We gathered secondary data to obtain information on Ritz-Carlton, including background information, positioning, brand central idea, communication, and more. In addition, we examined the hotel Performa and verified their claims about the environment, facilities, and service quality of staff using specific information sources. "Travel and Leisure" and "Frequent Traveller" magazines and the Ritz-Carlton Hotel Company provided us with the secondary data we needed.
In 2006, the application summary for the "Malcolm Baldrige National Quality Award" and the Ritz-Carlton's website were reviewed. The data was gathered from various sources such as magazines, web portals, the travellers RITZ company Performa, and other media resources.
We have used various sources like newspapers, magazines, and journals to ensure the accuracy of our facts and figures. Successful management planning and effective marketing of our products depend on the coordination of efforts within our organization. In
...the hotel management industry, everyone's joint effort leads to organizational profits. Hence, implementing planning and management systems is crucial for achieving business goals, especially in marketing. Many organizations work together to achieve their objectives through teamwork because marketing a product involves multiple steps that cannot be accomplished by an individual alone.
Marketing any product cannot be accomplished by one person alone. The responsibilities within marketing include organizational planning, distribution channels, media advertising, and reaching the target consumer market. These tasks require a collaborative effort of many individuals working towards a common goal. In the hotel industry specifically, effective marketing plans are not created by a single entity but rather require large organizations with numerous staff who can strategize together. (Chapter IV 4)
0 Data analysis 4.1 Environment Ritz-Carlton is a luxury hotel that employs an elegant style in it
decorations to provide guests with a one-of-a-kind experience. This is evident in the exquisite guestrooms and suites that are furnished with 18th century English antiques, oil paintings, and opulent mahogany furniture.
The Ritz-Carlton aims to offer a unique and sophisticated experience with its Art Collection, which combines classic European and American antiques with Oriental pieces that represent Hong Kong's cultural heritage. This is sure to appeal to art-loving travellers. Their excellent personal services create a warm and welcoming environment, as demonstrated by their motto "We Are Ladies and Gentlemen Serving Ladies and Gentlemen". This slogan acknowledges the staff (the first "Ladies and Gentlemen") and guests (the second "Ladies and Gentlemen") are treated with utmost respect. In fact, the staff refers to themselves as "internal guests" and addresses guests by name, creating a friendly and comfortable relationship.
According to Johnson (2006 116-41), the Ladies and Gentlemen who clean the guestrooms at Ritz-Carlton use a small bag similar to those used by servants at home, instead of a trolley commonly found in other hotels. This creates a welcoming feeling for guests upon their return, as if they were returning home. The hotel is equipped with soothing background music in the lobby, corridors, fitness center, and other areas, contributing to a tranquil atmosphere. Despite having a modest 216 rooms, Ritz-Carlton is not overcrowded. Furthermore, the hotel uses large sofas and tables in the lobby and restaurants to establish a comfortable atmosphere for guests.
The Ritz-Carlton's foundation is built on Gold Standards which are reinforced daily in various forums including the daily line-up meeting. These standards have an incredible empowering effect on employees, encouraging them to think and act independently with
innovation for the benefit of both customers and the organization. Additionally, they help to establish a strong value and culture within the hotel while increasing employee loyalty and motivation. This results in improved service quality and enables them to provide a warm and relaxing environment for guests (Johnson 2006 116-41). Communication is also a crucial aspect of the Ritz-Carlton's approach, as their Ladies and Gentlemen treat their guests and each other with respect and dignity.
The hotel provides a welcoming and personalized experience for guests. They greet guests warmly and use their name. Upon departure, the hotel organizes a fond farewell and hopes to provide a warm goodbye. The hotel aims to create a family-like environment and friendly atmosphere through "guest recognition", which uses a CLASS database to remember returning guests' preferences and information. This allows the hotel to understand each guest's unique needs and create lasting relationships. For instance, if a guest requests a special pillow or iron, it will be provided on their next visit. As a result, personalized services can be offered to enhance the guest experience.
According to Lynch (2006) (4-12), the hotel conducts market research to gain insights into guests' needs, wants, satisfaction and views on hotel facilities and operations. The research includes soliciting feedback and suggestions from guests. By using this information to understand customers' preferences and daily operational challenges, Ritz-Carlton can identify and remedy problems and make improvements. The company's objectives are communicated to all employees, who are expected to support them.
(Johnson 2006, pp. 116-41) describes the leadership program implemented in the hotel. The program involves leaders working alongside employees for a minimum of 6-7 weeks prior to the hotel's
opening and providing them with full support. The President and COO also personally engage with new employees through both one-on-one interactions and group settings. The emphasis on effective communication ensures that employees are aware of their responsibilities, as well as their performance levels.
Employees at Ritz-Carlton are encouraged to report minor issues to their supervisors in order to improve service performance. The company shares best practices with employees through email and communicates results and improvements in the Quality newsletter. The newsletter provides information on company actions and future plans, helping employees understand the direction of the company.
Ritz-Carlton strives to fulfill guest needs and satisfaction as their primary objective. According to Appendix 8, their internal customer satisfaction data is higher than service company norms. They have also experienced a reduction in turnover rate from 1989 to 1999 (Appendix 9). In a survey conducted by Hewitt Associates in 2001, Ritz-Carlton was named Hong Kong's Best Employer, indicating excellent communication between the company and employees.
According to Taylor (2001, 103-18), fostering employee loyalty can improve their performance in meeting customer demands. As a result, all staff members must adhere to the Ritz-Carlton clothing and grooming standard to present a professional image and take pride in their personal appearance. This is outlined in the 4.5 Staff Behaviour guideline.
The Ritz-Carlton hotel requires its staff to anticipate guests' needs, resolve issues, and maintain a secure and safe environment. To meet current and future demands, the company is committed to developing talented individuals both internally and externally through a rigorous screening and selection process that includes structured interviews to measure desirable behavior. The hotel is known for providing extensive training to its
employees, with 120 hours of training per year per employee. All employees undergo a mandatory two-day orientation process, including classroom training on the Gold Standards and Green Book. (Mill 2005 117-28)
The Gold Standards serve as the foundation for training all employees. Delivering these concepts can occur through various methods, including lecturing at new internal customer orientation, daily line-up meetings, and administering positive and negative reinforcement. The Green Book provides guidance for quality improvement processes in control and improvement. This process is emphasized during training and development and ingrained in the company's process-oriented culture. The Ritz-Carlton's strict selection process, along with exceptional training, ensures the best workforce and provides guests with the highest level of service. The Gold Standards, including The Credo, The Three Steps of Service, The Motto, and The Twenty Basics, represent a set of core values held by the company.
The "lion and crown" logo of Ritz-Carlton is a combination of the British royal seal (the crown) and the financial backer (the lion). The combination represents both privilege and power, reflecting Ritz-Carlton's superior status. This symbolism extends geographically, as the logo has been used on five continents.
According to Johnson (2006 116-41), despite the relatively short 19-year relationship between Ritz-Carlton and its customers, the market for their personalized services persists. Even with a lower longevity rate, many business travelers and celebrities choose to stay with Ritz-Carlton and show their appreciation. This results in a remarkable 40% level of customer loyalty, much higher than the industry average of 25%.
As a growing number of women travel abroad, the heritage is formed and Ritz-Carlton has implemented strategies, like the L. ?, to maintain a newsworthy brand.
The
D.Y. Program offers luxury amenities designed specifically for guests, with items that are frequently needed but often forgotten. Guests can expect amenities like nail varnish remover, facial moisturizer, lip balm, and eye-mask. This program aims to attract female clients by providing user-friendly rooms and showing them respect. The Ritz-Carlton differentiates itself from other hotels by capturing this market with an innovative and fresh program.
(Mill 2005, pp. 117-28) highlights Ritz-Carlton's approach in establishing their brand organization through a combination of traditional and new media channels. While the former involves using business and leisure-related magazines, the latter relies on online and database marketing. These media channels are preferred by Ritz-Carlton as they cater to the luxury business travel segment.
The achievement of success in reaching upscale target markets is implied, and the CLASS database is utilized to develop communications that better meet people's interests and needs while being cost-effective. Companies work together to accomplish their goals and objectives within shorter time frames through coordinated efforts and dedication. Wearing (2006, 143-59) outlines several steps involved in this process, including observing the system, evaluating problems, planning, generating ideas, evaluating objectives, prioritizing tasks, forming teams to achieve goals, designing work, and assigning objectives to those teams.
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