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Marriott’s Customer- Focused E-Business Strategy
ByAarzoo JainArnav YadavJabir AlamJoslin Mary JosephMitali SinhaPrerna PandeyShreyash Joshi
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Shall Cover..
• Introduction • History• Marketing mix of Marriott• CRM• The E-business strategy• Gap model• Consumer behavior• RATER
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Introduction
• Headquarter in Washington, US• Marriott became the first hospitality company to
win ISO-100 award• It had more than 2600 operating units in US in
2003, and workforce of 145000 employees across 65 countries
• In 1980, company launched Marriott Automated Reservation System for Hotel Accommodation
• In 1998, company adopted an e-business strategy with Siebel System
Contd..
Contd..
Marriott’s portfolio-• Marriott Hotel & Resorts• JW Marriott Hotels & Resorts• Renaissance Hotels & Resorts• Courtyard by Marriott• Residence Inn by Marriot.• Fairfield Inn by Marriott• Towneplace Suites by Marriott• The Ritz Carlton Hotels & Resorts• Ramada International Hotels & Resorts• Marriott Conference Centers• Marriott Vacation Club• Horizons by Marriott Vacation Club• The Ritz-Carlton Club• Marriott Grand Residence Club• Marriott Executive Apartments• Marriott Execustay
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History
• In 1927, J. Willard Marriott set up a nine-seat root beer shop in Washington
• In 1937, Hot Shoppe Inc. ventured into airline catering • Company ventured overseas, acquiring new airline
catering kitchen• In 1967, its name changed to Marriott Corporation• In 1982, Marriott acquired Host International a leading
service provider
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Marketing Mix of Marriott
ProductsThe core product of Marriott is to provide lodging facility• Guest rooms• Food and beverages• Conference facilities• Executive lounge• Express Check-In services• Resorts• Parking facilities
Contd
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Contd…
Place• Hybrid VMS/multi channelPromotion• Personal selling• Non Personal (Brochures, TV, Billboard Etc.)Process• E-booking• Desk booking
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Contd…
People• Hotel management• Employees• Customers• ShareholdersPhysical Evidence• Uniform of the employees• Website of Marriott• Infrastructure
Contd
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Contd…
Price• Value is the Quality I get for the Price I Paid• Value pricing• High price and high service• Yield management- They offer discount on limited early
purchases, higher price on late purchases and the lowest on unsold inventories.
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CRM
• 1980’s – MARSHA• 1996’s –www. marriott.com • 1998’s – E-business strategy, IT application: sales, accounting and HR.
(CRM Application – Siebel system)Benefits of E-CRM• Elimination of the lag-time between clients original requests for
housing and their receipt of a Marriott confirmation.• An increase in reservation accuracy• An increase in clients’ or association members satisfaction• A decrease in the time you spend managing reservation problems
Contd
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Contd
Acquiring
Satisfying
Retaining
Enhancing
Marriott places special emphasis on finding, attracting and retaining high value customers through integrated sales and marketing efforts
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The E-Business Strategy
The e-business strategy emphasized on increasing revenues earned per customer. By employing e-business strategy, Marriott wanted to have greater control over the company’s worldwide operations. The four key objectives of the e-business strategy included-
• Serving customer proactively
• Personalizing service offerings
• Enhancing brand loyalty
• Cross selling
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Gap Model
Consumer behavior in services
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People Processing Possession Processing
Mental Stimulus Processing
Information Processing(directed at intangible assets)
e.g., airlines, hospitals,haircutting, restaurants, hotels,
fitness centers
e.g., freight, repair, cleaning, landscaping,
retailing, recycling
e.g., broadcasting, consulting,education, psychotherapy
e.g., accounting, banking, insurance, legal, research
In Marriott, people are critical
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RATER in Marriott
Reliability
Assurance
Tangibility
Empathy
Responsiveness
Satisfaction with Marriott
Brand loyalty
Recommend others
Likeliness to visit
Contd
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Contd…
Reliability• Staff performing services right the first
time• Performing the services at the time
promised• Experienced staff• Accuracy in billing• Accuracy of food orders• Accurate information about hotel services• Advance and accurate information about
prices• Timely housekeeping services• Availability of transport facilities• Reliable message service
Assurance• Friendliness of staff • Courteous employees• Well-trained and staff
Responsiveness
• Keeping customers informed about
when the service will be performed
• Availability of staff to provide service
• Quick check-in and check-out
• Prompt breakfast service Contd
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Contd…
Tangibility • Modern and comfortable furniture • Appealing interior and exterior hotel de´cor• Attractive lobby• Cleanliness and comfort of rooms• Spaciousness of rooms• Hygienic bathrooms and toilets• Convenient hotel location• Neat and professional appearance of staff• Availability of swimming pool, sauna and gym• Complimentary items• Visually appealing brochures, pamphlets, etc.• Availability of non-smoking areas in
restaurants• Image of the hotel
Empathy• Giving special attention to the
customer• Calling the customer by name• Availability of room service• Understanding the customers’
requirements• Listening carefully to complaints• Problem-solving abilities of staff• Customer loyalty program
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