Business Research Design: Marriott's Customer Value Proposition

This report delves into the business research design for enhancing Marriott's customer value proposition within the hospitality industry. It begins with an introduction to the industry's growth and Marriott's position, followed by an analysis of the challenges the company faces, including changing customer behavior, innovation pressures, and labor shortages. The report then explores business enhancement strategies, focusing on digital initiatives, customer engagement, and expansion plans. A key component involves the application of three selected Harvard Business Review (HBR) articles to improve Marriott's customer value proposition, with detailed explanations on how the research strategies and techniques discussed in these articles can be utilized. The report also includes a customer value proposition framework, and concludes with a discussion of how to implement these findings to improve Marriott's market position and customer satisfaction. The report references various sources to support the analysis, including industry reports and Marriott's financial data.

Running head: BUSINESS RESEARCH DESIGN
BUSINESS RESEARCH DESIGN
Name of the student
Name of the university
Author note

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Table of contents
Introduction......................................................................................................................................2
Industry and company......................................................................................................................2
Business enhancement.....................................................................................................................5
HBR article 1...................................................................................................................................6
HBR article 2...................................................................................................................................8
HBR article 3...................................................................................................................................9
Current customer value proposition...............................................................................................11
Conclusion.....................................................................................................................................12
Reference list and bibliography.....................................................................................................13

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Introduction
Current growth in Hospitality Industry has impacted on enhancing business opportunities
in the Australian market, it has become the vital contributor in the Australian economy (Ratten et
al. 2016). Being the part of this industry from last five years, the customer trends, as well as
different sustainable initiatives adopted by the company, have been discussed by me in the study.
The continuous innovation initiatives in this sector, the sector has established its strong impact
on the socio-economic situation in Australia. The Hospitality Industry can be considered as the
most productive sector in the 20th century based on the statistical information (Priem, Wenzel &
Koch 2018).
In case of defining the benefits of the products and services of the company, value
proposition plays a significant role. In the current competitive business environment, analyzing
the value proposition of an organization can assure customer satisfaction as well as positive
growth in the workplace. In the introduction of valid brand value in the Hospitality Industry,
Marriott has established its sustainable position in the market. The study has highlighted the
emerging issues in the industry and has tried to address the problems by linking the issues with
the below articles.
Industry and company
The Hospitality Industry in Australia has shown the rapid growth within the last few
years. It can be said that within the last five years, increasing customer acceptance in the sector
has enhanced the online business opportunities. High demands for industry products as well as
changing consumption trends of the customers, has boosted the contribution of hospitality in the
Australian market. It is true that due to changing living standard of the customers, people have

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become highly health-conscious. High interest of people towards the physical activities has
influenced the demand of this industry products in the market. Analyzing the growth of
Hospitality Industry in the year 2016, the online business opportunities have played a
significant role in ensuring noticeable growth in the sector. It has been identified that almost 1.7
billion US dollar transaction has been done in this sector in the same year. Following the
emerging growth in this sector, it can be assumed that within 2025, the revenue will reach $167
billion (Hotelmanagement.net 2019). It is true that health consciousness as well as rising
discretionary income, has influenced the growth in this sector.
Marriott is a famous hotel chain, which was developed its largest business chain in the
global market. In the year 1957, Marriott was introduced in the Hospitality Industry
(Marriott.com 2019). In order to inspire the global service sector, the company has introduced
innovative as well as comfortable products in the market. It has been identified by me that the
innovative services as well as high market share, the company has introduced a wide range of
products in the market.
Analyzing the growth of the company over the last five years, it has been identified that
generating the $3628 million annual revenue the company has developed its competitive position
in the Australian market. It is true that in the year 2017, the record revenue of the company has
increased by 10% (Hotelmanagement.net 2019). Although the company has brought
improvement in Australian economy from last five years, it is also true that due to some external
influences, it has become challenging for the company to ensure its sustainable position in the
competitive business environment.
Challenges faced by Marriott

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 It is true that Marriott can be considered as the old struggler in the hospitality industry. It
cannot be denied that changing consumption behavior of the customers has driven their
interest in experiencing luxury services. However, the sector still struggling as most of
the customers still not want to invest in this sector.
 Rapid innovation and political as well as security challenges have become the important
concern in Australian hospitality sector.
 The changing expectation of customers and pressure for introducing innovation has
increased market struggle.
 Skilled labor shortage as well as high employee turnover rate has impacted negatively on
the industrial growth (Hotelmanagement.net 2019).
Challenges faced by Hospitality Industry in Australia
 Rapid innovation as well as changing needs of the customers in this sector has become
one of the critical concern for this industry
 New program development challenges as well as lack of innovation acceptance has made
the market stiff for Marriott.
 In case of controlling the inventory management system in a particular industry has
become one of the essential concerns (Hardyman, Daunt & Kitchener 2015).
 Innovative projects have brought complexity in the larger scale, which has increased
pressure on the management. Increasing labor cost as well as high turnover can be
considered as the critical challenges faced by the Marriott.

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Business enhancement
In the rising demand as well as changing socioeconomic status of the customers, has
brought significant impact on the Australian Hospitality Industry. Analyzing the emerging
situation of Marriott Inc. in the Australian market, it has been identified that in the year 2019, the
financial result of the company has been introduced. In which it has been mentioned that
reported revenue of the company is $2.2 billion (Hotelmanagement.net 2019). Higher business
revenue of the company has reflected on the strong customer generation as well as increasing
investment in different sector. In case of continuing this double-digit growth in the hospitality
sector, it has increased its market share in the third quarter (Marriott.gcs-web.com2019). In order
to increase the sale margin, the company has entered in the digital sector. The online business
practices, during the quarter have helped Marriott Digital to acheive high sales rate as well as
increasing numbers of growth opportunities in the market. In terms of making the active
collaboration with the celebrities, the company has launched its business website in digital field,
which has helped in case of reaching the large numbers of customers.
It has been identified that by increasing the guest capacity, the company aims to increase
its profitability rate from the global market. In case of maintaining the consistent growth of 5%
the company aims to increase its customer rate. I believe, through the introduction of Central
Sydney planning strategy, the company ensure the adoption of new project by Australian citizen.
Analyzing the emerging growth in this sector, it can be assumed that within coming 2020, the
company will increase its market share near about 30% (Marriott.gcs-web.com2019). In order
to expand its business, Marriott has reached the expansion level 33.1 million to 34.9 million.
Raising the 10% off market share through grabbing the attention of international customers,
Marriott aims to ensure its sustainable position in the market (Marriott.gcs-web.com2019).

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It is true that introducing innovative designs through different social media platforms, the
company has gained large numbers of customer attention. With the strong corporate mission for
bringing innovation as well as inspiration, the company has aimed to involve every individual
athlete to achieve the strategic goal of the company. By emphasizing a high level of innovation,
Marriott has established its dominant position in the Global Hospitality Industry. In order to
introduce its products in the market, Marriott has launched its product development strategy
through digital platforms. By ensuring the brand reliability in the market, the company aims to
satisfy customers' needs. Marriott Company has entered with the ‘Winner mindset’ by using both
the online and offline marketing strategy which has helped the company to gain tremendous
market share.

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Customer value proposition
Target customer
Offering
Job to be done
Profit formula
Cost structure
Revenue model
Margin model
Resource velocity
Key resources
Technology
Partnerships
Employees
Products and services
Brand
Key processes
Norms
Metrics and rules
Operational processes
Figure: Elements of successful business
(Created by author)
Business elements play the significant role in terms of developing a powerful business
model. In case of ensuring the business enhancement, it is important for the company to focus on
identifying the strategic circumstances for introducing positive changes in the market.
 The company needs to focus on responding the rapid changes in this sector.

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 Proper competitive analysis technique needs to be adopted by the company.
In case of developing new business model, the company needs to focus on executing its
strategic plan. The company can also focus on adopting slow growth strategy for capitalizing its
business opportunities.
HBR article 1
The customer value proposition has become a widely used term in the current business
scenario. In order to provide superior value, the value proposition initiative of the organizations
offer benefits to the customers (James, Narus & van Rossum 2006). In case of reducing the cost
as well as delivering the standard quality of services to the customers, the companies focus on
providing luxury services to the customers. In the article, three types of value propositions have
been highlighted, which are all benefits, resonating focus and favorable points of differences.
In this article, it has been mentioned that in the case of generating the value, it is
essential for the organization to focus on developing a strong relationship with the suppliers. In
case of establishing secure value in the market Marriott can focus on developing its expansion
strategy based on the tangible points (James, Narus & van Rossum 2006). In the article, the
author has mentioned about the significant impact of developing business performance model by
properly allocating business resources.
In this article, it has been mentioned that promotional strategies can play an important
role in ensuring the high customer value. In order to provide satisfactory benefits to the
customers, Marriott needs to develop the promotional copy. In case of providing smarter choices
to the customers it can also be more comfortable for Marriott to utilize company resources for
providing better offers to the customers. In order to sale high performance, research and

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development can be considered as the critical strategic initiative that can help to ensure integrity
(James, Narus & van Rossum 2006). In terms of delivering simple benefits to the target
customers, better service can be provided to them. On the other hand, demonstrating value to the
customers, sophisticate understanding of superior performance can help to understand
customer’s business priorities.
In order to create value in the workplace, the company needs to focus on identifying the
favorable points of the customers so that they can be offered best thing. Instead of highlighting
the competitive position in the market, Marriott can focus on establishing its unique image.
Rather than increasing the market competitiveness, Marriott should focus on sharing what the
company is offering to the customers. Developing a strong value proposition in the market,
researching on the customer value can bring significant impact on the growth process in the
company (James, Narus & van Rossum 2006).
Best pricing strategy can be introduced, in which more significant customer segment can
be targeted. In order to establish a sustainable position in the market, the company needs to
focus on identifying, if the customers are getting alternatives in the market or not. Knowing the
element in offering point, it can be more comfortable for the company to understand customer
requirement in proper way. Not only providing the economic benefits, but also providing the
social benefits to the customers, Marriott can be able to introduce the value proposition to the
customers effectively. By researching the business performances over the past few years,
Marriott can be able to draw the systematic approach for developing value proposition in the
market. Including the point of parity in the value proposition, cost-saving strategy can be
adopted by the company. By continuing this, it can be said that in the case of constructing value
proposition, engagement of customers in the growth process is important.

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HBR article 2
As per the theory, planned opportunism can be considered as the systematic process in
which the company can be able to recognize the impending changes (Govindarajan 2016). It can
also play an effective role for ascertaining opportunities, which can be offered by the company.
Introducing the circulatory system for introducing new ideas in the market, Marriott can be able
to effectively focus of satisfying the needs of the customers. There are various data strategies that
ensure the positive control on future in the workplace. In order to adopt the approach different
key questions needs to be considered
 What should the priorities for ensuring successful business practices?
 How the possible changes can bring future growth in the company?
 What are the changes that can be introduced for business expansion?
Investment priorities
In terms of introducing new business idea in the market, Marriott should focus on
improving the investigation priorities as well as focus on building adaptive culture for accepting
continuous changes in the industry. Workplace empowerment can play a significant role in case
of business expansion. Analyzing the situation in Marriott, it can be suggested that ensuring
positive growth in the industry, the company should be aware if both the strength as well as
weaknesses (Govindarajan 2016). In order to shape the future growth in the company, following
planned optimism theory, sensitivity of weak areas in the company can be identified.
Analyzing the emerging challenges in the company, it has been identified that due to
rapid changes in the company, it has become highly challenging for Marriott to ensure customer
satisfaction in the market. In this situation different experiment program can be introduced by the

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company for scaling up the promising ideas. The theory has highly concentrated on identifying
the weak points in the organization for converting those as the strength in the company. With the
help of technological push in the service sector, it can be easier for Marriott to ensure growth
possibilities in the market. On the other hand, it is true that due to economic liberalization in all
over the globe, the number of middle class population is growing in the fastest manner. In this
situation, achieving high customer base, the target market of the company needs to be revised.
Develop hypothesis for the future
In the article, it is mentioned that in the late of 1990s, the Mahindra Group, which is a
popular automotive organization, adopted the strategy for developing hypothesis for the future.
This strategy has played a significant role in case of ensuring the positive transformation in the
company, which has not only brought new designs, but also it has impacted on the sales revenue
of the company (Govindarajan 2016). Following the theory, it can be assumed that adopting this
strategy, Marriott can be effectively ensure its positive contribution in the future of Hospitality
Industry
Hypothesis test
Depending on the hypothesis testing process, the company can also effectively identify
customer preferences. Through the introduction of M&M hypothesis testing process, the
company can effectively address the future market growth. It can also be said that this strategic
adoption process can impact on the abilities of Marriott for designing innovative marketing
initiatives. Ensuring the positive customer experience, distribution strategy of the company can
also get improved (Govindarajan 2016). It is true that in the current scenario, the major channels
distribution strategy is being followed by the company in which direct sales practice is being