M6A6 Building Strategic Plan Assignment

– Marriott Business Case

ABRAHAM OKEWUMI
 Market Insights

Global Hospitality market demand is on an upward trajectory, with an

anticipated steady Compound Annual Growth Rate (CAGR of 10.43%),
projecting substantial expansion from a valuation of US$ XX Billion in
2023 to a striking (US$ 7997647.2 million) by 2028. Top Players Listed
in the Hospitality Market Report are:-
Four Seasons Hotels & Resorts, NH Hotel Group, InterContinental
Hotels Group PLC (IHG), Marriott International Inc., Melia Hotels
International, Hilton, AccorHotels, Shangri-La Hotels & Resorts,
Wyndham Hotel Group, Hyatt Hotels Corporation, The Cheesecake
Factory, Jin Jiang International Hotel Management Co. Ltd., Kimpton
Hotels & Restaurants, Xenia Hotels and Resorts Inc, Sunstone Hotel
Investors inc…
(360 trending reports. Feb. 2024. Hospitality Market Size Massive Volumes, Analysis, Tables and
Figures, and Forecast 2031 | Latest 112 Pages Insights)
 Marriott Market Status

Comparing the current results to its competitors, Marriott International Inc

reported Revenue increase in the 4 quarter 2023 by 2.9 % year on year.
The revenue growth was below Marriott International Inc's competitors'
average revenue growth of 22.89 %, achieved in the same quarter. With a
net margin of 13.91 %. Marriott International Inc achieved higher
profitability than its competitors. Marriott International Inc. Net Income in
the 4 quarter 2023 grew year on year by 26%, slower than its competitors'
income growth of 411.12 %
Also, Stock Performance as at Q4 2023 was 56.39% while the Competitors
had 18.51%. Also, Marriott maintained a market share of 16.68% (by total
revenue) while the competitors had a share of 83.32%.

Source: CSI Market.com

https://csimarket.com/stocks/compet_glance.php?code=MAR
Marriott’s SWOT Analysis

Strengths
Strong Brand Portfolio: Marriott International Inc (NASDAQ:MAR) boasts a diverse portfolio of more than 30 brands, including Marriott,
Courtyard, and Sheraton, which are among the largest. The company's newer lifestyle brands like Autograph, Tribute, Moxy, Aloft, and Element
further enhance its brand power. This diverse portfolio allows Marriott to cater to a wide range of customer preferences and price points,
strengthening its market position.
Presence all over the globe: Marriott is a global name. No matter where you are, in whichever country, what’s that country’s economic and
political conditions, you will be able to find a J. W. Marriott there without any doubt. Marriott is present in over 127 countries all across the globe.

Robust Financial Performance: The company's financial performance in Q3 2023, as reflected in its 10-Q filing, underscores its financial
strength. The total revenues and net income have shown a significant increase compared to the same period in the previous year. This strong
financial performance indicates the company's ability to generate profits and create value for its shareholders.

Asset-Light Business Model: Marriott primarily operates under an asset-light business model, managing or franchising hotels rather than owning
them. This model allows the company to expand rapidly with lower capital expenditure, thereby enhancing its profitability and return on
investment.

Source: GuruFocus Research. (2023, November 3). The Marriott International Inc (MAR) Company: A Short SWOT Analysis.
 Marriott’s SWOT Analysis (Cont’d)

Weaknesses
Dependence on North American Market: Although Marriott operates globally, two-thirds of its total rooms are
located in North America. This heavy reliance on a single geographic market could expose the company to regional
economic fluctuations and limit its growth potential in emerging markets.

Legal Proceedings: The company is currently involved in several legal proceedings, including the ongoing
Starwood Data Security Incident. These legal issues not only result in financial liabilities but also harm the
company's reputation, potentially affecting customer trust and loyalty.
Negative publicity: People believe positive and negative publicity give a business a little push, but negative
publicity is not the right thing if your business is in the hotel management industry, where everything depends on
how the public sees you. Marriott is said to have done something horrible when they only rescued guests during
hurricane Irma and not others, even when they had the resources.

Source: GuruFocus Research. (2023, November 3). The Marriott International Inc (MAR) Company: A Short SWOT Analysis
 Marriott’s SWOT Analysis (Cont’d)

Opportunities
Recovering Global Travel Industry: With the gradual easing of travel restrictions and the increasing vaccination rates worldwide, the
global travel industry is on a recovery path. This presents a significant opportunity for Marriott to regain its pre-pandemic business
levels and drive growth.

Extensive Development Pipeline: As of Q3 2023, Marriott had nearly 557,000 hotel rooms in its development pipeline. This extensive
pipeline, coupled with the company's strategic licensing agreement with MGM Resorts International, indicates significant growth
potential for the company.
Entering emerging economies: To expand its reputation and business, Marriott needs to include emerging economies in its customer
list.
Demographic shifts: With the involvement of more and more millennials and Gen Z into the customer pool, the company has the
opportunity to do more to look the part of a youthful company.

Source: GuruFocus Research. (2023, November 3). The Marriott International Inc (MAR) Company: A Short SWOT Analysis
Marriott’s SWOT Analysis (Cont’d)

Threats
Lingering Impacts of COVID-19: Despite the ongoing recovery, the global travel industry is still grappling with the impacts
of the COVID-19 pandemic. Factors such as travel restrictions, changing consumer behavior, and economic uncertainties
continue to pose challenges for Marriott.
Legal and Regulatory Risks: Marriott faces potential threats from various legal and regulatory risks, including those related
to the Starwood Data Security Incident. Unfavorable outcomes from these legal proceedings could result in substantial
financial liabilities and reputational damage for the company.
Global recession: The pandemic has caused the whole world, including the significant economies, to face the onset of a
recession. The world’s economy is still struggling to hold on to the barest amount of economic growth. The customer pool has
indeed gone down for Marriott, and so have its profits.
Chances of terrorist activities: Attacks by terrorists are a thing that has happened again and again in five-star hotels. Even
with high-class security, someone can breach into the hotel with malicious intentions. Marriott needs to secure the area more
strictly.

Source: GuruFocus Research. (2023, November 3). The Marriott International Inc (MAR) Company: A Short SWOT Analysis
 Marriott Strategic Position

Marriott International is a world-renowned hospitality organization

originating from America and manages a portfolio of brands of hotels and
other hospitality facilities throughout the world. Considering this hotel chain,
Marriott International has established its dominating presence in over 131
nations and has over seven thousand plus occupancies and properties offering
well over a million lodgings and rooms. This group of hotels is considered
one of the most outstanding in terms of delivery of brands, services, comfort
and accommodating throughout the world. Today, neither the scientific
literature nor marketing practice has a justification for the development of
brand positioning. Positioning, as a process, begins with the design of a
trademark position or, as is often seen in the literature, the concept of
positioning. Crevens (2003) sees the concept of positioning as a formulation
of the essence of the company’s offer, indicating the ability of the
organization to meet the needs and preferences of consumers.
Product Strategy of Marriott International

Marriott is one of the foremost recognized luxury hotel chains. The unique product
marketing strategy of Marriott International is centered around luxury travelers.

For Marriott, the core product in its marketing mix is within the sort of hospitality
services. Their product strategy covers everything that goes into running the hotels. They
have over 30 brands that include popular hotels like Ritz-Carlton, Sheraton, Renaissance,
and many others.

The company has categorized its brands under the following tags: Luxury, Premium,
Select, and Longer Stays. This helps customers to choose hotels based on their travel
plans and convenience.
Marriott International strives to deliver exceptional guest experiences that are consistent
across all of its branded hotels and resorts in all locations and on all channels. It also
works extensively on launching new brands based on different themes that cater to new
and existing customers.
Price Strategy of Marriott International

Price Strategy of Marriott International

Marriott International is one of the few organizations that has been
successful in maintaining pricing power despite significant competitive
price discounting, volume shrinkage, and increased room supply.

In terms of pricing, Marriott International’s price varies with different

hotels, customers, and locations. The prime motive of the company is to
deliver a top-notch experience that exceeds customer satisfaction for the
price they pay.

It has largely succeeded because the different hotel brands have been able
to maintain differentiated value propositions in terms of their brand
promise and brand appeal.
Place Strategy of Marriott International

Marriott International is well-known and is one of the biggest hotel

chain companies in the world regarding the number of hotels they
manage and operate both in different parts of the world and in the
United States.

Choosing the ideal place and distribution strategy has played a vital role
for Marriott in its journey over the years. Since its foundation, it has
established itself in more than 131 countries and the placements of its
hotels are mainly centered in and around major cities and towns of a
country.
Promotion Strategy of Marriott International

Marriott International has been in the hospitality industry for almost a decade now and the
name “Marriott” speaks for itself. It is one of the positive beneficiaries of “word of mouth”
promotion.

Apart from that, Marriott primarily focuses on promoting itself and its brands through digital
marketing strategy of Marriot International.

It has a very well-designed website that showcases all of its brands in a detailed manner which
entices users to book the room immediately.
It has also worked on Generated Content strategy and also has been collaborating with various
influencers.
It also has a customer loyalty program called Bonvoy, which provides its customers with a
variety of benefits.
Now that we have an understanding of the marketing mix of the hospitality giant, let us go
through the marketing strategy of Marriott International in the coming section.
Digital Marketing Strategy |Social Media
Marketing Strategy | Influencer marketing
The innovative marketing strategy of Marriott International is considered one of its core
strengths. Here is how Digital marketing is integrated for the effective marketing strategy
of Marriott: Marriott invests a lot of money in social media marketing to engage younger
travelers. Marriott recently ran a campaign to promote the new hotels with 27 TikTok
influencers. Additionally, Marriott is active on Twitch, Snapchat, and Pinterest.

M Live is an additional cutting-edge social media marketing strategy that Marriott

employs to interact with visitors. The Marriott social media team keeps a close eye on the
reviews visitors submit while there and surprises them with goodies. It supports the
hotel’s positive social media e-WOM generation.

Marriott engages influencers on social media to market their brand to Millennial

consumers. For example, Marriott collaborated with Snapchat influencers to create
Snapisodes showcasing Marriott’s newest high-end properties.
 Strategic Goals and Objectives
The Marriott mission statement is “to enhance the lives of our customers by creating and enabling
unsurpassed vacation and leisure experiences.” And the Marriott vision statement is “to be the
world’s favorite travel company.”
The company has been a leader in the hospitality industry for almost a century, and it has achieved that
leadership role by adhering to its vision statement. This simple yet powerful phrase encapsulates
Marriott’s commitment to providing guests with an unforgettable travel experience regardless of where
it goes.
Marriott’s mission statement is focused on providing guests with superior services and preferences that
are tailored to their individual needs. The company strives to create an environment where customers
can have rewarding experiences away from home. With quality lodging, exceptional amenities, and
outstanding hospitality, Marriott seeks to exceed customer expectations by providing a memorable stay.
The main purpose of the mission statement is to drive positive customer experiences from start to
finish. Every decision that Marriott makes should directly contribute to this goal, from ensuring great
hospitality at every location to delivering innovative products and services to making sure everything
runs smoothly during a stay. Marriott wants customers to feel like they’re part of something special and
meaningful when it comes time for them to choose a hotel for their vacation or business trip.
 Strategic Plan: Achieving Marriott's Strategic Goals and Objectives
Goal Objective Action Item 1 Timeline Budget Responsibility Action Item 2 Timeline Budget Responsibility
Implement training
Continuously improve service
Conduct regular guest Customer programs for staff to
quality across all Marriott $50,000 per $100,000 Human Resources
satisfaction surveys to identify Quarterly Experience enhance hospitality Ongoing
properties to exceed customer year per year Department
areas for improvement Manager skills and customer
expectations.
service.

Personalize guest experiences Invest in a customer Develop personalized

Enhance Customer through tailored services and relationship management packages and offers
Experiences preferences, leveraging (CRM) system for data Within 6 based on customer Within 12 Marketing
technology and data analytics. collection and analysis. months $200,000 IT Department preferences. months $150,000 Department
Collaborate with
Invest in innovative amenities local businesses to
and offerings to enhance the Research and implement new offer unique
overall guest experience and technology solutions for guest Technology experiences (e.g., Partnerships and
differentiate Marriott from convenience (e.g., mobile Within 9 Innovation guided tours, Within 12 Alliances
competitors. check-in/check-out). months $300,000 Team culinary events). months $100,000 Department

Establish
Identify and enter emerging partnerships with
markets with high growth Conduct market research to local developers or Business
potential to expand Marriott's identify target regions for Within 3 Market investors for property Within 6 Development
geographical footprint. expansion. months $50,000 Research Team development. months Negotiable Department

Strengthen partnerships with Develop community Corporate Sponsor local events

Expand Global Presence
local businesses and engagement initiatives to Social and festivals to
communities to establish a support local causes and $50,000 per Responsibility increase brand $100,000 Marketing
strong presence in new markets. organizations. Ongoing year Department visibility. Ongoing per year Department
Acquire or develop properties in
key strategic locations to meet Conduct feasibility
the diverse needs and Identify potential acquisition Real Estate and studies and financial
preferences of travelers targets or development Within 6 Development analysis for potential Within 9 Finance
worldwide opportunities in key markets. months Negotiable Team investments. months $50,000 Department
 Strategic Plan: Achieving Marriott's Strategic Goals and Objectives
Goal Objective Action Item 1 Timeline Budget Responsibility Action Item 2 Timeline Budget Responsibility
Develop and implement loyalty Launch targeted
programs that offer valuable marketing
rewards and incentives to Enhance existing loyalty Loyalty campaigns to
encourage repeat business and program benefits based on Within 6 Program promote loyalty Within 3 Marketing
customer retention. customer feedback. months $100,000 Manager program enrollment. months $200,000 Department
Cultivate long-term Implement a
relationships with customers Establish a dedicated Customer feedback mechanism
through personalized customer relationship Relationship to gather insights Customer
Foster Brand Loyalty
communication and management team for Within 3 Management from guests post- Within 6 Experience
engagement strategies. personalized communication. months $150,000 Team stay. months $50,000 Manager
Leverage customer feedback
and insights to continuously Implement
improve services and offerings, continuous
demonstrating Marriott's Analyze feedback data to improvement
commitment to meeting identify trends and areas for $50,000 per Market initiatives based on $100,000 Quality Assurance
customer needs. improvement. Ongoing year Research Team feedback analysis. Ongoing per year Department
Streamline operational Implement lean
processes and procedures to management
enhance efficiency and Conduct operational audits to principles to Process
productivity across Marriott's identify inefficiencies and Within 3 Operations optimize resource Within 6 Improvement
properties. bottlenecks. months $50,000 Manager utilization. months $100,000 Team
Provide ongoing
Invest in employee training and leadership
development programs to development
Drive Operational Excellence
ensure consistent delivery of Develop a comprehensive Training and programs for
high-quality service and training curriculum for all staff Within 6 Development managers and $100,000 Human Resources
hospitality. levels. months $200,000 Department executives. Ongoing per year Department
Invest in energy-
Implement sustainable practices efficient technology
and initiatives to minimize Conduct an environmental and renewable Facilities
environmental impact and impact assessment and Within 6 Sustainability energy sources for Within 12 Management
promote responsible tourism. develop sustainability goals. months $50,000 Task Force properties. months $500,000 Department
 Strategic Plan: Achieving Marriott's Strategic Goals and Objectives
Goal Objective Action Item 1 Timeline Budget Responsibility Action Item 2 Timeline Budget Responsibility
Recognize and
Foster a culture of innovation
Establish an innovation hub reward innovative
within Marriott by encouraging Within 6 $100,000 (workspace Innovation $50,000 per Human Resources
for employees to share ideas initiatives through an Ongoing
creativity and idea generation months and resources) Committee year Department
and collaborate on projects. employee incentive
among employees.
program.
Invest in technology solutions
Develop a mobile
and digital platforms to Upgrade IT infrastructure to
Within 12 app for seamless Within 9 Technology
enhance the booking support new technologies and $1,000,000 IT Department $300,000
Embrace Innovation months booking and guest months Innovation Team
experience and streamline digital initiatives.
communication.
operations.

Collaborate with industry

Identify potential partners and
partners and startups to identify $50,000 per year
startups through industry
and adopt cutting-edge Ongoing (sponsorships and
networking events and
innovations that drive value for memberships)
conferences.
guests and stakeholders.
References

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GuruFocus Research. (2023, November 3). The Marriott International Inc (MAR) Company: A Short SWOT
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