the marriott: it's core strategies & more

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By: Justin, Ari, Emily, and Chris

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Page 1: The Marriott: It's Core Strategies & More

By: Justin, Ari, Emily, and Chris

Page 2: The Marriott: It's Core Strategies & More

Six-Part Strategy Next Generation Travelers- Understand and attract Gen X,Y, and Future

Guests

Brand Distinction- Invest in innovation and differentiation

Portfolio Power- Build loyalty with the most compelling family of brands

Technology Leadership- Empower connections for guests and associates

Owner Preference- Generate Value for our hotel owners and franchisees

Global Growth- Expand footprint and profitability

Page 3: The Marriott: It's Core Strategies & More

StrengthsOnline Resourcesi.e.- Website• Contains specific details regarding history, news, events,

and other important information• Ability to book reservations directly on the site

Quality“Customers associate quality with Marriott. They expect

it and will pay for it. Managers must see that customers receive that quality in every area…” – J.W. Marriott

Part of the “Marriott Way”- Corporations core values

Page 4: The Marriott: It's Core Strategies & More

WeaknessesLarge variance in hotel brands Marriott Resort v/s Springhill Suites by MarriottCan lead to misunderstanding from the customer as to

what is being received

Limited Market ShareA lot of competition leads to a small percentage of

market shareMarket Share- The portion of a market controlled by a

particular company

Page 5: The Marriott: It's Core Strategies & More

Segmentation and Targeting

- North American Full-Service Lodging

For consumers seeking a high-end hotel experience*Within continental USARenaissance Hotels brand

J.W Marriott brand

Autograph & Edition brand

Page 6: The Marriott: It's Core Strategies & More

Segmentation and Targeting

- North American Limited-Service Lodging- *Business travelers within continental USA- Less expensive rates & longer stays- Highlight amenities

Courtyard brandFairfield InnSpringhill SuitesResidence Inn

Page 7: The Marriott: It's Core Strategies & More

Segmentation and Targeting

- International Lodging ** Business travelers outside continental USA

J.W Marriott brand

Courtyard

Fairfield Inn

Page 8: The Marriott: It's Core Strategies & More

Segmentation and Targeting

- Luxury Lodging Targets consumers worldwideFor consumers seeking a lavish hotel experience

Ritz-Carlton brand

Bulgari Hotels & Resorts

Page 9: The Marriott: It's Core Strategies & More

Segmentation and Targeting

- Timeshare ** Target consumers with disposable income

Marriott Vacation Club

Fractional Ownership Residential Properties

Halted timeshare brand expansion

Page 10: The Marriott: It's Core Strategies & More

Distribution/ Product OfferingsMarriott has been expanding its investment to either

launch new brands or expand the existing onesOctober of 2012, obtained the Gaylord brand and hotel

management company from Gaylord Entertainment Company, which is now called Ryman Hospitality Properties (Ryman Hospitality) -$210 million.

Still own Gaylord hotels, Marriott manages under the Gaylord brand under long-term management agreements.

This allowed them to add four more hotels and approximately 7,800 rooms in North America.

December 2012, also took over the management of another hotel owned by Ryman Hospitality also, The Inn at Opryland- about 300 rooms.

Page 11: The Marriott: It's Core Strategies & More

Distribution/ Product OfferingsBeginning of 2011, entered into joint ventures with

AC Hotels-towards end of 2012, 79 AC Hotels by Marriott properties in Spain, Italy, France and Portugal.

Another segment called, The Autograph Collection, launched in 2010 – includes collection of 24 hotels with 6,609 rooms.

In addition to these, started EDITION hotels in Istanbul, Turkey in 2007 and announced to open hotels in London in 2013, Miami Beach and New York in 2014, Sanya, China and Gurgaon, India in 2015, and Abu Dhabi in 2015

Several more around the world under works

Page 12: The Marriott: It's Core Strategies & More

Distribution/ Product Offerings

Besides adding these new brands- company has engaged in a process of expanding its image around the world.

Opened 122 properties, which totaled 27,059 rooms, within all the brands in 2012.

Marriott has also added three residential properties during the year of 2013.

Page 13: The Marriott: It's Core Strategies & More

Distribution/ Product OfferingsThe company's development channel of hotels under

construction, awaiting renovation or approved for development, grew to be more than 130,000 hotel rooms in 2013.

Have presence in a bunch of different types of segments: luxury, upper moderate, moderate and lower moderate price segments.

Luxury segment: Ritz-Carlton, JW Marriott and Bulgari Hotels

Upper moderate-price level: Marriott Renaissance, SpringHill Suites and Courtyard

Fairfield Inn competes in the lower moderate-price level. In addition-Marriott has brands like Renaissance,

TownePlace, Marriott Vacation Club and Grand residences

Page 14: The Marriott: It's Core Strategies & More

Distribution/Pricing

Page 15: The Marriott: It's Core Strategies & More

Price-Parity between online prices and prices offered

not online was a concern for many customers.-The solution to this problem was their Parity

Guarantee plan which offered customers the same price for the same type of room across the entire franchise

-Total Trip Pricing was an attempt to be more honest and straightforward about the cost of one room

Page 16: The Marriott: It's Core Strategies & More

IMC-2011 marked the first year that Marriott had

promoted it’s Fairfield Inn and Suites in a way other than a written ad

-Marriott uses two different Twitter handles, “Marriott Hotels” and “Marriott Internat’l” both of which they use to interact with customers, promote deals and take recommendations.

-Marriott’s latest ads promote their new “Travel Brilliantly” slogan which attempts to bring travel to the future.

Page 17: The Marriott: It's Core Strategies & More

ConclusionThank You!Q & A