiana, New Orleans – iHome (iPhone 3, 4, 5, 6)4-Massachusetts, Boston Common – iHome (iPhone 3, 4, 5, 6), Bluetooth (TV)3-Missouri, St. Louis – Bluetooth (TV)4-New York, Battery Park – iHome (iPhone 3, 4), Bose (AV3-2-1 Series 3)4-New York, Central Park – Bose (AV3-2-1 Series 3)4-New York, Westchester – Bose (AV3-2-1 Series 3)North Carolina, Charlotte – iHome (iPhone 3, 4), Bose (AV3-2-1 Series 3)3-Ohio, Cleveland – iHome (iPhone 3, 4, 5, 6), Bose (AV3-2-1 Series 3)3-Pennsylvania, Philadelphia – iHome (iPhone 3, 4, 5, 6)2-Texas, Dallas – iHome (iPhone 3, 4, 5, 6), Bose (AV3-2-1 Series 3)Washington, D.C., Washington D.C., Georgetown – iHome (iPhone 3, 4, 5, 6)Washington, D.C., Pentagon City – iHome (iPhone 3, 4, 5, 6)Washington, D.C., Tysons Corner – iHome (iPhone 3, 4, 5, 6)Washington, D.C. – RadioOntario, Toronto – Bose (AV3-2-1 Series 3)

iHome (iPhone 3, 4) – 9/41iHome (iPhone 3, 4, 5, 6) – 21/41Bose AV3-2-1 Series 3 – 12/41Bluetooth (TV) – 3/41Radio – 3/41

Compiled by Team

42http://musicmachinery.com/2014/02/13/age-specific-listening/ http://www.statista.com/statistics/190975/listener-hours-of-music-streaming-service-pandora-since-2009/ http://www.edisonresearch.com/the-infinite-dial-2015/ http://nerdydj.com/2014/01/rock-music-was-the-most-popular-genre-in-2013/

Four P’s

● Product○ Wireless, Hi-Fi Speakers

● Price○ $199 - $699 (retail)

● Promotion○ Online, In-store, Word of mouth

● Place○ Online, In-store

http://www.audioadvice.com/sonos/

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How They Work

● Completely wireless

● Connect to Bluetooth network

● Download the app

● SONOS Demonstration

http://www.atlantahometheatresystems.com/music-everywhere/44

Ritz Carlton Four P’s

● Product○ Luxurious hotel rooms and suites with high elegant

standards

● Price○ Vary according to the location, services and products

available in each room○ $400-$20,000 per night

● Promotion ○ Online Web-site, TV Commercials, The Ritz-Carlton

Rewards program, Word of mouth

● Place ○ 91 hotels worldwide in 30 different countries

http://www.ritzcarlton.com/en/Locations/Map.htm45

Works Cited

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Slide 8: http://www.lg.com/us/home-audio/lg-NP8340-wireless-audiohttp://www.androidcentral.com/quick-look-lg-music-flow-h3https://www.bose.com/en_us/products/speakers/wireless_speakers/soundtouch-10-wireless-system.htmlhttp://www.electronichouse.com/daily/home-audio/four-sonos-alternatives-wireless-speakers-worth-buying/http://www.consumerreports.org/cro/news/2014/03/wireless-speaker-shootout-sonos-play-1-vs-the-bose-soundtouch-20-and-samsung-shape-m7/index.htm

Slide 18: http://www.hoovers.com/company-information/cs/competition.The_Ritz-Carlton_Hotel_Company_LLC.567b1f1efa91e2d8.html http://www.hshgroup.com/en/Property-Management-Portfolio/The-Peninsula-Hotels/The-Peninsula-Hong-Kong.aspx http://www.hotel-online.com/News/PR2005_1st/March05_HongkongShanghai.html http://www.fourseasons.com/about_four_seasons/# http://www.hshgroup.com/en/~/media/Files/HSHGroup/Investor_Relations/Corporate_Announcements/2015/HKEX%20web%20announcement_

Slide 23: http://www.sonos.com/shop/play1#panel2-1 http://www.amazon.com/iHome-Speaker-Clock-Radio-iPhone/dp/B001L9KMTI http://www.amazon.com/iHome-iDL45BC-Lightning-Charge-iPhone/dp/B009NZ6SZE http://www.amazon.com/321-Series-Home-Entertainment-System/dp/B001DOHYS8

Slide 24: http://referencehometheater.com/review/sonos-play1-review/ http://www.soundandvision.com/content/energy-take-classic-speaker-system-ht-labs-measures#WujzsOPYBgqeZ0PD.97

Slide 27: http://r-ec.bstatic.com/images/hotel/max400/317/31789094.jpg, http://luxuryblackbook.com/wp-content/uploads/2014/01/Ritz-Carlton-Chicago-Penthouse-view.jpg, http://www.privatelosangelestours.com/wp-content/uploads/2012/12/Ritz-Carlton-Los-Angeles.jpg