the marriott: it's core strategies & more
TRANSCRIPT
By: Justin, Ari, Emily, and Chris
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
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
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
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
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
Segmentation and Targeting
- International Lodging ** Business travelers outside continental USA
J.W Marriott brand
Courtyard
Fairfield Inn
Segmentation and Targeting
- Luxury Lodging Targets consumers worldwideFor consumers seeking a lavish hotel experience
Ritz-Carlton brand
Bulgari Hotels & Resorts
Segmentation and Targeting
- Timeshare ** Target consumers with disposable income
Marriott Vacation Club
Fractional Ownership Residential Properties
Halted timeshare brand expansion
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.
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
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.
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
Distribution/Pricing
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
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.
ConclusionThank You!Q & A