Research Proposal on "Marketing Strategy Plan"

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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.

Sound manager-franchisor model

Marriott decided back in the early 1990s to separate ownership of hotel assets from management and franchising of brands. The result was a split of the company into Host Marriott and Marriott International. Today, Marriott focuses on investing in its brand, leaving real estate investing to third parties (e.g., Host Marriott, Sunstone, Diamondrock, etc.). This business strategy is a less capital-intensive model that generates higher average returns on assets than real estate-based models. Marriott's manager-franchisor model also ensures a steady fee stream. Under the fee-based model that Marriott pursues, ensuring a steady stream of new additions to the number of branded rooms under management or franchise agreement is critical to the company's earnings growth. Typically, Marriott earns a base fee of 3% of gross revenue from managed hotels and a fee of roughly 5% of room revenue for franchised hotels. The company's sound business model enables it to leverage its brand identity to achieve economies of scale, whose benefit the company passes on to its customers.

Unique distribution brand strategy

Marriott's 'Distribution Brand' Strategy offers something for every customer and, in the process, generates premium pricing.… READ MORE