This report discusses the corporate mission of Marriott International and the defining features of their new product, Marriott Blues. It also explores the target market, pricing strategy, and brand effectiveness.
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Running head: MANAGEMENT Hotel Management Name of the student Name of the university Author Note:
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2 MANAGEMENT Table of Content Context:......................................................................................................................................3 Corporate Mission..................................................................................................................3 Defining features of the new product.....................................................................................3 Brand Effectiveness...............................................................................................................4 Need:..........................................................................................................................................5 Target Market.........................................................................................................................5 Basic Demographics...............................................................................................................5 Other Target Market...............................................................................................................6 Want or Need.........................................................................................................................7 Pricing:.......................................................................................................................................7 Costs.......................................................................................................................................7 Pay..........................................................................................................................................8 Preferences.............................................................................................................................8 Strategy for Pricing................................................................................................................9 References................................................................................................................................10
3 MANAGEMENT Context: Corporate Mission Before directly moving into the main requirements of the report it is better to provide a short yet compact details about Marriott International Company. The Marriott International is an American multinational diversified hospitality company that manages as well as engagesitselfinfranchiseestrategyforestablishinganumberofdifferentkindsof hospitality, hotel and lodging facilities (marriott.com, 2019). The company which was founded by J. Willard Marriott is a public limited company whose main products and services belonging to the hotels and the hospitality industry (marriott.com, 2019). This includes different kinds of the hotels and resorts. The company currently is spread across more than 6300 different locations (marriott.com, 2019). The mission of the organization is to become a premiere provider and the facilitator of the leisure and vacation experiences in the world. On the other hand, the other mission of the company is to enhance the lives of the customers by creating and enabling the unsurpassed vacation and leisure experiences (marriott.com, 2019). The corporate mission of the company thus enables the organization to ensure the best of the company in a proper and effective manner. Defining features of the new product The management of the business organization has been in talks with its stakeholders for quite a long time back about the possibility of creating a new product to meet the changingdemandsofthecustomersandalsothechangingdemandsofthebusiness organizations to ensure the success of the business accordingly (Abrate & Viglia, 2016). The management of the company has revealed its ambitious strategic plans to elevate the brand into the premium end of the international luxury market of hotels. The brand clearly aims to become a new global reference in international luxury hotels in the coming few years. The
4 MANAGEMENT program to be undertaken has been named as“Marriott Transformed”. The main aim of the product will be to make JW Marriott one of the first five luxury hotel brands in the global hotel and hospitality industry. The new product will be creating unique contemporary luxury hotels in the most attractive and sough after destinations of the globe. These hotels will be created by the mix of the US origin culture of the business organization and the local culture of the host country of the business organization. The blending of both the cultures in the creation of the new brand will make the product more attractive to the different kinds of the people who will be visiting them and will be using the services offered by these brands. The new brand will be named“Marriott Blues”. The new product is basically the collection of a numberof uniquelegendarypropertiestobeused forthepurpose ofhotelservices (marriott.com, 2019). These properties of the company will be destined for the travellers who wishes to experience the ultimate hotel experience. According to, dos Santos, Méxas & Meiriño (2017) the product will be marketed internationally by means of attractive advertisements which will feature the endorsement of international advertisement agencies to make the most of the market. The pricing of the new brands and the services will also be in order of the new demands and will be strategically fixed after a thorough analysis of the market which will involve the competitive analysis of themarketandwillensuretheproperimplementationofthebusinessstrategy.The implementation of the strategy will ensure the best of the organization. Brand Effectiveness The management of Marriott group of hotels has worked relentlessly in order to redefine different kinds of the elements of the new brand. The major focus of the company is tooffer newluxuryservicesand standardswithspecialfoodandbeverageoffering, innovation and design offering along with the likes of the development of different kinds of the unique spas. According to, Enz, Canina & van der Rest (2015) this will ensure a
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5 MANAGEMENT significant investment in staff training in order to upgrade the different kinds of the service levels of the business. The network of the company is being completely reviewed through the means of the organizational changes. The changes are being made to ensure the success of the business organization in the future and develop the organization to fit into the different types of the demands made by the customers. The main target of the company is to increase the brand effectiveness of the organization. The enhancement of the different kinds of the services, pushing in marketing and promotion, offering the customers with brand new products has been the major reason behind the enhancement of the brand effectiveness of the business organization. The success of the brand will thus help the business to ensure the best services accordingly. Thus it can be said the enhancement of the brand name of JW Marriott can work in favour of the hotel and make it one of the best hotels of the globe. Need: Target Market The target market of a company is one of the most important elements that needs a consideration as each and every business organization needs to have a proper target market to market and promote its goods and services. The target market for Marriott International for the new product will be basically the new and opening markets especially in the developing countries of South East Asia and a number of Middle Eastern countries especially Qatar (Fraj, Matute & Melero, 2015). The management of the company has put its focus especially in Qatar because of the upcoming football tournament(Fifa 2022 World Cup)to be hosted by the country (marriott.com, 2019). Being the host nation the country will experience a major sprout in the number of visitors. The following reason makes Qatar the most important target market.
6 MANAGEMENT Basic Demographics The people who are the major customers of the product generally satisfy their needs and the demands with the business organization. The major concept of the following product is basically not limited to the physical objects but it is capable of ensuring the nonphysical traits of the business which are the major characteristics of the business organization. The nature of the products are unique and exclusive and are designed to attract the people (Lee, 2015).The new product will continue with the inclusion of some old brands like Marriott vacation club international, Marriott’s time share resort division, and focuses on creating customer experiences. Customers remember vacation experiences. Marriot differentiates itself by creating guest experiences (Melissen et al. 2016). For example a water rafting trip foritsUtahproperty.Marriottusestheresourcesofthedestinationtocreateguest experiences the guest member for lifetime. Therefore it can be said that the demographics of the product includes much more than the physical goods and services. The consumers generally decide on which events to experience and what kinds of tourist destination to visit. Another major consideration on the demographics of the new product is the analysis of the demands and taste of the customers accordingly. The product must adhere to all the different demands of the customers which can be the only criterion for the success and sustainability of the products. Other Target Market As said earlier that Qatar will be the main focus for the management of the business organization for the future development of the business market. Apart from Qatar the company has plans to operate more hotels in China, Japan and countries like Vietnam and Thailand to tap the ever expanding market of the developing countries and increase the profitability of the business (marriott.com, 2019). The shift of the company towards the East Asian and South East Asian countries has been mainly because of the different kinds of the
7 MANAGEMENT upcoming events of the business (Melissen et al. 2016). The countries like Japan and China will receive special focus because of the upcoming summer and winter Olympics and also as a result of the Eastern Policy of the Company. The management of the company has been trying to increase its foothold in the Asian countries for a long time to ensure their growth of business in the developing economies of Asia. The company has also increased its business in India and has turned the market into one of the most profitable for them. Want or Need The change management of the company is being implemented by the management of the company in order to meet the changing needs of the people every now and then. The providence of unlimited luxury and the ability of the people to spend unlimited amount has prompted the management of the companies to offer the best in class services and goods to the customers of the business organization. The organization has thus started to provide the best services and make the most of the business in order to ensure the best services. The major needs of the people is thus to enjoy a quality experience or a quality stay from the new products and services. Pricing: Costs As mentioned earlier, the cost of the product has been to ensure the success of the business in a proper and successful manner. The cost of the product will basically depend on the prices of the similar range of products that are offered by the competitors of JW Marriott. The JW Marriott will have to analyse the market and find out and research on the appropriate cost for the new product (Nieves & Diaz-Meneses, 2016). The management of the company can use the niche market strategy to fix the cost for some of the brands offered under the product category. The use of the niche market strategy will ensure less expense and more
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8 MANAGEMENT profits for the business organization. The fixed cost of some of the brands under the new product will be decided by the management whereas there will be some specific set of brands under the new product like that of the food offered by the new chain of restaurants which will have a variable cost. The variable set of costs will ensure the success of the business in a proper and efficient manner. The Hilton, Hyatt and Taj group of hotels have made a great presence in the said market and thus the management of the hotel must carry out an effective competitive analysis to get the best out of the market. Pay The payment of the products refer to the specific amount of price that the customers are willing to pay for the new product. The payment of the customers for the new products will clearly depend on the quality as well as the quantity of the products. According to, Nieves & Quintana (2018) the quality of the services will be one of the major considerations for the selection of the price of the organization. The major aims of the organization is to ensure the offering of the best price to the customers. The offering of the best price will help in the growth of the market and the loyalty of the customers. Preferences The modern market of the globe has seen a major transformation due to the process of businessglobalization.Theglobalizationprocesshasthusensuredthebestofthe organization in a positive manner. The new product that is to be offered by the organization has to meet each and every demand of the business organization and has to be one step ahead of the other offerings of other companies. The new preferences of the customers include best cuisine, luxurious stay, discount on spa, gym sessions, yoga sessions, local cultural delights and events and many more as such (marriott.com, 2019). The management of JW Marriott has to ensure the best in the same manner to satisfy and fulfil the needs of the customers.
9 MANAGEMENT Strategy for Pricing The management of the business has selected the niche marketing strategy as well as the open marketing strategy for the different kinds of the brands to be offered by them under the new“Marriott Blues”product line. The strategies will be the major say for the success of the brand in the near future and will also ensure the stability of the company for the future.
10 MANAGEMENT References Abrate, G., & Viglia, G. (2016). Strategic and tactical price decisions in hotel revenue management.Tourism Management,55, 123-132. dos Santos, R. A., Méxas, M. P., & Meiriño, M. J. (2017). Sustainability and hotel business: criteria for holistic, integrated and participative development.Journal of cleaner production,142, 217-224. Dzhandzhugazova, E. A., Blinova, E. A., Orlova, L. N., & Romanova, M. M. (2016). Innovationsinhospitalityindustry.InternationalJournalofEnvironmentaland Science Education,11(17), 10387-10400. Enz, C. A., Canina Ph D, L., & van der Rest Ph, D. (2015). Competitive hotel pricing in Europe: An exploration of strategic positioning. Fraj, E., Matute, J., & Melero, I. (2015). Environmental strategies and organizational competitivenessinthehotelindustry:Theroleoflearningandinnovationas determinants of environmental success.Tourism Management,46, 30-42. Hotels & Resorts | Book your Hotel directly with Marriott Bonvoy. (2019). Retrieved from https://www.marriott.com/default.mi Lee, S. K. (2015). Quality differentiation and conditional spatial price competition among hotels.Tourism Management,46, 114-122. Melissen, F., Cavagnaro, E., Damen, M., & Düweke, A. (2016). Is the hotel industry prepared tofacethechallengeofsustainabledevelopment?.JournalofVacation Marketing,22(3), 227-238.
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11 MANAGEMENT Nieves, J., & Diaz-Meneses, G. (2016). Antecedents and outcomes of marketing innovation: An empirical analysis in the hotel industry.International Journal of Contemporary Hospitality Management,28(8), 1554-1576. Nieves, J., & Quintana, A. (2018). Human resource practices and innovation in the hotel industry:Themediatingroleofhumancapital.TourismandHospitality Research,18(1), 72-83. Nieves,J.,Quintana,A.,&Osorio,J.(2016).Organizationalknowledge,dynamic capabilitiesandinnovationinthehotelindustry.TourismandHospitality Research,16(2), 158-171. Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017).Human resource management:Gainingacompetitiveadvantage.NewYork,NY:McGraw-Hill Education. Oyner, O., & Korelina, A. (2016). The influence of customer engagement in value co- creation on customer satisfaction: Searching for new forms of co-creation in the Russian hotel industry.Worldwide Hospitality and Tourism Themes,8(3), 327-345. Úbeda-García, M., Claver-Cortés, E., Marco-Lajara, B., García-Lillo, F., & Zaragoza-Sáez, P. C. (2018). Continuous innovation in the hotel industry: The development of organizational ambidexterity through human capital and organizational culture in Spanishhotels.InternationalJournalofContemporaryHospitality Management,30(12), 3609-3631. Viglia, G., Mauri, A., & Carricano, M. (2016). The exploration of hotel reference prices under dynamic pricing scenarios and different forms of competition.International Journal of Hospitality Management,52, 46-55.