Positioning, Repositioning, Reverse Positioning strategies Case Study

Ritz-Carlton: Moving away from Old-World Opulence to Low-Key Elegance

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Abstract:
The Ritz-Carlton Hotel, an independently operated division of the Marriot International has a world-wide reputation of treating its guests royally. For generations, Ritz has been known for its over-the-top luxury services and customer centric culture. But, by the mid-2000s the company realised that this old-world charm is not in tune with today’s jet-setters, since the lifestyle and tastes of urban customers demanded a more relaxed and graceful approach. In the wake of increasing competition, Ritz had begun to realise the importance of an evolutionary makeover in its style, to keep up with the changes in customer in tastes. In 2005, Ritz started undertaking several initiatives like renovating its appearance, replacing its formal dining rooms with trendy restaurants and also making its service standards flexible to reflect a contemporary attitude to suit the tastes and preferences of the modern customers. Ritz feels that all these initiatives would help it remain relevant to the current generation of customers. Analysts, however, feel that by undertaking these initiatives Ritz might run the risk of losing its long time customers.

Pedagogical Objectives:

• To understand the challenges posed by Ritz’s traditional approach to customer service in view of the changing Gen X customers’ preferences
• To comprehend the strategies adopted by the Ritz hotels to tailor its elegance in tune with the expectations of the present generation of guests
• To analyse whether Ritz’s repositioning would succeed in appealing to the customers.

Keywords : Ritz-Carlton, Hotel Industry, Hospitality Indutry, Makeovers, Repositioning, Customisation, Refurbishments, Customer satisfaction, Simon Cooper, Traditional Service, Old-World Opulence, Marketing Strategies Case Study, Traditional Service, Low-Key Elegance, Business Clientale

Contents:

• Trends in the Luxury Hotel Segment
• Ritz: Old-World Opulence