A Consulting Journey Fueled by Blue Ocean Strategy in Wellness Hospitality and Branded Residences
Introduction: Crafting a Paradigm Shift in Wellness
In the vibrant realm of personal transformation, a consortium of Portuguese and international investors embarked on an innovative journey. Teaming up with acclaimed personal transformation professionals, they set out to create a groundbreaking brand of wellness resorts, combining three synergic business sources – hospitality, transformative wellness and branded real estate. Blueshift was hired as a consulting partner to complement the promoter’s team expertise in the personal transformation arena with its deep knowledge of hospitality and branded residences.
Rooted in the principles of the Blue Ocean Strategy, the consulting project unfolded across seven pivotal phases, each contributing to the development of a unique, ground-breaking project in the transformative wellness industry:
- Phase 1: Market and Trends;
- Phase 2: Blue Ocean Strategy Foundations;
- Phase 3: Target Market Profiling;
- Phase 4: Transformative Experience Model;
- Phase 5: Resort Layout and Features;
- Phase 6: Business Plan and Valuation;
- Phase 7: Implementation Roadmap.
Phase 1: Market and Trends
In the opening phase of this transformative wellness project, Blueshift delved into the vast landscape of wellness tourism, aiming to grasp its size, growth, and global perspectives. The endeavor encompassed an analysis of average wellness spending and premiums vis-à-vis the tourism industry average, dissecting these aspects globally and by region or country.
Blueshift scrutinized various wellness market industries, providing a detailed description, and delved into key trends within wellness tourism. With a nuanced understanding of these trends, Blueshift conducted a trend relevance analysis, discerning the most impactful trends for the project’s strategic foundation.
Phase 2: Blue Ocean Strategy Foundations
This pivotal stage involved laying the groundwork for a distinctive approach rooted in the renowned Blue Ocean Strategy.
Beginning with the outlining of basic concepts and tools integral to the Blue Ocean Strategy, the phase focused on defining the project’s mission and identifying key strategic groups. A comprehensive exploration of competitive factors, contrasting traditional or incumbent factors with emerging disruptive elements, set the stage for strategic formulation.
Applying strategic frameworks like the Four Action Framework and Strategic Canvas, Blueshift meticulously navigated the complexities of reconstructing market boundaries using the Six Paths methodology. The culmination of Phase 2 involved a strategic blueprint that would serve as a guiding light for the subsequent phases, ensuring a cohesive and innovative approach to the transformative wellness project.
Phase 3: Target Market Profiling
Phase 3 marked a crucial juncture in the evolution of the transformative wellness resort project. In this stage, Blueshift, as the project manager and hospitality specialist, meticulously crafted the contours of the venture in alignment with the strategic guidelines established earlier.
The journey commenced with a robust analysis of selected international case studies on wellness. Blueshift drew valuable insights from global best practices in other industries, providing a solid foundation for developing a unique and impactful concept.
Armed with these insights, the team ventured into the characterization of customer segments, shortlisting the most relevant ones for the project’s vision. This paved the way for a detailed exploration of the psychographics, unraveling the intricate profiles of end users, solution providers, and potential investors.
This phase set the stage for the upcoming conceptualization of the transformative wellness resort, ensuring that the vision aligned seamlessly with the identified market segments and their nuanced preferences.
Phase 4: Transformative Experience Model
Under the guiding expertise of Blueshift, this stage delved deep into the intricate landscape of designing the transformative experience offered by the resort.
This phase commenced with a comprehensive benchmarking exercise. Blueshift meticulously studied personal transformation programming, drawing insights from successful industry models. Simultaneously, the team scrutinized personal transformation platforms, unraveling the key dimensions for segmentation of program types.
Building on this foundational understanding, Blueshift embarked on the development of a preliminary database of potential programs. This involved outlining and describing various personal transformation program types, considering the diverse needs and preferences of the identified market segments.
The outcome of Phase 4 was a detailed description of the transformative experience model, incorporating a rich tapestry of program types tailored to the nuances of the project’s strategic vision. This laid a solid foundation for the subsequent phases, ensuring that the resort’s transformative offerings were not only innovative but also intricately aligned with the preferences of the target audience.
Phase 5: Resort Layout and Features
Phase 5 unfolded as a pivotal stage in shaping the physical embodiment of the transformative wellness resort. As the consulting partner, Blueshift delved into defining the overall layout and outlining key features.
The phase commenced with a strategic definition of the conceptual layout and key metrics underpinning the resort’s design. Blueshift carefully detailed the resort program, encompassing aspects relevant to hospitality, branded residences and communal facilities.
This included a detailed description of the Food and Beverage (F&B) facilities, leisure spaces, and wellness and personal transformation facilities. Each element was intricately woven into the fabric of the overall resort layout, ensuring a harmonious blend that resonated with the transformative experience envisioned in earlier phases.
Through this detailed exploration in Phase 5, Blueshift played a crucial role in translating the conceptual vision into a tangible and strategically aligned design for the transformative wellness resort. The outcome laid the groundwork for the subsequent phases, ensuring that the physical environment would serve as an optimal canvas for the transformative journey intended for the resort’s guests.
Phase 6: Business Plan and Valuation
After finalizing the concept and program with the client team, Blueshift proceeded to delve into the intricate details of formulating a comprehensive business plan, valuation, and sensitivity analysis for the transformative wellness resort.
A meticulous estimation of the required investment was performed, considering various components such as land acquisition, construction, Furniture, Fixtures, and Equipment (FF&E), Operating Supplies and Equipment (OS&E), pre-opening expenses, and more.
A USALI-format 10-year business plan was laid out, covering the different businesses inside the resort – hospitality, wellness programs, and real estate. Key assumptions were assumed for the topline, from room Occupancy and Average Daily Rate (ADR) to capture rates and average tickets for food & beverage (F&B), wellness programs, and other services.
In order to thoroughly assess operational costs, a detailed staffing and payroll plan was developed, and key cost drivers were identified to project departmental margins with the best accuracy possible.
The project’s valuation, including metrics such as Net Present Value (NPV), Internal Rate of Return (IRR), payback period, and a sensitivity analysis, further solidified the foundation for strategic decision-making.
Moreover, Blueshift framed equity participation models, ensuring that the financial structure aligned seamlessly with the overall goals and objectives of the promoter consortium. This comprehensive approach in Phase 6 provided a robust financial framework, crucial for the subsequent phases.
Phase 7: Implementation Roadmap
In the final phase, Blueshift translated the comprehensive strategy into an actionable workplan.
With defined areas for immediate attention, Blueshift outlined specific tasks and outputs, establishing a detailed timeline for implementation, bridging the gap between strategy and execution. Key leaders and participants were designated for each task, ensuring a well-coordinated effort. The entire plan underwent a thorough review to align with project objectives.
Simultaneously, Blueshift prepared a concise yet compelling project presentation, encapsulating the essence of the transformative wellness resort, to be used with different stakeholders, from potential investors and partners to transformative wellness professionals and organizations.
Conclusion: Charting New Waters with Blue Ocean Innovation
In the dynamic realm of personal transformation, the transformative wellness resort, shaped by Blueshift with the client team, and anchored in Blue Ocean principles, stands as a beacon of ground-breaking innovation. A key breakthrough lies in seamlessly intertwining hospitality, transformative wellness, and real estate components. Blueshift’s adept use of Blue Ocean tools reshaped industry norms, resulting in a transformative wellness destination that synergizes these elements in a way that goes beyond the ordinary. This resort isn’t just a place; it’s a testament to innovation, a distinctive haven, and a new wave in the vast ocean of wellness tourism.
Written by Filipe Santiago
April, 2023