Marketing Mix of Marriott International: 7P’s
|Company Name||Marriott International Inc.|
|Main Market||North America|
|President & CEO||Arne M Sorenson|
|Number of Properties||6,906 (end 2018)|
|2018 Revenue||$20.76 billion|
|Number of employees 2018||176,000 (approx.)|
|Leading Competitors||Wyndham, Hilton, Choice Hotels, Intercontinental, Accor, BestWestern.|
Marriott is one of the largest hotel chains in the world with more than 7,200 properties across 134 countries and a brand portfolio of 30 brands (As of Jan 2020). Marriott International was founded by J Willard and Alice Marriott in 1927 and became a public company in 1998. It spun off from the company formerly known as Marriott International Inc in 1998. Its large portfolio of brands offers one of the most compelling range of brands and properties among all the leading lodging companies. By the end of 2018, the total number of Marriott International properties was 6,906 which has now crossed 7,200. Marriott operates, franchises and licenses hotel, residential and timeshare properties under several brand names worldwide. The company has divided its business into three main operating segments that include North American full service, North American limited-service and Asia pacific. North America and mainly the United States is the largest market of Marriott International where the largest number of Marriott properties are located. As a leading hospitality brand, Marriott International enjoys strong brand recognition and has earned several rewards for its excellent culture and customer focus.
Read this marketing mix to get a detailed view of Marriott’s business and marketing strategy.
Marriott International is one of the leading names in the hotel industry that provides lodging services worldwide in various segments. Apart from a large number of properties that offer luxury lodging services, Marriott also offers lodging services under the premium, select and timeshare categories. Of the thirty brands in its portfolio, seven offer luxury lodging services. Ten of its brands offer lodging services in the premium category and 11 in the select category. Apart from that, Marriott offers residences and timeshare properties.
The luxury brands in the portfolio of Marriott International Inc include J W Marriott, The Ritz Carlton, W Hotels, The Luxury Collection, St Regis, EDITION, and Bulgari. The premium brands in the portfolio of Marriott International include Marriott Hotels, Sheraton, Westin, Renaissance Hotels, Le Meridien, Autograph collection hotels, Delta Hotels, Gaylord Hotels, Marriott Executive Apartments, and Tribute Portfolio. Brands under the Select range offer smart and easy amenities and services. The longer stay brands under the Select range offer amenities that reflect the comforts of home like stay. Under the Select range of Marriott, there are classic Select brands and the distinctive select hotel brands. The classic Select Hotel brands of Marriott include Courtyard, Residence Inn, Fairfield by Marriott, SpringHill Suites, Four Points, TownePlace Suites, and Protea Hotels. The Distinctive Select Hotel brands of Marriott include Aloft, AC Hotels by Marriott, Elements, and Moxy. The company also acquired Starwood Hotels and Resorts in 2016.
Marriott is a global hotel chain whose business spans 134 countries. The company has 30 brands in its portfolio and it has divided its business into three main reportable segments including North America full service, North America limited service, and the Asia Pacific. The company also has hotels operating in Europe and the Middle East but they do not qualify as reportable segments. The properties of Marriott include company-owned, licensed, and franchised hotels, as well as, unconsolidated Joint venture properties.
The largest market of Marriott Hotels is the North American region (mainly the US) where the company has 5,106 properties (Dec.2018) followed by 717 properties in the Asia Pacific. As of Jan. 2020, the number of properties in the US alone has grown to 5,322. Texas has the highest concentration of Marriott properties at 545 followed by California at 510. At the end of 2018, Marriott operated 22 hotel reservation centers of which eight were in the United States and 14 in other countries and territories.
Marriott has maintained the image of a premium hospitality brand. With regard to pricing strategy too, the company has followed a premium pricing strategy which also reflects in its brand portfolio that contains 21 luxury and premium brands out of 30. However, due to growing competition in the hospitality industry, it has also introduced several rewards programs to attract and retain customers. The company also offers several deals and discounts regularly that allow its visitors to save big on their stay in one of the premium properties around the world. However, prices in the hotel industry are also affected by several factors like demand, location, and level of competition in an area. It is why the company uses attractive deals and discounts to beat competitive pressure while also retaining its premium brand image.
Marriott is a well-recognized premium hospitality brand with strong brand recognition globally. Apart from being one of the leading hospitality brands in the US with a strong market share, it has also maintained a strong presence throughout key locations in the Asia Pacific region, Europe as well as the Middle East. Its focus on customer service and service quality has led to higher publicity and strong competitive advantage.
However, for promotions, Marriott mainly relies on digital channels which include its website, app and social media. Apart from that, the company has used several rewards programs to maintain customer loyalty. The website and app are its main source of promotion from which visitors can book rooms and learn about the latest deals.
Its Marriott Bonvoy Travel program has around 3.7 million followers on Facebook. It is a free program offered by Marriott to enhance its visitors’ travel experience. This program has several levels including Silver Elite, Gold, Platinum, Titanium and Ambassador Elite. Visitors receive several benefits right for registering with the program like free internet etc. This reward program was introduced in 2019, after combining previous reward programs into one.
Marriott also uses cobranding for promotions. The company has multiyear agreements with JP Morgan Chase and American Express for its US issues cobrand credit cards related to its loyalty program Marriott Bonvoy. Marriott’s loyalty program has been successful at generating repeat business for the hospitality brand. Along with these activities, the company also focuses on CSR and sustainability to maintain a strong social image. It also uses its social media accounts for addressing consumer complaints from various corners of the world. The company has also earned several rewards and recognitions for its employment best practices as well as overall efforts towards maintaining a strong image. In 2020, it is one of the Fortune’s World’s Most Admired Companies as well as on the Forbes’ list as one of the Best Employers of America for Diversity. Apart from that, the company has been recognized by Newsweek as one of America’s most responsible companies.
Throughout its history, Marriott has continued to focus on improving the level of service quality and convenience offered to Marriott visitors. In recent years, the company has grown its investment in digital technology to offer extra convenience to its customers in terms of check in, stay and check out. The app allows visitors to manage their stay with higher efficiency. There are 22 reservation centers run by Marriott, eight of which are in the US. The Marriott Bonvoy app allows its users excellent control and convenience where visitors can order amenities and manage their stay without worrying about anything. The company continues to optimize its investments in people, processes, and systems to maintain its competitive advantage in the hospitality industry.
As of 2018, Marriott employed around 176,000 people. Over the past several years, the company has earned strong recognition as one of the best employers in the US. In 2019, the company made it to several of Forbes’ list of Best American employers including that for diversity and fresh graduates. Moreover, Forbes recognized Marriott as one of the Best Corporate Citizens of America while Fortune recognized Marriott as one of the Most Admired Companies of the World. Great Place to Work recognized Marriott as one of the best places to work for women as well as diversity. These awards and recognitions are a result of the excellent work culture at Marriott and its focus on human resource management.
The physical evidence part of the marketing mix for hospitality services mainly includes the tangible aspects of the experience that include the properties and amenities mainly. Apart from the amenities, that visitors order and the room amenities including furniture, there is not much that counts as physical evidence in the hospitality business. Now that the use of websites and apps is more prevalent, the need for paper bills has also been replaced by check-in apps. However, companies like Marriott use branded amenities to make their visitors’ stay memorable and outstanding as well as for branding. The Marriott Bonvoy app allows for mobile check-in and order amenities like comb or toothpaste. Moreover, the visitors can use the app to check out previous transactions, folio etc.
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Pratap, A. (2020, February 5). Marriott International Marketing Mix. Retrieved from https://notesmatic.com/2020/02/marriott-international-marketing-mix/
|MLA||Pratap, Abhijeet. “Marriott International Marketing Mix.” Notesmatic, 5 Feb. 2020, notesmatic.com/2020/02/marriott-international-marketing-mix/.|