The Strategic Management of Brand Equity: Exploring the Resources, Capabilities and Lessons of Marriott's Entry into China

Abstract

Empirical research has consistently demonstrated a significant and positive relationship between brand equity and desirable organisational outcomes such as higher returns on investment, brand extension opportunities, and higher levels of consumer preference and purchase intentions (see Madden, Fehle & Fournier, 2006; Yeung & Ramasay, 2008). More recently, there have been calls for researchers to go beyond identifying the benefits of effective brand equity management to explore how brand equity is constructed as a strategic organisational process (Banerjee, 2007; Broyles, Schumann & Leingpibul, 2009). One such call has been to identify the specific organisational resources and capabilities required to manage brand equity strategically and internationally - especially in firms attempting to leverage Western brands into emerging Asian markets such as China (Ni & Wan, 2008). This paper presents an analysis of the entry by Marriott International into the Chinese market for high quality hotel accommodation and associated services, with a particular interest in the resources and capabilities that the company used to manage their brand equity effectively in that context. The analysis indicates three key aspects in the development of the antecedent resources and capabilities associated with brand equity management across national borders into China.