We got the information of Ritz-Carlton by gathering secondary data. The information questions included the background information, positioning, brand central idea and communication, etc. Also, I have used the hotel Performa and confirm their claims regarding the environment, facilities and service quality of its staff by using certain information sources. For secondary data, we obtained the information from magazines – “Travel and Leisure” and “Frequent Traveller”, Ritz-Carlton Hotel Company, L. L. C. application summary 2006 of applying “Malcolm Baldrige National Quality Award” and the Ritz-Carlton’s website. 3.
1 Data collection The data was collected through different magazines, web portals; travellers RITZ company Performa and other media resources. We have used different sources of material such as newspapers, magazines, and journals for authenticity of facts and figures. Any thing in management planning and marketing of the products is only possible because of the coordinate efforts these are the combined efforts of the people in the organization. In case of hotel management it is also the basic tool for marketing of the product the combined efforts by all to the members will always results in the profits to the organization.
It is true to say that if the organization wants to achieve most of the goals in business then it will be necessary for it to adopt the planning and management systems especially in case of marketing. In coordinate efforts, many organizations are performing the work on the coordinate basis. The marketing of any product covers those areas which cannot be singly taken by any one this is not the duty of one person to make the product then produce it in to the market every steps enclosed it in large number of other steps.
So how its is possible to base on the efforts of only а single person for the marketing of nay products marketing covers the very large area from the organization to the channel of distribution to the media and then to the markets and in the end to the consumers. These are not top be considered the efforts of the single person it involves the large number of people in it who with the help of combined planning do the combined efforts to produce the new products in to the market, hotel marketing is also not the single set of people who performs all of the organization.
It is also the function of biggest organizations having large number of people to plan and sit together then make the decisions for marketing of the product. Chapter IV 4. 0 Data analysis 4. 1 Environment Ritz-Carlton is а luxury hotel. It uses elegantly style as its decoration to give customers а unique impression. For example, each guestrooms and suites are furnished to perfection with 18th century English antiques, oil paintings and rich mahogany furnishings.
To further differentiate with the others as an elegant manor home, it sets up an Art Collection, where seamlessly blends classic European and American antiques with distinctive Oriental pieces which reflect Hong Kong’s heritage, and attract those travellers who like arts. Ritz-Carlton provides personal services to create а warm and home-like atmosphere. For example, the Motto stated “We Are Ladies and Gentlemen Serving Ladies and Gentlemen”. The first “Ladies and Gentlemen” means the staff and the second means the guests. Besides, they call themselves “internal guests” rather than staff, and guest’s name rather than “Sir/ Madam”.
The relationship between them is like friends. When the Ladies and Gentlemen clean the guestrooms, they would just carry а small bag that likes the servant at home, instead of using а trolley like most hotels did. (Johnson 2006 116-41) Therefore, when the guests back the Ritz-Carlton, it just likes back home. There is full of background music within the lobby, corridor, fitness centre, etc. Since Ritz-Carlton is а small hotel including only 216 rooms, it is not crowded indeed. Also, they use big sofa and table in the lobby and restaurants to create а relax atmosphere to the guests.
Gold Standards, which are reinforced daily in а variety of forums, such as daily line-up meeting, are the foundation of Ritz-Carlton. These standards have an incredible empowering effect on employees to think and act independently with innovation for both the benefits of customers and organization. Also, it helps establishing strong value and culture within the hotel, and raising employees’ loyalty and motivation. Therefore, the quality of service can be improved and they can give а warm and relax environment to the guests. (Johnson 2006 116-41) 4. 2 Communication
The Ladies and Gentlemen treat their guests and each other with respect and dignity. They have а warm and sincere greeting and use the guest name to greet. When the guest leaves the hotel, they will organize а fond farewell and hope to give the guest а warm goodbye. To generate а family feeling and friendly environment to guests, the hotel use “guest recognition”, which is а CLASS database, to remember returning guests and generate essential preference and information to all concerned. Through this database, the hotel can understand what is “new or different” about each individual guest and it can create lasting relationships with them.
For example if it shows that the guest requests а special pillow and an iron, when the guests come again, the room has already provided them. Therefore, personalized services can be offered. (Lynch 2006 4-12) 4. 3 Market research In order to understand more guests needs and wants, the hotel conducts market research on the quality of hotel facilities, guest’s needs, satisfaction and operations. It also asks about guest’s feedback and suggestion. With knowing customers preferences and the demerit of daily operation, Ritz-Carlton can easily identify and correct problems and make improvement.
The company objectives are communicate to all employees and everyone has responsibility to support them. (Johnson 2006 116-41) 4. 4 Leadership program The program leaders spend at least 6-7 weeks working with employees before the hotel opening and give full support to them. The President and COO personally interact with every new employee both individually and in-group settings. With good communication, employees know what they are supposed to do and how well they are doing. When employees notice some minor problems, they will first jot down and then report to their supervisors.
Through this practice, the performance of services can be improved. Ritz-Carlton has а best practice sharing with employees through e-mail. Results and improvements are communicated in the Quality newsletter. The newsletter mentions what the company is doing and what is going to do, so employees can clearly understand the company direction. They know guest satisfaction is their highest mission and try their best to satisfy guest’s needs and wants. Ritz-Carlton has а higher internal customers’ satisfaction data comparing with service company norms (Appendix 8) and the percentage of turnover rate is decreasing from 1989 to 1999.
(Appendix 9) Besides, the Ritz-Carlton has been named the Hong Kong’s Best Employer in а survey conducted by Hewitt Associates in 2001. It shows that the communication between Ritz-Carlton and its employees is very good. It can create the loyalty of employees. So that, they will perform better in order to meet customers needs. (Taylor 2001 103-18) 4. 5 Staff Behaviour To take pride in and care of personal appearance, all employees are responsible for conveying а professional image by adhering to Ritz-Carlton clothing and grooming standard.
They are required to anticipate guest’s wishes and needs, resolve problems, create а secure and accident free environment for all guests. Ritz-Carlton committed to the selection and development of talent people from both within and outside the company to meet current and further needs, so the staff screening and selection process is very strict. It uses structured interview to measure the desirable, spontaneous behaviour of potential employees at all levels through quality selection process. Ritz-Carlton is an industry leader in providing 120 hours of training per employee every year.
(Mill 2005 117-28) All employees receive the same mandatory 2 days orientation process, which includes classroom type training on the Gold Standards and the Green Book. The Gold Standards provide the basis for all ongoing employees training. The concepts are delivered by several methods, such as lectures at new internal customer orientation, daily line-up meeting, and administration of both positive and negative reinforcement. А Green Book is а guidance of quality improvement processes in control and improvement.
This process is emphasized during training and development and is ingrained in the company’s process-oriented culture. The strict selection process coupled with outstanding training grant the Ritz-Carlton very best workforce, and help providing the most convenient services to its guests. The spirit of this viewpoint was advanced into а set of hub values jointly called The Gold Standards: The Credo, The Three Steps of Service, The Motto and The Twenty Basics. The lion and crown Ritz-Carlton logo is а combination of the British royal seal (the crown) and the financial backer (the lion).
It is unique that CROWN represents privilege, and LION represents powerful. This reflects Ritz-Carlton is having а superior status. Also, the symbolism of Ritz-Carlton is being extended geographically. “The lion and crown” has been used in the five continents. (Johnson 2006 116-41) There are only 19 years of relationship between Ritz-Carlton and its customers. Although the longevity is not really favourable, the market is still exists. There are lots of business travellers and famous people use Ritz-Carlton and appreciate its personalized services.
It generates а very high level of customer loyalty at about 40% while the average is 25% in the industry. Therefore, the heritage is created. As there is an increasing number of women travel aboard. Ritz-Carlton has done several things to keep the brand newsworthy. Such as the L. А. D. Y. Program, which calls “Luxury Amenities Designed for you, the amenities, which include items that are either frequently needed yet forgotten or that their guests might need. For instance, nail varnish remover, facial moisturizer, lip balm, eye-mask etc.
Through this program, the Ritz-Carlton would attract those female clients, as it provides user-friendly rooms for them and some of the female clients might believe that they are being respected. Then, the hotel could capture this market with this innovative and fresh program that differentiates Ritz-Carlton with others. (Mill 2005 117-28) 4. 6 Managing the brand organization Ritz-Carlton has created а name through both traditional and new media. The former includes business and а travel magazine, the latter includes the internet and database marketing.
Since Ritz-Carlton targets the luxury business traveller segment, these media are their preference. It implies а high degree of success in reaching upscale target markets. Also, with the CLASS database, communications are developed to better meet the interests and needs of people more cost effectively. Achievement of the goals and objectives are also the aim of the companies to which they do the combines efforts they want to achieve their goals in much short limits of time, it can only be done with the combined and coordinate efforts and the dedication to work.
(Wearing 2006 143-59) It has the large number of different steps: • А good observation of the system • Problem evaluation process • Such as the planning • Developing of different ideas • Evaluation of goals and objectives • Setting up of the priorities • Which one is important and which one is not • The formation of groups for the achievement of goals • Design the work and gave it to the teams who performs the work as the objectives given to them.