Question

Recommend specific strategies and long-term objectives. Show how much your recommendations will cost. Clearly itemize these costs for each projected year. Compare your recommendations to actual strategies planned by the company. The company is Marriott

Answer 1

Marriott International has estimayed capital expenditure of 2000 crores yearly while the new planned strategies will be all set to cost 2500 crores, 3000 crores, 3500 crores in next 3 gears and ther breakup of cost is as below:

	2019	2020	2021
Employees cost	450 Cr	500 Cr	550 cr
Marketing cost	250 Cr	350 Cr	450 Cr
Operating and Revenue expenditure cost	1600 Cr	1800 Cr	2000Cr
Miscellaneous cost & Overheads	200 Cr	350 Cr	500 Cr
Total	2500 cr	3000 Cr	3500 Cr

The planned strategies each year for growth will be :

1. 10 percent additional bonuses and long term stock options for low turnover rate and bigh retention rate
2. Integrated marketing expenses for 360 degree advertising on Tv, Radio, Mobile, Social Media, Email, Outdoor, Print
3. Higher customer foitfalls through collaboration with Dineout, Eatigo, Zomato Gold and various offers
4. Each year and each quarter additional discount for multiple visitors who are frequent to bring in high customer lifetime value and customer retention
5. Higher service quality and operating expenses on infrastructure and interiors and expansion in multiple cities to penetrate Tier II and IiI Markets.

The initial strategy involved marketing in limited mediums like Social Media and Print. The discount ratesand promotions activity were barley minimum which led to low customers footfalls and secondly market penetration was very low. The employees cost was low as bonuses, increment, appraisals were not given which led to huge churn.