In 2012, IKEA and Marriot hotels decided to form a long-term partnership with the ambition to introduce a new hotel chain to the European market. Partnership is defined as a legal contract entered into by two or more persons in whom each agrees to furnish a part of the capital and labour for a business enterprise. IKEA and Marriott, two companies that both hold extensive expertise in their sectors, soon release their new hotel chain Moxy. The new venture between a famous furniture retailer and a global hospitality provider has captured much attention, especially since IKEA has not intended to furnish the hotels using any of their own products. So, is Moxy an idea worth consideration?
IKEA is one of the largest international furniture retailers in the world, and their customers are very familiar with the concept. People go to IKEA and expect to find well-designed furniture at a reasonable price, a playful environment, variety, as well as comfortable furniture. On the other hand, Marriot Hotels is an American hospitality provider that manages hotels and lodging facilities. With more than 3,800 hotels in over 74 countries in their portfolio, there is no doubt that their experience with customer service and quality is impeccable.
The decision where to locate the first Moxy may have a great impact on how these brands are perceived. Out of all the places they considered, IKEA and Marriot finally chose Milan, Italy. Generally considered the fashion capital of Europe, this shows that the company emphasizes design over other values. Was this a coincidence or they are trying to relate their consumers into a more “stylish” mood? Would naming the hotel Moxy affect the impression that IKEA-Marriot customers have? Will this brand extension work? The best is yet to come.
Taken from:
http://www.moxyhotels.com/en/
http://www.ikea.com/ms/en_CA/about_ikea/the_ikea_way/index.html
http://www.ikea.com/ms/en_CA/about_ikea/facts_and_figures/index.html
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