COURTYARD BY MARRIOTT: CREATING A SOCIAL MEDIA CAMPAIGN FOR UNIQUE HOTEL MODEL (rev9-3-15) Susan Powell Mantel and Jeff Hittler Department of Marketing, Ball State University In 2012, The Arc of Indiana, a statewide advocacy organization for people with disabilities, began a more concerted focus on the monumental unemployment rate among its constituents. Some four years later, its efforts will begin to see a return with the opening of a unique hotel model offering both training and employment in the hospitality, food services, and health care industries to people with disabilities. Through a number of key public/private partnerships, this first-of-its-kind teaching hotel will open in late 2015 as a Courtyard by Marriott and become part of the Horizon Convention Center in downtown Muncie, Indiana. Michelle Laird, director of marketing for property manager General Hotels Corporation, is developing a social media strategy for the new venue, located about 60 miles northeast of downtown Indianapolis. Her challenge is incorporating the hotel’s brand with multiple partners and their goals into a strategy that requires sensitivity in its implementation. Ms. Laird needs to finalize this strategy before the hotel’s opening, with an ongoing campaign to take place thereafter. The task now is to prepare a social media strategy that will generate awareness of all of the distinctive characteristics of the hotel while still maintaining a unified voice for all of the entities. Ms. Laird summed it up this way, “We need to present a unified package while maintaining the individual uniqueness of each part.” BACKGROUND Origins and Partnerships The Arc of Indiana was established as the state association of The Arc in 1956 by parents of children with intellectual and developmental disabilities (I/DD). Its scope and reach expanded over the years through enhanced support and growth, and is now recognized as the voice for people with I/DD and their families in Indiana. In more recent years, the organization has taken on the arduous task of focusing on the 82% national unemployment rate among people with disabilities, thus providing the inspiration for a teaching hotel to provide training and employment in the field of hospitality. The idea for the Muncie location was brought to the attention of board members from a volunteer and former Muncie resident who was familiar with the downtown area and its lack of a hotel since the closing of the Hotel Roberts in 2006, ironically despite the presence of the Horizon Convention Center for almost 20 years. All signs pointed to an opportunity for a host of potential stakeholders. In order to move forward with the project, The Arc of Indiana realized that its structure needed to change. As a 501(c)3 organization, The Arc of Indiana had to comply with the one-third support test under the IRS. In addition, the board of directors wanted to operate the facility as a for-profit corporation, so they established The Arc of Indiana Foundation as a supporting organization and ________________________________________________________________________ Copyright © 2015. No part of this work may be reproduced or used in any form or by any means without the written permission of the Department of Marketing, Miller College of Business, Ball State University, Muncie, Indiana. Arc Innovations as a wholly owned for-profit subsidiary. According to Jill Vaught, director of advancement for The Arc of Indiana Foundation, “We needed to actually own and operate the hotel as a for-profit, tax-paying business entity, so there needed to be some changes in organizational structure [in The Arc of Indiana] given that status.” Thus, The Arc of Indiana Foundation and the Arc Development Group, LLC were created to fund and operate the hotel in order to provide a needed venue in Muncie as well as training and employment opportunities for a wide variety of people. The ultimate project was collaboration between a number of civic, public, and private organizations (see Appendix A) encompassing both the for-profit and not-forprofit sectors to help create the concept for a teaching hotel that would be built on a vacant downtown site and linked via a covered walkway to the nearby Horizon Convention Center. The Muncie Downtown Development Partnership helped to put together a partnership whereby the City of Muncie gave the land to The Arc of Indiana with the only stipulation being to build a hotel on the site. “A lot came together very quickly to bring the idea to reality,” said Ms. Vaught. As result, ongoing direct partners of the project include: • • • • • • • • • • Arc Innovations Erskine Green Training Institute General Hotels Corporation Courtyard by Marriott State of Indiana City of Muncie Muncie-Delaware County Economic Development Alliance Horizon Convention Center IU Health Ball Memorial Hospital Thr3e Wise Men Brewing Company All share the vision for the concept, yet bring their own distinct capabilities and resources to bear on its implementation and goals for success. Arc Innovations: Among the legal and business activities that pulled the concept together was the formation of a for-profit entity, Arc Innovations, which became the owner and franchisee in securing the Courtyard by Marriott brand for the hotel and the hiring of General Hotels Corporation in Indianapolis to manage the property. This relationship matches the typical structure of a franchised hotel. Courtyard by Marriott is the franchisor – providing the overall brand name, corporate identity, and some unified business functions (i.e., national reservation system). General Hotels Corporation is the management company – providing the day-to-day operation of the hotel (i.e., hiring local employees, building relationships with vendors and local community). Arc Innovations is the franchisee – providing the investment and acquiring the profit associated with the operation of the hotel. Erskine Green Training Institute: In order to fulfill the teaching goal and turn the project into a teaching hotel, The Arc of Indiana Foundation created the Erskine Green Training Institute for people with disabilities. The Erskine Green Training Institute will operate a nearly 4,000-squareSocial Media Case Study 2 foot facility with offices, classrooms, and other training-related space on the first floor of the hotel to be used exclusively by the students. Besides the hotel itself, the training institute is the most visible physical presence on the site. The institute’s name is in honor of two familiar Indiana sports figures: Carl Erskine and Steve Green, both of whom have been strong advocates of The Arc of Indiana. Mr. Erskine played professional baseball for the former Brooklyn Dodgers while Mr. Green played college basketball at Indiana University and later enjoyed a professional career with the Utah Stars, the Spirits of St. Louis, and the Indiana Pacers. Eventually, both athletes returned home to Indiana to pursue their business careers and became (along with their families) strong advocates for The Arc of Indiana. Both the Erskine and the Green families had a child born with Down syndrome. It was this tie that led to their involvement with The Arc of Indiana. Through their tireless efforts, both children achieved the education, training, and career success that serves as inspiration to other families facing similar challenges. Their ongoing efforts on behalf of children with disabilities (not only their own children, but those of others as well) has been instrumental in building awareness and support for this important cause; hence, the establishment of the training institute in their names. The Erskine Green Training Institute’s program will begin in January 2016 with an initial class of 20 students. First-year enrollment is being capped at 80, but when in full operation in future years, as many as 200 students from across Indiana could pass through the institute. Courses of 9, 10, and 13 weeks in length in hospitality, food services, and health care will be offered along with internship opportunities. Upon completion of the program, students will return to their home communities and work with an employment provider to find a job in their selected field of study. Classes will be offered a total of 41 weeks out of the year, with students living on-site at the hotel during their program. In addition, some students will have the opportunity to apply for staffing roles on the property in areas such as front desk, hostess, food preparation, and housekeeping. Tuition is $9,000 to $12,000, with scholarships and other financial aid expected to be available as the program grows. General Hotels Corporation: Given that The Arc of Indiana has no experience running a successful hotel, they hired a hotel management firm, General Hotels Corporation, to run the day-to-day operation of the hotel. Jim Dora, Jr., president and chief executive officer of General Hotels Corporation, praised the partnerships in a statement as part of the announcement. “General Hotels Corporation is excited to be working with The Arc of Indiana on such a unique hotel project that benefits so many, including The Arc, individuals with disabilities and the City of Muncie,” he said. “The teaching hotel and training institute is a truly unique opportunity to provide on-the-job service training for individuals with disabilities who can then take that skill back to their community to achieve greater independence for themselves.” Once General Hotels joined the project, its first role was to identify which franchise to select to brand and position the new hotel. General Hotels Corporation is a privately held company headquartered in Indianapolis and they were well suited for this role. The hotel management Social Media Case Study 3 company operates 31 properties across the Midwest in the branded full- and select-service hotel category as well as independent hotels. Among the notable brands it manages are Courtyard by Marriott, Crowne Plaza, Holiday Inn, Holiday Inn Express, SpringHill Suites by Marriott, Homewood Suites by Hilton, and Best Western. By conducting research and interviews across the various national hotel brands, General Hotels and The Arc of Indiana selected Courtyard by Marriott both because the brand fit the needs of the marketplace and because of Marriott’s corporate mission to support persons with disabilities. Courtyard by Marriott: The Courtyard line of Marriott hotels is in the Select Service sector designed for goal-oriented travelers with a focus on upper-moderate tier lodging for business and leisure travelers. The guest rooms provide both relaxation and flexibility to allow guests the space to pursue a wide variety of uses. The amenities associated with the physical properties of the hotel brand, from the varied and multi-functional guest spaces to the décor and other appointments, allow for flexible implementation to take into account the local markets’ needs. Marriott International, a publicly traded company headquartered in Bethesda, MD, has stated core values that match those of ARC of Indiana: “Our core values make us who we are. As we change and grow, the beliefs that are most important to us stay the same – putting people first, pursuing excellence, embracing change, acting with integrity and serving our world. Being part of Marriott International means being part of a proud history and a thriving culture” (Core Values, 2015). State of Indiana: A grant of $5 million was provided by the State of Indiana through the Indiana Economic Development Corporation. The benefits to the state will be a reduction of $5 million in public assistance for every 200 individuals with disabilities that become employed over 4½ years. City of Muncie: In addition to its leadership in the project led by Mayor Dennis Tyler, the city donated the parcel of land as well as vacated a portion of South High Street for construction of the hotel near the Horizon Convention Center. The city also provided the environmental studies for the project, moved utilities, built the parking garage, and is establishing a quiet railroad zone in the downtown area. The total investment by the City of Muncie is over $11 million. Muncie-Delaware County Economic Development Alliance: A consortium of economic development entities dedicated to the growth and prosperity of Muncie-Delaware County, the alliance worked with the city and associated organizations to help bring the project to reality. Horizon Convention Center: The convention center is a 47,000-square foot facility, part of which is the former Federal Building, mixing old and new architectural design. Six new conventions already have committed for 2016 with the availability of the adjacent 150-room hotel, providing secured bookings for both venues. Both the convention center and hotel will continue to collaborate on publicity and fund raising efforts. IU Health Ball Memorial Hospital: Given its history as a teaching hospital, the Indiana University Health Ball Memorial Hospital fully embraced the project’s vision and committed $3 million as well as other resources to the effort. Its partnership with the project allows for the added focus on offering training in specific areas of the health care field, such as supply chain, Social Media Case Study 4 patient transport, dietary, guest relations, and environmental service areas that also will be an option of study in the program with potential internship and employment opportunities. Thr3e Wise Men Brewing Company: Founded by Ball State University alumnus Scott Wise, the parent company (A Pots and Pans Production, LLC) operates several restaurants in Central Indiana, including the original Scotty’s Brewhouse in The Village near the BSU campus and other cities and college towns throughout Indiana. A restaurant and pub in the hotel will feature craft beer and food ranging from a full appetizer menu to both lunch and dinner options specializing in salads, sandwiches, pizzas, and Calzones. The atmosphere is a young-adult friendly pub with good food and entertainment focusing on music and community events. Mr. Wise is a civic-minded businessman who is on the board of directors for the Indiana Restaurant & Lodging Association, which endorses the program’s hospitality and food services study components. HOTEL VENUE Physical Property The $30 million site for the hotel will be branded as the Courtyard Muncie at the Horizon Convention Center. It will be a six-story, 150-guest room facility with the guest rooms occupying the second through sixth floors. As a distinctive feature of the décor, each guest room will contain an original, handcrafted piece of artwork created by an Indiana artist with a disability and sponsored by an individual or organization patron. The entire first floor of the hotel will include the guest lobby, several small retail shops, Thr3e Wise Men Brewing Company, and the Erskine Green Training Institute (see Appendix B). The hotel also will offer a bistro/coffee shop, swimming pool, exercise room, business center, and meeting rooms for up to 40-60 people. In addition to the walkway to the Horizon Convention Center, an adjacent three-story, 400-space parking garage is being built to accommodate hotel guests and other visitors to the downtown area. The Muncie Children’s Museum is situated between the convention center and hotel. Within walking distance of the complex are a number of locally owned shops, eateries, pubs, and coffee shops as well as a mass transit hub to reach other parts of the city, including the Ball State University campus and a heavy retail presence of stores and restaurants on the north side. Construction of the hotel is expected to be completed in October 2015 and following 8-10 weeks of final finishes and staff training, the grand opening will take place in December 2015. The first training class for students will begin in January 2016. When in full operation, the hotel and associated retail offerings on the site will employ approximately 130 people, 20% of which will be individuals with disabilities. Target Markets The target markets for the hotel are consumers and business/organizational customers that may or may not be attending events at the convention center, but nevertheless traveling and in need of overnight lodging with the desired amenities. Courtyard describes its target guests as “Proud Social Media Case Study 5 Accomplishers: This self-reliant guest is purposeful in all aspects of life, valuing recognition for their achievements and smart choices. They seek just the right options to support their ambitious work ethic, and a casually cool vibe to kick back a little” (Courtyard, 2015). Among the consumers will likely be parents and other guests of students at Ball State University. The highest concentration of local hotels are located just north of campus and include such brands as Hampton Inn and Suites, Fairfield Inn, Days Inn, Baymont Inn and Suites, Comfort Inn and Suites, and Holiday Inn Express. These properties tend to sellout for large events such as BSU’s Homecoming Weekend and generally see strong bookings for other sports and entertainment activities in the area that draw overnight guests. SOCIAL MEDIA FOCUS Current Trends By 2019, social media marketing is expected to make up almost one-fourth of organizations’ marketing budgets. The reason is in the numbers. More than 1.4 billion Internet users accessed social media sites in 2012, and with the growing popularity of social networks via mobile devices, usage is anticipated to only increase. While Facebook is the leader among social media networks, other sites have seen rapid growth. Instagram, Twitter, and Snapchat are just a few of the sites that are drawing more users each month in the global market (Leading social networks, 2015). One of the challenges organizations face in developing effective social media strategies is choosing a network that is relevant to their target markets. Even when such a choice is determined, the organization may find that what was relevant one day may not be relevant in six months – or sooner. Another challenge for organizations is the monitoring and management of a social media campaign. Some, particularly smaller organizations, have found it can be a daunting task, often requiring internal resources that either don’t exist or begin stretching existing ones beyond their means. Consequently, entering into a social media campaign requires considerably more research and planning than simply signing up on the most popular sites and waiting for results. In order to be successful in social media marketing today, organizations not only have to be online with the applicable sites, but must continually engage users, monitor audience, create fresh content, and analyze data and competitors. Courtyard Applications The distinctiveness of a teaching hotel and training institute for people with disabilities creates enormous social media opportunities. Of course, with opportunity comes potential risk, particularly when dealing with all the varying elements associated with the project. As Jill Vaught of The Arc of Indiana Foundation pointed out, “while there’s an obvious business aspect to this venture as far as making a profit, it is not more important than the students. They are why we are doing this.” To that end, Ms. Vaught noted that consistent messaging and a focus on the mission in establishing the teaching hotel is paramount, including suitable language in both tone and delivery when discussing the students. “We take a people-first approach to all of our Social Media Case Study 6 communication,” said Ms. Vaught, who will have final sign-off on all communication initiated about the hotel as it relates directly to the Erskine Green Training Institute and its work. Likewise, Michelle Laird of General Hotels Corporation places high importance in how messages are conveyed and responses determined. She noted that General Hotels Corporation is no stranger to social media campaigns for its properties, but admits the intricacies of the project in Muncie make it a bit more challenging. “We want messaging to focus on why people would want to stay at the hotel,” said Ms. Laird. “But it’s much more than just that.” Ms. Laird will be working closely with Ms. Vaught to design and deliver the appropriate messages when communicating about the hotel’s many and varied stakeholders. The two collaborated on the launch of an initial Facebook page for the hotel (https://www.facebook.com/ CourtyardMuncieAtHorizonConventionCenter) in July that highlights the project’s progress and provides an informative overview video about the scope and mission of the venture. Activity on Twitter began around April with postings by General Hotels Corporation and Horizon Convention Center. This pre-opening type of communication can be somewhat limited in focus, but will expand as the project moves closer to completion and into next year when operations both in the hotel and training institute begin regular day-to-day activities. At that time, messages can be much more varied and engaging with audiences. Another component, both online and in actual guest interactions at the hotel, is building an environment of comfort and respect. Ms. Vaught admitted that some aspects of it are still unknown. She said that while some groups representing religious and organizations for individuals with disabilities will be strong advocates, others may be more cautious. “We have to be as transparent as possible about what we’re doing here and why,” said Ms. Vaught. “But we’ll also offer some guidance on etiquette for those that are unsure.” Laura Koenker, general manager for the hotel, said she is not worried about acceptance by guests. “We believe guests will embrace it as we have,” she said. Advance bookings for the hotel have already begun, according to Amy Logan, director of sales. “We have at least six convention center groups already committed in 2016,” she said. MARKETING BUDGET The cost of designing and implementing a social media strategy can vary by organization and its capabilities for doing the work itself or having to outsource it. Those organizations without the internal resources will find outsourcing can come with a hefty price tag. For example, launching a new presence on Twitter and outsourcing all content creation and customer interaction can range from $1,000 to $7,500 per month. Similarly, launching a Facebook page with all content creation and customer interaction being outsourced will be in the $2,500 to $9,000 range per month. Creation of a comprehensive social media strategy with outsourcing of all content creation for a minimum of two channels will range from $3,000 to $20,000 per month (How Much, 2015). For the most part, General Hotels Corporation manages its social media presence in-house. Ms. Laird oversees that function and splits her time on it between the firm’s 31 properties. She indicated the costs generally follow the industry’s standards. According to Vizergy, a basic rule for digital marketing budgets, including all components of Internet and mobile engagement with Social Media Case Study 7 customers, is to allocate the same percentage to digital from overall marketing as the percentage of overall room revenue that originated from digital sources (Lanz, 2014). As with any new product launch that has no sales history, looking at comparable products – in this case Midwest hotels with 150 guest rooms outside of major urban areas – would provide the variables for consideration. The caution is that marketing budgets implementing social media strategies should not be considered open ended, but rather calculated as a percentage of expected return in sales revenue from the specific effort. This makes the effort a measurable objective that can be viewed against other marketing initiatives for overall effectiveness. CHALLENGES GOING FORWARD With sensitivity to the hotel’s students/employees with disabilities as well as hotel guests and the project’s partners, Ms. Laird has the following specific goals to address in developing and implementing a social media strategy: • • • • • • • Increasing brand awareness Encouraging customer engagement Supporting Courtyard by Marriott brand positioning Defining the project’s uniqueness relative to Arc Innovations and the Erskine Green Training Institute for people with disabilities Clearly communicating about the partners and their respective involvement Targeting transient travel (business and leisure) and groups, including corporate, association, and SMERF (social, military, education, religious, and fraternal) Identifying appropriate social channels and establishing channel objectives As Ms. Laird and her colleagues and staff prepare for the hotel’s grand opening, the urgency for a well-planned campaign has become paramount. Social Media Case Study 8 REFERENCES About Us. Horizon Convention Center (2015). Retrieved from http://www.horizonconvention.com/main/about-us/ Core Values & Heritage. About Marriott. Marriott (2015). Retrieved from http://www.marriott.com/culture-and-values/core-values.mi Courtyard by Marriott Development Brochure, U.S. and Canada. Marriott (2015). Retrieved from https://c03ccb602f304983f5866d2431fd9b6a841c5261996358a6ce31.ssl.cf2.rackcdn.com/content/uploads/CourtyardBrochure-Final.pdf How Much Does Social Media Marketing Cost? The Content Factory (2015). Retrieved from http://www.contentfac.com/how-much-does-social-media-marketing-cost/ Koenker, Laura. Phone interview on July 24, 2015. Laird, Michelle. Phone interview on July 24, 2015. Lanz, L., Pete, L., & Bagley, E. S. The Digital Direction: Hotel Marketing Budgets and a Digital 101 for Hotels – Part 1 (February 24, 2014). Hotel Online. Retrieved from http://www.hotelonline.com/press_releases/release/the-digital-direction-hotel-marketing-budgets-and-a-digital101-for-hotels Leading social networks worldwide. Statista (2015). Retrieved from http://www.statista.com/statistics/272014/global-social-networks-ranked-by-number-of-users/ Logan, Amy. Personal interview on June 25, 2015. Logan, Amy. Phone interview on July 24, 2015. Nannen, Leslie. Personal interview on June 25, 2015. Newsroom. General Hotels Corporation (2015). Retrieved from http://genhotels.com/index.php/newsroom The Arc of Indiana (2015). Retrieved from http://www.arcind.org Vaught, Jill. Personal interview on June 25, 2015. Vaught, Jill. Personal interview on July 20, 2015. Social Media Case Study 9 Appendix A Relationship of Public / Private Partnerships The Arc of Indiana The Arc Development Group, LLC The Arc of Indiana Foundation Erskine Green Training Institute -­‐ Courtyard by Marriott (hospitality) -­‐ Thr3e Wise Men Brewing Company (food services) -­‐ IU Health Ball Memorial Hospital (health care) State of Indiana Indiana Economic Development Corp. City of Muncie Muncie Downtown Development Partnership Horizon Convention Center Arc Innovations (hotel owner) -­‐ General Hotels Corporation (hotel operator) -­‐ Marriott (hotel brand) -­‐ Courtyard (Select Service brand of Marriott) -­‐ Thr3e Wise Men Brewing Company (restaurant/pub) Social Media Case Study 10 Appendix B First Floor Map of Courtyard Muncie at Horizon Convention Center Social Media Case Study 11