Starwood Hotels and Resorts Worldwide is an American company founded in 1969 and runs hotels, resorts, spas and other properties under 11 famous brands. It now manages some 1,300 properties and employs over 188,000 people around the world (Starwood Hotels, 2016). The report intends to analyse Starwoods brand in Madrid under the following plan structure of: internal analysis; external PESTLE analysis; SWOT analysis; marketing segmentation, targeting and positioning strategies; and the marketing mix programs.
Table of Contents
Company Background.
Micro Analysis
Macro Analysis
4.1 Political:-
4.2 Economic:-
4.3 Social:-
4.4 Technology:-
4.5 Legal:-
4.6 Environmental:-
SWOT
Implications
Marketing Strategy
Targeting
Positioning
1. Marketing Mix
7.1 Product
1.3 Place
1.4 Price
1.5 Promotions
2. Conclusion
Objectives & Core Topics
The primary objective of this report is to conduct an in-depth market analysis of the Westin brand under the Starwood Hotels and Resorts umbrella, specifically focusing on its operations and market positioning in Madrid. The study seeks to evaluate the brand's strategic direction by assessing its internal capabilities, competitive environment, and external macro-environmental factors.
- Internal and external market evaluation using PESTLE and SWOT frameworks.
- Customer analysis and segmentation strategies for specific resort assets.
- Strategic marketing mix planning (Product, Price, Place, Promotion).
- Assessment of current product lifecycle stages across different hotel locations.
- Positioning strategies compared to industry competitors.
Excerpt from the Book
Micro Analysis
The micro analysis relates to the factors that affect the daily tasks and operations such as the customers, competitors, suppliers, partners, employees etcetera. The bulk customers of Westin include European travellers. They are general visitors of families and couples to business clients such as Westin’ s vacation resorts owners, and other hotel chains who uses Starwood franchises (Starwood Hotels, 2014: 2-3). For general visitations to Westin, most purchasing the stay could come for the cultural experience and for the feeling of social and psychological prestige are usually satisfied. Social feedbacks have mostly been encouraging and are great psychological and personal boosters, although extra requests for utilities are usually more personal (Tripadvisor, 2016). This is based on the influences of buyer behavior according to Kotler & Armstrong (2004). Business travellers who come to stay at the Westin usually for 1-2 nights with bills paid by their company. Other vacation or timeshare owners and franchise owners of the Stargroup or Westin brand do have their own shareholders that make the decision based on their distinctive organisational culture.
The key competitors of Starwood Westin in Spain are the Marriot and Hilton groups. The global market share based on the revenue in 2014 is shown as US$15.2 billion in table.A.
Summary of Chapters
Company Background: Provides an overview of Starwood and the product lifecycle stages of specific Westin properties in Madrid, Valencia, and Marbella.
Micro Analysis: Discusses operational factors, customer segments, buyer motivations, and competition within the Spanish market.
Macro Analysis: Examines external environmental influences including political, economic, social, technological, legal, and environmental factors affecting the firm.
SWOT: Outlines the strengths, weaknesses, opportunities, and threats relevant to Westin's competitive landscape.
Implications: Analyzes how societal and technological shifts directly impact market leadership and operational requirements.
Marketing Strategy: Details the segmentation approach for different Westin consumer groups, including business class and upscale leisure travelers.
Targeting: Evaluates product and market specialization as strategic methods to reach specific consumer segments.
Positioning: Discusses the brand statement and the importance of differentiated communication in a crowded marketplace.
1. Marketing Mix: Covers product categories, distribution channels, pricing strategies, and promotional initiatives.
2. Conclusion: Summarizes the necessity of continuous market analysis to ensure the brand remains competitive and effectively positioned.
Keywords
Product Life Cycle, Westin, PEST Analysis, SWOT, Marketing Strategy, Marketing Mix, Distribution Channel, Market Segmentation, Targeting, Positioning, Hospitality Management, Customer Relationship Management, Brand Management.
Frequently Asked Questions
What is the core purpose of this paper?
This paper serves as a case study analysis of the Westin hotel brand, specifically evaluating its strategic market planning within Spain.
What primary tools are used for the evaluation?
The research employs several strategic frameworks including PESTLE analysis, SWOT analysis, and the marketing mix (4Ps).
How is the Westin brand positioned in the market?
The brand is positioned around a service culture of enriching experiences, utilizing modern design and contemporary architecture to distinguish itself from competitors like Hilton.
What are the main segments for Westin?
The study identifies key segments such as luxurious business guests in Madrid, up-scale romantics in Valencia, and golf and spa enthusiasts in Marbella.
What role does the product lifecycle play in the analysis?
The product lifecycle is used to diagnose the competitive health of different properties, noting that some hotels are in a mature stage while others are in a growth phase.
What are the major threats identified for the business?
Key threats include economic instability, the high cost of borrowing, intensive competition from hospitality giants, and external risks like disease or climate changes.
Why are environmental factors significant for Westin resorts?
The analysis notes that sustainability and environmental risks, such as weather patterns or destination safety, are critical to avoiding revenue loss and maintaining corporate responsibility.
How does the paper view the impact of digital technology?
Technology is seen as critical for customer relationship management and as a platform for mobile bookings, requiring Westin to keep pace with customer IT expertise.
What is suggested regarding the acquisition of Starwood by Marriott?
The report acknowledges the acquisition as a major competitive development that alters the global market standing of both entities.
- Quote paper
- Magister Patrick Sim Puay-I (Author), 2010, A Case Study Paper of Starwood Group Hotels (Westin) Management. Market Planning of Hotel Resorts, Munich, GRIN Verlag, https://www.grin.com/document/1561370
