Ritz-Carlton & customers
Overall speaking, Ritz-Carlton has а good performance on managing its brand. However, it still has room for improvement on the aspects of future news, mastering briefing and strategy architect. To make Ritz-Carlton stays fresh; three products and services can be introduced. The first is about technology advancement. It can setup the Ultimate Boardroom Solution to businessmen, which provides the function of videoconferencing, bandwidth, ISDN and external network. Besides, the Ritz-Carlton can extend the L. А. D. Y Program to MEN, which includes the products of cologne, cigar, shaver cream and condom.
Also, it can provide different magazines to customers, such as business, sports, automobile, and fashion magazines. The hotel has а global consistent brand image, so it has standardized objectives for advertising campaign are (1) increase brand awareness and (2) have the same positioning theme by communicating the “utmost lifestyle personalization” concept. However, we found that the communication messages are not really sufficient in Hong Kong; advertisements are only published in foreign magazines and seldom existed in the Chinese print media. (Goetzl 2007 1-78) 6. 1 Quality and value
The hotel strives for consistency in quality and value. It positions as а luxury business hotel, and never compromise on price cut to attract more customers. Service is an intangible asset that price is an essential element in determining service perceived value. The high price of the average hotel rate signifies а high level of services to its customers. (Lynch 2006 4-12) To attain higher level of service quality, the hotel developed а “Roadmap” (Appendix11) to business excellence. А major ingredient was involving people in the planning of the work and teaching the PDCA process improvement methodology.
Besides, the hotel has а formal benchmarking, which includes comparative data like comparison to its foremost competitor or benchmarks inside the company. It has pushed the hotel over the years to the higher levels of performance. As а result, Ritz-Carlton has the right balance between quality and value; it also achieves consistency across а variety of first-class products and services. (Johnson 2006 116-41) 6. 2 Team networking Every department of Ritz-Carlton is responsible for contributing to the success of brand.
It has an efficient information flow across the hotel and encourages sharing of valuable experience and knowledge. Ritz-Carlton does not have а variety of product brands and it is unable to make use of umbrella connections. (Lynch 2006 4-12) 6. 3 Brand architect In theory, corporate brand mainly expresses the company’s mission and value, while sub-brand mainly focuses on developing varieties of product brands. Ritz-Carlton wants to be the premier worldwide provider of luxury travel and hospitality products and services, by stressing on corporate brand to express mission and value.
For example, Ritz-Carlton focuses more on its service quality. Under superior and royal image, and the staff in Ritz-Carlton are titled as the ladies and gentlemen, these help carrying out the corporate branding strategy. As Ritz-Carlton’s target segment is the upscale business travellers, which is different from others hotels widely focus on the majority. Therefore, it built up core competences of absolute finest in home-like and personal service, which suit to businessmen needs. This has built its reputation on unmatched quality and sophisticated elegance.
By competing with the hotels like Peninsula and Shangri-la, the Ritz-Carlton enjoys more monopolistic competition in а premium niche market. The customers may be willing to pay for а higher price for home-like service. Ritz-Carlton’s core competences have won the loyalty of countless guests. There is а link between the Ritz-Carlton mission, culture or values with the brand. The hotel provides such finest personal service giving а superior and royal enjoyment for customers and showing customer privilege status. (Lynch 2006 4-12) 6. 4 Drama of leadership Ritz-Carlton has its task of brand management for motivating employees.
First, there is “The Three Steps of Service” combined with “The Basic Empowerment Process”, which aims to promote innovative and quick personal service. For example, the second steps of service are “Anticipation and compliance with guest needs”. So, employees will provide personal service without customer’s request. Also, based on the premise that customer service is the most precious commodity in company today, Ritz-Carlton has extended its service expertise into education. They are the Ritz-Carlton Learning Institute and Leadership Centre, which help motivating and directing staffs to achieve hotel’s goal and brand central ideas easily.
(McGehee 2007 11-24) The Ritz-Carlton can increase its advertising and promotion in Hong Kong. It can promote its facilities to organizations, e. g. use the conference rooms for meeting. It can also provide more new package for its customers, such as special occasion and ultimate evening package. The Ritz-Carlton can find а partnership with big companies; it can ensure а certain amount of company income. Whenever the staffs have business trips, the partner company will choose Ritz-Carlton to accommodate.
Besides, the Ritz-Carlton should adopt the corporate strategy of diversification in other business. The hotel is now in а mature stage and it is time to expand. It can introduce the Ritz-Carlton Clubhouse, which offers recreation facilities, members’ lounge, and fitness centre and golf access. Ritz-Carlton manages its brand successfully. Its products, environment, communication and staff behaviour can support its brand central idea very well. Besides, by using the theory of brand chartering, we found that the overall performance of Ritz-Carlton is good. (Goetzl 2007 1-78)