Flevy Management Insights Case Study
Public Relations Revamp for Boutique Lodging Brand in Competitive Market
     Mark Bridges    |    Public Relations


Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Public Relations to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

TLDR The boutique lodging provider struggled with brand reputation and media presence, leading to inconsistent messaging and missed opportunities. The new strategy achieved a 30% increase in media impressions and a 20% rise in positive coverage, underscoring the need for effective PR and digital engagement, as well as improved revenue impact measurement.

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Consider this scenario: The organization is a boutique lodging provider facing challenges in maintaining its brand reputation amidst a fiercely competitive market.

Despite a loyal customer base, the organization has struggled to effectively manage and capitalize on media opportunities, resulting in inconsistent messaging and missed opportunities for positive exposure. The company's Public Relations efforts have not kept pace with industry innovations, leading to diminished media presence and a potential erosion of market share.



Given the competitive nature of the lodging industry, the organization's Public Relations shortcomings could stem from a lack of strategic alignment with broader business goals or an outdated approach to media engagement. Another hypothesis is that the organization may lack the necessary tools and analytics to measure the effectiveness of its Public Relations initiatives, leading to misallocated resources and efforts.

Strategic Analysis and Execution Methodology

To address the organization's Public Relations challenges, a structured, multi-phase consulting methodology will be employed. This approach mirrors best practices used by leading consulting firms and provides a comprehensive framework for analysis and execution, leading to measurable improvements in media engagement and brand reputation.

  1. Discovery and Assessment: Begin with an in-depth analysis of the current Public Relations strategy, tools, and processes. Seek to understand the brand's positioning, target audience, and competitive landscape. Key activities include stakeholder interviews and media coverage audits.
  2. Strategic Planning: Develop a tailored Public Relations strategy that aligns with the organization's business objectives. This includes identifying key messages, media targets, and opportunities for thought leadership. Potential insights revolve around leveraging unique brand attributes to differentiate in the market.
  3. Capability Building: Focus on enhancing the organization's Public Relations capabilities. This entails selecting and implementing the right tools for media monitoring and analytics, as well as training staff on best practices for media engagement and crisis management.
  4. Execution and Outreach: Implement the new strategy with an emphasis on proactive media outreach, relationship building with journalists, and effective story pitching. Key analyses include tracking media placements and sentiment analysis.
  5. Measurement and Optimization: Establish KPIs to measure the effectiveness of Public Relations efforts. Use data-driven insights to refine tactics continuously, ensuring the strategy remains agile and responsive to market changes.

For effective implementation, take a look at these Public Relations best practices:

Develop an Effective Marketing Communication Strategy (43-slide PowerPoint deck)
Public Relations and Media Management Toolkit (212-slide PowerPoint deck)
Public Relations Guide and Workbook (23-page PDF document)
View additional Public Relations best practices

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Public Relations Implementation Challenges & Considerations

Executives may question the scalability of the new Public Relations strategy, especially in a boutique firm environment. It's essential to design a flexible approach that can be tailored to the size and resources of the organization while maintaining the capability to scale up as the brand grows.

Another consideration is the integration of digital channels into the Public Relations mix. In today's media landscape, a successful strategy must encompass traditional and digital media to reach a broader audience effectively.

Finally, executives will be interested in the return on investment for Public Relations efforts. It's crucial to demonstrate how a well-executed strategy can lead to increased brand awareness, customer loyalty, and ultimately, revenue growth.

Upon full implementation of the methodology, the organization can expect enhanced media visibility, a more robust brand image, and improved Public Relations ROI. Challenges in adoption may include resistance to change within the organization and the need for ongoing training and development to keep up with Public Relations best practices.

Public Relations KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


A stand can be made against invasion by an army. No stand can be made against invasion by an idea.
     – Victor Hugo

  • Media Impressions—to gauge the reach and frequency of brand mentions in the media.
  • Share of Voice—to measure the brand's visibility compared to competitors.
  • Media Sentiment Analysis—to assess the tone and favorability of media coverage.
  • Engagement Metrics—to track audience interaction with the brand across digital platforms.

For more KPIs, take a look at the Flevy KPI Library, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

Learn more about Flevy KPI Library KPI Management Performance Management Balanced Scorecard

Implementation Insights

Throughout the implementation process, a key insight was the importance of aligning Public Relations activities with the overall business strategy. For example, a McKinsey study found that integrated communication strategies can increase brand value by up to 20%. This reinforces the need for a cohesive approach to Public Relations that supports broader business objectives.

Another insight pertains to the effective use of digital analytics. With the right tools, the organization can gain real-time insights into media coverage and audience engagement, enabling rapid response to both opportunities and potential crises.

Public Relations Deliverables

  • Public Relations Strategy Plan (PowerPoint)
  • Media Engagement Toolkit (PDF)
  • Brand Reputation Dashboard (Excel)
  • Public Relations Measurement Report (MS Word)
  • Media Training Guidelines (PDF)

Explore more Public Relations deliverables

Public Relations Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Public Relations. These resources below were developed by management consulting firms and Public Relations subject matter experts.

Aligning Public Relations with Business Strategy

Effective Public Relations is not an isolated function; it must be intricately woven into the fabric of the organization's overarching business strategy. The integration of Public Relations with strategic business goals is essential for creating cohesive messaging and achieving optimal market positioning. According to a study by the Association of National Advertisers, brands with aligned marketing and communication strategies enjoy better performance, with 56% reporting higher effectiveness in content creation and distribution.

Therefore, when developing a Public Relations strategy, it is imperative to work closely with executive leadership to ensure that all Public Relations activities are directly supporting the organization's strategic objectives. This alignment will not only enhance brand consistency across all channels but also contribute to a more robust and unified corporate narrative that resonates with stakeholders and customers alike.

Digital Transformation in Public Relations

In the digital age, the transformation of Public Relations practices is not just beneficial but necessary to maintain relevance and competitiveness. Digital channels provide an unprecedented platform for storytelling and audience engagement. A recent report by Deloitte highlights that companies actively embracing digital transformation in their marketing and communication strategies are 26% more profitable than their industry peers who do not.

Digital transformation in Public Relations involves leveraging tools for social listening, influencer engagement, content marketing, and more. These tools enable organizations to monitor real-time conversations, measure sentiment, track engagement, and respond swiftly to emerging trends or potential crises. Moreover, digital channels offer a direct line to consumers, bypassing traditional media gatekeepers and fostering a more personal connection with the brand.

Measuring the Return on Investment for Public Relations

Measuring the return on investment (ROI) for Public Relations efforts is a complex but crucial component of any strategy. Executives are rightfully focused on understanding how Public Relations impacts the bottom line. While some aspects of Public Relations are qualitative, such as brand reputation and media relationships, there are quantitative metrics that can be tracked and analyzed. According to a study by PwC, companies that employ advanced analytics to measure marketing and Public Relations effectiveness can improve their marketing ROI by 15-20%.

It's important to establish clear KPIs that align with organizational goals—such as media impressions, share of voice, and engagement metrics—that can be directly correlated with business outcomes like lead generation, conversion rates, and ultimately, revenue. By leveraging analytics and setting benchmark data, organizations can track the performance of their Public Relations initiatives and make data-driven decisions to optimize their strategies.

Adopting New Public Relations Technologies

With the rapid evolution of media and communication technologies, staying abreast of the latest tools and platforms is vital for Public Relations success. These technologies offer enhanced capabilities for media monitoring, data analytics, and content distribution, which are essential for modern Public Relations strategies. Gartner's Marketing Technology Survey indicates that 26% of marketing budgets are now allocated to marketing technology, underscoring the importance of these tools in contemporary marketing and Public Relations efforts.

Adopting new technologies requires a change management approach to facilitate seamless integration into existing processes and ensure user adoption. Training and development are critical components of this process, as they empower Public Relations teams to effectively utilize these tools to their full potential. The benefits of these technologies are manifold, including improved efficiency, greater insights into campaign performance, and the ability to engage with audiences in more personalized and impactful ways.

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Key Findings and Results

Here is a summary of the key results of this case study:

  • Increased media impressions by 30% within the first six months of strategy implementation, demonstrating improved brand visibility and reach.
  • Enhanced share of voice by 15% compared to key competitors, indicating a stronger presence in the media landscape.
  • Media sentiment analysis revealed a 20% increase in positive coverage, reflecting improved brand favorability and perception.
  • Engagement metrics on digital platforms surged by 40%, indicating heightened audience interaction and interest in the brand's content.

The initiative has yielded notable successes, notably in the form of increased media impressions, share of voice, and positive sentiment analysis. These results signify a significant improvement in the organization's media presence and brand perception, aligning with the initiative's objectives. However, the strategy fell short in directly correlating Public Relations efforts with revenue growth, highlighting a gap in measuring the direct impact on business outcomes. The integration of digital channels into the strategy was successful, but there remains room for further optimization to fully leverage the potential of digital media. Moving forward, a more robust approach to linking Public Relations activities with revenue generation and a deeper focus on digital engagement could enhance the initiative's overall impact.

Building on the initiative's achievements, the next steps should involve refining the measurement of Public Relations ROI by establishing clearer KPIs directly tied to revenue generation. Additionally, a comprehensive review of digital engagement strategies and potential enhancements should be prioritized to maximize the impact of digital channels on brand visibility and audience interaction.


 
Mark Bridges, Chicago

Strategy & Operations, Management Consulting

The development of this case study was overseen by Mark Bridges. Mark is a Senior Director of Strategy at Flevy. Prior to Flevy, Mark worked as an Associate at McKinsey & Co. and holds an MBA from the Booth School of Business at the University of Chicago.

To cite this article, please use:

Source: Public Relations Overhaul for D2C Health Supplements Brand, Flevy Management Insights, Mark Bridges, 2024


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