Marketing Mix of Starwood Hotels and Resorts and 7Ps (Updated 2024)

The Marketing mix of Starwood Hotels and Resorts analyses the 7Ps of Starwood Hotels and Resorts, including the Product, Price, Place, Promotion, People, Physical Evidence, and Process of Starwood Hotels and Resorts. As the name suggests, Starwood Hotels and Resorts deals in resorts and hotels associated with the Hospitality industry. t is of American origins and is currently a subsidiary of its parent company, Marriott International. This global company was founded in 1969 by its founder, Barry Sternlicht, and was established as a corporation in 1980. Marriott International, in the year 2016, 23rd September, finalized its merger with Starwood, creating the largest chain of hotels in the global market. t faces stiff competition from several rival companies, which include.

• InterContinental Hotels
• Wyndham Worldwide
• Hilton Hotels and Resorts
• Hyatt
• Holiday Inn
• Best Western International Inc
• Crowne Plaza

About Starwood

• Type: Hotel and leisure company
• Industry: Hospitality
• Founded: 1981
• Founder: Barry Sternlicht
• Headquarters: White Plains, New York, United States
• Area served: Worldwide
• Key people: Arne Sorenson, Chairman and CEO
• Number of employees: 160,000

Starwood Hotels and Resorts Product Strategy

Starwood Hotels and Resorts is one of the largest leisure companies in the world. Franchisees operate, own, and manage vacation properties, residences, spas, resorts, and hotels. By the end of 2014, it had twelve hundred properties to its name, which it managed under eleven brand names. Starwood hotels are built by international standards. s they cater to an upscale target audience, it is necessary to give special attention to its locality and ambiance.

The new Product Mix of Starwood in 2024 is as follows (Source).

1. Luxury Brands: St. Regis: Known for its luxury and bespoke service, St. Regis hotels cater to high-end travelers seeking exclusive and elegant experiences; The Luxury Collection: A group of hotels and resorts offering unique, luxury experiences in iconic destinations worldwide; W Hotels: Focused on contemporary luxury, W Hotels is known for its modern design, vibrant nightlife, and innovative guest experiences.
2. Upper Upscale Brands: Westin: Westin hotels focus on wellness and rejuvenation, with signature offerings like the Heavenly Bed and wellness programs; Le Méridien: Targeting the creative and culturally interested traveler, Le Méridien hotels blend distinct European chic with local culture.
3. Upscale Brands: Sheraton: One of the most recognized global hotel brands, Sheraton offers full-service accommodations and meeting spaces, targeting business and leisure travelers. Aloft: Aimed at the tech-savvy, younger traveler, aloft hotels provide a modern, fresh, and fun experience.
4. Select-Service Brands: Four Points by Sheraton: Offers a straightforward, comfortable stay with all the essentials, targeting business travelers and small to mid-sized events; Element by Westin: Focused on eco-conscious extended stays, Element hotels provide spaces focusing on sustainable living.
5. Timeshare Properties: Sheraton Vacation Club and Westin Vacation Club: Offering timeshare vacation experiences, these properties provide home-like accommodations in desirable destinations.
6. Loyalty Program: Starwood Preferred Guest (SPG): Although integrated into Marriott’s loyalty program, Marriott Bonvoy, SPG was known for its innovative approach to guest loyalty, offering rewards and experiences across Starwood properties.

Starwood Hotels and Resorts Pricing Strategy

Starwood Hotels & Resorts, recognized for its innovative approach to marketing management in the hospitality sector, employed a dynamic pricing strategy that was both market-responsive and customer-centric. Here’s an expert analysis of their pricing strategy:

1. Value-Based Pricing for Diverse Brands: Each brand under the Starwood umbrella, from luxury to budget, was priced based on its value proposition. Luxury brands like St. Regis and W Hotels command premium prices for their high-end services and exclusive experiences. In contrast, brands like Four Points cater to budget-conscious travelers with more affordable pricing.
2. Dynamic Pricing Based on Demand and Seasonality: Starwood adeptly used dynamic pricing, adjusting room rates in real-time based on demand, seasonality, and occupancy levels. This approach maximized revenue, especially during peak travel seasons or special events, and remained competitive during off-peak times.
3. Segmentation Pricing for Different Customer Groups: Starwood implemented segmentation pricing, offering different rates for business travelers, leisure travelers, groups, and loyalty program members. This strategy enabled them to cater to various customer needs and maximize revenue from market segments.
4. Geographical Pricing Strategy: Understanding the diversity of global markets, Starwood’s pricing varied by location, reflecting the economic conditions, competitive landscape, and cost of living in each region. This ensured optimal pricing for properties in different countries and cities.
5. Revenue Management Systems: Utilizing advanced revenue management systems, Starwood efficiently forecasted demand and adjusted prices accordingly. This data-driven approach helped optimize room rates and occupancy, ensuring a balanced strategy between maintaining competitiveness and maximizing revenue.
6. Loyalty Program Incentives: The Starwood Preferred Guest (SPG) program was crucial in their cost-based pricing strategy. t provided members exclusive rates, rewards, and offers, encouraging repeat business and fostering customer loyalty.
7. Promotional and Package Deals: Starwood often introduced promotional rates, packages, and special offers to stimulate demand during slower periods, attract new customers, and offer more value to repeat guests. These deals often included additional amenities like dining credits, spa services, or late check-outs.

In summary, Starwood’s pricing strategy was a sophisticated blend of understanding customer value, leveraging market dynamics, and utilizing advanced technology for revenue management. This approach allowed them to optimize profits while maintaining a solid market position across their diverse brand portfolio and distribution channels.

Starwood Hotels and Resorts Place Strategy

Starwood Hotels & Resorts’ comprehensive place strategy maximized its global presence and market penetration. Here’s an overview of distribution strategies:

1. Global Presence in Prime Locations: Starwood strategically positioned its properties in major cities, tourist destinations, and business hubs worldwide. This included a strong presence in North America, Europe, Asia, and emerging markets, ensuring visibility and accessibility to a diverse client base.
2. Diverse Property Types for Varied Market Segments: The portfolio included urban hotels, resort destinations, and convention centers. This variety allowed Starwood to cater to different types of travelers, including business executives, leisure tourists, and event organizers.
3. Strategic Partnerships and Alliances: Starwood established partnerships with airlines, car rental companies, and other travel-related services. These alliances enhanced the value proposition to guests and increased the reach of the Starwood Preferred Guest (SPG) program.
4. Integration with Local Communities and Cultures: Each property was designed to reflect the local culture and environment, offering guests an immersive experience. This strategy attracted international travelers seeking authentic experiences and resonated well with local patrons.
5. Leveraging Technology for Distribution and Marketing: Starwood was known for its innovative use of technology in distribution and marketing. The company used a robust online booking system, a solid social media presence, and digital marketing strategies to reach a broad audience and streamline the reservation process.

This place strategy was pivotal in establishing Starwood as a prominent player in the global hospitality market, offering a range of experiences to meet the needs and expectations of various customer segments.

Starwood Hotels and Resorts Promotion Strategy

Starwood Hotels and Resorts has adopted a top-class marketing strategy to maintain its brand value and competitive advantage in the global target market. t offers several incentives as part of its marketing deals. 2010, the company entered a credit card partnership deal with American Express.

It is affiliated with thirty-two airlines, and its preferred guests can redeem flight points via its program SPG Flights. This program has more than 21 million members. Starwood has developed a program titled Yes We Can amongst its employees to encourage its employees to do better. It has also implemented schemes like Gold Point Plussm, Express Yourself, and Sleep Number Bed Program to retain brand loyalty and equity. Its tagline is Who’s taking care of you?

Starwood relies on word-of-mouth publicity from its satisfied customers. It has also taken the help of travel operators so that they can recommend its hotels and resorts to customers. Campaigns are displayed via newspapers, travel magazines, and billboards.

In recent years, social media has become an important advertising tool, and Sherwood has taken steps to utilize it to its maximum advantage. The company’s official website offers meaningful and relevant information to its customers with regular updates. It is also active in social media marketing via YouTube, Instagram, Twitter, and Facebook to create better brand visibility.

Some Recent Video ads and Print ads for Starwood are:

Starwood Hotels and Resorts People Strategy

The “People” element of the Service Marketing Mix model refers to all human actors who play a part in the service delivery and thus influence customer perceptions. This includes not just the company’s employees but also target customers themselves and other customers who might influence the service experience. In Starwood Hotels & Resorts (now part of Marriott International following their merger), focusing on the “People” aspect involves understanding the roles and qualities of the staff and management teams that contribute to delivering service excellence. Here are several key points regarding the “People” element in Starwood’s Service Marketing Mix:

1. Employee Training and Development: Starwood strongly emphasizes comprehensive training programs for its employees to ensure they provide exceptional service. This includes customer service, diversity, and specific job-related training to ensure staff members are well-equipped to meet guests’ needs.
2. Customer Service Excellence: The staff at Starwood Hotels are known for their customer-oriented approach, aiming to provide personalized and memorable experiences for guests. This is achieved through attentive service, anticipating guest needs, and promptly addressing any issues or requests.
3. Empowerment of Employees: Starwood empowers its employees to make decisions that enhance guest satisfaction. This empowerment allows for more personalized service and the ability to resolve issues quickly, leading to a better overall customer experience.
4. Diverse and Inclusive Workforce: Reflecting the global presence of Starwood hotels, the company values a diverse and inclusive workforce. This diversity enriches the guest experience by bringing varied cultural perspectives and languages into the service delivery, making guests worldwide feel welcomed and valued.
5. Employee Satisfaction and Retention: Recognizing the link between employee satisfaction and customer satisfaction, Starwood focuses on creating a positive work environment. This includes offering competitive benefits, fostering a culture of respect and recognition, providing career advancement opportunities, reducing turnover, and ensuring guests interact with experienced and motivated staff.
6. Role of Leadership: The leadership team at Starwood, from hotel managers to executive officers, plays a critical role in shaping the service culture. Leaders are expected to model the service standards and values of the company, driving the importance of customer-centric service throughout the organization.
7. Engagement with Customers: Beyond the interactions at the hotel, Starwood’s staff engage with customers through various channels, including social media, to gather feedback, offer personalized recommendations, and resolve any concerns. This ongoing engagement helps in building long-term relationships with guests.
8. Community Involvement: Employees at Starwood are encouraged to engage with their local communities through volunteerism and corporate social responsibility initiatives. This positively impacts the community and enhances the company’s image among guests who value social and environmental responsibility.
9. Feedback Mechanisms: Starwood employs several feedback mechanisms, including surveys and online reviews, to gather guests’ opinions about their stay. This feedback is crucial for staff training and development purposes, as it helps identify areas for improvement and recognize outstanding service.
10. Safety and Security: The people element also extends to the safety and security staff who ensure guests feel safe during their stay. This aspect has become increasingly important, and Starwood invests in training and technologies to maintain high safety and security standards at its properties.

Starwood Hotels and Resorts Process Strategy

The “Process” element of the Service Marketing Mix refers to the actual procedures, mechanisms, and flow of activities by which services are consumed. It’s about how services are delivered, ensuring efficiency, quality, and customer satisfaction. For Starwood Hotels & Resorts, now part of Marriott International, focusing on “Process” is crucial in maintaining its reputation for excellence in the highly competitive hospitality industry. Here are key points that outline Starwood’s approach to the “Process” element in their Service Marketing Mix:

1. Streamlined Check-in and Check-out: Starwood has implemented efficient processes for check-in and check-out to minimize waiting times and enhance guest convenience. This includes using technology, such as mobile check-in options, to expedite these processes.
2. Reservation System: The company utilizes a sophisticated reservation system that allows guests to quickly book rooms through various channels, including online, via phone, or through mobile apps. This system integrates customer relationship management tools to personalize the booking experience based on guest preferences and history.
3. Customer Feedback Loop: Starwood has established a comprehensive process for collecting, analyzing, and acting upon customer feedback. This includes post-stay surveys, online reviews, and direct feedback during the stay, which are used to improve service and guest satisfaction continuously.
4. Quality Assurance Programs: The company implements strict quality assurance programs to ensure that all aspects of the guest experience meet their high standards. This includes regular inspections, mystery shopper programs, and performance metrics for staff and management.
5. Staff Training and Development: Starwood invests in ongoing training and development programs for its staff to ensure they have the skills and knowledge necessary to provide exceptional service. This includes customer service training, operational training, and leadership development.
6. Service Recovery Processes: Recognizing that issues can arise, Starwood has established transparent service recovery processes to resolve guest complaints and problems quickly and effectively. This involves empowering employees to take immediate action to address concerns and follow up to ensure guest satisfaction.
7. Environmental and Sustainability Processes: Starwood has integrated environmental sustainability into its operational processes, including waste reduction, energy efficiency, and water conservation measures. These practices reduce the environmental impact and appeal to environmentally conscious consumers.
8. Personalized Guest Experiences: The company uses customer data and preferences to personalize guest experiences, from room selection and amenities to personalized greetings and services. This process of personalization enhances guest satisfaction and loyalty.
9. Housekeeping and Maintenance Standards: Starwood maintains rigorous housekeeping and maintenance standards to ensure all facilities are clean, safe, and in excellent condition. Regular audits and staff training support these standards.
10. Safety and Security Protocols: The safety and security of guests and staff are paramount. Starwood has developed comprehensive safety and security protocols, including emergency response procedures, security personnel training, and technology to enhance security measures.
11. Technology Integration: Starwood has embraced technology to streamline operations and enhance the guest experience. This includes using property management systems, mobile apps for guest services, and digital room keys.

Starwood Hotels and Resorts Physical Evidence Strategy

The “Physical Evidence” component of the Service Marketing Mix refers to the environment in which the service is delivered, where the firm and the customer interact, and any tangible commodities that facilitate the performance or communication of the service. For Starwood Hotels & Resorts, which is now part of Marriott International following its merger, physical evidence plays a critical role in shaping guest perceptions and experiences. Here are several key points regarding the “Physical Evidence” aspect of Starwood’s Service Marketing Mix:

1. Hotel Architecture and Design: The design and architecture of Starwood hotels are carefully curated to reflect the brand’s luxury and quality standards. This includes impressive lobbies, well-designed exteriors, and interiors that blend functionality with aesthetic appeal to create a memorable first impression.
2. Room Quality and Amenities: The quality of rooms, including comfort, cleanliness, and in-room amenities (such as beds, bathrooms, technology integration like smart TVs and high-speed internet, minibars, and room service), is a critical aspect of physical evidence. Starwood ensures its rooms meet high standards to satisfy guests’ expectations for comfort and luxury.
3. On-site Facilities: Facilities such as restaurants, bars, fitness centers, spas, swimming pools, and business centers are designed to meet the needs of diverse guests, from business travelers to leisure guests. The quality, accessibility, and presentation of these facilities significantly contribute to the overall guest experience.
4. Signage and Branding: Consistent and clear signage throughout Starwood properties helps guests navigate the facilities easily. Branding elements are subtly integrated into the property design and staff uniforms to reinforce brand identity and ensure a cohesive brand experience.
5. Cleanliness and Maintenance: Maintaining high standards of cleanliness and maintenance throughout the hotel property is crucial. This includes public areas, guest rooms, and amenities, reflecting the brand’s commitment to excellence and attention to detail.
6. Ambiance: The ambiance of Starwood hotels, including lighting, music, scent, and overall atmosphere, is carefully crafted to create a welcoming and pleasant environment. This sensory experience plays a significant role in shaping guests’ perceptions and memories of their stay.
7. Staff Presentation: The appearance and presentation of the staff, including uniforms and personal grooming, serve as physical evidence of the brand’s standards. Professional and well-groomed staff reflect the quality and luxury positioning of Starwood hotels.
8. Marketing Materials: Brochures, websites, and promotional materials that feature high-quality images and detailed information about the hotels and services offer tangible evidence of what guests can expect. These materials must align with the brand’s image and standards.
9. Sustainability Initiatives: Physical evidence of sustainability initiatives, such as the use of eco-friendly materials, recycling bins, and information about conservation efforts, can enhance the brand’s image among environmentally conscious guests.
10. Feedback and Communication Channels: Physical and digital comment cards, guest satisfaction surveys, and interactive platforms for feedback are tangible elements that show the brand’s commitment to guest satisfaction and continuous improvement.
11. Safety and Security Measures: Visible safety and security measures, including surveillance cameras, security personnel, and emergency information, provide guests with a sense of security and trust in the brand.

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