Luxury Marketing: Executive Summary Case Study

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The hotel industry is essential to the U.S. and global economies since it contributes billions of dollars to it. Although many lodging facilities were severely affected by the COVID-19 pandemic, they strive to provide exceptional service to their customers. It is particularly critical in serving luxury events and a unique cohort of clients. In this report, the Ritz-Carlton hotel will be selected to host a white-tie dinner for twelve guests to show them the aesthetic of Universal Luxury Creations (ULC). The event will include personal invitations, transportation, a dance show, as well as gourmet dining and beverages.

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Market Overview

The hospitality industry is believed to be one of the business sectors with enormous economic potential. It is thought that the global capitalization of this market will soon reach $12.5 trillion (Su & Chen, 2020, p. 2). The hotel industry, which provides lodging services to visitors, takes a significant share in this, but other sectors like leisure, gambling, restaurants, recreational service, and airlines play an essential role, too (Su & Chen, 2020). Indeed, the market size of hotels worldwide is $1.06 trillion now, which is undoubtedly lower than before the COVID-19 pandemic began, but the numbers are still impressive (Lock, 2022b). Notably, there was a 17% decline in revenue of this industry in 2020 in comparison to 2019 (Davahli et al., 2020, p. 11). The quality of services hotels provide to the customers ranges from limited to high, corresponding to the star ratings, with one being the former and five being the latter (Allied Market Research [AMR], 2022). For the event ordered by the ULC, the North American Ritz Carlton Hotel was selected as a five-star service provider to organize an important event for the invited twelve guests.

Hotel Industry Overview

Hotels can be classified based on price, room capacity, and region. For example, the types include business, resort, boutique, casino, and transit (AMR, 2022). Depending on price, this accommodation service can be luxury, upscale, midscale, and economy (AMR, 2022). The four main regions are described in the hotel industry: North America, Europe, Asia Pacific, and LAMEA (Latin America, Middle East, and Africa) (AMR, 2022). The leading brands include Hilton Hotels and Resorts, Hyatt and Holiday Inn, Marriott International, and Wyndham Hotel Group (Lock, 2022a). Various factors play an essential role in the hotel industry, including workforce, technology, world and local economy, global epidemiologic situation, and people’s travel patterns (Rutherford & O’Fallon, 2021). Moreover, the leaders and managers of the hotel should decide what specific services will be offered to their clients. If it is a luxury hotel, the company may choose to build larger rooms with exclusive design and furniture. This market should consider various sales and human psychology aspects to be prosperous firms.

The lodging sector is known for its particular emphasis on customer relations management because it influences how clients view the hotel and what feedback they give. In fact, the traditions and image that hotels create are vital for the companies that offer luxury services. For instance, such companies as Savoy Group and Ritz-Carlton are known for their special attitude to their guests and lists of priority customers (Rutherford & O’Fallon, 2021). In this report, the Ritz Carlton Hotel, North America, a luxury brand, will be discussed and considered for organizing a white-tie dinner event.

Hotel Industry in the United States

The hospitality industry and especially hotels, occupy a significant portion of the American market since the U.S. is one of the major places for tourists to travel. According to Huang et al. (2020), “in 2017, it supplied around 20% of the U.S. GDP and employed about 30% of the U.S. labor force” (p. 1). Indeed, visitors spend more than $1 trillion annually to travel to the United States, which is equivalent to 10% of the income from the country’s export (Hadi et al., 2020, p. 3). In the U.S., its value reached over $200 billion in 2019 (Lock, 2021). The ongoing pandemic caused a decline in this industry, with millions of jobs and billions of dollars lost in 2020 (Davahli et al., 2020). Still, it seems that companies started to recover from the recession at the beginning of the coronavirus crisis after the introduction of the vaccination and the removal of travel restrictions. Hotel owners in the United States, like lodging service providers worldwide, are mindful of their marketing decisions and actions because their goal is not only to attract more clients but also to retain them.

The Story of Ritz Carlton, North America

The story of this luxury brand in the spere of lodging services started more than a century ago. In the U.S., it was established as Ritz Carlton Investing Company by Albert Keller (The Ritz-Carlton, n.d.b). Although there were several hotel buildings across the country, the only one that was functioning in the 1900s was Boston’s Ritz-Carlton (The Ritz-Carlton, n.d.b). In fact, it was where high standards were established, and services of exceptional quality were developed. From 1983 to 1992, this company expanded from a few to 23 luxury hotels across the U.S., and in 1993 it went to the international market by opening its first resort in Hong Kong (The Ritz-Carlton, n.d.b). Since this firm was successful, it attracted the attention of Marriott International, one of the leading corporations in this industry, which bought Ritz-Carlton in 1998 (The Ritz-Carlton, n.d.b). Since then, hotels and reserves have been opened in Washington, D.C., Colorado, Thailand, and many other places (The Ritz-Carlton, n.d.b). The company continues to grow today by opening its hotels and resorts in cities with the highest number of tourist attractions.

The primary feature that made this company unique and luxurious was its approach to providing customer service. For example, Ritz-Carlton, Boston, was the first to offer individual bathrooms in each room and introduce a unique uniform for its staff (The Ritz-Carlton, n.d.b). Furthermore, it started placing fresh flowers in the hallways, making smaller lobbies, and offering gourmet cuisine to the guests, creating a sense and experience of opulence (The Ritz-Carlton, n.d.b). Overall, Ritz-Carlton hotels are now considered among the most desired destinations for people who value outstanding service.

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The Invitation

Dear guest (the title and full name will placed here),

We would like to invite you to the dinner that will be hosted in Ritz-Carlton, New York, on August 1, 2022. Our organization was hoping you could honor us with your presence and share the excitement of opening a store in New York and enjoy some of our new luxury products. This event would not be possible without your contribution, support, and feedback. Therefore, we are organizing this dinner, where we will announce the store’s official establishment and demonstrate novel items.

The transportation to the event will be provided from the airport or any other location you choose. We will send a silver Lamborghini with one of our best chauffeurs to take you to this event. If you decide to stay at Ritz-Carlton Hotel, a 20% discount will be offered. Our manager will be available 24/7 to answer your questions and concerns regarding the event. We will call you on the afternoon of July 14, 2022, to confirm your participation in this banquet. If this time is not convenient for you, please e-mail us the dates and times when you are available.

With the warmest wishes,
Lincoln Phelps (Please put the real name).
President and CEO, ULC

The Theme of the Event

Since this event is a private dinner for twelve guests who will be shown some of ULC’s luxury products, the preferred theme is classic. Therefore, Ritz-Carlton’s Royal Suite will be chosen and slightly modified. Although this room is elegant in itself, more formality should be added since it is not only a private dinner but also an official event announcing the title of a news organization. The room has neutral coverings, a parquet floor, and one crystal chandelier above the dinner table.

Location of the Event

Since this organization will be primarily based in New York, we decided to organize the event in Ritz-Carlton, New York, Central Park. The dinner will be conducted in the Royal Room of the hotel because it has a relatively large size for the small number of guests. Specifically, the size is 203 square meters and the chandelier height is three meters (The Ritz-Carlton, n.d.a). The room is located on the ninth floor of the hotel’s building.

Colors and Aesthetics of the Event

The color of the table coverings will be dark grey with a silver silk ribbon at the bottom. We will use Pantone color to ensure that materials that will be used for decoration have the desired tones and good quality. The chairs will be white with an eloquent silver design. Each table will have a crystal vase with a bouquet of fresh white roses. Moreover, since the lighting in the room is fully adjustable, we will try to set a medium brightness.

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Scent for the Event

The scent for this dinner will be floral, particularly lavender, but it will be delivered in tiny amounts to avoid irritation or adverse reactions in guests. Indeed, research shows that lavender scent possesses the quality of reducing anxiety and helping people relax (Zhou & Yamanaka, 2018). According to Zhou and Yamanaka (2018), “mental images are usually created by combining olfactory, auditory, and visual inputs so that it can be claimed that there is a relationship between different senses” (p. 127). Furthermore, the stimulation of the olfactory nerve results in the activation of the autonomic nervous system, sympathetic or parasympathetic (Zhou & Yamanaka, 2018). The studies demonstrated that if the smell was unpleasant, it stimulated the former, which is a fight-or-flight response, and conversely, palatable scents caused relaxation through the activation of the latter (Zhou & Yamanaka, 2018). Therefore, to create an even more pleasant experience for the invited visitors to this reception, we will combine the indicated scent with a mixture of calm classic music at a shallow volume.

Transportation for the Event

As the invitation letter indicates, all guests will be provided transportation to the event venue. ULC will offer a silver Lamborghini with a driver to meet each invitee at the airport and take them to Ritz-Carlton, New York, Central Park. For those who live in New York, we offer the same option except for the cases when a guest decides to come in one’s own car. Still, if they ask us to drive them home or hotel, leaving their vehicles, we will definitely provide them with our Lamborghini with a professional chauffeur.

Guest List

Twelve guests will be officially invited to this dinner, and three backups will be selected in case some of them refuse to come for some reason. These individuals are potential investors for ULC, the firm’s featured customers, or prospective brand ambassadors due to their popularity on social media. Since this firm is planned to be officially opened, the dinner for the most important donors is being organized.

  1. Jeff Bezos, one of the richest individuals in the world, potential investor (Ireland, 2021)
  2. Larry Page, listed the sixth wealthiest persons in the world, potential investor (Ireland, 2021)
  3. Bernard Arnault, the third richest man globally, potential investor (Ireland, 2021)
  4. Michael Bloomberg, one of the wealthiest individuals, ULC’s honored customer (Ireland, 2021)
  5. Rob Walton, belongs to the top 20 richest people of the planet, ULC’s frequent customer (Ireland, 2021)
  6. Alice Walton, Rob Walton’s sibling (Ireland, 2021)
  7. Ariana Grande, one the most followed celebrities on Instagram (Rodriguez, 2021)
  8. Leonard Lauder, belongs to the top 50 wealthiest men (Ireland, 2021)
  9. Kendall Jenner, one of the most followed celebrities on Instagram (Rodriguez, 2021)
  10. Kim Kardashian, has over 200 million followers on Instagram (Rodriguez, 2021)
  11. Cristiano Ronaldo, famous soccer player and most followed person on Instagram
  12. Georgina Rodriguez, Cristiano Ronaldo’s wife
  13. Dwayne Johnson, one of the highest paid actors with 225 million Instagram followers (Rodriguez, 2021)
  14. Brad Pitt, may be interested in the brand
  15. Lionel Messi, a famous soccer player, has more than 190 million Instagram followers (Rodriguez, 2021)

Menu Planning

The beverages that will be paired with the food include raspberry juice and a dry martini for appetizers, mojito for the first course, bourbon cocktails for the second course, gin and tonic with the cheese plate, tea with the dessert, and signature cocktails at the end of the dinner.

Signature Cocktails

MartinezPisco Sour
MartinezPisco Sour

Dinner

Shrimp TartletsSnow Pea Holiday WreathChocolate-Covered CheeseFruit and Cheese BoardMeatballsGreek Veggie TartletsCucumber-Staffed Cherry Tomatoes
 Shrimp TartletsSnow Pea Holiday WreathChocolate-Covered CheeseFruit and Cheese BoardMeatballsGreek Veggie TartletsCucumber-Staffed Cherry Tomatoes

The First Course

Creamy Shrimp and Crab Bisque
Creamy Shrimp and Crab Bisque

The Main Course

Ravioli Di Erbette (Vegetarian Option)East Lothian Beef
Ravioli Di ErbetteEast Lothian Beef

Cheese and Beverages

The five sorts of cheese that will be served during this dinner are Pule, Moose, White Stilton Gold cheese, Wyke Farms Cheddar, and Bitto. The selected types are considered the most luxurious cheeses in the world due to the complexity of preparation or unique raw materials (Restaurantware, 2021). Furthermore, the cheese plate will include two types of crackers, with and without salt, meat, nuts, olives, and grapes. Gin and tonic as well as sparkling wine will accompany cheeses.

Cheese and Beverages

Dessert

Chocolate Covered Strawberries
Chocolate Covered Strawberries

Wine/Champagne Pairing

Moscato d’Asti Ceretto
Moscato d’Asti Ceretto

Moscato d’Asti Ceretto Italian sparkling wine will be chosen for this particular event. Its citrus flavors match almost any food; hence, it will be an excellent fit for any course during dinner (Hallowell, 2018). Furthermore, it has a relatively low alcohol content for those who prefer such options.

Entertainment for the Event

Due to budget limitations, inviting a celebrity may not be the best option; hence, the team plans to hire a group of professional dancers. Specifically, we want to cooperate with Scarlet Entertainment, which offers themed performances. For example, the theme is particularly interested in the diamond-themed show. Since this firm has no office in Ohio, the troop will likely be sent from Illinois. The show will be presented at the dinner’s opening, middle, and end.

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Budgeting

Table 1: Budget Breakdown for the Dinner

Service/ProductCost
Renting the venue for two days$40,000
Renting a car (Lamborghini Huracan Evo) for three days$20,000
15 vehicles per three days$300,000
15 drivers per three days$200,000
Printed personal invitations (cards with golden design)$20,000
Dinner prepared by the chef (food products included)$250,000
Beverages$150,000
Scarlet Entertainment’s show$700,000
Decoration of the venue$70,000
Management of the event (contacting guests, meeting, guiding, coordinating)$50,000
Total$1,800,000

Since the total budget for the organization of this event was $1.8 million, the best available options of products and services were considered. For example, the team decided to rent 15 silver Lamborghinis and hire professional chauffeurs for three days to ensure that guests that arrive earlier or leave later are provided with transportation (Table 1). Furthermore, food will be prepared by the best chef in New York, who will need high-quality organic products. The dance show will be presented by a troop of professional performers working for Scarlett Entertainment; thus, the cost is approximately $700,000.

References

Allied Market Research. (2022). . Web.

Davahli, M. R., Karwowski, W., Sonmez, S., & Apostolopoulos, Y. (2020). The hospitality industry in the face of the COVID-19 pandemic: Current topics and research methods. International Journal of Environmental Research and Public Health, 17(20), 1-20.

Hadi, D. M., Irani, F., & Gökmenoğlu, K. K. (2020). . International Journal of Hospitality & Tourism Administration, 1-17. Web.

Hallowell, C. (2018). . Epicurious. Web.

Huang, A., Makridis, C., Baker, M., Medeiros, M., & Guo, Z. (2020). . International Journal of Hospitality Management, 91, 1-9. Web.

Ireland, S. (2021). . CEO World. Web.

Lock, S. (2021). . Statista. Web.

Lock, S. (2022a). . Statista. Web.

Lock, S. (2022b). . Statista. Web.

Mejia, C. (2019). Influencing green technology use behavior in the hospitality industry and the role of the “green champion.” Journal of Hospitality Marketing & Management, 28(5), 538-557.

Restaurantware. (2021). . Web.

Rodriguez, B. (2021). . Marie Claire. Web.

Rutherford, D. G., & O’Fallon, M. J. (2021). Hotel management and operations. John Wiley & Sons, Inc.

Su, C. H. J., & Chen, C. D. (2020). Tourism Management, 81, 1-11. Web.

The Ritz-Carlton. (n.d.a). . Web.

The Ritz-Carlton. (n.d.b). . Web.

Zhou, C., & Yamanaka, T. (2018). . International Journal of Affective Engineering, 17(2), 127-136. Web.

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