Ritz carlton target market

Executive Summary

In this report, we will be addressing the issue faced by the Ritz Carlton Philadelphia in the value that is being delivered to customers. We have found through research and reviews that the clients are dissatisfied with their experiences when staying at the Ritz Carlton and most agree that it does not live up to the Ritz Carlton brand.

By utilizing market research and evaluating employees’ and customers’ perceptions, we will be able to pinpoint where the issues lie in delivering the service expected by guests. By reevaluating the internal marketing strategies currently in place at the Ritz Carlton Philadelphia we believe we can solve any domestic issues the company is facing that is keeping customers from being satisfied with their service. We can ensure employees are being recruited and trained properly and are delivering the high-quality service associated with the Ritz-Carlton name. Through communicating the current condition of the Ritz and the current renovations being undertaken, guests will not be surprised when they see the construction and will be less upset when they are affected by it because they were made aware previously.

We want to ensure this hotel is delivering service consistent with the rest of the brand and that even though the hotel is currently under construction- guests still receive an excellent stay and want to come back when the renovations are complete.

Table of Content

1.0 Introduction ..............................................................................................................................3

2.0 Situational Analysis ………………………………………………………………………….3

2.1 Internal analysis…………….…………………………………………….…………...3

2.1.1 Organization Overview………………………………………………...…4

2.1.2 SWOT…………….……………………………………………………….5

2.1.3 Customer’s Profile……………………………………………………….12

2.2 External Analysis…………………………………………………………………….13

2.2.1 Environmental Analysis………………………………………………….13

2.2.2 Industry Analysis………………………………………………………...17

2.2.3 Competitor Analysis……………………………………………………..19

2.2.4 Target Market Analysis………………………………………………….22

2.3 Summary of Situational Analysis……………………………………………………24

3.0 Marketing Problem …………………………………………………………………………25

4.0 Marketing Strategies ……………………………………………………………………….26

4.1 Research……………………………………………………………………….…..…26

4.2 Internal Marketing………………………………………………………….………..28

4.3 Communication………………………………………………………………………29

5.0 Conclusion …………………………………………………………………………………..30

Appendix………………………………………………………………………………………..31

References……………………………………………………………………………………….39

1.0 Introduction

The Ritz-Carlton is a chain within the Marriott brand. Marriott International is a hotel company that operates, licenses, and franchises hotels and timeshares throughout the world. Marriott International is a leading lodging company with more than 4,400 properties in 87 countries and territories. Founded by J. Willard and Alice Marriott and guided by Marriott family leadership for nearly 90 years, the company is headquartered in Bethesda, Maryland, USA. At Marriott, the search is never-ending for inventive ways to serve the customers, provide opportunities for their associates, and grow the business. The company that began as a nine-seat A&W root beer stand is recognized today as a top employer. With its superior business operations, it conducts them based on five core values: putting people first, pursuing excellence, embracing change, acting with integrity, and serving the world.

2.0 Situational Analysis-

Situational analysis is a collection and analyzation of internal and or external forces that may influence the Ritz Carlton’s performance and choice of strategies. This report also assesses the Ritz Carlton’s current strengths, weakness, opportunities and threats (Web Finance, Inc. 2016). It also assesses the external forces like political, economic, social-cultural, technology and environmental. This reports looks at both internal and external factors that could or will affect the Ritz Carlton

2.1 Internal Analysis

Internal Analysis is the process of identifying and analyzing the internal characteristics of the Ritz Carlton. This analysis explains internal factors and features that differentiate and distinguish the Ritz Carlton. (Trinity WW, LLC 2015).

2.1.1 Organization Overview

Ritz-Carlton is a luxury hotel chain under the Marriott Brand. The Philadelphia location is a century-old historic landmark building in Center City Philadelphia located at 10 Avenue of the Arts. It has 299 rooms and 18 meeting rooms. There is a 10 Arts Bistro and 10 Arts Lounge located in the lobby. The hotel has a fitness center and spa. It offers a Ritz Kids program to teach kids about the environment and encourage sustainability. The building was originally a bank built in 1907. It became the Ritz-Carlton in 1931. It's only steps away from City Hall and the Subway, with unique food and dining options all around. Next to the hotel is the Residences at the Ritz-Carlton, which is an extended-stay hotel for guests seeking accommodations for a longer stay with full service and amenities available (The Ritz-Carlton LLC, 2016).

The Ritz-Carlton brand as a whole prides itself on empowering its employees and establishing pride in their title as "ladies and gentlemen serving ladies and gentlemen" (The Ritz-Carlton LLC, 2016). Ritz-Carlton is known worldwide for their outstanding customer service (The Ritz-Carlton LLC, 2016). They hold themselves to a unique gold standard and stress a "6th Diamond" (even though the AAA diamond ratings only range from 1-5) to express their level of service to the guests- the sixth is for their mystique, emotional engagement, and functionality (The Ritz-Carlton LLC, 2016). As opposed to an official mission statement, the Ritz-Carlton operates and is guided by this credo (The Ritz-Carlton LLC, 2016).

The Credo

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 ambiance. The Ritz-Carlton experience enlivens the senses, instills well-being, and fulfills even the unexpressed wishes and needs of our guests." (The Ritz-Carlton LLC, 2016)

2.1.2 SWOT Analysis

A SWOT analysis takes an in-depth look at a company's internal environment by evaluating its strengths and weaknesses, as well as assessing the company's external environment by looking at potential opportunities and threats to the business (Kotler, 2014). Appendix 1 is an example of a SWOT diagram; this shows the strengths, weakness, opportunities and threats that the Ritz-Carlton is currently facing.

Strengths

Architecture

The hotel was originally a bank called Girard Trust Exchange Bank that was designed and created to resemble the Pantheon in Rome. The aesthetics of the building make it an attractive tourist spot. (The Ritz-Carlton LLC, 2016)

Location

The hotel is right in the heart of the city. The Ritz Carlton is very easy to get to by using public transportation making it convenient for the business traveler. The building is located across the street from the City Hall subway station and regional rail; this makes it easily accessible by public transportation. The location of the hotel in Center City is also a high point because research shows that consumers staying in luxury hotels are more likely to seek out other luxury activities like dining out (Rogers 2014). Due to the central location of the hotel, there are luxury activities such as shopping and dining out available everywhere which can help the hotel appeal to higher income consumers. There are also plenty of luxury leisure activities available within the hotel like the fine dining or the spa services available to guests. (Rogers, 2014). Rewards Points Program

Marriott already has a well-known presence in the reward program realm. Now as Marriott purchases Starwood, who also has their compensation program Starwood Preferred Guest, this will make the program even bigger. It increases Marriott's reach for customers. When Marriott Rewards and Starwood Preferred Guest combine, Marriott will be the largest loyalty program in the hospitality business (Clampet, 2016). Arne Sorenson, the CEO of Marriott told CNBC that “they wanted to create a combined plan that offered everything a guest could want: ‘Something that is even more powerful for our customers so they’ll say ‘Why should I get a card with anyone else?’”(Clampet 2016). This program would change the hospitality industry by raising the standards of loyalty programs, and Marriott would have a large client base. As you see in Appendix 2 and 3 we see how Reward programs influence customers buying patterns and their decisions. (Harland, 2015) In Appendix 2 and 3, the graph explains that loyalty programs can impact customer’s shopping behaviors, influence the frequency of the client of visits and increase in customers spending habits due to the advantages of the programs benefits. The reward program can increase repeat guests because of the brand loyalty. More than half of all Americans are enrolled in a travel award program. (Macke, 2015a). Travelers that are active members in hotel reward programs are typically more experienced travelers and, therefore, are more likely to stay at midscale, upscale, and upper upscale/luxury hotels. (O'Donnell, 2015). Parent Company