Brand Identity and Charters presentation (no videos) 4-24-2017

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Slide1:

Bill Hayden, Chief Strategy Officer and Senior Vice President Strategy, Insights & Brand Management UNIVERSAL ORLANDO RESORT ™ BRAND IDENTITY AND CHARTERS

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Universal Orlando as a Challenger Our Brand Identity

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3 “We see this (Universal Parks) as a major growth driver for the company for 5, 10, 15, 20 years.” Steve Burke

Challenger Brand 101:

Challenger Brand 101 Challenger Brands share these attributes: State of Market: They’re not the #1 brand and not a niche player. State of Mind: They have ambitions that exceed their conventional marketing resources. R ate of Success: They are succeeding, not merely ambitious or arrogant. Challenger Brands understand that: The market leader is already top of mind. They can’t outspend the leader. The best chance they have to gain share is by being the mindshare leader. To win mindshare takes thought leadership . Source: Eating the Big Fish, Adam Morgan, 2009 4

As the market leader, Disney has the law of increasing returns on their side:

Law of Increasing Returns – not only are Market or Brand Leaders bigger and enjoy proportionately greater benefits, the superiority of their advantage increases exponentially the larger they get – awareness, shopping, purchase and loyalty. Facing this Law, a Challenger Brand must deal not merely in quality, reassurance and trust but in the more potent currencies of curiosity, desire and reevaluation. To succeed, they must create an emotional identification, a strength of belief in the brand, a sense they are “one to watch” or explore – active expressions of choice and loyalty that will make someone walk by the big convenient facings of the Brand Leader and lean down to pick up the little theme park vacation by its side. As a second rank brand, we don’t just want to create desire, we want to create intensity of desire. As the market leader, Disney has the law of increasing returns on their side Source: Eating the Big Fish, Adam Morgan, 2009 5

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In the Domestic US (non-Florida), actual theme park visits to Central Florida parks demonstrate the significant market power WDW still wields The Actual Performance Gap between UO and WDW is Also Quite Wide Despite Recent Market Share Gains By UO 2015 Penetration 2015 OUS Post-Visit Survey “Which of the following theme parks did you actually visit during your most recent trip to Orlando?” 2015 Theme Parks Visited – UO/WDW Combos 2015 OUS Post-Visit Survey “Which of the following theme parks did you actually visit during your most recent trip to Orlando?” Share of CFL Theme Park Visitation Out of Time in Orlando 2015 OUS Post-Visit Survey “Now thinking back to your most recent trip, how many days did you spend at each of the following Orlando theme parks?” Base: Visitors of Any Theme Park 6

HOW DO WE BATTLE THE MARKET LEADER?:

HOW DO WE BATTLE THE MARKET LEADER? Challenger marketing has to have 400% more impact Source: Eating the Big Fish, Adam Morgan, 2009 7

We need to adjust the organization’s culture – its mindset:

We need to adjust the organization ’ s culture – its mindset Challenge the appropriateness of WDW for the times we live in today Challenge the relevance of the past to a new world Believe consumers have new motivations and culture, new habits and new sensibilities that their brand can key into a lot more viscerally than the brand leader who is connected to the past by its very success Elegantly position WDW as perfect for the time gone by, but being clear that time has now gone, and that UO is for those wanting to be part of a new generation . That was then, this is now. New times and a new cohort call for new brands that truly reflect them – and UO is one of those Source: Eating the Big Fish, Adam Morgan, 2009 8

Once a company becomes successful, it creates rules, procedures, and policies to protect the status quo:

Once a company becomes successful, it creates rules, procedures, and policies to protect the status quo Complacency Repetition Protectiveness Insatiability Curiosity Willingness to Destroy Source: Better & Faster – Jeremy Gutsche Hunter Instinct Farmer Trap 9

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Our approach leverages the framework and exercises developed by eatbigfish , the foremost experts in Challenger Brands Sources: Consumer Insights 2014/2015 Segmentation Study and 2016 Global IP Study OUR Journey to becoming a challenger Brand 10 Common and Shared Sense of the Target Consumer Defining the Central Issue (what are we challenging) Determining Lighthouse Brand Identity

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Our approach leverages the framework and exercises developed by eatbigfish , the foremost experts in Challenger Brands Sources: Consumer Insights 2014/2015 Segmentation Study and 2016 Global IP Study OUR Journey to becoming a challenger Brand 11 Common and Shared Sense of the Target Consumer Defining the Central Issue (what are we challenging) Determining Lighthouse Brand Identity

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Who do we target? Young Adults No Kids? A dults with no kids who enjoy theme parks are kids at heart and are not expecting messaging or experiences when it comes to theme park vacations that exclude children. They are our target but we do not need to target them. Families With Small Kids? Simply put, Disney owns this segment. Universal just needs enough content to not alienate families with little ones in tow. Sources: Consumer Insights 2014/2015 Segmentation Study and 2016 Global IP Study Target consumer – Demographics are a Dead End 12

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Who do we target? Sources: Consumer Insights 2015 Teens and Tween Study and 2016 Global IP Study http://clearboxinsights.com/2015/05/four-things-that-might-surprise-you-about-millennials-with-kids / All Millennials 40% of millennials over age 25 have kids but those kids’ ages fall right in Disney’s sweet spot. Our competitor is well suited to target this group now for immediate returns. Families With Teens/ Tweens Tweens are the battleground area where families are aging out of Disney and into Universal, and teens show consistent affinity for Universal’s IP and thrill factor. …but not all families with teens and tweens choose us over Disney Target consumer – Demographics are a Dead End But how do we set ourselves apart as a brand that resonates with the next generation of families when the demographic facts are not in our favor? 13

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Sources: Consumer Insights 2014/2015 Segmentation Study , 2016 Global IP Study, and 2015 Park Content Optimization Study What will help us identify consumers who would prioritize Universal Orlando in their Central Florida vacation planning over the market leader? No. The correlation between liking Disney and liking Universal is too strong. Those who reject Disney also reject theme parks in general. No. There are strong cross affinities between trip driving UO intellectual properties and Disney owned properties. UO IP? Should we target consumers who like our IP? No. True adventure seekers prioritize other kinds of vacation destinations and Disney enthusiasts (just like UO’s) love thrill rides more than any other kind of attraction. Thrill Seekers? Should we target consumers who want big thrills? Target consumer – It Comes Down to Attitude Disney Affinity? Should we target consumers who reject Disney? 14

One factor surfaces over and over in research as identifying consumers who prefer UO to Disney and exist in high enough numbers to drive business:

One factor surfaces over and over in research as identifying consumers who prefer UO to Disney and exist in high enough numbers to drive business Individualism 15

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They are unconventional and do not buy into the mainstream. There is nothing more mainstream than Disney. They are often considered by others to be unusual and place high value on culture, art, music. Disney, as the ubiquitous entertainment giant, mass produces “the normative” and “the usual .” They value their independence, individuality, and freedom. Disney encourages conformity and constancy . They appreciate a little irreverence and edge. Disney stands for civility and charm. How Do INDIVIDUALISTS Think and Act? 16

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The Universal Orlando Next Generation consumer is defined by a mindset , not an age

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All Millennials are NOT our Next Generation consumer

The UO Next Generation Consumer is…:

The UO Next Generation Consumer is… Likely to be a Millennial 62 % of the UO Next Generation are 18-34 56% have kids under 18 in the HH 51% of Millennials are a UO Next Generation consumer Ethnically Diverse Over-index as multicultural audiences Less tolerant of racial bias or stereotypes than other consumers More Likely to be a High Brow Hater and Less Likely to be a Theme Park Lifer than Disney Fans

The UO Next Generation consumer uses media to connect with others, filter information, and improve everyday tasks::

The UO Next Generation consumer uses media to connect with others, filter information, and improve everyday tasks: Prefer curated media and ways to easily digest content Use of social media and apps to meet new people and connect with others Prefer peer-based information and crowd sourcing More likely to turn to social influencers for advice than to conventional celebrities or mainstream media Expect seamless processes and technology Prefer Facebook over Twitter or Instagram More likely to use laptop over other devices

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The Universal Orlando Next Generation consumer has a strong appreciation of culture, art and music

In terms of brand communications, the UO Next Generation consumer prefers a mainstream tone of voice -- with a twist:

In terms of brand communications, the UO Next Generation consumer prefers a mainstream tone of voice -- with a twist They are a little unconventional – they’re described as unusual, have less mainstream tastes in music and culture They are more open to quirkiness, edginess, “out of the ordinary”… but, they’re still “normal” The UO Next Generation consumer is looking for something a little less traditional and sweet, a little more contemporary and edgy Not “opposite” of Disney – just more open to the contemporary and non-traditional 21% of our target consumers preferred a snarky tone ( vs. sweet), compared to 12% of Disney lovers X

Preferred Tone & Feel in Advertising for a World-Class Theme Park:

spontaneous contemporary edgy Preferred Tone & Feel in Advertising for a World-Class Theme Park fast-paced dynamic

The UO Next Generation consumer::

The UO Next Generation consumer: Loves Harry Potter far above all of our other I.P. Will be excited about some of our new content - Fast & Furious and Nintendo resonate particularly strongly among this audience; our IP future looks bright. Watch out! Avatar also does very well among this group, beating out Jimmy Fallon and King Kong.

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Harry Potter remains critically important

While there are some differences in what the UO Next Generation Consumer is looking for in a vacation, planning and booking behaviors remain consistent:

While there are some differences in what the UO Next Generation Consumer is looking for in a vacation, planning and booking behaviors remain consistent L ooking for fun and relaxation on their vacations Less likely to say that spending time with their immediate family is a best part of a vacation More likely to want to learn something new and experience new cultures. Recommendations and reviews are most important travel information sources Recommendations from family and friends Traveller reviews on online sites Likes theme p arks but more i nterested in alternatives than Disney Fans 67% visit Theme Parks for thrills over nostalgia

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The UO Next Generation consumer is not something we expect to see in the future. They are in our parks experiencing our destination today .

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Our approach leverages the framework and exercises developed by eatbigfish , the foremost experts in Challenger Brands Sources: Consumer Insights 2014/2015 Segmentation Study and 2016 Global IP Study OUR Journey to becoming a challenger Brand 28 Common and Shared Sense of the Target Consumer Defining the Central Issue (what are we challenging) Determining Lighthouse Brand Identity

Our Key Central Issue:

Our Key Central Issue Competitive Issue We are competing with “Kleenex” or “Band-Aid” – WDW and Disney are synonymous with and representative of the category 29

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30 To be an effective Challenger we need to identify the key characteristics where we should differentiate from WDW

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31 Key WDW Qualities History Nostalgia Enduring Wholesome Market Share IPs (Owned and Licensed) Resources (Funds and People) Organizational Confidence Strong Parent Brand Vision Culture Consistency Destination Opposite or Different New Contemporary Evolving Edgy Niche Original Content Efficiency Humility Freedom Responsive Individuality Spontaneous Simpler and Easier Key Characteristics Where We Should Differentiate from WDW

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32 Key WDW Qualities History Nostalgia Enduring Wholesome Market Share IPs (Owned and Licensed) Resources (Funds and People) Organizational Confidence Strong Parent Brand Vision Culture Consistency Destination Opposite or Different New Contemporary Evolving Edgy Niche Original Content Efficiency Humility Freedom Responsive Individuality Spontaneous Simpler and Easier Key Characteristics Where We Should Differentiate from WDW Opposite or Different Different Different Different Different Same Same Different Same Different Same Same Same Same

What will we Challenge :

What will we Challenge The culture of the category 33

Slide34:

Our approach leverages the framework and exercises developed by eatbigfish , the foremost experts in Challenger Brands Sources: Consumer Insights 2014/2015 Segmentation Study and 2016 Global IP Study OUR Journey to becoming a challenger Brand 34 Common and Shared Sense of the Target Consumer Defining the Central Issue (what are we challenging) Determining Lighthouse Brand Identity

Finding Our Lighthouse Brand Identity:

Finding Our Lighthouse Brand Identity Key words that describe our Lighthouse Brand Identity: Unconventional Bold Freedom Inclusive Hyper-evolving Unique Let Loose Fun 35

Brand IDENTITY:

The world is constantly changing and along with that the definition of what it means to be a family and what a family vacation looks like. We don’t live in the land of Leave It to Beaver. Next Generation families don’t all look the same and don’t want to fit into anyone’s box. 36 Brand IDENTITY

Brand IDENTITY:

Not concerned with the notion of what vacations are ‘supposed’ to be, Universal Orlando seeks to provide family vacation experiences that reflects the diversity, values and interests of today’s ever-evolving families. We understand that family vacations are about creating meaningful connections with the people in our lives we care about the most – from mothers and brothers, to grandparents and partners, to girlfriends, neighbors and friends. 37 Brand IDENTITY

Brand IDENTITY:

UO doesn’t create expectations of how one should act or the pressure of one “perfect” experience but embraces the spontaneous, offbeat, audacious nature we all possess to deliver true FUN. UO is a place where families have the freedom to be bold, let loose and connect while being their real selves. 38 Brand IDENTITY

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Brand Management UNIVERSAL ORLANDO RESORT Updated: February 7, 2017 ™ BRAND CHARTERS

Destination growth necessitates evolution of the Brand Charters to serve as a long-term roadmap for all divisions. :

OBJECTIVES Strengthen the brand promise of Universal Orlando as a multi-day and night vacation destination. Reflect product evolution and future growth as a contemporary destination based on: Vacation expectations from a new generation of families Technological advancements throughout the destination Bringing to life the most popular and relevant characters and stories to the theme parks Redefine the competitive advantage of the destination and individual brands . Destination growth necessitates evolution of the Brand Charters to serve as a long-term roadmap for all divisions. Vision Mission Brand Promise Brand Essence Positioning Brand Charters Include: Universal Orlando Resort* Universal Studios Florida Universal’s Islands of Adventure Universal’s Volcano Bay Universal’s CityWalk Universal’s On-Site Hotels

Brand Charters guide all divisions to preserve the authenticity and thematic consistency of the individual brands.:

Brand Charters guide all divisions to preserve the authenticity and thematic consistency of the individual brands. MARKETING & SALES Deliver clear differentiation for individual brands in all communication. Brand Charters FINANCE Performance metrics to support and reinforce the individual brands. MERCH & REV OPS Develop dining & merchandise products that reinforce and support the themed environment of each theme park. ENTERTAINMENT Deliver new experiences that reinforce the overarching identities of each theme park. UNIVERSAL CREATIVE Reinforce individual brands with new experiences across the resort. PARK TECHNOLOGY Preserve the uniqueness of the theme park sub-brands through new technology integration. OPERATIONS / LOEWS Front-line Team Member training to deliver ‘on-brand’ experiences for each brand. HUMAN RESOURCES Develop Team Member training through brand immersion workshops for new and current employees. INTERNAL GUEST FACING

Brand Charters Framework:

Brand Charters Framework         D E F I N I T IO N PU RP O SE ACTION V I S I O N (BRAND IDENTITY) W h a t we w a nt T O B E (a spi ra tion a l) S t ra t e g ic a li g nm e nt O r g a ni z a tion a l r o a dm a p Embrace and reinforce the Vision of the brand as part of the organizational culture. Maintain and reinforce Brand Charters. M I SS I O N (HOW DO WE DELIVER THE VISION?) Why we exist, and w h a t we n ee d T O DO to m a ke V ision a rea lity ( t ac ti ca l) C l ear ly d ef in e s p r odu c t a nd s er vi c e d e liv e r y obj ec tiv e s Deliver projects and daily operations in a manner that is consistent with the Vision . B R AND PROMISE (EMOTIONAL/FEELINGS) W h a t we w a nt our g u e sts T O F EE L (e motion a l) C l ear ly d ef in e s g u e st e x p er i e n c e obj ec tive Preserve the brand authenticity in daily operations, for a seamless experience from pre-arrival to post-visit. B R AND ESSENCE Single word descriptor. Succinctly d ef in e s g u e st e x p er i e n c e obj ec tive N/A PO S I T I O NING (PERCEPTION TO CREATE) How we should be PERCEIVED What to say about the experience Consistency in how the brands are portrayed. Develop campaigns, attractions and experiences, which lead to brand affinity and loyalty.

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BRAND CHARTERS

Universal’s Islands of Adventure:

VISION (BRAND IDENTITY & ASPIRATION) To be the most adventurous theme park where Guests unleash their inner hero and chart their own adventure through powerful stories, myths and legends . MISSION (HOW DO WE DELIVER THE VISION?) As Team Members, we encourage Guests to engage in the adventure, challenge their everyday life and discover their own sense of bravery as they embark on new quests throughout their journey. Universal’s Islands of Adventure BRAND PROMISE ( EMOTIONAL/FEELINGS) Universal’s Islands of Adventure inspires the adventurer in each of us and renews our yearning for discovery as we enter immersive, fantastical worlds of the greatest fictional stories where in the spirit of bravery we embark on our own heroic journey. BRAND ESSENCE Epic Adventure

Universal’s Islands of Adventure:

POSITIONING (PERCEPTION WE WANT TO CREATE) Universal’s Islands of Adventure delivers immersive adventures and daring exploits in wondrous, fictional worlds where Guests embark on their own heroic pulse-pounding journey within the world’s greatest stories. Universal’s Islands of Adventure

Universal Studios Florida:

Universal Studios Florida VISION (BRAND IDENTITY & ASPIRATION) To be the studio theme park that unleashes Guests’ imaginations, pulling them into the most captivating worlds inspired by the ever-evolving movie and entertainment universe. MISSION (HOW DO WE DELIVER THE VISION?) As Team Members, we create blockbuster experiences with a passionate commitment to authenticity to immerse our Guests in their favorite entertainment worlds from film, television, and video games – bringing their imaginations to life. BRAND PROMISE ( EMOTIONAL/FEELINGS) Universal Studios Florida encapsulates the artistry and magic behind entertainment’s evolution at every twist and turn, pulling us deeper into worlds we’ve loved on screens and until now only lived in our imaginations. BRAND ESSENCE Blockbuster Universe

Universal Studios Florida:

Universal Studios Florida POSITIONING (PERCEPTION WE WANT TO CREATE) Universal Studios Florida pulls you deeper into the stories of both real and imagined worlds – where heart-pounding, cutting-edge attractions and experiences bring popular movie franchises, television shows, video games and the entire entertainment universe to life.

Universal’s Volcano Bay:

Universal’s Volcano Bay VISION (BRAND IDENTITY & ASPIRATION) To be a category defining water theme park, where water is life and life is joy—a mythic tropical oasis where unprecedented experiences allow Guests to escape entirely into waters both thrilling and tranquil. MISSION (HOW DO WE DELIVER THE VISION?) As Team Members, we will deliver resort-like amenities, pamper our Guests, and immerse them in unparalleled theming and a care-free islander lifestyle, encouraging them to find happiness in a breathtaking water paradise of winding rivers and daring rides. BRAND PROMISE ( EMOTIONAL/FEELINGS) Universal’s Volcano Bay reinvigorates our zest for life, whether we’re seeking volcanic thrills or simply find ourselves longing for that idyllic setting to while away the day in a beautiful paradise escape. BRAND ESSENCE Exhilarating Water Paradise

Universal’s Volcano Bay:

Universal’s Volcano Bay POSITIONING (PERCEPTION WE WANT TO CREATE) Universal’s Volcano Bay is the only water theme park of its kind—a mythical island of enchanted waters, delivering exceptional amenities in a tropical paradise with an array of both thrilling and relaxing water experiences.

Universal’s On-Site Hotels:

Universal’s On-Site Hotels VISION (BRAND IDENTITY & ASPIRATION) To be the leading hotel choice that invites Guests into unique and unforgettable experiences that are part of the ultimate Universal Orlando Resort vacation, offering immersive and distinctively themed environments that make any vacation, a vacation of a lifetime. MISSION (HOW DO WE DELIVER THE VISION?) As hospitality experts (Team Members) we deliver one-of-a-kind guest benefits, unparalleled services, and immersive dining and events, which ultimately enhance and extend the Guests’ overall Universal experience; transporting them to another place and time, beyond a hotel room for a memorable experience every visit. BRAND PROMISE ( EMOTIONAL/FEELINGS) Universal Orlando’s On-Site Hotels are a collection of unique stories that take the Guest experience beyond the theme parks, creating a seamless vacation that leaves Guests wishing they never had to go back to reality. BRAND ESSENCE Vacation Uninterrupted

Universal’s On-Site Hotels:

Universal’s On-Site Hotels POSITIONING (PERCEPTION WE WANT TO CREATE) Universal On-site Hotels deliver the complete Universal Orlando Resort experience—they are not just a place to sleep and eat; they transport Guests to the heart of the excitement, immersing them in an unforgettable vacation with incredible services and exclusive theme park benefits. BRAND ESSENCE CONTINUED (PERCEPTION WE WANT TO CREATE) PBH – Relax within an Italian seaside village HRH – Live like a rock star RPR – Escape to a South Seas paradise SFR – Unwind in a Caribbean island escape CBBR – Revel in retro fun with a Florida twist AVT – Experience a new modern lifestyle

Universal’s CityWalk:

Universal’s CityWalk VISION (BRAND IDENTITY & ASPIRATION) To be the ultimate immersive dining and entertainment district with one-of-a-kind experiences for every Guest, which shimmers with sights, sounds, aromas and sizzling energy throughout the day and into the night. MISSION (HOW DO WE DELIVER THE VISION?) As Team Members, we include a show element in every facet of the district, whether it’s in the immersive experiences within venues, the spectacular theming in the restaurants or the exciting atmosphere as Guests stroll throughout CityWalk. BRAND PROMISE ( EMOTIONAL/FEELINGS) Universal’s CityWalk complements the amazing feeling our Guests experience throughout our resort. The sum of all venues fuels our Guest’s excitement to keep the thrills and excitement going throughout the day and into the night. BRAND ESSENCE Immersive Dining and Entertainment District

Universal’s CityWalk:

Universal’s CityWalk POSITIONING (PERCEPTION WE WANT TO CREATE) Universal’s CityWalk is the perfect blend of unique and immersive dining and world-class entertainment—a district, filled with high-energy excitement of the sights, sounds, aromas and surprises that transition from day to night, making CityWalk a happening and a gathering at its best.

Universal Orlando Resort - DRAFT:

Universal Orlando Resort - DRAFT VISION (BRAND IDENTITY & ASPIRATION) To be the ultimate vacation destination where the world’s most captivating and powerful stories provide families the freedom to be bold, let loose and connect while being their real selves. MISSION (HOW DO WE DELIVER THE VISION?) As Team Members , we embrace the spontaneous, offbeat, audacious nature we all possess to deliver true FUN in every exhilarating, immersive, shared experience. BRAND PROMISE ( EMOTIONAL/FEELINGS) Universal Orlando Resort provides thrilling, immersive family vacation experiences that reflect the diversity, values and interests of today’s ever-evolving families and a complete destination where guests can let loose, be their real selves and create meaningful connections. BRAND ESSENCE Audacious , let loose fun

Universal Orlando Resort - DRAFT:

POSITIONING (PERCEPTION WE WANT TO CREATE) Universal Orlando understands the world is constantly changing and along with that the definition of what it means to be a family and what a family vacation looks like. Next Generation families are unique, from mothers and brothers, to grandparents and partners, to girlfriends, neighbors and friends, and they seek meaningful connections, through the freedom to be their authentic selves. At Universal Orlando Resort, Next Generation families will find the bold, unconventional, heart-pounding, and ever-evolving vacation experiences from across the universe of entertainment that allow them to discover true FUN. Universal Orlando Resort - DRAFT

Differentiate Universal Orlando from Disney at every Guest touchpoint. :

Differentiate Universal Orlando from Disney at every Guest touchpoint. 56 AWARENESS INTENT (For Universal Orlando) EVALUATION CONVERSION (Actual Booking) PLANNING (Continue Conversion) VISITING SHARING Differentiate Universal Orlando from Disney. OBJECTIVE #1 AWARENESS INTENT (For Universal Orlando) EVALUATION CONVERSION (Actual Booking) PLANNING (Continue Conversion) VISITING SHARING Improve multi-park awareness. OBJECTIVE #2 AWARENESS INTENT (For Universal Orlando) EVALUATION CONVERSION (Actual Booking) PLANNING VISITING SHARING Establish IOA , USF, UVB as unique day-long experiences. OBJECTIVE #3 Differentiate Universal from Disney. Leverage The Wizarding World of Harry Potter as the destination driver. Communication Priorities: We are not Disney (Disruption) We are Universal (Brand Identity) Establish that Universal Orlando has three theme parks , requiring at least three days to experience the destination. Differentiate each theme park from each other, positioning each as a unique and day-long experience , requiring at least three days to experience the destination.

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As a Challenger Brand…. 1. 2 . 3 . 4 . Be a thought leader Fight complacency; be insatiable Avoid repetition; stay curious Resist the urge to protect the status quo; be willing to destroy to grow 57 57 5. Be vigilant to the need to overcommit to key initiatives and sacrifice to enhance focus

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