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BCG Matrix

W - SWOT

Weaknesses

Strengths

  • Specialized target market may limit their growth and sales
  • High prices could become a problem as more people become cost-conscious
  • Innovative marketing raises consumer loyalty
  • Environmental policies secure trustworthy reputation
  • Various celebrity endorsements

Industry-leading loyalty program:

Starwood Preferred Guest, or SPG.

Threats

Opportunities

Product Overview

  • International relations in question due to America’s political climate
  • Intellectual property may be unstable due to merger
  • Kimpton’s boutique hotels steadily growing in popularity
  • Fast growth of international market

$100 million invested in W to expand profile

  • Further expansion in China
  • New hotels opening in Mexico and Amsterdam

W Hotels & Resorts, operated under Starwood

  • First launched W brand hotel in 1998.
  • W has expanded through the U.S in the past decade, and are now focusing its expansion on an international level.
  • W Hotels & Resorts currently have 49 hotels, in 32 countries.
  • W is generally marketed toward a younger crowd than some of their other upscale properties.

Company Background

Source: (Euromonitor Int’l Passport, Dr. Wouter Geerts, Feb 16)

Starwood Hotels & Resorts are one of the leading

hotel and leisure companies in the world.

Expanded itself to having over 1,300 properties in 100 countries

under its 11 different subsidiary hotels, resorts, and residences.

Brand Positioning

  • Seniority - first major boutique hotel brand
  • Signature Restaurants & Bars - collaborations w/ celebrity chefs
  • Signature Service - Whatever/Whenever!
  • Spa Service - Bliss Spa owned by Louis Vuitton

Competitors

  • Hyatt’s Andaz - slow growth, financial struggles
  • Marriott’s Edition - failed to meet standards, current lawsuits
  • IHG’s Indigo - luxurious and affordable

Market Segment

Integrated Marketing Communications

Online & Mobile Marketing, Social Media, Public Relations, Personal Selling

  • Boutique or full-service luxury hotels
  • Starwood’s W and Aloft hotels make up approximately 19% of the market share for boutique hotels
  • Looking to target a segment that can afford to stay at the luxury hotels
  • High-end business travelers, dual-income couples without children, and/or young wealthy professionals.
  • W Hotels should target women, ages 25 to 44, with a household income above $100,000 per year.

Key Competitor

Competitive Landscape

The primary competitor would be Kimpton Hotel & Restaurant Group, whose boutique hotels include, Palomar Hotels, and Monaco Hotels.

Within the next 12-18 months Kimpton is looking to acquire many more properties that can be repositioned as Kimpton Hotels. After raising $203 million in early 2013, they aim to acquire more than $500 million worth of hotels in the next few years (Ibis). After recently being acquired by InterContinental Hotels group, their plans are to accelerate the Kimpton Brand domestically and into lucrative global markets (Ibis)

  • Social Media - Instagram, Twitter
  • Blog - Fashion, Design, Music, etc
  • Celebrity Endorsements
  • Creative Collaborations
  • Corporate Collaborations
  • W Insider

Target Profile

Jessica

  • 32 Years old
  • Household income above $100,000 per year
  • She is a foodie and wants a variety on a budget

The Boutique Hotels industry has a low-level of concentration. The top four players account for about 33.0% of the available market share in 2015.(Ibis).

Of this market share, Kimpton Hotel & Restaurant Group has 14.1%, while Starwood Hotels & Resorts Worldwide hold 18.9%, and the remaining 67% are predominantly independently owned (Ibis).

Competition in the Boutique Hotels industry is high and increasing, as although having higher room rates, travelers accept this for the experience.

  • Learns new technology and cannot live without technology or the internet
  • Considers herself a “social connector”
  • Early Adopter

Channel Diagram

Sources

Pricing Strategy

"W Hotels." About W Hotels. N.p., n.d. Web. 25 June 2016. Overview of W Hotels brand..

"Investor Relations Annual Reports." “Environmental Initiatives.” Starwood Hotels & Resorts. N.p., n.d. Web. 28 June 2016.

Alverez, Andrew. "Boutique Hotels in the US." IBIS World. N.p., n.d. Web. Starwood Hotels & Resorts Market Share Info and US Hotel Industry Profile

"Starwood Hotels & Resorts Worldwide Inc." Business Insights Global. N.p., n.d. Web. 26 June 2016. Starwood and W financial reports, market reports, etc...

"The Major Chains - Boutique Hotels in the US July 2011." Mintel Academic. N.p., n.d. Web. 25 June 2016. Information on 2011's best ranked boutique hotels in America.

"W Hotel." Passport. Euromonitor, n.d. Web. 25 June 2016. Company Analysis and brand portfolio. Includes many sets of statistics.

“‘Whatever/Whenever’ Really!” Hospitality Net. N.p., n.d. Web. 03 July 2016. W Hotels new customer service tagline.

Alvarez, Andrew. (2015) Boutique Hotels in the U.S. IBIS world industry report 5464. Retrieved from IBISWorld database.

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W Hotels Worldwide

Starwood Hotels & Resorts

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