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Running head: COMPETITIVE STRATEGYCompetitive StrategyName of the Student Name of the University Author note
1COMPETITIVE STRATEGYHospitality Industry: (Target markets and modes of entry)Hilton Worldwide HoldingsSegmenting markets is an essential and significant factor for shaping the strategies withinthe hospitality industry. This may result into differentiate and develop the hotel properties aswell. Within the fast changing landscape of the hospitality industry, the hotels are improving andexpanding continuously. While entering a new market, it is very important for the hotels tosegment their target market and position the brand. The key of a successful marketing strategy isthe STP strategy which is segmentation, targeting and positioning. The approach indicates thatthe entire market is constituted of few relatively homogeneous sections with their different anddistinct cultures and desires (Hennart & Slangen, 2015). Therefore this approach attempts torecognize each of the market segments, direct the activities of the organization according to thedemand of their targeted market segment and position their brand in an appealing way to thetargeted market segments. This section will discuss the target markets and mode of entries interms of the multinational hotel, Hilton Worldwide Holdings. Hilton Worldwide Holdings is a global brand with resorts and hotels in around eighty fivecountries across the world. The company has shown a constant growth over the years andincreased around thirteen percent from their previous year’s growth. The organization aims toprovide genuine experiences for their clients. When this hotel entered in the Australian market,the brand had segmented the entire client base in different segments for positioning their brand ina favorable position than the other brands. Segmenting the market involves differentiating thecustomers on the basis of different variables such as demographic, geographic, and
2COMPETITIVE STRATEGYpsychographic and many others. While entering the Australian market, Hilton WorldwideHoldings had segmented their market in following ways: Geographic segmentation: This segmentation includes targeting a particular group of customersbased on their geographic locations in the global and national levels (Brouthers, 2013). Thisstrategy of Hilton hotels aims to build their hotels in locations which are quite popular for thetarget market base. For instance, Australia has been a favorable position for the hotel as it isapopular location for ding business and travel. Demographic Segmentation: This segmentation includes different variables such as age,gender, income, lifestyle, social class etc (Samiee, 2013). In this term, the Hilton WorldwideHoldings target the clients who are mostly middle to senior aged and belongs to higher incomegroup and upper class of the society. The organization charges premium price for their qualityservices. Psychographic segmentation: The hotel targets the ambitious professionals who can expressthat they can perceive the higher achievements and high status by paying the premium service inthe hotels. Benefit segmentation: This segmentation includes the implementation of the market segmentbased on the benefit of the customers and focus on obtaining the services and products providedby the company (Brouthers, 2013). Therefore Hilton has offered its existing and potentialcustomer base a higher status in the society with luxury and a sense of accomplishment. This segmentation of the market has helped the brand in entering the Australian marketwhere such premium quality hotels existed from before. Since the hotel has targeted the higherclass and upscale customers who belong to the higher income group and travel for business, the
3COMPETITIVE STRATEGYhotel has considered providing a high level service as a major mode of entry. The marketingteam of the organization has executed a regionally relevant and a coordinated strategy that candrive more customers to them. The hotel also applied their revenue management to thesegmentation and targeting strategy as this has helped them to reach a varied customer base andmatched their budget as well. United backpackersKraus et al. (2015) has pointed out that backpacking is quite popular in Australia and thisindustry has made a major contribution in the national economy. The backpackers from all overthe world come to Australia. Naidoo & Wu (2014) has indicated that the hotels are quitesignificant for offering the essential facilities for the entertainment and leisure for the urbancrowd. However, within this globalized era, the low budget hotels are increasing. There are largeshares of the Australian hotels that are budget oriented. As discussed before, the notion of marketing segmentation indicates to the split of themarket into different segments of customers. The segmentation is done on the basis of similarrequirements of a group of customers. As per the demands of the customers for same choice ofaccommodations, the backpackers’ industry has taken adequate steps to target their particularsegments and choose their new modes of entry in the market. ‘United backpackers’ is anorganization that mostly targets the youth groups. The segmentation of this tourism industry isgenerally designed to achieve a certain level of industry development. Targeting the market alsoprovides a clear framework for the potential changes that the industry may make for makingeffective steps for developing the industry (Hassan & Gioeli, 2014). The ‘United backpackers’mostly targets the psychographic and demographic segment as they attract more young travelers
From the above report "STP strategies", we have seen the Competitive Strategy for 3 different companies Hilton Worldwide Holdings, Food, and Beverages Industry: Coca-Cola and Nestle. The brand has understood and anticipated the requirements of the customers which have helped them to adapt to the new opportunities that came in their way throughout these years. The key to a successful marketing strategy is the STP strategy which is segmentation, targeting, and positioning. "Marketing Strategy of Hilton Hotel", "Marketing Strategy of Nestle", and "Coca-Cola's Marketing Strategy" are 3 important strategies that need to be analyzed for better analysis.
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