Marriott International's branding strategy and competitive positioning initiatives

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.

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

The company is involved in a large number of lawsuits with industry players such as CTF Hotel Holdings and others. These lawsuits claim issues related to breach of duties, mismanagement, unfair pricing and competitive practices and misrepresentation with respect to procurement issues involving the company.

Unstable relationships with owners and franchisees

Marriott's relations with owners and franchisees have been unstable at times. Since owners and franchisees provide the bulk of the investment capital for new Marriott unit growth, it is critical that the company maintains solid relations with these groups. Even by the company's management's own admission, its communications with owners and franchisees have not always facilitated a constructive dialogue. While owners and franchisees acknowledge that Marriott has done an impressive job of maintaining and investing in its brands, they say that the company is not always appropriately concerned about the needs of owners, franchisees, and even, in some cases, guests.

Though, according to the Marriott senior management, the company appears to have recognized the importance of maintaining productive and constructive relations with owners and franchisees, such unfavorable reputation gives the company a negative image among existing and future owners and franchisees. This could in turn affect the company's future growth prospects.

Opportunities

Expansion into China and India

Reports and research indicate that travel and tourism in India and China is expected to grow at twice the