Strategic Marketing assignment : Hilton Hotel and Resorts

STRATEGIC MARKETING

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................3
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1 PESTLE Framework .............................................................................................................4
TASK 2............................................................................................................................................6
P2 Different market entry modes ...............................................................................................6
TASK 3............................................................................................................................................8
P3 Market Segmentation and its types .......................................................................................8
TASK 4............................................................................................................................................9
4. Porter Generic Strategy...........................................................................................................9
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................13

EXECUTIVE SUMMARY
Strategy marketing is where organizations supply their items and administrations by
utilizing better and viable procedures. Through these systems, showcasing process turns out to be
more viable and productive in nature so odds of inferring better outcomes is likewise expanded.
Hilton Hotel and Resorts which is globally renowned hotel chain. It was founded by Conrad
Hilton in the year 1919 in Texas, United States. Presently, Hilton is operating in more than 85
countries with over 570+ hotels. However for enlarging its market share, it has decided to
expand its business operation in another developing country like Timor-Leste. For this thought,
fundamental full scale condition assessment is imperative in which PESTEL, Porter bland
techniques and so forth will be incorporated. Every one of these methodologies help in
conveying better and powerful result so successful and effective pick up could be assessed for
long haul perspective. Consequently, business need to comprehend and support such vital
promoting which determine better and compelling result for future thought. Market division
partitions the expansive scope of customer into sub-groups. Porter's Generic Strategy
characterize how business seeks after upper hand over its chose showcase scope. A organization
needs to pick one to two sorts of upper hand either by separating themselves along measurement
esteemed by buyer to charge a higher cost or by offering lower costs than contenders.

INTRODUCTION
Strategies empower and encourage an association to increase better and viable result in
nature or framework. Strategic Marketing refers to the procedure where contrast kind and
number of techniques could be support by administration in connection with promoting of
merchandise and ventures (Harding, 2017). Along these lines, administration need to consider
successful and advantageous system which additionally help them in do as such which help with
supporting to determine gainful result. Strategies Marketing can be expressed as a long term
approach for wanting to accomplish major objective of association which thus assists in
achieving practical upper hand too. These sorts of components for the most part includes key
making arrangements for beginning position of organization for detailing, assessment alongside
determination for showcase situated position which thus predominantly contributes for the
objective and goals. The given report is based on Hilton Hotel which is a globally renowned
hotel chain. The given report covers PESTLE analysis, porter five forces, market segmentation
and different modes of market entry.
TASK 1
P1 PESTLE Framework
PESTLE analysis is a strategic framework that is mainly used by company so as to
determine the impact of all external forces present in the environment that have an influence on
overall business operation and activities. Many macro-environment factors are there that either
positively or negatively effect strategic planning of a company such as new laws, trade barriers,
tax changes, demographic change etc. By knowing what is going to be happen in future and
adapting precaution accordingly will help firm in formulating better and effective business
decision.
According to the given scenario, Hilton Hotel is planning to expand their business in
another country. For this, they have decided to launch its new hotel in “Timor-Leste”. For any
company it is important to analyse all external factors and so that they can plan and design
policies and strategies accordingly. As per the report published by World Bank Group's in 2015,
it has been figure out that “Timor-Leste is viewed as one of the most stable country worldwide”.
In addition to that, almost 35.6 millions of travellers visit Timor-Leste every year (Hunt, 2015).
In 2016, Timor-Leste holds the position of 17th in the report published by World Economic

Forum's Travel and Tourism Competitiveness. But before setting up its another chain in Timor-
Leste, it is important for Hilton Hotel to do PESTLE Analysis. Political: These factors might impact upon the effectiveness and efficiency of a company
either in positive or negative manner. It define the extent ton which government can
influence overall business operation and activities. As Hilton Hotel is going to expand its
business operation in Timor-Leste so it is important for them to make themselves aware
about its political situation and various regulation. Timor-Leste stands on a better place
when it comes political stability (Lee and Carter, 2011). It is an autocratic country with
absolutely no pressure of oppositions. The country is having lowest crime rate and is a
member of EFTA as well. The impact of launching Hilton Hotel in Timor-Leste resultis
in generating higher sales in terms of attracting vast number of tourists. Threat can be in
the form of any change made by government in policies and regulation related with travel
and tourism sector. However this can be overcome if Hilton Hotel properly follow all the
rules and regulation made by government. Economical: It compromise of factors that affect spending pattern and consumer
purchasing power. Consumption of goods and services at global level is increased as
people of Timor-Leste prefer to spend money on what they want rather than what is
actually needed. This comes out as a biggest advantage for Hilton Hotel as it is premium
range hotel. If purchasing power of visitors are good they like to visit Hotel more.
Although the buying tendency of people is good in Timor-Leste but due to situation like
Inflation adversely affect their purchasing power as they shift to low rated services. In
order to deal with these such situation, Hilton Hotel needs lower down prices of their
services. Socio-Cultural:Talking about the education and qualification of Timor-Leste people,
92% of total population is literate and 83% of people have secondary education. It is the
most literate population among other developing countries. Tourists mostly appreciate the
hospitality of Timor-Leste people which serve as a key opportunity for Hilton Hotel.
Threat can be in the form of services provided by Hilton Hotel that are not suitable as per
values and culture of Timor-Leste People (Liebl, 2015). In order to overcome such threat,
Hilton Hotel can give flowers, chocolates to its customers as it is the culture of Timor-
Leste to greet people by giving some gifts.

 Technological: In modern scenario, emailing and net surfing have become the crucial
part of our daily lives. As per the statement given by Information Society Development
Committee is that “every third person in Timor-Leste is using Internet”. Technology
effect industry of hotel in many ways such as online reservation systems, Point of sale,
digital telephone facilities, Wi-Fi technology etc. Taking the advantage of this Hilton
Hotel can gain high competitive advantage over other competitors (Meidan, Moutinho
and Chan, 2014). They can innovate its services through latest technology. Threat of
technological factor can be in the form of continuously using obsolete technology i.e. not
adapting latest technology. This can overcome by keep updating current technologies as
per market trend. Legal: In regard with legal factors it include consumer law, tourism act, health and
safety, employment law etc. Such factors directly influence they operation of entire hotel,
its cost and demand of its services among customers or visitors. Opportunity can be in the
form of adhere all compliances formulated by Government of Timor-Leste. Threat can be
in the form of complex consumer laws. In order to overcome such threat, Hilton Hotel
needs to provide such services that satisfy needs and wants of customer in an effective
manner.
 Environmental: Environmental standards or norms of different markets are distinct
which can influence profitability of company. In Timor-Leste, environmental and liability
laws are different from other countries which needs to be consider by administration of
Hilton Hotel. Before entering in new market, it is required by manager to carefully
analyse environmental standards which are needed to operate or performing their
operations in those markets (Meissner, 2012). Climate change, waste management,
weather, laws regulating environmental pollution are the factors that needs to be consider
by management. Consideration of these variables administer competitive advantage to
firm in market and they enable to maintain good position in eyes of people of society.
TASK 2
P2 Different market entry modes
There are diverse sorts of market modes that are accessible in the market through which
organization can grow their business activity in another market of some other nation. Each

market passage mode is having unmistakable level of hazard related with it which should be
viably considered by each entrepreneur . Normally market entry mode is classified into equity
and non-equity. Equity mode envelops joint venture and wholly owned subsidiaries whereas
non-equity market mode covers contractual and export agreements (O'Malley, Story and
O'Sullivan, 2011). Following are some common mode of market entry that can be taken into
account by Hilton Hotel:
Exporting: It alludes to the way toward offering product or services delivered in one nation to
other nation. It further classified into two parts i.e. direct or indirect export.
 Direct Export: It is the most well-known method for exporting goods and services made
by home nation in any other country. This mode of market entry mostly stress on
expanding the economies of size of home nation. There is less association of channel of
distribution in this form of exporting.
 Indirect Export: Under this market entry mode, process of exporting is essentially done
through locally based intermediaries. There is no control of exporter over their items in
the remote market.
Strength Weakness
 Increase in sales
 Better economies of scale
 Financial Risk
 Extra Cost
Joint Venture: It is an understanding that happens between at least two organizations or
individuals to work on the whole for a specific reason or task. Every one of the individuals under
Joint Venture similarly shares all benefit and misfortune. Five basic goals of this market passage
mode is hazard/compensate sharing, innovation sharing,conforming, market entry to the
administration controls and joint item improvement.
Strength Weakness
 Access to new distribution channel and
market
 Increased Capacity
 Difference in management style and
culture results in poor integration
 Too Slow Process

Strategic Alliance: It is a type of co-operative understandings that happens in various
organizations, for example shared research, formal joint venture or minority equity participation
This method of section is winding up progressively prominent on account of its particular
qualities:
 These are for the most part happened between organizations in industrialized countries
 They for the most part underline on making new item as opposed to appropriating the old
one.
Strength Weakness
 Facilitate entry into market
 Share fixed costs
 Lack of diversification
 Much dependent upon another firm
Green-fielding: It is a kind of foreign direct investment in which a parent organization builds
new operation in any other foreign country (Preston, 2012). Under this, parent company
establish new firm by executing all business activities starting from the scratch. These kind of
projects are normally referred as foreign direct investment that render high degree of control by
parent company as comparison to other methods falls under foreign direct investment.
Strength Weakness
 Optimum technology possible
 High level of control over other venture
Investment cost is high
Market entry is slow
Franchising: Under this market passage mode, proprietors pay charges and eminences to parent
organization and enable them to offer item or administrations for their benefit. They are
additionally obligated to utilize the framework and business arrangement of franchisee.
Strength Weakness
 Capital Expansion is easy
 Minimized Growth Risk
 Innvovation Challenges
 Lackof control

Licensing: It implies enabling outside firms to create owner's settled time- frame in a specific
market. Under this market entry mode, licensor is required to make assets accessible in particular
host nation. The rights incorporate trademarks, patent, administrative abilities, innovation and
others that can without much of a stretch makes it workable for the licensee to offer and producer
products in the host nation (Rundh, 2011).
Strength Weakness
 Low financial risk
 It provide deep knowlefge of local
market
 Market opportunities are limited
 Competitive Issues
Merger: The aggregation of one or more corporations with an aim of achieving higher sales and
productivity is known as merger. Basically it a kind of agreement that join already exiting two
companies and make it into one big company. These are mainly used by company in order to
expand its business operation in other developing country with an objective of capturing large
market share or execute its business practices worldwide.
Strength Weakness
 Economies of scale
 Improve customer base
 Governance Issue
 Lack of human approach
Acquisition: Business acquisition can be define as a procedure of acquiring a new business to
build on weakness and strength of the acquiring company. It refers to a situation, where one
company buys almost half or more than 50% of share of the other company so as to exercise full
control over other company. It is usually takes place among organizations when one of the
company is not doing well and with the assistance of other firm they can re-design its strategies
and policies and once again enter into the market competition.
Strength Weakness
 Reduce existing competition  Dysynergy Effect

 Entry in Global Markets
 Failure to integrate well
The most suitable market entry mode for Hilton Hotel can be Franchising as it enable
them to expand its market share in other developing country and take the advantage of high
competitive edge in the market. Moreover with market entry mode, Hilton Hotel can easily make
their market and customer base more stronger (Sunkada,2014).
TASK 3
P3 Market Segmentation and its types
Market segmentation is characterize as process where an association used to separate
their number of potential clients into different gatherings, segments and portions with their vary
attributes. In this way, administration used to separate them into comparable gatherings,
attributes and things so compelling and better comprehension could be forced in better edge.
Subsequently, an affiliation need to partition their gatherings into 4 noteworthy areas which are
characterize as take after for Hilton Hotel whom will going to establish their hotel chain in
Timor-Leste so they could pick up and assemble viable thought from them:
Demographic division: It is a sort of market division where age, gathering, race and so
on. It empowers in focus available in more better and suitable way with the goal that successful
comprehension could be keep up (Tomczak, Reinecke and Kuss, 2018). In spite of the fact that,
Hilton Hotel need to partition their clients based on age and gathering which empower them in
developing their services in more precisely. Here, they could plan their services by accepting and
characterize showcase in better and implied way.
Behavioural division: It is totally accentuation on purchasing conduct of a person which
think about the premise of their unwaveringness, recurrence, benefits and so forth. Before
overseeing exercises into new market world, administration need to fragment their clients based
on conduct. Hilton Hotel need to comprehend the conduct of their clients legitimately before
beginning tasks into Timor-Leste with the goal that helpful result could be survey and
characterize in better edge .
Psycho graphic division: It depends on the qualities, state of mind, way of life of a
shopper where their attitude need to survey legitimately so proper products used to convey to
them. Like Hilton Hotel beforehand bargain in various countries where dedicated portion
individual have mentality towards such viewpoint yet Timor-Leste individual may have contrast

outlook and state of mind which need to comprehend by an association viable with the goal that
they used to improve their deals and working choices for overseeing diversification.
Geographic division: This sort of division depend on nations, limits, populace thickness
and so forth. Business used to separate their items and administrations based on rustic, urban
zones which improve and empower in better coordination so powerful and useful pick up could
be support which additionally reflect in better and steady productivity.
On the basis of Psycho graphic division, Hilton Hotel is going to do its market
segmentation. Under this segment, market is categorize on the basis of lifestyle, attitde which
paly key role in context of selecting a hotel.
TASK 4
4. Porter Generic Strategy
Strategy is characterize as main process for an association which need to comprehend by
directors of an organization. It is extremely basic for administrators to decide the most
appropriate strategy with the goal that they could keep up and deal with their working and
feasibility in a compelling edge (Wrenn and Mansfield, 2014). There are different methodologies
and structure could be pick by administration when they used to go into a characterize advertise
world with the goal that adequacy and effectiveness could be keep up and oversee. For this
perspective, the real strategy which could be pick by business administrators are Porter Generic
strategy framework. According to this model, characterize the capacity of an association under
which they could increase competitive position at characterize market world. In this way, such
aspects could be additionally assessed into three noteworthy areas which streamline according to
the beneath consideration:
Cost leadership strategy:
One of a noteworthy thing which used to decide on every single business area is
competitive edge which empower them to connote them vary from others. It is extremely basic to
decide the fundamental viewpoints and satisfy them in a superior way with the goal that a
business could be pick up that. The principal thing which reflected by Porter generic scheme is
cost leadership where business need to create such services and products which are of low cost
and have a top notch standard too. Chiefs required to utilize such methods which empower them
in diminishing the cost of creation so merchandise could be convey at direct and powerful rate.

Hilton Hotel is going to introduce their new hotel chain in Timor-Leste and it requires proper
understanding of cost concept (Wrenn and Mansfield, 2014). Subsequently, cost administration
system will empower administration of Hilton Hotel to end up cost leader in market world
which encourage them in decreasing their production value and offer low value services as
compared to their competitors. This will empower them in gaining competitive advantage with
the goal of attaining large market share.
Strength Weakness
 Offers products at lower price than
competitors
 Increase baragaining pwer with
suppliers
 Demand may get affected by cost
reduction
 Rivals may lower their cost structure
Differentiation strategy:
According to this methodology, administration used to create such sort of items which are
contrast and shift from their rivals which empower in pulling in them better. For gaining
progress & competitive edge by differentiation methodology, business required to concentrate
more on research & development plans under which better and viable advancement encourage
them to convey elevated expectation benefit items. Hilton Hotel could run with such perspective
in clear way where they have to centre around their services which could incorporate about
some special features so better separation from contenders should be possible in a connoted
outline (Tomczak, Reinecke and Kuss, 2018).
Strength Weakness
 Customer develop brand loyalty for
respective products
 High proces can be charged
 Difficulty in maintaining premium
prices
 Difficult in maintaining long term
relatiosnhip with customers
Focus strategy:

Under this part of Porter, business need to unmistakably centre around new advancement
and also on the idea of cost minimisation. This concentration technique totally centre and
empower them to focus on their taking a shot at specific perspective with the goal that better and
characterize result could be pick up which additionally help with giving better and aggressive
edge.
Like they have to consider focus tactic where targets could be concentrate legitimately through
better development and lessening expense of assembling of items and administrations too. This
will cut down positive result for an affiliation which additionally help with giving appropriate
result at Timor-Leste (Wrenn and Mansfield, 2014). In spite of the fact that, they need to
provide high quality services in better edge for picking up and influenced them to contrast from
others. Consequently, administration of Hilton Hotel need to centre around this segment for more
powerful reflection with the goal that useful pick up could be reflected.
Strength Weakness
 Threat of new entrant is limited
 High power over buyers as they are not
allowede to offer same product
 Rapid change in technology
 Limited demand available
As per the above mentioned strategies, management team of hotel needs to determine all
such factors that helps them in gaining high competitive advantage in market. Application of
porters generic strategies helps them in expanding their business in new country in an effective
and efficient manner. It assists them in getting proper understanding of market and helps them
in formulating effective plans and policies regarding maintaining their strong position in market
and acquiring large market share. According to the every one of three areas, administration of
Hilton Hotel need to adapt cost leadership strategy which gives them high competitive advanatge
over other rivals.
CONCLUSION
From the above mentioned report, it has been concluded that procedures dependably
bolster a relationship to develop and grow themselves in any characterize advertise world. It is
extremely basic for a business to make their systems and structure in such way which reflect

them and characterize better result in not so distant future course. Albeit, certain viewpoints used
to incorporate into this situation which related with procedures promoting. Promoting empower
in return of products and enterprises. Therefore, at whatever point extension used to happen,
right off the bat, PESTEL need to direct which accentuation the business condition of such
regarded nation where showcase used to get extend. Along these lines, better and viable market
section modes will likewise going to be address with the goal that gainful property could be
survey and characterize in better way. Administration additionally need to fragment their clients
based on statistic so target would not get reflected. In addition, for increasing aggressive edge,
better procedures should be use for characterize powerful and useful result.

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