When analyzing Morgans Hotel Group’s strengths and weaknesses, overall, the company strives in numerous areas. One key facet that Morgans has is its ability to award their customers for their business. Regardless of their target segment, Morgans was able to implement a key marketing element to maintain their business with their clients: incentive exposure. What Morgans has with their partnership with Virgin, Virgin Atlantic Flying Club, Virgin America and Velocity Frequent Flyer is what keeps their customers loyal to their brand. The incentive that’s provided to their customers offers a very unique experience.

What Morgans Hotel Group offers is a high class, once in a life time experience that would leave anyone who was to use their hotels mesmerized but above all, treaded as if they were the only client and not a feeling of just being part of a pool of customers. It’s no surprise that their target is towards high profile, high wage consumers who are capable of staying numerous nights but also, including these incentives which detail that with every stay at a certain hotel, the customer is awarded points that eventually will accumulate to free airfare at corresponding airports. The genius to this idea is the comfort/loyal factor this entails in the consumers mind or consideration set (Evoked Set). What this does is it pushes the consumer to not only stay more frequently in one of Morgans’ hotels but once they’ve obtained a substantial amount of points to travel anywhere for free, these consumer will travel to areas where Morgans is most likely located. After travelling to these areas, the consumer will again stay at a Morgans hotel, racking up on points, gaining them closer to a free trip and eventually to the continuing cycle of always using Morgans. This process not only creates loyalty but positive word of mouth which we all know can expose their brand to potential customers. This process is all put in place with their persistence to maintaining the experienced management that’s currently in place.

Of course, the weakness that Morgans