Executive summary:

In the emerging global economy, e-business has increasingly become a necessary component of
business strategy and a strong catalyst for economic development. The integration of information
and communications technology (ICT) in business has revolutionized relationships within
organizations and those between and among organizations and individuals. Specifically, the use
of ICT in business has enhanced productivity, encouraged greater customer participation, and
enabled mass customization, besides reducing costs.

Marriott hotel has using latest e-business strategy. Marriott has more focus on e-business
technology to acquire more satisfied customer. They create their web site such way that customer
can find all information quick and easily. Online business of Marriott is good then other hotel
business. They can keep contact their customer and give good services.

Marriott hotel is doing good customer relation with their e-business. They have provided all
information to customer in one click of mouse because they create their web site such way that
all information can find easily. They also use reward system to customer. They will give bonus
system as well as free room to their loyal customers.

E-business is an important tool to make success their business. Use different types of e-business
tools to expand your business and make loyal and satisfied customer. Marriott is using their
online service such way that customer will know all information easily.

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Objective of The study:
The objective is to understand and validate the use of an enabling strategy for the success
of Services Marketing strategy using a real-life case of an organization in the Hospitality
Industry, where the competition is fierce and their exist a lot of challenges. Additionally, it
is also important to understand the importance of the HRM policies and Organizational
coordination to make a strategy successful, which is also discussed, briefly.

2
 Research Methodology:
The objective of the study will be accomplished by conducting a systematic design, collection,
analysis and reporting of data and findings that are relevant to different situations facing by the
company.

1. Data Collection:-
 Primary data:-
• Questionnaires
• Conduct interview of company’s employees
 Secondary data:-
• Magazines
• Journals
• Internet
• Books
2. Sampling Design:-

 Type of sampling: -
• Convenience Sampling
 Sample Size: -
• 50 people
 Sample Area: -
• Ahmedabad

3. Data Analysis:-

The collected data analyses by using various formulas and methods i.e.
correlation analysis, by defining dependent and independent variables will also make use

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 of graphs, tables, charts and pictures to make the reader understand it easily and less time
consuming.
4. Presentation :-

Final report would be drafted by following the logical sequence. Presentation data
would be such that it inculcates interest in the reader to read further.

5. References :-

The references would be provided as and when project proceed. Till now only
company website and company journal have been referred.

Statement of the Problem:

In recent years, IT strategy has played a major role in the successes of the business strategies.
Marketing of Hospitality services has been always challenging. To enable a successful Services
Marketing strategy, the company needs to have enabling strategies and one of them may be E-
Business Strategy. Find out the effective implementation of E-Business strategy.

4
 CHAPTER 1
INTRODUCTION OF MAKETING OF SERVICES

1.1 Definition :

“A form of product that consists of activities, benefits, or satisfactions offered for sale
that are essentially intangible and do not result in the ownership of anything.”

“Services are deeds, processes, and performances”.

- Valarie Zeithaml & Mary Jo Bitn

“Something that can be bought and sold but which cannot be dropped on your foot”

Examples of Service Industries:

• Health Care

o Hospital, medical practice, dentistry, eye care

• Professional Services

o Accounting, legal, architectural

• Financial Services

o Banking, investment advising, insurance

• Hospitality

o Restaurant, hotel/motel, bed & breakfast,

o Ski resort, rafting

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 • Travel

o Airlines, travel agencies, theme park

• Others:

o Hair styling, pest control, plumbing, lawn maintenance, counseling services, health club.

1.2 Introductions of services:

Service plays an important role in every national’s economy and country economy
always depends on service infrastructure like transportation, communication, education and
government services. In today's economy, you don't have to produce anything to get rich not
have to employ anybody. Now day’s money rests on bigger markets and more ways to make
money. Having a name, a status, an idea can be sufficient. E. g. entertainment and sports figures
make money by bringing people happiness. A service is a financial activity that is basically
intangible and does not result in the ownership of anything.

Service can not be owned by anyone, The American economy is quickly becoming
service leaning. According to the Monthly Labor Review Online, after Second World War
factory jobs declined in figure, while service-based employment increased. And it is increasing
with rapid growth. Difference between services and manufacturing processes comprises the
nature of outputs and the primary production processes, which are closely related. Service inputs
include the facility where the service is provided, any products that are essential in providing the
service. Even product-based organizations must give and manage a service package for their
clientele. The bunch of services might include pre-sale services such as technical advice and
dependable delivery, as well as post-sale services such as prompt repair and training. Not like
most products, services are intangible, inseparable, variable and perishable.

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1.3 Service classification:
Service Factory
There is less intensity of human contact with low labour intensity and low interaction and
customization. Example for this kind of service are hotels, there is less of staff than customer like
in a restaurant also one waiter takes care of many tables and customer have no customized
service because they have to select from a menu and that only will be served, same in room sale
variation is not there, guest has to choose from, what hotel have rooms are not customized as per
guest choice., same in public transportation also less staff takes care of many customers and
customer cannot customize the routes of transportation system. Insurance services, museums,
airlines also come under the same classification. (Leask, A, 1999)

Service Shop:
It is classified as high degree of variation and interaction but low labour intensity so there
is high customization with less labour intensity examples like maintenance, servicing, where
customer interaction is more and serviced as per customer’s choice and also no need of much
man power, some other examples like hospitals, repairing of goods etc. (Anon, 2000)

Mass Service:
It relates to high labour intensity and low variety and interaction, so customization is less
but mass worker works in such organization e.g. banks, retailing industries, where enough man
power is used but there is less of interaction between customer and bidder. Highly standardise
with less of customization, customer have to pick up from what is available for them, same in
banks also you have to choose from the selected scheme not what you want but, which one is

7
more nearer to your needs. And same thing applies to schools, collages also which are exampled
as less interaction with high labour intensity. (Leask, A, 1999)

Professional Service:
Service that can hardly be standardised with numerous human contacts, it can be
customised and also some time one to one human interaction. Examples which are covered by
this kind of services are professional jobs like lawyers, doctors, engineering, consulting etc. if
light on to lawyers work, a lawyer interact with the client and do as the client ask for, as per the
clients need. And same in the profession of engineer and doctor also. If examples take from the
hospitality and tourism a boutique hotel and first class airline service are good example, in a
boutique hotel rooms are smaller and can be customised as per guest need, so these are less
standardised. And same in first class on airline with high customisation and one to one guest
interaction. (Anon, 2000)

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1.4 Service Marketing:

Services marketing is marketing based on relationship and value. It may be used to

market a service or a product.

Marketing a service-base business is different from marketing a goods-base business.

There are several major differences, including:

1. The buyer purchases are intangible

2. The service may be based on the reputation of a single person
3. It's more difficult to compare the quality of similar services
4. The buyer cannot return the service

The major difference in the education of services marketing versus regular marketing is
that apart from the traditional "4 P's," Product, Price, Place, Promotion, there are three additional
"P's" consisting of People, Physical evidence, and Process Service marketing also includes the
servicewomen referring to but not limited to the aesthetic appearance of the business from the
outside, the inside, and the general appearance of the employees themselves. Service Marketing
has been relatively gaining ground in the overall spectrum of educational marketing as developed
economies move farther away from industrial importance to service oriented economies. What is
marketing? Marketing is the flow of goods and services from the producer to consumer. It is
based on relationship and value. In common parlance it is the distribution and sale of goods and
services. Marketing can be differentiated as:

• Marketing of products

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 • Marketing of services.

Marketing includes the services of all those indulged may it be then the wholesaler
retailer, Warehouse keeper, transport etc. In this modern age of competition marketing of a
product or service plays a key role. It is estimated that almost 50% of the price paid for a
commodity goes to the marketing of the product in US. Marketing is now said to be a term which
has no particular definition as the definitions change everyday.

"Managing the evidence" refers to the act of informing customers that the service
encounter has been performed successfully. It is best done in subtle ways like providing
examples or descriptions of good and poor service that can be used as a basis of comparison. The
underlying rationale is that a customer might not appreciate the full worth of the service if they
do not have a good benchmark for comparisons.

However, it is worth remembering that many of the concepts, as well as many of the
specific techniques, will work equally well whether they are directed at products or services. In
particular, developing a marketing strategy is much the same for products and services, in that it
involves selecting target markets and formulating a marketing mix. Thus, Theodore suggested
that "instead of talking of 'goods' and of 'services', it is better to talk of 'tangibles' and
'intangibles'". Levitt also went on to suggest that marketing a physical product is often more
concerned with intangible aspects (frequently the `product service' elements of the total package)
than with its physical. Sales after service are very important in service sector properties. Charles
Revson made a famous comment regarding the business of Revlon Inc.: `In the factory we make
cosmetics. In the store we sell hope.' Arguably, service industry marketing merely approaches the
problems from the opposite end of the same spectrum.

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1.5 Service Characteristics:
Intangibility of service:
Service cannot be defined as physical attributes because it cannot be seen, tasted, felt,
heard, touched or smelled before it is bought, so it is difficult for consumers to tell in advance
what they will be getting. (Sheila Webber, 2001) The experience consumers obtain from the
service has an impact on how they will perceive it. And perceived service is risky and difficult to
evaluate, customer tend to rely more on personal references, reputation, facilities of the service
provider as an indication of quality. Service marketers identify the feelings that they want the
customer to experience as a result of the service.
They stress the positive elements of tangibility in the service, make all communications
with the customer very clear and focus constantly on service quality. For example when anybody
buys a car, he/she takes it to test drive, if they like it than only pay and buy the car ,never pay for
test drive. But if you buy a meal at a restaurant, you do not know what is going to serve. Now
buyers only look at tangible evidence like cleanliness, decoration, staff movement, which
provide the information of quality of intangible service. (Kotler et al. 1996, 61)

Inseparability of service:
Services cannot be separated from the service supplier. It is labour intensive. After it is
sold, the customer can not be taken away from the producer it is simultaneously produced and
consumed. It is being produced at the same time that the customer is receiving. So customer is
also part of the product. For example in a restaurant, you order your meal, during the time of
waiting and delivery of the meal, the service provided by the service provider is all part of the

11
service production process and is inseparable, the staff in a restaurant are as part of the process as
well as the quality of food provided.

Perishability of service:
A characteristic of services unused capacity cannot be stored or saved for future sale or
use; it perishes after a specific time. (Sheila Webber, 2001) For example a 200 room hotel that
only sells about 160 rooms for particular night. It can not inventory the remaining 40 rooms and
sell them next night; revenue lost from these 40 unsold rooms is gone forever, because of
perishable character of service. Same in a play ground or airlines, where if a match is held today
and few seats are not sold lets take because of less popular team are playing these seats can not
be sold in next match. And in airlines also for a destination all seats are not sold, revenue will be
gone once journey over, so if these seats were sold even at low price some revenue could have
earn. Thus service is perishable; it perishes if it is not used at particular time.

Heterogeneity or variability of service:

It is very difficult to make each service experience identical, since services are not
produced by a single entity and then distributed to consumers, the quality of services may vary
depending on who provides the service as well as when, where, and how they are provided.
There is a strong possibility that the same question would be answered slightly differently by
different people and even by the same person at different times. (Wolak. R, 1998) A guest can
receive excellent service one day and not that good another day from the same person, because
service person may have some personal problem or not have felt well. If travelling by plane the
service quality may differ from the first time you travelled by that airline to the second, because
the airhostess is more or less experienced. (Kotler et al. 1996, 61)

Simultaneity of service:
PServices are being produced and consumed at the similar time. You buy not just the
service but also a section of how the service is created and delivered. Services companies cannot
classify functions like sales, customer service, etc. like you can in manufacturing. Yes, they still
possibly need a marketing department, but all workforce who deal with customers need to be

12
 FIGURE: 1 SERVICE CHARECTERISTICS

1.6 Service Marketing Mix:

Having discussed the characteristics of a service, let us now look at the marketing mix of
a service.

The service marketing mix comprises off the 7’p’s. These include:

• Product
• Price
• Place
• Promotion
• People
• Process
• Physical evidence.

PRODUCT:

An Object or Service - Mass Produced on

Large Scale - With a Specific volume of units

A global company is one that can create a single product and only have to tweak elements
for different markets. For example, Coca-Cola uses two formulas (one with sugar, one with corn
syrup) for all markets. The product packaging in every country incorporates the contour bottle
design and the dynamic ribbons in some way, shape, or form. However, the bottle or can also
includes the country’s native language and is the same size as other beverage bottles or cans in
that country.

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PRICE:

Amount/Consideration paid by Customer for services or product. It can vary from

location to location & based on the demand in the local markets.

Price will always vary from market to market. Price is affected by many variables: cost of
product development (produced locally or imported), cost of ingredients, cost of delivery
(transportation, tariffs, etc.), and much more. Additionally, the product’s position in relation to
the competition influences the ultimate profit margin. Whether this product is considered the
high-end, expensive choice, the economical, low-cost choice, or something in-between helps
determine the price point.

PLACEMENT:
How the product is distributed is also a country-by-country decision influenced by how
the competition is being offered to the target market. Using Coca-Cola as an example
again, not all cultures use vending machines. In the United States, beverages are sold by
the pallet via warehouse stores. In India, this is not an option. Placement decisions must
also consider the product’s position in the market place. For example, a high-end product
would not want to be distributed via a “dollar store” in the United States. Conversely, a
product promoted as the low-cost option in France would find limited success in a pricey
boutique.

PROMOTION:

After product research, development and creation, promotion (specifically advertising) is

generally the largest line item in a global company’s marketing budget. At this stage of a
company’s development, integrated marketing is the goal. The global corporation seeks to reduce
costs, minimize redundancies in personnel and work, maximize speed of implementation, and to
speak with one voice. If the goal of a global

Company is to send the same message worldwide, then delivering that message in a
relevant, engaging, and cost-effective way is the challenge.

Effective global advertising techniques do exist. The key is testing advertising ideas
using a marketing research system proven to provide results that can be compared across
countries. The ability to identify which elements or moments of an ad are contributing to that

14
success is how economies of scale are maximized. Market research measures such as Flow of
Attention, Flow of Emotion and branding moments provide insights into what is working in an
ad in any country because the measures are based on visual, not verbal, elements of the ad.

ESSENTIAL ELIMANTS BEYOND THE 4P’s

Resources:
Include: finances, physical, human, organizational, informational resources
More resources: Better competitive advantage.

Relationships:
Four types: 1) Win-win, 2) Win-lose, 3) Lose-lose, & 4) Lose-Win (Cust-vndr)
Community marketing: Strategy that focuses and leverages win-win relationships.
Community marketing may not be created but can be considered as cultivation of a natural social
response.

Business models:
Business model innovation can make the competitions’ product superiority irrelevant.
Business model allows the marketer to change the game rather than competing on a level play-
field.

Customer Focus:
Companies focus their activities and products based on customer demands.
Three ways of doing this: Customer-driven approach, sense of identifying market changes,and
product innovation approach.

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Let’s now look at the remaining 3 P’s:
PEOPLE

SERVICE PERSONNEL

1. Careful Selection and Training

2. Laying Down Norms, Rules, Procedures for Persistence Performance
3. Constitant Appearance
4. Reduce Human Interface – Automation computerization

An essential ingredient to any service provision is the use of appropriate staff and people.
Recruiting the right staff and training them appropriately in the delivery of their service is
essential if the organization wants to obtain a form of competitive advantage. Consumers make
judgments and deliver perceptions of the service based on the employees they interact with. Staff
should have the appropriate interpersonal skills, attitude, and service knowledge to provide the
service that consumers are paying for. Many British organizations aim to apply for the Investors
In People accreditation, which tells consumers that staff are taken care off by the company and
they are trained to certain standards.

E.g.: Customer, service employees, other customers

PROCESS

An organize flow of tasks which have to be or have been completed to provide services to
the consumer.

Production/delivery of service/customer interface Processes Should Be:

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 • COMPUTERISED (wherever feasible)
• MECHANIZED
• RATIONALISED
• SIMPLE

Refers to the systems used to assist the organization in delivering the service.
Imagine you walk into Burger King and you order a Whopper Meal and you get it delivered
within 2 minutes. What was the process that allowed you to obtain an efficient service delivery?
Banks that send out Credit Cards automatically when their customer’s old one has expired again
require an efficient process to identify expiry dates and renewal. An efficient service that
replaces old credit cards will foster consumer loyalty and confidence in the company.

E.g. Service delivery systems

• Back stage
• Front stage

PHYSICAL EVIDENCE

Where is the service being delivered? Physical Evidence is the element of the service
mix. Which allows the consumer again to make judgments on the organization? If you walk into
a restaurant your expectations are of a clean, friendly environment. On an aircraft if you travel
first class you expect enough room to be able to lie down.

Physical evidence is an essential ingredient of the service mix; consumers will make
perceptions based on their sight of the service provision which will have an impact on the
organizations perceptual plan of the service.
E.g., Atmosphere like Décor, music etc., equipment, facilities, Uniforms.

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 FIGURE:2 SERVICE MARKETING MIX

CHAPTER 2

E-BUSINESS

2.1 Definition:
• E-business (electronic business) , derived from such terms as “e-mail” and “e-commerce”,
is the conduct of business on internet, not only buying and selling but also servicing
customers and collaborating with business partners
• E-business is just business using electronic network to transform a business process or
business system to create superior value for current or potential customers
• Companies are using the web to buy parts and supplies from other companies, to
collaborate on sales promotion and to do joint research.
• Electronic commerce or e-commerce refers to a wide range of online business activities
for products and services. It also pertains to “any form of business transaction in which the
parties interact electronically rather than by physical exchanges or direct physical
contact.”

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• E-commerce is usually associated with buying and selling over the Internet, or conducting
any transaction involving the transfer of ownership or rights to use goods or services
through a computer-mediated network. Though popular, this definition is not
comprehensive enough to capture recent developments in this new and revolutionary
business phenomenon. A more complete definition is: E-commerce is the use of electronic
communications and digital information processing technology in business transactions to
create, transform, and redefine relationships for value creation between or among
organizations, and between organizations and individuals.

2.2 Introduction:
In the emerging global economy, e-commerce and e-business have increasingly become a
necessary component of business strategy and a strong catalyst for economic development. The
integration of information and communications technology (ICT) in business has
revolutionized relationships within organizations and those between and among organizations
and individuals. Specifically, the use of ICT in business has enhanced productivity, encouraged
greater customer participation, and enabled mass customization, besides reducing costs. With
developments in the Internet and Web-based technologies, distinctions between traditional
markets and the global electronic marketplace-such as business capital size, among others-are
gradually being narrowed down. The name of the game is strategic positioning, the ability of a
company to determine emerging opportunities and utilize the necessary human capital skills
(such as intellectual resources) to make the most of these opportunities through an e-business
strategy that is simple, workable and practicable within the context of a global information
milieu and new economic environment. With its effect of leveling the playing field, e-
commerce coupled with the appropriate strategy and policy approach enables small and
medium scale enterprises to compete with large and capital-rich businesses. On another plane,
developing countries are given increased access to the global marketplace, where they compete

19
with and complement the more developed economies. Most, if not all, developing countries are
already participating in e-commerce, either as sellers or buyers. However, to facilitate e-
commerce growth in these countries, the relatively underdeveloped information infrastructure
must be improved.
Among the areas for policy interventions are:
● High Internet access costs, including connection service fees, communication fees, and
hosting charges for websites with sufficient bandwidth;
● Limited availability of credit cards and a nationwide credit card system;
●Under developed transportation infrastructure resulting in slow and uncertain delivery of
goods and services;
● Network security problems and insufficient security safeguards;
● Lack of skilled human resources and key technologies (i.e., inadequate professional IT work
force)
● Content restriction on national security and other public policy grounds, which greatly affect
business in the field of information services, such as the media and entertainment sectors;
● Cross-border issues, such as the recognition of transactions under laws of other ASEAN
member-countries, certification services, improvement of delivery methods and customs
facilitation; and
●The relatively low cost of labor, which implies that a shift to a comparatively capital
intensive solution (including investments on the improvement of the physical and network
infrastructure) is not apparent.

It is recognized that in the Information Age, Internet commerce is a powerful tool in the
economic growth of developing countries. While there are indications of ecommerce patronage
among large firms in developing countries, there seems to be little and negligible use of the
Internet for commerce among small and medium sized firms. E-commerce promises better
business for SMEs and sustainable economic development for developing countries. However,
this is premised on strong political will and good governance, as well as on a responsible and
supportive private sector within an effective policy framework. This primer seeks to provide
policy guidelines toward this end.

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2.2.1. Features of E-business:
• Links their internal and external data processing systems more efficiently and flexibly.
• E-business refers to more strategic focus with an emphasis on the functions that occur
using electronic capabilities.
• E-business involves business processes spanning the entire value chain: electronic
purchasing and supply chain management, processing orders electronically, handling
customer service, and cooperating with business partner.
• Special technical standards for e-business facilitate the exchange of data between
companies.
• E-business can be conducted using the Web, the Internet, intranets, extranets, or some
combination of these.
• One of the first to use the term was IBM, when, in October, 1997, it launched a thematic
campaign.

2.2.2. Application of E-Business:

• Manufacturing sector
• Tourism
• Telecommunication
• Hospitals
• Retail
• Customer service
• Auction
• Hotels

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2.3 E-business Benefits Include:
• Highly Accessible -Businesses can operate 24 hours a day, 7 days a week, 365 days a
year
• Increased Customer Loyalty -Additional channels to contact, respond to, and access
customers helps contribute to customer loyalty
• Improved Information Content-In the past, customers had to order catalogs or travel to
a physical facility before they could compare price and product attributes. Electronic
catalogs and Web pages present customers with updated information in real-time about
goods, services, and prices
• Increased Convenience –e-business automates and improves many of the activities that
make up a buying experience
• Increased Global Reach -Businesses, both small and large, can reach new markets
• Decreased Cost -The cost of conducting business on the Internet is substantially smaller
than traditional forms of business communication

Benefits to Organizations
• Global reach
• Cost reduction

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 • Supply chain improvements
• Extended hours: 24/7/365
• Customization
• Efficient procurement
• No city business permits & fees.

Benefits to Society
• Telecommuting
• Higher standard of living
• Hope for the poor
• Availability of public services

Benefits to Consumers
• Ubiquity
• More products & services
• Cheaper products & services
• Instant delivery
• “Get it your way”

2.3.1 Limitations of E-Business:

• Host of security
• Legal & financial problems
• The incoherence of the web
• Concerns about security & flexibility
• In using web as a purchasing tool.

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2.4 E-business vs. E-commerce:
• Electronic business transactions involving money are “E-Commerce" activities.
• E-commerce refers to online transactions – buying and selling of goods and/or services
over the Internet, E-business covers online transactions, but also extends to all Internets
based interactions with business partners, suppliers and customers such as: selling direct
to consumers, manufacturers and suppliers; monitoring and exchanging information;
auctioning surplus inventory; and collaborative product design. These online interactions
are aimed at improving or transforming business processes and efficiency.
• Improved accuracy, quality and time required for updating and delivering information on
products and/or services.

• Access for customers to catalogues and prices - 24 hours x 7 days.

• Improved ease, speed and immediacy of customer ordering.

• Enhanced market, industry or competitor intelligence acquired through information

gathering and research activities.

24
 • New distribution channels via the electronic delivery of some products and services, for
example, product design collaboration, publications, software, translation services,
banking, etc.

• Expansion of customer base and growth in export opportunities.

• Reduces routine administrative tasks (invoices and order records) freeing staff to focus on
more strategic activities.

2.4.1. How do e-commerce and e-business differ?

• E-commerce–the buying and selling of goods and services over the Internet.

• E-business –the conducting of business on the Internet including, not only buying and
selling, but also serving customers and collaborating with business partners.

How E-business differs From Normal Business While Considering

Consumer Behaviour Model

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 FIGURE: 3 E-BUSINESSES MODEL

2.4.2 E-BUSINESS MODEL:

E-business Models (Traditional)

26
 FIGURE: 4 TRADITIONAL E-BUSINESSES MODEL

New Trends in E-business: E-government

FIGURE: 5 NEW MODEL OF E-BUSINESS

2.5 How is the Internet relevant to e-commerce?

The Internet allows people from all over the world to get connected inexpensively and
reliably. As a technical infrastructure, it is a global collection of networks, connected to share
information using a common set of protocols. Also, as a vast network of people and information,

27
the Internet is an enabler for e-commerce as it allows businesses to showcase and sell their
products and services online and gives potential customers, prospects, and business partners
access to information about these businesses and their products and services that would lead to
purchase. Before the Internet was utilized for commercial purposes, companies used private
networks-such as the EDI or Electronic Data Interchange-to transact business with each other.
That was the early form of e-commerce. However, installing and maintaining private networks
was very expensive. With the Internet, e-commerce spread rapidly because of the lower costs
involved and because the Internet is based on open standards.

2.5.1. Ways to make your business successful through internet:

Internet the way we do business today. It has broken physical boundaries and has provided
each small, big and mega businesses a global business opportunity. Your online presence, your
website provides you an equal opportunity to have your presence felt.
The irony those among the millions of websites ruling the internet world only thousands are
successful. As they say you not only need a quality product or service, you need to package and
most importantly sell it. That leads us to the question how to get successful online? Simple
answer packages your website and makes people aware of it.
The basic rules of business apply here too with the difference that here you cater to a global
market. The internet offers you with a variety of tools which applied correctly can make the
winning difference.

Process of making effective web site:

Your website needs a design and for this you need a web designer. Correct web design,
colours and correct placement of web elements on your web page are important aspects for
your site to succeed.

28
Remember to maintain a contact page which mentions your contact details on the site have a
sitemap and design the site for users. It is of utmost importance that you keep search engine
optimisation factors in mind. Have your pages titled. For more on this contact a web designer.

If you are in business retail or manufacturing a good idea is to have your site e-com
enabled. You must have shopped on the internet, if not you are among the chosen few. If you
have you must be aware of the shopping cart on the e-commerce site.
The shopping cart enables your visitors to manage their shopping well. You will need a
payment gateway and a merchant account to receive money for sales. To test out your site
integrate it with PayPal and try out the shopping experience.

• So your site seems to be ready now. Next step. Make your site presentable and make it
known. So we are now into advertising and marketing of your website.
• Here note this that 95% of websites gets visitors from referred from search engines.
These search sites work like a gateway to the internet world.
• Your next step towards making your site known to others is to follow the search engine
optimization tips offered by the search engines while making your site.
• You should look for the terms people use to search your type of service or product and
create your site around it. As in the advertising world headings for your pages should be
catchy. Internet visitors scan web pages for information instead of reading through them,
so all the rules of advertising world which helps in writing the content for the
advertisement apply here. Do it yourself, get to know what the inverted pyramid style of
writing is or hire a web designer, see specialist to do it for you.
• With pay per click, the internet advertising world has revolutionized. It offers you
advertising opportunities on the net for a few shillings. Check out Google Ad sense or
Overture PPC campaigns. These are offered by mostly the leading search engines and
your advertisements are displayed on the search result pages of these sites for keywords
you choose. If controlled optimally you can benefit from these. Use PPC to get visitors to
your site during the launching period. Dual benefits. One you get visitors though your site
is too new and second due to advertising, your site gets noticed. If you are not aware of
this, use the services of a PPC management company to do this for you.

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• So what else to look out for? Interaction. Give reasons to your visitors to come back to
your site. Start a newsletter campaign. Offer your visitors something free. Give them tips.
Start a blog. Make your visitors come back to your site.
• Give them options to sign up for your newsletter free. You get their emails and use a
mailer program to send out regular mails to them.

CHAPTER 3
MARRIOTT BACKGROUND

30
3.1 Introduction:

MARRIOTT INTERNATIONAL, INC. – CORPORATE PROFILE

Marriott International, Inc. is a worldwide hospitality leader with operations in the United
States and 67 other countries and territories. The company had approximately 137,000 associates
at 2009 yearend and is headquartered in Bethesda, Md. Its operations include:

Marriott Lodging, at the end of the fourth quarter 2009, operates or franchises 3,420 hotels,
residences, services apartments and resorts totaling 595,461 rooms, including 12,891 timeshare
villas, worldwide. Its portfolio of lodging brands includes: Marriott Hotels & Resorts (upper-
upscale full service brand, 545 hotels including 43 JW Marriott Hotels and Resorts, and 11
Marriott Conference Centers)

The Ritz-Carlton Hotels (luxury, 103 hotels, residences and services apartments)

Bulgari (luxury, 2 hotels); Renaissance Hotels & Resorts (upper upscale full-service brand, 143
hotels)

Courtyard (upper moderate-price limited service brand, 858 hotels); Residence Inn (extended-
stay limited service brand, 608 inns); Fairfield Inn (lower moderate-price limited service brand,
629 inns)

The Ritz-Carlton Destination Club and Residences (fractional and residential timeshare, 13
resorts)

Grand Residences by Marriott (fractional and residential timeshare, 4 resorts); and Marriott

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 Executive Apartments (upscale serviced apartments, 23 properties including 3 other
Serviced Apartments). In addition, ExecuStay by Marriott provides 2,072 furnished corporate
housing units, and Marriott Golf operates 41 golf course facilities around the world.

Synthetic Fuel consisted of four coal-based synthetic fuel production facilities (the “Facilities”).

Because tax credits under Section 45K of the IRC are not available for the production and
sale of synthetic fuel produced from coal after calendar year-end 2007, and because high oil
prices during 2007 were expected to result in the phase-out of a significant portion of the tax
credits available for synthetic fuel produced and sold in 2007, on November 3, 2007, we shut
down the Facilities and permanently ceased production of synthetic fuel. Accordingly, we now
report this business segment as a disc Nontinued operation. The book value of the Facilities was
zero at year-end 2007, as the Facilities have been transferred to third parties. Under the site
leases for the Facilities, we were required to restore the leased premises to substantially the
condition the premises were in when the leases were originally executed. However, we executed
agreements with the lessors of the sites pursuant to which we transferred the Facilities to the
lessors in exchange for the release of our obligations to restore the leased premises to their
original conditions. Costs associated with shutting down the synthetic fuel operation and
transferring the Facilities to the site lessors was not material.

Corporate Office Investor Contact

Marriott International, Inc. Laura Paugh, Senior Vice President, Investor Relations
10400 Fernwood Road (301) 380-7418
Bethesda, MD 20817 Betsy Dahm, Senior Director, Investor Relations
(301) 380-3000 (301) 380-3372
(301) 380-5067 fax

3.2 Background of Marriott:

In 1927, J.William Marriott set up a nine-seat rootbeer shop in Washington and after some time
started serving hot food and named the shop ‘The Hot Shoppe.

32
In 1937, it entered into airline catering at Washington Airport.

In November 1967 the name was changed to Marriott Corporation.

Marriott ventured into economy lodging by launching the first Fairfield Inn in Atlanta, Georgia
in 1987.

In 1993 the operations of Marriott were split into two companies- Marriott International Inc and

In 1997 Marriott completed the $1 bn acquisition of the Renaissance Hotel Group.

Marriott had a presence in vacation ownership resorts through its Marriott vacation

Club International

As part of its proactive efforts to improve customer service, Marriott launched its website
www.marriott.com in 1996.

THE WEBSITE:

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 The website in its homepage had five Icons Hotel Directories- This section had details
such as the name of the hotel, the address and the phone numbers of all the hotels in the Marriott
chain across the world.

Reservations:
By clicking the ‘Make Reservations’ that led to the ‘click hotel availability’ page. Then
after entering the date of arrival and departure and the number of people the page displays the
type of rooms and their.

Meeting Planner:
This section targeted business customers to conducted frequent meetings. These clients could
book a min and max number of rooms and meeting rooms.

Travel Agent:
This section was targeted at travel agents providing them with the information regarding the
codes of hotels and to know the availability of the hotels.

Suggestion Box :
Through this the users could e-mail their suggestions on improving services.

3.3 ABOUT J.W.MARRIOTT:

34
 John Willard “Bill” Marriott, Sr.
(September 17, 1900 – August 13, 1985)

John Willard "Bill" Marriott, Jr. (b. March 25, 1932, Washington, D.C.) is the Chairman and
CEO of Marriott International.

LIFE AND SUCCESS

J.W. Marriott, Jr. is Chairman and Chief Executive Officer of Marriott International, Inc.,
one of the world’s largest lodging companies. His leadership spans more than 50 years, and he
has taken Marriott from a family restaurant business to a global lodging company with more than
3,200 properties in 67 countries and territories.

Mr. Marriott’s vision for the company is to be the world’s lodging leader. It is grounded
in his intense focus on taking care of the guest, extensive operational knowledge, the
development of a highly skilled and diverse workforce, and offering the best portfolio of lodging
brands in the industry.

Under his leadership, Marriott continues to enjoy strong customer, owner and franchise
preference, steady growth and profitability.

35
 Known throughout the industry for his hands-on management style, Mr. Marriott has
built a highly regarded culture that emphasizes the importance of Marriott’s people and
recognizes the value they bring to the organization.

Marriott International’s “spirit to serve” culture is based on a business philosophy

originated more than 80 years ago by his parents, J. Willard and Alice S. Marriott – “Take care
of the associate, and they’ll take care of the guest.” Today, approximately 300,000 Marriott
associates are serving guests in Marriott managed and franchised properties throughout the
world.

Marriott International is also well known as a great place to work and for its commitment
to diversity, social responsibility and community engagement. It has consistently been named to
Fortune’s lists of most admired companies, best places to work and top companies for minorities.

At an early age, Mr. Marriott developed a passion for the business and worked in a
variety of positions in the Hot Shoppes restaurant chain during his high school and college years.

He joined the company full-time in 1956 and soon afterward, took over management of
Marriott’s first hotel. Mr. Marriott became executive vice president of the company, then its
president, in 1964. He was elected chief executive officer in 1972, and chairman of the board in
1985.

Regarded as a lodging innovator, Mr. Marriott began shifting the company in the late
1970s from hotel ownership to property management and franchising. His strategic decision
allowed the company to accelerate its growth and broaden its leadership position.

That transformation culminated in the company’s split into Marriott International, a hotel
management and franchising company, headed by Mr. Marriott, and Host Marriott International,
a hotel ownership company chaired by his younger brother, Richard Marriott.

Mr. Marriott has also worked to compile a family of 18 lodging brands that range from
limited service to full service luxury hotels that meet the needs of any traveler.

Today, the company manages and franchises hotels and resorts under the Marriott, JW
Marriott, Renaissance, Bulgaria, The Ritz-Carlton, Courtyard, Residence Inn, Springhill Suites,

36
Town Place Suites, and Fairfield Inn brand names; develops and operates vacation ownership
resorts under the Marriott Vacation Club International, The Ritz-Carlton Club, Grand Residences
by Marriott, and Horizons brands; operates Marriott Executive Apartments; provides furnished
corporate housing through its Marriott Executes division; operates conference centres; and
manages golf courses.

Mr. Marriott serves on the board of The J. Willard & Alice S. Marriott Foundation. He is
a member of the National Business Council and the Executive Committee of the World Travel &
Tourism Council. He also serves as the chairman of the Mayo Clinic Capital Campaign.

Mr. Marriott recently served on the Board of Trustees of the National Geographic
Society, director of the United States Naval Academy Foundation, chairman of the President’s
Export Council (PEC) and member of the Secure Borders Open Doors Advisory Committee
(SBODAC) and the U.S. Travel and Tourism Advisory Board (TTAB).

He is an active member of The Church of Jesus Christ of Latter-day Saints. He is

married to the former Donna Garff. They have four children and 15 grandchildren and three
great grandchildren.

On May 4, 2006, Marriott received an honorary doctorate of humanities from Weber

State University during the university's 127th commencement. He also delivered the
commencement address during these proceedings.

Marriott's book The Spirit To Serve (1997), written with Kathi Ann Brown and with a
Foreword by James C. Collins, is a personal view of the rise of the Marriott company and
outlines principles of business success.

JW Marriott Jr. is a 2006 nominee for the Hotel Travel Personality of the Year award
from World Travel Awards.

While CEO of Marriott International in 2008, J. Willard Marriott Jr. earned a total
compensation of $8,314,136, which included a base salary of $1,253,654, a cash bonus of
$904,700, no stock, options granted of $5,750,012, and other compensation of $405,77.

3.4 Corporate History

37
1927
• At age 27, J. Willard Marriott enters business with the opening of a nine-seat root beer stand in
Washington, DC. Hot food later added and name changed to The Hot Shoppe.

1929
• Marriott officially incorporated in the state of Delaware as Hot Shoppes, Inc.

1937
• Marriott pioneers airline catering at Washington’s old Hoover Airfield (current site of the
Pentagon) serving Eastern, American and Capital Airlines.

1939
• Beginning of food service management business with account at the U.S. Treasury building.
Other accounts soon followed at government defense plant cafeterias.

1953
• Company stock first offered to the public at $10.25 per share. Offering sold out in two hours of
trading.

1955
• Highway division begins with several shops on the New York State Thruway.

1957
• Marriott opens first hotel, the Twin Bridges Marriott Motor Hotel, in Arlington, Virginia.

1964
• Company name changes to Marriott-Hot Shoppes, Inc. and J.W. Marriott, Jr. elected president
at age 32.

1966

38
• Marriott becomes international, acquiring airline catering kitchen in Caracas, Venezuela.

1967
• Marriott acquires 22-unit Big Boy restaurant chain from founder, Bob Wian.
• Corporate name changes from Hot Shoppes, Inc. to Marriott Corporation at annual shareholders
meeting.

1968
• Marriott begins Roy Rogers fast food restaurant division with first location in Falls Church,
Virginia.
• Stock first listed on the New York Stock Exchange – ticker symbol MHS.

1972
• J.W. Marriott, Jr. succeeds his father as chief executive officer

1979
• Company moves to new international headquarters in Bethesda, Maryland.

1982
• Marriott acquires Host International, and becomes the country’s largest operator of airport
terminal food, beverage and merchandise facilities.
• Marriott acquires Gino’s fast food restaurant chain, and plans to convert most units to Roy
Rogers restaurants.

1983
• First Courtyard by Marriott, moderate price segment hotels, opens near Atlanta, Georgia.
1984
• Marriott enters vacation timesharing business with acquisition of American Resorts Group.

1985

39
• Marriott completes acquisition of Gladieux Corporation, a diversified food service company.
• Marriott completes acquisition of Service Systems, a contract food service company.
• J. Willard Marriott passes away at age 84. J.W. Marriott, Jr. named chairman of the board.
• Marriott acquires Howard Johnson Company, selling hotels to Prime Motor Inns and keeping
350 restaurants and 68 turnpike units.

1986
• Marriott acquires Saga Corporation, a diversified food service management company, making
Marriott the largest food service management company in the United States.

1987
• Marriott completes expansion of its Worldwide Reservation Center in Omaha, Nebraska,
making it the largest single-site reservations operation in U.S. hotel history.
• Marriott acquires The Residence Inn Company, an all-suite hotel chain targeted toward
extended stay travelers.
• Marriott stock listed on the Tokyo Stock Exchange.
• Marriott enters economy lodging segment with the opening of the first Fairfield Inn in Atlanta,
Georgia.
• Marriott transfers Big Boy restaurant system franchise rights to Elias Brothers of Warren,
Michigan.

1988
• Marriott acquires Basic American Retirement Communities (BARC) of Indianapolis, giving
Marriott a major presence in the rental retirement market.
• Marriott’s Senior Living Services division announces development plans for assisted
living/personal care complexes called Brighton Gardens.

1989
• Marriott acquires United Healthserv, Inc., a major provider of housekeeping, maintenance and
laundry services.

40
• Marriott completes transfer of airline catering division to CaterAir International, a private
company led by several members of Marriott’s In-flite Services division senior management.
• Marriott announces corporate restructuring. Plan includes sale of company’s fast food and
family restaurants. Company plans to sharpen focus on mega-markets in lodging and contract
services.

1990
• Marriott sells its Roy Rogers restaurant division to Hardee’s Food System for $365 million.

1992
• Host completes acquisition of Dobbs airport concessions.
• Marriott Corporation announces plan to divide its operation into two separate companies
through a special dividend.

1993
• Marriott completes split of its operations into two companies – Marriott International and Host
Marriott Corporation.

1995
• Marriott International completes acquisition of 49 percent interest in The Ritz-Carlton Hotel
Company.
• Host Marriott Corporation announces plan to divide, through a special dividend, its operations
into two separate companies.
• Marriott Management Services acquires Taylorplan Services, a custodial and Food Service
Company based in the United Kingdom.

41
1996
• Host Marriott Corporation divides into two separate companies. Host Marriott continues to own
hotels and real estate; Host Marriott Services Corporation will operate concessions at airports, on
toll roads and at sports and entertainment attractions.
• Marriott introduces its new all-suite economy hotel – Fairfield Suites by Marriott.
• Marriott International acquires Forum Group, Inc., a leading operator of senior housing, and
merges it with Marriott’s Senior Living Services business.
• Marriott Management Services acquires Russell & Brand, Ltd., a UK-based food services
company.
• Marriott International awarded nationwide food service distribution contract for Boston Market
and Einstein/Noah Bagel Corporation.

1997
• Marriott International reports net income soared 24% in 1996 as sales top $10 billion.
• William J. Shaw named president and chief operating officer of Marriott International. Bill
Marriott retains position of chairman and chief executive officer.
• Marriott introduces a new brand, Marriott Executive Residences.
• Marriott opens its first Towne Place Suites in Newport News, Virginia.
• Marriott International acquires Renaissance Hotel Group for approximately $1 billion. Adds
three brands (Renaissance, Ramada International and New World) and doubles Marriott’s
presence overseas.
• Marriott International launches “Marriott Rewards,” the world’s largest multi-brand frequent
guest program.
• Marriott International announces plans to merge its food service and facilities management
business with Sodexho Alliance’s North American operations, and spin off to shareholders a new
company comprised of its lodging, senior living and distribution service businesses.

1998
• Marriott International increases its ownership interest in The Ritz-Carlton Company LLC to
approximately 98 percent.

42
• Marriott International completes spin off and merger transactions resulting in “New” Marriott
International and Sodexho Marriott Services.
• Marriott International announces it converted the Parc 55 Hotel in San Francisco to a
Renaissance hotel and designated it as Marriott’s 1,500th hotel world-wide.
• Marriott International announces conversion to single class of common stock effective May
21st.
• Marriott International confirms plans to convert Fairfield Suites to Spring Hill Suites by
Marriott.
New product positioned to capture share in the upper moderately priced all-suite lodging
segment.

1999
• Marriott International completes acquisition of ExecuStay; launches corporate housing business
ExecuStay by Marriott.
• Marriott International named to Fortune 500 list of the largest U.S. companies – leads hotel
industry category.
• Marriott Vacation Club International launches new moderately priced resorts, Horizons by
Marriott Vacation Club, and luxury resorts, The Ritz-Carlton Club.
• ExecuStay by Marriott acquires Executive Living, Inc. of Columbus, Ohio, and enters into
exclusive agreement with JBI-Dallas.
• Marriott International, Inc. announces that its Marriott Rewards program is tripling the number
of hotels offering frequent flyer miles and more than doubling the number of miles previously
offered at nine different brands, representing 1,650 hotels.
• The last operating Hot Shoppe closes as Marriott tops 1,800 worldwide hotels – a historic mark
for Marriott.
2000
• Marriott announced the board of director’s approval of the purchase of an additional 25 million
shares, or about 10% of outstanding shares, through the company's ongoing share repurchase
program.
• Marriott is named the official lodging supplier of the 2002 Winter Olympics and the 2000,
2002 and 2004 U.S. Olympic Teams.

43
• Marriott announces the formation of a joint venture with Hyatt and Club Corporation to create
the largest, most comprehensive electronic procurement network.
• Marriott celebrated the opening of its 2,000th property with the Tampa, Florida Marriott Hotel.

2001
• Travel industry impacted by difficult economic climate and events of September 11, 2001.
• Marriott restructuring and other charges in 2001 totaled $271 million, pretax. Net Income
totaled $236 million.
• Marriott opened nearly 50,000 lodging rooms worldwide in 2001.
• Marriott Rewards membership reaches 16 million travelers, remaining the largest and most
preferred loyalty program in the lodging industry.

2002
• Marriott sold the businesses at nine distribution centers and closed four other centers, exiting
Marriott Distribution Service.
• Announced the plan to sell Marriott Senior Living Services to Sunrise Assisted Living, Inc.
• Marriott.com reached six million visits in one month. Reservations through Marriott.com grow
53% versus 2001.
• With other lodging companies, Marriott formed travelweb.com for consumers who wish to
comparison shop.
• Opened the 2,500th hotel, the 950-room J.W. Marriott Desert Ridge Resort & Spa in Phoenix.

2003
• Launched Marriott’s Look No Further, Best Rate Guarantee.
• One third of our room expansion (over 31,000 rooms) was from conversions to Marriott brands
by owners and franchisees of competitor brands.
• High-speed internet access available in 1400 hotels, far outpacing our competition. We also
introduced wireless internet access in lobbies, meeting rooms and public spaces in over 900
hotels.
• Marriott.com booked revenues of $1.4 billion, 25 percent more than the prior year.

44
2004
• Marriott added the 500,000th room to the system with the opening of the West India Quay
Marriott in London’s Canary Wharf. (Number of rooms at year end fell below 500,000 due to
sale of the Ramada International brand.)
• Marriott sold Ramada International brand to Cendant.
• Marriott.com booked revenues of $1.8 billion, 41 percent more than the prior year.
• A record $650 million was returned to shareholders through the repurchase of 14 million shares
of stock.
• Announced Courtyard Joint Venture restructuring, which will result in a reduction of Marriott’s
interest in the joint venture to 21%, Host 4% and Sarofim 75%.

2005
• Marriott formed a joint venture with Whitbread PLC to acquire Whitbread’s portfolio of 46
franchised Marriott and Renaissance hotels of over 8,000 rooms, and Marriott took over
management of the entire portfolio.
• Marriott, along with Sunstone Hotel Investors, Walton Street Capital and Tarsadia Hotels
entered into an agreement to purchase 32 hotels and certain joint venture interests from CTF
Holdings.
The transaction was substantially completed in June 2005.
• Marriott repurchased a record $1.65 billion of its stock.
• Internet sales totaled $3.2 billion in 2005, 42 percent over 2004 levels. Nearly 85 percent of
internet sales were booked on Marriott.com.

2006
• Marriott acquired the largest hotel in Paris; the 782 room Paris Rive Gauche Hotel and
Conference Center.
• Joint venture formed with Whitbread PLC sold to RBS.
• Internet sales totaled $4.3 billion in 2006, 35 percent over 2005 levels. Nearly 87 percent of
internet sales were booked on Marriott.com.
• Marriott repurchased $1.58 billion of the company’s common stock.

45
2007
• Marriott announced partnerships with Nickelodeon and Miller Global Properties, LLC, to co
develop a new lodging resort brand and concept for travelers seeking fun and adventure,
‘Nickelodeon by Marriott.’
• Marriott announced a partnership with the pioneer of the lifestyle boutique hotel, Ian Schrager,
to create Edition, the first truly global boutique lifestyle hotel brand on a large scale.
• Marriott celebrated the opening of its 3,000th property with the JW Marriott Hotel Beijing.
• Internet sales totaled $5.4 billion in 2007, 26 percent over 2006 levels. Over 87 percent of
internet sales were booked on Marriott.com.
• Marriott repurchased $1.78 billion of the company’s common stock.

2008
• The travel industry was impacted by the significant economic decline affecting worldwide
demand and turmoil in the financial markets.
• Marriott restructuring and other charges in 2008 totaled $192 million pretax. Net income
totaled $362 million.
• Marriott Rewards celebrated 25 years. With membership of 30 million, the program has 2,900
participating hotels in 65 countries.
• The company announced its five-point environmental plan to address climate change. As part
of that plan, Marriott committed $2 million to the Amazonas Sustainable Foundation to help
protect 1.4 million acres of endangered rainforest.
• Marriott opened over 33,000 rooms in 2008; nearly 25 percent of those rooms were outside
North America.
• Internet sales totaled $6.4 billion in 2008, 19 percent over 2007 levels. Over 87 percent of
internet sales were booked on Marriott.com. The company’s blog “Marriott on the Move”
generated $2.6 million in gross property-level sales, while guests booked over $2 million using
the new Marriott Mobile booking engine.

46
2009
• William J. Shaw named vice chairman of Marriott International, Arne M. Sorenson named
president and chief operating officer and Carl T. Berquist named executive vice president and
chief financial officer. J. W. Marriott, Jr. retains position of chairman and chief executive officer
and J.W. Marriott III continues to serve as vice chairman of the board of directors.
• Marriott Vacation Club celebrated 25 years. With nearly 400,000 owners, the division has more
than 50 Marriott Vacation Club resorts throughout the US, Caribbean, Europe and Asia.
• Marriott restructuring and other charges in 2009 totaled $213 million pretax. The company also
recorded non-cash pretax timeshare impairment changes of $752 million largely related to the
plans to reduce prices and development at luxury fractional and residential resorts to accelerate
cash flow. Net losses totaled $346 million.
• Marriott opened over 38,000 rooms in 2009; nearly 25 percent of those rooms were outside
North America.
• Internet sales totaled $6.0 billion in 2009, a 6 percent decline from 2008 levels. Nearly 85
percent of internet sales were booked on Marriott.com.

47
3.5 Financial Report
MARRIOTT INTERNATIONAL REPORTS THIRD QUARTER RESULTS:

BETHESDA, MD – October 8, 2009 – Marriott International, Inc. (“Marriott”)

(NYSE:MAR) today reported third quarter 2009 adjusted income from continuing operations
attributable to
Marriott of $53 million, a 57 percent decline over the year-ago quarter, and adjusted diluted
earnings per share (“EPS”) from continuing operations attributable to Marriott shareholders of
$0.15, down 55 percent. The company’s EPS guidance for the 2009 third quarter, disclosed on
July 16, 2009, totaled $0.09 to $0.14.

The reported loss from continuing operations attributable to Marriott was $466 million in
the third quarter of 2009 compared to reported income from continuing operations attributable to
Marriott of $94 million in the year-ago quarter. Reported diluted losses per share from
continuing operations attributable to Marriott shareholders was $1.31 in the third quarter of 2009
compared to diluted EPS from continuing operations attributable to Marriott shareholders of
$0.25 in the third quarter of 2008.

Adjusted results for the 2009 third quarter exclude $752 million pretax ($502 million
after-tax and $1.41 per diluted share) of impairment charges, which Marriott previously
disclosed, related to the timeshare segment. See the table on page A-14 of the accompanying
schedules for the detail of these impairment charges and their placement on the Consolidated
Statements of Income.

Adjusted results for the 2009 third quarter also exclude $8 million pretax ($4 million
after-tax and $0.01 per diluted share) of restructuring costs and other charges. Restructuring
costs totaled
$9 million pretax and primarily included severance costs and timeshare facilities exit
costs.
Other charges totaled $1 million of pretax earnings and primarily reflect the $3 million
favorable impact of the revaluation of residual interests from prior timeshare note sales due to

48
three default triggers curing in the quarter, partially offset by $2 million of reserves for
guarantees and contract cancellations. Of the total restructuring costs and other charges in the
third quarter, cash payments are expected to be $5 million. See the table on page A-13 of the
accompanying schedules for the detail of these restructuring costs and other charges and their
placement on the Consolidated Statements of Income.

Finally, adjusted results for the 2009 third quarter also exclude$13 million after-tax non-
cash charge ($0.03 per diluted share) in the provision for income taxes primarily related to the
treatment of funds received from certain foreign subsidiaries that is in ongoing discussions with
the Internal Revenue Service. Adjusted results for the 2008 third quarter exclude a $29 million
after-tax non-cash charge ($0.08 per diluted share) in the provision for income taxes primarily
related to a 1994 tax planning transaction.

J.W. Marriott, Jr., chairman and chief executive officer of Marriott International, said,
“Revenue per available room across our North American system declined less than expected
during the third quarter as leisure travelers responded to attractive promotions and great values in
our hotels. With solid cost controls, our hotels translated better than expected occupancy rates to
stronger than expected fee revenue and earnings.

“The hotel industry has been challenged by the economic environment. We’ve worked
hard to rein in costs and right-size our businesses and those efforts are paying off. Our hotels are
in great shape; owners and customers prefer our brands; and we enjoy very strong market share
premiums. As we look ahead, while the recovery may be slow and perhaps uneven, our
continued focus on driving revenue, controlling costs and strengthening our balance sheet will
position us to benefit from an improving economy.”

In the 2009 third quarter (12-week period from June 20, 2009 to September 11, 2009),
REVPAR for the company’s worldwide comparable company-operated properties declined 23.5
percent (21.1 percent using constant dollars) and REVPAR for the company’s worldwide
comparable System wide properties declined 21.4 percent (19.9 percent using constant dollars).

49
Markets outside North America were impacted by the difficult economic climate, the Olympics,
the timing of holidays and concerns about the H1N1 virus. International comparable company3
operated REVPAR declined 28.9 percent (22.3 percent using constant dollars), including a 22.7
percent decline in average daily rate (15.5 percent using constant dollars) in the third quarter of
2009.

In North America comparable company-operated REVPAR declined 20.6 percent and

comparable system wide REVPAR declined 19.3 percent. REVPAR at the company’s
comparable company-operated North American full-service and luxury hotels (including
Marriott Hotels & Resorts, The Ritz-Carlton and Renaissance Hotels & Resorts) was down 20.2
percent driven by a 14.6 percent decline in average daily rate.

Marriott added 79 new properties (10,380 rooms) to its worldwide lodging portfolio in
the 2009 third quarter, including over 8,600 North American limited-service rooms. Three
properties (503 rooms) exited the system during the quarter. At quarter-end, the company’s
lodging group encompassed 3,362 properties and timeshare resorts for a total of over 586,000
rooms. As of the end of the third quarter, the company’s worldwide pipeline of hotels under
construction, awaiting conversion or approved for development totaled approximately 105,000
rooms. The company expects to open over 33,000 rooms in 2009.

Reported results for the 2009 third quarter, the adjusted results and the associated
reconciliations are shown on pages A-1, A-11, A-13, A-14 and A-17 of the accompanying
schedules. The following paragraphs reflect adjusted results where indicated.

MARRIOTT REVENUES
Totaled approximately $2.5 billion in the 2009 third quarter compared to $3.0 billion for
the third quarter of 2008. Base management and franchise fees declined 14 percent to $216
million reflecting worldwide declines in REVPAR in all brands offset in part by fees from new
hotels. With continued soft lodging demand trends worldwide, third quarter incentive
management fees declined 67 percent. The percentage of company-operated hotels earning
incentive management fees declined to 20 percent in the 2009 third quarter compared to 55

50
percent in the year-ago quarter. Year-to-date 25 percent of company-operated hotels earned
incentive management fees compared to 62 percent in the prior year. Nearly all incentive
management fees came from hotels outside of North America in the 2009 quarter compared to 68
percent in the 2008 quarter. Worldwide comparable company-operated house profit margins
declined 490 basis points in the third quarter reflecting weak REVPAR offset by continued
efficiency improvements at the property level. House profit margins for comparable company-
operated properties outside North
America declined 430 basis points. North American comparable company-operated house
profit margins declined 520 basis points from the year-ago quarter.

Owned, leased, corporate housing and other revenue, net of direct expenses, declined $8
million in the 2009 third quarter, to $12 million, primarily reflecting weaker operating results at
owned and leased properties and lower corporate housing profits partially offset by a $6 million
transaction cancellation fee.

Third quarter adjusted Timeshare segment contract sales declined 42 percent to $176
million excluding a $24 million allowance for fractional and residential contract cancellations
recorded in the quarter. Contract sales of core one-week timeshare intervals totaled $164 million
as marketing incentives encouraged demand.

In the third quarter of 2009, adjusted Timeshare sales and services revenue declined 35
percent to $251 million and, net of expenses, declined to $13 million from $47 million in the
2008 third quarter. Adjusted results reflected lower development profit due to continued soft
demand for timeshare, fractional, and residential products, and unfavorable report ability.
Services profit was also lower largely due to higher maintenance costs associated with unsold
inventory and lower rental rates.

Adjusted Timeshare segment results, which includes Timeshare sales and services
revenue, net of direct expenses, as well as base management fees, equity earnings, non
controlling interest and general, administrative and other expenses associated with the timeshare
business, totaled $9 million in the 2009 third quarter compared to $49 million in the prior year

51
quarter. The 2008 third quarter segment results reflected a net $10 million pretax impairment
charge for a fractional and residential consolidated joint venture project. The $10 million charge
in 2008 included a
$22 million negative adjustment in timeshare direct expenses partially offset by a $12
million pretax ($8 million after-tax) benefit associated with the joint venture partner’s share,
which is reflected in net losses attributable to non controlling interest, net of tax.

ADJUSTED GENERAL, ADMINISTRATIVE AND OTHER expenses for the 2009 third
quarter totaled $143 million, a 14 percent decline from the year-ago quarter largely reflecting
cost reductions throughout the organization. The quarter also included a $15 million unfavorable
impact associated with deferred compensation compared to the 2008 quarter (offset by a similar
decrease in the provision for taxes) and $5 million of certain litigation expenses. Excluding these
items, general, administrative and other expenses for the third quarter of 2009 declined 25
percent compared to the third quarter of 2008.

(LOSSES) GAINS AND OTHER INCOME totaled a loss of $1 million and included a $5
million impairment charge on an investment partially offset by $3 million of gains on the sale of
real estate and a $1 million gain on the extinguishment of debt. The prior year’s third quarter
gains totaled $7 million and included $2 million of gains on the sale of real estate, a $2 million
gain from the sale of the company’s interest in a joint venture and $3 million of returns from
joint venture investments.

INTEREST EXPENSE decreased $6 million in the third quarter primarily due to lower interest
rates on short-term borrowings and lower debt balances partially offset by lower capitalized
interest associated with construction projects.

ADJUSTED EQUITY IN (LOSSES) EARNINGS totaled an $11 million loss in the quarter
compared to $2 million in earnings in the year-ago quarter. Losses in the 2009 quarter primarily
reflected losses in four joint ventures and the impairment of one investment.
NET LOSSES ATTRIBUTABLE TO NONCONTROLLING INTERESTS, NET OF TAX
totaled $3 million in the quarter compared to $10 million in the year-ago quarter.

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BALANCE SHEET
At the end of third quarter 2009, total debt was $2,660 million and cash balances totaled
$130V million, compared to $3,095 million of debt and $134 million of cash at year-end 2008.
COMMON STOCK
Adjusted weighted average fully diluted shares outstanding totaled 366.3 million in the
2009 third quarter compared to 368.0 million in the year-ago quarter. The remaining share
repurchase authorization, as of September 11, 2009, totaled 21.3 million shares. No share
repurchases are planned in 2009.

On August 6, 2009, the Board of Directors declared the issuance of a stock dividend
payable on September 3, 2009, to shareholders of record on August 20, 2009. For periods prior
to the stock dividend, all share and per share data in our condensed consolidated financial
statements and related notes have been retroactively adjusted to reflect the stock dividend.

FOURTH QUARTER 2009 OUTLOOKS

While Marriott typically provides a range of guidance for future performance, the current
global economic and financial climate continues to make predictions very difficult. Therefore,
the company is unable to give its typical guidance. Instead, the company is providing the
following assumptions which it is using for internal planning purposes. For the fourth quarter,
the company assumes North American comparable system wide hotel REVPAR declines of 13 to
16 percent. For comparable system wide hotels outside North America, the company assumes
REVPAR declines of 16 to 18 percent on a constant dollar basis. Total fee revenue could be
$310 million to $320 million. Owned, leased, corporate housing and other revenue, net of direct
expenses, could total $15 to $20 million.
In the fourth quarter, the company assumes Timeshare sales and services revenue, net of
direct expenses, will total approximately $15 million, including a note sale gain of approximately
$10 million to $15 million. Fourth quarter Timeshare contract sales could total $185 million to
$195 million.

53
 The company anticipates that general, administrative and other expenses will total about
$185 million to $190 million in the fourth quarter of 2009, a roughly 20 percent decline from the
adjusted 2008 fourth quarter amount.
Based upon the above assumptions and a 38 percent tax rate, adjusted diluted EPS from
continuing operations attributable to Marriott shareholders for the 2009 fourth quarter could total
$0.20 to $0.23.

The company expects investment spending in 2009 will decline by more than 50 percent from
2008 levels to approximately $325 million to $375 million. This investment spending estimate
includes $145 million to $155 million for capital expenditures and maintenance capital spending,
$20 million to $30 million for net timeshare development, $90 million to $100 million in new
mezzanine financing and mortgage loans, $35 million to $45 million for contract acquisition
costs and $35 million to $45 million in equity and other investments (including timeshare equity
investments).

2010 OUTLOOK
As in 2009, the company is unable to provide its typical guidance for 2010. Instead,
Marriott is providing the following assumptions, which it is using for internal planning purposes.
For the full year 2010, the company expects the business climate, particularly the pricing
environment, to remain difficult. For worldwide comparable system wide hotels, the company
assumes full year 2010 REVPAR will be flat to down 5 percent (on a constant dollar basis) with
performance strengthening over the year. The company expects REVPAR in international
markets to show greater relative year over year strength than North American markets.

The company expects to open 25,000 to 30,000 rooms in 2010 as most hotels expected to
open are already under construction or undergoing conversion from other brands. Given these
assumptions, full year 2010 fee revenue could total $1,050 million to $1,110 million. The
company estimates that, on a full-year basis, one point of worldwide system wide REVPAR
impacts total fees by approximately $10 million to $15 million pretax.
For its timeshare business, the company assumes 2010 timeshare contract sales could be in line
with 2009 levels.

54
 The company expects to adopt FAS 166 and 167 at the beginning of 2010, which will
impact its accounting for securitized timeshare loans. Assuming the consolidation of the existing
portfolio of securitized loans, the company expects assets to increase by $950 million to $1,025
million, liabilities to increase by $1,020 million to $1,120 million, and shareholders’ equity to
decline by $70 million to $95 million. Pretax earnings in 2010 would increase by $30 million to
$50 million as a result of the accounting change, but no change in cash flow is anticipated.

The company expects its 2010 general and administrative costs to be modestly higher
than in 2009. As part of its ongoing budget process, the company continues to evaluate its
timeshare earnings outlook and investment spending estimates for 2010. Based on its preliminary
outlook for 2010, excluding the impact of FAS 166 and 167, the company anticipates continued
meaningful reductions in debt levels in 2010.

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 CHAPTER 4
MARRIOTT E-BUSINESS STRATEGY

4.1 Web Sites & E-Business System:

Design a user friendly web portal to enhance customer service and thereby increase the customer
retention and attract new customers.

1990: Through IT services can be made easily accessible & boost revenues
Need of a single-point interface for all customer transaction

1996: Very Basic Web Site launched – very user friendly

Functionalities: Hotel Directories, Reservations, Meeting Planner, Travel Agent
Realization and Suggestion Box
Unique Features: Meeting Planners and Travel Agent

1998: Siebel Systems, CRM vendor engaged. Investment: $70MM over 2 year period

"Take care of your employees and they'll take care of your customer” J.W.MERRIOTT

“We wanted same system globally so we could execute our VISION consistently around the
world” – Michael Dalton, Sr. VP, Corporate Sales.

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4.1.1 The E-Business Strategy
Marriott’s e-business strategy aimed at transforming itself from a property-focused to
customer focused company Previously, Marriott measured its financial performance on the
basis of the revenues earned for each of its individual property.

The e-business strategy emphasized on increasing revenues earned per customer.

The four key objectives of the e-business strategy included serving customers proactively,
personalizing the service offerings according to the needs and preferences of the customers,
enhancing brand loyalty and awareness, and cross-selling...

4.1.2 The Website and E-Business System

The website’s home page had five main icons including hotel directories, reservations,
meeting planners, travel agents and a suggestion box.

The hotel directories section had details such as the name of the hotel, the address and phone
numbers of all the hotels in the Marriott chain across the world.

Clients could select the city and the hotel where they wanted accommodation, on the screen.

4.1.3 INFORMATION TECHNOLOGY USAGE:

• Web Site Enhancements: Based on Sales, Customers’, & Operation’s input enhanced the
Web Site.
• Technology Upgrades: Remains to be Leader in technology throw usage of latest and faster
available infrastructure in it segment.
• Department of Work & Family: Addresses the home and work balance issues
• Staff Skills: Marriot’s approach is not to focus on skills instead on the attitudes & behavior
technology thru’ usage of latest and fastest available infrastructure in its segment.

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• Fast Pace: Does not waste time on automation and development of most needed and foreseen
functionalities.
• User Friendliness: Conducts internal/external QC audits on the enhanced/new functionalities
prior to deployment.
• Support: 24x7 around the year.

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4.2 The Benefits:
In 1999, Marriott earned revenues of $150 million from online bookings through its website.

Estimates for the year 2000 indicated that every month, the website received three million
hits, making it one of the largest viewed websites in the US hospitality industry.

By 2002, the website emerged as a money-spinner for Marriott with online sales of $1 bn.

On August 25, 2003 Marriott was given the prestigious CIO-100 award and became the only
company in the hospitality industry win the award for the fourth time.
Marriott was also ranked as the most admired company in the lodging industry in 2003 by the
Fortune magazine.
Fortune magazine selected Marriott on various criteria such as innovativeness, quality of
Management, employee talent, use of technology, social responsibility, financial soundness,
long-term value and quality of products and services

59
4.3 Marriott International Case:
(This case discusses the customer-focused e-business strategy of Marriott International (Marriott), a
world leader in the hospitality industry and franchisor of a broad portfolio of hotels and related
lodging facilities.

Founded by J. Willard Marriott, the company is now led by son

J.W. (Bill) Marriott Jr.

Today, Marriott International has about 3,150 lodging properties located in the United States and 67
other countries and territories.

In year 2003, it had a network in excess of 2,600 operating units in the US and a workforce of 145,000
employees, spread over 65 countries across the world.

Marriott’s diverse portfolio of popular hotel brands included leading brands such as Marriott, JW
Marriott, Renaissance, Ramada International, Courtyard, Residence Inn, and The Ritz-Carlton,
among others.

Delighting Customers

Since its inception, Marriott has focused on providing excellent customer service. The company
offered personalized services to its clients, whom it referred to as its ‘guests.’

It had introduced several innovative technologies and implemented them even before its
competitors did. For instance, in the 1980’s, the company launched Marriott Automated
Reservation System for Hotel Accommodation (MARSHA), a totally new concept of hotel
reservation in the hospitality industry at that time.

Marriott made continuous improvements in its business processes in its efforts to ‘delight’ its
customers. In 1998, the company adopted an e-business strategy to reorient itself to serve its
customers better.

The company was operational zing a strategy to switch over from a decentralized property-
orientation to a centralized customer-orientation in its services.

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 CHAPTER 5
PROJECT IMPLEMENTATION

5.1 Data Analysis:

On the basis of questionnaire I have analyze the response of 50 respondents and try to put
analysis in tabular form. In this I will deal with questions one by one.

1 Are you regular customer of Marriott?

(A) Yes

(B) No

50
45
40
35
30
25 NO
45
20 YES
15
10
5
5
0
YES NO

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According to [Graph: 1] that most of the customers were regular customer of Marriott hotel.
They use hotel frequently on time. One of the important reasons of using Marriott hotel was
their e-business strategy and customer relationship.

2 When you visited hotel last time?

(A) Last Week

(B) Last month

(C) Last 6 month

(D) Last Year

(E) More than 1 Year

According to [Graph: 2] that customer of Marriott hotel used on different time period. In that
survey customer used Hotel like this, 5 customers used Hotel since last week, 15 customers

62
 used hotel since last month, 10 customers used hotel since last 6 months, 15 customers used
hotel since last year and 5 customers used hotel since more than 1 year.

3 Are you using online services of Marriott?

(A) Yes
(B) No

According to [Graph: 3] that maximum customer used online service of Marriott hotel. 40
people believed that Marriott online services are good and they provide fantastic online
services while 5 people did not like online services.

63
4 If yes which service you like most?
(A) Advance Booking
(B) Mail Services
(C) Room information
(D) Message services
(E) Mobile alert

According to [Graph: 4] that customers who like to used online services they preferred
different types of services. Marriott provides different services to customer. Customers using
different services according their test and preference.

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5 Are you satisfied with online booking?
(A) Yes

(B) No

According to [Graph: 5] that Marriott online booking service is good and 46 people would
like to used online booking. While 4 people didn’t like it out of 50 peoples.

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6 Do you like e-business of Marriott?
(A) Yes
(B) No

According to [Graph: 6] that Marriott e-business is providing good and useful data for the
customer. 42 peoples like it while 8 people didn’t like it out of 50 peoples.

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7 Is the web site of Marriott providing useful information?
(A) Yes
(B) No

According to [Graph: 7] that Marriott designed their web site such way that customer can
easily find all data from their site as well as they provides their financial data on their web
site. So that 43 people like web site while 7 people didn’t like out of 50 peoples.

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8 If no then give your opinion for improving the web site?
(A) Website design

(B) Information about vacant room

(C) Update information

(D) Specific ____________

According to [Graph: 8] that Marriott web site was created good but some customer didn’t
like it because of some reasons. They provide some useful information to improve it.

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9 Duration of online queries response?

(A) On that day

(B) Within two days

(C) Week

According to [Graph: 9] that Marriott did good while fulfill the customers queries. Most of the
customer got their queries on that day. 5 customers didn’t get their queries on that day.

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10 Your suggestion for improvement of Marriott e-business.

___________________________________________

Search Engine Optimization can further enhance the customer experience

None keep up the good work

Online Payment

Quick information provide of queries

Sales

5
10

SEO
KEEP UP GOOD WORK
15
ONLINE PAYMENT
INFORMATION ABOUT QUERIES

20

According to [Graph: 10] that most of the customer would like to use Marriott e-business.
Different people use different services of e-business. Some customer gives suggestion to add
some more services.

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 CHAPTER 6
FINDING AND SUGGESTIONS

Findings:

• The strategies that have been adopted by Marriott are excellent compared to other
service providers.

• E-business strategy of Marriott hotel is good then other service industry.

The respondents have got good impression about Marriott E-business strategy.

• Most of the respondents of Ahmedabad have used Marriott hotel frequently

because of their online services.

• The customers of Marriott are satisfied their services and care of customer
through e-business.

• The customers of Marriott are brand loyal and they prefer their online business.

Suggestions:

• Marriott should expand Search Engine Optimization can further enhance the
customer experience.

• Marriott should update their web site and provide their financial position.

• Marriott should use online services to attract their customer.

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 • Marriott using latest technology but they have to improve it make customer
satisfied.

• Marriott should expand their message and mail system to make customer
awareness about new services.

CHAPTER 7

CONCLUSION

Conclusion
The feeding frenzy surrounding e-business may be new to this generation, but the same
patterns of behavior occurred in the development of earlier technologies, including the steam
engine, telegraphy, automobiles, airplanes, and radio.

Marriott has followed same strategy of e-business. They used latest technology as well as
online services. So customer would like to use their e-business. Customer uses different services
of e-business like online booking, online payment and vacant room information. Many hotels
their in world but due to strong e-business strategy Marriott make their name top.

Surely, it’s confusing, too many thought everything “e” was a magic bullet. But the
technology that fueled that initial Internet bubble is what fuels the successful businesses of
today. So, in the long term, e-business changed how business is conducted and it is here to stay.
We are looking at the future business of the world.

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 BIBLIOGRAPHY

BOOKS:
PHILIP KOTLER (13th EDITION)

NEWS PAPER:
BUSINESS STANDARAD
Marriott international case study
WEB SITE:
www.marriotthotels.com
www.learnmarketing.com
www.e-business.com
www.wikipedia.com

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 ANNEXURE
(Questionnaire)
MERRIOTT SURVEY

Name:

Age: Type of Business:

Gender: Mobile No:

1 Are you regular customer of Marriott?

(A) Yes

(B) No

2 When you visited hotel last time?

(A) Last Week

(B) Last month

(C) Last 6 month

(D) Last Year

(E) More than 1 Year

3 Are you using online services of Marriott?

(C) Yes

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(D) No
4 If yes which service you like most?
(F) Advance Booking
(G) Mail Services
(H) Room information
(I) Message services
(J) Mobile alert

5 Are you satisfied with online booking?

(A) Yes

(B) No

6 Do you like e-business of Marriott?

(C) Yes
(D) No
7 Is the web site of Marriott providing useful information?
(C) Yes
(D) No
8 If no then give your opinion for improving the web site?
(A) Website design

(B) Information about vacant room

(C) Update information

(D) Specific ____________

9 Duration of online queries response?

(A) On that day

(B) Within two days

(C) Week

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10 Your suggestion for improvement of Marriott e-business.

___________________________________________





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