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The Ritz Carlton

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Research was done in a business management class to look at how The Ritz Carlton hotel chain's business is run. Looking at their overall business, marketing strategies, and how they present themselves as a brand was looked at.

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The Ritz Carlton

  1. 1. Nicole Borchers Samantha Delorenzo-Popham
  2. 2. 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
  3. 3. 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.”
  4. 4. 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
  5. 5. Weaknesses • The cost to stay at the hotel is high • Limited market • High employee turnover rate • Suicide bombing 2009
  6. 6. 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
  7. 7. 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.
  8. 8. 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.
  9. 9. Continued  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
  10. 10. Continued  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.
  11. 11. Marketing Mix/Marketing Strategy Product  Rooms  People come to the Ritz for a comfortable stay  High quality  Nicer room features  High standard for good service makes customers feel welcome
  12. 12. 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
  13. 13. 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
  14. 14. 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
  15. 15. Naples, Florida Maui, Hawaii Hong Kong Berlin, Germany
  16. 16. 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
  17. 17. Other Services  Spa  Weddings  Wedding Magazine  Business Meetings
  18. 18. 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.

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