Marriott International seeks to expand its operations in China to capitalize on the country's growing hospitality industry and middle class. It currently has 22 hotels in China but sees an opportunity for much broader growth. The document discusses Marriott's brand strengths, China's hotel industry trends, and outlines Marriott's strategic plan to increase its hotel rooms in China by 20% by focusing on new regions and introducing new brands like Edition to satisfy rising demand. It also addresses challenges like high employee turnover that Marriott must overcome.

1. Introduction
As the Chinese Hospitality industry continues to grow, Marriot Hotel has seen an
opportunity to generate revenue. With the largest population in the world, it’s growing middle
classes presents new demand hotel accommodations. With only 22 hotels currently in
operation, in China, Marriott Hotel hopes to gain a larger market share through opening more
hotels and satisfy the increasing demand. The purpose of this Marketing Plan is to explain to
Professor Wongsuwan the strategy necessary to expand Marriott hotels operations in China.
Situational Analysis
1. Company and Country Background Analysis
Marriot International Inc. is a leading hospitality company with 4,000+ different locations
and properties in 78 countries. Marriot International Inc. currently has 19 hotel brands including
Courtyard Marriot, Edition, and the Ritz Carlton. They are a high-end hotel company that
targets a wide range of customers such as the upper class, corporates, and families, even
honeymooners. Since 1927 Marriott has been upholding a culture, which puts people first.
Marriot maintains their culture through staying true to their mission and values which expresses
their belief of putting people first, pursuing excellence, embracing change, acting with integrity
and serving our world. Marriot is a technically innovative company, which strives to improve
customer experiences through making booking easier. Marriott’s brand name is very strong.
They are a large player in the global hospitality industry, making them a well know company
worldwide. Marriott is known for their excellent customer service as they were ranked one of
the most loved companies in 2013. Marriott is also expanding their brands into new and
existing markets. For example they will be opening three new Edition hotels in China by 2017.
Marriott is experiencing issues with their employee turnover rate. In the past the voluntary
turnover rate has been high.
2. Industry Analysis:
China hospitality industry has been identified as a growth engine for the Chinese
economy. Currently the hospitality industry in China has been labeled as a “$44 billion business
with 2.5 million hotel rooms”. With a growing middle class, the Chinese are beginning to to use
their leisure time for travel. Currently comprised of 13 million households the upper middle
class is expected to grow to 55 million households in 10 years. The Chinese hospitality industry
currently offers 4 rooms per 1,000 capita, which is low, compared to the United States, which
offers 20 rooms per 1000 capita. The demand for hotel rooms is continuously increasing
making the Chinese market an attractive industry to carry out business. Over the next 10 years
the Chinese hospitality industry is expected to grow to a $100 billion industry with 6.3 millions
hotel rooms. Growth will
About Marriott:

2. ● Marriott International, Inc. is a leading hospitality company with more than 3,900
properties, 18 brands, and associates at our headquarters, managed and franchised
properties around the world. Founded by J. Willard and Alice Marriott and guided by
Marriott family leadership for more than 80 years, the company is headquartered in
Bethesda, Maryland, USA, and reported revenues of nearly $13 billion in fiscal year
2013.
Mission and Values:
○ Our core values make us who we are. As we change and grow, the beliefs that
are most important to us stay the same—putting people first, pursuing
excellence, embracing change, acting with integrity and serving our world. Being
part of Marriott International means being part of a proud history and a thriving
culture.
○ We put people First- “Take care of associates and they will take care of
customers”
○ We Pursue Excellence- Our dedication to the customer shows in everything we
do
■ Marriott’s reputation for superior customer service dates back to J. Willard
Marriott’s original goal for his business: “good food and good service at a
fair price.” We take pride in the details—every day, in every destination
worldwide.
○ We Embrace Change- Innovation has always been part of the Marriott story
○ We Act with Integrity- How we do business is an important as the business we do
■ We hold ourselves to uncompromising ethical and legal standards. This
extends to our day-to-day business conduct, our employee policies, our
supply chain policies, our environmental programs and practices, and our
commitment to human rights and social responsibility.
○ We Serve Our World- Our “spirit to serve” make our company stronger.
■ Marriott Focuses on 5 global issues: poverty alleviation, the environment,
and community workforce development, the wellbeing of children, and
global diversity and inclusion.
Culture:
● Since 1927 Marriott has been known for a culture that puts people first.
Marriott Brands (Product Line):
● 19 hotel brands
Marriott location:
● 4,000+ destinations in 78 countries
○ US, China, Brazil, Germany, Spain, Russia, United Arab Emirates
Marriott Distribution Channels
● In an effort to support hotel operations and profitability Marriott leverages electronic
distribution channels to distribute room inventory to a broad cross-section of customers
Marriott Target Consumers:
● Upper Class, Honeymooners, Corporates, families

3. Marriott Strengths:
● Global Market, Strong Online Growth, Owns lots of real estate, Excellent Customer
Service, Partnerships with other hotels, Hotel Business Leader, Strong Brand Name for
Marriott, Technical innovations to improve customer experiences and Constant upgrade
of business process, In 2013 ranked as one of the most loved companies (Statista).
Marriott Weaknesses
● Staff turnover, Standard and Poor rating of BBB-, Declining Profit Margins
In June of 2014 Marriott is 6th in the number of hotel properties it owns worldwide with 4,025
(http://www.statista.com/statistics/197869/us-hotel-companies-by-number-of-properties-
worldwide/)
Marriott has 22,000 rooms in Asia Pacific
There are 81 Marriott Brand hotels in China currently.
22 Marriott Hotel’s in China
In 2012 China became the #1 exporter of tourists, accounting for 70 million overseas trips
(Marriott.com)
“Among the company’s high-end brands, Marriott expects to have more Ritz-Carlton properties
in China than in the U.S. within five to 10 years, Sorenson said. The hotelier also is expanding
its Bulgari luxury brand. It has two such hotels, in Milan and Bali, Indonesia, and will announce a
third, in London, in the next few weeks, he said.
“Luxury will be a powerful long-term growth engine for us because of the wealth” building in
such countries as China, Sorenson said.”
http://www.bloomberg.com/news/articles/2012-03-30/marriott-may-sell-edition-hotels-to-fund-
brand-expansion
In the year 2016, execute a strong entry for Marriott’s new Edition Brand in Sanya China. This
location will outperform London, and New York City locations focusing on entry into the
boutique hotel segment. We expect to earn 10% ROI for first year. In2017, Edition hotels in
Shanghai and WuhanChina will further the Edition Brand Image and increase earn a 15% ROI
by 2018. Open 5 Franchises by the fiscal year end 2020
Issue: Edition is not an established Marriott brand name in China creating a market entrance
barrier
2. Industry Analysis
PRC government policy initiatives, rapid economic growth, and recent events, such as the 2008
Beijing Olympics and the 2010 Shanghai Expo, have helped China’s tourism industry expand

4. rapidly in recent years. Despite adding many new employees in this fast-paced sector, foreign
hospitality and tourism companies in China continue to face a shortage of skilled workers.
At the same time, few educational institutions in China focus on hospitality and tourism, and
those that do lack programs that sufficiently prepare hospitality workers to provide services that
integrate international standards and best practices. Education experts note that today’s
graduates will need a skill set that integrates contemporary knowledge and best practices to
succeed in a rapidly changing workenvironment—and the tourism industry is no exception.
For example, China had roughly 10,200 hotel enterprises nationwide in 2006, but the country
boasted more than 15,000 such enterprises in 2010, according to the PRC National Bureau of
Statistics (see China Data). From 2006 to 2010, business revenue from hotel services expanded
from ¥155.2 billion ($24.4 billion) to ¥279.8 billion ($44 billion).
Over the next few years, the hospitality and tourism industry will become one of China’s largest
employers. The World Travel and Tourism Council estimates that the travel industry in China
contributed roughly ¥1.1 trillion ($173 billion) in 2011, or 2.5 percent of China’s GDP. The
industry’s direct contribution to employment in China is forecasted to expand from roughly 23.1
million jobs in 2011 to 26.6 million jobs by 2021. Moreover, the hospitality and tourism industry
in China has the potential to create rewarding, higher-paying jobs with opportunities for upward
mobility. Like many other sectors in China, the tourism and hospitality industry also struggles
with employee turnover.
China’s tourism education system would benefit greatly from collaboration between the public
and private sectors. The public sector should implement a standard tourism and hospitality
curriculum, as well as hire qualified teachers. The private sector can facilitate the development
of teacher training programs and teaching guides that outline critical skills. Private sector
involvement in curriculum development can help prepare students for situations they will
encounter on the job, as well as introduce the concept of guest services and international
Standards and best practices.

5. Swot Analysis
Positive Negative
Internal
Strengths
- Brand name
- CRF Institute- China’s top
employers 2013
- Human Capital Management
Magazine- China Talent
Management Award
Weaknesses
- Inefficient local managers
- Employee turnover
- Inefficient market research
leading to
External
Opportunities
- Anticipated market growth
-
Threats
- Potential economic slowdown
- Political unrest
- Internet Censorship
● Opportunities
The World Tourism Organization estimates China will be the number one tourist
destination by 2020.
● Threats

6. ○ Major threats: The sustainability of China’s economic growth is risky because
the government owned banks has been giving out risky loans to start-ups. If these
investments do not make a favorable return, the economy will tank like the
United State’s economy in the late 2000’s.
○ Potential threats: The Chinese government has been criticized for being
imperialistic with neighboring country borders and abusing international water
territory. The hostility neighboring countries hold against the superpower
coupled with North Korea’s mobilization of nuclear weapons presents a threat to
China’s national security, possibly deterring tourism.
○ Minor threats: The government has a lock on many Internet websites and that
could deter future customers from enjoying their stay without connection to their
most frequented websites.
Objectives and Issues
OBJECTIVES AND ISSUES
Objective: Decrease the voluntary turnover rate, retaining and creating a
seasoned staff to better serve our customers and outperform our competitors
(http://archive.fortune.com/magazines/fortune/best-
companies/2013/snapshots/64.html)
Issue: Some seasoned staff might become complacent and less productive
Objective: Increase web traffic in China to our companies website by 10%
by the fiscal year end of 2016 and increase 5% every year after until 2020
(http://www.alexa.com/siteinfo/marriott.com)
Issue: Chinese government censorship
Objective: Increase the number of hotel rooms in China by 20%
concentrating on regions Marriott is not currently present
Issue: Increase in quantity might decrease quality

7. International Marketing Strategy
Positioning- (what is Marriott’s competitive advantage)
At the economy level, Marriott competes with companies such as Hilton Hotels. Both companies
share the same customers. Consumers choose between Marriott and Hilton based on price,
location, and amenities. Our strategy is to target cities in China where we are not currently
operating. Through conducting secondary research we will attempt to identify growing cities
where we could build a new hotel. This will allow us to penetrate the industry in that specific
area early. Our hotels will have a central location in the city of operation. Our hotels are
focused on improving customer’s stay through offering anenvironment where they can “work,
play, mix, mingle, connect, and relax”. Each hotel will come with a strong and reliable Wi-Fi
network. Our hotels will feature facilities that cater to the needs of both Western and Asian
clients. We will achieve this through adding various features such as a spa, swimming pools,
work out facility, conference rooms, and restaurant/bar. We recognize transportation in an
unfamiliar city can be tough, so our hotels will offer a shuttle service for our customers to use as
they please. These amenities will give us a competitive advantage over our competitors.
Marketing Research:
1. Research industry, market characteristics and trends to determine the market share
potential, diversification,
2. Distribution Research to further understands the effectiveness of online booking.
3. Promotional Research to ensure we are using the best form of communication with our
clients,
Marketing Organization
Focusing on our products image depending on it’s geographic location. For example, the design
of our buildings will be different in Shanghai compared to Beijing. Shanghai’s building would be
designed to complement the surrounding building with a modern design and exterior
illuminated with LED lights.
Product Strategy
● We offer high quality hotels for upper class travellers
● Our customers are upper class, corporate employees, and couples on honeymoons. They
are interested in high-end lodging in China’s growing cities
● We distribute our services and promotions through Marriott.com
● Our hotel rooms are priced depending on demand and square footage and are considered
high-end lodging accommodations
Using the diffusion process, Marriott International is introducing its Marriott brand into the
Chinese market while the brand is in the growth stage. This established brand has momentum
entering into the new market. In this situation, China is considered a “lag country” because it is

8. adopting the Marriott brand later in the brand life cycle and therefore will adopt the product at a
faster rate.
Tactic to ensure success- China’s hospitality industry is predicted to increase exponentially in
the upcoming years. In order to ensure success we need to be prepared for the upcoming
increase in demand. Through getting ahead of the curve and constructing facilities we will have
already established a name for ourselves in China’s market as the country becomes increasingly
mobile.
Price Strategy:
● We will price our rooms based on the size, applications, and time of the year.
● Our price range will be determined by demand.
● To keep up our image as a luxury hotel brand, the pricing will be set to attract those with
a higher amount of disposable income.
Through pricing research we will determine a
Tactic to ensure success-
Distribution Strategy:
● Increase web traffic to our online booking page.
● Inform customer’s awareness of our online booking page.
● Going directly to our customer instead of paying commissions to third party promoters.
● Enhance customer service by providing better information through multimedia
Through continuous innovations, we have
Seventy Percent of Chinese travelers use online travel sites to plan vacations. Popular travel sites
for this market include Qunar.com and Lvmama.com.
Strategies:
1. Increase revenues by extending the company’s reach to broader, global market
2. Going directly to the customer instead of paying commissions to third party promoters
3. Enhance customer service by more and better information through multimedia
http://cqx.sagepub.com/content/39/4/42.short
Marketing Communications Strategy
http://www.chinabusinessreview.com/the-hospitality-talent-gap/

9. Hospitality Industry:
● China’s hotel industry experiencing meteoric growth resulting in a $44 billion
business with 2.5 million hotel rooms.
● China has 4 rooms per capita- low compared to 10 room 1000 per capita in UK
and 20 in US
● Over next 10 years hospitality will become a $100 billion industry with 6.3
million rooms and 8 rooms per 1,000 capital
Controls
● Goal- Awareness of our new Hotel locations, to ensure high return on investment.
Measure of Performance- Use click count and internet data research to ensure 55% of
customers are aware of new Hotel locations.
● Goal- Increase employee satisfaction, to lower voluntary turnover
Measure of Performance- Issue employee surveys every three months to gather feed on
how we can improve the average workday.
● Goal- Successful promotional deals during traditional slow quarters
Measure of Performance- Outperform our competitors by having a minimum of 45%
occupancy rate at all times.
VIII. Conclusion
http://www.atkearney.com/documents/10192/982632/Chinas_Hospitality_Industry.pdf/72ed
00fb-1cad-4798-a1a1-1552604bc72e
http://cqx.sagepub.com/content/39/4/42.short
http://www.bloomberg.com/news/articles/2012-03-30/marriott-may-sell-edition-hotels-to-
fund-brand-expansion
http://www.editionhotels.com