Marketing Strategy Plan

Marketing Strategy Plan

Marriott Marketing Strategy Plan

Marriott's ability to synchronize the many branding initiatives that comprise the company's nineteen separate sub-brands need to focus on achieving the following four major initiatives to deliver the highest possible value. These recommended initiatives concentrate on growing top-line revenue whole at the same time sustaining the cultural value of exceptional service while at the same time monitoring customer lifetime value more accurately and concisely than ever before. For purposes of this paper the Marriott Marquis is New York, which is a global destination, is the basis of this analysis.

Mission statement

The existing statement is as follows: "Our commitment is that every guest leaves satisfied." Making this mission statement more supportive of the concept of continual improvement in the service delivered, the mission statement could read: "Our commitment is to pursue the ideal of delighting every guest, every visit." This brings an entirely higher level of intensity to the mission statement and makes every interaction with each gust a moment of truth for the Marriott brand.

Slogan

The existing corporate-wide Marriott Corporation slogan is "Spirit to Serve" and it reflects the fact that this hotel chain sees its continual investments in giving exemplary service to customers as its primary and most potent differentiator. It could be made more immediate and personable by saying "Spirit to Serve and Exceed Expectations" to make their unique value proposition more focused on delivering exceptional performance daily.

Vision Statement

The vision of continually transforming service into a lasting competitive advantage is critical for Marriott to survive against the onslaught of lower priced competitors and the consolidation in the industry. The suggested Vision Statement is as follows:

To consistently exceed our customers' expectations in all respects, including service, quality, cleanliness and trust. We are an organization that is exists to exceed customers' expectations with a passion unequaled in our industry.

SWOT Analysis

Strengths

Leadership position

The company is recognized as a leader in the global hospitality industry with more than 2800 properties spread across 69 countries. Marriott International is the third largest operator of hotels in the world, based on number of rooms. The company operates hotels in mid-scale, upscale, upper upscale and luxury segments. The company caters to both business and leisure travelers. With its vast portfolio of accommodation services, Marriott was able to achieve a 72% occupancy rate.

Sound manager-franchisor model

Marriott decided back in the early 1990s to separate ownership of hotel assets from management and franchising of brands. The result was a split of the company into Host Marriott and Marriott International. Today, Marriott focuses on investing in its brand, leaving real estate investing to third parties (e.g., Host Marriott, Sunstone, Diamondrock, etc.). This business strategy is a less capital-intensive model that generates higher average returns on assets than real estate-based models. Marriott's manager-franchisor model also ensures a steady fee stream. Under the fee-based model that Marriott pursues, ensuring a steady stream of new additions to the number of branded rooms under management or franchise agreement is critical to the company's earnings growth. Typically, Marriott earns a base fee of 3% of gross revenue from managed hotels and a fee of roughly 5% of room revenue for franchised hotels. The company's sound business model enables it to leverage its brand identity to achieve economies of scale, whose benefit the company passes on to its customers.

Unique distribution brand strategy

Marriott's 'Distribution Brand' Strategy offers something for every customer and, in the process, generates premium pricing. An underlying premise behind Marriott's brand strategy is to offer customers a hotel choice in as many locations as possible at as many price points as possible. Conceptually, Marriott believes that the same guest falls into a different customer profile depending on the nature of the trip taken. Marriott has a product for every price point chain-scale (as defined by Smith Travel Research) except for the lowest economy segment. The company's commitment to quality and steady brand building has resulted in a strong brand portfolio of hotels, vacation ownership and corporate housing brands that associate quality, dependability, integrity and trust with the company's services. In 2005, Fortune Magazine recognized Marriott as the most admired company in the lodging industry for the sixth consecutive year. The company's strong brand name and its unique brand strategy help the company to stay ahead of its peers.

Thought Leadership in Technology-Enabled Services

The company's increased focus on technology is also paying off, as Marriott bolsters its web-based services portfolio. The company's reservation and yield management systems have outperformed the industry for many years. Marriott has the largest, fastest, most user-friendly web site in the industry, Marriott.com, which attracts almost six million visitors every month. Furthermore, the company is able to provide the industry's lowest cost per reservation and lands cross selling opportunities that bring almost $400 million worth of annual revenue. Customer demand for technology is rising as well, and the company is responding to this demand. With high-speed internet access in virtually all its hotels, and nearly 2000 hotels offering Wi-Fi, Marriott leads the industry in keeping its customers connected.

Weaknesses

Over dependence on the U.S. market

One of the key weaknesses of the group has been its over dependence on the U.S. market. The U.S. region accounted for around 90.4% of the group's total revenues. This over dependence has hurt the group severely, especially at time of slow economy. Furthermore, the company has only a tiny presence in the vast growing Asian market. This lack of geographic spread in its revenues is a major weakness for the company.

Plagued by a large number of lawsuits