The Ritz Carlton Hotel Company

1490 words (6 pages) Essay in Marketing

5/12/16 Marketing Reference this

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Introduction

A service is any act of performance that one party can offer another that is essentially intangible and does not result in the ownership of anything, its production may or may not be tied to a physical product.Based on the case study, comfort of their guest is their highest mission. They pledge to provide the finest personal services and facilities for their guest who will always enjoy a warm and relaxed ambience. High quality service has also made the Ritz-Carlton a favourite among conventioneers. “They not only treat us like kings when we hold our top level meetings in their hotel, but we just never get any complaints” comments one convention partner.

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Most of the responsibility for keeping guests satisfied falls to Ritz-Carlton’s customer conduct employees. The hotel takes great care in selecting its personnel. “We want only people who care about people” mentioned the vice president of quality. More than 90 percent of Ritz-Carlton customers return.

Employees are taught to do everything they can to never to lose a guest. Staff learned that anyone who receives a customer complaint owns that complaint until it is resolved. They are trained to drop whatever they are doing to help a customer no matter what they are doing or what their departments are, that’s their policy. Each employee can spend up to 2000$ to redress customer grievance and each is allowed to break from his or her routine for as long as needed to make a guest happy.

Employees learn to use the proper language with guests, to escort guests to another area of the hotel rather than pointing out directions, to answer the phone within three rings and with a smile, and to take pride and care in their personal appearance. Ritz-Carlton’s success is based on a simple philosophy: to take care of customer, you must first take care of those who take care of customers. Satisfied employees deliver high service value which then creates satisfied customers. Satisfied customers in turn create sales and profits for the company.

An excellence service is a strategic concept. Satisfying both employees and customers,also satisfying customers complaints. So a complain resolution lead us to develop guidelines for fairness, to remove complaint barriers and the most important thing is the criteria for hiring and training the employees.

The Ritz Carlton’s quality management and superior customer service allow the hotel properties to achieve superior service no matter what the workforce or culture of a country in which they operate their hotels. “Leaders understand that only through motivated and empowered employees can customers receive superior levels of service, which is important whether a customer is waiting on line, on hold or in person”.

*(http://corporate.ritzcarlton.com/en/About/GoldStandards)

They meet weekly to review product-and service-quality measures, guest satisfaction, market growth and development, organizational indicators, profits, and competitive status. Approximately one-fourth of each executive’s time is devoted to quality-related matters.The Ritz Carlton instituted a set of Gold Standards to set the bar for their success. The Gold standards consist of the key product and service requirements of the travel consumer.

The Employee Promise

At The Ritz-Carlton, our Ladies and Gentlemen are the most important resource in our service commitment to our guests.By applying the principles of trust, honesty, respect, integrity and commitment, we nurture and maximize talent to the benefit of each individual and the company.The Ritz-Carlton fosters a work environment where diversity is valued, quality of life is enhanced, individual aspirations are fulfilled, and The Ritz-Carlton Mystique is strengthened.

Motto

At The Ritz-Carlton Hotel Company, L.L.C., “We are Ladies and Gentlemen serving Ladies and Gentlemen.” This motto exemplifies the anticipatory service provided by all staff members.

conlcusion

In global competition, hotel chains are required to offer not only standardized facilities, but also standardized services. To meet the different needs of customers in each individual country while maintaining the same standards of services, global marketing strategy plays a critical role. Being a leader in upscale hotel chain industry, The Ritz-Carlton Hotel took a unique path.Founded on principles of groundbreaking levels of customer service, and with guest satisfaction being the highest mission, the Ritz-Carlton Hotel Company, is the first and only hotel company to win the desirable Malcolm Baldridge National Quality Award and the only service company to win the award two times, and this is due to their staff.*(http://www.ritzcarlton.com/en/Default)

Globalization refers to the increasing global relationships of culture, people, and economic activity. It is generally used to refer to economic globalization: the global distribution of the production of goods and services, through reduction of barriers to international trade such as tariffs, export fees, and import quotas and the reduction of restrictions on the movement of capital and on investment. Globalization may contribute to economic growth in developed and developing countries through increased specialization and the principle of comparative advantage. The term can also refer to the transnational circulation of ideas, languages, and popular culture.*(http://globe.miis.edu/adaptingbusinessfunctions)

Today’s international marketplace is becoming more globally integrated, yet companies are becoming more aware of national differences, such as language, cultural tastes, legal requirements, and distribution channels. Firms that ignore these differences and over-standardize their products are at risk of cultural blunders and failed ventures. In recent years, there has been a dramatic increase in the number of companies providing localization services, and more companies are establishing globalization/localization units.

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The key process of localization is obtaining information about foreign markets and applying this knowledge to the development of strategy for global competition. Companies leverage information on foreign markets by making adaptations to various business elements, such as product design, marketing communications, or operations. As companies cater to local differences, they must also explore potential global scale or scope economies in order to succeed in today’s competition. To achieve both objectives requires advanced strategies, methods, and technologies.

The concept of localization or adapting to foreign markets plays a role in several business functions, including international marketing, software/content localization, global new product development, global business development, R&D, and human resources.

*(http://corporate.ritzcarlton.com/en/About/OurHistory)

International Promotion Strategy

As with international product decisions an organisation can either adapt or standardise their promotional strategy and message. Advertising messages in countries may well have to be adapted because of language barriers or the current message used in the national market may be offensive to overseas residents.

The use of certain colours may also need to be thought about. In India red is the colour worn by the bride in weddings, white is the colour for mourning in Japan. The level of media development has to also be taken into account. Many organisation go for a strategy of adapting advertising messages to local markets to best meet consumer demand.

In international markets ,we have to take into consideration consumers cultural background, buying habits, levels of personal disposable income etc in order to deliver a tailored marketing mix program to suit their needs. The arguments however for standardisation suggest that if you go through the process of adapting the product to local markets it does little but add to the overall cost of producing the product and weakens the brand on the global scale. In today’s global world, where consumers travel more, watch satellite television, communicate and shop internationally over the internet, the world now is becoming a lot smaller. Because of this there is no need to adapt products to local markets. Brands such as Coca-Cola, MTV, Nike, Levis are all successful global brands where they have a standardised approach to their marketing mix, all these products are targeted at similar groups globally.

Conclusion

In many circumstances a company will have to adapt their product and marketing mix strategy to meet local needs and wants that cannot be changed. Mcdonald is a global player however, their burgers are adapted to local needs. In India where a cow is a sacred animal their burgers are served with chicken or fish. In Mexico burgers come with chilli sauce. Coca-cola is some parts of the world taste sweeter then in others. Yes we can argue that standardisation is better for the organisation because it reduces cost, however many organisations will have to ‘think global, but act local’ if they are to successfully establish them selves in foreign markets.

Referencess

http://corporate.ritzcarlton.com/en/About/OurHistory.htm

http://www.ritzcarlton.com/en/Default.htm

http://globe.miis.edu/adaptingbusinessfunctions.html

http://corporate.ritzcarlton.com/en/About/OurHistory.htm

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