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Table of Contents
INTRODUCTION .................................................................................................................................... 3
Marketing audit framework ............................................................................................................ 3
SWOT analysis for Marriott hotel ................................................................................................... 7
Justification of opportunity ............................................................................................................. 9
Cash flow and profit contribution ................................................................................................. 12
Conclusion .......................................................................................................................................... 13
References .......................................................................................................................................... 14
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INTRODUCTION
In the modern era, need for regular improvement in modern techniques and practical
issues in marketing are increasing day by day. For coping up with these issues, managers of
business organizations have come up with different marketing tactics and ideas which can really
help them to face such uncertain problems in a pre-defined ways (Cravens and Piercy, 2008). Firms
are looking for both internal and external environment for understanding what kind of
improvements and strategies are to be made for further welfare.
In the current project, Marriott hotel is the chosen firm that is situated in UK. It is based in
Washington D.C. and its branch is situated in UK which is placed at fourth in the world. Managers
of the firm are intended to grab new opportunities in market for increasing their market share as
well as profitability. Introduction of new product in market of UK is an ideal thing which has blinked
in their minds. This could be a great and outstanding chance to take a new step in such a
competitive market (Newell, 2001). Through SWOT and PESTLE analysis, they can overview their
internal as well as external environment and can make decisions upon resource requirements for
present as well as future time period. Experimenting different financial techniques like revenue
growth forecast and cash flow analysis, they can estimate their budget and carry out the
operations for launching of new product successfully.
Marketing audit framework

Marketing audit is an encompassing, organized, self-directed and oscillating investigation of
company's profile which includes its marketing environment, goals, plans and operations in order
to identify the problematic situations and also, it searches for opportunities and finally
recommending the plans for overcoming and improving performance of the firm (Wilson and
Gilligan, 2012). Marketing audit is processed between two parties where one is office of the firm
and other one is auditor who can research he nature and type of the organization and its
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marketing operations to find out the value of audit. In order to carry out audit of Marriott hotel,
the auditor needs to gather the data about hotel's transactions and it is a fact that excess of time is
spent or taken for collection of data in auditing process.
For the purpose of gathering information about marketing environment of Marriott hotel,
managers are having views to use two types of analysis:
Stakeholders analysis (Internal)
PESTLE analysis (External)
Stakeholder analysis: - Any business organization whether small or large, conducts

stakeholder's analysis as it is very crucial for the success of firm (Belz and Peattie, 2009). The
reason behind this is that for any change in management, stakeholders are influenced and in turn,
they also create a good impact on the firm. Therefore, it becomes necessary for Marriott's
managers to keep a deep sight on their stakeholders whether they are their own customers,
shareholders or may be government.
Reasons for stakeholder analysis:

Stakeholder analysis is done by management for the purpose of identifying their influence
of activities as well as operations of Marriott. Another main reason could be to find out the
way in which they are going to be impacted through plans and policies as well as operations
of the firm.
For ascertaining the consequences of influence on stakeholder, analysis is conducted
(Moutinho, 2011).
In order to meet the needs and requirements of stakeholders, management of Marriott is
required to co-operate with them.
However, the major reason for performing stakeholder's analysis is to obtain internal
information of the firm itself. It is because through all the changes or impacts that are created by
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the stakeholders of Marriott, internal environment of it gets affected. This could be explained by
mentioning different stakeholders individually.
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Employees: - The first and foremost stakeholder of Marriott is its own employees. They act
as their resources and keep employees happy which means firm's operations are healthy.
Meeting out their needs and requirements is very necessary for the organization if
managers want to meet objectives successfully (Lovelock and Wright, 2001). Changing
working environment impacts directly on employees and their working efficiency gets
changed. However, it can be changed either positively or negatively. Here, point of view is
that Marriott's internal environment and its management operations largely depend upon
its own employees. Performance of employees matters up to great extent in order to keep
their customers happy.
Customers: - Another highly influencing stakeholders are customers of Marriott. Their

changing needs and preferences always troublesome the firm. Managers of the cited
enterprise are always keen to get updated with their customer's changing needs (Foxall,
2014). Therefore, continuous feedback from people is crucial and provides good
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information about upcoming opportunities and changes that are required for the company.
Government: - The central part of all stakeholders of each and every firm is the regulatory
authority of economy. Rules and regulations along with laws that are amended by
government are very important to be followed by the managers of Marriott (Grnroos,
2007). Because of frequent changes in composition of regulations, firms have to alter their
operations for meeting the needs and objectives of government. Some major effects can be
seen like firm taxation policies and menu fares for customers. It is very crucial for the firm
to follow rules of government because they cannot act beyond it. If they cross the limits of
regulatory authority, it means that they have to pay for it in the form of charges (Wymer,
Knowles and Gomes, 2006).
Shareholders: - Shareholders are the real owners of firm as they have invested in it for the
purpose of getting profit in return in the form of dividend. Therefore, whether the
conditions are favorable or not, managers of Marriott are compulsory to pay their
shareholders according to the profitability. Shareholders are the key to success and
providing them timely dividend which keeps them interested in the firm and they are likely
to invest more (Reynolds and Olson, 2001). Now, in order to keep shareholders happy,
management of Marriott should make efforts for earning huge profits and then only, they
can pay good amount of dividends. This makes a good impact on firm's internal
environment.
Suppliers: - The process of acquiring raw material is performed with the help of suppliers
only and they play an active role in supporting Marriott hotel. Time to time delivery of
inventories is essential for the managers of firm to carry out operations and fulfill needs
and demands of customers (Leonidou and Leonidou, 2011). On the other hand, it is also the
prior responsibility of managers to pay amounts of suppliers in timely manner. Impact of
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suppliers can be seen in the internal environment of the firm due to lack or deficiency of
raw materials. Any conflicts or misunderstanding with them can lead the firm to
problematic situation. Also, it directly affects the profitability of firm.

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Therefore, from the above explained stakeholders, it can be understood that all such stakeholders
of Marriott Hotel directly and indirectly affects its operations.
PESTLE Analysis
PESTLE analysis is conducted by the firm for obtaining information about its external
environment. There are various components which are included in this analysis (Calantone,
Cavusgil and Zhao, 2002). They are explained below:
Political factors: - Such factors which are not in the control of firm itself and are governed
by some other party are political factors. The political collaboration of UK government plays a
dominant role in influencing the operations and activities of Marriott. On the basis of decisions
that are taken by politicians, Marriott's managers change their plans and procedures.
Economic factors: - There are some sorts of factors such as macro economic and micro
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economic which plays a major role in influencing the policies of Marriott Hotel in UK. Economic
growth is the significant factor that affects the operations and activities of the firm and managers
have to re-think about continuous changing economical situations of UK (Granzin and Painter,
2001). Global and financial crisis are some challenges which Marriott has to face in rare time
period and they have to keep themselves alert for this uncertain contingencies. GBP exchange
rates against currencies of other major economies with inflation rates are some significant factors
that creates a huge impact on the performance of Marriott.
Social factors: - Marriott is one of the most popular terminus for tourists in UK which
indicates that large number of customers or tourists arrives at hotel in everyday life. One thing
here that greatly influences Marriott hotel is the change in customer's lifestyle and their
demographic changes. Another impact can be seen due to changing decision-making process of
customers and continuous increasing population (Zablah, Bellenger and Johnston, 2004). One of
the best example can taken from Asian countries because tourist from such continent visits UK in
large portion and mostly young generation arrives in London and other European countries, so
these tourists play magnificent role as s social factor in Marriott as well as UK.
Technological factors: - Constant development of technological factors in modern era creates major
impact on performance of Marriott and other hotel industries of UK. Some of important matters
that are closely related with technological fields can be energy resources, cost and innovation of
techniques for customer's welfare (Ulaga, 2001). In current time period, use of online websites is
rapidly increasing for booking hotel rooms through social media like Facebook, Tweeter and You
tube which is beneficial for both Marriott s well as customers.
Legal factors: - Changes in UK legal power affect up to great extent in catering industry
Marriott's performance both directly and indirectly. Rules related to immigration and visa
procedures are getting typical day by day and they are creating panic for Marriott in indirect
manner. Not only in UK but in many other European countries with USA and Asian countries, tight
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restrictions are applied for issue of visas and such countries plays huge role in travel and tourism
sector (Christopher and Towill, 2002). On the other hand, various acts such as consumer protection
act and various laws related to employment policies directly affects operations of Marriott.

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Environmental factors: - In the modern era, with continuous growth of tourism industries it is
criticized that catering industries are lot of pollution and which degrades environment. Marriott
and other firms not only creates pollution but also effects adverse impact on animals through
disturbing them.
SWOT analysis for Marriott hotel

Strengths
Products and services of Marriott International are of high brand level (Lemon, Rust and
Zeithaml, 2001).
Management are always keen to make technical innovations as they want to improvement
satisfaction level of customers and simultaneously they are of the view to upgrade their
level of business.
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Marriott has high retention rate of employees as total of 1,50,000 employees have been
employed presently.
The firm has been expanded on a very broad level with 3700 hotels and resorts in more
than 70 countries in the world (Alvarado and Kotzab, 2001). It shows that market share of
Marriott is on global basis.
Brand category of products and services is extremely wide.
Rapid growth in selling department.
Marriott has high potential growth in technological field as managers are intended to
innovate new services for customer's as well as hotel's development.
Excellent customer's services is the most powerful strength which has kept the firm stable
in competitive market.
Partnerships with other business firms and acquisition of small catering industries has
created a strong base for Marriott (Jttner, Christopher and Baker, 2007).
Weaknesses
Widely expanded business has created weakness in operations management and
operations of Marriott because managers are expected to be pitiable in their performance.
Huge debts is one the major issue Marriott is facing due to financial issues. This is pone of
the major problem for every large firm to remain stable in competitive market.
Another weak point of Marriott can be observed technological department or Information

Technology department because managers are not trying innovations for improving
services at all.
Due to high debt, Marriott's managers are facing difficulties in allotting shares also as they
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are not able enough to pay high dividend rates to their shareholders (Ambler and et. al.,
2002).
Staff turnover is one of the biggest issue for Marriott hotel. Because of large number of
employees, employers are not able to concentrate on each and every staff members
individually.
Expanded market share and areas of operations has become a major issue itself which are
resulting in declining rate of profit margins. Managers of the cited firm must severe steps
to improve management efficiency which can handle or tackle with minor issues and later
helps to increase profitability of Marriott
As it US based firm, scenario of 2005 states that out 2741 hotels in US, they were able to
operate just 2349 of them which created panic in the minds managers and still they are
trying to develop their operations (Gummesson, 2002).
Apart from UK market, less income form other geographical areas has become a major
weak point of Marriott International. For example, there is very little scope of Marriott in
Asian countries.
Due to its high expansion in global market, dilution of brand is one of the weak point for
Marriott and simultaneously competition from other long chain hotels is weakening power
of the cited firm.
Opportunities
Marriott has high potentiality in growing markets (Lambert, GarcaDastugue and Croxton,
2005). It shows, specific measures should be undertaken by management to reach every
corner of the world as early as possible to resist other competitors.
Innovation of new products and services is a golden opportunity for Marriott to impress its
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customers and retain position in market. Not only in aspect of products and services but
better renovation in interiors and decoration can also be a good technique to grab more
and more opportunities.

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Entertainment events like event management and marriage functions or parties sum up
good number of customers for Marriott (Sultan and Mooraj, 2001).
Merging with other firms or acquiring small firms like catering industries can be so helpful
in expanding growth of the cited firm and definitely it provides opportunity for creating
achieving more profitability.
Enhancement is services by employees or staff members is fantastic opportunity to grab

customer's loyalty.
Effective and efficient planning by managers of Marriott is required to earn those assets
which provides or generate huge revenue for the firm.
Providing moderate or low budgeting hotel such as 3 Star Marriott International for middle
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income visitors demanding luxurious services at moderate prices can be a very good
opportunity for the cited firm to offer something new to customers (Manthou and
Vlachopoulou, 2001).
Threats
Risks or uncertain government or political issues for Marriott and its management officials
is a big threat.
High substitution rate of hotels for customer in every part of the world is also one of the
major threat for Marriott to retain its position in market.
High fluctuation in prices of other hotels due to increasing competition enforces Marriott
to look after its plans and pricing policies regularly .
Factors related to housing sectors is a leading threat for Marriott.
Fear of stagnated growth in Asian and Australian countries is increasing day by day (Ulaga
and Chacour, 2001).
From the above discussion, it has been clear that Marriott International has numerous
strengths, weaknesses, opportunities and threats but one of the fruitful outcome is that in order to
maintain its position in catering industries in the world, managers have great opportunity to open
a moderate level branch. It is because visitors having luxury demands can get satisfied with low
budget prices also.
Justification of opportunity
One of the greatest opportunity Marriott International can ever have is introducing a low
budget branch with having lower prices with same standards of services (Campbell, 2003). This
experiment can be very beneficial for providing profit for long term objective of three to five years.
Although, firm is not performing good in international boundaries at this time accepting this
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opportunity is very crucial.
Market Attractiveness
Opening a low budget branch named as 3 Star Marriott International for moderate level
visitors can attract them for enjoying luxurious services at low prices. In quick succession, Marriott
can build huge profitability through increased number of visitors. Competitors can also be
threatened through this act of Marriott and can lose their confidence. Taking undue advantage of
competitor's low morale Marriott can win their customers over longer time period of minimum 3
to 4 years (Hult, Hurley and Knight, 2004). Customers from Asia and Australia and other European
countries are eager to receive such kind of luxurious services at very moderate rate because they
need to feel like kings after grabbing opportunities like this. High ended advertisements and
efficient technological use can aid Marriott to gain new customers through which its market share
can easily be increased.
Market Segmentation and Targeting

After deciding grabbing of new opportunity, Marriott International's managers next step
should be to conduct a market research and segment those customers who are most likely to enjoy
their new low budgeted hotel (Friesner, 2014). This can be an easy way to understand in which
areas should managers of Marriott introduced or establish their new 3 Star hotel because after
segmenting only, customers can be targeted. Approaching and targeting most beneficial sectors
can provide huge benefit to Marriott and result in rapid growth and development of market share.
Efficient research on customer's needs and preferences, habits, taste, income level, educational
status and economical conditions are very useful factors in segmenting them and targeting their
branch in those areas (Kotler, Gregor and Rodgers, 2015). In order to remain profitable for long
run of 3 to 5 years, it is must for Marriott to take this step and offer a lower budget hotel to their
customers.
Impactful Brand Proposition

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Brand proposition is the key to set Marriott apart from other catering industries in UK
market. Such proposition helps to embody brand images and shows unique features of services. It
is very valuable thing that sets apart brand of Marriott from other competitors and creates a
qualitative faith in minds of costumers that cannot be easily removed from their minds (KOTLER
and KELLER, 2012). The main aim of proposition of brand is to create lifetime image of products or
services in customer's mind say for minimum 3 to 4 years. There are three elements of brand
proposition:

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Value Proposition: - This element connects customer's with benefits provided by Marriott
through opening new low budgeted hotel. Value proposition is just like a commitment that
firm's managers gives their customers that they are definitely going to receive such
advantages from their hotel.
Brand Proposition: - Brand proposition refers to firm's way of expressing benefits of their
new low budget hotel to customers in such a way that fits into the mind of customer and
make them feel that they really needed such kind of services from the cited firm (Ulaga and
Chacour, 2001). This process represents all those benefits when customers think about new
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branch.
Brand Image: - It is an expression that is created into customer's mind by the way of its
name, logo, trademark, symbol and overall looks of new product or hotel. In nutshell, a
brand image is what customers feel or observe towards a new product or thing.
Marketing mix plan

In order to build customer's loyalty for next three to five years, managers of Marriott needs
to make effective planning regarding its marketing mix that gives valuable benefits to managers. He
key purposes for making plan for achieving customer's loyalty is to compete in competitive market
as well as identifying regular changing needs and requirements of customers (Gummesson, 2002).
And the final aim should be to grab maximum profit after providing relevant services. The
marketing mix plan includes four major thins:
Right product: - In the current scenario, new low budget hotel is the key for Marriott to
provide something new to their customers and in return managers are keen to increases
huge revenue from that. The plan should be so accurate that exactly meets the
requirements of customers.
Appropriate price: - The main reason behind opening new branch 3 Star Marriott
International is to offers same services at reasonable prices therefore managers of Marriott
must have to compromise with such low level charges in order to gain large customers.
Right place: - This stage indicates towards perfect segmentation and targeting of
customers where Marriott can find best amount of benefit (Ambler and et. al., 2002).
Providing facilities in areas where customers needs it most can prove highly advantageous
for the cited firm.
Most suitable techniques or methods of promotion: - The last stage of marketing mix is
related with promotional activities of adopted for informing customers about innovation of
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new lower budget hotel for them. Using high level of technology such as social media
which includes Facebook and Tweeter can promote 3 Star Marriott in significant manner.
Marketing resource requirements

For marketing new low budget hotel 3 Star Marriott International, managers of the firm
requires different types of resources such as:
Marketing resources who can market their new product through advertisements and
promotional activities (Friesner, 2014). Lot of methods are required to be adopted for
increasing brand awareness and popularity of hotel.
Financial resources which provide fund for developing new hotels in different geographical
sectors. Through sufficient funds only management can develop new hotels.
Human resource management is required to manage new plant in efficient manner.

Recruitment and selection of employees is very essential for employing in new areas.
Cash flow and profit contribution

Income statement for 3 Star Marriott International
Fiscal Years (In Million pounds)
Year 1 Year 2 Year 3
(in '000) (in '000) (in '000)
Sales 250000 450000 625000
Variable cost
Direct cost of sales 125000 225000 312500
Sales commissions 25000 45000 62500
Total variable cost 150000 270000 375000
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Contribution 100000 180000 250000
Fixed cost
Administration
expenses 100000 100000 100000
Depriciation 25000 25000 25000
Total fixed cost 125000 125000 125000
Total cost 275000 395000 500000
Profit -25000 55000 125000
Break even point by considering above calculation

(in '000) (in '000) (in '000)
No. of units 1000 1800 2500

Contribution per unit 100 100 100
Total fixed cost 125000 125000 125000
Break even point 1250 1250 1250
By considering this income statement contribution of innovative strategies can be noticed

in cash flow and profits of the company. To attain no profit no loss situation. Marriott International
is required to serve at least customer's computed through break even point. In first year Marriott
International is not able to recover the cost but in following years they are able to generate
appropriate profits.
Cash flow statement for 3 Star Marriott International
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opening balance of cash 0 -30000 50000
Cash received
Cash receipts from customers 250000 450000 625000
Total cash received 250000 420000 675000
Cash paid
Direct cost of sales 125000 225000 312500
Sales commissions 25000 45000 62500
Administration expenses 100000 100000 100000
Capital cost 30000 0 0
Total payments 280000 370000 475000
Closing cash balance -30000 50000 200000
Similar trend can be noticed in the statement of cash flow of organization. In starting year
they have to deficiency due to initial investment but these deficits are covered by revenue earned
in 2nd and 3rd year.
CONCLUSION
From the above project, it has been concluded that marketing management is a very wide
concept which requires managers of business organizations to perform numerous activities.
Marriott International hotel managers are intended to organize a plan for building a new lower
budget hotel for their moderate level customer who can exercise same services at reduced prices.
They were in utter need to develop their firm in order to increase market share as well as
profitability. In global market, firm was not providing well enough so launching a new lower budget
hotel can prove handy for Marriott International.
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REFERENCES
Books
Belz, F. M. and Peattie, K., 2009. Sustainability marketing: A global perspective. Chichester: Wiley.
Cravens, D. and Piercy, N. F., 2008. Strategic marketing. McGraw-Hill Irwin.
Foxall, G., 2014. Strategic Marketing Management (RLE Marketing). Routledge.
Grnroos, C., 2007. Service management and marketing: customer management in service
competition. John Wiley & Sons.
Lovelock, C. and Wright, L., 2001. Principles of service marketing and management. Prentice Hall.
Moutinho, L., 2011. Strategic management in tourism. CABI.
Newell, F., 2001. Loyalty. com: Customer relationship management in the new era of Internet
marketing. McGraw-Hill, Inc..
Reynolds, T. J. and Olson, J. C., 2001. Understanding consumer decision making: the means-end
approach to marketing and advertising strategy. Psychology Press.
Wilson, R. M. and Gilligan, C., 2012. Strategic marketing management. Routledge.
Wymer, W., Knowles, P. and Gomes, R., 2006. Nonprofit marketing: Marketing management for
charitable and nongovernmental organizations. Sage Publications.
Journals
Alvarado, U. Y. and Kotzab, H., 2001. Supply chain management: the integration of logistics in
marketing. Industrial marketing management. 30(2). pp.183-198.
Ambler, T. and et. al., 2002. Relating brandand customer perspectives on marketing management.
Journal of Service Research. 5(1). pp.13-25.
Calantone, R. J., Cavusgil, S. T. and Zhao, Y., 2002. Learning orientation, firm innovation capability,
and firm performance. Industrial marketing management. 31(6). pp.515-524.
Campbell, A. J., 2003. Creating customer knowledge competence: managing customer relationship
management programs strategically. Industrial marketing management. 32(5). pp.375-383.
Christopher, M. and Towill, D. R., 2002. Developing market specific supply chain strategies. The
International Journal of Logistics Management. 13(1). pp.1-14.
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Granzin, K. L. and Painter, J. J., 2001. Motivational influences on Buy Domestic purchasing:
Marketing management implications from a study of two nations. Journal of International
Marketing. 9(2). pp.73-96.
Gummesson, E., 2002. Relationship marketing in the new economy. Journal of Relationship
Marketing. 1(1). pp.37-57.
Hult, G. T. M., Hurley, R. F. and Knight, G. A., 2004. Innovativeness: Its antecedents and impact on
business performance. Industrial marketing management. 33(5). pp.429-438.
Jttner, U., Christopher, M. and Baker, S., 2007. Demand chain management-integrating marketing
and supply chain management. Industrial marketing management. 36(3). pp.377-392.
Lambert, D. M., GarcaDastugue, S. J. and Croxton, K. L., 2005. An evaluation of processoriented

supply chain management frameworks. Journal of business Logistics. 26(1). pp.25-51.
Lemon, K. N., Rust, R. T. and Zeithaml, V. A., 2001. What drives customer equity?. Marketing
Management. 10(1). pp.20-25.
Leonidou, C. N. and Leonidou, L. C., 2011. Research into environmental marketing/management: a

bibliographic analysis. European Journal of Marketing. 45(1/2). pp.68-103.
Manthou, V. and Vlachopoulou, M., 2001. Bar-code technology for inventory and marketing
management systems: A model for its development and implementation. International
Journal of Production Economics. 71(1). pp.157-164.
Sultan, F. and Mooraj, H. A., 2001. Designing a trust-based e-business strategy. Marketing
Ulaga, W. and Chacour, S., 2001. Measuring customer-perceived value in business markets: A
prerequisite for marketing strategy development and implementation. Industrial Marketing
Ulaga, W., 2001. Customer value in business markets: an agenda for inquiry. Industrial Marketing
Zablah, A. R., Bellenger, D. N. and Johnston, W. J., 2004. An evaluation of divergent perspectives on
customer relationship management: Towards a common understanding of an emerging
phenomenon. Industrial marketing management. 33(6). pp.475-489.
Online
Friesner, T., 2014. Marketing Audit. [Online]. Avail;able through:

th
<http://www.marketingteacher.com/marketing-audit/>. [Accessed on 25 March 2015].
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A Sample on

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Marketing audit framework

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Stakeholders analysis (Internal)

PESTLE analysis (External)

Stakeholder analysis: - Any business organization whether small or large, conducts

Reasons for stakeholder analysis: