Distribution Strategy - Group Project - 1.5 pages case study

One type of primary research would be online marketing research. This would be a great starting point to evaluate initially how consumers view our company and determine appropriate next steps in how we could leverage our mobile application, Concierge Buddy, to resolve current issues our consumers have with our brand or their experience when staying at any one of the thirty Marriott chains so we are aware of what improvements we need to make to enhance their experience. Through this research outlet, we would be able to conduct online surveys, focus groups, and track consumer reviews through social media outlets, blogs, and websites. The ethical advantage to using online surveys would be appealing to consumers since it is less intrusive than traditional methods of mailed surveys or phone calls. (Kotler and Armstron, 2020) It is more convenient for consumers to complete online surveys and we would receive faster survey results.

A second type of primary research that would be effective for our company’s product would be observational research. Observational research gathers primary data by observing our target consumers, their actions, and various situations so we could evaluate their daily actions as a way for us to best align our product with the needs of our target consumers. The only way to entice our consumers is by first understanding how they could use our product and what role our company can play in influencing our consumer’s daily lives. We could implement ethnographic research, which would require trained psychologists to watch and interact with consumers in their natural environments to provide accuracy in understanding the true needs of our consumers to determine how to best align our product to their everyday lives. (Kotler and Armstrong, 2020) For example, why do our consumers initially look for travel experiences and what do they enjoy in their spare time? When a consumer is looking to travel, what are their frustrations during the planning process or while they are on vacation? These are important questions to answer to better understand our consumer and we will need to have a glimpse into their daily lives. However, we would need to be careful of the ethical implication of this type of research since we want to monitor consumers actions through reasonable means and set boundaries to ensure we conduct this research in a nonintrusive manner. We should be mindful of authenticity when implementing this type of research.

A third type of primary research method that would be beneficial for our product is experimental research. These experiments would be conducted using specific focus groups and giving these focus groups different treatments to check for differences in various group responses. (Kotler and Armstrong, 2020) Since our mobile application would serve a variety of different ages ranging from Millennials to the Baby Boomers generation, we want to ensure our technology meets the needs of these vastly different consumer characteristics. By experimenting on focus groups with various ages, we will be able to customize the experience for a broad audience. Baby Boomers control 83 percent of consumer spending and account for half of trips abroad so they are a generation that we need to pay attention to as we market our mobile application to this population. This generation continues to want to live an active lifestyle and looks to health and fitness to be incorporated in their travels, which is something to keep in mind during our research process (Hudson, 2010) Whereas, Millennials are delaying marriage and children, but are keen on traveling with dogs so we could leverage this research in our mobile application by allowing dog-friendly Marriott chains. (Plunkett, 2021) An ethical implication of this research methodology is to ensure our focus groups are as diverse as possible to truly capture the essence of our consumer’s needs as well as assess through our previous research how we want to differentiate these experiments to maximize improvements to our brand through our mobile application.

Insights and Segmentation: Target Customer

Marriott currently utilizes differentiated marketing where it designs separate offers for different market segments, creating a personalized experience for its variety of consumers. Marriott has more than 1.4 billion rooms, making it the largest hotel chain worldwide so it has to appeal to a variety of travelers. Marriott’s traditional target audience includes corporate and group travelers (Karmin and Sebastian, 2021) Our mobile application needs to appeal to our target consumer of a traveler that enjoys adventure and convenience, one that enjoys all the luxuries a vacation has to offer. Our market segment for the product should appeal to Baby Boomers and Millennials alike, ensuring our mobile application is user-friendly but innovative in what our hotel can offer that its competitors can’t. For instance, by offering dog boarding options through our mobile application, it would appeal to Millennials. Through our research, we will determine through our different methodologies what would be most appealing to our target consumer and implement their needs based on our findings through our app.

Insights and Segmentation: Value Proposition

The value proposition of our product will be focused on luxury and convenience. We want our consumers regardless of what Marriott hotel chain they stay in to feel like a VIP using our Concierge Buddy. Our mobile application will make their travel experience customizable with easy searching for local excursions and exclusive offerings from local partnerships only available through Marriott. The application will also serve as a consumer’s personal concierge at the hotel by allowing them to use the mobile application as a room key, a tv remote, and room service all in one location.

Product Strategy: Brand Equity

The Marriott umbrella in the hospitality industry holds to a higher standard over motel options, such as Motel 6 or Super 8. The Marriott chains offers customers a comfortable place to stay, while giving the customer price options.

“Marriott owns and has operations with nearly 30 hotel brands belonging to Classic Luxury, Classic Premium, Distinctive Luxury, Classic Select, Distinctive Premium, Distinctive Select and Classic Longer-Stays. Some of them are The Ritz-Carlton, Sheraton, Delta Hotels, Renaissance, Le Meridien, Westin, Aloft Hotels, Bulgari Hotels and Resorts, Fairfield, Residence Inn and Courtyard. Marriott offers personalized and premium services to its esteemed guests” (Bhasin).

Providing a wide range of hotel experiences and price range give the customer options, thus creating that personal relationship and loyalty.

Recently, the brand expanded gaining Starwood Hotels & Resorts, which gave them an upper hand in the industry, offering more upper-upscale hotels. While improving some names, such as Sheraton, and have more growth in the works (Montevago).

The company also plans to have integration in their loyalty programs, meaning Marriott Rewards customers, Starwood Preferred Guest customers and Ritz-Carlton Rewards customers will all be operated in one overall program. This, once again, gives customers options of their comfortability while earning rewards from all options, rather than each individual stay (Montevago).

Product Strategy: Ethical Implications

When it comes to creating a mobile application, there can be ethical implications that may arise. The first thing to look at is making sure the application does not discriminate against any demographic. It’s been stated that this product is for the avid traveler, but it can be used by the casual traveler as well. It’s important to market the product as a guide to make traveling easier; from hotel cost for the frugal customer, to nearby restaurants and entertainment for families, as well as to reward status and potential gain for the professional traveler. When marketing the application, race, age, nor gender will be discriminated against, as it will be created for everyone.

Another ethical implication could include safety. It will be noted that when the application is opened, to not use while driving. IPhone and Android users will have Concierge Buddy literally at their fingertips, but will make sure they can safely access the program. Similar to GPS games, such as Pokémon Go, a warning will appear and will ask the user to continue. If the application detects fast movement, it will prompt the user if they are the driver or passenger of the moving vehicle. The safety of the customer is of utmost importance.

For some travelers, the application may not be something that is used often and could be forgotten about. It is important to ensure users that their loyalty will not go unnoticed or pushed to the side. Unlike other loyalty brands, the points earned from Concierge Buddy will not expire or get lost. The customer must remember email used, but will have the option to change password via email if forgotten. Many programs frustrate their customers with expiring points and offers. Although the offers, such as a discounted stay or additional add-on, may expire, their points do not. As long as the points are there, the customer can redeem for add-ons. For those who may have used the application and deleted it, the program will send monthly email reminders about their points balance as well as brand promotions that may be active for the Marriott brand.

Each user of the application will adhere to the Terms and Conditions in the agreement, but many of the advantages will be included in the marketing. Advertising that points earned do not expire will intrigue more customers to try it out. Showing people of all age, color and gender will allow more customers to feel appreciated and not push aside. Putting the safety of the customer above the use of the application will show customers that they are important to the brand, and not just a dollar sign. All of these strategic advantages will undoubtedly put the brand ahead of the rest.

Product Strategy: Product Positioning Statement

“For all traveling guests who are looking for a companion to help make their experience fun, easy and comfortable, the mobile application ‘Concierge Buddy’ is the hospitality industry’s number one downloaded app. This free mobile app is created with all travelers in mind, and will provide you with questions about price and availability in the brand, local entertainment and activities all while earning loyalty points from any of our Marriott brands. Unlike other larger hotel brands with just a simple booking application, Marriott has created ‘Concierge Buddy’ to fit your individual needs. Looking for fun on vacation? CB can help! Here on business? Let CB suggest coffee and wifi spots. In town for a convention? Let CB show you breakfast and midnight snack restaurants. Whatever your needs, let ‘Concierge Buddy’ do the work for you.”

References: