Marketing Strategy of Starwood

Marketing Strategy of Starwood – Stamford US: The headquarters are located in Stamford, Connecticut a subsidiary of Marriot International since September 2016. Starwood Hotels and Resorts Worldwide LLC at the point was home to more than 1200 properties that employed more than 1,80,000 individuals including 26% of the employees located within the U.S. and was among the biggest hotel companies in the world operating resorts, hotels spas, resorts, residences, as well as vacation properties. 

In November 2015, Marriott International would purchase Starwood Hotels and Resorts for $13.6 Billion to create the largest hotel chain in the world. 

Marketing Strategy of Starwood - US

Segmentation, Targeting, Positioning in the Marketing Strategy of Starwood

Segmented based on offerings like Spa Gym Hygiene Housekeeping and spa services, with the package of services as well as the atmosphere that its brand offers. 

The brand has its sights according to different income levels and employs a distinct strategy that promises its clients a unique experience through its services in 3-star, 4-star, and 5-star hotels and resorts. 

With more than 11 brands, the brand has established itself as a major company by placing a high value on the local community, culture, and customs. 

Starwood Mission

Starwood’s mission is to consistently exceed our guests’ expectations in terms of the products and services we provide to our business and leisure travelers. We strive to create an experience that is responsive to our guests’ needs by using the information you entrust us with responsibly.

Starwood Vision

“To enhance the lives of our customers by creating and enabling unsurpassed vacation and leisure experience.”

Starwood Tagline

“World of Understanding”

Competitive Advantage in the Marketing Strategy of Starwood

The leader in Technology:

The expectations of guests over time have changed from cleanliness, great ambiance and pool facilities, and so on. The guests today want more than these amenities and amenities. Hotels are becoming increasingly dependent on technology to offer the best value to their guests. Generation Y is believed to be the main reason for this trend, in recent times Starwood has invested heavily into Digital Display Advertising in both recruitment and Acquisition. The chart below shows the social followers of Starwood’s brand. 

Digital Marketing as a tool:

Some of their brands are using SEO(Search Engine Marketing – i.e. Google Adwords, Bing Ads, etc). The main Starwood site, the Westin website, and W Hotels’ site all display around 820 Adwords keywords. 

The core of their online plan is the building of links for SEO. This is evident in two points: (1) their brand websites are all hosted located on Starwood’s TLD (Top-Level Domain) which is an excellent way to allow users to visit each brand and assist in the search ranking for the entire brand; (2) they are active in boosting hyperlinks to external sites (both W Hotels and Westin experienced 1.5x to two times growth in external links at the beginning of February, which could be due to an algorithm update, however, even if it’s the case, their SEO team/agency is doing things right). 

Why Hoteliers are Flocking to Technology?

In this highly competitive field, hospitality companies are finding new methods to provide high-tech and ultra-touch services. The primary reason behind this change in the industry and the increase in the use of technology is the millennial generation. This group is important to the industry due to two reasons. One 52% of millennials have a score of “far above or above average” as the first to adopt technology, and in the next decade, they are expected to invest $4.1 trillion per year. 

Starwood Hotels & Resorts – A Pioneer of Hotel Technology

With its unprecedented popularity Due to its unparalleled success, due to its unmatched success, the Starwood Preferred Guest (SPG) loyalty program is very important to the brand since it helps build a solid base of loyal members. 

Starwood is a brand that is focused on personalizing guests’ experiences, which acknowledges and honors guests’ loyalty to the Starwood brand. 

Starwood’s business model is designed to create a unique customer experience and connect with its clients through a variety of touchpoints including group events and guest rooms, food and beverages, as well as wellness and health. The model of business isn’t just successful because of the widespread use of technology but as a result of its operational model. To make use of these guest touchpoints, an operating model that is seamless and seamless, leveraging guest data is required to provide the promise of an unforgettable guest experience. 

Starwood’s operations aren’t just designed to ensure a high standard of service, but they are always changing to meet the ever-changing demands of guests at its 1200 properties, which are spread over 11 brands. 

BCG Matrix in the Marketing strategy of Starwood

  • The Brand Starwood Hotels operates in strategic business areas like Upper Upscale, Luxury, Upscale and Branded Residentially, and General Hotels. 
  • In the category of the upper-upscale, Starwood has a chain of hotels like Westin, Aloftof which Westin serves as an important cash-flow source for the brand. 
  • In the Luxury segment, there are Sheraton, Tribute, St. Regis, and W hotels, of which W hotels feature in the top segment, as well as Sheraton as an investment vehicle. 
  • Four Points comes as a mid-priced hotel for the brand, and eventually becomes a source of income for its brand. 

Distribution strategy in the Marketing strategy of Starwood

Before being purchased by Marriot Starwood Hotels and Resorts owned, managed, and franchised over 1200 properties and employed more than 180,000 employees, of them, 26% worked in the United States. 

The company is mostly operating through franchise-based properties, which is among the most popular methods to work in the industry of hospitality. 


Marketing Strategy of Starwood – US

Brand equity in the Marketing strategy of Starwood

The Global Hospitality company was placed 444 444 in the Fortune 500 magazine and as the world’s top CSR Programme for 2011. 

Starwood manages and owns its properties offering different experiences and loyalty programs, which help the company to grow the number of customers who return to it and increase the value of its brand over time. 

Competitive analysis in the Marketing strategy of Starwood

The hospitality sector is subject to competition from all directions, whether it’s private properties, Hospitality Chains, or new players like Airbnb/OYO who lease properties to travelers for short-term stays. 

Starwood competes with other hotels based on aspects such as technology, brand name service, pricing, excellent accommodation, well-trained and friendly staff, as well as strategic hotel locations. 

Innovative Technologies Make Their Ways into Hotels 

The term “innovation” is born when there is a gap in a product or service. Over time, people have experienced the process of checking in as slow unproductive, inefficient, and redundant. To address this issue Starwood made use of beacons, which are an augmented reality that transmits information via Bluetooth which allows for keyless entry. The brand was introduced in the last quarter of 2014 and Starwood “opened its doors” with keyless entry for its SPG guests who are members of its loyalty program. This new technology allows for the elimination of the check-in at the front desk and a self-directed experience for guests. 

Market analysis in the Marketing strategy of Starwood

With health tourism growing in popularity, and the growth of international business activity, an enormous investment in the sector has been the latest trend across the globe, making this sector among the 10 top international investment destinations. 

Starwood Preferred Guest (SPG) loyalty rewards program offers an advantage to the brand and assists in keeping its customers. This has been the primary reason for the brand’s rise and expansion. The company has announced 132 hotel deals as well as a total of 44 new properties to open in the year 2016. 

Customer analysis in the Marketing strategy of Starwood

Through connections and tie-ups with corporates, Government organizations, tie- with corporations, Government institutions, foreign nationals, and foreigners, and organizing conferences, the customers have been growing with the availability of diverse segments, ranging from middle income to luxury hotels for wealthy and wealthy customers between the ages of 30-60. 

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