Nicole BorchersSamantha Delorenzo-Popham
Company Overview
Famous five star hotel that is best known for its gold standard of hospitality Has received all of the major awards that the hospitality industry and leading
consumer organizations can reward This luxurious hotel franchise began with a man by the name of Cesar Ritz who
is known as the “king of hoteliers and hotelier to kings.” After his death the Ritz-Carlton Investing Company bought and franchised the
name In 1927, the first Ritz-Carlton Hotel was built in Boston. 1940 none of the hotels were operating except The Ritz-Carlton, Boston due to
the death of Cesar Ritz. Starting as two exclusive hotels in Europe, the management company has
grown 85 hotels worldwide in 30 countries
The Ritz-Carlton’s Mission Statement
THE CREDO
“The Ritz-Carlton Hotel is a place where the genuine care and comfort of our guests is our highest mission. We pledge to provide the finest personal service and facilities for our guests who will always enjoy a warm, relaxed, yet refined ambience. The Ritz-Carlton experience enlivens the senses, instills well-being, and fulfills even the unexpressed wishes and needs of our guests.”
SWOT Analysis
Strengths
It’s a growing company with new locations coming in the future 85 hotels worldwide in 30 countries 35,000 employees Ritz Carlton Leadership Center One of the luxury hotel chains in the world Provides quality service to customers
Weaknesses• The cost to stay at the hotel is high• Limited market• High employee turnover rate• Suicide bombing 2009
Opportunities• More job opportunities for people because of the
expansion• More tourism in the locations the hotels are at • New hotels will allow for even more expansion in the
future
Threats• Other luxury hotel chains like Hilton, Four Season,
Westin, etc. • Increasing costs for operations indirectly affecting
hotel rates• Decline in tourism industry due to natural disasters,
terrorist activities etc.
TARGET MARKET AND PRODUCT POSITIONING known for their very personalized marketing strategy most famously known now for their strategy of social media alongside social media, the Ritz was awarded by the Hospitality Sales & Marketing Association
International (HSMAI) with the Adrian Platinum Award for Trio of Short Films. three short films, under ten minutes each, were shown on The Ritz-Carlton website
(http://www.ritzcarlton.com/), YouTube, hotel guest room televisions around the globe and film premiere launches
subtly showed the hotel’s nationally renowned service, which resonated with brand loyalists as well as non-traditional customers.
Other promotional strategies include: individually reaching out to customers defining key measurements having a well put together web site creating yearlong goals, these were among the best and more recognized for the Ritz-Carlton.
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major segmentation variables used by the Ritz Carlton: -Age - zip code -wealth Market Profile: - Wealthier individuals - Travelers - Business people Each hotel also focuses on their individual hotel location
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Ritz-Carlton as a whole, It promotes itself to many market segmentation variables depending on location, wealth, and age.
- Importance of getting the demographics for the hotel’s area in order to select market segment profiles. Mostly built in wealthier areas, attracting people of prestige value. The product positioning has been successful for years past, and years to
come. -They reach their organization’s goals, by staying the number one luxury hotel and keeping individuals coming with great experiences. Their brand is extremely recognized and respected by many, and their advertising has won awards for their initiative and creative outreaches.
Marketing Mix/Marketing StrategyProduct Rooms
People come to the Ritz for a comfortable stay High quality Nicer room features High standard for good service makes customers feel welcome
The Ritz Carlton Brand• The Logo Collection
Other Brands• Luxury brands
• Men’s, Women’s, Kid’s clothing• Accessories (sunglasses, jewelry, handbags, hats, ties)• Skincare products • Bedding
• Asprey • Partnership• Spa items
Price• Prestige pricing strategy• Hotel Rates are high
Hotel (In Denver, CO) Room Rates (Lowest) Room Rates (Highest)
Motel 6 $46.99 / Night $55.99 / Night
Holiday Inn $90.00 / Night $163.00 / Night
Ritz Carlton $259.00 / Night $1,400.00 / Night
• Policy for each employee to spend up to $2,000 per guest
• Other products
Place• Located in touristy areas
• Ex. Colorado has 3 locations• Denver, Vail, Bear Creek Mountain
• California & Florida have the most locations• Middle East, Asia, Europe, Latin America
• http://www.ritzcarlton.com/en/Locations/Map.htm
Naples, Florida Maui, Hawaii
Hong Kong Berlin, Germany
Promotion• The Ritz Carlton Magazine
• The Ritz Carlton Rewards Program• Customers have a rewards card and when they use it they earn
points• This is a good way to keep people coming back
Other Services Spa Weddings
Wedding Magazine Business Meetings
Conclusion
Devoted to making sure their customers have a comfortable stay and keeping up their luxurious image are ways the Ritz-Carlton exemplifies success.
Everything about their company, their hotels, products, offers, advertising, and even their website, are all examples of what their luxurious image looks like.
Every customer is well taken care of. They strive for a good reputation.
