After six months of research and development in the baby boo

After six months of research and development in the baby boomer segment, Starwood hotels launched a “style at a steal” marketing initiative to offer affordable but stylish hotel alternatives to its high-end W, Sheraton and Westin chains. Targeting an audience seeking both thrift and luxury, Starwood introduced two new low-cost chains: Aloft (designed to reflect the urban cool of loft apartments) and Element suites (with every element of modern daily lives, including healthy food choices and spa-like bathrooms). Which specific targeting strategy does Starwood use?Explain.

Solution

The targeting strategy used here is: Differentiated targeting strategy

Reason: Under this strategy, market segments are targeted differently and separately so as to be able to meet the needs of more and more customers separately.