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Marketing report

Executive summary

The aim of this report was to undertake strategic analysis of Grand Hyatt. The hotel chain is spread across four continents and is one of the progressive family run businesses in the world. This report outlined the vision, mission and strategic marketing objective of the hotel chain. This also included demographic description on the target markets and issues or challenges arising from marketing plan. An external environmental analysis was undertaken on areas such as politics and legislations, economy, technology, environmental and socio-cultural issues. Besides, competitor analysis was done to determine the hotel growth and market share while SWOT analysis done to ascertain the resource capabilities of the firm. Marketing mix strategies focused on price, product, distribution and promotion of the hotel chain. Finally, the report presented recommendations for implementation.

Table of Contents

Executive summary 2

1.0 Introduction 4

1.1 Vision 4

1.2 Mission 4

1.3 Strategic marketing objectives 4

1.4 Target markets 4

1.5 Marketing problems and issues 5

1.6 External environmental analysis (PESTLE) 5

References 7

1.0 Introduction

Grand Hyatt hotel chain was established in 1957 by Dehn Hyatt and Crouch Jack. By the time of Hyatt’s death in 1972, the company had spread throughout the United States (Smith, 2014). The hotel is currently providing benchmarking services and industry leadership in hospitality services. The competitive strengths are in building brand preferences and driving revenue, electronic distribution and central reservation system. The company is keen on improving global business through worldwide sales and group business (Jones, 2010). It is also adopting strategic marketing strategies and analytics. It recognizes that in building global brands, it must upscale on its marketing prowess, business information systems and employee empowerment.

1.1 Vision

To become a preferred brand for associates, owners and guests

1.2 Mission

To provide authentic hospitality through creating a difference and touching people’s lives on daily basis.

1.3 Strategic marketing objectives

  1. To develop business information systems to maximize on internal information, market data and marketing intelligence in the next five years

  2. To provide information to all customer segments from leisure guests to corporate-small meetings within three years

  3. To exploit online marketing and social media platforms to reach vast clientele in the next two years

  4. To leverage customer preferences using predictive modeling and quantitative strategic analytics to identify the most profitable customers in the next two years

  5. To increase sales figures up by 20 percent in the next two years

1.4 Target markets

The hotel provides for corporate travelers and leisure guests. Corporate travelers stay midweek and depend on scheduled meetings (Hyatt Inc., 2014). They like accessing facilities such as conference rooms and Wi-Fi. Leisure guests are price sensitive and stay during holidays and weekends. They prefer the casino, sauna bath, health club, pool side dinner and spa.

The hotel targets more than 12 million customers annually using the central reservation systems for its hotels in Germany, UAE, China, Japan, Australia, India, Australia and the United States. The target market is as shown in the table below.


Corporate clients

Leisure guests

25-45 years

35-60 years


Business executives and CEOs

Business owners, retirees

Family status

Married or single

Married or divorced

$100,000-$200,000 per annum



University graduates

University/College educated


Attend meetings and corporate launches. Prefer more private time after meetings. Desire space and environment with conferencing, Wi-Fi and telephone

Likes to have fun and meet new friends. Prefers pool parties and discos with members of the opposite sex. Buys souvenirs and wall paintings. Finds window shopping fun.

1.5 Marketing problems and issues

Monetary pressure and dilution of the brand name is key issues that Hyatt hotels have to overcome in the coming years. With increasing competition from upscale and premium hotels, it is not possible to remain stuck on the traditional target segments. Moreover, the hotel will be compelled to work on price wars and suitability of products and services to new customer segments (Walker, 2012). Major competitors such as Ritz, Claridges, Starwood and Hilton hotels are exploiting business information systems and cooperation with low cost travel and airlines.

Despite having a global sales team, the regional sales offices have not been able to create a wider reach. With dwindling profits in these franchises, the hotel management has been forced sell of the less cost-effective and less profitable hotels. Grand Hyatt targets the luxury market segment (Jones, 2010). This showcases multiple brands in their portfolios which poses a challenge in standardizing or customizing products and services during international expansion. However, the hotel has been attending annual sales call and Hyatt fairs coordinated by sales offices around the world. The objective of such fairs is to allow for face-to-face meetings with potential clients.

1.6 External environmental analysis (PESTLE)

factors: Legislations and laws on booking the booking rates in the United States. For example, the state of Florida enacted laws to address overbooking and non-smoking legislations by setting up a fine of $500 for any guest turned away because the rooms are overbooked (Novack, 2012). Hotel occupancy taxes are high in Chicago and New York city as well as travel costs have been introduced in Minneapolis and Indianapolis at a special 3 percent restaurant and hotel tax. California is contemplating passing state sales taxes and additional 0.5 percent sales tax rise in Sacramento (Novack, 2012).

Economical: United States economy performed well in 2014. It represents about 20 percent of the global output. The GDP per capita was $54,597 in 2014 and an economic growth rate of 2.4 percent (Focus-economics, 2015). The consumption power of US consumers is very high in the world with an annual variation of 2.5 percent. While unemployment rate stands at 6.2 percent, the inflation rate is low at 0.7 percent (Focus-economics, 2015). Goods or ingredients used in hotels such as food and beverages account for 5 percent of total imports.

Socio-cultural: Attitudes of customers towards leisure and health food is changing. People tend to spend on low fat and less cholesterol foods from restaurants. Consumers especially in the United States are becoming reserved to spending on fast food. The country with about 320 million people has literacy rates of 98 percent which higher rates of college education (Praporski, 2008). Many citizens have access to information on various leisure and tourist destination both inside and outside the country.

Technological: United States is one of the countries with higher levels of technology in almost every sector of the economy. Las Vegas leads with Casinos and gambling in the US. The use of Electronic distribution channels has increase booking efficiency, brand experience and marketing effectiveness (Mandelbaum, 2015). Central reservation systems are being used by hotels in the US and are bringing in billions of dollars in revenue. On the other hand, the hotels are maximizing on integrated marketing communications such as email programs, viral marketing and social media.

Environmental: Concerns on the climate change and social responsibility are growing in the US. Laws tackling pollution of water and agricultural areas are being handled at the state level to reduce consumption up the food chain (Hyatt, 2015). Savings on lighting and energy has seen installation of green energy or renewable energy sources such as wind and solar. Leakages of water and sewerage pipes especially from hotels are disastrous to residents living in those areas. Most US residents are conscious of the effects of leaks and uncontrolled dumping to the environment and their health (Jones, 2010). Public health authorities are on high alert to ensure no endemic diseases spread as a result of faulty piping and sewerage. In 2012, Hyatt hotel sought to decrease its waste by 3 percent and waste intensity by 25 percent by 2016 (Walker, 2012). Hyatt Singapore adopted a trigeneration system that converts heat into cooling, heating and electricity hence reducing carbon emissions by 1,200 tons annually.


Focus-economics (2015) US economic outlook.

Hyatt Inc. (2014) Competitive strengths.

Hyatt (2015) Hyatt’s approach to corporate responsibility.

Jones, B.M. (2010) Hyatt hotels: Corporation management overview. Boston University.

Mandelbaum, A. (2015) Hotel technology innovation that will drive business in 2016. October 29, 2015. Hospitalitynet.

Novack, J. (2012) Travelers Alert: The 10 US cities that tax tourist the most. Forbes. October 1, 2012.

Praporski, N. (2008) Customization vs. standardization in global hotel expansion. University of Nevada, Las Vegas.

Smith, M. (2014) About Hyatt hotels corporation. Vault press.

Walker, L. (2012) Hyatt sustainability report: water intensity cut 3 percent. Environmentalleader. June 28, 2012.