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EXPANDING THE MARRIOTT BRAND
SUBMITTED BY:
RITUSRI RAY
PGP31404
IIM LUCKNOW
ROAD MAP OF THE PRESENTATION
Journey to Success
Business Performance
Marketing Mix
Brand Architecture Concepts
Brand Port Folio
Corporate Branding
Recent News
JOURNEY OF SUCCESS
Started as a Root
Beer Stand
Plunged into
hotel business
Extended stay
business to
distinctive brands
Travel through
technology and
innovation
1927-1956 1957-1985 1986 to 2011 2012 onwards
BUSINESS PERFORMANCE
198
571
626
753
859
2011 2012 2013 2014 2015
Net Income
490
524
561
2013 2014 2015
Segment Profits
12317 11814
12784
13796
14486
2011 2012 2013 2014 2015
Revenue
All Figures in $ Mn
MARKETING MIX
PRODUCT
4500 hotels
World’s Most Admired Companies – 29th rank
Rank 1 in :
- Innovation
- People Management
- Use of Corporate Assets
- Social Responsibility
- Quantity of Management
- Financial Soundness
- Long term Investment Value
- Quality of Product/Services
- Global Competitiveness
Great place to work for
Excellent customer care standard
PLACE
Head quartered in Washington DC
87 countries and Territories
19 Brands to cater different customer segments
worldwide
Booking via own website, other travelling sites
PRICE
Member benefits
- Free Wi-Fi
- Mobile check in
- 5th redemption night free
Silver Elite
- Priority late check out
- Weekend discount
- 20% bonus on points for stays
Gold Elite
- Lounge access and breakfast for 2
- Complimentary room upgrade
- 25% bonus on points for stays
Platinum Elite
- 48-Hour Guaranteed Availability
- Platinum Arrival Gift
- 50% bonus on points for stays
Differential tariffs based on the customer segments of the
properties
PROMOTION
Promoted through YouTube videos
Promotion in Super Bowl
Bonuses
Discounts
BRAND ARCHITECTURE CONCEPTS
BRAND ARCHITECTURE
STRATEGY
- Clarify Brand Awareness
- Improve Brand Image
DEFINING BRAND
POTENTIAL
- Articulating brand vision
- Defining brand boundaries
- Crafting brand positioning
BRAND EXTENSION
OPPORTUNITIES
- Line extension
- Category extension
BRANDING NEW
PRODUCTS &
SERVICES
- Sub brands
BRAND POTENTIAL - MARRIOTT
Vision: Be the no. 1 hospitality company in the
World
Focus on sustaining quality & reputation of brands
through superior customer service
Corporate Branding
International brand Name
Convenient Locations
Worldwide reservations
24 hour business centre with complete business
environment
BRAND EXTENSION OPPORTUNITIES - MARRIOTT
Be the no. 1 hospitality company in the
World
Successfully adopted line extension
strategies
Intended to acquire new customers from
different segments
“By Marriott” tag :
- Aided in maintaining differentiation
- Reducing operational risks
- Limiting new-product introduction costs
- Enhancing financial performance
In 1980s
- Expanded to mid-priced segment “Courtyard by
Marriott”
- Expanded to economy segment with “FairField
Inn”
- Expanded in wealthy segment with “Acquired Ritz
Carlton”
In 1990s
- Marriott grew by more than 10% against hotel
industry growth of 6%
- Bottom line profitability grew by 18.4%, 3 points
higher than average
BRANDING NEW PRODUCTS - MARRIOTT
Upper upscale Marriott co-branding
partners with restaurant chains viz.
Starbucks
License agreement with Pizza Hut’s kiosk
operation in Marriott lobbies
COMPETITION
PROPERTIES MARKET SHARE (in %)
Hilton Hotels 7.2
Marriott International 5.6
Starwood Hotels &
Resorts
3.4
Wyndham Worldwide 3.4
Accor 1.7
Intercontinental Hotels 0.8
BRAND PORT FOLIO - MARRIOTT
BRAND
CATEGORY
BRANDS
Iconic Luxury Bvlgari, The Ritz Carlton, The Ritz Carlton Destination Club
Luxury JW Marriott
Lifestyle|Collections Edition, Autograph Collection, Renaissance Hotels, AC Hotels
Signature Marriott Hotels and Resorts
Modern Essentials Courtyard, SpringHill Suites, FairField Inn and Suites
Extended Stay Residence Inn, TownePlace Suites, ExecuStay, Marriott Executive
Apartments
Vacation Clubs Marriott Vacation Club, Grand Residences
ICONIC LUXURY
 Positioned in the high priced and
luxury segment
 High end Decors and Furnishings
with executive lounges
 Only Service Company to earn
Malcom Baldrige National Quality
Award
LUXURY
 Company’s “Signature” Brand
 Caters to upper-upscale business
and leisure travellers
 Accounts for around 25% to 30%
of total rooms
LIFESTYLE|COLLECTION
 Distinct and unique style, design,
character
 Includes
- Renaissance - full-service brand for
business travellers
- Autograph Collection - luxury
independent hotels
- Moxy - first brand under the economy
segment introduced in 2014, caters to
Millenials
MODERN ESSENTIALS
 Caters
- Upper Midscale: Courtyard
- Moderate price tier: FairField Inn and
Suites
- Expansion in Middle East and Africa:
Protea
- Upper midscale: SringHill Suites
Accounts for almost 6% rooms
EXTENDED STAY
 Caters individuals travelling
frequently, staying for long (5 days to
30 days)
 Includes
- Residence Inn: upscale
- TownPlace suites: Moderately priced
- Marriott Executive Apartment: Luxury
serviced apartments with 5 star
amenities
VACATION CLUBS
 Includes
- Gaylord: convention-oriented hotel,
leads the group and meetings business
- Marriott Vacation Club: part of the
timeshare segment that spun off into
Marriott Vacation Worldwide in 2011
CORPORATE BRANDING
Corporate Image
Dimensions
Common product attributes,
benefits or attitudes
People and Relationship
Values and Programs
Corporate Credibility
Managing the Corporate
Brand
Corporate Social Responsibility
Corporate Image Campaigns
Corporate Name Changes
CORPORATE BRANDING - MARRIOTT
Corporate Image
Dimensions
Quality, Innovativeness
Pursue excellence, Embrace change,
Act with Integrity, Serve the World
Customer Orientation
Put people first
Soc. Resp., Concern with Env.
Responsible Business Principle,
Human Rights
Expertise, Trustworthiness, Likability
Experience over Opulence, Flavour
over Flair, Comfort over Decoration
Managing the Corporate
Brand
CSR
Energy Intensity, Water Intensity
Corporate Image
Shelter & Food, Ready for Jobs,
Vitality for Children
Corporate Name Change
Retained name for Ritz Carlton,
rest following “Marriott” tag
RECENT NEWS
With the new mergers and acquisitions Marriott
- Expands into new segments (Proteas, Moxy, Gaylord)
- Challenges the market leader (Starwood)
SUMMARY
DISCLAIMER
Created by Ritusri Ray, IIM Lucknow
For Brand Management Course
Under guidance of Prof. Sameer Mathur, IIM
Lucknow
REFERENCES
http://news.marriott.com/2016/02/fortune-names-marriott-international-as-a-worlds-most-
admired-company/
http://www.marriott.com/marriott-rewards/member-benefits.mi
http://ebooks.narotama.ac.id/files/Handbook%20of%20Hospitality%20Marketing%20Managem
ent/Chapter%204%20%20Branding,%20Brand%20Equity,%20And%20Brand%20Extensions.pdf
http://marketrealist.com/
http://www.wsj.com/news/us
http://www.nytimes.com/
Ritusri Ray_PGP31404_IIML_Marriot_BM

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Ritusri Ray_PGP31404_IIML_Marriot_BM

  • 1. EXPANDING THE MARRIOTT BRAND SUBMITTED BY: RITUSRI RAY PGP31404 IIM LUCKNOW
  • 2. ROAD MAP OF THE PRESENTATION Journey to Success Business Performance Marketing Mix Brand Architecture Concepts Brand Port Folio Corporate Branding Recent News
  • 3. JOURNEY OF SUCCESS Started as a Root Beer Stand Plunged into hotel business Extended stay business to distinctive brands Travel through technology and innovation 1927-1956 1957-1985 1986 to 2011 2012 onwards
  • 4. BUSINESS PERFORMANCE 198 571 626 753 859 2011 2012 2013 2014 2015 Net Income 490 524 561 2013 2014 2015 Segment Profits 12317 11814 12784 13796 14486 2011 2012 2013 2014 2015 Revenue All Figures in $ Mn
  • 6. PRODUCT 4500 hotels World’s Most Admired Companies – 29th rank Rank 1 in : - Innovation - People Management - Use of Corporate Assets - Social Responsibility - Quantity of Management - Financial Soundness - Long term Investment Value - Quality of Product/Services - Global Competitiveness Great place to work for Excellent customer care standard
  • 7. PLACE Head quartered in Washington DC 87 countries and Territories 19 Brands to cater different customer segments worldwide Booking via own website, other travelling sites
  • 8. PRICE Member benefits - Free Wi-Fi - Mobile check in - 5th redemption night free Silver Elite - Priority late check out - Weekend discount - 20% bonus on points for stays Gold Elite - Lounge access and breakfast for 2 - Complimentary room upgrade - 25% bonus on points for stays Platinum Elite - 48-Hour Guaranteed Availability - Platinum Arrival Gift - 50% bonus on points for stays Differential tariffs based on the customer segments of the properties
  • 9. PROMOTION Promoted through YouTube videos Promotion in Super Bowl Bonuses Discounts
  • 10. BRAND ARCHITECTURE CONCEPTS BRAND ARCHITECTURE STRATEGY - Clarify Brand Awareness - Improve Brand Image DEFINING BRAND POTENTIAL - Articulating brand vision - Defining brand boundaries - Crafting brand positioning BRAND EXTENSION OPPORTUNITIES - Line extension - Category extension BRANDING NEW PRODUCTS & SERVICES - Sub brands
  • 11. BRAND POTENTIAL - MARRIOTT Vision: Be the no. 1 hospitality company in the World Focus on sustaining quality & reputation of brands through superior customer service Corporate Branding International brand Name Convenient Locations Worldwide reservations 24 hour business centre with complete business environment
  • 12. BRAND EXTENSION OPPORTUNITIES - MARRIOTT Be the no. 1 hospitality company in the World Successfully adopted line extension strategies Intended to acquire new customers from different segments “By Marriott” tag : - Aided in maintaining differentiation - Reducing operational risks - Limiting new-product introduction costs - Enhancing financial performance In 1980s - Expanded to mid-priced segment “Courtyard by Marriott” - Expanded to economy segment with “FairField Inn” - Expanded in wealthy segment with “Acquired Ritz Carlton” In 1990s - Marriott grew by more than 10% against hotel industry growth of 6% - Bottom line profitability grew by 18.4%, 3 points higher than average
  • 13. BRANDING NEW PRODUCTS - MARRIOTT Upper upscale Marriott co-branding partners with restaurant chains viz. Starbucks License agreement with Pizza Hut’s kiosk operation in Marriott lobbies
  • 14. COMPETITION PROPERTIES MARKET SHARE (in %) Hilton Hotels 7.2 Marriott International 5.6 Starwood Hotels & Resorts 3.4 Wyndham Worldwide 3.4 Accor 1.7 Intercontinental Hotels 0.8
  • 15. BRAND PORT FOLIO - MARRIOTT BRAND CATEGORY BRANDS Iconic Luxury Bvlgari, The Ritz Carlton, The Ritz Carlton Destination Club Luxury JW Marriott Lifestyle|Collections Edition, Autograph Collection, Renaissance Hotels, AC Hotels Signature Marriott Hotels and Resorts Modern Essentials Courtyard, SpringHill Suites, FairField Inn and Suites Extended Stay Residence Inn, TownePlace Suites, ExecuStay, Marriott Executive Apartments Vacation Clubs Marriott Vacation Club, Grand Residences
  • 16. ICONIC LUXURY  Positioned in the high priced and luxury segment  High end Decors and Furnishings with executive lounges  Only Service Company to earn Malcom Baldrige National Quality Award
  • 17. LUXURY  Company’s “Signature” Brand  Caters to upper-upscale business and leisure travellers  Accounts for around 25% to 30% of total rooms
  • 18. LIFESTYLE|COLLECTION  Distinct and unique style, design, character  Includes - Renaissance - full-service brand for business travellers - Autograph Collection - luxury independent hotels - Moxy - first brand under the economy segment introduced in 2014, caters to Millenials
  • 19. MODERN ESSENTIALS  Caters - Upper Midscale: Courtyard - Moderate price tier: FairField Inn and Suites - Expansion in Middle East and Africa: Protea - Upper midscale: SringHill Suites Accounts for almost 6% rooms
  • 20. EXTENDED STAY  Caters individuals travelling frequently, staying for long (5 days to 30 days)  Includes - Residence Inn: upscale - TownPlace suites: Moderately priced - Marriott Executive Apartment: Luxury serviced apartments with 5 star amenities
  • 21. VACATION CLUBS  Includes - Gaylord: convention-oriented hotel, leads the group and meetings business - Marriott Vacation Club: part of the timeshare segment that spun off into Marriott Vacation Worldwide in 2011
  • 22. CORPORATE BRANDING Corporate Image Dimensions Common product attributes, benefits or attitudes People and Relationship Values and Programs Corporate Credibility Managing the Corporate Brand Corporate Social Responsibility Corporate Image Campaigns Corporate Name Changes
  • 23. CORPORATE BRANDING - MARRIOTT Corporate Image Dimensions Quality, Innovativeness Pursue excellence, Embrace change, Act with Integrity, Serve the World Customer Orientation Put people first Soc. Resp., Concern with Env. Responsible Business Principle, Human Rights Expertise, Trustworthiness, Likability Experience over Opulence, Flavour over Flair, Comfort over Decoration Managing the Corporate Brand CSR Energy Intensity, Water Intensity Corporate Image Shelter & Food, Ready for Jobs, Vitality for Children Corporate Name Change Retained name for Ritz Carlton, rest following “Marriott” tag
  • 24. RECENT NEWS With the new mergers and acquisitions Marriott - Expands into new segments (Proteas, Moxy, Gaylord) - Challenges the market leader (Starwood)
  • 26. DISCLAIMER Created by Ritusri Ray, IIM Lucknow For Brand Management Course Under guidance of Prof. Sameer Mathur, IIM Lucknow