This paper elaborates on the marketing mix of Hilton Hotels, including product, price, place/distribution, and promotion. It also provides an overview of the decision-making process and market segmentation.
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Running head: HILTON HOTELS Hilton Hotels Name of the Student: Name of the University: Author note:
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1HILTON HOTELS Executive Summary Hilton Hotels Corporation (HHC) is one of the most prominent global hospitality corporation that has more than 3500 hotels world-wide in 91 different nations. This paper has elaborated on the business operation of Hiltons, providing a brief background of its business procedures. It has also assessed its strengths and weaknesses and the opportunities and threats present for it in the current business scenario. The paper has also carried a PESTEL analysis in order to assess its macro environment which influence its business. With the same, it has also conducted a SWOT analysis in order to assess its internal and micro environment factors. It has also shed light on its competitive edge along with the market research strategies that the enterprise uses. In order to do so, it has carried a competitor’s analysis taking Marriott, Ritz Carlton and Accor into consideration. There are also some market strategies and objective recommendations made for the part of the company and with the same, it has also made a market segmentation by dividing a large segment of the market into smaller segments. Furthermore, it has also presented a brief overview of the decision making process in the hotel and have presented a marketing mix, assessing the 4 Ps of marketing.
2HILTON HOTELS Marketing Mix Defining a proper marketing mix for hotel industry is crucial for the success of hotels marketing efforts. A marketing mix is used to indicate the several marketing variables used by the sales team to target specific guests or target market segments (E.g.: Corporate, Transient, Groups, Conference, Leisure etc.). Product A product is divided into three different levels and they are Core, Facilitating and Supporting products. Hilton Hotels can be identified as a up market fully serviced hotel, which offers services such as hotel rooms, meeting/ conference facilities, hosting weddings receptions, banquets Restaurant, lounges Bars, food & beverage services, room service swimming pools, gift shops, retail facilities and other services such as but not limited to airport transfers. The core products of Hilton Hotels are the hotel rooms that Guest stay in for a precise period of time (Hotel 2017). With the same, Hilton offers a group of common facilitating product like clientservices, bars and restaurants, meetings/eventsand on-linereservation facilities. Moreover, Hilton Hotels provides 24/7 room service, free newspapers and magazines for enterprise travellers, concierge offerings etc. Furthermore, the augmented products supplied by Hilton Hotels consist of membership discounts, luxurious room and exterior designs, high end restaurant with relaxed ambiances. It also provide augmented products. It is to note that the Augmented product is advantage provide made by way of companies that consist of core product and peripheral services. Augmented products supplied by Hilton Hotels consist of membership discounts, luxurious room and exterior designs, high end restaurant with relaxed ambiances. Questions to asked when marketing a hotel What's the name of the presented product? (brand)
3HILTON HOTELS The environment of the product? (Colour, size, design, and so forth.) In which, how and who is capable of use it? Customers’ expectancies from the supplied product? Form of supplied accommodation? (budget or high end) Highly-priced features of the product? What is the level of competitiveness? What is the variety of supplied services? How does the product satisfy demand Price Pricing techniques used by Hilton can be divided into four vast classes within the framework of Pricing approach Matrix: financial system, penetration, skimming and top rate pricing techniques. Penetration pricing approach, includes offering high end services and products in low prices than the competition to be able to increase market share. The skimming strategy is to position Hilton among the most prestigious of hotels. Skimming, as a pricing strategy is contrary to penetration in a way that products and services are presented for a better price tiers than the competition. The principle intent for the selection of skimming pricing approach may also include the preference to companion services or products with exclusiveness and excessive best. It would be used for a well-established hotel dropping prices at the last minute toincreaseoccupancyrate.Theseratewouldbefound onbooking websitesuchas booking.comandhotelscombined.Furthermore,premiumpricingapproachincludes charging excessive for products and services which are gave the impression to have superb satisfactory and further traits and capabilities. Majority rooms of Hilton belong to upper upscale and upscale pricing classes. Consequently, on the premise of category above the type of pricing strategy followed by way of Hilton inns & lodges can be targeted as premium. It also ‘sells’ a hard and fast of intangible advantages which includes sense of fulfilment, high popularity andcomfort. Place/ Distribution
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4HILTON HOTELS Place or distribution refers to the accessibility of the goods to customers. Whilst comparing to different merchandise generally resorts products would not travel to clients but the customers come to the product. Hilton makes use of both direct or indirect distribution techniques to attain out its potential clients, beneath are few techniques or channels used by resorts. Hilton international serves visitors operating greater than 745,000 rooms in greater than one hundred international locations and territories. Hilton resorts & inns brand particularly operates 206,635 rooms in eighty five nations and territories. Hilton’s distribution approach heavily is based on facts technology and internet in numerous formats (Su, Mariadoss and Reynolds 2015). The official Hilton worldwide website of the employer serves as an effective platform for provider distribution as it is supplied with a wide variety of features and skills imparting sensible assistance to customers together with booking a room, planning occasions etc. and reserving airport pick out-ups. It is also to note that the distribution of Hilton services and products is also facilitated through mobile apps made available for iPhone and Android systems. Social media is also customized and wholesalers would also be used to sell services. The principle reason behind the choice of net platform because the base of Hilton’s distribution method relates to an extensive range of conveniences related to website. In particular, the net affords Hilton’s customers with the opportunities of buying services and products in advance in a short period of time. Hilton would also use wholesalers to sell rooms as it would put holiday packages together whom then would on sell these packages to travel agents. Promotion The Hilton group is the well-known brand in the hospitality industry for a long time. The group have collaborated with many business firms, multi-national companies, institutes and various groups of their booking on priority (Zheng 2018). Also, The Hilton group has collaborated with Payment Banks and many different restaurants. Other marketing is done
5HILTON HOTELS with the content of premium magazines as well.Typical promotional strategy adopted by Hilton is incentive trips, which is aimed at potential customers offering premium packages. It will also conduct discount program assigning certain times where they will offer 50% discount. With the same, it also has a loyalty program legal responsibility of $1,461 million ofDecember31,2017,alongwith$622millionreflectedasacontemporarylegal responsibility in money owed payable, amassed expenses and other. Adjustments inside the estimates used in developing our breakage fee or other anticipated destiny application operations Conclusion Hence, from the above discussion it is to state that Hilton hotels own a very solid incorporation features starting from owning the companies that manufacture its fittings to being an investor in the online booking travel enterprises. It has endeavoured to a mixtures of business and gaming. The enterprise does this for raising more profit. However, it is to state that it is working continuously on improving its business and customer satisfaction. It is also improving the guest services in international boundaries along with the iPad technology. In order to maintain this position of it, it needs to be consistent in its business operation and work more on enhancing and improving its business strategy with the ever changing trends.
6HILTON HOTELS References: Hotel, Hilton Deansgate, M. M. R. Perkin, K. Logan, T. Marrs, J. Craven, D. T. Greenblatt, and D. Strachan. "British Society for Investigative Dermatology Annual Meeting 2017, Hilton Deansgate Hotel, Manchester, 3-5 April 2017." (2017). Su, Na, Babu John Mariadoss, and Dennis Reynolds. "Friendship on social networking sites: Improving relationships between hotel brands and consumers."International Journal of Hospitality Management51 (2015): 76-86. Zheng, Xin. "The Influence of the Difference between Chinese and Western Culture on Advertising Translation and Strategy."Theory and Practice in Language Studies8, no. 3 (2018): 331-339.