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ASSIGNMENTEXAMPLE.pdf
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Full Sail University Project & Portfolio II: Business and Marketing
An Environmental Analysis for BULGARI Hotels and Resorts
Great Student October 14th, 2017
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The STEEPLE Analysis SOCIOLOGICAL (#O1 and #O3):
A. Since we host an elite group of individuals whose income is over and/or close to the million-‐dollar level, we need to understand where this elite concentrates the most. We see that of the 15 top cities in the world with the most millionaires, seven of them are located in Asia totaling an outstanding number of around 1,374,000 millionaires (Worldatlas.com, 2015).
B. “North America is still the richest continent by total regional population of millionaires”. This is proven by the 58% increase of millionaire individuals in the last couple years (Worldatlas.com, 2015).
TECHNOLOGICAL (#S1 & #W1): A. Guests want the same technology experience they have at home or office and if they
have a bad experience may not return to hotel.” (O’Halloran, P. 2015). Meaning that fast and free Wi-‐Fi is a must.
B. Luxury is a synonym with the BULGARI brand and needs to serve like so. Studies confirm that guest “expect their experience within a hotel to totally personalized to them” catering them with the most detailed services like a “welcome message on the TV screen and food preferences” as well as “Personal training or flowers in the room.” (O’Halloran, P. 2015).
C. The process of check-‐ins has been increasingly changing all over the hospitality and truism market. We have multiple options to check in like self-‐serve check in on designated kiosks, mobile/online check-‐in, even “iPad check-‐in with a staff member.” It is understood that hotels that have multiple check-‐in options “will notice a difference.” (O’Halloran, P. 2015).
ECONOMIC (#T1 & #O1): A. Inflation is always a thing to look for since this factor can make one’s money have more
or less buying power than previous years. Statiststa.com shows on their Global inflation rate from 2010 to 2020 that inflation will increase between 2016 and 2017 by .14% and it will be at its highest during 2017 at 3.56%. It is expected that this percentage will decrease by 2018 but will then slowly go up again until 2020. (Global inflation rate from 2010 to 2020, n.d.).
B. “The global hotel industry revenue is predicted to reach $550 billion US dollars in 2016.” This “showcases an increase in revenue of almost $100 billion US dollars in the past five
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years” as in 2011 the hospitality sector revenue was about $457 billion. (Mangan, M. 2015).
C. Millennial are going to become the “dominant consumer group by 2017” (Mangan, M. 2015) in the hospitality sector. This shows a shift of marketing strategies as possible changes in services according to the new possible target market.
ECOLOGICAL (#W2): A. Thanks to the amount of data that can be found on the Internet, travelers now have
enough resources to research “a hotel’s environmental sustainability polices” and this can give a hotel “a clear competitive advantage” over other hotel chains with the eco-‐ conscious traveler market. (Thompson, 2008).
LEGAL (#W3 & #S3):
A. Erin Andrews recently won a long ongoing lawsuit against West End Hotel Partners and Windsor Capital Group, the managers and owners of the Nashville Marriott. She was awarded $55 million. This is not a direct lawsuit against Marriott but it does have an effect since the name and reputation of any of Marriott’s hotel lines is questioned for security and professionalism. (Victor, D. 2016).
ETHICAL (#S2):
A. “Marriott was forced to pay $600,000 in penalties for its Wi-‐Fi blocking” (Chayka, K. 2014) in 2014. This showed they were attempting to profit from a service they were not been delivering properly or not providing it at all.
B. In 2014 Marriott was called one of the “2014 World Most Ethical Company” (Marriott: Good Business is Ethical Business, 2014) by a independent research center called the Ethisphere Institute. The research takes into account different points like reputation, leadership, corporate citizenship, culture and ethic between others. This means that Marriott International had a consistent good performance in all of the various areas that determined this award.
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The SWOT Analysis
HELPFUL HARMFUL
IN TE RN
A L
STRENGTHS
1. BULGARI Hotels and Resorts offer free Wi-‐Fi to all of its guests as well as extremely personalized service.
2. Parent company Marriott is one of the most recognizable hotel brands in the world and the biggest hotel chain in the world as well. Their multiple awards can cancel out any negative comments and or errors that occur to the brand. Also, the BULGARI hotel line independent from the Marriott name, which helps it stand away from any major scandals of the parent company.
3. Since there is no Legal situations under the BULGARI Hotels and Resorts line the brand image is intact. Also, there are no legal situations surrounding the BULGARI jewelry brand either.
WEAKNESSES
1. Traditional check-‐in is the only option at the BULGARI Hotels since the hotels are designed to host few guests at a time.
2. Luxury has never been a synonym of ecologic sensitivity. Ostentatious living is not normally ecological and BULGARI Hotels and Resorts do not focus on many ecological efforts.
3. Due to this, hotels under the Marriott family that are not directly managed by Marriott’s international management like the BULGARI Hotel and Resorts are, could be seen as unprofessional.
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EX TE RN
A L
OPPORTUNITIES
1. The Asian market has a big number of individuals who fall under BULGARI hotel’s target market. Finding specific ways to market to this sector could make BULGARI Hotel and Resorts awareness increase in the Asian continent.
2. New generation entering as the prime target market of the hospitality industry. New opportunities to work on marketing strategies and competitive advantages. Also, increase in the hospitality sector to be expected in the following years due to these market demographics.
3. Increase of millionaires in the US could help make important market research of the locations this demographic would like to visit. This is important since as the target market number increases BULGARI Hotels has the opportunity to be the first brand to call their attention and gain their loyalty.
THREATS
1. With global price increases on the rise, the BULGARI target market would have less disposable income to travel. Also, prices would have to rise to comply with the increase of prices in the general market.
2. The BULGARI Hotel parent company has a great reputation but the BULGARI Hotels and resort may find themselves struggling to make a name for themselves as an independent hotel line.
3. A lot of fashion luxury brands are increasingly expanding themselves to the hospitality and tourism markets. This means a possible increase in competition.
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Conclusions:
BULGARI Hotels and Resorts is still in the very beginnings of its growth. Even with 3 current locations in Milan, London, and Bali (which is the highest quantity compared its competitors) the BULGARI Hotels line has not reached the maximum exposure it should. This is not necessarily a bad thing, BULGARI Hotels and Resorts are well backed by its parent company, Marriott international, is doing way better than average in the stock Market at the current moment. There is not any news of mergers or corporate decisions that could affect the stock price of the company either.
There is also to consider the continuous growth of the BULGARI hotel line with its 2018 future location in Dubai where two of its direct competitors, Versace and Armani, have already positioned themselves. The BULGARI Hotels and Resorts are well positioned as an extremely luxurious hospitality service company thanks to their extremely elite services. Even like that, there is place for improvement in the innovation and branding departments of this company. Their target market shall not be changed but their priorities need to be reframed. The company needs to become not only recognizable to some of the elite but rather all of them. BULGARI shall become the hotel the rich and famous absolutely have to stay in for its brand to be fully grown.
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References: Chayka, K. (2014). Retrieved April 17, 2016, from
http://www.thedailybeast.com/articles/2014/12/31/how-‐ethical-‐hotel-‐chain-‐marriott-‐ gouges-‐guests-‐in-‐the-‐name-‐of-‐wi-‐fi-‐security.html
Cities Boasting the Most Millionaires Around the Globe. (2015). Retrieved April 14, 2016, from
http://www.worldatlas.com/articles/cities-‐boasting-‐the-‐most-‐millionaires-‐around-‐the-‐ globe.html
Global inflation rate from 2010 to 2020 | Statistic. (n.d.). Retrieved April 17, 2016, from
http://www.statista.com/statistics/256598/global-‐inflation-‐rate-‐compared-‐to-‐previous-‐ year/
Mangan, M. (2015). Hospitality Net -‐ The Global Hotel Industry and Trends for 2016. Retrieved
April 17, 2016, from http://www.hospitalitynet.org/news/4073336.html Marriott News Centre. (2014). Marriott: Good Business is Ethical Business. Retrieved April 17,
2016, from http://news.marriott.com/2014/03/marriott-‐good-‐business-‐is-‐ethical-‐ business.html
O’Halloran, P. (2015). Technology Development in the hospitality Industry. Academy of
Business Research Journal. 2015, Vol. 3, p69-‐74. 6p. Accession Number: 113619380. Retrieved from http://web.a.ebscohost.com.oclc.fullsail.edu:81/ehost/detail/detail?vid=3&sid=3d79d5 38-‐d7fc-‐4745-‐93e3-‐ f5cf61416410%40sessionmgr4002&hid=4101&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d %3d#AN=113619380&db=bth.
Thompson, S. (2008). Role of Eco-‐Friendly Concepts in the Hospitality Industry. Retrieved April
17, 2016, from http://smallbusiness.chron.com/role-‐ecofriendly-‐concepts-‐hospitality-‐ industry-‐76075.html
Victor, D. (2016). Erin Andrews Awarded $55 Million in Lawsuit Over Nude Video at Hotel.
Retrieved April 17, 2016, from http://www.nytimes.com/2016/03/08/business/media/erin-‐andrews-‐awarded-‐55-‐ million-‐in-‐lawsuit-‐over-‐nude-‐video-‐at-‐hotel.html?_r=0
