Marketing Strategies of Hilton Hotel in UK
Added on 2022-04-15
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MARKETING STRATEGIES: A CASE OF HILTON HOTEL IN UK
By
Course
Instructor
Institution
Date of Submission
By
Course
Instructor
Institution
Date of Submission
2
Executive Summary
The growing competition in the global hotel industry has resulted to players developing
marketing strategies that not only ensure they are competitive, but also sustainable. Hilton Hotel
is a global leader in the industry with a global presence and unique products and services that are
of high quality targeting the high upscale market segment. This paper will analyse the current
marketing strategies of Hilton from an international perspective and its specific operations in the
UK market.
The data used was gathered from secondary sources ranging from company publications, books,
journal articles and other online reports that focus on the hotel. It is evident that the current
marketing strategy adopted by Hilton Hotel is effective in guaranteeing its sustained
competitiveness in the upscale market. It was also evident that the middle class segment of the
market has increased globally accounting for most tourists. The current marketing strategies are
ineffective in ensuring the hotel taps into this segment of the market.
The paper went further and suggested various measures that will ensure the hotel taps into the
growing potential of the middle class market segment such as service diversification and
introduction of services that target the middle class income earner. The hotel can expand its
profits if it implements the measures that will make it a significant player in the middle class
segment of the market.
Executive Summary
The growing competition in the global hotel industry has resulted to players developing
marketing strategies that not only ensure they are competitive, but also sustainable. Hilton Hotel
is a global leader in the industry with a global presence and unique products and services that are
of high quality targeting the high upscale market segment. This paper will analyse the current
marketing strategies of Hilton from an international perspective and its specific operations in the
UK market.
The data used was gathered from secondary sources ranging from company publications, books,
journal articles and other online reports that focus on the hotel. It is evident that the current
marketing strategy adopted by Hilton Hotel is effective in guaranteeing its sustained
competitiveness in the upscale market. It was also evident that the middle class segment of the
market has increased globally accounting for most tourists. The current marketing strategies are
ineffective in ensuring the hotel taps into this segment of the market.
The paper went further and suggested various measures that will ensure the hotel taps into the
growing potential of the middle class market segment such as service diversification and
introduction of services that target the middle class income earner. The hotel can expand its
profits if it implements the measures that will make it a significant player in the middle class
segment of the market.
3
Contents
Executive Summary
Part A
Introduction
Company Background
Methodology
Situational Analysis
Product
Brand name
Functionality
Price
Price strategies
Place
Promotion
Promotional strategies
Market segmentation
Part B
Michael Porter Competitive Forces Model Analysis
Threat of entry of new competitors
Competitive rivalry intensity
Contents
Executive Summary
Part A
Introduction
Company Background
Methodology
Situational Analysis
Product
Brand name
Functionality
Price
Price strategies
Place
Promotion
Promotional strategies
Market segmentation
Part B
Michael Porter Competitive Forces Model Analysis
Threat of entry of new competitors
Competitive rivalry intensity
4
Threat of substitute products
Bargaining power of buyers
The bargaining powers of the suppliers
PEST Analysis
Political factors
Economic factors
Social-cultural
Technology
SWOT analysis of Hilton Hotel Operations in UK
Recommended objectives and market strategies
1. Introduce middle class services in the hotel
2. Embrace innovation in the approach to dynamism
3. Diversification
Conclusion
References
Threat of substitute products
Bargaining power of buyers
The bargaining powers of the suppliers
PEST Analysis
Political factors
Economic factors
Social-cultural
Technology
SWOT analysis of Hilton Hotel Operations in UK
Recommended objectives and market strategies
1. Introduce middle class services in the hotel
2. Embrace innovation in the approach to dynamism
3. Diversification
Conclusion
References
5
Part A
Introduction
It is challenging as well as fascinating to market in the service sector of the economy. The
approach of marketing a product and a service in a way that it makes customers be interested in
the product and select it over the other in the global marketing is very complex and challenging.
Thus, global companies develop comprehensive and yet dynamic marketing strategies that
ensure their products and services are highly regarded by customers resulting to their
competitiveness (Enz, 2009). Therefore, marketing goes beyond the normal processes, such as
advertising and other promotional packages.
The America Marketing Association (2008) defines marketing as functions and processes within
an organisation for generating, communicating, and conveying value to customers. It also
involves managing the relationship between the organisation and customers in such a way that it
benefits the organisation (Tan et al., 2009). Thus, marketing is a customer oriented approach to
doing business. In consequence, the main objective of marketing is to generate and retain
customers through satisfying their needs. This paper intends to analyse this concept in relation to
Hilton Hotels and Resorts, a global market leader in luxury hotels.
Part A
Introduction
It is challenging as well as fascinating to market in the service sector of the economy. The
approach of marketing a product and a service in a way that it makes customers be interested in
the product and select it over the other in the global marketing is very complex and challenging.
Thus, global companies develop comprehensive and yet dynamic marketing strategies that
ensure their products and services are highly regarded by customers resulting to their
competitiveness (Enz, 2009). Therefore, marketing goes beyond the normal processes, such as
advertising and other promotional packages.
The America Marketing Association (2008) defines marketing as functions and processes within
an organisation for generating, communicating, and conveying value to customers. It also
involves managing the relationship between the organisation and customers in such a way that it
benefits the organisation (Tan et al., 2009). Thus, marketing is a customer oriented approach to
doing business. In consequence, the main objective of marketing is to generate and retain
customers through satisfying their needs. This paper intends to analyse this concept in relation to
Hilton Hotels and Resorts, a global market leader in luxury hotels.
6
Company Background
Hilton Hotel was founded in 1919 by Conrad Hilton (Hilton Worldwide, 2014). According to the
historical information as stated by Hilton Worldwide (2014), the company has remained a market
leader since its inception in terms of innovativeness in its services, products and amenities. In
1927, Hilton opened its first hotel that had air-conditioning and cold running water in public
rooms. In the year 1947, the Roosevelt Hilton in New York City installed TVs in guest rooms,
becoming the first hotel with such a feature. In 1948, Hilton founded the basis of modern day
hotel reservation system by developing a multi-hotel reservation system. In the year 1950, Hilton
advanced its services with specific reference to female customers by introducing a booklet that
had telephone numbers and important names and a sewing kit (Applegate et al., 2008). The hotel
went further and introduced a brand-wide direct call telephone services. The innovativeness of
the company expanded further by introducing the concept of airport hotels through establishing
San Francisco Airport Hilton in 1963 (Hilton Worldwide, 2014). The company enhanced its
services to its customers through computerising its reservation services as early as 1973. This
was further boosted by the introduction of customer loyalty program in 1987 (Atkinson &
Brown, 2001). In terms of environmental sensitivity, the hotel is globally known for its
leadership in promoting environmental sustainability through advocating the use of green
products and energy in most of its subsidiaries (Enz, 2009).
Currently, Hilton is a global leader in the hotel industry dominating markets such as India, Japan,
France, China, United States, United Kingdom, Russia, Italy, Germany, and Brazil (Hilton
Company Background
Hilton Hotel was founded in 1919 by Conrad Hilton (Hilton Worldwide, 2014). According to the
historical information as stated by Hilton Worldwide (2014), the company has remained a market
leader since its inception in terms of innovativeness in its services, products and amenities. In
1927, Hilton opened its first hotel that had air-conditioning and cold running water in public
rooms. In the year 1947, the Roosevelt Hilton in New York City installed TVs in guest rooms,
becoming the first hotel with such a feature. In 1948, Hilton founded the basis of modern day
hotel reservation system by developing a multi-hotel reservation system. In the year 1950, Hilton
advanced its services with specific reference to female customers by introducing a booklet that
had telephone numbers and important names and a sewing kit (Applegate et al., 2008). The hotel
went further and introduced a brand-wide direct call telephone services. The innovativeness of
the company expanded further by introducing the concept of airport hotels through establishing
San Francisco Airport Hilton in 1963 (Hilton Worldwide, 2014). The company enhanced its
services to its customers through computerising its reservation services as early as 1973. This
was further boosted by the introduction of customer loyalty program in 1987 (Atkinson &
Brown, 2001). In terms of environmental sensitivity, the hotel is globally known for its
leadership in promoting environmental sustainability through advocating the use of green
products and energy in most of its subsidiaries (Enz, 2009).
Currently, Hilton is a global leader in the hotel industry dominating markets such as India, Japan,
France, China, United States, United Kingdom, Russia, Italy, Germany, and Brazil (Hilton
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