MANAGEMENT DECISION CASE: Hotel Choices and Their Appeal to Different Markets Wh
ID: 356444 • Letter: M
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MANAGEMENT DECISION CASE: Hotel Choices and Their Appeal to Different Markets When you are planning a trip and need to choose a full-service Marriott Hotels and Resorts will love to work hotel at your destination, how do you go about mak- with your market segment. On the other hand, ing that choice? For many people, the decision about you need a company that can provide accommodations which hotel to book depends on why they need it and for your employees that are relocating to a new location what they want from the experience. For example, or are on a temporary assignment and need long-term suppose you're headed on a big family beach summer housing of up to a month or more. For this market seo vacation complete with multigenerational travelers ment, Residence Inn by Marriott or Marriott Executive including kids-clearly you'll want a choice location on Apartments is a terrific option. or near the beach! But you'll also want other amenities Bottom line, Marriott has done a superb job of such as free high-speed Internet, free Wi-Fl, spacious recognizing the various market segments that exist rooms (suites preferred), free breakfast, free parking. in the lodging industry and developing brands and a swimming pool for when the beach gets "old" for appeals to differentially target each of those segments the kids but they still want to get wet, a refrigerator, a Such a strategy includes all types of differentiation- microwave, and a location close to family restaurants geographic, demographic, psychographic, and behaye and other family-friendly activities. Given this profile, a ioral. Based on the needs and wants of the different logical choice might be a hotel such as Fairfield Inn and segments, a positioning strategy is developed that Suites that is clearly positioned for low-priced but qual communicates the distinctive features and value-added ity amenities and is highly family-centric perhaps of each brand to its target consumers. Alternatively, what if you're a married person and Despite Marriott's broad market coverage, they want to get away to someplace a bit upscale to prop- continue to look for opportunities to identify under- erly celebrate your 10th wedding anniversary? The served markets. Indeed, they recently announced the grandparents are watching the kids for a couple days introduction of one of their European-based proper. (lucky you) and you want a nice place in the city where ties, AC Hotels, to the United States. This hotel chain is you can enjoy some luxury and pampering that you designed to appeal to younger Gen Y and older Millen- do not often experience. In this case, your want room nials, who are more technology and design savvy than service, a full-service spa, a fitness center, a pool, high- any of Marriott's current market segments. Marriott years a nice view, a location with top restaurants and shops Those locations will feature an urban lifestyle environ- nt where customers can stay constantly connected n like this, a JW Marriott in through social media in coffeehouse-like spaces-in he one in Manhattan will fill short, a lodging experience designed to appeal to this important emerging target market. Since members of speed Internet, a comfortable and spacious room with expects to open 200 AC Hotels in the next 10 nearby, and a general attitude from hotel staff that it's me a downtown location like t those needs nicely But what if you instead are a frequent business trav- this segment are expected to spend $34 billion a year eler, traveling along and seeking the regularity business-focused hotel? Your needs will yet again be Marriott to add this new edgy and urban brand to its quite different from the two scenarios above. In this lucrative line of properties. case you want a comfortable room, basic bar and food service on the premises, easy check-in and check-out a business center with free printing, an exercise room, and meeting space for connecting with clients. Here, a 1,Go to Marriott's website (www.marriott.com) and Marriott Courtyard makes great sense of a on hotel rooms in the near future, the time is ideal for Questions for Consideration n case you haven't guessed, each of the above hotelperuse the different types of lodging brands offered Select any three and based on the discussion differentiation in the chapter, identify the relevank sources of differentiation offered by each. brands is operated by Marriott. In fact, Marriott has 18 different lodging brands, each of which targets its appeal to different market segments with different needs and wants with varying accommodations and amenities. 2. Even with all of Marriott's brands, they still do no The super-luxury market segment, where the hotel ser- have any hotel properties in the truly "budget cate vice staff call you by name and know whether you like gory of lodging. That's a category occupied by prop a feather or foam pillow, is well-served by Ritz-Carlton erties such as Days Inn and Budgetel. Why do yo and JW Marriott. Are you a meeting planner booking a think Marriott does not have a brand in this catego large convention and meeting space along with enough of lodging? Do you think Marriott shouldete guest rooms to accommodate your company's sales market segment, and, if so, provide an idea of wha force for a national meeting? No problem-many of the budget Marriott brand might be like. enter this 192 PART TWO Use Information to Drive Marketing DecisionsExplanation / Answer
1.The lodging brands offered by Marriott:
EDITION: For big family trip : Edition marries innovative design with vibrant food ,beverage and entertainement experiences
JW MARIOTT: for married one : Enriching experiences thoughtfully crafted by associates who truly love what they do
ST. REGIS : For business traveller: where exquisite immersive experiences, impeccable service, modern indulgence and refined taste define every stay.
2. I think marriott should enter this market segment.. According to the budget , they would plan food, entertainment and service to reach budget category lodging
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