“Never walk along the established path, because it will only lead you to where others went.”
Every time we approach an innovation project with one of our clients, we resort to the concept of this famous phrase by Graham Bell. Innovation is the engine of change, the constant search for value generation; It is applied creativity. These concepts came to mind when I interpreted the words of Gabriela Mazza, Director of Organ&Co, in our first meeting. He conveyed his desire to innovate, to create, to grow even more in his company's value proposition to remain in the “top of mind” of his clients; This was what prompted her to contact DINKA.
Our first meeting with the renowned ecological amenities company for Hotels and Spas was in their offices prior to the inauguration of their new space. The pleasant aromas invaded the atmosphere, giving our meeting a particularly pleasant atmosphere. In that first talk, Gabriela highlighted that, although the company was achieving good results, a significant demand for its products, a very high level of customer satisfaction and a good reputation in the market, there was no clear projection with established objectives for the future.
DIAGNOSIS and PLAN
We started working almost immediately, as we always do at DINKA, carrying out a thorough diagnosis. We carry out this complete analysis by trying to gain a deep understanding of the organization by getting to know its products, customers and competition, value proposition, interviewing the members of the company, analyzing the results of the last periods (volume, trends, costs, margins, etc.), and then drawing the first conclusions that would lead us to a diagnosis and, consequently, to a work plan.
From the analysis of what was collected, we concluded that important decisions had to be made, fundamentally defining a clear growth strategy. To achieve this, it was essential to define an action plan based on innovation, which would allow the company to sustain orderly growth and foresee possible changes in the economic-political and market context, such as the release of import obstacles, the strengthening of competitors, the appearance of new competitors, etc.
From this arose the need to work in two lines. On the one hand, improve the efficiency of the organization (improvements in its management and work processes) and on the other, undertake an innovation process.
THE MANAGEMENT
As we usually do at DINKA, we approach the project holistically. Firstly, we worked on parameterizing the management data, implementing control panels that would allow the information to be analyzed for decision making.
We needed to have a good starting point, good planning and a clear horizon. Every change process takes time, and it is necessary to go through the stages to achieve a real transformation. This is how we initially focused on the control boards, to generate the indicators that would show the profitability of the business and where it was leveraged.
DETECTION OF OPPORTUNITIES
Before starting the innovation process, we focus on detecting existing opportunities in the target market, towards which to direct actions.
Since its inception, Organ&Co developed and marketed its products within the framework of ecological and sustainable cosmetics. In recent years, the global trend towards sustainability has experienced enormous growth at all levels, also impacting the responsible hotel industry and generating greater demand for “eco-friendly” amenities. Argentina represents a “green” destination for foreign tourists, who value actions in pursuit of sustainability. Currently there is no competitor that works with the concept of Amenities as a “partner” when improving the level of guest satisfaction.
Likewise, customers satisfied with the products used during their stay permanently demand the possibility of purchasing them and continuing to use them in their homes, generating an additional sales channel.
On the other hand, the growing niche of small hotels is demanding suppliers who can supply them with quality products, without the requirement of purchasing large quantities.
The analysis of these detected opportunities allowed us to develop a general strategy and specific actions, aimed at satisfying market demands.
The clearly defined objectives were, among others, to continue providing eco-sustainable hotels with high-quality ecological amenities, increasing the commitment to caring for the environment, providing advice to hotels on sustainable practices and serving the needs of small hotels as best as possible.
START UP
Once the direction we wanted to follow was established and under the new slogan of “being the main supplier of sustainable products within the national hotel market, being recognized for our commitment to the environment”, we began the review of each aspect that would comprise the change. Since a process of this type can never be carried out on a single element, but rather it is necessary to comprehensively analyze the situation and see how each factor plays with the others, it was necessary to act on different axes such as product, service, process and communication.
A wide range of products was redesigned, taking into account the commitment to the Environment that we want to convey. This means that their content was reformulated, so that they approach the maximum possible biodegradability. As for packaging, it also migrated towards alternatives more in line with the care and conservation of natural resources. The labels used, which until now were made of white paper, were migrating towards recycled paper. The “refill” method was implemented through the development of the dispenser for the use of the product in bulk, aimed at a significant reduction in material consumption.
The service to hotels was also reinforced in terms of advice, complemented with the delivery of instructional material for Environmental Care, in order to make clear to the guest the Hotel's commitment to environmental impact.
On the other hand, in line with the communication, the new market positioning was launched. This involved the review and redesign of the website, development of an informative mailing, contact with organizations associated with the Environment, Tourism and Cosmetics.
Finally, as is usual in many of the projects that we undertake at DINKA, after clearly defining the new strategy, a review of the processes was carried out, with the aim of optimizing the efficiency of the organization and lowering non-productive costs.
SOCIAL RESPONSABILITY
To comply with the concept of Triple Bottom Line – a term referring to sustainable businesses – actions aimed at environmental responsibility were implemented. For this purpose, the soap collection program, SOS Jabón, was developed. The process begins with the collection of the bread that is discarded in the rooms and spaces of the hotel, through instructions provided by the company to the housekeeping. The company is in charge of selecting and reprocessing the soaps and gives them to different foundations so that their volunteers can proceed with recycling and manufacturing new bars. These are donated to the community or saved for disaster relief. This project is based on the fact that in a month, a 30-room hotel discards approximately 20 kg of unused soap. This is equivalent to 6 years of hygiene for a typical family. Witnessing this inequality inspired us to design the SOS Soap program, which seeks to recycle this waste to bring it closer to the communities most in need.
THE CHALLENGE
Currently, the company must work on a new commercial strategy, considering its trajectory so far and adapting its management towards the future with the incorporation of the new elements available, the result of the work of recent months. In line with the innovation process carried out, it will be necessary to develop an e-commerce platform that allows it to complement its main activity. In this sense, the new commercial strategy must be developed and adjusted as closely as possible with the new strategic objectives set. Once again, it is extremely important to define commercial objectives, implement commercial control panels, and use all the necessary tools to detect deviations and act quickly accordingly.
Subsequently, and based on a good analysis of the available information, new commercial actions can be implemented that make it possible to further leverage the initiatives developed, the communication to clients and society and thus provide feedback to the business.
SANDRA FELSENSTEIN
Founder and director of the DINKA consulting firm.
Industrial Engineer (UBA) with a postgraduate degree in Strategic Marketing. He advised more than 40 companies on how to “strengthen” existing businesses, up to the creation of new businesses.