23Executive SummaryIn this report, we will be addressing t.docx

23
Executive Summary
In this report, we will be addressing the issue faced by the Ritz
Carlton Philadelphia in the value that is being delivered to
customers. We have found through research and reviews that the
clients are dissatisfied with their experiences when staying at
the Ritz Carlton and most agree that it does not live up to the
Ritz Carlton brand.
By utilizing market research and evaluating employees’ and
customers’ perceptions, we will be able to pinpoint where the
issues lie in delivering the service expected by guests. By
reevaluating the internal marketing strategies currently in place
at the Ritz Carlton Philadelphia we believe we can solve any
domestic issues the company is facing that is keeping customers
from being satisfied with their service. We can ensure
employees are being recruited and trained properly and are
delivering the high-quality service associated with the Ritz-
Carlton name. Through communicating the current condition of
the Ritz and the current renovations being undertaken, guests
will not be surprised when they see the construction and will be
less upset when they are affected by it because they were made
aware previously.
We want to ensure this hotel is delivering service consistent
with the rest of the brand and that even though the hotel is
currently under construction- guests still receive an excellent
stay and want to come back when the renovations are complete.
Table of Content
1.0
Introduction..................................................................... .......
..................................................3
2.0 Situational

Analysis………………………………………………………………
………….3
2.1 Internal
analysis…………….…………………………………………….……
……...3
2.1.1 Organization
Overview………………………………………………...…4
2.1.2
SWOT…………….……………………………………………………
….5
2.1.3 Customer’s
Profile……………………………………………………….12
2.2 External
Analysis………………………………………………………………
…….13
2.2.1 Environmental
Analysis………………………………………………….13
2.2.2 Industry
Analysis………………………………………………………...17
2.2.3 Competitor
Analysis……………………………………………………..19
2.2.4 Target Market
Analysis………………………………………………….22
2.3 Summary of Situational
Analysis……………………………………………………24
3.0 Marketing
Problem………………………………………………………………
…………25
4.0 Marketing
Strategies……………………………………………………………
………….26
4.1
Research………………………………………………………………
……….…..…26
4.2 Internal
Marketing………………………………………………………….…

……..28
4.3
Communication………………………………………………………
………………29
5.0
Conclusion……………………………………………………………
……………………..30
Appendix………………………………………………………………
………………………..31
References……………………………………………………………
………………………….39
1.0 Introduction
The Ritz-Carlton is a chain within the Marriott brand. Marriott
International is a hotel company that operates, licenses, and
franchises hotels and timeshares throughout the world. Marriott
International is a leading lodging company with more than
4,400 properties in 87 countries and territories. Founded by J.
Willard and Alice Marriott and guided by Marriott family
leadership for nearly 90 years, the company is headquartered in
Bethesda, Maryland, USA. At Marriott, the search is never-
ending for inventive ways to serve the customers, provide
opportunities for their associates, and grow the business. The
company that began as a nine-seat A&W root beer stand is
recognized today as a top employer. With its superior business
operations, it conducts them based on five core values: putting
people first, pursuing excellence, embracing change, acting with
integrity, and serving the world.
2.0 Situational Analysis-
Situational analysis is a collection and analyzation of internal
and or external forces that may influence the Ritz Carlton’s
performance and choice of strategies. This report also assesses
the Ritz Carlton’s current strengths, weakness, opportunities
and threats (Web Finance, Inc. 2016). It also assesses the
external forces like political, economic, social-cultural,
technology and environmental. This reports looks at both

internal and external factors that could or will affect the Ritz
Carlton
2.1 Internal Analysis
Internal Analysis is the process of identifying and analyzing the
internal characteristics of the Ritz Carlton. This analysis
explains internal factors and features that differentiate and
distinguish the Ritz Carlton. (Trinity WW, LLC 2015).
2.1.1 Organization Overview
Ritz-Carlton is a luxury hotel chain under the Marriott Brand.
The Philadelphia location is a century-old historic landmark
building in Center City Philadelphia located at 10 Avenue of the
Arts. It has 299 rooms and 18 meeting rooms. There is a 10 Arts
Bistro and 10 Arts Lounge located in the lobby. The hotel has a
fitness center and spa. It offers a Ritz Kids program to teach
kids about the environment and encourage sustainability. The
building was originally a bank built in 1907. It became the Ritz-
Carlton in 1931. It's only steps away from City Hall and the
Subway, with unique food and dining options all around. Next
to the hotel is the Residences at the Ritz-Carlton, which is an
extended-stay hotel for guests seeking accommodations for a
longer stay with full service and amenities available (The Ritz-
Carlton LLC, 2016).
The Ritz-Carlton brand as a whole prides itself on empowering
its employees and establishing pride in their title as "ladies and
gentlemen serving ladies and gentlemen" (The Ritz-Carlton
LLC, 2016). Ritz-Carlton is known worldwide for their
outstanding customer service (The Ritz-Carlton LLC, 2016).
They hold themselves to a unique gold standard and stress a
"6th Diamond" (even though the AAA diamond ratings only
range from 1-5) to express their level of service to the guests-
the sixth is for their mystique, emotional engagement, and
functionality (The Ritz-Carlton LLC, 2016). As opposed to an
official mission statement, the Ritz-Carlton operates and is
guided by this credo (The Ritz-Carlton LLC, 2016).
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 ambiance.
The Ritz-Carlton experience enlivens the senses, instills well-
being, and fulfills even the unexpressed wishes and needs of our
guests." (The Ritz-Carlton LLC, 2016)
2.1.2 SWOT Analysis
A SWOT analysis takes an in-depth look at a company's internal
environment by evaluating its strengths and weaknesses, as well
as assessing the company's external environment by looking at
potential opportunities and threats to the business (Kotler,
2014). Appendix 1 is an example of a SWOT diagram; this
shows the strengths, weakness, opportunities and threats that
the Ritz-Carlton is currently facing.
Strengths
Architecture
The hotel was originally a bank called Girard Trust Exchange
Bank that was designed and created to resemble the Pantheon in
Rome. The aesthetics of the building make it an attractive
tourist spot. (The Ritz-Carlton LLC, 2016)
Location
The hotel is right in the heart of the city. The Ritz Carlton is
very easy to get to by using public transportation making it
convenient for the business traveler. The building is located
across the street from the City Hall subway station and regional
rail; this makes it easily accessible by public transportation.
The location of the hotel in Center City is also a high point
because research shows that consumers staying in luxury hotels
are more likely to seek out other luxury activities like dining
out (Rogers 2014). Due to the central location of the hotel, there
are luxury activities such as shopping and dining out available
everywhere which can help the hotel appeal to higher income
consumers. There are also plenty of luxury leisure activities
available within the hotel like the fine dining or the spa services
available to guests. (Rogers, 2014). Rewards Points Program
Marriott already has a well-known presence in the reward

program realm. Now as Marriott purchases Starwood, who also
has their compensation program Starwood Preferred Guest, this
will make the program even bigger. It increases Marriott's reach
for customers. When Marriott Rewards and Starwood Preferred
Guest combine, Marriott will be the largest loyalty program in
the hospitality business (Clampet, 2016). Arne Sorenson, the
CEO of Marriott told CNBC that “they wanted to create a
combined plan that offered everything a guest could want:
‘Something that is even more powerful for our customers so
they’ll say ‘Why should I get a card with anyone
else?’”(Clampet 2016). This program would change the
hospitality industry by raising the standards of loyalty
programs, and Marriott would have a large client base. As you
see in Appendix 2 and 3 we see how Reward programs influence
customers buying patterns and their decisions. (Harland, 2015)
In Appendix 2 and 3, the graph explains that loyalty programs
can impact customer’s shopping behaviors, influence the
frequency of the client of visits and increase in customers
spending habits due to the advantages of the programs benefits.
The reward program can increase repeat guests because of the
brand loyalty. More than half of all Americans are enrolled in a
travel award program. (Macke, 2015a). Travelers that are active
members in hotel reward programs are typically more
experienced travelers and, therefore, are more likely to stay at
midscale, upscale, and upper upscale/luxury hotels. (O'Donnell,
2015). Parent Company
Being under the Marriott umbrella not only assures more brand
loyalty because of the reward programs throughout all of the
hotels, but it gives you access to the title Marriott has, and that
is being the “largest hotel company in the world”. When
consumers are searching online for a place to stay in the area,
the Ritz-Carlton will have a greater presence in a typical search
engine because of the power that Marriott has in the market.
One-third of travelers says that they try to stay in a hotel within
the same family (O'Donnell, 2015). Consumers prefer to stay
with a brand that has previously worked for them. A good brand

promotes familiarity and trust to potential buyers.
Ritz Kids
The Ritz-Carlton Philadelphia also encourages children to grow
and learn about sustainability efforts during their stay. They get
the chance to explore the hotel and how it works as well as
other fun activities like crafting. Appealing to children is a key
advantage because 9 out of 10 parents ask their children's
opinions when it comes to choosing leisure activities. Higher
household income also correlates with the likelihood of taking
children's ideas into consideration when planning trips or
vacations (O’Donnell, 2014). Promoting this sustainability and
responsibility is precious in today's society as health, wellness,
and taking care of the environment becomes increasingly
important to consumers (O'Donnell, 2014). The Ritz Kids
program is useful for parents who need alone time. Not many
other properties offer this type of program for families (The
Ritz-Carlton LLC, 2016).
Mobile Application
The Ritz-Carlton has a mobile app for its rewards members that
provides a variety of options such as checking in and checking
out via the app, as well as submitting a service request, and the
ability to keep track of your bill and charges during your stay.
The app is important because most business travelers are
seeking efficiency and want to save time- especially younger
millennial travelers. But even so, among all generations the
convenience provided by the Ritz-Carlton app is agreed upon
(Macke, 2015c).
Lobby
The lobby of the Ritz is also a strength because studies show
that 35% of business travelers especially millennials- are
interested in meeting new people on business trips (Macke,
2015c). The lobby of the Ritz has the 10 Arts Bistro and Lounge
which provides the perfect space to mingle and can attract
business travelers. It’s setting within the historic building and
unique all grand marble lobby is what sets it apart from other
full-service hotels. It is open to the public. Therefore, even

people who aren't staying at the Ritz can come in and enjoy the
lobby space- perhaps increasing the share of mind of business
and leisure travelers in Philadelphia (Macke, 2015c).
The Residences
The Residences at the Ritz-Carlton Philadelphia is additionally
a great asset for business travelers who might need a longer
stay. Millennial travelers are most likely to extend a business
trip for leisure so having the option of extending a stay there or
scheduling for lengthier stay can appeal to consumers who
might typically look elsewhere for a longer stay. With the
possibility of the Residences adjacent to the hotel, travelers
don't have to give up the full-service experience when staying
in a condominium (The Ritz-Carlton LLC, 2016).
Weakness
Employees not Meeting Standards
The Ritz-Carlton is known for their high standards of service.
The credo is in place to empower the employees to make the
guest stay nothing, but the best. The employees are not just
working for the Ritz Carlton; they are representing what the
Ritz-Carlton stands for, and that's excellence. Currently, the
Ritz Carlton in Philadelphia has not been meeting these high
standards of service. The customers on TripAdvisor and Ritz
Carlton’s Facebook page have been giving bad reviews because
of the service, some calling this Ritz Carlton the worst one they
ever been to (TripAdvisor 2016). This Ritz Carlton is not
performing at the standards and not standing by what they are
representing.
Renovations
Currently, the Ritz Carlton is doing renovations to their
property. Customers who are staying at the hotel are influenced
negatively about the renewal of the hotel. The Ritz-Carlton
name is getting tarnished due to the renovations. We see this in
a lot of the reviews on TripAdvisor.
"The front lobby is cordoned off as a new restaurant is being
put in. Various renovations are going on. Our room had been
updated, but plaster had been spilled on the door handle and

various other places. The room was comfortable and the
location central, but it is not necessarily worth it until the
renovation is completed."(Pcg123. "Still under Renovation")
Opportunities
Philadelphia Named No. 1 Destination
Philadelphia was recently named the number one travel
destination by Lonely Planet (DiFilippo, 2016). Historically
other destinations have seen increases in tourism after being
named by Lonely Planet (DiFilippo, 2016). With this potential
increase in visits to Philadelphia, the Ritz-Carlton can attract
more guests than in years past.
Growing Business Markets
The growth of businesses and business travel presents a great
opportunity for the Ritz because independent business travelers
are the drivers of the hospitality market. When they visit, they
typically spend more money than an average traveler would.
Usually, when spending money, if consumers are spending
someone else's money on themselves they are less likely to
economize but will attempt to seek out the highest value
(Hayes, 2011). Since the Ritz-Carlton already serves business
travelers, their revenues have a potential to grow as corporate
expenditures for business travel grow. Business markets have a
projected growth of 18% by 2020, resulting in a corporate
expenditure growth of about 3-4% each year (Macke, 2015c).
Democratic National Convention
The Democratic National Convention from 2012 created an
economic impact of $163.6 million to Charlotte, North Carolina
(Spanberg, 2013). The amount of money that will be brought
into the city of Philadelphia because of this convention is going
to be even more significant than the economic impact of the
Pope. (Spanberg, 2013). If Philadelphia does well with this size
and status of a convention, it will bring in more events like this
to Philadelphia meaning more convention revenues.
Copa America Centenario
For the first time playing outside of South America, Copa
America Centenario tournament will be coming to

Philadelphia's Lincoln Financial Field as they host some of the
world's best soccer teams in this 100-year anniversary of the
historic tournament. (DiscoverPHL, 2016). This tournament will
bring in a lot of international business from all around the
world to Philadelphia.
Bleisure
The growing trend of bleisure can additionally attract guests
because most business travelers are seeking ways to incorporate
leisure in their trips and the three most popular bleisure
activities are sightseeing, dining, and arts/culture (Bridgestreet,
2014). Philadelphia is full of these activities, and the Ritz is in
the center of it all. 41% of vacation travelers say they value
having a centrally located hotel the most. With another 27%
saying their most important factor is simple transportation
(Karantzavelou, 2016). The Ritz can satisfy both of these needs,
therefore, being an attractive potential bleisure travel location
for business travelers in the city.
Threats
Oversaturation in the Market
Philadelphia is becoming an attractive city, so many companies
want to build their hotels here or take over other properties. In
Appendix 4 we can see a lot of new hotels are currently under
development. The total number of hotels would increase by 12
and make the total hotels in the city of Philadelphia 97.
(Jenkins, 2015) When the competition increases that gives
people more options to chose from.
Decrease travel due to terrorism and natural disasters
Fear of travel is becoming a prominent theme across the
industry due to terrorist activities and weather like disasters.
Recent attacks like those in Brussels or France resulted in the
closing of borders for travel (Reguly, 2016). Which can have
significant impacts on the entire economy (Thomson, 2015).
Events such as these can deter people from traveling and cause
them to cancel trips and flights. The fear of traveling will
impact the entire economy but specifically the hospitality
industry.

Home sharing
Millennials are being fiercely competed for by home sharing
services such as Airbnb because they are independent travelers
with smartphone access (Shead, 2016). As older generations
begin to leave the workforce, and more millennials are traveling
for business as they advance in the workplace, services like
Airbnb are going to become more of a threat (O'Donnell, 2015).
2.1.3 Customer's Profile
A customer profile is a description of a client or set of them
that includes demographic, geographic, and psychographic
characteristics, as well as buying patterns, creditworthiness, and
purchase history (Web Finance, Inc. 2016).
The Ritz-Carlton Customer Profile
Business Travelers- are consumer group to the Ritz-Carlton
because of their companies’ willingness to pay higher room
prices. The Ritz has a business center, breakout rooms, and
other essentials that a business traveler would utilize. The Ritz-
Carlton is in the heart of the city and the business district, so
the business travelers can get place to place fairly quickly.
Corporate Meetings- are an important group to the Ritz because
their team consists of many business travelers and with the
understanding that their willingness to pay for the amenities are
a lot higher than a regular guest. The Ritz-Carlton has a lot of
space and other facilities that the corporate meeting group can
utilize.
Upper & Middle-Class Families- may seek to economize more
compared to business travelers or corporate meeting travelers,
but are still a precious segment served by the Ritz Carlton. The
Ritz-Carlton is near a lot of landmarks known in Philadelphia.
Ritz Carlton also has Ritz Kids program which can be appealing
to families when traveling, so they have accommodations for
their children if necessary.
2.2 External Analysis
The external analysis is a gathering and analyzation of
information, which consist of external factors and influences

that might affect the performance and profitability of the Ritz
Carlton.
2.2.1 Environmental Analysis (PESTE)
The PESTE analysis is a tool marketer use to analyze the
macro-environment, and it helps determines factors that will
influence the organization in a positive or negative way.
(Professional Academy, 2016). This analysis takes in
consideration from a current event that can impact a company
directly or indirectly. These currents events that the PESTE
analysis gathers Political, Economic, Socio-cultural, and
Technological and Environmental information and trends. These
factors influence the whole industry, rather than just the
organization by itself.
Political
Increase in Sales Tax- is also currently being debated in the
state of Pennsylvania. Tom Wolf is also trying to raise the sales
tax in Pennsylvania. If he achieves this, Philadelphia will
become the fourth highest sales taxed city- right behind
Chicago. Governor Wolf is pursuing legislation to increase the
sales tax rate from 6 percent to 7.25 percent (Levy, 2016). The
increase in sales tax would raise all taxes on the supplies used
by the hotel, raise the taxes on customers who stay at our hotel
and raise prices for supplies for your employees.
Minimum Wage- is currently under debate across the United
States. Tom Wolf is trying to increase the Minimum wage in
Pennsylvania. This increase would raise operating cost and
companies will have to figure out how to make up for that cost.
Governor Wolf is imposing a budget proposes that would boost
the state's minimum wage from $7.25 an hour to $10.15.
(Langley, 2016). Specifically, in the tourism and hospitality
industry, there could be many changes in the workforce
structure as a result of this. An increase in minimum wage could
potentially lead to an increase in cross training- making fewer
employees better-rounded rather than hiring new workers
(Carpenter, 2014). Higher pay is also likely to increase
employee motivation leading to better service in the industry.

Certain positions might get replaced by technological
substitutes to cut costs which could also have a significant
impact on the experience for customers (Carpenter, 2014).
However due to the increased cost for organizations, an increase
in minimum wage would result in fewer vacations and other
bonuses for employees (Carpenter, 2014). An increase in
minimum wage in Philadelphia would undoubtedly improve the
lives of hospitality workers, but it may have impacts on the
companies that would cause increases in prices or various
cutbacks to cover the higher cost (Carpenter, 2014). If minimum
wage does go up, the jobs that don’t require many skills get
payed the same as jobs that do need many skills like working in
a hotel, it will lead to unfair pay to the employee. This issue
could lead to a decrease in customer satisfaction due to
employee work not meeting with the pay.
Regulation of Sharing Economy- The shared economy is
becoming a more prominent part of the hospitality industry. As
travel prices increase companies may start to loosen regulations
on travel policies- making vendors like Airbnb acceptable
accommodations for business travel, thus saving them money on
travel expenditures and travel reimbursements. California
recently passed a law that allows employees to be reimbursed
when using vendors such as Uber and Airbnb (Macke, 2015b).
The sharing economy ups the competition in the corporate travel
market because traditionally sharing economy vendors were not
an option for business travel accommodations.
Economic
Foreign Exchange- is currently changing which has effects
throughout the economy. The value of the United States dollar
is increasing in the world’s exchange rate with other countries,
as the United States rates continue to rise it is going to cost
more for international travelers. In Appendix 5 we can see that
foreign currency is not the same value as the United States
currency. (X-Rates, 2016)
Socio-Cultural
Bleisure- bleisure is a growing trend in the industry that will

affect the way business travelers choose their accommodations
and do business. 83% of travelers use the business trip time to
explore the city; this trend is more popular among younger
travelers (O'Donnell, 2015). This give more opportunities to
retain and obtain more business traveler.
Technology
Online Presence- Technology plays a significant role not only in
how consumers choose and book their hotels but also the
experiences they have. User-generated review plays a vital role
in the research step when people are beginning to look for their
travel accommodations. The presentation of a hotel on a web
page has a significant impact on a potential buyer's decision.
Hotels positioned at the top or bottom of a list were more likely
to be chosen than hotels located in the middle (Ert, 2014).
Technology today impacts the way people travel in more ways
than you would think. As technology and information become
more heavily relied on it will increase consumer confidence in
making their decisions when it comes to discretionary spending
on travel. A study conducted in 2014 showed that 40% of adults
do online research before staying at a hotel they are new at
(O'Donnell, 2015). Significant web presence is critical to
monitor reviews and provide information about properties. More
sources and reports are made available to travelers so that they
are less reliant on direct contact hotels or travel agents in
helping them book a room.
Smart Phones & Messaging- are simplifying the hotel
experience. We see this in a lot of hotels going towards cardless
systems like Starwood's aloft, where the guest can use their
phone as a means to check in and as their key cards. In
Appendix 6 we see that a lot of business travelers of all ages are
using mobile application for check-in's and these mobile app
services are making their travels a lot easier. We also see some
hotels utilizing apps and messaging systems for customer's food
service orders, amenities, and many other things. Smartphone
are making it easier for guest as well as the hotel. In a study
done about the usage of technology by consumers when staying

at a hotel, they saw that customers are engaging a lot in account
management, offers, and enrollment in loyalty programs
(O'Brien, 2016.) Mobile Phones also give the customer direct
access to review websites like Trip Advisor, Yelp and other
sites. Customers can control the image and reputation of the
Ritz Carlton with one button. Mobile phones and applications
are changing the way people travel, and changing how hotels
and businesses operate as a result.
Environment
Global Warming- We are seeing the effects of global warming
this year with the fluctuation of temperatures during the winter
snow storm. These storms resulted in airlines losing millions of
dollars in revenue due to flight delays and flight cancellation.
The storm canceled 3,200 flights that were incoming into the
main international airports with a lot of flight cancellations as
well. (Mayerowitz, 2016). This give a chance for the Ritz
Carlton to make an impression on all of the customers whose
flights were cancelled. As the Ritz Carltons target market is
business travelers, if they can make those customer enjoy their
stay and forget about the cancelled flight it can build a
relationship with that market and make them a repeat customer.
2.2.2 Industry Analysis
An industry analysis is a tool designed to provide the Ritz
Carlton with an idea of the complexity of a particular industry.
Industry analysis involves factors that might have a direct
impact on the Ritz Carlton and the surrounding industry. This
study takes into consideration factors that will affect the hotel
industry directly like new competitors coming into the market,
Substitute products that fulfill the need for accommodation, the
power the supplier and buyer have on the hotel and how
competitive the market currently is. (Kotler, 2014)
Risk of Entry by Potential Competitors
There is high competition in the hospitality industry. The threat
of new entry resides mostly in hotels entering through a
franchise with an established brand. Independent entry doesn't
pose much of a threat because of the barrier those hotels would

be faced with in trying to obtain name recognition (Alvarez,
2015). Initial investments and product differentiation are also
huge barriers to entering the hospitality industry (Alvarez,
2015). Setting your service apart from competitors in a market
like Philadelphia would be a challenge. There are many older
hotels as well as new hotels opening in Philadelphia within the
next few years that offer similar services to the Ritz-Carlton.
Bargaining Power of Suppliers
Some of the major vendors in the hotel industry are food
wholesalers, advertising agencies, and organizations that offer
services that hotels can provide like dry cleaning or catering. A
lot of these supplies can probably be obtained online from
various vendors, so the Bargaining powers of suppliers are
relatively low. Because of how close the Ritz-Carlton is to
Temple, the supply of employees is relatively large because
college graduates of the hospitality program at Temple or other
local schools will be looking for work. The suppliers bargaining
power would be low because if a provider raises the prices on
Marriott, it would not be good for the vendor. There is a total of
16,000 hotel rooms in Philadelphia County (DiscoverPHL,
2016). Marriott owns 3,968 of those rooms, and now that
Starwood has been acquired, the new total is 6,572 rooms.
Marriott will then account for 41 % of the hotel rooms in
Philadelphia (Supplier Network 2016).
Threat of substitute products
As Airbnb and other shared economy vendors becoming
increasingly valid in the world of corporate travel, people might
seek out those accommodations instead of hotels to save money.
Many of the Airbnb options in Philadelphia are a fraction of
hotel prices. However, consumers are also willing to pay hotel
prices for an Airbnb option. The average ADR for Airbnb was
$148.42 while hotel's average was $119.11. That is a $29.31
difference in ADR. The ADR tells us that the average price of
an Airbnb room is more than an average price of a hotel room.
People are willing to pay more for an Airbnb then a hotel. We
see that in Appendix 7 that the central cities are taking part of

Airbnb, and it is slowly growing. In Appendix 8 we can see how
successful Airbnb has become over a couple of years. In
Appendix 9 you know Philadelphia has an active unit growth
percentage of 184.9%, which means that Philadelphia Airbnb
inventory is going to increase rapidly in the future. (Clampet,
2016)
Bargaining power of buyer
Business travelers are recurrent travelers, therefore, more
experienced travelers. This knowledge gives them a tremendous
amount of buying power. Those who travel more often are going
to look for accommodations that can substitute their home
(O'Donnell, 2015). Business travelers mean they will have
higher expectations because they know what they want- and less
patience with poor service. These travelers will also take more
factors into consideration when choosing a hotel.
The customer bargaining power is very high because they have
the choice from many hotels in the area. With the over
saturation of the market customers have choice to picking which
hotel they want to go with. There are 85 hotels in Philadelphia
area (TripAdvisor LLC, 2016). There are 20 hotels in the near
vicinity of the Ritz Carlton. Appendix 10 shows all of the
different hotels customers can choose from the local area
Rivalry among established firms
There are many well-known established companies here in
Philadelphia like Kimpton, Accor, Sonesta, Hilton and much
more. Philadelphia is also filled with a lot of independent
hotels, some of them are even direct competitors to the Ritz
Carlton. There are many other luxury hotels in Center City and
new hotels arriving that are comparable to the services offered
by the Ritz-Carlton. These are addressed further in depth in the
competitor analysis segment.
The Ritz-Carlton has one rival that can match its service and it
price, but many other 4 star hotels could take away business
from the Ritz Carlton.
2.3 Competitor Analysis-
Competitor analysis explains who your competitors are based on

if they have similar characteristics as your company, why they
are your competitors and their strengths and sources of
differentiation as well weaknesses they may have.
Main Competitor
Rittenhouse Hotel- the Rittenhouse Hotel is the second leading
competitor to the Ritz Carlton. The Rittenhouse Hotel is a 5-star
luxury hotel; they are located right in front of Rittenhouse
Square. This property is similar with the Ritz Carlton because
they are located in a well know spot, they have excellent
service, and their rates are pretty similar. Although this hotel
maybe an independent hotel, its presence in the Philadelphia
market is unyielding.
Strength
Location- the Rittenhouse Hotel is located at the west edge of
Rittenhouse Square. The location a very attractive area for
residents and visitors of all ages. (Visit Philadelphia, 2016)
Top Hotel- The Rittenhouse Hotel was named the top hotel in
Philadelphia by TripAdvisor. They were number 1 of 85 top
hotels in Philadelphia. Rittenhouse Hotel has also rated the best
hotel on Hotels.com, Yelp, and many more sites.
Philly Family Travel- the Rittenhouse Hotel Philly Family
Travel service is a program where the children get as much
attention as the parents do. There are amenities at the hotel just
for the children of the families like Complimentary in-room
movies with popcorn, baby amenities including bathtubs,
children's bathrobes and much more (Rittenhouse Hotel, 2016).
Weakness
No Brand- the Rittenhouse Hotel is an independent hotel that is
managed by Hersha Hospitality. They do not have a brand
presences like Ritz Carlton does with Marriott. Ritz-Carlton is
known all over the world with hundreds of properties and with
them being under Marriott's, it increases people's awareness of
the hotel. The Rittenhouse Hotel is only known within
Philadelphia, some people might know other Hersha managed
properties, but it is nothing like Marriott.
Reward Program- The Rittenhouse hotel does not have a

rewards program. Without an award program give Ritz Carlton a
leverage because the reward program gives the customer choice
and incentives on staying with them.
Future Competitor
Four Season- the Four Season is under construction in center
city Philadelphia. The Four Seasons are not a current threat due
to them still being under construction, but the Ritz Carlton must
be mindful of them. They are a 5-star luxury property, located
in center city; their rates will be similar or even higher than the
Ritz Carlton, and they also have a well-known
presences/clientele from the past Four Seasons.
Strength
Location- the Four Seasons area is going to be there key in their
success. They will be on the top floors of the Comcast building,
so the hotel will be a place of accommodation and sight to see.
The second Comcast building will be the tallest building in
Philadelphia.
Business- The floors below the hotel are office spaces to rent
out. The business that is going to be in the building isn't going
to be a small organization, but rather bigger and well-known
companies. When these companies fly in clients or someone of
importance, they can set up a contract with a Four Season so the
clients could just stay there.
Restaurant- The Four Season will have a top floor restaurant
called Sky High Dining. The dinner room will be surrounded by
a glass window, so while you eat you get the see the whole city.
Sky High will be the highest restaurant in the Philadelphia.
Transportation- The second Comcast building will also be
connected to the Suburban station so it will be easier for people
to travel back and forth using Septa.
Publications- The hotel is getting free marketing through many
popular magazines because of the construction of the Comcast
building. The building will be known as one of Philadelphia
landmarks and with that people will know about the Four
Seasons.
Weakness

Brand- the Four Seasons does not have much of a presence then
Marriott does. Marriott is still own 41% of the hotels in
Philadelphia, making them the dominant force here in the city.
Reward program- The Four Seasons does not have a loyalty
program while the Ritz-Carlton has a very established award
program.
2.4 Target Market Analysis
A target market is a group of customers a company wants to sell
its products or services to, and to whom it directs its marketing
efforts (Investopedia, LLC 2016). A target market analysis is
detailed background information about the group such as
income levels, age, sex, who is the decision makers in the target
market, trends, and many other details.
Business Travelers
These travelers are one of the primary markets served by the
Ritz-Carlton Philadelphia. Business travelers a large market for
the hotel industry in general – one-third of Americans travel for
business reasons (Macke, 2015c). From the Appendix 11 we see
that most of the business travelers are male, and they are
between the ages of 25-34(Macke, 2015) with an income level
of $32,500 and up. They are usually the decision makers and
will choose their accommodations. When planning, they will
seek out companies with which they have a relationship such as
a loyalty program or contract. Bleisure is a growing trend
among business travelers in which they aim to incorporate some
leisure activity into their trip and might extend their stay to do
so. Millennial business travelers are the most likely to prolong a
business trip and typically look to meet new people when
traveling for business. 30% of individuals traveling on business
have added days to a business trip for leisure activities. 35% of
business travelers also seek to meet new people on business
trips, which further emphasizes how important a wealth of
experience is to travelers (Macke, 2015c). As leisure and
business travelers are becoming more likely to spend more on
trips, they are also seeking out hotels that offer unique
experiences. Most luxury consumers find upscale activities

when traveling (Rogers, 2014).
Corporates Meeting
This group of people usually work from the same company.
When it comes down to a decision, this process is passed on to
many different people in the organization. The decision could
be made by a male or female event planner, secretary or the
financing team. This group usually does business with places
that can accommodate their meeting, if they have a contract
with a business or if they have past relationship with business.
For a corporate meeting, it can be a wanting or need because
they want to boost morale and make their employees happy, or
it could be a mandatory practice to see how the organization is
functioning. The way to market for corporate meetings is by
prospecting and introduce the company, survey, cold calls,
networks, and professional affiliation .The main issue we face
with this group is that they likely already have a partnership
with another company.
Upper & Middle-Class Families
These travelers consist of two parents or one with a couple of
children. The decision maker of this group usually is the
caretaker of the family usually the mother. The mother's age
would be around 35+. Things the mothers look for when
searching for a product or service would be the place where kids
can have fun, pricing of hotel, packages for family and family
friendly places (i.e. Restaurants, parks and others). On
Appendix 12, Mintel did a survey of families, and the main
thing they all wanted was some daycare for their kids. (Bonetto,
2015) Her income level would be around 32,500 or more. Usual
families stay at hotels because they want to stay there because
they are probably on vacation. What we can market to this
market is through surveys, radio, television, magazines and
social media. The main issue with this market is that they are
somewhat price sensitive and may spend less when seeking
accommodations.
Most business travel is done mostly by men, resulting in
accommodations that cater to males more than women that are

failing to recognize the female buying power (Macke, 2015c).
By catering to things female business travelers consider
important such as safety or certain amenities- hotels can easily
win the female consumer dollar. Maintaining a routine is also
something important to female business travelers. "Women are
more likely to find private workspaces, schedule downtime to
relax, and keep up an exercise routine while they travel"
(Macke, 2015c). Because of this, having certain amenities like
Wi-Fi, work space, and a gym can be a great asset when women
are selecting their accommodations.
Consumers who travel frequently also rely more on mobile
technology than those who don't travel as much. They want to
be more able to book a hotel last minute and use a mobile
application on their phones. Having an app or a mobile
compatible website is more important than ever to appeal to
consistent travelers (Macke, 2015c).
2.3 Summary of Situational analysis
The internal analysis determines the position Ritz-Carlton has
on customers; it also determines how Ritz Carlton differentiates
themselves from their competitors and problems they are facing
internally. The major strength for the Ritz-Carlton is the
branding power it has with Marriott, as Marriot continues to
grow the Ritz Carlton is going to take over the luxury scale
markets. As Marriott continues to create new Ritz Carlton all
throughout the world, they must be conscious about the
properties that are already standing. The Ritz-Carlton
Philadelphia must compete with all of the new features that are
being made. We see that the Philadelphia property is currently
going through some issues with their service. Customers are
saying that this property isn’t up to the Ritz Carlton standards
and that this property is probably the worst Ritz-Carlton they
ever been to (Trip Advisor, 2016). The Ritz-Carlton markets
itself as have the best service and being the most luxuriant
property, but it seems like these things are not being met.
The external analysis explains external forces that could
affect the profitability of the Ritz Carlton. These larger forces

include political factors like minimum wage increase and
increase in sales tax. These both affect the company majorly
because it may increase the operating cost for the Ritz Carlton,
but it would affect the employees even more. The reason for
this is because if the prices of products increase in price due to
the sales tax increase, the employees will need more money to
pay for the products. Then the factor of growth in minimums
wage would also affect the productivity of the employees. With
the external analysis also come with the industry analysis. The
external analysis takes into factors that will influence the sector
as a whole like how Airbnb is starting to take away business
from hotels or how a new property will affect the already
established market.
3.0 Problem Identification
The Ritz-Carlton is a luxury brand known for its high service
standard. Serving mainly corporate travelers or high-end
consumers- there aren't many competitors in the Philadelphia
area offering similar services compared to the brand level of the
Ritz Carlton. The marketing problem currently being faced by
the Ritz-Carlton Philadelphia is that its brand positioning
focuses on the high-quality service and exceptional staff and
that this location seems to be falling short on delivering this
position to customers. These standards are significant because
delivering on the brand promise is a key factor in customers
determining their satisfaction with the service. If a particular
position is advertised to consumers, then it must also be
delivered.
Product's position is made up of two different perspectives.
How the company articulates the hotel’s offerings and sources
of differentiation; and more importantly, how those attributes
and services are perceived by its customers (Kotler, 2014). This
results in the creation or enhancement of a particular brand
image determined by the consumer (Kotler, 2014). It is evident
in the credo that the Ritz Carlton focuses on their service and
staff as being superior. But according to reviews customers are
saying check-in is inefficient, rooms are not available at the

time they should be, and that the staff was unkind. Many studies
compare the Ritz Carlton in Philadelphia to other Ritz Carltons
and say that it is a different and lower quality experience
(TripAdvisor 2016).
It’s possible that the Ritz Carlton also has gotten too
comfortable with some of the factors of competitive advantage
such as brand reputation and the lack of current competition in
the luxury class in the Philadelphia market. However in order to
maintain a stable position, the Ritz Carlton needs to be
continually identifying new potential advantages, in addition to
attempting to understand customer perceptions and sources of
differentiation. When evaluating competitive advantages to
improve a brand’s position, it’s important to consider that
competitive advantages are rarely permanent and not to lose
focus on other areas such as service or staffing because of
things like location or the brand's reputation (Kotler, 2014).
4.0 Market Strategy -
4.0a Marketing Research
Market research is the process of identifying marketing
opportunities and problems. It evaluates a company’s current
marketing decisions and performance (Kotler, 2014). Market
research can help the Ritz Carlton better understand the issues
with their service from the perspectives of the employees and
customers. The Ritz Carlton would be able to get a better
understanding of the issues that the clients are having with their
service. It would also help to understand what the internal
issues are and make the Ritz able to determine why the
employees are not delivering satisfactory service to their guests.
If the Ritz-Carlton can generate and analyze an accurate
perceptual map, we will be able to gauge where we stand
regarding our competition. Perceptual mapping is used to
measure a brand’s position (Kotler, 2014) so if the Ritz can
generate an accurate perceptual map managers will see the need
that the Ritz is currently not delivering on the Ritz Carlton
brand’s position. Perceptual map surveys in appendix 13 can
also be a very useful tool in determining your guests’

satisfaction and getting an idea of what may need to be
improved. You could ask the customer to fill out a survey
during or after their stay.
The Ritz-Carlton could also survey employees on their
perceptions of where the company is lacking and could inquire
ways the company can go about on fixing these issues.
Surveying employees and customers can be a quick and efficient
option and is a reasonably cost effective strategy. Properly
utilizing market research enables us to meet better guest
expectations and therefore better satisfy their needs. When
implementing market research there needs to be a clear research
plan determining objectives, choosing how best to gather that
information, and how to interpret the findings (Kotler, 2014).
So it’s important when developing market research strategies
that the Ritz Carlton keeps these factors in mind.
Market research is critical in making decisions because it gives
you the information necessary to build relationships with
customers and gain insights into the needs and wants of
consumers (Kotler, 2014). It helps you to understand better your
customer and what they are seeking. However when
implementing market research, cost and time are two very
critical factors that need to be taken into consideration. Some
methods of research are expensive and time-consuming so
selecting the proper research method is critical.
4.0b Internal Marketing
Internal marketing is the process of marketing to the employees
of a company. Communicating the brand’s position to
employees is essential because they are its internal customers
(Kotler, 2014). They are responsible for delivering the
company’s position to consumers through every transaction.
Therefore, the primary marketing a company provides should be
to its employees (Kotler, 2014).
The three key components to internal marketing are an
organization's service culture, having a marketing approach to
human resource management, and delivering this information to
employees (Kotler 2014). The Philadelphia Ritz Carlton needs

to reinforce its service culture and ensure that employees are
placing an emphasis on customer service in their actions,
policies, and procedures. The Ritz-Carlton brand is known for
having exceptional staff and service, but that is currently not
being delivered so taking a second look at the staff and current
training, and recruiting procedures can help resolve this issue.
The Ritz needs to make sure that a marketing approach is being
taken to human resources; in their hiring process and training
procedures. This is essential to that the Ritz is recruiting the
best employees to deliver the high-quality service promised in
the brand’s position (Kotler, 2014). Taking a look at the
communication between management and staff can have a large
impact on how employees follow procedures and policies
(Kotler, 2014). How management communicates with employees
is also a critical factor in internal marketing because by
informing employees you are empowering them.
By reevaluating the internal marketing processes currently in
place at the Ritz Carlton Philadelphia, we can make sure that
employees care about customers and that guests’ needs are
being put first in everyday transactions. The strength of the
service culture at the Ritz Carlton needs to be evaluated as well
as the training and recruiting processes.
Internal marketing is essential to making good decisions
because marketing is a holistic function that must be adopted by
every department. In tourism and hospitality- most of the
marketing function is executed by line employees (Kotler,
2014). Due to the inseparability of the production and
consumption of hospitality products and services, employees are
part of the given product (Kotler, 2014). External marketing
efforts are necessary for bringing in guests, but without proper
internal marketing, the guests will not be satisfied with their
service.
4.0c Communication
Communication is a critical marketing strategy that needs to be
considered by the Ritz Carlton. The Ritz-Carlton is currently
undergoing renovations, and a lot of customers are dissatisfied

with their experience because they are unaware of the
construction. The Ritz-Carlton needs to deliver this information
to their clients because it is affecting their satisfaction.
Communication is a two-way process of reaching mutual
understanding, in which participants not only exchange (encode-
decode) information, news, ideas and feelings but also create
and share meaning. In general, communication is a means of
connecting people or places. In business, it is a core function of
management--an organization cannot operate without
communication between levels, departments and employees. See
also communications. (Business Dictionary, 2016)
The way the Ritz Carlton communicates and interacts with its
customers has a large impact on the client's perception of the
company. Some of the initial factors in communication that
need to be considered are the message objectives and the
audience (Kotler, 2014). The purpose of this message is to
inform those who have booked at the Ritz-Carlton Philadelphia
as well as potential guests about the renovations currently going
on at the hotel. Designing the message is another critical factor
in communication (Kotler, 2014). The message should be clear,
concise, and somewhat personal. Offering an additional amenity
or discount might make guests more willing to be understanding
and accepting of the construction process.
We want to inform them of the process and also invite and
encourage them to stay at the Ritz Carlton Philadelphia when
the renovations are completed. Selecting the channel through
which the message will be delivered has a large impact on how
the message is received (Kotler, 2014). The message should be
presented in the Ritz Carlton Philadelphia site as well as the
property’s social media accounts. This message should
additionally be included in any confirmation emails that go out
to guests who have just booked to ensure that they are aware of
what will be going on during their stay. Identifying the results
of this communication is also important because it can help the
Ritz determine how effective or ineffective the delivery of the
message was. For example, if consumers cancel their bookings

with the Ritz or claim they did not know about the renovations,
then the Ritz-Carlton will need to reevaluate its communication
strategies.
5.0 Conclusion
Upon examining the Ritz Carlton Philadelphia, we
discovered the hotel is currently facing problems with its
market research, internal marketing strategies, and
communication. All of these issues are affecting the satisfaction
of guests. Through our recommendations, the Ritz will be able
to repair its reputation and maintain dominance in the luxury
market. By conducting new market research, the Ritz-Carlton
will be able to determine where the deficit lies in delivering
their brand position to guests. Using market research to evaluate
transactions from the perspectives of both the consumers and
the employees can provide new insight for the Ritz Carlton to
draw upon to improve customer satisfaction. Reevaluating the
current internal marketing strategies in place can also help the
Ritz to ensure it is recruiting and employing the right people.
By looking at internal marketing, we can determine what
training needs to be improved on to guarantee employees are
properly trained and are delivering the brand position through
each transaction. One of the primary factors of customer
dissatisfaction resulted from guests’ lack of knowledge about
the renovations the hotel is currently undergoing. By making
sure this information is delivered to guests before their stay, it
can better prepare guests’ expectations in how the service might
differ due to the construction.
Appendix
Appendix 1
Strengths
Architecture of building
Location
Rewards Points Program
Parent Company
Ritz Kids
Mobile Application

Lobby
The Residence
Weakness
Employees Not Meeting Standards
Customers Staying at hotel during renovation
Opportunity
Philadelphia No. 1 Destination
Growing Business Market
DNC
Copa America Centenario
Bleisure
Threats
Oversaturation in the Market
Decrease travel due to terrorism & disasters
Home sharing
Appendix 1 & 2 (Harland, Retailer Loyalty Programs - US -
July 2015)
Appendix 4- (Jenkins, the 12 Most Exciting New Hotels Coming
To Philadelphia in 2015 and Beyond.)
Logan Hotel- is a 5 start luxury hotel under the wing of Hilton
o Location: One Logan Square on Ben Franklin Parkway
o Open Date: 12/2015
o # of Room: 391 rooms
Four Season Hotel- is going to be a 5 Star luxury hotel
o Location: 1800 arch street
o Open Date: 2018
Live! Casino and Hotel
o Location: South Philadelphia
o Open Date: 2018-2019
Unnamed Boutique Hotel in Fishtown-
o Location: Frankford Avenue north of Girard Avenue

o Open Date: N/A
o # of Room: N/a
Hudson Hotel-
o Location: 17th street in Rittenhouse Square
o Open Date: 2016
Kimpton Hotel on Logan Circle
o Location: 1801 Vine Street
o # of Room: 199
Aloft Hotel at the Convention Center-
o Location: 101 N. Broad Street
o Open Date: 2017
o # of Room: 178
W and Element Hotels-
o Location: 1441 Chestnut Street (right behind Ritz)
o Open Date: 2017
o # of Room: 295 rooms under W Hotel and 460 under Element
The Study University City-Hospitality 3
o Location: 33rd and Chestnut Street
o Open Date: 2017
o # of Room: 212
SLS LUX Philadelphia Hotel & SLS international Residence-
o Location: Broad and Spruce Street
o # of Room: 242
AKA university city in the FMC Tower-
o Location: 30th and walnut street
o Open Date: Spring 2016
o # of Room: 268
Roost Rittenhouse-
o Location: 1900 block of chestnut street
o Open Date: Fall 2015
o # of Room: 27
Appendix 5- (Rates Table Converter 1 US Dollar Rates table.)

Appendix 6 (Macke, the Business Traveler - US - July 2015)
Appendix 7 (Clampet, Measuring Airbnb's Real Threat to U.S.
Hotels Using Industry Metrics.)
Appendix 10 (Google Maps)
Appendix 11 (Macke, the Business Traveler - US - July 2015)
Appendix 12 (Bonetto, L. Lifestyles of Young Families - US -
March 2015Lifestyles of Young Families)
Appendix 13 (King, C Perceptual Map 2016)
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THM3396 Marketing in Tourism and Hospitality
Marketing Strategy Proposal, PART A - Grading Rubric
Student Name: ________________________________
TOTAL: /100 worth 10% of final grade
Criteria Standards
Depth and Breadth of
secondary research

Student has presented all
possible relevant information.
Uses specialised literature
sources and has demonstrated
an excellent understanding of
the situation through the use of
a range of information sources.
All relevant aspects covered in
detail.
(90% - 100%)
A lot of information has
been presented. Uses
mostly specialised
literature sources has
demonstrated a very good
understanding of the
situation through the use of
a range of information
sources.
(80% - 89%)
Some information is
missing. Uses general and
some specialised literature
sources and has
demonstrated a good
situation through the use of

a range of information
sources.
(70% - 79%)
Information presented
has many gaps. Mostly
uses general literature
sources and has only
demonstrated a basic
situation.
(60% – 69%)
Information is not at all
adequate to conduct a
situational analysis.
Inappropriate or few
literature sources have
been used and
demonstrates an incorrect
or shallow understanding of
the situation.
(0-59%)
Style and Mechanics
of Writing
(spelling, grammar,
format of referencing – in

text and reference list)
Information presented is
extremely clear. Writes by
integrating and interpreting
other’s and own material in a
fluent and critical manner with
no written presentation errors.
Professional presentation
(90% - 100%)
Information presented is
relatively clear. Writes by
others’ and own material in
a fluent manner and has
few written presentation
errors.
(80% - 89%)
Presentation of information
is difficult to comprehend
in parts Mostly writes by
others and own material
and has no major written
errors.
(70% - 79%)

Mostly writes by
paraphrasing others’
material but with some
integration of own
ideas, and has some
written presentation
errors
(60% – 69%)
Writes by simply restating
the facts with minimal
attempt to paraphrasing
others’ material or
integrate own thoughts. Has
persistent written
presentation errors
(0-59%)
THM 3396 – Marketing in Tourism and Hospitality
Final Project - Part A Instructions
Objective:
· In this individual assignment, students are required to conduct
a comprehensive situational analysis of their selected
organization and its operating environment. Specifically, this
situation analysis should cover the following information:
· Strategic positioning of the company/organization,
vision/mission statement and strategic goals;
· The current targeting market (e.g., market size, profile of

users – both demographics and psychographics);
· Analyze the marketing situation (internal and external);
· SWOT analysis results.
Expectations:
· In conducting this analysis, students are required to utilize
industry-based resources (e.g., tourism bureau, government
websites, quality statistical information, organizational
information) and provide data or evidence in support of their
arguments;
· The submitted work should be professionally prepared with
necessary tables, figures and appendices, the reference/citation
style should follow APA format.
Writing Objective:
· Students are to demonstrate their ability to use multiple
information sources in the development of a situational
analysis.
· Feedback and revision opportunities are provided upon request
before the submission deadline.
Criteria & Marking:
· The Situational Analysis is worth 10% of the student’s final
grade. Students who do not participate in the assessment item or
who perform poorly will be contacted and referred to relevant
support services. The situational analysis will be assessed on
the following criteria:.
· Depth and breadth of secondary research
· Style and mechanics of writing

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