Westin Hotels and Resorts: Operations of a Lifestyle Experience

WESTIN HOTELS AND RESORTS: OPERATIONS OF A LIFESTYLE EXPERIENCE

      Building and managing strong brands is considered to be one of the key drivers of success in the hospitality industry. This trend towards strong brands is also developing at the local as well as global level for better market recognition (Hemmington & King, 2000). A brand extension strategy is defined as ‘the use of established brand names to enter new product categories or classes’ (Keller & Aaker, 1992). A brand extension is when a firm uses an established brand name to introduce a new product. An existing brand that gives birth to a brand extension is referred to as the parent brand (Keller, 2000). This strategy has become popular these days. Thus, over 80 percent of marketing directors in a recent Brand gym survey said that brand extensions would be the main method used to launch new innovations in the next two to three years (Taylor, 2004). Brand extension strategies are advantageous because they reduce the costs of brand name introduction and enhance the probability of success in a new category. The use of brand extensions across multiple product categories is also common.

     A hospitality company can use endorsed brand extension strategy to extend the power of                well-accepted brand identity to a number of diverse concepts differentiated by market segments. By endorsing an range products, the leading brand can show out its good name and image t the entire brand family. (Muller:1998). In the hospitality industries customers often based their purchase decisions perceptions of a company brand example Hilton, McDonalds, Chili’s and many more. However a little research was carried out about brand extensions in the hospitality industries. The purpose of this study was to test the trends and applications of brand extensions in the hospitality industries explore how consumers evaluate brand extensions and provide a conceptual model of brand extensions from the consumers’ perspectives. The broad aim of this study was to investigate how brand extensions can contribute to brand strategy. Of primary interest is whether brand extension strategies are a significant issue in the hotel industry.

      Westin was the first hotel company to use category extension for its products. They developed their unique Heavenly Bed with its own brand name under the slogan ‘its layer after layer of cozy down bedding. It's an oasis for a weary traveler. It's heaven on earth. And it's at Westin.’ Now, Westin's Heavenly Bed is being sold not only through a room catalogue on the Internet but also in the At Home departments of 48 Nordstrom stores nationwide, and is available by special order at others. Each component and a bed frame also can be purchased separately at stores. The bed has a distinctive brand standard, and is a good brand to build upon. The Heavenly Bed was a trailblazer in hotel marketing and prompted other chains to follow similar approaches. It was the first big success in the growing hotel retailing business. After Westin’s success, other upscale hotels started to 44 Journal of Marketing Development and Competitiveness many companies imitate that brand extension concept for better lifestyle experience. Other Starwood brands launched branded pillows and beds. Sheraton Hotels introduced a mattress and bed under the brand name, Sweet Sleeper mattress, bed; W Hotels started to sell W brand pillows, sheets, and bedding products as well. After the huge success of the Heavenly Bed, Westin Hotels developed another product named the Heavenly Shower.

      Westin’s Heavenly Bath came just two years after the introduction of the Heavenly Bed. This new bathroom improvement was the result of a survey by Westin, which was conducted by Guideline Research and Consulting Corporation of New York City. One thousand men and women were interviewed on their bathing habits and bathroom likes and dislikes. After a year of research and development, which included testing more than 150 showerheads, Westin decided on the Speak man shower with a dual showerhead. The custom-designed showerhead features several spray options, from a light mist to massaging needles. Westin has already begun installing Heavenly Baths around the country. The literature on brand extensions suggests some advantages of this strategy; the facilitation of the adoption process and acceptance of new products, since users assume new products have the same quality level as existing ones; a minimal cost of branding to the manufacturer, since name research will not be needed, nor will extensive advertising for brand name awareness and preference be necessary; and user response will tend to be faster, thereby reducing the introduction stage in the product life cycle where profits are negative. In addition, another advantage often obtained is the greater ease in gaining distribution (particularly shelf space) due to the familiar brand name. More effectively reaching target market can be another advantage. Jiang et al. (2002) stated that a brand extension strategy allows the firm to penetrate a variety of market segments with differentiated products that carry a single, well-established brand name. This strategy also lowers the risk associated with the introduction of new products (Kapferer, 1997).When introducing an extension the risk associated with a new product launch is greatly reduced. Additionally, brand extensions allow companies to save expenses and share space, and provide variety and convenience for customers.