NAVIGATING BRAND PORTFOLIO STRATEGY & BRAND ARCHITECHTURE Team 9 | BBA 28 Pritthi Hironmoy Aurko (16) Mashrif Hasan Adib (29) Mohtasim Bin Habib (72) Hriddha Nabi (107) MARRIOTT-STARWOOD MERGER IMPLICATIONS Q1 HIGHLIGHTS CONCERNS Increased Scale and Market Dominance: Brand dilution: Individual brands may lose their Becoming the world's largest hotel company. distinct identities. Expanded Brand Portfolio: Creating a diverse Market saturation: A risk of cannibalization and and extensive collection of hotel brands. intense competition within the company itself. Cross-Selling Complementary Customer Loyalty and Transition: Customers brand portfolios, with minimal overlap in their from both companies have to navigate through customer base. changes in loyalty programs and brand identities. Synergies: Q1 TACKLING BRAND DILUTION AND MARKET SATURATION BRAND ARCHITECTURE Differentiate each brand within the portfolio according to unique positioning, offering different hotel experiences, amenities, and design elements. PORTFOLIO OPTIMIZATION Identify potential redundancies or overlaps that could contribute to brand dilution and make strategic decisions on brand rationalization or repositioning if necessary. Q1 TACKLING CUSTOMER LOYALTY AND TRANSITION LOYALTY PROGRAM CONSOL IDATION Integrating Marriott Rewards, Starwood Preferred Guest, and Ritz-Carlton Rewards into a unified Marriott Bonvoy loyalty program to create a larger customer base and improved loyalty program benefits. EXPAND INCENTIVES OF THE L OYAL TY PR OGRAM Offering special promotions, additional discounts, or rewards to customers who have been with either Marriott or Starwood during/after the merger. Q2 Brand Architecture LUXURY Price: Very High Location: Prime Brands: Ritz-Carlton, St. Regis, W Hotels PREMIUM Price: Mid to High Location: Tourist spots, Business areas Brands: Sheraton, Westin, Mariott Hotesl SELECT Price: Mid to High range Location: Near Airports, Sub-urbs Brands: Springhill Suites, Aloft Hotels or Element by Marriott *EVERYDAY Price: Affordable Location: Country side, Sub-urbs, Localized Brands: Courtyard, Residence Inn, Fairfield *New Category - Everyday These hotels are available at 500+ locations, making them very affordable and highly accessible for most consumers. Currently, they fall under select. Establish these brands under a separate category to compete with Airbnb. Q2 Brand Portfolio Size Benefits More choices & categories across demographics Scale & growth opportunities across regions Greater overall Brand Equity for Mariott Risks Higher cost of brand management & operations, reducing overall profit Some brands might be neglected Cannibalism due to competition within the portfolio Optimal Siz e 30 brands are a little too much are manage and grow. 15-20 brands, with 35 under each categories should be optimal CRITERIA FOR REMOVING BRANDSPORTFOLIO BRANDS CRITERIA TO REMOVE Similarity: To others in the same category in terms of branding, location, pricing Underperforming: Hotels that are in a downward financial trajectory should be rebranded to more successful ones. One-off Hotels: Hotels like Gaylord which have less than 5 hotels should be removed. Further criteria to consider: - Unfavorable Locations - Weaker Brand Reputation Q3 POTENTIAL REMOVALS Aloft Hotels or Element by Mariott Both are economy hotels Similar level of amenities & TG SpringHill Suites or Residence Inn Both are mid-scale extended-stay hotels TownePlace Suites Similar to Residence Inn, which has a better brand equity and strong consumer base AC Hotels Competitive EU market, should be rebranded to more common Mariott brands Q3 OPTIMAL BRAND PORTFOLIO BRANDS TO KEEP LUXURY PREMIUM JW Marriott The Ritz-Carlton St. Regis W Hotels Renaissance Le Meridian Sheraton Westin SELECT Springhill Suites Aloft Hotels or Element by Marriott Moxy Hotels Criteria to Consider High Brand Reputation High brand equity & loyal customers Old & long legacy Most loved brands by consumers EVERYDAY Courtyard Fairfield Inn Residence Inn Utilization of Corporate Brands Further Recommendations ACQUISITION AND INTEGRATION The acquisition allowed Marriott to expand its brand portfolio significantly. Continue facilitating smooth acquisitions and integrations, ensuring a seamless transition for both customers and hotel owners. Marriott leveraged its corporate brand to assure stakeholders of its commitment to maintaining brand distinctiveness and delivering a consistent guest experience. MARKET SEGMENTATION AND VALUE PROPOSITIONS The consolidation of brands enabled Marriott to segment the market and create customized value propositions. Continue communicating the USP of each brand, ensuring clarity in their positioning. Q4 Utilization of Corporate Brands SOFT BRANDS AND COLLECTIONS Marriott's soft brand collections, such as The Autograph Collection and Tribute Portfolio, rely on the corporate brand to provide credibility and access to the resources Further Recommendations Continue to differentiate soft brand collections carefully, ensuring that each property aligns with the appropriate brand while maintaining its individual brand image. LOYALTY PROGRAM INTEGRATION Marriott recognized the importance of respecting and valuing members of both programs and initially supported both programs separately. Focus on integrating the loyalty programs while preserving the best aspects of each, creating a a rewarding experience for members Q4 THANK YOU. TEAM 09 PRITTHI HIRONMOY AURKO MASHRIF HASAN ADIB Roll: 16 Roll: 29 MOHTASIM BIN HABIB HRIDDHA NABI Roll: 72 Roll: 107 APPENDIX Current Brand Architecture