Executive Summary In this study the details are interpreted on the bases of Hilton hotel in which there main focus is to retain the customer for longer time period. As Hilton hotel carry the renowned brand name in international market and also there main purpose is to provide loyal services to customer so that they prefer the services of Hilton in near future. In this report the details are also overviewed regarding the completed detail of the Hilton hotels and their marketing strategy. The report also covered with themarketing audit plan regarding the internal and external factors which is considered in examining the potential growth of Hilton in future perspective. Marketing mix is used to determined the gaps which is examined through comparing the external marketing techniques. Thus, all the aspects are to be covered in sustaining the Hilton hotel for longer time period.
Table of Contents INTRODUCTION...........................................................................................................................4 MARKET SCENARIO...................................................................................................................4 1) Outline of hospitality sector and its market positioning.........................................................4 2) Marketing audit of SWOT and PESTLE of Hilton Hotel and identify its potential growth. .....................................................................................................................................................7 3) Marketing mix action in order to decrease the gap among the present marketing strategy and the external environment....................................................................................................11 CONCLUSION..............................................................................................................................13 REFERENCES..............................................................................................................................15
INTRODUCTION Marketing management refers to managing the overall activity of the company which includes planning, executing the business project related to managing the pricing, promoting the business into different market and targeting the customer to determine the success criteria of the company. Thus, marketing is the basic need of every company to retain in market for longer time period (Akkanen, 2017). Company uses various marketing techniques to enhances the interest of customer to avail such products and for that they use various techniques and strategies to retain their interest. In such perspective managing the various marketing techniques helps company to grow business for longer time period. Management is determined on the bases of various competitors in market regarding the same products or attaining the same business. In such manners, there are various matters which is to be examined at the time of promoting the products and retaining customer interest in company for future growth (Baker, 2016). Present study is based upon the Hilton hotel and resort which is carrying a renowned brand name in international market. This hotel is founded by Conrad Hilton in 1919. As due to providing the best services in market, they are considered to be one of the top hotel inhospitality sector in international market. Report will includes the overview of the hospitality sector and its market positioning as well its unique selling propositioning to retain large number of customer towards their services. It further includes the concept relating to marketing audit and its internal and external factors which determines the overall marketing strategy of the industry. In this report, it also determines that whether the hospitality sectors has potential growth to sustain business for longer term growth. Lastly the report ends up with examining the gaps between the company present marketing strategies and the factors which is recently occurring in external environment. In this report is also identifies that the new marketing mix action is to be achieved to examines the actual gap which sustain the customer interest for longer time period. MARKET SCENARIO 1) Outline of hospitality sector and its market positioning Overview: Hilton hotels and resort also known as Hilton hotels carry the renowned brand name in international global hospitality sector. Hilton hotel was founded by Conrad Hilton on May 31, 1919. Its main headquarter is in US. As per the recent survey which is conducted on 31stDec
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2018 interpreted that 586 hotels of Hilton resort is found in across 85 countries and six continents. With this numbering it is identified that 244 Hilton hotels are deal in franchising and situated across the country. The concept behind establishing this hotels at large scale is that they had to target the business and travel leisure at most common areas such as city centres which the customer can easy approach, near airportwhich attract high class gentry by providing quality services (Bowie, Buttle, Brookes and Mariussen, 2016). The main areas which they focus on locating the Hilton hotel is the most demanding vacation places which is mostly liked by customer or traveller to visits such places. They set their key goals regarding enhancing the customer needs and providing loyalty services to their customer. There main focus is to provide the services which develop more flexibility to their customer in case of having the long journey. The concept of establishing Hilton hotel brought by Conrad Nicholson Hilton after viewing his father general store. As having the entrepreneurial skills he partially converted the stores in 10 room hotel. Conrad dream is to purchase a bank and instead of purchasing the bank he prefer to purchase the property, he bought his first hotel with 40 room in Texas in 1919. By having the unrecordable success of this property, he converted his dinning room of the property into the additional rooms (Chernev, 2018). By having continuous success, Conrad built so many hotel chain across Texas by this, the results arises of bankruptcy. Due to this perspective he had lost so many hotels but manage to save 8 hotel. After the years Conrad plan to expand the hotel business into many countries such as California, Chicagoan and new york and by managing the success Conrad Hilton is considered to be one of the top most brand to expand their hotel sector worldwide. During 1950s Hilton hotel facilitate with the American tourism and committed overseas business by American corporation. This is the overall journey of the Hilton hotels. At present Hilton hotel is choosing various methods to attract the customer interest by providing loyalty services to their clients. They provide special scheme to their premium customer which book hotel room or any other dinning area online (Deepak and Jeyakumar, 2019). The member can directly book the room as per their own choice and also avail such services such as free Wi-Fi, digital booking for own choice of rooms, key less key for their room, if they book online. They canalsoavail special scheme if they promote the hotel or use their code for next time booking. Market positioning:
Hilton mark the milestone in the hospitality sectors and now he is operating in 100 countries having the renowned brand name in international global market. The main criteria which the Hilton hotel focus on is relating to making budget for promoting their brand name insteadofmakingstrategiestobeatcompetitorsinmarket.Byenhancingtheirmarket positioning, they are examining on the bases of segmenting the hotels industry into different segment such as in culture and economical perspective. Through this factor, Hilton balance their internal and external management in proper way (Della Corte, 2016). Hilton choose the best techniques to attract the customer as they provides services according to the needs and wants of the customers. As for youngsters they are providing the sufficient areas where they can spend time with friends and also eat hygienic good, so that they can spend the time and also various facilities which they can easily manage. For business mane the sufficient Wi-Fi facility and also private area, so that they can attain their business meeting and also carry the important discussion at particular place. For family who are at their vacation, they can spend the quality time without any disturbance and also provide hygienic food (Dinh, 2018). The special attraction which they given is on the bases of organising the events such as marriage, birthday parties, bachelors party, business conference meeting or any other facility. Thus, its market positioning is determined on the bases of targeting the particular segment and also managing the time by reaching to large number of customers (Haider and et.al., 2019). The position of the hilton is determined as they manage the time of the staff as in case of heavy demand of the hotels, they are offered with huge wages and in case of less demand, they give time flexibility to their staff so that they can retain them for longer time period. In such perspective the marker positioning is determined which can be also be the unique selling proposition is that they enhances their brand name by distracting mind of the customer regarding booking their hotel. This can be enhanced by maintaining the customer loyalty and providing the best luxury services as customer are equal and they cannot be discriminated on the base of culture (Hanssens, 2020). Hilton balance their position in market by launching new and innovative ads or choose the innovative promotional techniques such as by availing huge discount to customer or by hosting charity events. As through this strategy they can enhances the selling proposition of the hotel by raising more offers to the customer and this can be achieved by promoting the business through online. Customer spend most of the time surfing through internet and they are flexible in booking the rooms online. Thus, social media marketing is the
best place through which they can get high bookings and also get positive feedback after availing the services. It is also examined that Hilton hotel take revert back reviews from the customer once they avail the services of hotels. They also interpret the result once the reviews is undertaken. This is the positive sign as customer feels happy if their reviews are taken in positive manners and also bring changes in existing services (Kerin and Hartley, 2015). Thus, Hilton hotel examines that more than 700 sales person are carrying the activities of the Hilton hotel worldwide and also approaching to large number of customer to increase sales. The sales team are working on enhancing the brand level of the Hilton hotel and for that they are preferring the proper platform to increase their brand ratios. The positioning is also determined in respective of maintaining the culture values and norms in respective of serving the food in different country (Market Segmentation strategy - Hilton Hotel,2016). As in case of Islamic religion, Hilton didn't serves food which includes pork as the taste of culture of Islamic religion not prefer such food. The main things of Hilton hotel is that they respect the culture and also take care of the necessities regarding the taste of customer. The marketing strategy affected in case of having no season or if Hilton not prefer any changes in their internal and external management. Holiday makers and traveller prefer to visit such places which also carries the attractive designation or any other ancient things which attract the visitors interest (Kátay and Kiss, 2015). In such perspective welcoming the customers in hotels with the country culture also one of the unique concept to distract the mind of the customer. Through this proposition they can promote their brand name by launching new and different ideas to enhances the customer interest towards the hotel and retain them for longer time period. 2) Marketing audit of SWOT and PESTLE of Hilton Hotel and identify its potential growth. Marketing audit refer to conducting and determining the overall objectivity of the company by examining their internal and external aspect. Marketing audit can be done on the bases of creating or comprehension the overall integrity in market, alleging the goal by keeping the perspective of audit, gathered data and information which is generated by determining the marketing performances and than by compare the results from the set goals (Yi, Li and Jai, 2018). This is helpful in balancing the brand position in market and also quality can be improved if their is any lack in fulfilling it. In respect of Hilton hotels, marketing audit is necessary in
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examining the overall perspective of the hotel industry so that they can identify its internal and external aspects. To identify the internal working, it can be done through SWOT analysis. StrengthIn respect of Hilton hotels, the strength is identified in respect of carrying the renowned brand name in global market. The customer are waiting for the scheme as they are happy with the services which are provided by Hilton. As Hilton carry the large number of real state property which is also one of the major strength as they don't face anyfinancialissueincaseoflossinanyonehotel (Akkanen, 2017). Hilton is famous in adapting the latest technology as they mainly attract the customer through innovative ideas which enhances their interest for longer time period. Through this perspective, the strength also analysed in form ofcarryingthestrongsupplychainwhichleadsto maintaining the good position in market. WeaknessThe weakness arises in form of managing the huge hotels as Hilton hotel prefer to have continuous expansion and for that they are not managing the hotel activities properly. By having continuous expansion, the weakness arises in respective having high demanding regarding the interior or new structure buildings (Baker, 2016). By this they had to increase the cost for managing it according to the given instructions. The another weakness which is found in Hilton hotel is relatingtointernalmanagementandoperations.As customer complaint regarding not getting proper reviews if any queries is raised. OpportunityHilton grab the opportunities in form of expanding the business into East and South Africa for having significant
growth in the hospitality sectors. Hilton prefer thelatesttechnology to attract customer. Thus,bythisservicestheyarefindingweakening competitors which are lack in providing the same service whichHiltonhotelisprovidingtotheircustomers (Chernev, 2018). In present scenario, they are targeting the new customers so that this enhances their capacity to attract them for short term and long terms aspects. ThreatsThe major threats arises in respective of facing political instabilities as hotel are expanded in many countries and every country had different polices to accomplish the work. Competitors are using the same marketing strategies to attract the customer thus, its results in threats to Hilton hotel (Della Corte, 2016). Marketing audit is to be examined through external factors and it can be by analysed by choosing the PESTLE analysis (The Hilton Hotel -Future issue in PESTLE,2019). PoliticalIn respect of political factors, the issue arises in respect of political in stability. Thus, many countries government had different polices to enter into international market in such cases the issue arises in respect of following the government norms (Dinh, 2018). Thus, in such perspective the person who are living in Northern Ireland had to follow the strict norms which is imposed by government and they are bound with such rules and regulation. In such cases, the barriers are imposed on visitors and traveller to prefer travelling either in direct or indirect ways. EconomicThe factors which affects Hilton hotels is relating to getting the skilled person in case if they are expanding the business into different country where there are lack of skilled person. The issue
arises in respect of appointing the right person to handle all such task and activities in better manner. The another impact is analysed in respect of inflation rates (Haider and et.al., 2019). As Hilton hotel had to design the prices according to the needs and demand of the customer. In case if the customer demand seasonal fruit and if their is of no season, the inflation occurs. SocialThe factor which is examined through social factors is relating to the culture of the people. As every person are from different culture and thus, Hilton Hotel had to manage in accurate manner. Hilton hotel is expanded at global level thus, the impact arise in respect of taking care of every culture and also providing accurate products which are in demanding. TechnologicalHilton hotel faces technology issue in respect of upgrading the system and reaching to large number of customer base. As Hilton hotel mainly commit online business and also provide offers if the customer book the room online. In such perspective, the issue arises in respect of not confirmation of booking and payment is alsodeducted(KerinandHartley,2015).Ascustomerfiled complain in such aspects as they are facing issue in online booking and also their booking is not confirmed. Hilton hotel also faces issue if they not upgrade the system as customer are attracted if they get fast services and also their booking is to be confirmed instantly. Thus, this is the major impact which is identified in respect of reaching to large number of customers. LegalThe legal factors which affects the Hilton hotel in respect of data protection. As by choosing the online business, customer share the data and information through digital platform in such perspective it is the duty of the hotel to protect the data and information of the customer (Fan, Lau and Zhao, 2015). As there are more chances of infringement of data and thus, they had to protect the company
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information through high coded security. They are also bound to work under the health and safety norms as if the customer rights are not secured, it may affects the reputation of hotels. EnvironmentalThis is also one of the major aspects through which the hotel industry is affected as due to changes in climatic condition or wastages of products resulting in facing major issue. As Hilton had to fulfilled the needs and demand of the customer and if they demands any seasonable fruit which is not available, it results in not fulfilling the customer needs (Haider and et.al., 2019). Hilton hotelalsoaffectedexternallyincaseofchangesinweather condition as visitors prefer to travel on good weather. In such cases if the weather is not good for that particular place it results in facing losses to Hilton as they had to maintain the hotel and also had to pay wages to the staff working in hotels. There are various chances of having potential growth for Hilton hotel as they mainly committed their business online (Kátay and Kiss, 2015). Thus, they can reach to large number of customer by providing innovative advertising concept, so that they can easily promote their products and services at international level. By this procedure there are more chances of having potential growth in hospitality sectors. 3) Marketing mix action in order to decrease the gap among the present marketing strategy and the external environment Marketing mix refers to as a system wherein the company makes a combination of different elements of marketing mix and apply it within the business in order to attain the objectives of the business (Fan, Lau and Zhao, 2015). Marketing mix is a combination of different factors which all affects the production of company and what the consumers wants. There are 7 elements in the marketing mix. Without marketing mix no company can work in a profitable way. It is because of the reason that without marketing the products and services of any company cannot be marketed within the market and if the marketing will not be proper then the products and services will not be much preferred by the consumers.
For the present study marketing mix of hotel Hilton has been taken. There are many of the changes taking place in the hotel industry which the Hilton hotel needs to take into consideration. Like for instance there is increase in technological sector like increase in use of artificial intelligence, use of virtual reality, use of front office desk and many other different up gradations. All these new developments and changes need to be studied by the hotel and they need to adopt to these changes so that it is able to adopt to these latest challenges and face the competition. Therefore, marketing mix for developing and adapting to the latest techniques by hotel Hilton is discussed in the adjoining points below- Product-the hotel deals in a wide range of products and services to a variety of consumers coming to the hotel. The hotel provides for a wide a variety of services like, restaurants, food, accommodation, lodging, banqueting, conference and many other services. But now the services have also been upgraded so now the hotel needs to upgrade itself for betterment. Therefore, for this the hotel needs to upgrade itself with new technology that is artificial intelligence within the hotel. This will include use of voice aided instruments, face recognition technology at times of check- in and check out and many other developments. Price-the price is the amount of money which is charged by the hotel in exchange of the services provided by the hotel (Datta, Ailawadi and Van Heerde, 2017). The hotel charges the price by using the method of penetrating pricing method. Under this method at the initial level the prices of the products and services at low prices first and as the product and services become popular then they eventually increase the prices. The underlying reason behind the pricing at low first is that with initial low prices more and more customers are attracted towards the hotel and then suddenly increases the prices slowly (Ramani and Srinivasan, 2019). Therefore, with low prices the customers become loyal for the hotel so a slight increase in the prices does not impact the customers. Place-the place refers to as the place where the products and services are made available for the consumer to take for the consumption or use. The place needs to be very good and appealing. It is because of the reason that if the place will not be good then the consumer will not get attracted towards the hotel. However, for a hotel industry it is of utmost priority to have a clean and hygienic ambiance and environment. Therefore, these technological advancements will help the hotel to attract more customers as new technologies like use of robots for cleaning the hotels, room servicing and many other reason will attract the consumers.
Promotion-it refers to as the process of promoting the products or services of a company within the market. here hotel Hilton uses very good techniques and ways of promoting the services and products of itself within the market. the promotion of the goods and services are very necessary for the hotel because of the reason that there is tough competition and to face this competition it is very necessary for companies to have some distinct features and qualities in its products and services. this is done in order to have a competitive advantage over its customers and they prefer Hilton over other competitors. for this Hilton mainly uses digital marketing method. It is because of the reason that it is very less expensive source of marketing and covers a wide area of consumers at a single time. People-this is another element of marketing mix which Hilton hotel needs to take into consideration at time of analysing the gap between the present strategies used by hotel and the changes taking place within the business environment. the hotel deals with many different type of people. therefore, it is necessary for the hotel to make sure that the people working within the hotel are very cordial and friendly with the guest coming to the hotel (Blut, Teller and Floh, 2018). it is because of the reason that every individual is different in its thoughts and perception so it is necessary for the staff of the hotel to manage the guest coming to the hotel in good way so that they are not dissatisfied with the services provided by the hotel. Process-it includes all the steps which are involved within the manufacturing of the products and services which are used in delivering the final products and services to the ultimate consumers. In Hilton hotel the process starts with identifying of the target customers that is which group to target and then manufacture the products and services in accordance with the needs and demand analysed of the target group. It is done because of the reason that if the hotel knows what are its main customers then it is beneficial for the hotel as they know what to do for promoting the products in front of them (Abril and Rodriguez-Cánovas, 2016). Physical evidence-this refers to as the way that how business and the services provided by the hotel are perceived by the consumers and the market (Hanssens, 2020). This is necessary because it outlines the market values of the hotel and the position which products and services have in the market. The physical evidence of hotel Hilton are like its brand value, trademarks, and many other things.
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CONCLUSION From the above study it is concluded that Hilton hotel is one of the largest hotel in world and also they carry the renowned brand image in international market. There main aspect is to maintain the customer loyalty and sustained them for longer time period. In this study it is interpreted that the market position is determined by targeting the customer through digital platform. As this is the latest trends which is adapted by company in enhancing the customer needs and also take reviews once they avail the services. Hilton hotel main focus is to position the brand name in international market. So that they can distract the mind of customer through their special scheme and offer and also weakening the competitors by their marketing strategy. Hilton hotel mainly adapted the marketing audit to identify its internal and external factors through which they affecting their potential growth. Through this factors, its helps Hilton to take various steps to maintainthe growth for longer time period and retain the customer interest by taking care of their needs and wants. Through the procedure which is chosen in respective of identifying the gaps are to be manage by marketing mix which is used in identifying the present techniques used by Hilton hotels and the latest strategies adapted in external environment.
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