Ritz-Carlton’s Corporate Marketing Strategy in China

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Abstract

This research is mainly focused on the CSR issues of marketing, which is currently one of the biggest issues of MNC in their marketing efforts. Precisely, the paper addresses on the marketing strategies of Ritz-Carlton, which reflects the uses of CSR in marketing. Chinese market is used for the research, where Ritz-Carlton has six operations. CSR is a recent phenomenon in China, and the environmentalists and other organisations of both China and the outer world is closely observing its practice in MNC as well as in other Chinese companies. Where CSR is a strategic practice executed by the strategic unit of the organisations, currently organisations use it in the marketing to increase their revenues. Ritz-Carlton hotel also uses the concept of CSR in marketing of the company, which substantially increases its customers. CSR is an effort of the company to contribute to the society through direct contribution of producing products and services in a way that does not harm the environment and society. Similar principles are followed in the marketing where the efforts are not against the environment and society.

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Introduction

CSR is not a very old trend in the world and the practice of CSR in China is not well established. Currently the Chinese people and community realize the importance of CSR and raise their voice against the extensive profit motive of the company by compromising the welfare of society and environment. This issue is much more relevant to the tourism industry where violation of social and religious rules is common. Currently, the aggressive marketing activates of various MNC including the hotels are frequently opposed to the CSR of the business. The issues of ethics are humiliating in most of the aspects of operation of the organisation. CSR generally implies doing business in a way so that it does not harm the environment, shows honour to the society and person as a member of the society (Lynn, 2009). On the other hand, CSR in marketing strategy refers to doing marketing efforts in way so that it brings benefits for the customers, community, environments, and employees of the organisation. As a part of CSR in marketing, company may use 4P such as price, promotion, product, and place in an environment-friendly way so that it directly contributes to environmental sustainability (Parsons & Maclaran, 2009).

In China, various MNCs are operating to achieve competitive edge on the low labour cost, low price of land and low regulation of environment etc. However, currently the citizens of China and various organisations of local and international community have shown concern about the CSR in China. The focus is on corporate Sustainability that includes the CSR, stakeholder focus, corporate governance, and corporate accountability etc. Within those, corporate social responsibility is important as it covers both internal and external issues of responsibility towards the society and environment. Environment plays a great role in CSR because currently global warming, carbon omission, and greenhouse affect is very alarming news for the community.

The marketing effort of the company should focus on the welfare of the customer, address on environmental sustainability, consumerism, innovation, employee rights etc. that are the more relevant issues of CSR in marketing. The advertisement plays a great role in CSR, as because the information and style of presentation may against the public interest, and focus on merely profit making are harmful to the society and to the competitors as well.

The Ritz-Carlton hotel is one of the most luxurious hotels in China, which has a great influence on the community of China. This hotel recruit a huge number of employees in China most of which come from the same country. Ritz-Carlton performs CSR in China beside its common business and in the marketing efforts, the company introduces CSR concept. The CSR efforts of the hotel in marketing strategy fall into two categories that include the CSR in Internal strategy and CSR in External strategy. This internal strategy includes recruiting employees from locality and train them well to perform better. Beside this recruitment and training, Ritz-Carlton empowers and awards those employees who contribute to the business and CSR.

These employees developed in a way so that they can perform to manage CSR externally. The external CSR includes the community development, environmental welfare, more job opportunity, economic development etc. When making the marketing initiative employees invite the customer and provide service which best suited with the broad CSR concept of the hotel. Their advertisement efforts make to invite the customer, which comply with the best interest of the customers. The hotel authority starts green marketing that offers the touch of green in every aspect of operation of it. This green marketing includes offering customer green food, organic food, use recycled product and garden environment. All of these marketing efforts attract the guest and they are willing stay in the hotel. In spite of this success, Ritz-Carlton has still challenge and opportunity to develop more CSR initiatives.

Aim

To examine the internal and external social responsibilities that high- scale hospitality Industry should adopt for successful marketing strategy: The case of Ritz-Carlton Hotels

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Objectives

  1. To explore Ritz-Carlton Hotels socially responsible marketing strategy perspective
  2. To examine the reciprocity of internal versus external social responsibilities in the context of Ritz-Carlton
  3. To identify the challenges and opportunities in taking social responsibilities in marketing strategy as identified in Ritz-Carlton

Literature Review And Discussion

Corporate responsibility is a current issue in modern business which getting focuses from the decades of nineties. From its recognition to the current time, it is a most discussed issues in the business as how business shows responsibility to the various stakeholders in terms of ethics, society, environment etc. beside its business motives. The corporate responsibility of a business addresses mainly two issues that include corporate sustainability and corporate governance –

Corporate Sustainability

Corporate sustainability is a paradigm that replaces the traditional profit maximisation model based on the assumption that company will make profit for sustaining but it also gives concentration on issues like environmental safety, social justices, economic development of the country etc. The corporate sustainability model based on four theories of the literature, which are as follows:

Sustainable development

Sustainable development is a broader term that implies the business growth through the economic growth as well as interacts with the environment protection and social equity. It is the development effort address to the current economic development without making any compromise with the ability to meeting the need of the future generation.

The evolution of corporate sustainability.
Figure: The evolution of corporate sustainability. Sources: Wilson (2003), Corporate Sustainability.

Corporate Social Responsibility

Like sustainable development, Corporate Social Responsibility (CSR) is also a broader term that implies a corporate manager should consider the issues like ethic, social welfare beside the main motive of gaining profit for the shareholders (Yang, 2008). The debating matter is that a corporate manger should consider needs of society with its regular business motives but to what extend. There are four theory emerges over time which try to depict the responsibility of the corporate managers on the society (Savage & Brennan, 2009). These theories are Social Contact Theory, Social Justice Theory, Right Theory, and Deontological Theory.

Stakeholder Theory

Stakeholders are those who influence the business and prejudiced by the business of an organisation and it involves all the parties related to an organisation. The main theme of stakeholder theory is that if the relationship with the stakeholder is strong then it is easier to achieve the corporate objectives of an organisation. On the other hand, if the relationship with the stakeholders is unfastened then it is quite hard for the organisation to achieve its corporate objectives. Stakeholder theory is most concurrent issues than the CSR and it directly linked with the corporate management of an organisation. Through developing strong relationship with the stakeholder of the business, an organisation can build a competitive advantage through it. The challenge of organisation is to identify the stakeholder of the business. Currently, beside the investor/shareholder, supplier, customer, employee, social agents are also considering as stakeholder of the business (Chan & Wang, 2003). The goals or objectives of different stakeholders are different but working on establishing social justice, economic development and environmental protection are common goal of most of stakeholder. Organisation working on these objectives, will able to strengthen the relationship with the stakeholder and in turns is able to achieve the corporate goals.

Corporate Accountability Theory

Accountability refers to ones duty explains or reports his or her action for which the person is responsible. Corporate accountability refers to the accountability of the management to the shareholders of the business as the shareholders are principle of the organisation and the management serves as an agent of the shareholders.

Corporate Governance

Corporate governance refers to system or direction through which a company or organisation operates and controlled. It is much broader terms which involves maintaining and controlling the organisation in a so that all parties are equally benefited. From the various researches, it is found that corporate governance is mostly related to the financial activities of the firm and to exercise the corporate governance, sound political and economical condition must exist.

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CSR in Marketing

CSR in marketing is different from the concept of CSR but it closely links with the general concept with the CSR. In general, CSR has seen as a main function of strategic management of an organisation. Currently, extensive marketing activities of various local and international organisations have given raise to the question of corporate responsibility of these marketing activities where some marketing efforts really go against the interest of the individual and society (Kotler & Armstrong, 2008). Some major criticisms against the marketing efforts of the organisation are as follows:

Negative affects on consumer

Many customers believe that the marketing activities of the big organisation negatively affect the interest of the consumers. This negative affects trigger on the high cost of distribution, advertisement and promotion, voluntary deception, detrimental product and services, voluntary obsolesce and finally supply low quality product with high price to the disadvantaged consumers (Kotler & Keller, 2006). The high length distribution channel including the presence of excessive intermediaries make the product or service cost high. Most of the multination company currently spends approximately 40% of product, service price on the advertisement and promotion that are unnecessary in some extends, and some of the advertisement efforts consumer thinks as misrepresentation of the proper information. Sometime marketer create deception through making customer believes that they are getting more value than what are actually they receive (Kotler, Makens & Bowen, 2006).

Negative affects on Society

Marketing gives stress on the physical property possess by the person rather on the person’s own characteristics that is stress on what the person own that who is the person. Marketers created imaginary demand that is actually not present, and force people to work more to increase the buying power, which in turns creates those demands. Currently marketer concentrates on the crating private services rather on social services that increase the social cost. As an example, if the food services increase privately the government required to permit most import, which creates the negative trade balance with the other countries. The advertising uses by the company most of time oppose to the culture of the country. Suppose in China the culture is very different from USA and depicting US culture in advertisement in China clearly polluted the culture of the country. Holding too political power by the big organisation makes that organisation arrogant for profit making and work against the social interests that reflected in their marketing activities.

Negative affects on other Business

The ill marketing efforts of one company may harm the other companies doing the same business such as acquiring the competitors; impose entry barriers through marketing and unfair practices of marketing with the competitors. Sometimes a big company instead of developing new product and services acquires other company, which reduces the competition. This company spends huge amount of money in advertising and promotion and make patent on the advertising that crates barrier to the new company to enter into the market. Big company may also dumping the price to wash out the competitors from the market and this is a very common practice by big company to destroy the small company by charging price lower than the cost.

Issues of CSR in Marketing

Consumerism: Consumerism refers to the movement of the consumer and government to protect and improve the right of the consumer or buyer in relation to the seller or service provider. Traditionally sellers enjoy more power relative to the buyer and according to consumerism concept; the buyer should have the following power.

  • Buyer can deny to buying a product or servicing which offered to the buyer for sale.
  • Buyer should have the right to expect the safer product or service from the seller.
  • Buyer should have the right to confirm the service seller claimed to contain in a product or service.
  • Buyer should well inform about the feature or characteristic of the service.
  • Buyer should have the right to say against the unsafe service or ill marketing practice.
  • Buyer should have the right to suggest the way of generating service or marketing effort that contributes to the improvement of the service.

Environmentalism

Environmentalism refers to the movement of protecting and improving the environment from any harm cases by the marketing efforts of the organisations. Environmentalists do not protest the organisation to produce or market the product or service but argue to do it in an environmental friendly way. They argues that the main motive of organisation should not the consumption rather the quality of life and quality of life is not depends on the volume and quality of consumption but on the quality of the environment. Because of the globalisation, the pollution of environment including the carbon omission, cutting forest, destroys the ecological balance etc increasing at an alarming rate. So that the movement to save environment for existing in globing get importance and give raise to the contemporary issues of environmental sustainability which indicates doing business in a way to minimise the pollution of environment.

Organisation’s initiative to CSR

Consumer oriented view: It is a philosophy of viewing the marketing activities from the customer point of view. It means all marketing activities of the company try to maximise the values of the customer through giving proper information about the services and give superior services.

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  • Customer value view: According to this view invests on those marketing activities, which adds values to the customer. If organisation spends money short run sale like packaging, advertising etc it may increase the sales in short run but does not contributes the improvement of quality, which may serve in the end (Marquina, 2007).
  • Innovative view: The seller of services may focus on the traditional way of marketing which does not contain any innovation loss the customers. The marketing efforts of organisation should be innovative which generate more return to the customers.
  • Sense of Mission view: Most of the organisation adopts a mission sole bear the massage to maximise the volume of sales and product range. The mission of the organisation should build in a way so that it represents a broader term of the welfare of the society beside the profit maximisation.
  • Societal view: Societal view of marketing refers to the decision regarding marketing reflects the value of customer, value of the organisation and the value of the society. It is a concept where an organisation produces a product or renders a service that will benefit the customers as well contribute to the society.
Innovation
Sources: Grayson, et al, (2008).

Ethical issues of Marketing

The ethical issues related marketing involves the decision regarding the distribution, advertising, promotion etc in which what rules should follow in case of moral issues arises (Crane & Desmond, 2002). It may create tension among the marketing manager as a decision may increase the sales of the product or service but may oppose to the ethics of the manager. Sometime the rules regarding the ethics are not clear to the manager or a problem arises which cannot solve through the existing rules and regulation. There are two philosophies in these ethical issues that include the laws regulations of the country define the standards of ethics and in contrast, the company may introduce its own set of rules to guide the behaviour or decision of the marketing manager.

CSR of Marketing in China

The government of China previously not permitted to enter into the Chinless market by foreign company but the situation changed now and as result a large number of MNC enter into the China and started operation in various region in the country (Goto, 2007). As a result, the importance of China in the business world gets more focus in current time and Chinese products and services getting popularity in rest of the world. Beside this business expansion, the issue of the compliance with Chinese society through CSR by the big multinational in China is getting supreme importance. To understand the social standard in China and the expectation of the society from the business organisation, the diagnosis of the culture of China is crucial and it is the key to success in China.

The culture of China

The culture of China build on the history of 5000 years and its culture are substantially different from those of the western world. There are three bases on Chinese culture, which includes Confucianism, Taoism, and Buddhism. These three religious systems is the pillar of Chinese culture, which teach the morality and define what is right and wrong. Firstly, according to Confucianism an education system developed, that determines who will take the responsibility of states. In this system, people have strong belief in God, loyal to the family, respect the superior and elder person. The sense of loyalty is very important and individual has the responsibility to the others.

The fairness and honesty is the main theme of this system, and when organisation doing business in China must stresses on the transparency and fairness in all of their dealing with the Chinese people. Secondly, Taoism is another religious belief build on three philosophies, which includes firstly; people should love others and themselves, be empathetic toward people in suffering, secondly, do not waste resources in terms time money etc. to live soundly and thirdly, do not standing in the front for innovation and new ideas which may cause the death of a person. Finally, the Buddhism is most popular in current time and the core value of this religion is all the things happen in the wish of Buddha, people should awake in mind for own and helping other, and try to awake the inner feeling of all being. All the business including the hospitality business must understand these doctrines to perform social responsibility beside the economic gain.

Current condition of CSR in China

The corporate social responsibility (CSR) in China is a recent phenomenon, as previously China would not allow the foreign business organisation to enter into the Chinese market. However, when China enters into TWO it opens the door to multination company to do business in the country (Sutherland & Whelan, 2009). The CSR movement in China is not that much strong in recent past because it has own labour and environment law but the implementation of the law is not clearly systemize so that the organisation doing business in China not concern about the matter (Tateisi, 2009). MNC interested in China for low labour cost and other facilities and it is a competitive edge most of the organisation. No labour laws and regulation have given for the labour of tourism and other industry (Dodds & Joppe, 2005).

As a result, no attention has given to the issues of labour right and environmental pollution of the country. Chinese organisation can keep the cost low because they do not need to spend money to protect the environment and issues of labour like safety, health etc. Currently most of the organisation working in China need to give attention on minimum wages of labour, safety of the worker, business model complies with environmental protection and so on (Chan & Wang, 2003). This is also applicable to the marketing efforts like green marketing, brand massage consistent with the culture etc. The Chinese manger perceived the CSR in the country in term of internal issues like wages of employees, usages of resources which trough CSR can manage more efficiently(Sutherland & Whelan, 2009). Chinese companies face a strong force from the investors to implement the CSR in the company. There are also some constrains for managers of China to implement the CSR such as unavailability of funds, lack of awareness of the stakeholders about CSR and the benefit of CSR is not apparent in China.

Is CSR a trend that is here to stay in China?
Sources: Wickerham & Zadek (2009).

CSR in marketing of hospitality industry in China

External CSR in Marketing

Customer oriented Strategy

All of the marketing efforts made by Ritz-Carlton in China directed towards the customers. This hotel works hard on increasing the satisfaction level of the visitor of the hotel in China. The increasing efforts of the hotel to the customer satisfaction make it one of the most prestigious hotels in China. It occupies six hotels in all over China with 2200 luxurious rooms and 263 club and suits room (Johnston, 2006). The hotel provides the service according to the demand of the customer that is integrated to its mission statement where it says “we ladies and gentlemen serving ladies and gentlemen. The hotel firstly welcome the guest with greeting by the customer’s name, secondly, try to assess the demand of the guest and fulfil accordingly and finally, give cordial farewell to the guest when departure. The guest satisfaction rate of Ritz-Carlton hotel is approximately 80%.

Stakeholder Strategy

The stakeholder of Ritz-Carlton hotel includes the customers, suppliers, shareholders, the member of society, and the government. Whenever Ritz-Carlton take marketing initiatives to increase the guest in the hotel it directly affect these stakeholder both positive and negatively. China is country of conservatism where people will not accept the marketing and advertising efforts that prevails in western world. To make the marketing effort fruitful the hotel authority tries to make a good relationship with the stakeholder in the country. Ritz-Carlton makes frequent contact with the government officials in China, they appreciate any kind of efforts to protect environment and seek approval of the marketing campaign from the stakeholders before it take place.

Societal Strategy

In marketing efforts, Ritz-Carlton always emphasis the social norms and values of China and most of the marketing employees selected from the country so that they can take the initiative which best fit with the society. In Chinese society, people are honest and they do not like the advertisement, which company in the western world. The people of China have a strong religious value, which reflected in their choice. As a result, Ritz-Carlton takes marketing efforts, which are more individualistic, and approaches the guest with the style of Chinese tradition. It also reflected in the corporate culture of the hotel that does not make any business, which oppose to the cultural and religious value of the country.

Environmental Strategy

In the recent past, the environmentalist raises their voice more to protect the environment and currently China is country was most of the pollution take place. Historically the government of the country was not concern about the matter but currently government with the citizen of the country are much more concern about the matter (Levy & Hawkins, 2005). Ritz-Carlton provides services to customer with minimum harm to the environment. As part of their marketing initiatives the offer customer more environment friendly atmosphere in the hotel where the product or food uses are safer and do not acquire through harming environment. Ritz-Carlton hotel works with various organisations of environment protection and working management of waste, water, energy etc. The hotel authority builds Ritz-Carlton Environmental Action Conservation Teams (REACT) to work on protecting environment is positively contribute to build brands of the hotel in China.

Green Marketing

Currently a most taking word in marketing arena is green marketing, which indicated the uses of green in every aspect of marketing activities. Ritz-Carlton started green marketing through its slogan of “Something Green” which implies the touch of green in every aspect of operation of the hotel (Huger T). They try to bring natural product from regular meal to cake and uses recycle product, which will not offer by traditional luxurious hotel. Ritz-Carlton uses organic food in their restaurant and tries to protect the eco system of the country and the whole world.

Hunger and Poverty protection

Part of Ritz-Carlton’s social commitment, the company work on poverty and huger reduction of low income Chinese in the country. According to Community Footprints initiative of the hotel, Ritz-Carlton build partnership with local organisation to provides food and shelter to the unprivileged portion of the country and the employees of the hotel work on it. Ritz-Carlton try to break the poverty cycle in the country through various community services in the country especially spends money on building home and food services in the country. This effort creates awareness among the local people and customers who are willing to spend money in the hotel.

Work for unprivileged Children

Ritz-Carlton hotel works for children especially for those who are suffering from malnutrition, poverty, illiteracy to support in their food and study and working tourism industry (Linde, 2008). They also sponsor in making playing ground for the children and investing in youth developing of China (Kolah, 2006). As part of this effort, hotel authority support the youth in their education and crating jobs for this youth so that they can sustain with economic security. These efforts greatly contribute to the marketing of the hotel as local community happy with the activities and using the Ritz-Carlton for their any kind of program and external customer paid value to this efforts.

Internal CSR in Marketing

Employee Recruitment: As part of internal CSR, Ritz-Carlton recruits local people in their sales and marketing team, which contribute to the economy of China. Ritz-Carlton is the best employer not only in China but also in whole Asia where a huge number of employees are recruiting in every year. The culture of China is very different from all other segment of the world, which requires understanding the culture to deal with people of the country. As a result, Ritz-Carlton selects the home country employees to send the massages of the company as well as serve its social responsibility to the community.

Employee Satisfaction

According to the CEO Ritz-Carlton hotel, there are three objectives of the hotel, which includes the employee satisfaction. The employee satisfaction rate of the hotel is 70% and the work team of the hotel consists of nearly 700 employees where the rate of turnover is only 16%.

Work Environment

Work environment of Ritz-Carlton is very sound and satisfactory. The general manager and line manager of marketing helps the employees perform better. Instead of saying employee in the hotel employees called as “gentleman” and “ladies” and the safety and security for employees are very high.

Training and Development

Ritz-Carlton provides training on various issues of business to the employee especially on the cultural issues. When an employee first going to serve the guest the gentleman or lady receive a training of two days on the culture and philosophy of the hotels where the general manager and HR manager teach the various issues related to the organisation and job. The employees will also get professional training from the expert trainer so that employee can deal in the market more efficiently.

Employee empowerment and improvement

In Ritz-Carlton hotel, the employees are empowered to make decision on the various marketing issues where they can best serve the company with sustainability. The initiative of innovation and improvement in performance appreciate by the top management.

Integration of external CSR with internal CSR

The key of success for Ritz-Carlton is focus on financial gain, customer satisfaction and employee satisfaction and these three objectives closely related with one another. To gain the financial advantages the customer satisfaction must high and to gain the customer satisfaction the employee satisfaction also need to be high. This interrelation is equally applicable to the CSR practices of Ritz-Carlton hotel as because the contribution of the employees can ensure the success of CSR initiative of the company. The recruitment strategy of Ritz-Carlton depends on recruiting employees from the host country instead of expatriate. The reason behind this strategy is that the local employee understands the culture well and it is part of the community contribution of the company. The CSR strategy of the hotel including economic contribution, social contribution, environmental sustainability etc will be successful if the employees feel and understand the need of CSR. On the other hand, the employees are also the member of the society and part of the CSR of approach of the hotel (Compa, 2008). The marketing efforts initiated by Ritz-Carlton focus on the local community of China, which implies that the strategy must comply with the religious and social values of the country. Historically the culture of China is different from any other culture of the world that demands special attention. To success in business and CSR initiative, local employees contribute more whereas the foreign citizen will not understand or cope with this culture.

As a result, the development of and success of internal CSR is correlated with the success of the external CSR. In a society like China where the citizen expect that Ritz-Carlton perform its CSR to contribute to the community, at the same time, as a member of society they also expect the internal development of employees regarding the uses like fare wages, proper training, empowerment etc. When Ritz-Carlton wants to get success in their marketing effort through conforming the customer expectation, green marketing, improving the quality of life, it requires the marketing people to understand to implement these issues. The local employee may feel to contribute more its own community and country than the foreign one. The stakeholders are also playing important role in implementing the CSR, as their approval is mandatory to perform the CSR in marketing. Some marketing efforts may not acceptable in China, which may be acceptable in Europe. These marketing may be addressing customer in general that feel disregard by the Chinese. As a result, Ritz-Carlton integrates the internal CSR with the external one to implement successfully the CSR approach in China.

Challenges and Opportunity in CSR

Ritz-Carlton hotel tries to implement the CSR in China according to the demand of the China as well as the broad guideline of western world. In such a case, it faces some challenges and opportunity to initiate CSR in marketing context (Lam, 2009). These challenges and opportunities and challenges are as follows:

Challenges

The major challenges of Ritz-Carlton in China includes comply more with the rules and regulation of the government and general norm followed by the society in implementing marketing strategies. It may face challenges in ethical issues where the concept of right of wrong is different in China then other country. The over consciousness of the Chinese government regarding CSR sometimes go beyond the strategies of the hotel which may force Ritz-Carlton to change its strategies that affect the overall operation of the hotel. Another issue that is very common in hotel and tourism industry is prostitution strongly prohibited in Chinese culture sometime may loose the customers. The marketing efforts of Ritz-Carlton may adversely affect the Chinese market and society may deny the hotel.

Opportunities

The opportunities regarding CSR in marketing in China is unique than any other countries for Ritz-Carlton hotel. It has the more opportunity to build relation with the local Chinese marketing agency to strengthen their marketing effort, which best serves, the customers, and community. Ritz-Carlton may introduce more new concept of CSR in marketing in the Chinese community, which may please the people of the country. Finally, extensive training on CSR to the marketing people directly contributes the CSR efforts of the hotel and in turn on the overall performance of the employee.

Research Methodology

Research objectives

The main purpose of this research is to examine the internal and external social responsibilities that high-scale hospitality industry should adopt for formulating and implementing successful marketing strategy in light of the case of Ritz-Carlton Hotels. The other objectives include:

  • To explore Ritz-Carlton Hotels socially responsible marketing strategy perspective
  • To examine the reciprocity of internal versus external social responsibilities in the context of Ritz-Carlton
  • To identify the challenges and opportunities in taking social responsibilities in marketing strategy as identified in Ritz-Carlton

Motivation for the Research

The researcher motivated to initiate the research to explore the CSR issues of marketing in hospitality industry especially in China where the concept and culture is different. It may clear the idea of CSR of marketing in hospitality industry and understanding of CSR in China.

Research type

It is a Descriptive research where the researcher tries to explain the CSR concept in marketing and explore the implication of the concept in hospitality industry in China. Here the researcher only explains what is happening in Chinese hospitality industry regarding the CSR of marketing. The researcher has no influence over the factors, which influences the industry.

Research Approach

In this research, researcher uses qualitative techniques of research where the researcher uses the subjective evaluation of CSR concept in the industry. In this research, quantitative techniques are not applicable because CSR is not a numeric concept to test. As a result, the qualitative technique is used. Researcher uses interview and observation for evaluation.

Sample Design

Researcher interview a sample of 20 people who participate in the interview make the judgment. The sample selection method is random in nature because the researcher does not use specific technique for selecting the sample (Saunders, Thornhill & Lewis, 2006).

Measurement technique

Here the researcher uses the nominal scale technique for measurement. Through this scale, the researcher measures the opinion of the sample and uses it for the research purpose.

Testing of sound measurement

  • Validity: The validity of the measurement implies the degree of measurement of sample to which it supposed to measure (Kothari, 2008). The question arises how to measure the validity without knowing exactly the valid measurement. Here the research uses historic data for validity purpose such as previous year data on CSR in China.
  • Reliability: Reliability refers to the chance of consistent result in consecutive test of a result (Zikmund, 2006). It is a common problem in research where repetitive test with same tools generates different results. Here the researcher carefully designs the research so that it generates consistent result and takes repetition in some case to prove the reliability.
  • Practicality: The measurement technique is practical in a manner that it is convenient, economical, and interpretable (Skinner & Ivancevich, 2003). The researcher uses a very limited time to do the research, it entails not very much money, and finally it can easily interpretable through the test.

Data Collection Method

The researcher use different technique to collect the primary data, which includes following:

  • Interview method: Researcher uses interview method for primary data collection through developing simple questionnaire on the CSR approach of company in China and CSR in marketing.
  • Observation: Sometimes researcher use observation method for data collection. It uses by the researcher because of time and resource limitation

Secondary Data

  • Case Study method: Researcher uses case study method through which analyze the recent case regarding CSR issues of marketing in tourism industry (Yin, 2003).
  • Existing literature: Researcher uses existing literature on this context and critically analyzes the data from the literature.
  • Internet: Researcher uses internet for various company information and existing literature and journal on this issues (Malhotra, 2009).

Limitation of the research

In spite of the maximum efforts, there are some limitation of the research, which includes the time, budget, and availability of the data. To conduct a descriptive research, it requires more time than the present one. The budget for the research is not sufficient and the availability of the data is another problem. The personnel of the hotel have the limitation to provide internal data of the company and also they did not have that much time to provide the sufficient data. Finally, the lack of experience of the researcher in conducting such kind of research is another limitation.

Conclusion

Recommendations

Here some specific recommendation mentioned for hospitality organisation including Ritz-Carlton for more success in China in term of marketing and promoting the people. The hotel should create a better understanding of Chinese culture through cultural training to the employees and can take more CSR initiative to develop the society and the country. Ritz-Carlton should help the government of the country to address problem in marketing that required immediate concentration. The advertisement efforts should more people oriented and contribute to the proper benefit of the service. More concern about providing appropriate value to the customer and helping customer to understand the value received makes people conscious about the CSR of the hotel. Ritz-Carlton should make more contact with the community members and try to develop more sustainable development effort with them and special Focus should make on the underprivileged segment of the society try to raise the standard of living.

Here the issue of environment is more important and it should integrate in the corporate strategy of the company and try to aware people about the matter. Arranging seminar and symposium will work well at it helps get more approval from the stakeholders regarding the CSR initiatives of the hotel. Give more training on CSR to marketing people helps to learn and implement more CSR in marketing efforts. Efforts should give to involve general people in CSR effort of the company so that they aware about the environment and other issues as well as about the company. Sponsorship in various sports, religious and social program will aware people of all ages about CSR of the hotel. Finally, stickiness to the strong ethical standards will help the hotel to with the approval of the social members and organisation (Lynn, 2007).

Conclusion

Through the literature review and analysis of tourism industry in China it is clear that the importance of CSR in China increasing day by day. In case of marketing of the service the chances of violation of community rules and regulations is very high. However, big MNC in China is more concern about the CSR in marketing strategy than the local small one. Ritz-Carlton is a multinational hotel chain that performs the CSR in marketing in the country. There are two issues of CSR of marketing strategy, which are the internal CSR and external CSR. Ritz-Carlton hotel perform both internal and external CSR and create a link between internal and external CSR so that the overall CSR objective can be achieved. In internal CSR, Ritz-Carlton hotel recruit and select employees who understand well the culture of China and make them expert through empowerment, training etc. These employees especially marketing employees are the key to succeed the CSR effort of the company externally. When promoting the hotel and making customer through marketing efforts the employees use the standard best fitted with environmental sustainability and other CSR issues.

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Appendix

Questionnaire

  • Name:……………………………………………………………………………
  • Address: ………………………………………………………………………..
  • Phone:…………………………………………………………………………..
  1. What do you understand by CSR?
    • Non profit initiative
    • Profit initiative
  2. What is the level of consciousness among Chinese about CSR practice of MNC’s in China?
    • High
    • Low
    • Moderate
  3. What do you think about Chinese community?
    • Conservative
    • Generous
  4. Is CSR can use as a tool of expanding business and making profit?
    • Yes
    • No
  5. What do you think about the commitment of Ritz-Carlton to the Chinese community?
    • Strong
    • Moderate
    • Low
  6. Do you think it is important to perform social responsibility by the company?
    • Yes
    • No
  7. What is the important part of CSR?
    • Community
    • Environment
    • Both
  8. Is there any relationship between CSR and marketing?
    • Yes
    • No
  9. Do you think it is practical to exercise CSR in marketing activities?
    • Yes
    • No
  10. Is there any chance to expand business through practicing CSR in marketing?
    • Yes
    • No
  11. Do you think the CSR practice of Ritz-Carlton in China is adequate?
    • Yes
    • No
  12. Is there any success for Ritz-Carlton in practicing CSR in marketing?
    • Yes
    • No
  13. Which marketing activities of marketing focus more on CSR?
    • Advertisement
    • Promotion
    • Packaging
  14. How Chinese community response to the CSR activities of Ritz-Carlton hotel in China?
    • Positive
    • Negative
  15. 15. Is there any Chance to increase CSR involvement in marketing of Ritz-Carlton in future?
    • Yes
    • No

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BusinessEssay. "Ritz-Carlton's Corporate Marketing Strategy in China." December 2, 2021. https://business-essay.com/ritz-carltons-corporate-marketing-strategy-in-china/.