Marketing strategy final draft *****

Marketing Analysis for the Ritz-Carlton 1
Marketing Analysis for the Ritz-Carlton
Gus Arias 4967802
Florida International University: Chaplin School of Hospitality and Tourism Management

Table of Contents
Mission and Vision Statement………………………………………………………………....1
Marketing Mix……………………………………………………………………………….3-4
 Product………………………………………………………………………………....4
 Price…………………………………………………………………………………....5
 Place……………………………………………………………………………………5
 Promotion……………………………………………………………………………5-6
SWOT Analysis……………………………………………………………………………...6-7
Target Segments………………………………………………………………………………..8
Evaluation of Company………………………………………………………………………8-9
 Differentiation…………………………………………………………………….....9-10
 Strategy Formulation………………………………………………………………..10-11
 Brand Positioning…………………………………………………………………...11-12
Suggestions for Business Improvement………………………………………………………...12
Conclusion…………………………………………………………………………………..12-13
References………………………………………………………………………………………14

The Ritz Carlton is a Luxury brand Management company that operates eighty five hotels
in thirty countries. This is a brand that is known most for its outstanding luxury service and style.
More importantly, we want to know what marketing strategies they use to portray an image of
such luxury and that keeps their guests coming back. Throughout this paper we will be analyzing
their mission, vision, marketing mix, strengths, weaknesses, opportunities, threats, and target
markets to understand more about the Ritz-Carlton’s strategy to be such a well-known luxury
brand.
MISSION & VISION
"The Ritz-Carlton Hotel is a place where the genuine care and comfort of our guests is
our highest mission. We pledge to provide the finest personal service and facilities for our guests
who will always enjoy a warm, relaxed, yet refined ambience. The Ritz-Carlton experience
enlivens the senses, instills well-being, and fulfills even the unexpressed wishes and needs of our
guests."
Their credo is great, but what does it really mean to the employees of the Ritz-Carlton?
They want to do the thinking for you so that way they are anticipating your needs. We were told
for example, if they know Mrs. Smith likes to have a cool refreshing soft drink while she is out
by the pool in the afternoon, she will tell them the first day, by the second day they will say “Hi
Mrs. Smith, will you be needing a cool refreshment again.” By the third day, the inquiry
wouldn’t need to arise as the refreshment has now become a habitual routine that the guest will
be delighted to enjoy without the wasteful time of asking. A perfected system that means that the
attention to detail becomes of utmost importance to the employee and the brand alike, again
keeping up with the Ritz-Carlton’s gold standards.

Their ultimate mission with each person is to follow their motto that says “We are ladies
and gentleman serving ladies and gentleman”. They are a luxury brand and their commitment is
to provide exceptional service that is associated with a luxurious lifestyle. “We want guests to
walk away with the feeling that they are the only guest and that they are treated exceptionally.”
Their platform is let us stay with you as opposed to you staying with us. They want to make sure
that their guests have all the amenities at their fingertips. How does the Ritz Carlton go about
accomplishing this? Richard Lemis (2014), tells us that they have vigorous training at a
corporate level and all of the Ritz staff have twelve service values that help them achieve their
mission. They are trained to surprise and delight their guests, to really wow them and to make
sure that each guest feels like an individual. In addition, they use all the tools they have around
them to further their learning about their company and the brand so they can grow as employees
and better the service to their guests. As in most hotels, the Ritz Carlton does not call them
clients or customers because for them they are guests.
MARKETING MIX
Product
The Ritz-Carlton is a luxurious hotel company that offers a combination of products and
services in the hospitality industry. This International hotel chain focuses on rendering luxurious
guest rooms and its amenities with a mission to provide the consumer with a unique experience,
according to Richard Lemis (2014). The Ritz-Carlton sells and ensures the highest standard in
elegance for those who travel around the world either for business or pleasure. Their exceptional
facilities to offer to its most valued guests includes spas, restaurants, pools, shopping boutiques,
and sports and recreation facilities. It also offers celebration and meeting facilities, along with

catering services and event planning. Planning a wedding, the Ritz-Carlton would be the perfect
choice (“The Ritz-Carlton Hotel & Company, 2014”).
Price
The Ritz-Carlton Hotel’s reputation of providing their guests with lavish facilities, and
outstanding customer service over the years of its history has come with a prestige price. The
price rate per night ranges from $500 to $14,000 depending on the type of suite, number of
guests, and special services (“The Ritz-Carlton Hotel & Company, 2014”). The factors of pricing
are made according to the considerations of competition, high or low seasons, level of
establishment, availability, weekly inventory forecast, the occasion, personal perception,
location, demographics, and other alternatives according to Richard Lemis (2014).
Place (Distribution)
The Ritz-Carlton hotel company owns a total of 85 locations worldwide.
“Ritz-Carlton locations in 30 countries: Aruba, Austria, Bahrain, Canada, Cayman Islands,
Chile, China, Germany, India, Indonesia, Israel, Japan, Kazakhstan, Malaysia, Mexico, Oman,
Portugal, Puerto Rico, Qatar, Russia, Singapore, Saudi Arabia, South Korea, Spain, Thailand,
Turkey, the United Arab Emirates, U.S. Virgin Islands, and the United States.” (“Fact Sheet: The
Ritz-Carlton, 2014”)
Promotion (Sales and Advertising)
The Ritz-Carlton Hotel is a top-notch company that is known globally for their outstanding
service and lavish properties. By having set a higher standard than most of the competition, the
company created a platform of exclusiveness and quality across the board. These are the main
priorities when it comes to their international marketing strategy (R. Lemis, personal
communication, March 3, 2014).

In order to maintain the brand standard, the advertising team is not allowed to market to
everyone and anyone. Their strategy is not to fault into a certain marketing channel. The
company does not utilize much of television as a marketing tool, instead they use email
promotion, ads on certain magazines, as well as their own private magazine provided by the
luxury-advertising network according to Richard Lemis (2014). The company also uses its
rewards programs for their loyal consumers as promotion and its partnerships with other high-
end companies such as Neiman Marcus and JP Morgan Chase & Co, working together as a
network to advertise their products (“The Ritz-Carlton Hotel & Company, 2014”). By following
a brand standard and staying committed to service, the company also benefited from Word-To-
Mouth marketing, positive costumer ratings, and numerous prestigious awards (R. Lemis,
personal communication, March 3, 2014). .
The Ritz-Carlton hotel company uses their own successful track record as an advantage,
by having created a reputation of exclusiveness and high-class standards, without having to
spend too much money on advertising. This is the reason why they can get away without
exhausting mass media channels like, TV, or radio for promotion, and can still be as prosperous
as other companies relaying heavily on those mass media channels (R. Lemis, personal
communication, March 3, 2014).
SWOT ANALYSIS
Strengths
The Ritz-Carlton is one of the luxury hotels of the world and each one of them offer
luxury amenities and services. They are known for offering such high standards, one of the
reasons that they continuously attract their guest. Along with excellent service, they are known
for their superior training. Every employee is put through a rigorous training program to ensure

that they can handle every situation and is also allowed up to $2,000 to solve any guest
complaint. Guests know that during their stay the highest level of customer service to given to
them without question or doubt. No guest go unheard or inconvenienced by any means, another
gold standard plus. According to Richard Lemis (2014), 99% of their guests are satisfied with
their experience at the hotel and it’s because their biggest strengths’ are the services each and
every guest receives.
Weaknesses
No matter how strong or organized a solid company can be, flaws can also be recognized,
not by the naked eye, but subliminally viewable in some type of way or form. Even if we include
the fact that there are perceived as being a company that is too expensive and they have a high
turnover rate. Because they are a luxury hotel, staying there can range from $500-$10,000 a
night. Along with that, working there can be a bit stressful and so high in standard that
employees don’t match their standards.
Opportunities
The opportunities at The Ritz-Carlton consists of attracting new guests by opening new
hotels in untapped countries, by adding new spas to existing and to new locations, by improving
and promoting hotel security, by expanding and enhancing its corporate social responsibility;
and, by sponsoring events according to Richard Lemis (2014).
Threats
The threats that the company faces are mainly due to pricing wars, and tougher
competition from major players such as Four Seasons Hotels Inc., The Hong Kong and Shanghai
Hotels, Limited and Starwood Hotels & Resorts Worldwide, Inc (R. Lemis, personal
communication, March 3, 2014). Other threat factors are worldwide economic recessions. They

have a major impact in revenues and profits as vacancy rates increases due to guests travel cuts.
Also increased terrorism threats have becoming an nuisance to the travel and hospitality industry
thus negatively and directly affecting The Ritz-Carlton’s ability to generate revenues. Back in
July 17th 2009, a suicide bombing attack killing 9 people and injuring more than 50 (Bell, 2009),
has raised security concern in customer s mind. The hotel management team has to take into
consideration new security procedures.
Target Segmentation
The Ritz-Carlton is a luxury brand so without a doubt they target upper class individuals,
who are usually upper in age as well. Their high rates tend to attract older guests from all around
the world who travel to relax in a peaceful and luxurious location or on business as a business
traveler should, with style and comfort ability. Richard Lemis (2014) informed us that their
location receives a majority of people from the North East, London and Brazil. Since their
locations attract so many guests from these regions, Lemis (2014) and the rest of his marketing
team try to target more to the North East region like the United Kingdom and Brazil.
Evaluation
The Ritz-Carlton Hotel Company is well-known as a luxury property for an outstanding
customer service to their guests. This company operates many hotels worldwide and has even
received the Malcom Baldrige National Quality Award, which it is a privilege award to obtain
and be bestowed with, the honor is exceptional.
According to the Ritz Carlton website:
Our organization is the first and only hotel company twice honored with the Malcolm
Baldrige National Quality Award from the United States Department of Commerce. Our
organization is the first and only hotel company twice honored with the Malcolm

Baldrige National Quality Award from the United States Department of Commerce.
(“Ritz-Carlton Hotel & Resorts, 2014”)
This company uses a peculiar strategy that works to their benefit in a sense that they provide
above and beyond the norm of customer services to each and every valued guest that steps
through their doors. The name Ritz-Carlton itself stands on its own. The world population and
the general public recognize the Ritz-Carlton has a prestigious name in hotels they can count on
for the gold standards of hospitality. The company has a collection of hotels that spans over
several continents across the world. With the totaled number of 35,000 employees the company’s
gold standards are held in utmost regard. The Ritz-Carlton branded the name over a course of 31
years within the ever-changing hospitality industry differentiating themselves as a brand that
stands apart of other well-known luxury names within a class of their own, especially after being
purchased outright by Marriott International. The company continues to hold the name strong as
an independently owned division of Marriott (“Fact Sheet: The Ritz-Carlton, 2014”). One main
differential element that seems to make an impact within the company’s branding is the fact that
they take pride in their guests and takes each and every comment or complaint to highest regard.
Differentiation
The Ritz-Carlton takes absolute pride in their brand recognition setting them apart from
competition and other known names. The company’s Gold Standards program exhibits that trust
and foundation that the Ritz Carlton has built with their employees to provide that upper echelon
of immaculate service to their guests strictly following their outstanding motto “We are Ladies
and Gentlemen serving Ladies and Gentlemen.” (“Fact Sheet: The Ritz Carlton, 2014”)
According to Simon Cooper, who at the time was the President and Chief Operating Officer of
The Ritz-Carlton from 2001 to 2010,

“We focus on three fundamentals. First, location–making sure we get absolutely the best
location, where our luxury customers want to stay. Second, product–building the right
physical product for what our guests want today and what they will want tomorrow,
which means an investment of between $500,000 and over $1 million per room. That’s
the platform. Third, people–our ladies and gentlemen serving ladies and gentlemen. They
animate the platform. But you must get the first two right. If you’re not in the right
location, or if you don’t have the right physical product, then employees, ladies and
gentlemen, can only do so much.” (Reiss, 2009)
Continuing with The Ritz Carlton gold standards, their credo also exemplifies their care and
service to their beloved guests. The gold standards program that is set amongst their entire staff
is a key element that places them above the rest and very few brands can equal in the same
manner. Following the same direction as the Marriott and within the trends of other luxury
chains, the Ritz-Carlton has even released their own Rewards Program. What seems interesting
in the fact that Marriott has their own rewards network not associating with that of Ritz-Carlton,
the company chose to focus primary on their guests outside of the Marriott name.
Strategy Formulation
Being at the top of a luxury hotel chain comes with the responsibility of launching a
unique and strategic way of marketing to the consumer. Formulating a marketing plan of action
focuses on the product and what the product provides to the consumer. In an interesting turn of
strategy, The Ritz-Carlton initiated a campaign that focuses primarily on the guest and what the
hotel can provide for them. The ideology behind the campaign introduced a new approach to an
already existing idea. Rather cliché, the idea was taken and turned inside out sort of say. The
Ritz-Carlton has taken the term ‘Please Stay with Us’ and has based it from the guest’s point of

view with a new phrase ‘Let Us Stay with You.’ The structure of that concept puts the traveler
into the driver seat and allows them to control their travel experience and what they expect from
a hotel. The Ritz-Carlton invested $10 million into rebranding the entire campaign all for the
traveler’s needs in their lodging experience. The platform behind the campaign is based on travel
and hotel memories from around the world. The campaign was officially launched in 2011 and
has been affectionately entitled ‘Memories by The Ritz Carlton’ with the coined phrase stating
‘A Collection of Lasting Memories from Around World.’ This platform allows Ritz Carlton
guests and employees to share an experience they’ve had whether in the hotel or on their travel.
The Ritz-Carlton has also managed to incorporate this into their guestrooms and online. (Nayer,
2011). According to Chris Gabaldon, Chief Marketing Officer for the Ritz-Carlton,
“When we looked for a common platform, one of the things that had to ring true was:
Does the consumer actually believe that this is something the brand can do? It's about the little
interactions that happen every day at the hotel. The platform provides the ability for the hotels to
be able to rally around something they believe in.” (Nayer, 2011). As of now, the campaign is
working to their benefit and can be seen on their website. The Ritz-Carlton has separated their
memories platform into two sections, “Hotel Memories” and “Travel Memories.” (“Memories by
Ritz-Carlton: Ritz Carlton, 2014”)
Brand Positioning
The Ritz Carlton has built a positive reputation around the world. According to Herve
Humler, president of the Ritz Carlton, “The Ritz-Carlton is a brand that has proven the test of
time and has continued to elevate its game to compete not only within the luxury hotel sector, but
amongst the most elite luxury labels in the world.” (Stitch, 2011). In 2011, when The Ritz-
Carlton launched their current campaign ‘Let Us Stay with You,’ it created a new format of

marketing revolutionizing their entire brand. The campaign focuses directly on the ideology of
true luxury and unites guest across the globe through experiences they can share with each other
through Ritz-Carlton’s personal social collections all based on their website. (Snitch, 2011). The
‘Let Us Stay with You’ campaign is actually quite extensive covers many different aspects from
social marketing to even a digital advertising campaign. These are the highlights that set The
Ritz-Carlton on a higher tier and most other brands within the luxury chain of hotels.
Suggestions
We all know that the Ritz-Carlton hotel has high standards in delivering services to every
guest who walks through the property. However, the hospitality industry is a business where
guests experience either a positive or a negative stay. For this reason, there are two well-known
websites, TripAdvisor and Yelp, where guests write comments and rate hotel properties.
According to the TripAdvisor website, guests write suggestions or problems encounter during
their stay in the hotel. As an example, in March 6, 2014 a guest wrote a complaint about the
noise heard from the walls and hallways and the lack of warning when a private event was
occurring and the pool had to close. (“Nice, but not up to Ritz standards, 2014”). With the
hospitality industry continuing to grow into the 21st Century, the use of social media has become
widespread. Guests staying at the Ritz-Carlton or any other hotel have flocked to social media
sites to express their thoughts on their particular stay at the property whether positive or
negative, their voice was heard. The way that social media marketing is beginning to effect the
business is that whether current guests or new guests read these comments of the property, they
in turn derive their own opinion of the property and choose whether not this is the place to be.
Conclusion
All in All, The Ritz Carlton uses an upscale approach to capture an upscale clientele base.

They provide excellent and an ultimately unique experience to ensure that every guests feels
special. Even through their weaknesses and threats, they live up to the “gold standard” and
continue to come out on top as one of the best hotel brands in the world. They market themselves
through having strong beliefs, providing an excellent guest experience, exclusive promotional
material. Furthermore, the Ritz-Carlton continues to set themselves apart through creating
innovative strategies and positioning their brand in such a way that makes them different from
any other company within the entire hotel industry across the globe making the company being a
recognized and respected luxury name throughout their thirty one years of service and many
more years ahead us.

References
About Us. (n.d.). 5 Star Resorts & 5 Star Hotels: The Ritz-Carlton Luxury 5 Star Hotels &
Resorts. Retrieved March 19, 2014, from
http://corporate.ritzcarlton.com/en/About/Awards.htm
Bell, T. (2009, July 17). Indonesia hotel bombings: nine killed and 50 injured in Jakarta attacks.
The Telegraph. Retrieved March 21, 2014, from
http://www.telegraph.co.uk/news/worldnews/asia/indonesia/5847903/Indonesia-hotel-
bombings-nine-killed-and-50-injured-in-Jakarta-attacks.html
Fact Sheet. (n.d.). The Ritz-Carlton Corporate. Retrieved March 18, 2014, from
https://www.ritzcarlton.com/en/Properties/SouthBeach/Reservations/Default.htm?ci=03:
21:2014&co=03:22:2014&ng=1&nr=1&up=false#top
Lemis, Richard. Personal interview. 3 Mar. 2014.
Palmer, A. (2011, December 1). Ritz-Carlton CMO reinvents luxury. Direct Marketing News.
Retrieved March 20, 2014, from http://www.dmnews.com/ritz-carlton-cmo-reinvents-
luxury/article/217494/
Ritz-Carlton Hotel & Resorts. (2014). Retrieved March 2014, from
http://www.leaderspipeline.com/ritz-carlton-hotels-and-resorts
Fact Sheet: The Ritz-Carlton. (2014). Retrieved March 2014, from
http://corporate.ritzcarlton.com/en/Press/FactSheet.htm
Reiss, R. (2009). How Ritz-Carlton Stays at the Top. Retrieved from
http://www.forbes.com/2009/10/30/simon-cooper-ritz-leadership-ceonetwork-hotels.html
Gold Standards: The Ritz-Carlton. (2014). Retrieved March 2014, from

http://corporate.ritzcarlton.com/en/About/GoldStandards.htm
Nayer, M. (2011). Ritz-Carlton’s new platform makes memories social. Retrieved from
http://www.hotelnewsnow.com/Article/6534/Ritz-Carltons-new-platform-makes-
memories-social
Memories by The Ritz-Carlton: The Ritz-Carlton. (2014). Retrieved March 2014, from
http://www.ritzcarlton.com/en/LetUsStay/Default.htm
Stitch, A. (2011). The Ritz-Carlton Hotel Company New Brand Platform: ‘Let Us Stay with
You.’ Retrieved from
http://corporate.ritzcarlton.com/en/Press/Releases/LetUsStayWithYou.htm
Nice, but not up to Ritz standards. (2014). Retrieved March 2014, from
http://www.tripadvisor.com/ShowUserReviews-g34227-d633139-r196441459-
The_Ritz_Carlton_Fort_Lauderdale-
Fort_Lauderdale_Florida.html#CHECK_RATES_CONT
About Us. (n.d.). 5 Star Resorts & 5 Star Hotels: The Ritz-Carlton Luxury 5 Star Hotels &
Resorts. Retrieved March 2014, from
http://corporate.ritzcarlton.com/en/About/Awards.htm
Palmer, A. (2011, December 1). Ritz-Carlton CMO reinvents luxury. Direct Marketing News.
Retrieved March 2014, from http://www.dmnews.com/ritz-carlton-cmo-reinvents-
luxury/article/217494/
Press Room. (n.d.). The Ritz-Carlton: Press: Fact Sheet. Retrieved March 2014, from
http://corporate.ritzcarlton.com/en/Press/FactSheet.htm

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