Marketing Plan for Hilton Hotel: Targeting New Tourism and Maximizing Customer Engagement
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This marketing plan covers the vision, mission, marketing objectives, and marketing budget of Hilton Hotel UK. It also includes STP analysis and marketing mix to target new tourism and maximize customer engagement.
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Marketing Plan
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INTRODUCTION A marketing plan is a detailed document that details the overall marketing initiative of an organisation(Benyebdri, Bernossi and Karaivanova, 2018). It is a roadmap that details how an organisation can execute its marketing plan and use a variety of tools to achieve the business objectives, including revenue targets or the acquisition of customers. This report based on the Hilton Hotel UK where they prepare new marketing plan to attract new tourism with their hospitality services and amenities to maximise their customer engagement and sales revenue. This marketing plan covers several aspects which helps the organizations to achieve their marketing objective or target new tourism. It includes the vision, mission, marketing objectives, and marketing budget. In addition, it also covers the STP analysis and marketing mix to target right people and formulate their strategy for them to successfully accomplish their marketing plan. MAIN BODY Marketing Plan Company Overview Hilton Hotels & Resorts is the registered trademark of Hilton and it is oneof the biggest hotel brands chain in the world.The brand is aimed at both business and leisure travellers with located in major city centres, near airports, conference centres and popular holiday attractions around the world. Hilton Hotels & Resorts engages in the Hilton Honours Guest rewards program. Members who book online via Hilton-owned networks enjoy special discounts and services such as free Wi-Fi, electronic check-in, automatic door access and the option to use a phone device to select individual rooms. Hilton Hotel periodically introduces some new features intheirservicesandamenitieswithspecialdiscountsandofferstoincreasecustomer engagement. Mission Our mission is to become the first choice of visitors, members of the team and property owners. In addition, Hilton hotel ensure that their every customer should be satisfied with the hotel services and hotel staff also ensure that, they are able to meet customer’s needs and 2
expectations(Chernev, 2020). It is very essential for the organization to make their guest satisfy because it further helps in increasing customer engagement and overall sales. Vision Our vision is always to fill the world with the warmth and light with theirhospitality services. Hotel wants to make their brand name more popular and try to make it market leader in the hospitality sector. Hotel management ensure that their existing customers always prefer their hotel whenever they plan for something to go out and also recommend others through word of mouth marketing. Products & services Hilton Hotel provides a variety of goods or services and high end luxury restaurant chains with a wide variety of different brands. Hilton Hotel provides a variety of drinks and snacks that is an integral part of every stay. Customers can lounge and have evening meal inside one of the Hilton Hotel's dining and have a range of lunch options to please them. The hotel has a serviced accommodation and facilitates all sorts of people. They deliver a variety of facilities to suit the needs of clients, such as a gym and a soothing spa. The Hilton Hotel alsooffers their luxury services toleisure travellers and corporate clients with goodsand services. Theyboost revenue by providing additionalamenitiessuch as guesthouse, family entertainment packages and meeting spaces. The Hilton also has a Guest Loyalty programme in which regular travellers can receive airline miles and rewards by residing with different Hilton Hotel brands. TheHotel also has loyalty abilities, which ensures that if customers stay in their hotelfor a long period of time, they will get one night free of cost and some special discount as well. Marketing Objective Marketing objectives are setof a company's goals which they wanted to fulfil as soonas it will be possible(De Pelsmacker, Van Tilburgand Holthof, 2018). They clarify the intentions tothe management or marketingteam, offer clear guidance toteam members to pursue, and provide managers with information for analysis and support. Marketing objectives are a vital component of a marketing campaign. With the help of marketing objectives, organization is able to formulate their further strategies to achieve their business goals. There are some marketing objectives of Hilton Hotels which mentioned in their marketing plan and these are as follow: 3
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Target new tourism or customers Increase customer engagement as well as overall sales Maximise customer satisfaction Reduces the consumer complains Increase overall profit by 10% Increase the numbers of corporate clients Marketing Budget The marketing budget sets out almost all the funds that a company intends to invest on advertising important activities over a quarterlyor a yearly(Gupta, 2019). Marketing budgets mayincludeexpendituressuchaspaidads,endorsedinternetcontent,newmarketing communication staff, a certified blog domain, and digital marketing software. These include such things as marketing team, customer engagement, investment opportunities paid to organisations or other outside distributors, marketing expenses, media spending, etc. Below mention marketing budget is prepared for Hilton Hotel to promote their products & services along with other facilities which helps in attracting more tourists. Quarterly spending on several marketing activities which is required spending to increase customer engagement and their sales by using effective marketing and promotional strategy. Marketing budget Particulars1st quarter2nd quarter3rd quarter4th quarterAnnually Initial spending£ 8000£ 8500£ 12000£ 14500£ 43000 Additional Fund£11000£ 14000£ 25500£ 32000£ 82500 Total£19000£22500£37500£46500£ 125500 Marketing outlay Promotion£ 6500£ 3200£ 4300£ 3300£ 17300 Campaign£ 2200£ 2100£ 3300£ 2200£ 9800 4
Digital marketing£ 4200£ 2500£ 6000£ 3000£ 15700 Total£12900£7800£13600£8500£ 42800 STP Analysis The marketing toolof STP stands for segmentation, targeting and positioning. It is a three- step analysis procedure that enables a concrete and enforceable marketing plan to be created (Koney, 2019). The key concept behind this STPprocess is to segment the audiences, target and differentiated group as per their tastes and behaviours, and change the position of the marketing strategy to meet their interests and desires. The explanation why the STP analysisis so successful would be that it starts to break down larger markets into smaller bits, inorder to make it easier to create unique methods for acquiring and retaining potential consumers rather than trying to use a standard marketing strategy that may not be as compelling or as successful. In relation to marketing plan of Hilton Hotel, STP analysis is essential to increase customer engagement and target new tourist to maximise overall sales. This analysis is as follow: Segmentation:Thesegmentationstageisallaboutdefininguniqueandcommon characteristics amongst people in the hospitalitymarket, itallowing hotels to create far more appropriate and interactive marketing strategies. If organizationcan use customer insights to recognise a particular interest or need from a group of individuals on the market, they will be able to target the messaging and implement it in a manner which has a far stronger effect than wider marketing strategies. In reality, in competitive and mature markets, they may also discover great possibilities, showcasing the unique advantages of a segment not given access to by anybody else. There are various types of segmentation such as demographic which includes age, gender, marital status etc. Geographic segment include the different location, Psychographic segment covers the personal attributes of individual, their lifestyle or behaviours(Maravilhas, 2019). In context of Hilton Hotel, organization select the geographic segment where they target the place nearby airport, tourist attraction etc. In addition, they also target demographic segment to offer their services and amenities. Hilton hotelsfound the location in Londonsuch as Aldwych, Canary Wharf, Bankside, Tower Bridge and Trafalgar Square etc. 5
Targeting: The next processis to look at the selectedsegments that providethe best opportunitiesfor theHilton Hotel.Firstly organizationneedsto measurethesize of the selectedsegment, which will tell guests if it's worth considering. After all, the promotional incentive must be big enough to justify campaigning. Otherwise, the effort just probably isn't worth it. The very next step is evaluating if there are important markers that distinguish the segments, which could become the foundation of a STP marketing strategy. Be sure to evaluate the opportunity from a financial point of view,the profits they should expect could outweigh the extra marketing expenditure that will be needed to produce. Hilton Hotel primarily focuses on establishing hotels in places that are popular with both the target segment. The brand is targeted at consumers who are middle tosenior professional between the ages of 26 to60 years of age with high levels of disposable income from the higher social classes(McGowan and Branche, 2020). Furthermore, the brand often targets individual customerswho enjoy a luxurious lifestyle, and thus the business charges high rates for its services and goods which are considered to be that of the appropriate quality. The essence of the psychographic segmentation used by Hilton includes targeting competitive individuals who want to demonstrate their expected high status and accomplishment by residing in five star hotel bedrooms at premium rates. Positioning: Final step of STP analysis ispositioning which helps the organisation to identify the opportunities that furtherallow Hotels torespond to an unfulfilled need or desire in themarket that certain product can satisfy.Even though tangible data on targetedsegments of potential audience would want, they can use these insights to position ofproduct and create a specific sales proposal, delivering the right information at the right moment in terms of marketing and promotions. Using consumer segmentation models, they can fully overhaul the product positioning and concentrate the campaign on its most important concern facing the audience(Papazapraidis, 2020). With such a segmented and clearly targeted audience, the product placement would have a much greater effect, allowing advertising message to reach out in a competitive marketplace. Hilton Hotel adopts several positing strategy such as digital or social media marketing because it is the best platform to maximise their customer engagement and sales as well. 6
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Marketing Mix The marketing mix is often used to describe a variety of marketing variables being used by sales department to attract particular guests or attract consumer segments. The Marketing Mix is generally formed by the Sales and Marketing Director / Sales Manager. The hotel must have the correct facilities / services, identify good marketing strategy (online and offline) and eventually set the right price for their services which can fulfil the customer's expectation. In the marketing plan of Hilton Hotel, this strategy plays essential role to target new tourist and fulfil their marketing objectives. Further, marketing mix strategy defined below: Products & services: Hilton Hotel has a chain of luxurious hotel rooms, restaurants and shops. Not just a traveller's delight and it also acts as a one-stop solution for corporate meetings and activities. They're looking for both tourists and company visitors in the property. Hilton hotels and resorts across the world are the ideal stop for business meetings and activities(Perreault, 2018). The bedrooms are built with advanced diligence and innovative capability. Exotic foods and beverages at the Menus Hotel are among the best hospitality delights for its guests. Hilton also offers its client exclusive loyalty discounts and other services such as free Wi-Fi, room choice, etc. In addition, Hilton Hotel also introduce special offer for their existing and new clients who stays in their premises more than 1 week. Hotel provide them 1 night free stay with free of cost luxury dinner right facility. Price: As the Hiltonhotel continues to retain itsreputationor brand image with first notch and high-quality facilities, it pursues withpremium pricing strategies for its luxury services. The team of professionals and analysts agrees on pricing through a well- researched methodology. Hilton only offers four stars and five-star customer experience not only with a feeling of stay and dining, but also with a feeling of prestige and luxury. Place: Hilton Hotels and Resorts have a luxurious history offering luxurious facilities around the globe in 84 countries. The global reach of the hotels is both a treat for the tourist and a corporate destination. In addition, the facility in the key holiday resorts of HiltonHotelandResortsissituatedinthevicinityofairports,etc.,makingit convenientlyavailabletobusinessandleisureguest’speople.Giventheforeign indulgence of the Hilton Hotel and the restaurants, showers meet the needs of the people. Hilton Hotels and Resorts pick their surroundings in a well-chosen way that provides to 7
the customer service. Seaside-sides, quiet, sense of calm all around make it an attractive landing option for customers around. Promotion: Hilton is a well-known brand in the hospitality business that tends to select effective marketing strategyto help them stand out from the competition. Hilton provides the citizens with an exclusive access(Pratiwi and et.al.,2019). Excellently-dedicated team and staff work on marketing campaigns to offer fresh and exclusive marketing indulgence. The best that is pursued in Hilton's marketing campaigns is to keep track of the effects of every campaign that has generated positive input on Hilton's marketing campaigns. The head of sales & Marketing could figure out some of the most productive advertising and communication mix forhotel. Promotion is the method that helpshotels toconnect with theirtarget customers. There are some popular promotional strategies which adopted by the sales & marketing team of Hilton hotels such as Television commercials,hotelwebsite,brochures,socialmediaplatformsuchasFacebook, Google+, Twitter, banners, etc. Above discussed marketing mix strategy helps the Hilton Hotel to target new tourist as well as increase customer engagement because it is very essential to maximise their sales. In order to increase their sales, organization to fulfil customer’s expectations and provide them best experience during their time which they spend here. Hotel management can impress their customers or guest through offering exotic services where they already specialised. Hilton Hotel introduce new marketing plan to attract more or new tourist and this will be possible with the help of effective marketing strategy. CONCLUSION From the above discussion it has been analysed that marketing plan is very essential for the organization when they are going to introduce something new or make any strategy to target new customers as well as done something to retain their existing clients as well. Marketing plan include the several aspect such as marketing budget, marketing mix, STP analysis etc. which helps in making tourist aware about the offer products & services and also help the organization to understand entire procedure of implementation and further guide their team members to follow every direction effectively to achieve their market objectives. 8
REFERENCES Books & Journals Benyebdri, H., Bernossi, A. and Karaivanova, S., 2018.Online Marketing for Hotels: The Hotel's guide to generating more direct bookings. Independently published. Chernev, A., 2020.The marketing plan handbook. Cerebellum Press. De Pelsmacker, P., Van Tilburg, S. and Holthof, C., 2018. Digital marketing strategies, online reviews and hotel performance.International Journal of Hospitality Management,72, pp.47-55. Gupta, G., 2019. Inclusive use of digital marketing in tourism industry. Ininformation systems design and intelligent applications(pp. 411-419). Springer, Singapore. Koney, J. M. N., 2019. Marketing plan for Suu’s Rahma Guest House. Maravilhas, S., 2019. Marketing and Marketing Plan for Information Services. InAdvanced Methodologies and Technologies in Digital Marketing and Entrepreneurship(pp. 620- 632). IGI Global. McGowan, M. M. and Branche, D. D., 2020. Developing a Social Marketing Plan to Address WickedProblems:AToolforTransformingLearning.TheJournalofHealth Administration Education,36(4), p.373. Papazapraidis, F., 2020. Marketing Plan for Kleemann Lifts UK. Perreault, W. D., 2018.Essentials of marketing. New York: Mc Graw Hill. Pratiwi, R. and et.al., 2019. Marketing Plan for SILC Lasic Center.Journal of Multidisciplinary Academic,3(5), pp.130-134. 9