Marketing Plan For Hospitality : Hilton hotel

Marketing Plan
For Hospitality

Table of Contents
INTRODUCTION...........................................................................................................................1
1. EXECUTIVE SUMMARY.........................................................................................................1
2. SUMMARY OF THE BUSINESS HOTEL HILTION...............................................................1
3. Application of Analytical tools. ..................................................................................................2
4.Comparison and benefits between Strategic Position Statement and Business Model Canvas. ..6
5. Marketing budget ( non- calendarized)........................................................................................7
6.Discuss marketing operations including rationale for the sales and promotional activities based
on market conditions, budgets and market share. ...........................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Hospitality management involves amusement,destination marketing ships, theme parks,
lodging,convention centres and accommodation, food and beverages etc. Hospitality industry
contributes in growth of the economy by raising the revenue of the nation. In today's world
service industry is boosting at a tremendous scale across the boundaries due to which living
standards of the people are improving. This report is based on hotel Hilton. Firm was founded by
Conrad Hilton in the year 31st May 1919 in Cisco UK. This assignment covers marketing plan
document in which analytical tool has been studied so that market scenario can be examined
more clearly. Moreover, business model Canvas is compare with other model as well as their
benefits are highlighted too. Additionally marketing budget with statistical figure is formulated
so that a rough idea can be gathered about the budget is calculated. From the report it can be
concluded that analytical tools aid the business associates to deeply examine the market
conditions and push them to make modifications in their policies accordingly (Baker and
Magnini, 2016). Also, various marketing tools are used like, print media, direct mailing, social
media platforms etc. in order to advertise their product or services in the market. This tools are
used to reach out to their potential customers in order to raise sales volume.
1. EXECUTIVE SUMMARY
The term Hospitality industry can be explained as hub for human trafficking in which
activities like, lodging, theme parks, cruise line, travelling, transportation, event planning etc. are
provided in order to meet the emerging needs of the customers. A marketing plan is designed
where application of analytical tools like SWOT, PESTEL etc. are studied so that tactics are
formulated respectively. However, marketing strategy is designed which involve strategic
position statement and business Canvas model so that benefits and differences can be better
understood of each one. However, budget is made with numerical figure so that results can be
more reliable and accurate in nature.
2. SUMMARY OF THE BUSINESS HOTEL HILTION
Hilton is an American multinational hospitality company which came into existence in
the year 1919 on May 31st. Headquarters of this organization is situated in Tysons Corner,
1

Virginia, United Kingdom (About Hotel Hilton, 2018). The business of this hospitality
organisation is spread across globe in around 5,757 locations. Business associates are
successfully able to meet the emerging needs, demands and preferences of the customers in the
cut throat competitive world. The main product of the hotel is restaurants, accommodations,
banqueting, local conferencing, event planning etc. all these facilities push potential customers
to be a part of hotel Hilton for longer time duration. The staff members’ nature and behaviour,
politeness, courteous and helpful attitude attract potential clients to visit the enterprise again and
again (Bojanic and Reid, 2016). All this generous behaviour made the company to build
goodwill in the eyes of the customers in the competitive world.
3. Application of Analytical tools.
Analytical tool are those set of instruments which assist the organization to determine or
evaluate certain analysis in the competitive world. Here, are some of the analytical tools such as ,
Porter's five force model, PESTEL analysis, SWOT analysis and so on. Business associates
adopts this tools to determine the current market conditions and frame strategies accordingly.
Here are some of the analytical tools
SWOT analysis is conducted by the enterprise so that firm's own strengths and
weaknesses can be identified can certain tactics can be formulated to improve them in the market
place. Whereas, opportunities and threats are investigated so that plans can be designed
accordingly in the near future to garb the opportunity. It is used to evaluate both internal and
external environment. The SWOT analysis of the hotel Hilton is explained as follows:
Strengths:
Strong provider's relationship: Hilton Group keep their customers on priority level and
take care of their needs and demands accordingly. Administration keep record of their potential
clients taste, preferences, type of beverages, drink etc. and every time when they visit the firm
same services are served to them. It aid to build emotional bonding between firm and consumers
which is a positive sign for the company.
Brand acknowledgement: The services offered to the targeted customers are up to their
mark irrespective of taste, accommodation, food and beverages and other amenities. Due to
which goodwill is raised in the eyes of the clients which leads to build loyal and trustworthy
customers for longer time duration. Business is spread across the boundaries of the nation and is
2

famous or it's fabulous services due to which brand recognition is created (Bowie, D., Buttle and
Mariussen, 2016).
Development in Asian Continent: Hilton Group decided to spread it's business across
Asian Continent so that market share can be captured at a large scale. By doing so more
customer base of the services can be raised and profits can be maximized at a large scale.
Companies this step will aid the enterprise to stronger their business foundation by raising the
ratio of revenue generation.
Weaknesses:
Not much developed network: Hilton Group does not have enough inn networks in
Europe and North America in order to join hands with other lavish five star hotels. Due to firm is
not able to grow and flourish in the market place. It also directly or indirectly reduced the profit
maximization ratio in the intance competition.
Lack of flexibility: The business operations are rigid in nature. As hotel Hilton is
working at a scale scale it has become difficult to frequently adopt to the dynamic environment
in order to meet the emerging needs of the consumers.
Over-dependence on US market: Hilton Group is more dependent on the US market
for it's growth and success in the market. Due to which the enterprise is restricted to US market
and is not able to expand their unique services to other places.
Opportunities:
Focusing on research and development: Hilton group investing in research and
development so that more and more opportunities which are prevailing in the market can be
figured out. By doing so customers frequent demands and preferences can be examined and
strategies can be designed to fulfil respectively (De Pelsmacker and Holthof, 2018).
Procurement of neighbourhood inns: Hilton group by acquiring local hotel will
directly or indirectly help firm to eliminate local competition. Du to which more customer base
for the business can be increased.
Threats:
New entrants: Existence and new business entering the market with innovative services
are the threats for the firm. The daily increasing number of new entrants in the global market is
creating neck to neck competition in the market.
3

Exceptional rivalry: Cut throat competition is prevailing in the market so it is very
difficult to bind customers for their services. Also, it poses a big challenge to build customer
base of the services and to gain huge profits from the consumers.
PESTEL analysis:
PESTEL (Political, economical, social, technological, environmental and legal) analysis
is conducted by Hilton group so that external environment can be studied and tactics can be
made respectively so that smooth functioning of the business can be carried out. This tool is used
to study current external environmental situations so that firm can flourish accordingly. The
PESTEL analysis of Hilton is explained as :
Political factor: It includes corruption, tax policy, trade restrictions, foreign trade policy,
bureaucracy etc. all this factors affect the expansion of business to some other country. Before
entering into new place or in new market all this factor need to be examined so that business can
be operated smoothly (Fine, 2017).
Economical factor: In this case economical factor involves governmental activity, laws,
tax rates, interest rates etc. In order to grow the Hilton business smoothly economical factor
need to be evaluated deeply so that tactics can be designed accordingly to grab the market ratio
for the product or services.
Social factor: It is mandatory to follow social factor so that enterprise can be operated
for longer time duration. Here, are some of the examples of social factor like, education.
Exposure to violence, emission of harmful gases etc. Firm should follow all this so that positive
image can be build for the business and profits can be maximized (Vergun, 2015).
Technological factor: Advancement in technology has made the work easier in this
competitive world. Hilton group cope up with modern equipments so that customers dies not
switch to some other brands to fulfil their demands. The online booking facilities has helped to
raise the number of customer for the service.
Environmental factor: Some of the environmental factor are, climate, natural
vegetation, soil, pH level of water etc. The resources should be utilized by the Hilton Group at
the optimum level with less or no wastage of resources in order to raise productivity level.
Modern techniques should be used like recycling process to safe guard the environment from
deletion.
4

Legal factor: This includes consumer protection act, tax policy, industry specific law,
securities etc. To retain skilled and potential employees in the Hilton Group this laws need to be
followed so that they can be assured that workers are not exploited in the working premises. And
work effectively and efficiently to meet the desired goals on time.
Porter's five force model:
It is analysis tool which involves industries five force model in order to evaluate intensity
of competition in an industry. Porter's model is globally used to investigate competitive analysis
so that strategies can be formulated to achieve them (Gursoy, 2018). The five force model are
explained as follows:
Threat to new entrants: The level of threat is high for new business who are lacking
in funds in the market. Hilton group has adequate funds and can bear all the risks and can
flourish in the market. When many enterprise compete with the same market then profitability
ratio tends to fall which can be big threat for new entrants. The degree of power is high for new
entrants in the global market.
Bargaining power of suppliers: The power suppliers is more have few substitute of raw
material, switching cost of raw material is high, suppliers holds scare resources etc. in the
market. They exploit the consumers by charging more prices from them and gain profits at a
large scale in the competitive world. Hilton work day and night to meet the emerging needs of
the customers so that profits can be attained. The degree of power is more for suppliers.
Bargaining power of buyers: There is high degree of power for buyers as the switching
cost to other supplier is low, various substitutes available, few buyers exist etc. In this case
buyers can force the suppliers to low down the prices of the product or services in the cut throat
competitive world. Hilton group changes the policies according to the needs and demands of the
customers in the cut throat competitive world (Kotler and Baloglu, 2017).
Threat to substitutes: Here, this force is quite threatening as byers switch to some other
brand to fulfil their demands in the market. When other firm provide quality product with low
prices customers switch easily within no time. Due to which enterprise faces a huge loss in the
market. Hilton biggest competition is Hotel Marriott and firm has big threat that any changes in
the pattern of prices or demand customer will switch to it. So company come up with innovative
product on continuous basis so that they can be bind for longer time duration.
5

Rivalry among existing competitors: In the cut throat competitive world the rivalry
among competitors is intense as the exist barriers are high, products are similar in nature, several
competitors, low customer loyalty etc. It leads to decrease in profitability ratio and market share
too.
4.Comparison and benefits between Strategic Position Statement and Business
Model Canvas.
The benefits between Strategic Position Statement and Business Model Canvas are as follows:
Basis Strategic Position Statement Business Model Canvas
Definition Strategic position statement
can be stated as occupying
distinct position by it's product
or services relative to
competing brands
(Salman and Artal-Tur, 2017).
Business Canvas model is a
graphic representation of
numbers or template to
develop new business model.
Helpful Strategic positioning statement
is helpful in making image of
the firm's product in the mind
of the customers.
Canvas model is helpful in
developing a portfolio of idea
in the market.
Focus Strategic positioning statement
focus more on investigating
particular market segments.
Model Canvas focus more on
value proposition and forces
the company to think how
problems can be resolved and
customer needs can be meet.
Quicker to adopt Strategic position statement
goes with the flow of market.
Business model Canvas is
quicker or fast to use in an
organization. It also saves time
and money both.
Flexibility Strategic position statement is
flexible in nature and adopts
It is bit rigid in nature and
takes time to adopts to the new
6

with the dynamic environment. surroundings (Kuo and Tseng,
2017).
Uses Strategic positioning statement
is used to capture strong
position in the market with
unique product and services so
that other competitors does not
does not acquire it.
This model is used to develop
new product strategy in the cut
throat competitive world.
5. Marketing budget ( non- calendarized)
Cost: Cost for the production of new product is discussed below:
Particulars Amount (€)
Marketing 100000
Workforce 100000
Equipments 150000
Raw materials 150000
This is the budget which is designed so that a rough idea can be gathered that how much
funds are needed to develop anew product in the market. If there lack of monetary funds in the
market then various sources are investigated from which capital can be accumulated and
production activity can be carried out (Minazzi, 2015). The budget of the framed motivates the
Hilton group to work effectively and efficiently so that desired objectives can be achieved on
given time duration in the cut throat competitive world. The availability of the funds helps the
firm to come up with new business model in the market. As well as inspire to promote product
and services at wider scale so that strong positioning can be gained. Motivation to come up with
new new business model arises when there is sufficient fund in hand and more market ratio can
be attained when products are promoted at global level. In the given budget this are expenses
which are incured while developing a new product plan.
7

6.Discuss marketing operations including rationale for the sales and
promotional activities based on market conditions, budgets and market
share.
Promotional activities are carried out by Hilton Group so that designed product or
services can be reached out to the potential customers in the cut throat competitive world
(Market share of Hilton, 2018). There are various promotional activities like, personal selling,
publicity, public relations, print media, point of purchase display etc. through this platforms
business associates can globally promote their product and services and maximum profits can be
maximized. The promotional tools are explained as follows:
Public relations: By mentioning strong and healthy public relation it become easier for
the firm to sell out their product in the market. If the market conditions are unhealthy then also
customers will urge to purchase the product due to strong public relations. The market ratio of
Hilton group is ~9 % in the U.S and other ~3% in other regions of Middle East and Africa. The
budget of the administration is high so it's easy for the enterprise to maintain public relations
effectively and efficiently. By doing so profitably ratio increased at a rapid scale in the
competitive world (Place, A. G, 2017).
Social media platforms: In today's world everyone is on social media platform so
administration tries to advertise their product on social media platform, in order to reach out to
their targeted customers. Here Hilton group covers 58% of market share by the number of rooms
which is positive sign for the administration. Organization is covering a large area of market
ratio due to which maximum profits can be gained and growth and expansion can be done
accordingly. The hotel services are luxury so the budget is high so company can easily promote
their product on social media sites like, Instagram, Facebook, twitter etc.
Direct mail: It is another way to pull customers towards the services in the cut throat
competitive world by mailing. On special occasions like anniversary, birthdays, festival sessions,
etc. special notes are send from the firm side so that their presence can be shown. By doing
positive image is created in the eyes of the customer as well as sales volume raised at a rapid
scale in the competitive world. Hilton is financial strong and can bear the cost of promoting the
business through direct mails. It leads to increase more and more customer base for the product
due to which brand recognization raised in the market (Rosenbaum and Wong, 2015).
8

CONCLUSION
From the above it can be concluded that various analytical tools like, PESTEL, Porter's
five force model assist the business associates to better determine the market scenario so that
best results can be achieved. All this instruments helped the administration to formulate tactics
so that smooth functioning of the business can be carried out. However, benefits of each one is
studies say, strategic position statement and business Canvas model so that best one can be
implemented to improve efficiency. Numerical budgets is made to assess the sources of funds
from various sources so that in-efficiency of monetary value does not occur. Moreover,
distinguished promotional activities are studies to reach out to their potential customers.
9

REFERENCES
Books and Journals
Baker, M. A. and Magnini, V. P., 2016. The evolution of services marketing, hospitality
marketing and building the constituency model for hospitality marketing. International
Journal of Contemporary Hospitality Management. 28(8). pp.1510-1534.
Bojanic, D. C. and Reid, R. D., 2016. Hospitality marketing management. Wiley Global
Education.
Bowie, D., Buttle, F., Brookes, M. and Mariussen, A., 2016. Hospitality marketing. Routledge.
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.
Fine, S. H., 2017. Marketing the public sector: Promoting the causes of public and nonprofit
agencies. Routledge.
Gursoy, D., 2018. Future of hospitality marketing and management research. Tourism
management perspectives. 25. pp.185-188.
Kotler, P., Bowen, J. T., Makens, J. and Baloglu, S., 2017. Marketing for hospitality and tourism.
Kuo, C. M., Chen, L. C. and Tseng, C. Y., 2017. Investigating an innovative service with
hospitality robots. International Journal of Contemporary Hospitality Management.
29(5). pp.1305-1321.
Minazzi, R., 2015. Social media marketing in tourism and hospitality.
Place, A. G., 2017. Strategic Plan.
Rosenbaum, M. S. and Wong, I. A., 2015. Green marketing programs as strategic initiatives in
hospitality. Journal of Services Marketing. 29(2). pp.81-92.
Salman, D., Tawfik, Y., Samy, M. and Artal-Tur, A., 2017. A new marketing mix model to
rescue the hospitality industry: Evidence from Egypt after the Arab Spring. Future
Business Journal. 3(1). pp.47-69.
Vergun, T. V., 2015. Role of advertising as an essential element marketing communications in
hospitality industry. In РЕГИОНАЛЬНЫЕ АСПЕКТЫ ФУНКЦИОНИРОВАНИЯ
ГОСТИНИЧНОЙ ИНДУСТРИИ= REGIONAL ASPECTS OF THE HOSPITALITY
INDUSTRY (pp. 47-51).
Online
About Hotel Hilton. 2018.[Online]. Available Through:<https://www.hilton.com/en/corporate//>
Market share of Hilton. 2018.[Online]. Available
Through:<https://marketrealist.com/2014/10/hiltons-market-share-domestic-international-
market///>
10

11